THE ORGANIZATION AND: ECONOMICSOF ’ * AGRICULTURAL RESEARCH IN THEWEST- INDIES: f E STRATEGY IMPLICATIONS FOR THE 1970's .- ' Thesis for the Degree eI Ph. D." MICHIGAN STATE UNIVERSITY. , TCARLTON GEORGE DAVIS 'x ' 1970".“_ ‘ ESIS This is to certifg that the thesis entitled THE ORGANIZATION AND ECONOMICS OF AGRICULTURAL RESEARCH IN THE WEST INDIES: STRATEGY IMPLICATIONS FOR THE 1970's presented bg Carlton George Davis has been accepted towards fulfillment of the requirements for Ph.D. degree in Agricultural Economics Malzpj‘asor Date 0-169 I ’0‘ r t» v""‘J‘—.AA. “ T" "e" maze, IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII I f? e I. 3 1293 1 vlt;¢-1-iJ€£’dC€ . mUi‘TéversiW l W A I Emma?“ 2N mg i AB :5 Immm AND WAKE IS THE "‘ mum 10: Carltr’ e... m A. ‘. ‘ n:v~‘" ~ IV. V" I. ‘ ‘1 ‘ v. y‘u.‘-- ~ I .. “H..." t. _R““.-fl :ezeraze: - ‘ a ,. ,‘.-. “y - «‘g. -- mm" . n. \.. \.:_ t e u ~E:‘ M. .. .: :T-z‘ ‘ . «“1 ABSTRACT THE ORGANIZATION AND ECONOMICS OF AGRICULTURAL RESEARCH IN THE WEST INDIES: STRATEGY IMPLICATIONS FOR THE l970'S BY Carlton George Davis The West Indies, like many less developed areas, is seddmg ways of capturing the benefits of increased agricul— Umalpmoductivity generated by recent agriculture research mm mamlopment. The region, however, faces major problems inthearea of building indigenous agricultural research syfi3ms,since (l) the inputs generated by the ”green revo— lflfiom'are not adaptable to the lowland, humid tropics, (2)domestic research on root crops and starch vegetables lasbeaigenerally unproductive to date, (3) the future of thetraditional agricultural exports (particularly sugar and bmmnas)is extremely uncertain, since the region now faces thepotmnfial loss of the protected United Kingdom market if Bfitanienters the European Economic Community, (4) the ex-~ pmflence of the region over the last two decades demonstrated Umtit is possible to have a relatively rapid rate of growth OfGDP without Significant transformation of the structure fieeazrg, IS‘I balance 5'1qu {nod ilports and ( 35 M the chronic pro): W Will be alleviate 32.331 tourist sectors. fne Study (a) descr; limp. , m. If research :p.; \1 P 5-“! N II .. u. c 3»; ' “Va u~ c .A‘_ ‘ H". w . "s. Q y . .-...‘_ ~_:e ‘h ‘\‘ :~:; \ “ ' ‘trfiz‘ ‘HIQ \ ' \, an I\‘~ "i l" it» \\ ~ . ‘¥ET~ ‘: Carlton George Davis of the economy, (5) balance of payments problems as a result of rising food imports and (6) realization that it is un- likely that the chronic problems of unemployment and under— employment will be alleviated by growth in the manufacturing, mining, and tourist sectors. The study (a) describes the present agricultural re— search system, (b) analyzes the performance of the peasant research system, and (c) makes recommendations to improve the administration of research and determining research prior- ities in the 1970's. Data used in assessing the organiza— tional and input structure of agricultural research were collected in the West Indies in 1968—69. Data for crop fer— tilizer response were obtained from experimental records of the various research organizations. Only 7 percent of the research organizations covered in the survey were engaged in fundamental research. Existing fundamental research is confined to two export crops——sugar cane and cocoa. About half of the research organizations were engaged in research on a single export crop (sugar cane, bananas, citrus, coconut, and cocoa). The remaining 50 per— cent were engaged in research on hundreds of root crops, grain legumes, cereals, and vegetables. The West Indies was Spending 1.6 percent of the value of its agricultural output Tim igfiwnural resei fluent 12 qmstioned 3w. (Elastic agricul 3—; research activities rides for undertaking d aperirental researc Ca released 23-. expat: 33ml: yield differem 7"“: “‘ 5‘ n !‘ <-~..".lllza.-.C.., \I ~=..=_; ~ ' ‘ . as greases. penis, \v- . ‘ I u ‘5 ‘ Ham. fin , A \ w ‘Mhrfi ‘11 .63....“ Cu ' u \ \ “w- 9. ~. n. we bes: avazla ‘ I v \I a” r s Amt .23: results \-'= u" e \ ‘~ ~y A;-' u “N: ~~a«;~lCT‘.3L : Lie Tarieties X331 n . ~..‘¢" Q» ~ ~ ‘* «Three Cc" I ‘ £3“? .1. - .‘ue ine :ac. \- .. '~ 13 CM; ~ i‘ v- . ' \4\.\‘ «eaglre..e \S m «I. M‘ l «: a‘wn ‘_ « H(e ex . \-k \- \K“ x. u; ‘ ”(H n \r- “M. Q r . ‘n an? «t r~€$ {:y; u; \xu‘ ‘C'cavw “ \« i 3‘ ‘ ‘ \ . ~ ‘5‘. “3» W“ Carlton George Davis in 1968 on agricultural research. However, this rate of ex— penditure must be questioned in light of the poor perform— ance of the domestic agriculture sector, lack of emphasis on domestic research activities, and the shortage of physical facilities for undertaking domestic agricultural research. Experimental research results indicate that (l) crop varieties released by experimental stations displayed rela— tively small yield differential under N—P—K treatment as against no fertilization, (2) although some recommended crOp varieties increased yields, it was unprofitable for many farmers to adopt the recommended practices, (3) experimental results for the best available technology were not signifi— cantly better than results attained by the better peasant farmers using traditional technology and (4) the only crop varieties that appear to represent improved inputs are the hybrid maize varieties X304 and X306 develOped by the pri— vate Pioneer Hi—Bred Corn Company in Jamaica. DeSpite the fact that the West Indies imports 40 per— cent of its food requirements, domestic effective demand for food is low, relative to the cost of producing local foods. Rising food imports represent an expansion in consumption of Cheaper food imports as a result of price differentials rather than expansion in per capita effective demand. r- a 12:7. of effective :‘11910'5 if agriculture :5. Technological innova crusts to levels bel< :31 ill! izpcrted food as Asia effective 33:519. had: C5 2. “u- n—n . . "~ 23:: 5:5: “N ‘ . N ,1 ~-..,., 1-£A-r .u“‘ \L \1-‘:-‘ ‘ “»~~ \ “- :“c ~«_-- I “ y \ vg. .. _ u- \.'