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Agricultural Economics -ECN 513

1. a) What are the assumptions of Fei-Ranis dual economic development

model?
Assumptions
In presenting their theory of economic development, Fei and Ranis make the following
assumptions:
1. There is a dual economy divided into a traditional and stagnant agricultural sector and
an active industrial sector.
1. The output of the agricultural sector is a function of land and labour alone.
2. There is no accumulation of capital in agriculture except in the form of land reclamation.
3. Land is fixed in supply.
4. Agricultural activity is characterized by constant returns to scale with labour as a
variable factor.
5. It is assumed that the marginal productivity of labour becomes zero at some point. If
population exceeds the quantity at which the marginal productivity of labour becomes zero,
labour can be transferred to the industrial sector without loss in agricultural output.
6. The output of the industrial sector is a function of capital and labour alone. Land has no
role as a factor of production.
7. Population growth is taken as an exogenous phenomenon.
8. The real wage in the industrial sector remains fixed and is equal to the initial level of real
income in the agricultural sector. They call it the institutional wage.
9. Workers in either sector consume only agricultural products.

1. b) Explain Fei-Ranis dual economic development model using suitable

graph.
Fei and Ranis developed their dual economy model with the help of three stages of
economic growth. They are presented as:
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Stages of Fei-Ranis Model:

Diagram/Figure:

In the (a) part of the Fig., the labor

supply curve is perfectly elastic, as
between S and T. In phase (I) as shown
in (c) part of Fig., the
MPL = 0. In other words, AL = MPL =
0. But here APL = AB. Following Lewis
the FR model argues that AD units of
labor are the surplus amount of labor
in agri. sector which is prey to
disguised unemployment. Therefore,
they can be withdrawn from agri.
sector without changing agri. output.
In phase (II) APL > MPL, but after AD,
MPL begins to rise (c part of Fig). The
growth of labor force in industrial
sector increases from zero to OG (a
part of Fig). The APL in agri. sector is
shown by BYZ curve (c part of Fig).
After AD as migration takes place from
agri. sector to industrial sector MP, >
0, but AP falls. This shows a rise in
real wages for industrial labors because
of shortage of food supply. An increase
in real wages will reduce profits and
the size of 'surplus' which could have
reploughed for further
industrialization.

The investment in industrial sector (with the surplus earned) will shift the MP curve
outward right as from aa to bb and then to cc. In this way agri. sector will be able to get rid
of labor until the MPL = real wages = AB = constant institutional wage (CIW) which is
obtained by dividing the total agri. output ORX (b part of Fig) by AD amount of labor. In
other words, the slope of ORX curve represents real wage rate. Thus the MPL = CIW where
the tangent to the total output line ORX at X is parallel to OX. In the second phase DK
amount of labor were employed. But still MPL < CIW or CIW > MPL. It means that in this
phase a certain amount of labor is still surplus or they are prey to disguised unemployment.
The first stage of FR model is very similar to Lewis. Disguised unemployment comes
into being because the supply of labor is perfectly elastic and MPL = 0. Therefore, such
disguised unemployed are to be transferred to industrial sector at the constant institutional
wage.
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In the second stage of FR model (phase) agri. workers add to agri. output but they
produce less than institutional wage they get. In other words, in the second stage the labor
surplus exists where APL > MPL, but it is not equal to subsistence (institutional) wages.
Accordingly, such disguised unemployed also have to be transferred to the industrial
sector. If the migration to the industrial sector continues a situation is eventually reached
where the farm workers produce output equal to institutional wages. This would mean that
productivity in the agriculture sector has gone up. With this the third phase (stage) starts.
In the third stage of FR model the take-off situation comes to an end and there begins
the era of self-sustained growth where the farm workers produce more than the
institutional wage they get. In this stage of economic growth, the surplus labor comes to an
end and the agri. sector becomes a commercialized sector. All such is explained with the
Fig.
Accordingly, they have to be shifted to the industrial sector. As labor are transferred to
industrial sector a shortage of labor will develop in agri. sector. In other words, it will be
difficult for the industrial sector to get the labor at same prevailing constant wages. As a
result, the wages in the industrial sector will rise as from T to Q in (a) part of Fig.
After point T the turn which occurs in the SZ curve is known as "Lewis Turning Point". In
the 3rd phase the agri. laborers produce more than CIW. (As here MPL > CIW shown in (c)
part of Fig). In this phase the take-off comes to an end and self-sustained growth starts.
This is also known as point of commercialization (of agri.) in FR model. Here the
economy is fully commercialized in the absence of disguised unemployment. Such
commercialization took place at the cost of absorption of disguised unemployment in
industrial sector.

2. a) Define and explain the concept of labor-intensive and capital-intensive

technology of production.
Labor-intensive and capital-intensive technologies are two different approaches to
production that vary in their reliance on either labor or capital (machinery, equipment,
technology, etc.) for the production process.
Labor-Intensive Technology:
In labor-intensive production, the primary factor of production utilized is human labor.
This means that the production process relies heavily on manual work rather than
machinery or automation.
Labor-intensive methods are often found in industries where the cost of labor is relatively
low compared to capital costs, or where tasks require a high degree of human skill or
dexterity.
Examples of labor-intensive industries include agriculture, textiles, certain types of
manufacturing (e.g., garment production), and services like restaurants and cleaning
services.
Capital-Intensive Technology:
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Capital-intensive production, on the other hand, relies more on machinery, equipment,

and technology to carry out production processes. This reduces the relative importance of
human labor in the production process.
Capital-intensive methods are commonly found in industries where labor costs are high, or
where automation and technology can increase efficiency and output.
Examples of capital-intensive industries include automotive manufacturing, electronics
production, heavy machinery manufacturing, and certain segments of the chemical
industry.
In summary, the choice between labor-intensive and capital-intensive technology depends
on various factors such as labor costs, technological advancements, skill requirements, and
the nature of the product being produced. Industries often adopt a mix of both approaches
depending on their specific needs and circumstances.

2. b) Which technology is applicable for Bangladesh and why? - explain.

