How was progress achieved in transformed countries?
Here are five ways:
1. TO DETERMINE THE DEVELOPMENT NEEDS OF A PARTICULAR COUNTRY, LOOK AT HOW MUCH AGRICULTURAL LAND IS AVAILABLE, HOW FERTILE IT IS, AND BIRTH RATES
Successful countries in Latin America with abundant and fertile land and high birth rates prioritized agriculture in the early phase of transformation. Successful countries in Asia with scarce land per person but high birth rates pulled people out of agriculture and prioritized industry and services in the early phase of transformation.
2. PRICE POLICIES PLAY A KEY ROLE IN AGRICULTURAL TRANSFORMATION
Agriculture took off when countries removed the anti-agricultural bias.
3. PUBLIC INVESTMENT IN RESEARCH, EXTENSION SERVICES, ELECTRICITY AND IRRIGATION IS IMPORTANT
But the quality of those services can matter more than the quantity.
4. LAND REFORMS, RESEARCH INSTITUTIONS AND IMPROVING ACCESS TO CREDIT ARE ALSO CRITICAL
Land reforms, supporting research institutions and improving access to credit are the most critical.
5. COMPLEMENTARITY IS ESSENTIAL
Combining these reforms with public investment is particularly powerful, particularly when well-coordinated. Careful sequencing of the investment also matters.