.,._ .-.. ‘ “n 2.: ~.,. ‘ n on .~ u-‘\. -\ . Nx ~\. “I \ v... L"\e.l_?': -e Carlton George Davis Hmmver,a.lack of effective demand will not be a constraint inthe 1970's if agricultural researdh reduces production amts. Technological innovations that reduce domestic pro— mmtflx1costs to levels below imports can (1) redirect con— mmpthx1from imported food to domestic food items and (2) emnndfmr capita effective demand by placing productive remnuces in the hands of a large segment of the pOpulation. Two major strategies are recommended for improving amflcultural research in the West Indies in the 1970's. Stmmegy]_research would concentrate generating a stream of bkmhaflcal innovations that would substitute for land. This smmtegy is based on the observation that domestic agricul— UHe flums a land constraint. Under Strategy 1 we advocate high priority be given to (l) livestock research, (2) cereal refimrch,(3) fruits and vegetables, and (4) root crops. Strategy 2 suggests that research activities in ex— POflzagriculture concentrate on generating a stream of bio— Hedmnical innovations over the 1970's. This type of inno— vahbn is needed to reduce the high labor cost of export ag— rimflture to enable export agriculture to become competitive onthe world market. Under Strategy 2 we suggest that high prkmity be given to (l) a sugar cane research system, and (2)a banana research system. mommnox MI RESEARCH IS THE L‘EPLICAT I' W I“ #\\i As Jena \VQV‘k . \. em- - x . c x THE ORGANIZATION AND ECONOMICS OF AGRICULTURAL RESEARCH IN THE WEST INDIES: STRATEGY IMPLICATIONS FOR THE 1970's By Carlton George Davis A THESIS Submitted to Michigan State University in partial fulfillment of the requirements for the degree of DOCTOR OF PHILOSOPHY Department of Agricultural Economics 1970 ACK! Igntefully acknot 5.. mashed me in my doc """I' w . an ~:- Special acknc isn‘t-z sewed as P" m ”I - -~‘1!. Els oatience, k: 7'” 5m- -. ‘ ‘ ‘ A v w are “cl: : “are “n-‘ a s ‘ -' “”7'1 Iva. n. .. N' ‘r ‘ ' awaken» T.‘ ~- ~::"' \.,:~ 5- ' ‘ . ~ .;6 1:5.3": ‘. u-.. -. R. . a. " w- e.“ . .‘ ‘ ‘~e..ce L_ 5 -\.. ‘_ m‘: .' ~ . .... 3...: 3‘3""3' .. ““~ . K ~~ :..,. W. ‘ H~ . a.“ «nu L: . .. "is \‘ \~ ~“v. ‘~~Q._"au. A; ‘ ‘ my“; \. ~~y-. ‘ u. -. \‘I‘i‘ m I~..\‘Ndu R; “h ‘ u k‘ - gm: ‘. u 2.5: ‘V\‘~‘ ' ‘ Emacs; - I . TENTH“. "a, «same ~ u- . ... “ In; "\ \‘Nfi‘ X .. . .n R.Ly~i\\ “h . r I ...: 2:; .- ‘ r \. \L ‘ . A . ‘ m". 3:». Q - -‘_ .“n. K~q“ \ . ‘-.~ A: e e - . .. “ ~..e M, ~.._ .1 I- We; " ’7 _ OW ACKNOWLEDGMENTS I gratefully acknowledge the many persons who have assisted me in my doctoral program at Michigan State University. Special acknowledgment goes to Dr. Glenn L. Johnson who served as my major professor and thesis advisor. His patience, kindness, and intellectual stim- ulus has done much to develop my professional career. Special acknowledgment must also go to Dr. Carl Eicher who served as a member of my thesis committee and pro— vided valuable insights into many problem areas. Dr. Lawrence L. Boger, Dean of the College of Agriculture and Natural Resources provided financial assistance during that period when he served as Chairman of the Department of Agricultural Economics. Dr. Dale E. Hathaway, Chairman of the Department of Agricultural Economics also provided financial support for my program. Acknowledgment is extended to the Ford Foundation (Caribbean Program), the Institute of International Agri— culture of Michigan State University, and the Faculty of Agriculture of the University of the West Indies for ii 3.113; Wong financii um. special acknwledg 27:1. Edwards, Head, De 1: ad Par: mragerent '4" n - u ' «a. TC smen'isee 2‘ h I o .ez mice. In a: ‘t' M C. u .' v ..e tan: gnaate u... .4. 'u\ r ”WNW“. . In“ , ' ‘w ecu/c.3e \ "‘ ‘ L.‘~.. _ . . . -~:.._e';-~~ ~.. ....... ~_~-— -.. .\.,_ - :‘1... \"“::-5. hi": " ' . - -.., 552a?” '- _ v“; ... Ry- ~ - at: nun. . .... .. \a..\: a“ (1. providing generous financial and logistic support for field work. Special acknowledgment must go to Professor David T. Edwards, Head, Department of Agricultural Eco— nomics and Farm Management of the University of the West Indies, who supervised my research while I was located in the West Indies. In addition, special recognition is given to the many private and government officials in the West Indies who cooperated in the study. Mrs. Nita Campbell and Mrs. Jeannette Barbour Were most helpful in typing and editing earlier drafts of this thesis. My wife, Sarah, however, was the necessary condi— tion for undertaking and completing my doctoral program. f TABLE pressure 5 u». 39 Gehaval . ‘ - ~ : ‘ x: e" l'\es C‘ \- R ‘ ~ - {-ccleza- ‘ t s. _ .. ~ '2. _ - u... 0‘ 33.x . mns~‘~—..~ _ ~ ' . . ' ..‘ A “Warn it: I Tamer“ The... \~-. .M‘ KN.“ ‘ d L ‘ ...e P:\S«Ca \. h‘\ I“‘\ N ...‘ :- :-.. “.ut .ecwre \ ‘NAH ~\\.u::“: C‘“ TABLE OF CONTENTS Page ACMNWEEDGMENTS. . . . . . . . . . . . . . . . . . . ii LIST OF TABLES . . . . . . . . . . . . . . . . . . . X IJST OF ILLUSTRATIONS. . . . . . . . . . . . . . . . xiv PART I Chapter I. THE PROBLEMATIC SITUATION. . . . . . . . . . l The General Situation . . 1 The General West Indian Situation With ReSpect to Agricultural Technology and Research. . . . . . . . . 7 Objectives of the Study Relative to the Problematic Situation. . . . . . . . . . 15 Plan of Work . . . . . . . . . . . . . . . 17 II. CHARACTERISTICS OF THE WEST INDIAN ECONOMY . 