Both labor-intensive and capital-intensive technologies have their advantages and
suitability depending on various factors including the country's resources, labor force
skills, technological infrastructure, and economic objectives.
In the case of Bangladesh, a labor-intensive technology might be more
applicable due to several reasons:
Abundance of Labor: Bangladesh has a large population, and labor is relatively
abundant and inexpensive compared to capital. Utilizing labor-intensive technology can
leverage this resource effectively.
Skills and Education Levels: The level of education and skills among the workforce in
Bangladesh may be more suited to labor-intensive tasks rather than highly specialized
capital-intensive processes.
Cost-effectiveness: Given the lower initial investment required for labor-intensive
technology compared to capital-intensive technology, it might be more feasible for
Bangladesh, especially considering the country's economic conditions.
Employment Generation: Labor-intensive technology has the potential to generate
more employment opportunities, which can be crucial for a country like Bangladesh with a
high population density and significant unemployment or underemployment.
Adaptation to Informal Economy: Bangladesh has a significant informal sector where
labor-intensive methods are often more prevalent and adaptable.
However, it's essential to note that this doesn't mean capital-intensive technology is
entirely unsuitable for Bangladesh. As the country develops and its economy grows, there
may be sectors and industries where capital-intensive methods become more viable and
beneficial. Additionally, a combination of both technologies, depending on the sector and
specific circumstances, might provide the most optimal solution for Bangladesh's economic
development.
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3. a) Discuss the relationship between environmental development and rural

development.
The relationship between environmental development and rural development is intricate
and interconnected, as rural areas often depend heavily on natural resources for their
livelihoods and economic activities. Here are several key aspects of this relationship:
1. **Natural Resource Dependence**: Rural communities typically rely on natural
resources such as land, water, forests, and biodiversity for agriculture, forestry, fishing, and
other livelihood activities. Therefore, any environmental degradation or mismanagement
can directly impact rural development by reducing the availability of these resources or
diminishing their quality.
2. **Economic Opportunities**: Environmental development initiatives, such as
sustainable resource management practices, conservation projects, and renewable energy
initiatives, can create new economic opportunities in rural areas. For example, investing in
eco-tourism can generate income for rural communities while preserving natural habitats.
3. **Climate Change Resilience**: Rural communities are often more vulnerable to the
impacts of climate change due to their dependence on agriculture and natural resources.
Integrating environmental sustainability into rural development strategies can enhance
resilience to climate change by promoting adaptive practices, such as drought-resistant
crops or watershed management projects.
4. **Livelihood Diversification**: Environmental development efforts can support
rural development by encouraging diversification of livelihoods away from traditional
resource-dependent activities. For instance, promoting sustainable agroforestry practices
or eco-friendly handicraft production can provide alternative sources of income for rural
populations.
5. **Infrastructure Development**: Improving environmental infrastructure, such as
water supply systems, sanitation facilities, and renewable energy infrastructure, can
enhance the quality of life in rural areas while also reducing environmental impacts. Access
to clean water and energy, for example, can improve health outcomes and reduce reliance
on polluting energy sources like biomass or fossil fuels.
6. **Community Empowerment**: Engaging rural communities in environmental
management and conservation initiatives can foster a sense of ownership and
empowerment. Participatory approaches that involve local stakeholders in decision-
making processes not only ensure the sustainability of environmental projects but also
contribute to overall rural development by strengthening social cohesion and fostering
local leadership.
7. **Policy Integration**: Effective integration of environmental and rural development
policies is essential for achieving sustainable outcomes. Policies should be coordinated to
address both environmental conservation and rural development objectives
simultaneously, recognizing their interdependencies and potential synergies.
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In summary, environmental development and rural development are closely intertwined,

with actions in one domain often affecting outcomes in the other. By promoting sustainable
resource management, fostering economic opportunities, enhancing resilience to climate
change, and empowering rural communities, integrated approaches can contribute to the
holistic development of rural areas while safeguarding the environment for future
generations.

3. b) Briefly explain the policy recommendations for the planners in different

segments of rural development programs in Bangladesh.
Policy recommendations for rural development programs in Bangladesh can vary
depending on the specific segment of development being targeted. Here are some general
recommendations for key areas:
Agricultural Development:
• Emphasize the adoption of modern agricultural practices, including improved seeds,
fertilizers, and irrigation techniques.
• Promote crop diversification to reduce dependence on a few crops and enhance
resilience to climate change.
• Provide access to credit and insurance schemes for smallholder farmers to invest in
inputs and manage risks.
• Strengthen extension services to disseminate knowledge and skills among farmers.
Infrastructure Development:
• Focus on improving rural roads, bridges, and transportation networks to enhance
market access for rural producers and facilitate the movement of goods and services.
• Expand access to electricity, clean water, and sanitation facilities in rural areas to
improve living standards and support economic activities.
• Invest in digital infrastructure to promote access to information, communication,
and financial services in rural communities.
Livelihood Diversification:
• Support the development of non-farm rural enterprises such as agro-processing,
handicrafts, and tourism to create alternative sources of income and employment.
• Provide vocational training and skills development programs to equip rural youth
with the skills needed for diverse livelihood opportunities.
• Foster linkages between rural producers and markets through value chain
development initiatives and market information systems.
Social Development:
• Enhance access to education and healthcare services in rural areas to improve
human capital and overall well-being.
• Promote gender equality and women's empowerment through targeted interventions
such as education and skill-building programs, access to credit, and participation in
decision-making processes.
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• Strengthen social safety nets and community-based organizations to support

