Policy Attention to the Productivity of Small Rural Farmers and to the Welfare of Rural Dwellers Is Absolutely Essential to Poverty Reduction, Low Levels of Inequality, and Improved Human Welfare, Essay Example

Rural areas have great potential, given their essentiality to the world economy. They are the centers of agriculture, which is the primary source of all the consumable products vital to humanity’s existence. However, scrutiny of these areas shows that most dwellers of the regions languish in poverty. Studies carried out in South Korea show that over 30% of the individuals living in the nation’s rural part are low-income earners (Minns, 2001 p. 1026). Similarly, high poverty levels engulf the countries in Sub-Saharan Africa, such as Botswana, and even nations like Venezuela and Indonesia. Further analysis of the rural dwellers’ situation shows gaping disparities in the income levels among the residents of the region (Timmer, 2018 p.3). Some of the rural areas’ occupants are high-income earners, while many dwellers live below the poverty line. The high poverty rates and the gaping inequality in the region is a significant cause of concern, worthy of investigation.

There is a need to instigate actionable steps that will exploit the high potential of the agricultural sector to reduce the poverty of rural dwellers and the inequalities that prevail in the region as a strategy that will help improve humanity’s welfare.  Therefore, enhancing the world economy depends upon putting in place efforts to strengthen rural dwellers’ interest by reducing poverty and inequalities with which they grapple (Hickey, 2010 p. 1139). The essay analyzes how agricultural advancements such as intensification of farming practices and increasing the industry’s sustainability aids in reducing poverty and inequality in rural dwellers. It also scrutinizes how fostering policy options that promote the agricultural sector’s profitability would increase the income earned by rural dwellers, hence improving humanity’s welfare, focusing on Venezuela, South Korea, Botswana, and Indonesia.

Need for Intensification of Agricultural Practices

Lack of adequate capital to procure agricultural inputs such as quality seeds, fertilizers, and animal feeds is a significant derailment contributing to the high poverty levels and income inequalities in the rural areas. The affluent rural dwellers, who are a small percentage of those living in the rural areas, can afford the necessary farm implements hence engage in intensive agricultural practices and reap maximum profits from the industry (Acemoglu et al., 2002 p. 87). However, those who are economically disadvantaged cannot afford the necessary inputs. They use alternative products that are of low quality; hence, they cannot produce abundant yields. For instance, in South Korea, individuals are clustered into social classes depending on their economic capacity.  Scrutiny of the agricultural industry’s performance in the country shows that the upper-class citizens can access capital through loans from financial institutions that they use to carry out extensive farming (Buxton, 2019 p. 6). On the other hand, the low-class citizens depend on the meager earnings they get from doing menial tasks in the affluent farms to sustain them. Therefore, the lack of financial aid for the poor is a significant impediment that causes the inequalities experienced in rural areas.

Lack of access to adequate technological practices, equipment, and sufficient land for use in agricultural engagements is another vital aspect contributing to the region’s high poverty levels and inequalities. The use of advanced technological equipment like machinery for plowing the fields, harvesters, and sprayers helps enhance the workflow’s pace and efficiency in the farmlands (Timmer, 2018 p. 6). However, most rural dwellers are low-income earners who cannot afford sophisticated devices to use in their farms or invest in advanced agricultural practices. For instance, in Venezuela, many rural residents engage in outdated agrarian practices such as hand plowing that are not as efficient as the industry’s current trends (Buxton, 2019 p. 12). On the other hand, wealthy farmers use modern techniques to engage in large scale farming and earn massive profits. Therefore, the unequal distribution of essential assets, such as technological equipment, impacts rural areas’ productivity.

Policy Options for eradicating Poverty in Rural Areas by Improving Agricultural Productivity

There is a need to instigate policies that would help bridge the gaps between the affluent and the poor in the rural areas. The step will reduce the region’s poverty levels by providing adequate support to the low-income earners who practice small scale farming (MacIntyre, 2003 p. 122). The policies should aim to increase rural incomes by improving agricultural production levels, solicit for an increase in the resources designated for agricultural production, and transform the pricing levels of farm products and their consumption levels. They should also foster the production of high-quality yields.