20 General Overview . . . . . . . . . . . . . 20 The Physical Setting. . . . . . . , 20 The General Economic Structure. . . . , 23 Unique Features of the General Economy . . 38 Economic Growth Without Development . . 38 iv swarms (cont.) ’:-:r s... the 11de of on Develop Unique Features Economy. . . . Iand Tenure a Plantation-- Coexisten: c Sher: ge a: Sheltered 51:. " Pillar nSCE AX}; C ‘R 7 q.- :eRrC’CL. cRI-KL S: I “Areas -. . ‘- MA. ~V fi:c ,. We . na-, “we: MC“ ‘ I“ (- U \ ““3 n”'~...‘_ ~~-~\‘I “V: "“~\- r... ‘ -“-~.._;:u. -, CA - . “A ‘ L..I:,\’S‘~;A“ :. «.fi ”tSPK: -C . .N e New» “N ~-_ 1 “M. . . .. .1 aw TANEIOF CONTENTS (cont.) Chapter The Impact of Enclaves and Openness on Development. . . . . . . . . . . . Unique Features of the Agricultural Economy. . . . . . . . . . . . . . . . . Land Tenure and Land Use Patterns . . . Plantation——Peasant Dichotomy . . . . . Coexistence of Agricultural Labor Shortage With Overall Unemployment. . Sheltered High Cost Export Agriculture. Summary and Implications for Agricultural Research. . . . . . . . . . PART II III. PERFORMANCE AND COMPOSITION OF THE AGRICULTURAL SECTOR. . . . . . . . . . . . Approach to Assessing Performance and Composition. . . . . . . . . . . . . . The Agricultural Sector in General . . . . Evolution of the Sector . . . . . . . Composition and Contribution of the Sector to Output. . . . . . . . . . . Contribution of the Sector to Economic Growth. . . . . . . . . . . . . . . Contribution of the Sector to Employment and Income Distribution. . . . . . . . . Contribution of Agriculture to Food Requirements. . . . . . . . . . . . . The Agricultural Sub-sectors . . . . . . . The Export Sector: Changes in Compo— Sition and Relative Contribution. . . Page 51 59 59 62 67 71 73 77 77 78 78 81 87 88 95 97 97 Eel I 4'. m mstic msition Contributio sunrymn summer. RESm EST IDES. 193 9133531055 . Seed fer Assess: bta Colleczict‘. he Organ; a: :c: Classificaucr Longevzty. . he Crientatmr. ‘ ‘ ~v. ... a."- Ag.1yul-u-a$ AL. ~> ..... vu'eceiuts C .. N; 1 ‘7 — I. insane" .3 ; 5:99;. . ......-. Per: L‘s-A «. .aLSL‘ece . . . "VI 5 I n kc..S.l‘d-.". .5 Research F TABLE OF CONTENTS (cont.) Chapter IV. Page The Domestic Sector: Changes in Composition and Relative Contribution. . . . . . . . . . . . . 102 Summary. . . . . . . . . . . . . . . . . . 115 AGRICULTURAL RESEARCH INFRASTRUCTURE IN THE WEST INDIES, 1930—1968: EMPIRICAL DIMENSIONS . . . . . . . . . . . . . . . . 118 Need for Assessment of the Infrastructure. 118 Data Collection, Scope, and Limitations. . 120 The Organization of Agricultural Research: Classification, Concentration and Longevity. . . . . . . . . . . 124 The Orientation and Subject Matter of Agricultural Research. . . . . . . . . . 139 Objectives of Research. . . . . . . . . 139 Fundamental and Adaptive Research . . . 142 Benefit Perception: Retrospect and Prospect. . . . . . . . . . . . 147 Constraints on Implementation of Research Results. . . . . . . . . . , 153 The Input Volume of Agricultural Research. 157 The Manpower Component of Research. . . 157 Research Scientists . . . . . . . 158 Research Technicians and Supporting Personnel . . . . . . . . . . . . . 167 Expenditure Component of Research . . . 170 Summary and Conclusions. . . . . . . . . . 177 V. THE PERFORMANCE OF WEST INDIAN AGRICUL— TURAL RESEARCH SYSTEMS: EMPIRICAL DIMENSIONS OF FIRST GENERATION PROBLEMS. . 184 General Background to First Generation Problems . . . . . . . . . . . . . . . 184 vi EEO? cows (cont.) 'vrm mined Dinens Productivity G aperience . . technical Asp Experience . Economic Aspe Experience. Fertilizer Re sp: Domestic :ri: 31156228 The Nature 2 . D 'v w. ”PCT-Se C.r.-:-s :kpermenza; ‘I‘,~ - ...9 Jara;ca— "v- H . lt-".aac ‘ ML :7 ._ -‘-\ 4A,. ..- M “t »t a; 4i, n,‘ u~t TABLE OF CONTENTS (cont.) dmpter Page Empirical Dimensions of Agricultural Productivity Gains: The International Experience . . . . . . . . . . . . . . . 194 Technical Aspects of the International Experience. . . . . . . . . . 194 Economic Aspects of the International Experience. . . . . . . . . . . . . . 206 Fertilizer Response Curves in West Indian Domestic Agriculture: The Empirical Evidence . . . . . . . . . . . . . . . . 212 The Nature of Yields in the Region. . . 212 Response Curves for Local Food Crops in Experimental Research. . . . . . . . . . 215 The Jamaican Situation. . . . . . . . 216 The Trinidad and Tobago Situation . . . 223 The Eastern Caribbean Situation . . . . 235 General Conclusion on Domestic Agriculture Research Response Curves . . . . . . . . 238 Fertilizer Response Curves in West Indian Export Agriculture: The Empirical Evidence . . . . . . . . . . . . . . . . 241 The Nature of Yields in the Region: The Case of Sugar Cane and Bananas. . 241 Response Curves for Sugar Cane and Bananas . . . . . . . . . . . . . . . 244 Summary. . . . . . . . . . . . . . . . . . 254 PART III VI. AGRICULTURAL RESEARCH PRIORITIES AND STRAT— EGIES IN THE 1970's: POTENTIAL SECOND AND THIRD GENERATION PROBLEMS. . . . . . . 261 vii namms (amt) #3 Introduction . . Strategies and P and Import 59! fitter . . . . Subject Matte Cumdity Res Strategies Consequences of . . _,. Second ans 1:: a. F..- Pu. "Hal 331 an " n o ' u. :chl’. I .. . VH1 r "o ‘ \IuUEL Cara ’1AH «u “ nuns I-‘_"“ . Pcteztal De . \-\ .M‘An. .' n . . \i ~. ‘~\ “‘3“ \ [J .(J TABLE OF CONTENTS (cont.) Chapter Page 1" Introduction . . . . . . . . . . . . . 261 Strategies and Priorities for Domestic and Export Agriculture Research Subject— Matter . . . . . . . . . . . . . . . . . 284 Subject Matter Strategies . . . . . . . 284 Commodity Research Systems Under Strategies 1 and 2. . . . . . . . . . 