vulnerable groups and build social resilience.
Environmental Sustainability:
• Promote sustainable natural resource management practices, including watershed
management, reforestation, and soil conservation, to enhance resilience to climate
change and protect ecosystems.
• Encourage the adoption of renewable energy technologies such as solar and biogas to
reduce reliance on fossil fuels and mitigate environmental degradation.
• Raise awareness and promote behavioral change among rural communities to adopt
eco-friendly practices and reduce environmental pollution.
• These policy recommendations should be tailored to the specific needs and context
of rural communities in Bangladesh, with active participation and collaboration
among government agencies, civil society organizations, and local stakeholders.
4. a) What are the assumptions of Malthusian Economic development model?
The Malthusian Economic Development Model, proposed by Thomas Malthus in the late
18th and early 19th centuries, is based on several key assumptions about population
growth, resource availability, and economic development. These assumptions include:
1. **Exponential Population Growth**: Malthusian theory assumes that human population
tends to grow at an exponential rate, meaning that it increases rapidly over time. Malthus
argued that population growth would outstrip the ability of the economy to provide for the
growing population's needs.
2. **Limited Resource Availability**: Malthus posited that the availability of natural
resources, particularly land for agriculture, is finite and subject to diminishing returns. As
population grows, the pressure on available resources increases, leading to diminishing
productivity and declining per capita resource availability.
3. **Fixed Technological Progress**: The Malthusian model assumes that technological
progress and productivity improvements in agriculture and other sectors are limited or
slow to develop. Malthus believed that technological advances would not be sufficient to
offset the negative effects of population growth on resource availability.
4. **Subsistence Living Standards**: Malthus argued that in the absence of significant
improvements in productivity, living standards would tend to gravitate towards
subsistence levels. As population growth outpaces the growth of food production and other
economic activities, per capita incomes would stagnate or decline, leading to poverty and
hardship.
5. **Checks on Population Growth**: Malthus proposed the existence of "checks" on
population growth, which could be either "positive" (such as famine, disease, and war) or
"preventive" (such as delayed marriage, abstinence, or birth control). These checks would
act to limit population growth and maintain a balance between population and resources.
Overall, the Malthusian Economic Development Model is based on the assumptions of
exponential population growth, limited resource availability, slow technological progress,
subsistence living standards, and checks on population growth. While Malthus' predictions
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of widespread famine and misery have not materialized on a global scale, his ideas have
influenced discussions about population, resources, and sustainability throughout history.
4.b) Briefly explain the Lewis economic development model with suitable
graph.
In Lewis model the transformation process or the process of structural change starts by
an autonomous expansion in demand in industry as a result of changes in domestic
consumer tastes, in government purchases, or in international markets. When these
profits are ploughed back into industrial capital formation, demand for industrial
output (both for consumption goods by newly employed workers and investment by
capitalists) rises, causing further shifts of labour out of agriculture into industry.

The process comes to a halt when agricultural productivity rises to a point where the
supply price of labour to industry increases, i.e., a point at which agricultural
alternatives of output and income are sufficiently attractive to the would-be industrial
workers to keep them in farming. In the absence of rural-urban differences in the cost
of living, this occurs when the marginal product of labour in the two sectors are equal.
Since there is surplus labour from the subsistence sector, the capitalist sector draws its
labour from the subsistence sector and it is assumed that as a result of rapid increases
in population in already densely populated countries the supply of unskilled labour is
unlimited.

Lewis has assumed and made the point that capitalists will have to pay a margin of
about 30% above average subsistence pay, because the surplus workers need some
incentive to move and in any case part of the difference is needed to compensate them
for the higher cost of living in urban areas. This surplus is the key to the Lewis model of
development. In Fig. 14 OS is the average product of the subsistence sector—the
amount a man would receive there. Here, OW is the capitalist wage. We start with a
fixed quantity of capital, and in this situation the demand for labour is represented by
the marginal productivity schedule of labour NQ. Under profit-maximizing conditions,
labour will be applied to the point where the wage, W, equals marginal productivity,
i.e., Q1, corresponding to Oa number of workers. Workers in excess of O a will earn
whatever they can in the subsistence sector.

Development takes place since part of

what is produced accrues to the capitalist
in the form of a surplus (WN, Q 1 in
Fig.14). This amount is reinvested. This
reinvestment produces an increase in the
amount of fixed capital and causes a shift
in the marginal product of labour curve
form N1Q1 to N2Q2 in the next period.

More labour will now be employed and the

surplus increases, leading to a further
shift of the curve to N 3Q3, causing more
labour to be drawn in from the sub-
sistence sector has been drawn into the
capitalist sector. When that happens pay
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in the subsistence sector will start to rise, causing wages in the capitalist sector to rise,
and then the first phase of development will have ceased as the supply curve of labour
has ceased to be horizontal, but has turned up wards.

Criticisms:

The Lewis model is close to the Ricardian one. It neglects the central concern of
Ricardo: how the price of food is to be held down. If it he assumed, however, that the
supply of labour to industry is infinitely elastic at a steady wage because of surplus
labour in agriculture, this can help explain initial development which comes to an end
when wages start to rise with increased capital formation.

