Bring out the impact of the declining significance of the agrarian economy. (UPSC CSE Mains 2016 - Sociology, Paper 2).

The agrarian economy, once the backbone of many nations, has seen a significant decline in its relative importance due to factors such as industrialization, urbanization, and technological advancements.  

  • Economic Transformation:
    • Reduced Contribution to GDP: The declining share of agriculture in the Gross Domestic Product (GDP) highlights the economic shift away from the agrarian sector.
    • Example: In India, the contribution of agriculture to GDP has steadily decreased, showcasing the changing economic landscape.
  • Rural to Urban Migration:
    • Increased Urbanization: As agriculture loses prominence, people migrate from rural areas to urban centers in search of better economic prospects and employment opportunities.
    • Example: China has witnessed a significant rural-to-urban migration trend as more individuals seek non-agricultural employment.
  • Shift in Employment Patterns:
    • Less Labor Dependency: The decline in agriculture''s significance has led to a reduction in the number of people employed in the agricultural sector.
    • Example: Developed countries like the United States have experienced a shift towards a more service-oriented economy, resulting in fewer people engaged in farming.
  • Technological Advancements:
    • Mechanization and Modernization: Agricultural technologies have progressed, leading to increased efficiency and higher productivity with fewer labor requirements.
    • Example: Precision farming techniques and automated machinery have revolutionized the agricultural sector, minimizing the need for manual labor.
  • Rural Economy Diversification:
    • Development of Non-farm Activities: Rural areas are diversifying their economies by engaging in non-agricultural activities like tourism, handicrafts, and small-scale industries.
    • Example: Rural tourism initiatives in countries like India have gained traction, offering alternative income sources.
  • Income Inequality and Poverty Alleviation:
    • Impact on Income Levels: The declining significance of agriculture can exacerbate income inequalities, as non-agricultural sectors often offer higher wages.
    • Example: Sub-Saharan African countries face challenges of income disparities due to the declining role of agriculture in the economy.
  • Food Security and Supply Chain Concerns:
    • Dependence on Imports: A decline in domestic agricultural production can lead to increased dependency on imports, impacting food security.
    • Example: Some Gulf countries, due to limited arable land and water resources, heavily rely on food imports.

The diminishing significance of the agrarian economy has far-reaching impacts on various aspects of society and the economy. This transformation necessitates effective policies to ensure a smooth transition for the workforce and sustainable economic growth. Balancing industrialization, technological advancements, and rural development is essential to mitigate the challenges arising from the changing economic landscape.



POSTED ON 25-12-2023 BY ADMIN
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