288 Consequences of Strategies 1 and 2 for Second and Third Generation Problems . . 292 Potential Demand and Income Situation in Export Agriculture Over the 1970's Under Strategy 2: Some Considera— tions with Respect to Sugar and Bananas . . . . . . . . . . . . . . . 293 Potential Demand and Income Situation in Domestic Agriculture Over the 1970's Under Strategy 1: Some Considerations. . . . . . . . . . . . 300 Potential Changes in Employment and Nutrition Situation Under Strategies 1 and 2 . . . . . . . . . . . . . . 307 Summary. . . . . . . . . 315 VII. TOWARDS A PROGRAM FOR IMPROVING THE ORGANIZATION AND ADMINISTRATION OF WEST INDIAN AGRICULTURAL RESEARCH IN THE 1970's . . . . . . . . . . . . . . . . . . 325 Current Bottlenecks in West Indian Re— search Organization and Administration . 325 Improving the Regional Organization and Management of Agricultural Research. . . 335 Steps in Improving the Administration of Agricultural Research. . . . . 340 Improving the Administration of Domestic—EXport Research Programs . . 341 Proposed Regional Administrative Programs. . . . . . . . . . . . . . . 347 viii memos (cont.) J r: Suzy ..... E. m1, CWCLUSIO Smry and Conc Remndaticns. REES. . . , , VIII. Summary. NTENTS (cont.) Summary and Conclusions. Recommendations. APPENDICES . BIBLIOGRAITEK . ix SUMMARY, CONCLUSIONS, AND RECOMMENDATIONS. Page 357 360 360 379 394 473 LIS Listed Panzer; ‘ V :::s, Selectec I A . , 1 a .n... :-......~ r,“ “4 mg: 5-4.“...3- r- \- Arrgal Ra: ‘ \ .. v. , - ' than: n ‘-~~ . \ AF57 7C usher kt“..- 1...... ,. mug“ Table 22 2.4 L7 2.8 2.9 2.10 2.11 LIST OF TABLES Estimated Rainfall and Irrigation Require— ments, Selected West Indian Countries Gross National Product Per Capita (1969), POpulation, and Average Annual Rates (1961—67) for Selected Western Hemisphere Countries . . . . . . . . . . . . . . Average Annual Rate of Growth in GDP for the West Indies For Selected Time Periods Proportional Contribution to GDP by Industrial Origin, West Indies 1961 Distribution of Population Between Urban and Rural Areas, West Indies, 1960. Area, Population and Population Density, West Indies, 1960 . . . GDP of the Manufacturing Sector, Jamaica, 1963 (Current Dollars). . . GDP of the Manufacturing Sector, Trinidad and Tobago, 1957 to 1962 (Current Dollars). Cost Coefficients of Input Structures, Trinidad and Tobago, 1962 . . . . Relative Openness of West Indian Economies, 1961 (Current Prices) . Disposition of Capital Formation as Reflec— tion of Degree of Openness of West Indian Economies Page 21 27 3l 33 36 39 44 45 49 53 55 ESE TALES (cont.) 112 nisposition of 631’. Per Capita, West L13 Prwortion of Total Size Category, We 1961. . . . . . . '.'. Use of Pan: land ’2: Sizes, West Indy ".5 limitation cf ”in 1'. Cremation cf gr Mics, 1961. o ”I “ . . u r-r; m... N ’ \ -~u.-\,h C: “C -. .. “‘ -.-. 5 “We .c can, Vb-L‘ :16 Sam/w, ‘ 3;: .M ~ ~ «we: ‘. . ‘ - * ~44 Cave}. . e-¥_._ : - v . "‘5; “-n ‘ “MES 1: I «1 n ‘ Kn 2““: Q" 4: .. '\ x .. 1 n4. ‘ A ve“ 4“ . _ ‘he ‘ fi-‘L‘ ‘ I ‘\~: . .\‘ A “ U‘ .. .Cps "ES \ a. \e- _ K e. 5 ~ ‘ ‘ \‘ -\\,‘ ‘ ‘\\\4 a. #e’v.‘ . ‘~ ‘V‘v \L\. . “1 fie:- \ ‘\ an“, «.33: \_ 5 .‘ ~\ ‘ .‘— \\ . ‘ \‘52c. u a \ .N _ ~ n“ ‘:~ts LIST OF TABLES (cont.) Table 2.12 Page Disposition of GNP, GDP, and National Income Per Capita, West Indies, 1960—1962. . . . . 57 Proportion of Total Number of Farms in Each Size Category, West Indies, 1957—58 and 1961. . . . . . . . . . . . . . . . . . . . 61 Use of Farm Land by Farms of Different Sizes, West Indies, 1956 and 1961 . . . . . 63 Distribution of Unemployment, Jamaica, 1960 . 68 Composition of Agricultural Output, West Indies, 1961. . . . . . . . . . . . . . . . 82 Contribution of Agriculture, Forestry, and Fishing to GDP, and the Rate of Growth of the Sector, 1955—1965 . . . . . . . . . . . 85 Employment and Production by Sector, Trin— idad and Tobago, 1955 and 1966. . . . . . . 9O Contribution of Major Agricultural Exports to Total Agricultural Exports and Total Exports, West Indies 1955 and 1962. . . . . 98 Relative Rates of Growth of the Agricultural Sector and The Export Agriculture Sub— sector, West Indies, 1955—1965. . . . . . . 101 Changes in Cereal and Root Crop Acreage, West Indies, 1946—1961. . . . . . . . . . . 104 Proportion of Various Cereal and Root CrOp'S Acreage to Total Acreage of Cereal and Root Crops, West Indies, 1946—1961. . . . . 107 Import of Food and Animal Products by Territory, West Indies, 1966. . . . . . . , 113 Ranking of Research Objectives by Organiza— tional Types, West Indies, 1968 . . . . . . 140 xi 33g TABLES (cont.) I} W of Rational W15, Organiz Indies, 1968. . - Ll Ranking of Major C‘ of Research Findi ParnLevels by 01 Indies, 1968. . :1 Disposition of Man} Ctzzcdity Crzent.‘ : 21.1.51 and Recurr Research, West I I 3“‘ - name-T. of Prcnc Lanai fined“ . -. “.96 ‘ n' ACES ~“ . ‘ “23.12:, ‘19:!" 13 -. $5,: ‘a .... usmzse .1 . . :~ — . Mk»: C: :Fe 5 ~._ ‘1‘ p 1 ““ha Rs. - . c. ’. K . . ,3. ..-. «1.. . “5M: ~~ v“. :‘e- c. R kegs Pep “n. ,. Nut-E" L. n . ‘ . _—5v;~ «.R “-H .33: ‘ o . . . . E a- “Q. 1: ~: .. . u k3. V .. A Jr .. ‘ y LIST OF TABLES (cont.) Table Page 4.2 Ranking of Rationale for Current Research Emphasis, Organizational Types, West Indies, 1968. . . . . . . . . . . . . . . . 143 4.3 Ranking of Major Constraints to Application of Research Findings at the Industry and Farm Levels by Organizational Types, West Indies, 1968. . . . . . . . . . . . . . . . 154 4.4 DiSposition of Manpower According to Commodity Orientation, West Indies, 1968. . 169 4.5 Capital and Recurrent Expenditure on Research, West Indies, 1968 . . . . . . . . 173 5.1 Breakdown of Proposed Major Annual Average Capital Expenditure in Agriculture for Three Major Long—Term Development Plans, Jamaica, 1947-1968. . . . . . . . . . . . . 