SET B
5. a) Briefly explicate the market structure of agricultural marketing system in
LDCs.
In many Least Developed Countries (LDCs), the agricultural marketing system often
exhibits characteristics of imperfect or traditional market structures rather than the well-
defined market structures seen in more developed economies. Here's a brief explication of
the market structure of agricultural marketing systems in LDCs:
1. **Fragmentation**: Agricultural markets in LDCs are often highly fragmented, with
numerous small-scale farmers producing diverse crops and often lacking coordination
among themselves. This fragmentation can lead to inefficiencies in production,
distribution, and marketing.
2. **Informality**: Many agricultural markets in LDCs operate informally, with
transactions occurring through traditional channels such as local markets, roadside stalls,
or direct sales from farm to consumer. This informal nature can result in limited market
information, lack of price transparency, and difficulties in enforcing regulations.
3. **Limited Infrastructure**: LDCs often have inadequate infrastructure for
agricultural marketing, including poor transportation networks, storage facilities, and
market infrastructure. This lack of infrastructure can hinder the efficient movement of
agricultural products from rural areas to urban markets, leading to high transaction costs
and post-harvest losses.
4. **Weak Institutions**: Agricultural marketing systems in LDCs may suffer from weak
institutional support, including inadequate market regulations, limited access to credit and
insurance, and insufficient extension services for farmers. These institutional weaknesses
can constrain market efficiency and hinder the adoption of modern agricultural practices.
5. **Market Power**: In some cases, agricultural markets in LDCs may be dominated by
a few powerful intermediaries, such as traders, processors, or input suppliers, who exercise
significant market power. This concentration of market power can lead to exploitative
practices, unfair pricing, and limited bargaining power for small-scale farmers.
6. **Vulnerability to External Shocks**: Agricultural markets in LDCs are often
highly vulnerable to external shocks, such as adverse weather conditions, fluctuations in
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global commodity prices, or trade disruptions. These shocks can exacerbate food
insecurity, rural poverty, and economic instability in LDCs.
Overall, the market structure of agricultural marketing systems in LDCs is characterized by
fragmentation, informality, limited infrastructure, weak institutions, market power
dynamics, and vulnerability to external shocks. Addressing these challenges requires
comprehensive strategies that promote market integration, improve infrastructure and
institutions, strengthen value chains, and enhance the resilience of rural livelihoods.
5. b) Define money market. Briefly explain the nature and role of rural money market.
The money market refers to a segment of the financial market where short-term
borrowing and lending of funds occur. It deals with instruments that have a maturity
period typically ranging from overnight to one year. The primary participants in the money
market are financial institutions, corporations, governments, and central banks.
The rural money market refers to the segment of the financial market that operates
specifically within rural areas, catering to the financial needs of rural households,
agricultural enterprises, and small businesses. It functions similarly to the broader money
market but with a focus on rural areas and their unique characteristics.
Nature of the Rural Money Market:
1. **Localized Operations**: The rural money market primarily operates within rural
communities, often in areas where access to formal financial institutions may be limited.
2. **Informality**: In many cases, the rural money market operates through informal
channels, including local moneylenders, savings groups, and cooperatives, alongside
formal financial institutions such as rural banks and microfinance institutions.
3. **Short-Term Financing**: Similar to the broader money market, the rural money
market deals with short-term financial instruments with maturities ranging from overnight
to one year. These instruments may include short-term loans, agricultural credit, savings
products, and microfinance loans.
4. **Focus on Agriculture and Rural Development**: The rural money market is
particularly focused on financing agricultural activities, rural development projects, and
small-scale enterprises that contribute to the rural economy.
Role of the Rural Money Market:
1. **Providing Access to Finance**: The rural money market plays a crucial role in
providing access to finance for rural households, smallholder farmers, and rural
entrepreneurs who may have limited access to formal banking services.
2. **Supporting Agricultural Activities**: By providing short-term financing for
agricultural inputs, equipment purchases, and crop production, the rural money market
supports the growth and development of the agricultural sector in rural areas.
3. **Facilitating Savings and Investment**: The rural money market offers various
savings and investment products tailored to the needs of rural savers, helping them
accumulate funds for future expenses, emergencies, or investments in income-generating
activities.
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4. **Promoting Financial Inclusion**: Through innovative financial products and

services, such as mobile banking, agent banking, and digital payments, the rural money
market promotes financial inclusion by reaching underserved rural populations and
integrating them into the formal financial system.
5. **Contributing to Economic Development**: By providing access to finance,
promoting entrepreneurship, and supporting agricultural activities, the rural money
market contributes to the overall economic development and poverty reduction in rural
areas.
Overall, the rural money market serves as a vital source of financial intermediation and
support for rural communities, helping to address their unique financial needs and
contribute to the sustainable development of rural economies.

6. a) What are the types of land? -discuss.

Land can be classified into various types based on different criteria such as its use, physical
characteristics, and legal definitions. Some common types of land include:
1. Agricultural land: Land used for farming, cultivation of crops, or raising livestock.
2. Residential land: Land designated for housing and residential purposes.
3. Commercial land: Land used for businesses, offices, and retail establishments.
4. Industrial land: Land used for factories, warehouses, and industrial purposes.
5. Forest land: Land covered primarily by trees and used for timber production or
conservation.
6. Urban land: Land within cities or towns, often developed for residential, commercial,
and industrial purposes.
7. Rural land: Land located outside of urban areas, typically used for agriculture,
forestry, or natural conservation.
8. Wetlands: Land areas saturated with water, such as swamps, marshes, and bogs,
which are important for biodiversity and flood control.
9. Desert land: Arid regions with little vegetation and low rainfall, often unsuitable for
agriculture but may have other uses such as mineral extraction.
10. Pastureland: Land used for grazing livestock.
11. Recreational land: Land designated for recreational activities such as parks,
playgrounds, and sports fields.
12. Wilderness: Land that remains largely undeveloped and in a natural state, often
protected for conservation or outdoor recreation.
These are just a few examples, and there can be overlap or subcategories within each type
of land.
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6. b) Explain the importance of land reform system in the context of