Rural Infrastructure

Enforcing policies that focus on improving the rural areas’ infrastructure is essential in eradicating poverty in rural areas.  The process consists of building new roads, repairing damaged ones, and maintaining them in an excellent state. Availability of excellent infrastructure such as roads enables farmers to easily access the markets (Acemoglu et al., 2002 p. 32). It connects the remote areas to those with a denser population, which has a broader consumer base. They can transport farm outputs to different markets and get a higher profit margin. Subsequently, good transportation networks reduce the time the products take before reaching consumers. As a result, the chances of farmers incurring losses through damage to the perishable agricultural products reduce significantly. The strategy has been vital to the reduction in poverty levels among the rural dwellers in Botswana. The region’s governing authorities embarked on creating an excellent road network that has enabled the farmers, tiny scale investors in the industry to access the market, hence increasing their income levels (Acemoglu et al., 33). As a result, the poverty levels and income inequalities in the region have declined significantly.

Advocating for policies that aim to improve rural infrastructure also reduces agricultural production costs, hence increasing the venture’s profitability. When there is a good road network in the region, the expenses incurred while transporting farm supplies reduces significantly, reducing the cost of engaging in agricultural practices (Timmer, 2018 p. 8). Similarly, the cost of delivering farm outputs to consumers is also low; thus, the farmers earn higher profits from their sales. The strategy would be useful in South Korea, where the lack of adequate road networks in the rural areas is a significant deterrent to agrarian excellence (Minns, 2001 p. 1030). The country is experiencing a crisis due to the gradual decline of economic developments that have impacted infrastructural expansion and decreased agricultural profitability, hence inflating the rural areas’ poverty levels.

Fostering the installation of infrastructure in rural areas also improves the well-being of the rural regions’ residents by accessing essential services such as educational institutions and healthcare facilities. As a result, the young ones in the rural area acquire an education that enables them to receive the skills and accreditation needed to secure lucrative, well-paying employment opportunities and improve their families’ circumstances (Hickey, 2010 p. 1145). They also gain the knowledge they need to engage in advanced farming practices that produce higher yields and are therefore more profitable. Subsequently, individuals can access medical institutions and receive treatment when sick, hence increasing their productivity levels.

Advancing the Human Capital for the Rural Sector

The use of acceptable farming practices is essential to improving the welfare of rural dwellers. The policies that promote the utilization of sophisticated skills in agrarian ventures are vital to enhancing humanity’s well-being. It is necessary to advocate for initiatives such as putting in place programs for training rural farmers on advanced agricultural practices that produce higher yields. Timmer (2018) also emphasized the need for availing extension services in the rural region (p. 11). The extension officers can assist farmers by enlightening them on the best farming practices to use in different agricultural projects and how to exploit their farms fully to improve their economic situation (MacIntyre, 2003 p. 127). The strategy would help a country like Indonesia grappling with economic downturns to exploit its natural resources to eradicate poverty in the rural region and increase its food reserves.

Investing in Agricultural Research and Technological Developments

Policies that support investing in investigative studies to bring to light new farming systems that are more productive and profitable are necessary to eradicate poverty and gaping inequalities in rural areas. Governing bodies should allocate more funds towards beneficial programs such as researches on new farming methods. The strategy can help Venezuela, which is grappling with economic difficulties due to a reduction in its oil reserve, which was its main income generator (Buxton, 2019 p. 6). The governing authority can help the citizens exploit the vast lands by investing in agricultural research and technological developments that will impact the country’s economy and avoid reliance on a single income earner. Similarly, the Suharto regime present in Indonesia has identified poverty reduction in rural areas as an effective strategy in improving the country’s economy (MacIntyre, 2003 p. 132). One of the notable prospects geared towards achieving the goal is engaging in research and sophisticated equipment while farming.

Review of the Pricing of Agricultural Products

There is a need to install policies that raise the prices of selling agricultural products to obtain higher profits from their products and improve their economic stature. Firstly, the goal can be achieved by requiring governing authorities to reduce the taxes levied on agricultural products to increase the farmers’ profit margins (Timmer, 2018 p. 16). The high income that the farmers earn from the products will increase their expendable income, hence improving the rural areas’ financial situation. Policies that strive to restrict the importation of agricultural products from other countries should also be put in place. The strategy includes imposing high taxes on products sourced from other nations to discourage entrepreneurs from importing the products. It is necessary to limit the outsourcing of the agricultural outputs because it leads to an overwhelming supply of the products in the market (Minns, 2001 p. 1032). As a result, the agricultural products’ supply exceeds their demand; hence, their prices fall drastically, reducing the farmers’ profit levels.