191 5.2 Yield Response to Nitrogen Input by Rice Varieties, East Pakistan and Japan. . . . . 199 5.3 Estimates of the Social Rates of Return in Agricultural Research . . . . . . . . . . . 208 5.4 Breakdown of Mechanized Maize (X304) Produc— tion Costs Per Acre in Irrigated Lands, Pioneer Hi—Bred Corn Company, Jamaica, 1968. . . . . . . . . . . . . . . . . . . . 211 5.5 Results of X304 Maize Experiments, Jamaica, 1967. . . . . . . . . . . . . . . . . . . . 220 5.6 Comparative Yield of L0ca1 and Imported Corn Varieties Under varying Soil Type, Trinidad 1967. . . . . . . . . . . . . . . . . . . . 227 5.7 Experiments with Maize (X304), Trinidad and Tobago, 1967. . . . . . . . . . . . . . . . 228 gums (cont.) die :1 mime! 3859035“ W on Resea 1967-68 . . . . . a hire Yield Respons Soils in Barbadc! [x304 Variety). 1.. Saran Yields if: S1 in; Countries . Fecilizer-Irriaa: Carercial Cane :azaica. 1966-6‘ l' a . . 1W. 1r; ‘ amnion an: C: 3 . .. run A ‘ ..-...o5. 52c Tc: 7)- J v A: ‘.-. ‘W .33» a. LIST OF TABLES (cont.) Tflfle . Page 5.8 Fertilizer Response for Various Root Crops Produced on Research Stations, Trinidad, 1967—68 . . . . . . . . . . . . . . . . . . 233 5.9 Maize Yield Response to Fertilizers on Some Soils in Barbados and the Windward Islands (X304 Variety). . . . . . . . . . . . . . . 237 5.10 Banana Yields in Some Important Net Export— ing Countries . . . . . . . . . . . . . . . 245 ill Fertilizer—Irrigation Response Curve for Commercial Cane Varieties on Research Site, Jamaica, 1966—67. . . . . . . . . . . . . . 248 6.1 Composition and Consumer Goods Imports Trinidad and Tobago, 1951 and 1965 and Jamaica, 1950 and 1965. . . . . . . . . . . 267 6.2 Comparison of Aggregates, Jamaica and Trinidad, Selected Years. . . . . . . . . . 269 6.3 Total and Per Capita Food Imports and All Imports, West Indies, 1953—1964 . . . . . . 276 X111 ~-u LIST ' 15: of the Carib A u more: Stuaie .. . .::.... ~~ ~ _-. A. ua.3.--.u.-... 3 ..::: v". ........c.. I C) ,_ .-x..‘ “13:- ~:‘ " .. ...-..._ I ..-.\.,.y.4 ‘ ~.. A «.75-.. .5» Illus. 4d 52 LIST OF ILLUSTRATIONS Page Map of the Caribbean Area Showing the Region Studied . . . . . . . . . . . . . . 10 Classification Scheme for Agricultural Research Organizations in the West Indies, 1968 . . . . . . . . . . . . . . . 125 Research Organizations Falling Under Final Classification . . . . . . . . . . . . . . 126 Hypothetical Fertilizer Response Curves for Unimproved and Improved Crop Varieties . . 201 Fertilizer Response Histogram for Locally Developed Hybrid Maize (X304) at various Research Sites in Jamaica, 1967. . . . . . 222 TEE PRO " .. = "v" earn-4... “-—..u y.“ "til: .; ‘1: .. "1,; ...F m... ..e 3'95»; . . t-~..1:‘5 C.“ l'Z‘.‘ . a—1‘. ~u.~.. :1 “5““: f~kc¥ 23‘5“ \“.\"\- w.“ 5.. 3w;-‘ ‘ ‘1‘:.: .t.\. . . ._‘~ ‘-. \ v“ “5." ‘~ ‘Nt: a. a .. x . 1. ‘ .\ S “ - 4 a mm- ‘1 21‘“ :51. R... ‘. ‘. ~\ I. ‘N. P §~eu ..._ .~ ‘~. “-\.‘ \ _‘\ - PART I CHAPTER I THE PROBLEMATIC SITUATION The General Situation During the 1950's and the 1960's, a virtual flood Of books, articles and conferences dealt with the problem of stimulating economic development in the less developed areas of the world. When it became quite obvious that the earlier emphasis on industrial development contained major shortcomings, the discussions turned to the question of agricultural development as an integral part of overall development. Recognizing the importance of the agricul— tural sector was a significant step toward understanding the developmental process. The relatively heavy emphasis on extension and diffusion of information in the early 1960's illustrates an early, unsure venture into the un— known_ It is significant that very little thought was given then to the "sources" of the new information and to the economic incentives necessary to stimulate application 1 ids new mum. thole ill Clarifying ziables in the 39mm“: 5m to increased prod: Culture.1 There has never 3 ageneral theory Cf ‘ :ziies all the requi :1 azicnal econch . :3: decades appear “a forefront. This Lu. I ..\ ~ Aguirre ‘1" x“ \Q: N. ‘ U1. ”'1 .. . " I ..e CLELIE'V *~.\ '1: W . -"~ “3 ECS‘ 2 a \4 T". ' ‘le ‘I‘por of the new information. Economists had been playing a major role in clarifying and identifying the strategic variables in the agricultural sector, as far as these relate to increased productivity and income in traditional agriculture . 1 There has never been, however, a single, accept— able, general theory of the developmental process which identifies all the requirements for agricultural expansion in a national economy. Nevertheless, discussions of the last two decades appear to have projected a major variable to the forefront. This variable is technological innova— tion in agriculture through research and development. Admittedly, this variable is not generally accepted as a panacea for agricultural problems in less developed coun— tries. On the contrary, the general feeling is that it probably has its most dynamic potential only in connection with other factors. The importance of research in development was first recognized in early cereals research. Today, the results of such research are widely known and generally lSchultz, T. W., Transforming Traditional Agricul— ture, Yale University Press, 1964; and Schultz, T. W., Economic Crises in World Agriculture, University of Mich— lgan Press, Ann Arbor, 1965. ml to as the 'green nlrtim has not been ' “equal, there is lit armed and accentua iievelopental process Today, many less anal long-run gains 3'3: easier bv procr m. ' 5.».