Bangladesh.
Land reform is crucial in Bangladesh for several reasons:
1. **Economic Development: ** Land reform can help redistribute land ownership
more equitably, allowing smallholder farmers access to land, which can increase
agricultural productivity and contribute to overall economic development.
2. **Social Equity: ** Historically, land ownership in Bangladesh has been concentrated
in the hands of a few wealthy individuals or families, leading to social inequities and
tensions. Land reform aims to address this by redistributing land to landless farmers and
marginalized communities, promoting social justice and cohesion.
3. **Poverty Alleviation: ** Access to land is often a key determinant of poverty in rural
areas. By providing land to landless farmers, land reform can help lift families out of
poverty by enabling them to cultivate crops, generate income, and improve their living
standards.
4. **Food Security: ** Bangladesh's economy is heavily dependent on agriculture, and
ensuring access to land for smallholder farmers is essential for food security. Land reform
can help increase agricultural production, diversify crops, and improve rural livelihoods,
ultimately contributing to food security for the entire population.
5. **Reducing Land Disputes: ** Land disputes are common in Bangladesh, often
leading to legal conflicts and social unrest. Implementing an effective land reform system
can help clarify land ownership rights, reduce disputes, and improve land governance,
leading to greater stability and security in rural areas.
Overall, land reform is essential for promoting economic development, social equity,
poverty alleviation, food security, and reducing land disputes in Bangladesh. It is a critical
component of the country's efforts to achieve sustainable and inclusive growth.
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7 a) What are the factors determining the types and size of farms?
The type and size of a farm can be determined by various factors, including:
1. **Location**: Climate, soil type, topography, and access to water can dictate the type of
crops that can be grown and the suitability for livestock farming.
2. **Market Demand**: Farmers often consider market demand for certain products
when deciding what to produce. They may choose crops or livestock that have a higher
demand in their region or that fetch better prices.
3. **Available Resources**: This includes land availability, capital investment, labor
availability, and access to machinery and technology. These resources can influence both
the type and size of the farm.
4. **Government Policies**: Subsidies, regulations, and incentives provided by the
government can impact the type of farming practices and the size of farms.
5. **Farmers' Expertise and Preferences**: Farmers' skills, knowledge, and
preferences play a significant role in determining the type of farming they undertake. Some
farmers may have expertise in a particular type of crop or livestock, influencing their
choices.
6. **Environmental Considerations**: Concerns about sustainability and
environmental impact can influence farming practices. Some farmers may opt for organic
farming or adopt conservation practices, which can affect the type and size of the farm.
7. **Market Accessibility**: Proximity to markets and transportation infrastructure can
influence the scale and type of farming. Farmers may choose to produce perishable goods
closer to markets to minimize transportation costs and maximize freshness.
8. **Risk Management**: Farmers may consider risk factors such as weather patterns,
pests, diseases, and market volatility when determining the type and size of their farms.
Diversification and scale of operations can be strategies to mitigate risks.
These factors interact in complex ways, and farmers often need to balance multiple
considerations when making decisions about their farm type and size.

7. b) Explain the relationship between farm size and productivity.

The relationship between farm size and productivity is a complex issue that varies
depending on various factors including the context, location, type of agriculture, and level
of development. However, several general trends and relationships can be observed:
1. **Economies of Scale**: Larger farms often benefit from economies of scale, where
the average cost of production decreases as the scale of production increases. This is
because larger farms can spread fixed costs (such as machinery, infrastructure, and
management) over a larger output, leading to lower per-unit costs.
2. **Specialization and Efficiency**: Larger farms may have the resources to invest in
specialized equipment, technology, and management practices that can enhance efficiency
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and productivity. They may also have the capacity to adopt advanced farming techniques,
such as precision agriculture, that can improve yields and reduce waste.
3. **Access to Resources**: Larger farms may have better access to financial capital,
land, labor, inputs, and markets, which can contribute to higher productivity. They may be
able to invest in irrigation, mechanization, fertilizers, and improved seeds, which can
increase yields and output.
4. **Management Capacity**: Larger farms may have more professional management
structures and capabilities, allowing for better planning, decision-making, and
implementation of farming practices. This can lead to improved productivity through
better utilization of resources and adoption of modern technologies.
5. **Risk Management**: Larger farms may have greater resilience to risks such as
weather fluctuations, market volatility, and pest outbreaks, due to their diversification,
scale, and resources. This can help maintain stable production levels and reduce the impact
of adverse events on productivity.
6. **Local Context**: The relationship between farm size and productivity can vary
significantly depending on the local context and specific conditions. In some cases, small-
scale farms may be more productive per unit of land or labor due to factors such as
intensive cultivation, agroecological practices, or niche markets.
7. **Social and Environmental Considerations**: Small-scale farming systems may
play important roles in preserving biodiversity, maintaining cultural heritage, and
promoting sustainable land management practices. While larger farms may achieve higher
productivity levels, they may also face challenges related to environmental degradation,
social equity, and rural livelihoods.
Overall, the relationship between farm size and productivity is influenced by a complex
interplay of factors, and there is no one-size-fits-all answer. Both small-scale and large-
scale farming systems have unique strengths and challenges, and policies should aim to
support diverse agricultural models while promoting sustainable and equitable
development.
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8. a) What are the characteristics of the agricultural sector of Bangladesh?

The agricultural sector in Bangladesh is characterized by:
1. **Importance to the Economy**: It plays a vital role in the country's economy,
employing a significant portion of the population and contributing to GDP.
2. **Crop Diversity**: Bangladesh grows a variety of crops, including rice, jute, tea,
wheat, sugarcane, and pulses.
3. **Rice Dominance**: Rice is the staple food and the most important crop, cultivated
throughout the country.
4. **Smallholder Farming**: The majority of agricultural activities are carried out by
smallholder farmers, often on small plots of land.
5. **Monsoon Dependency**: Agriculture heavily relies on the monsoon season for
irrigation and water supply, making it susceptible to climate variability.
6. **Rural Livelihoods**: Agriculture is the primary source of livelihood for rural
communities, contributing to poverty alleviation and rural development.
7. **Challenges**: The sector faces challenges such as land degradation, water scarcity,
pests and diseases, limited access to modern technology and inputs, and vulnerability to
natural disasters like floods and cyclones.
8. **Government Support**: The government of Bangladesh provides various support
programs, subsidies, and policies to promote agricultural development, improve
productivity, and ensure food security.

8. b) Briefly explain the problems and prospects of agricultural mechanization

in Bangladesh.
Certainly, agriculture mechanization in Bangladesh presents both challenges and
opportunities:
**Problems: **
1. **High initial investment: ** The cost of purchasing machinery and equipment for
mechanized farming is often prohibitive for small-scale farmers, limiting their access to
modern technology.
2. **Lack of infrastructure: ** In many rural areas of Bangladesh, inadequate
infrastructure such as proper roads, storage facilities, and repair services hinders the
effective implementation and maintenance of agricultural machinery.
3. **Limited access to credit: ** Smallholder farmers often struggle to access credit to
invest in mechanization due to limited financial resources and lack of collateral.
4. **Dependency on manual labor: ** Traditional farming practices heavily reliant on
manual labor are deeply ingrained in Bangladesh's agricultural sector, making it
challenging to transition to mechanized farming methods.
 [16]

