Specifying those conditions under which low-income countries might
be able to achieve equitable growth and reduce mass poverty is a
major issue in development theory and policy. Given the
preponderant role of the agricultural sector as a source of income
and employment in the early stages of development, it is not
surprising that much of the theorizing about equitable growth is
concentrated on the relationship between agricultural growth and
poverty reduction. The adjacent Indian states of Punjab and Haryana
have been remarkably successful in achieving rapid agricultural
growth and in reducing significantly the proportion of the
population below the poverty line. The author uses the case of
Punjab-Haryana to test two competing theories of equitable growth:
the idea that a "sectoral shift" toward agriculture must be a key
component in planning and the converse approach that shifts in
agricultural policies, programs, and investments will be
ineffective in reducing poverty unless accompanied by a major
"structural shift" toward a more equal distribution of land and a
more broadly based control of the institutions supporting
agriculture. The experience of Punjab-Haryana generally suggests
that the rural bias of agricultural policies and programs despite
the absence of a structural shift in land ownership has reduced
rural poverty.
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