- ~n.s,_ Cr” 35212321025, “Eilcarle eve: a and were »..1ler-Fcrd Fe; tn. \._ 11 . the P‘lllccy .. \: 2:435: 3'“ referred to as the "green revolution." This so—called revolution has not been without problems but, other things being equal, there is little doubt that it has effectively demonstrated and accentuated the key role of research in the developmental process.2 Today, many less developed countries recognize the potential long—run gains from agricultural research by indigenous organizations. These efforts have been made somewhat easier by programs of international agricultural research organizations, many of whose findings appear to be applicable over a wide geographical area. For example, the Rockefeller—Ford Foundation research projects in Mexico and the Philippines have heralded a new era in technological advances for agriculture beyond the limits of these tw0 states. They thus demonstrate that technical 2For review of the "green revolution," see: Review of the New Cereal Varieties, USAID Spring Review, May 12— 15, 1969, Washington, D.C., and USDA—Economic Research Service, The Impact of the New Grain Varieties in Asia, ERS-Foreign 275, July 1969. For a discussion of some of the problems stemming from the "revolution," see: Wharton, Clifton R., "The Green Revolution: Cornucopia or Pandora's Box?," Foreign Affairs: American Quarterly Review, April 1969. pp. 464—476. Also, Hardin, L. s., Later Generation Agricultural Development Problems (Ford Foundation). Paper presented at conference on Agricultural Development, Bel— lagio, Italy, April 23—25, 1969. ”1m resend! fin gifit' mm, agr and and nae-eat“ ‘ anal and 99°9raphic The international :rzly increases the 5‘ :‘rssibly pecuniary) 1.... '. ‘ an .be seen "0‘ or can 311 by indigenous r I '31: Le increased :4... .... - \, assemble :c "p ... ‘ x. if“ .. ClICiIIZSLETICEE agricultural research findings are not inherently “location specific.“ Moreover, agricultural research can be so or— ganized and implemented that its findings can have wide ecological and geographical adaptability.3 The international exchange of research findings not only increases the scope of international technological (and possibly pecuniary) external economies, but also in- creases the need for careful, purposeful developmental planning by indigenous research institutions. The need stems from the increased probability of the new inputs becoming susceptible to local forms of diseases and pests. Under such circumstances, the inputs could suddenly become "obsolete" and approach zero utility. Thus, increased transfers of agricultural research findings have tended to accentuate the demand for effective indigenous research institutions and systems in the less developed countries 3The new improved cereals (rice and corn) from these two research organizations have demonstrated the ability to double and triple crop yields over a wide eco— logical zone in South East Asia and the Middle East. Ef— forts are now well underway to develop similar organiza— tions in Columbia (Center for Tropical Agriculture) and Nigeria (International Institute of Tropical Agriculture) to work primarily on crops of the lowland humid tropics. The British pioneered in the develOpment of regional re— search organizations. Excellent regional research facil— ities were developed in Africa to research rubber, cocoa and palm, long before the Rockefeller and Ford ventures were conceived. a ‘01 . “ “litandecreasmc‘: ., ’ 61 H M '-Q 1' .‘j‘.cb -" in: fir ' -u - u Ah. 3. ‘ “I . “v- “A“ A l|--§-' O" 3. fl ' O ‘ O " “Innate . o. 5-V..‘ . . - .. ‘ N‘ 'D-‘ HF; v.- .. ‘ \ .. -.-...’." - .-‘ ‘..‘ . ~ I s... -~. A: ‘ ~‘9-'“-~‘.- b - -. P. Qt ‘hu‘v-a. 2v.“ - - 0.,v \g‘..-.-..\l in...“ . . -‘V§,. ~II-\-Au—_-\ a .‘n- -\-- ‘ ‘ .- \ ‘. ‘§ .5.. ~I~“' ‘ . .__ . ‘ ‘ . .‘_ ~ . ‘V‘A —'-‘~ -‘ .1. -_\‘ ~ ~ _ -‘ ‘5‘ fl.i~—_\.»U \- v . ‘ - v;:“_“ F! ‘ ‘-\.- ‘ ‘ 0- -~\\.-s§~‘~ -“ .l- .__ : “ ‘ a I“ ‘ ~ " p‘ ‘ - ' .. ~. '.‘ .-. -.._ '\ . ~ . .‘1 ~- ‘ ‘ . .. - “\,. v; ‘ ‘ n . \‘ I. . “'“H~-‘ ~ ‘ v‘ ‘ -..~ ~ ““" \ k . ».“‘ ' ‘ ._‘ ~‘\\‘ ‘\ 4". ‘K I \ ‘..¥I.. ‘ “. ‘.A “V\. ‘. ‘ . h“ h‘ ~ ‘_“~‘ \\I.\( ~ ‘ "i- ‘x. ‘ rather than decreasing the demand for local research sys— tems. The primary function of such systems is two—fold: (l) to provide "maintenance" research to ensure continuity of utility from the transferred inputs, and (2) to develop and firmly establish local research infrastructure as stra- tegic focal points for incorporating locally adaptive char— acteristics into the transplanted inputs, as well as to ‘ _‘ improve the biological characteristics of the new inputs. The planning and development of indigenous agricul— tural research systems and institutions pose major problems to the less developed countries. In a wide range of factors responsible for the problems encountered, we con— sider the following to be significant: 1. Lack of reliable information and guidelines regard— ing relative economic and social payoffs from in- vestment in agricultural research, over against . . 4 alternat1ve investments . M— 4It is only within the last decade that there has been major attempts to estimate the returns from agricul— tural research, and to compare such returns with alterna— tive investment opportunities. For discussion of some of these attempts, see: (1) Barletta, N. Ardito, Costs and Social Returns of Agricultural Research in Mexico, Univer— sity of Chicago, Office of Agricultural Economics Research, Paper No. 65040, February 11, 1965. (2) Evenson, Robert, "The Contribution of Agricultural Research to Production," l. he acute shorta‘i in hith the socie enoes. 3 “1°: ( he, the inabili‘ to plan and impl' ten. agricultura are available So :. he instituticnd research svste’e :9: w ' ~... 