Restriction of importation of farm products is one tactic that has helped reduce poverty levels and income inequalities in Botswana. The country enjoys good relationships with other countries and engages in many business deals with them. However, the government discourages an influx of farm products from entering the country by imposing high taxes on such products (Acemoglu et al., 2002 p. 93). As a result, only locally produced agricultural products are sold in the market, increasing the rural dwellers’ earnings, boosting the country’s economy. The strategy has enhanced agricultural practices as a source of food reserves for the country and an income earner for the rural residents.

Reducing the Risks Involved and Increasing the Stability of Farming

Policies should intervene to reduce the risk of exposure to natural calamities and the impact of such occurrences on rural dwellers. Governments should protect its rural dwellers who depend on agriculture by putting in place measures that prevent natural disasters such as floods, pest invasions, outbreaks of fire, and droughts (Timmer, 2018 p. 18). Some of the actionable steps that governing authorities can instigate include shielding the farmlands by constructing levee banks or creating fire breaks to prevent the spread of fires.  Subsequently, sophisticated equipment should detect looming disasters early and warn farmers early and leverage their losses. The governing authorities also put in place policies that outline the steps it will take after disasters to limit their impact on the rural dwellers. For example, the authorities can provide the farmers with seeds or seedlings to plant to replace the crops damaged during disasters such as pest invasions.

Direct Government Involvement in Agricultural Activities

Policies should be put in place, which requires the governing authorities to be involved directly in the agricultural sector.  It entails setting up an agency that primarily handles agrarian issues, ensuring that the farmers have quality inputs such as seeds and seedlings, fertilizers, and animal breeds. They should also provide credit facilities to all farmers to ensure that they have adequate capital to invest in intensive farming. Further, government officials should be actively involved in marketing agricultural products to increase the local and global market base (Acemoglu et al., 2002 p. 98). Further, the government should also put in place policies that promote the creation of industries to process farm products. The manufacturing plants would be vital in creating employment opportunities in rural areas, reducing the poverty levels of those who live in the area.

Conclusion

High poverty levels and income inequalities prevail in rural areas even though the region is the center of agriculture, one of the primary contributors to the world economy. Statistical evidence derived from studying agricultural production in South Korea, Venezuela, Indonesia, and Botswana shows a need to intensify farming practices. It is necessary to resolve the industry’s current issues, such as lack of capital, especially among the low-income earners dwelling in rural areas. There is also a need for access to sophisticated technological equipment to engage in competent farming. Therefore, policies should focus on increasing small rural farmers’ productivity to reduce their poverty levels and reduce inequalities in the areas.

The policy options that can successfully improve the rural dwellers’ circumstances include installing policies that support infrastructure enhancement. It also includes advancing human capital through adequate training. Further, it includes investing in investigative research to deduce better farming practices and reviewing the agricultural products’ prices of farm products to increase the venture’s profitability levels. Also, governing authorities should be involved extensively in the industry, and strategies for mitigating risks to the sector should be deployed. The steps would help increase the profitability of agriculture, hence lowering the rural dwellers’ poverty levels. It is also useful in increasing the country’s food supply and the available employment opportunities, therefore improving humanity’s welfare.

References

Acemoglu, D., Johnson, S. and Robinson, J.A., 2002. An African success story: Botswana.

Buxton, J., 2019. Continuity and change in Venezuela’s Bolivarian Revolution. Third World Quarterly, pp.1-17.

Hickey, S., 2010. The government of chronic poverty: from exclusion to citizenship?. The journal of development studies, 46(7), pp.1139-1155.

MacIntyre, A., 2003. Indonesia as a Poorly Performing State?. Australian National University. Processed.

Minns, J., 2001. Of miracles and models: the rise and decline of the developmental state in South Korea. Third World Quarterly, 22(6), pp.1025-1043.

Timmer, C.P., 2018. Pro-poor growth in Indonesia: Challenging the pessimism of Myrdal’s Asian Drama (No. 2018/103). WIDER Working Paper.