5. **Environmental concerns: ** Intensive mechanization can lead to environmental

issues such as soil degradation, water pollution, and loss of biodiversity if not managed
properly.
**Prospects: **
1. **Increased productivity: ** Mechanization can lead to higher agricultural
productivity by reducing labor requirements, increasing efficiency, and enabling timely
farm operations such as planting, harvesting, and irrigation.
2. **Cost savings: ** Although the initial investment may be high, mechanization can
result in long-term cost savings by reducing labor costs, increasing yield, and minimizing
post-harvest losses through efficient handling and storage.
3. **Empowerment of smallholder farmers: ** With the right support and policies,
mechanization can empower smallholder farmers by improving their access to modern
farming technologies, increasing their efficiency, and enhancing their competitiveness in
the market.
4. **Diversification of crops: ** Mechanization can enable farmers to diversify their
crops and adopt new farming practices, leading to increased resilience to climate change
and market fluctuations.
5. **Job creation: ** While mechanization may reduce the demand for manual labor in
some areas, it can also create new job opportunities in sectors such as manufacturing,
machinery maintenance, and agricultural services.
Overall, while agriculture mechanization in Bangladesh faces challenges, its prospects for
enhancing productivity, empowering farmers, and promoting sustainable agricultural
practices make it a promising avenue for the country's agricultural development.
 [17]

9. a) Define NGO. Discuss the classification of NGOs based on special coverage

and sources of fund.
An NGO, or non-governmental organization, is a non-profit, voluntary organization that is
independent of government control and operates for the purpose of addressing social,
environmental, cultural, or humanitarian issues. NGOs are typically driven by a mission or
cause and rely on donations, grants, and volunteer efforts to carry out their activities.

Classification of NGOs based on special coverage and sources of funds:

1. **Classification based on Special Coverage**:
a. **International NGOs (INGOs)**: These NGOs operate across national borders
and are involved in global or transnational issues. They may focus on international
development, humanitarian aid, human rights, environmental conservation, or other
global challenges. Examples include Oxfam, Doctors Without Borders (MSF), and
Greenpeace.
b. **National NGOs (NNGOs)**: National NGOs operate within the boundaries of a
specific country and focus on addressing local or national issues. They may work on a wide
range of issues, including education, healthcare, poverty alleviation, environmental
conservation, and community development. Examples include the American Red Cross,
CARE USA, and Save the Children.
c. **Local NGOs (LNGOs)**: These NGOs operate at the grassroots level within a
specific community, region, or locality. They are often closely connected to the
communities they serve and may focus on issues such as rural development, women's
empowerment, youth education, or environmental sustainability. Examples include
community-based organizations (CBOs), women's cooperatives, and youth groups.

2. **Classification based on Sources of Funds**:

a. **Government-funded NGOs**: Some NGOs receive funding directly from
government agencies or through government grants and contracts. While this funding can
provide stability and resources for NGO operations, it may also raise questions about
independence and potential conflicts of interest.
b. **Private-funded NGOs**: Many NGOs rely on donations and contributions from
private individuals, corporations, foundations, and philanthropic organizations. Private
funding sources can include individual donations, corporate sponsorships, grants from
foundations, and fundraising events. This funding model allows NGOs to maintain
independence and flexibility but may also be subject to fluctuations in donor support.
c. **Self-funded NGOs**: Some NGOs generate income through self-generated
activities such as social enterprises, income-generating projects, or fee-for-service
programs. This may include selling goods or services, providing training or consulting
services, or running income-generating projects such as eco-tourism initiatives or artisan
cooperatives.
 [18]

d. **Multilateral and bilateral-funded NGOs**: Certain NGOs receive funding from

multilateral institutions such as the United Nations (UN), World Bank, or regional
development banks, as well as from bilateral aid agencies of governments. These funds may
support specific projects or programs aimed at achieving development goals in areas such
as education, healthcare, or environmental conservation.
Overall, NGOs play a crucial role in addressing social, environmental, and humanitarian
challenges worldwide, and their diverse classification based on special coverage and
funding sources reflects the breadth and complexity of their activities and operations.

9. b) Criticize the role and functions of different NGOs in Bangladesh.

Critiquing the role and functions of NGOs in Bangladesh involves acknowledging both their
contributions and the challenges they face. Here are some points of critique:
1. **Overemphasis on Aid Dependency**: One critique of NGOs in Bangladesh is
their perceived overemphasis on aid dependency. Some critics argue that NGOs have
become too reliant on foreign funding, which can create a dependency syndrome and
undermine the development of sustainable local institutions and resources.
2. **Limited Accountability and Transparency**: While many NGOs in Bangladesh
do valuable work, there have been concerns about their accountability and transparency.
Some NGOs have faced criticism for lack of transparency in their financial management,
decision-making processes, and project implementation. This lack of accountability can
erode trust and hinder effective governance.
3. **Elite Capture and Exclusionary Practices**: Critics argue that some NGOs in
Bangladesh may be susceptible to elite capture, where resources and benefits are
disproportionately directed towards privileged or politically connected groups, rather than
reaching the most marginalized and vulnerable communities. This can perpetuate
inequalities and exclusionary practices within society.
4. **Fragmentation and Duplication of Efforts**: Bangladesh has a large number of
NGOs operating in various sectors, leading to concerns about fragmentation and
duplication of efforts. Some critics argue that this proliferation of NGOs can result in
overlapping programs, inefficiencies, and competition for resources, rather than
coordinated and synergistic efforts.
5. **Lack of Sustainable Impact**: While NGOs often implement projects and
programs aimed at addressing immediate needs, critics raise questions about the long-
term sustainability and impact of these interventions. There is a need for greater emphasis
on building local capacity, fostering community ownership, and promoting sustainable
development practices that empower communities to address their own needs.
6. **Limited Focus on Rights-Based Approaches**: Critics argue that some NGOs in
Bangladesh have focused primarily on service delivery rather than adopting a rights-based
approach to development. There is a need for greater emphasis on promoting human
rights, social justice, and empowerment of marginalized groups, particularly women,
children, and ethnic minorities.
 [19]