1516 11‘5"! -o—k :ra‘i' Ltional exp: antral : esear crops. Such s“ 1: ezot . 45515 CI "e~ . n. a L. vu.‘ " ~x. acr~~n .“\u 2. The acute shortage of highly qualified personnel in both the social sciences and the technical sci— ences. A major consequence of this shortage has been the inability of the less developed countries to plan and implement effective, relevant, long— term agricultural research systems, even when funds are available for such projects. 3. The institutionalization of export agricultural research systems into economic and political sys— tems. The historical ties of these countries to traditional export crops means that existing agri— cultural research infrastructure relates to these crops. Such systems often strongly resist change in emphasis or are not easily adapted to serve domestic agriculture because of highly specialized facilities. Jmunal of Farm Economics, Vol. 49, No. 5, December, 1967, pp.1415-1425. Also: (3) Peterson, W. L., ”Return to Pmfltry Research in the United States,” Journal of Farm Ecmumucs, Vol. 49, No. 3, August, 1967, pp. 656—669, and (M Griliches, Zvi, "Research Costs and Social Returns: inrhiCorn and Related Innovations,“ Journal of Political Ecmmmy, Vol. 66, Oct. 1958, pp. 419—431. Reprinted in Ehfimr, c, K. and Witt, L. W., Agriculture in Economic Damlopment, McGraw—Hill, New York, 1964, pp. 369—386. p ‘ ‘ ‘ o .- the tenders} c- p Q . , ' 'fi-‘f‘ . :AA :NV1FY'I ‘ S; .Ct ub-.\.u.~ «- l .. a ‘ fully-vi he OI-Fh. : ==.'oy undo.»- :pn:n- of: a n r- ‘Esbvuuu any-» 0 d b ' ‘ .. - ._ A. _’" :A“ rnwcn ‘ '- “~bv‘-‘u~fi ‘.'.w. v I noun-Ac... “HAP ‘ a ‘ ~ - ‘.\ \ \ a‘ ~"""' “'1‘... a... o - Q ‘ D. .‘ o . n... A .. - " '_ ,_$“_ :p Av ... 'v..- ‘- 5““ ~Ai'.- Q q - Fa. v- " "“o-u ‘ - -‘...-I .b _.‘ ~v—‘ A 5““Awo ‘K ‘ .."‘ 5‘ _\ ~ u..\_,_-»~ ~ In. ‘ _ h— ~ -...~ A T ‘ ‘ ‘h‘v- ’--“ v \. h a o a. - \_h.. 6. ~- v ~“-‘ . ‘ I 1 -y‘ ‘ i “ ‘ "~ 5‘. ‘ ~~ - ‘-\~‘\\~V-- 0-- ‘ “‘5‘-‘ V“ fi . “§ .. ‘i ~ 'q‘ .~. ~“ — vs.“ “ ‘- *\_ ~‘,_ “vey ... V» . . " V ‘v ~\.\* n‘,“ ‘ ~ ~\ ‘a‘ ku‘... ~24 y h‘c“ ‘ a“... u .. “-~~ ;« a 4;: . .“ I~;-. “I ~~ c \ .\ ‘ V a. I“ .‘ - ‘ ‘.: \‘ ' \\ ‘ K‘ “\ \v§\ .V‘ \ . ‘ . “.‘ x.‘ .y \‘ u‘ \\ ‘ ‘L “\ ~ 0. . ‘ ‘ -.».. \ .‘k‘ - ~ _ ~\‘ .‘-._‘ ‘5 \ ‘ x 1: \ ~ ~ , \ .x-l \ \ ‘ 4‘ 1: ‘ .‘ Hk . 4. The tendency of public research organizations to see agricultural research investments in terms of a "service" function in which zero profits is the accepted norm. This prevailing philosophy has discouraged attempts to plan agricultural research systems such as to maximize the benefit/cost ratio. 5. The general shortage of financial resources to mount a long—run research system that would benefit from economies of scale. Scale economies appear to be a vital component in providing the thrust neces- sary for major breakthroughs. This is even more necessary for domestic—oriented research efforts since these generally have to be launched from a lower base than export efforts. ThaGeneral West Indian Situation WMfliRespect to Agricultural Tedumlogy and Research Like many less—developed areas, the West Indies iSseeking ways of capitalizing on the new agricultural tedumlogy coming from the international research organ~ izatknm as well as building an indigenous research U) ,-.-=- Tl "es: 3:318 rhfl‘ -CU-UH . 4 ,....a -r .- mfl "' a ‘ ' n ,- I! ~‘ R ‘ VOW IFR"-:AF’P -~ Moo“ - :~"._ nyoo\rON to . ' - abl- ..-... . a ace-Q V“‘~ " - I \a ‘ :‘~V"‘ mo.-. nu anO-‘I - a I A 1““D'lflbfigfi «A-.. I ‘ ‘ five-d *¢.-v.----yv . a ‘n _ ‘1 .Rl Iu~§~.---~Ay-~ . u. \ \ “e... onyu--u--\.--~ «- .l - . 91- .....~. ..---'~-_.u D c . . D o ‘4':"-~ v-vuo. _ ,. “ ‘nu. ‘ “-~ -5 a. u... » o u .4 - .2,‘ P‘*’~ n- - .- x.--v‘ “ -- -._. " .un l~ ~-~.. -.. . \— ‘V: ~-'_“. 5“ “Q“;z ..- . s»-5_.‘ ~... \~ :-~ ‘ ~ ~11 -~.~ ._ ‘_‘h’ . n . "Am \- ~~ \ ‘ es- _ hu‘ ~V“‘ - ~‘ k ‘ ' ‘xu \ ~ ‘ ~"‘« \ u ‘ ~"\\‘ s‘:-\ .- ‘H . , ‘ ‘s I “ |\ ' a‘- __ ‘ . ~~ '— ". Vi.“ \. \ ‘ -\‘~\ -. \ u ‘w‘ \ "~_ h ‘x _‘ ~ _ , e ‘: \ \r- ‘“M -. ~ ~‘ “\¥ N "i ‘n“ .“ g ~~ \~ -\\~ system.5 The West Indies, however, faces certain problems unique to the region. These have evolved along with the unique socio—economic and political development of the region. It seems reasonable to assume that such unique characteristics will demand unique solutions. To plan research institutions for the region requires recognition of the following: 1. Benefits from the "green revolution” for the West Indies have been minimal, relative to those for several other underdeveloped areas. The new im— Proved cereal varieties are not adaptable to the lowland, humid tropics. Furthermore, although major programs are now underway to serve these areas, it will be some time before major results and inputs are forthcoming. This condition is not unique as such to the region, but it suggests that a major Objective of regional research planning ____________‘_____ 5Throuplhout this thesis the term "West Indies" re— fers tO those territories of the Caribbean generally called the c.0mm0rlwea1th Caribbean. The territories include: Jamaica, Trinidad and Tobago, Grenada and Carriacou, An— tiqua and Barbuda, Barbados, Dominica, Montserrat, St. Kitts—Nevis-Anguilla, St. Vincent and St. Lucia. Three Effiim ten territories are independent states within the Barblgh Commonwealth (Jamaica, Trinidad and Tobago and' d Stata OS): 'The remaining seven territories hold assoc1ate ehood with the United Kingdom. Est h the devei ioal We as ‘ m. outside the The magnitude an gional research plenum must 5: Mun-s ......ed tow-rd czrrent researc‘. :5 :‘re relative ticna‘. and reg; :5» w a” .. ~~~a~ “ m. 6-3373 - v va v:- u .~.I D resean -c . “gag-win. “the. a" O: ‘ -Li ‘ M‘ ~:;...~,. . -~.