The interdependent development agriculture and other industries

Ungku Abdul Aziz, Ungku Abdul Hamid (1959) The interdependent development agriculture and other industries. Malayan Economic Review, IV (1). pp. 21-32.

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The basic problem of developing countries or backward countries always lies in poverty. To improve the standard of living in the developing countries, we need to eliminate poverty. Since the western colonization period in Malaysia, the poverty problem has been rooted in the society. The disintegration of traditional villages, the uneven distribution of income, monopoly system, neglected rural development, etc. are among the main problems of poverty. What are the causes of poverty? Without lacking cheap labours and land resources, the productivity in the agriculture sector is relatively low. Better seeds for crops plantation, tools, fertilizers and education for farm techniques are very much in need to improve the productivity. However, all these need working capital. Besides, farmers are being exploited in every possible way. Heavy rents, high-interest rates on debts, monopoly and monopsony system, all the terms of trade tend to be unfavorable to the farmers. No matter public facilities or educational system, the government tends to focus on urban development, rather than the rural area. The training and textbooks in the universities tend to focus more on the developed countries rather than tropical climate and plantations. There are many factors of low productivity in production and rural development. The rural labour is underemployed and works on a seasonal basis. Since western colonization, a majority of the labours have been racially specialized in different fields. This hindered them from moving from industries to industries. They are only exposed to very basic education and in an indigenous language. Besides labour, the farmers also being threatened by the effect of subdivision, fragmentation, extensive tenancy and preference for land as a form of investment. The agglomerator owners are only interested in high rent and tea money rather than the efficiency of the land. Hence the agrarian reforms are needed to solve the problem. And the main factor is the capital. This is the basic tool for exploitation. Farmers hesitated to get the loan or mobile money in order not to get trapped in the high-interest rate from the local money lender. Government’s support and assistance are very much in need to overcome this problem. We must realize that agriculture is the major occupation of the country. Other industries are practically non-existent. Government plays an important role in the backward country development. The economic development cannot be separated from agrarian reform and from revolutionary changes. The government must prioritize the phasing of the industries development and budget allocation of each industry in her national development plan.

Item Type: Article
Uncontrolled Keywords: Backward countries; Western colonization; Monopoly; Monopsony; Education; Low productivity; Exploitation
Subjects: H Social Sciences > H Social Sciences (General)
H Social Sciences > HC Economic History and Conditions
Divisions: University of Malaya Library > Ungku A. Aziz Collection
Depositing User: Ms Goh Yee Fang
Date Deposited: 29 Jul 2019 07:17
Last Modified: 29 Jul 2019 07:17

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