7. **Challenges of NGO-Government Relations**: NGOs in Bangladesh often

operate within a complex regulatory environment and may face challenges in their
relationships with government authorities. Some critics argue that government regulations
and restrictions on NGOs' activities can limit their effectiveness and autonomy, leading to
tensions between NGOs and the state.
8. **Gender Imbalances and Power Dynamics**: While many NGOs in Bangladesh
prioritize gender equality and women's empowerment, there are still challenges related to
gender imbalances and power dynamics within organizations. Women's participation in
decision-making roles and leadership positions may be limited, and there is a need for
greater attention to gender mainstreaming and feminist perspectives in NGO work.
In conclusion, while NGOs in Bangladesh play a significant role in addressing social,
economic, and environmental challenges, there are also legitimate critiques regarding
issues such as aid dependency, accountability, elitism, fragmentation, sustainability,
rights-based approaches, government relations, and gender dynamics. Addressing these
critiques requires continuous reflection, dialogue, and efforts to improve governance,
transparency, inclusivity, and effectiveness within the NGO sector.

10 a) Explain the consequences of Covid-19 pandemic in rural agricultural development of

Bangladesh.
The consequences of COVID-19 on rural agricultural development in Bangladesh have been
significant. Here are some key impacts:
Disruption in Supply Chains: Lockdowns and restrictions disrupted the supply chains
of agricultural inputs such as seeds, fertilizers, and machinery, affecting production.
Labor Shortages: Movement restrictions and fear of infection led to labor shortages,
impacting planting, harvesting, and other agricultural activities.
Market Instability: Fluctuations in demand and prices due to reduced purchasing power
and disruptions in transportation affected farmers' incomes and market access.
Access to Finance: Limited access to credit and financial services due to economic
slowdowns and reduced liquidity affected farmers' ability to invest in agricultural inputs
and technology.
Technology Adoption: The pandemic highlighted the importance of technology
adoption for remote agricultural activities such as online market access, virtual training,
and digital payment systems.
Food Security Concerns: Economic hardships and disruptions in food supply chains
raised concerns about food security, especially among vulnerable rural populations.
Government Response: The government implemented various measures such as
stimulus packages, support for agricultural input distribution, and promotion of online
market platforms to mitigate the impact on rural agriculture.
Overall, the COVID-19 pandemic has underscored the vulnerabilities of rural agricultural
systems in Bangladesh and the need for resilient strategies to address future crises.
 [20]

10. b) How could you mitigate the negative consequences? -explain.

Mitigating the negative consequences of COVID-19 in rural agricultural development in
Bangladesh can involve several strategies:
Access to Information and Resources: Ensure rural farmers have access to accurate
information about COVID-19 prevention and support services available to them.
Support for Digital Solutions: Introduce or enhance digital platforms for farmers to
access markets, information on crop prices, weather forecasts, and agricultural best
practices remotely.
Financial Assistance: Provide financial support, such as grants or low-interest loans, to
help farmers cope with the economic impact of the pandemic, including disruptions in the
supply chain and decreased demand.
Infrastructure Development: Invest in rural infrastructure, such as roads, irrigation
systems, and storage facilities, to improve agricultural productivity and resilience to future
shocks.
Capacity Building: Offer training programs on sustainable agricultural practices, post-
harvest management, and diversification of crops to increase resilience and adaptability.
Market Diversification: Encourage farmers to explore alternative markets, including
local and regional markets, to reduce dependence on export-oriented supply chains that
may be disrupted during the pandemic.
Healthcare Services: Improve access to healthcare services in rural areas to ensure
farmers and their families can receive medical care if needed, including vaccination
campaigns against COVID-19.
Social Safety Nets: Strengthen social safety net programs to provide assistance to
vulnerable populations, including smallholder farmers, who may be disproportionately
affected by the pandemic.
Community Support Networks: Foster collaboration among farmers, cooperatives,
and local organizations to share resources, information, and support each other during
challenging times.
Policy Support: Advocate for policies that prioritize the needs of rural agricultural
communities, including support for smallholder farmers, land tenure security, and
sustainable land management practices.
 [21]

11. Write short notes on

11. a) Sustainable agricultural development
Sustainable agricultural development refers to practices and approaches in agriculture that
aim to meet current food and fiber needs without compromising the ability of future
generations to meet their own needs. It involves implementing techniques that promote
environmental stewardship, economic viability, and social equity within farming systems.
This can include practices like crop rotation, organic farming, agroforestry,
and water conservation, among others, to minimize negative environmental
impacts and ensure long-term productivity and resilience in agricultural
systems.
Sustainable agricultural development refers to the process of meeting the present needs for
food, fiber, and other agricultural products without compromising the ability of future
generations to meet their own needs. It involves integrating principles of economic
viability, environmental stewardship, and social equity into agricultural practices and
policies. Here are key elements and strategies associated with sustainable agricultural
development:
1. **Climate Resilience**: Sustainable agriculture aims to build resilience to climate change
by promoting practices that mitigate greenhouse gas emissions, enhance carbon
sequestration, and adapt to changing climatic conditions. This includes practices such as
agroecology, drought-resistant crops, water-efficient irrigation, and agroforestry systems.
2. **Biodiversity Conservation**: Sustainable agriculture seeks to conserve and enhance
biodiversity both above and below ground. This involves maintaining diverse crop
varieties, protecting natural habitats, promoting beneficial insects and pollinators, and
preserving genetic diversity in crops and livestock.
3. **Economic Viability**: Sustainable agricultural development aims to ensure the
economic viability and profitability of farming operations, particularly for smallholder
farmers and rural communities. This may involve providing access to credit, markets,
technical assistance, and other support services, as well as promoting value-added
activities and market diversification.
4. **Social Equity and Inclusion**: Sustainable agriculture prioritizes social equity and
inclusion by ensuring that all members of society have access to nutritious food, land,
resources, and opportunities for meaningful participation in decision-making processes.
This includes addressing issues such as gender inequality, land tenure rights, labor rights,
and food justice.
5. **Knowledge and Innovation**: Sustainable agriculture relies on continuous learning,
innovation, and knowledge-sharing among farmers, researchers, policymakers, and other
stakeholders. This includes promoting farmer-led research, participatory extension
services, farmer field schools, and interdisciplinary approaches to agricultural research and
education.
6. **Policy and Governance**: Sustainable agricultural development requires supportive
policies, regulations, and governance frameworks at local, national, and international
levels. This may involve aligning agricultural policies with broader sustainable
 [22]

