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Home Agriculture and Economic Development Problems of Green Revolution (GR) 

 

Problems/Demerits of Green Revolution (GR):

 

Apparently this scheme of GR looks very attractive that it will lead to bring a revolution in agri. But Prof. Hala Mynit has presented a lot of problems regarding GR. They are as:

 

(1) Technical Problems:

 

(i) Due to GR where the need for better seeds, fertilizers and pesticides rises, there also emerge the problems regarding demand and supply of water. As in Thailand, Philippine and Malaysia the rice crop is sown in the rainy season. Therefore, there exist the chances that the fertilizers will flow out because of floods.

 

(ii) No doubt the HYV seeds will make it possible to get more crops in a year. But this could be possible only if the cropping pattern is changed, and the techniques of harvesting is also altered. As the dryers will have to be used to dry the rices, as well as the stores will have to be set-up.

 

(iii) As the GR came into being due to 'Miracle Seeds'. But in order to improve the level of seeds the govts. and researchers will have to remain intact with the advance research in this field. Moreover, a compatibility will have to be brought between international agri. technology and domestic conditions. The changes will have to be brought in the systems of crops.

 

(2) Organizational Problems:

 

(i) The GR is also attached with organizational problems. It is also necessary for GR that such an organization be setup where the following functions could be settled efficiently, like (a) distribution of superior seeds and fertilizers, and (b) to purchase the produced output and to store it. In this respect, the countries like Pakistan have setup different departments and corporations which sell seeds and fertilizers. Moreover, they also purchase wheat and rice etc. But the performance of these organizations has been very much poor because of official formalities, corruption and red-tapism.

 

(ii) Before GR the farmers used to practice subsistence farming and people used to produce equal to their needs. But after GR when output increases it will have to be sold in the markets. For this purpose, the means of transportation and the roads from villages to the markets will have to be constructed. If such is not done there will be an abundance of grains etc. in villages leading to fall in their prices.

 

(iii) Because of GR the self-sufficiency in villages will come to an end. The agri. sector will be commercialized where the use of money will increase. Consequently, the supply of money will have to be increased. The needs for loans will rise. But in case of UDCs the commercial banks, cooperative banks and specialized institutions advance loans to peasants in a smaller amount. Therefore, the agri. sector will have to depend upon non-institutional sources like money lenders and commission agents. In this way, the financial dualism will get stronger. The lenders from non-organized money markets will exploit the peasants. Therefore, the need is to open commercial and cooperative banks in the villages. Such corporations be set-up in the villages which could provide agri. inputs to the poor peasants at concessionary rates, at installments and at subsidized rates etc.

 

(iv) The GR is also attached with better irrigational facilities. Therefore, there is need to construct dams, control floods and undue rains and check water logging and salinity etc. For such all, heavy funds are required. But as far as UDCs are concerned they have the shortage of funds. To tax agri. sector in these countries is like a forbidden fruit. Therefore, from where the funds will come to Improve irrigational facilities.

 

(3) Central Economic Issues:

 

(i) The policy of support prices, restrictions on imports, and supply of agri. inputs at reduced prices have benefited the poor farmers leading to increase the agri. outputs. But there rises the question whether the incentives to the farmers have led to optimal allocation of resources between agri. and non agri. sectors.

 

(ii) Because of GR govt. will have to make investment in sufficient amount, particularly to increase the transport, storage and irrigational facilities. Then there rises the issue that how public investment will be distributed between agri. and non-agri. sectors.

 

(iii) When new technology is adopted because of GR there exit the chances of unemployment of labor. Therefore, the need is to absorb such people in poultry farming, forestry and fish farming. Therefore, if so happens the production of livestock's, vegetables and forests will increase, in addition to agri. production.

 

(4) Side Effects of Green Revolution:

 

(i) For the sake of Green Revolution the loans are provided at reduced rates, the duty on imports of agri. machinery is abolished, the income tax exemption is given on the poultry incomes and the subsidies are. given on the installation of tube-wells etc. But the big land lords get the benefits of such all facilities. In this way, they get more rich and powerful leading to create a class conflict between land lords and poor farmers. This is the reason that it is said that GR is not possible through small farmers. But the big farmers cannot be put under constraints, as they take risk to adopt new technology and they contribute more to national income: Moreover, it is obvious that the effects of GR will be realized more in case of big farms than small farms. This is the reason that GR does not support land reforms and sub-division of land holdings as small farms of 2 to 4 acres will not allow the use of tractors and harvesters.

 

(ii) It is the GR which has led to promote economic dualism. Some parts of agri. sector will develop while some other sectors will remain backward. Those sectors which produce cash crops and exportable will get momentum and there will be a rise in wages in such sectors. While in case of backward sectors the wages will be depressed down, the unemployment and poverty will spread, and the number of tenants will increase.

 

In addition to these above mentioned effects the poor, illiterate and orthodox tillers of UDCs arc hardly persuaded to adopt new technology.

 

The mechanical changes of GR may often lead to reduce the demand for labor, and increase the demand for capital (as we have discussed earlier). As a result, the share of wages in national income will fall, while that of the rich landlord will increase. Above all, this will result in unemployment - the unemployment of the unskilled tillers particularly when industrial sector is sluggish and fails to absorb them. Therefore, if GR benefits the feudals, landlords and absentee landlords, then 'Public Policy' should aim at creating such circumstances that the rich be taxed, they should not be provided the complementary inputs at subsidized prices and the rate of interest for big agri. credit be enhanced.

 

Relevant Articles:

 

Role of Agriculture Sector in Economic Development of a Developing Country
Structure of Third World Agrarian System
Economics of Agricultural Development/Stages of Agricultural Development
Strategy for Agricultural and Rural Development
Economics of Small Scale Agriculture
Economics of Agriculture Specialization
Role of Agriculture in Economic Growth
Agriculture Surplus as a Source of Capital Formation and Economic Development
Surplus Labor as a Source of Capital Formation and Economic Development
Agriculture Sector and Capital Formation in Developing Countries
Land Reforms or Agrarian Reforms
Land Reforms Measures
Effects of Agrarian Reforms
Agrarian Reforms and Economic Development
Green Revolution (GR)
Nature of Green Revolution (GR)
Causes or Importance of Green Revolution (GR)
Effects of Green Revolution (GR) on Income
Problems/Demerits of Green Revolution (GR)
Relationship Between Farm Size and Farm Output with Respect to Productivity
Productivity of Lands
Relationship Between Green Revolution and Size Productivity
 

Principles and Theories of Micro Economics
Definition and Explanation of Economics
Theory of Consumer Behavior
Indifference Curve Analysis of Consumer's Equilibrium
Theory of Demand
Theory of Supply
Elasticity of Demand
Elasticity of Supply
Equilibrium of Demand and Supply
Economic Resources
Scale of Production
Laws of Returns
Production Function
Cost Analysis
Various Revenue Concepts
Price and output Determination Under Perfect Competition
Price and Output Determination Under Monopoly
Price and Output Determination Under Monopolistic/Imperfect Competition
Theory of Factor Pricing OR Theory of Distribution
Rent
Wages
Interest
Profits
Principles and Theories of Macro Economics
National Income and Its Measurement
Principles of Public Finance
Public Revenue and Taxation
National Debt and Income Determination
Fiscal Policy
Determinants of the Level of National Income and Employment
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Theories of Employment
Theory of International Trade
Balance of Payments
Commercial Policy
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Introduction to Development Economics
Features of Developing Countries
Economic Development and Economic Growth
Theories of Under Development
Theories of Economic Growth
Agriculture and Economic Development
Monetary Economics and Public Finance

History of Money
 

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