development goals, incentivizing sustainable practices through subsidies and incentives,

and promoting multi-stakeholder partnerships and collaboration.
Overall, sustainable agricultural development is essential for ensuring food security,
environmental sustainability, and social well-being in the face of growing global challenges
such as climate change, population growth, and natural resource depletion. By integrating
ecological, economic, and social dimensions, sustainable agriculture offers a pathway
towards a more resilient, equitable, and prosperous food system for present and future
generations.
11.b) Role of rural women in agricultural development
Rural women play crucial roles in agricultural development, often serving as the backbone
of rural economies worldwide. Their contributions include:
Farm Labor: Rural women are heavily involved in various agricultural activities,
including planting, weeding, harvesting, and tending to livestock.
Seed Saving and Preservation: Women often play key roles in preserving traditional
seed varieties, ensuring biodiversity and resilience in agricultural systems.
Natural Resource Management: They are responsible for managing natural resources
such as water, soil, and forests, employing sustainable practices to ensure long-term
viability.
Food Processing and Preservation: Women are typically involved in post-harvest
activities such as food processing, preservation, and value addition, adding to the economic
value of agricultural products.
Access to Markets: They are often responsible for marketing agricultural products,
either by selling directly in local markets or by participating in value chains, contributing to
household income.
Community Leadership: Rural women often hold informal leadership roles within their
communities, influencing decision-making processes related to agriculture and rural
development.
Education and Health Advocacy: They play a vital role in educating their families and
communities about nutrition, health, and sustainable agricultural practices.
Resilience Building: Through their diverse roles, rural women contribute to building
resilience in agricultural systems, adapting to climate change, market fluctuations, and
other challenges.
Empowering rural women with access to resources, education, technology, and decision-
making opportunities is essential for sustainable agricultural development and rural
prosperity
 [23]

11.c) Farm and non-farm activities

Farm activists and non-farm activists are both individuals or groups advocating for various
causes, but with different focuses:
Farm Activists: These individuals or groups primarily advocate for issues related to
agriculture, farmers, and rural communities. They may campaign for farmers' rights, fair
agricultural policies, sustainable farming practices, access to land and resources, and fair
prices for agricultural products.
Non-Farm Activists: Non-farm activists, on the other hand, advocate for a wide range of
causes unrelated to agriculture. This could include environmental issues, social justice,
human rights, animal rights, political reform, and more. Their activism may involve
protests, lobbying public discourse and influencing policies on various issues.

11.d) Land tenure system of Bangladesh

Bangladesh has a diverse land tenure system that includes various forms of ownership and
leasing arrangements. The predominant forms of land tenure in Bangladesh are:
Private Ownership: Individuals or families can own land privately. This ownership can
be inherited, purchased, or acquired through government allocation.
Khas Land: Khas land refers to government-owned land that is not earmarked for specific
purposes. It can be leased out to individuals or entities for cultivation or other purposes.
Vested Property: Vested property refers to land that was previously owned by Hindu
families but was confiscated by the government after the Hindu Family Ordinance Act of
1962. This land is often distributed among landless families or leased out.
Homestead Land: Homestead land refers to small plots of land typically used for
residential purposes, often provided by the government to landless and marginalized
families.
Sharecropping: Sharecropping is a common practice where landowners lease land to
tenants who then cultivate crops on the land. The produce is usually divided between the
landowner and the tenant according to prearranged terms.
Barga System: In the barga system, landowners provide land to tenants, who cultivate
the land and share the produce with the landowner. This system often involves informal
agreements and can lead to disputes over land rights.
Leasehold: Land can be leased from private individuals, the government, or other entities
for a specified period, typically for agricultural or commercial purposes.
The land tenure system in Bangladesh is complex and influenced by historical, social, and
economic factors. Land reforms and policies have been implemented over the years to
address issues such as landlessness, inequitable distribution of land, and land-related
disputes.
 [24]

11. e) Importance of education and training in rural development.

Education and training play crucial roles in rural development by empowering individuals
with knowledge and skills necessary for economic, social, and cultural progress. Here are
some key points highlighting their importance:

1. **Economic Empowerment**: Education and training equip individuals with

relevant skills, such as agricultural techniques, entrepreneurship, and vocational skills,
enabling them to generate income and improve livelihoods within rural communities.
2. **Capacity Building**: Training programs enhance the capacity of rural residents to
effectively manage resources, make informed decisions, and adapt to changing
circumstances, thereby fostering sustainable development.
3. **Technological Advancement**: Education exposes rural inhabitants to modern
technologies and innovations, facilitating improved agricultural practices, access to
information, and connectivity, which are essential for rural development.
4. **Community Development**: Educated individuals are more likely to actively
participate in community development initiatives, such as healthcare programs,
infrastructure development, and environmental conservation, contributing to overall
societal progress.
5. **Poverty Alleviation**: Education and training are powerful tools for poverty
alleviation, as they enable individuals to break the cycle of poverty by gaining employment
opportunities, starting businesses, and accessing essential services.
6. **Empowerment of Marginalized Groups**: Education and training programs can
empower marginalized groups, including women, youth, and indigenous communities, by
providing them with the necessary skills and knowledge to participate fully in economic
and social activities.
7. **Knowledge Transfer**: Education facilitates the transfer of knowledge from urban
centers to rural areas, promoting innovation, creativity, and adaptability among rural
populations.
Overall, investing in education and training is essential for promoting inclusive and
sustainable rural development, fostering economic growth, improving quality of life, and
reducing disparities between rural and urban areas.