“"‘“‘ ..:1 “e: - . 1.. 5:... H‘ «C t - 2‘“. . -. \‘ New \ A L. xer‘.“‘3 n » \~ .‘h ., ~ ‘ “'1‘ ‘ \M 1‘ u x ‘ N V‘ ~. 2 "‘k ‘ ...‘ 1.; ‘1‘ \ I, h ‘ H \ .;. H .63: x... ‘~:; and) .h‘ in ~ “‘.~..:‘. :1‘ no“; me...“ -..‘ :~ ‘5 ~ ~Qj«\; “H ~..\S.~. H“: “‘“ 1.5;. . \‘MC‘ ~. “4; ~ «RES .- must be the development of the area's own biolog— ical inputs, as well as seeking to adopt those from outside that appear to have some potential. 2. The magnitude and characteristics of existing re— gional research is the fixed basis from which planning must start. This research is heavily oriented toward the traditional agricultural ex- ports of the region. A significant portion of current research is privately sponsored. Because of the relative importance of these crops in na— tional and regional economic systems, public re— search efforts were also designed to complement . 6 pr1vate research. Recognition of these important aspects of West Imfian agricultural research means that agricultural de— vekpment planners cannot look to any particular country fm:simple examples of institution building. It is more reahstic to concentrate on extracting relevant components M 6Throughout this thesis the terms national, inter— Imthnml and regional are used to indicate: (1) the econ— mm7ofihdividual countries, (2) worldwide or extra— reghnml economic organization, and (3) the economy of the Bhfifish West Indies, respectively. ... ,-..~-~ . ~ - ,...-..¢.—- a l ., c . .. g F I. .- 10 Illustration l.1.——Map of the Caribbean Area Showing the Region Studied. La 1 ' \ 5‘2 ~30 AH urn (n o 200 4011mm. “ 0 700 400 Innm llh'v - sevmudn «. . , , . I ( ' ‘1’ IJ‘ n;- I. ‘ \ I MEX/I '0 25 . F I." 1 .\ 1 . ~\ ) 1 . j .- *0 3°63} ( (‘ Cayman Inland. ‘- 4 43° 53:?‘1‘8 (3)1; . 5 c 4 5 -~ ‘ 5° 0 O “”5” l [r “MA,“ Klnplm 4 'DOMINICAN who 3 3:11)"? 7‘" I 4’ r REPUBLIC 5 5‘ E“, N“? u ' n ‘9 a I), I)» I l l- W‘ fiGuodaloup- 15‘ a ‘ Dominica 1 \' 5 I‘.‘ "1 4:1," Mommque“ :2" «7-?» sum . 3 V: SLthcM. “We"; GRENADI E . a Aruba!§ Curacao ‘ ISlANDS . 3 \ Vlanuun . 1 Grenada 3 ' file: a: Margovilu v - <9 Tvinidad and 1 Tobago ., f \.—--«~-1 \ anmsu g "‘1. GUIANA K ,J" -) ‘r‘ (-F NCH5 \) ’ . ' - . __ y. '1' ’ I .l ( If I( ..\ Q“, r a / t SURINAM \GUIANA/ c 0 L0 M Bl A . 2 . < k l: \ -~”“~ I ill 1. n a K. M, J. ., - . I“ "‘\.._.."‘/‘~ V \ r N . ”‘p. x B R A z I L 0 ~. \ '\ f' \ w" ’L 1.. »_ , . “.- _‘1L1_ “f 5.5 NEG. ERS 2971-64“) ECONOMIC RESEARCH SERVIQ .. JfPAHMENT OF AGRICULYURE It". 0 '5... ‘ . C [H.MIH v n I.,.',... V . fl. ...': u n“..\,d‘ud-‘- a .. "u‘ PAga-Q.‘ - _, “. ’vhuv'“... u "'3" ' ’“r ~ "' " -0.-. c Coca. ‘ ‘- '— u...‘ _ ' I "nu“.b' . u ‘- za "~ \- v.0“- :AnFHu-p ‘vuv d..- ' a- .."A -‘yo .— ut..- - . ~A~¢'-'. baa..-‘ - I ~ L., - ’;V: v..' Hgi‘...~“ . ..‘ ‘ ~- ‘V‘. .‘ g. o- "' -. 2‘ “l-—“"‘-—~ . v '.~“'-~.u . Q A" ‘ s ”,V “' b.. “v . . ~ . u. . ' \ a- ‘ '“3? ”; we... » 5..» :__ — I ‘ - ~\ ‘“V-~ ‘4‘ ‘\-¥ .~ ‘ '. “u- . ‘-s‘ h “ h" ~ h‘_ . .‘ ~ \-\.-. ‘ : ‘ ‘ -.\v x ‘ a .-~_. ‘ ‘ V‘- “' ‘. a” -.‘_ ~~‘_ \ ~ ~u“~ “- “"I In... - | ‘\u_ .. ‘ u ~-~ . ‘ ~ \ . . H “ W - h‘h \- . ~ "V4. . ...‘n 5‘ . \‘ L. \ . .:‘ 5“- .‘ . .“ ~ ‘\ l‘~\‘ ‘“ ‘ ‘~- s.‘“ ‘, ‘ -\A‘“. s . . \ 3:: ‘a‘ - ‘ ~ “ u ‘u u.\ ‘ ‘ A‘ \‘ k I ‘ \- ‘ (I) n .- V . .. - a‘ i .— . V I 11 from a wide variety of experiences and then modifying such components to suit the requirements of the area. Agricultural development planners in the West Indies recognize that the uniqueness of the structure must be taken into account in the planning process. They also recognize that the five problems generally confronting the less deve10ped countries also exist within the region.7 Furthermore, planners see the rising population and desire for growth as exerting pressures on government for in— creased emphasis on agricultural research and develOpment. They also see the scarcity of top level manpower and in— vestment funds as forcing rationalization of agricultural development planning so as to increase returns to a limited research budget.8 Rational guidelines are needed to facil— itate the planning process. The task of providing guide— lines for West Indian research institution—building is H— 7See the five points cited earlier in this chapter, pp. 5—7. 8Throughout this thesis, the term "rationaliza— tion" will be used in its economic sense when applied to research infrastructure, agriculture or industry, i.e., "improved methods of an administrative nature which in— creases efficiency." See: Sloan, H. s., and Zurcher, A- J., A Dictionary of Economics, Barnes and Noble, Inc., New York (Fourth Edition, 1966), p. 280. ‘ ‘ a'ed m " n I _ ‘0 t H ' :arcoapll -Voo -0- 'a u . lot-H u I ‘ " mn'fl Integrat r . J ‘ 1"“ 0;:5firu- f‘. “l: ’ .1... ’ 0.. ;¢: 3:3».-n--.” u p a A o u... na-. .fi" n \ \ F “N'- v'n.» .u.» .. . § "‘ _—-\ . Anny-q. '- ." ‘"" byv-u-_, q a. I‘ n ~ -‘ ”“A' so a... ‘ .- I!" \ ‘ ’ .- .. dhgsbgv,.~ v. o n . . . _ A .u .~ :~?- Au -.~‘.: v... ‘flhi “"V--bu‘u_ - v. - r 's‘ I .._ ‘ -‘ ..- |-hq.‘7: 2~Y‘ a -. "‘."----._ ‘. . “"‘\D‘ ‘ v- - ‘ -:~‘\v: ~ ‘I..‘- “&b»--_ , . ‘\ ‘ ' ‘v. ‘ ~‘ - “ ‘V. ‘ ..h- V... “‘2‘ 5‘.“ \ -u-gu‘ ¢5~ . s A~.~V§ wo‘v‘ .‘ s‘u. \ “h h -‘ vs» -‘V ‘- it. ‘\‘\‘>‘ .‘ . ~ ‘ - N' : *““ a .\ a- - y¥ -‘ ‘ V““' ~Myu. u".‘ . § .. ‘ '.‘ ~ :s a “‘ . ‘§‘§ ‘ ~ ‘n.: ““1 cm n“ ‘ ..~\\_ ‘ ‘.‘ \. ~ ._ h M“ N“‘ «9“ s\.‘“ \ 5‘\_.\ '7‘.“ \‘~‘ N . \n‘. .3.“ “ ‘ s. N" \ k‘ 7-. ~ ~‘.\’ ‘s-g v 5“ \ \N \ H.‘I\ ~ ‘ ‘ ‘ - §‘.' \ ‘ .‘ ‘\ q ' s . ~\ u ‘:u A“‘ “ N ‘\\ ‘ I. N n \ N‘ g “Q‘ . ¥\H\ . . q 1 my , ‘ \. K I‘\ ‘1‘h‘ ‘1‘ x" \a “-\4 ‘.. " “‘ ..:1\ -. 1P.““ ‘ \\ \‘ ‘ ‘N: ‘u ‘ .. H“ ’3‘ ‘ ~ ‘ c . V ‘ ‘ ‘\\_, N “\ s ‘ s \.. \y‘.\~ ‘ ‘ ‘\.~ \ :3 “k ‘t: ‘~\ ‘ \ \ .x. ‘ -. ‘ “‘\,\‘ ~ . . \|\ \ - \\.~ ‘ \ ‘ ‘ . ’. ‘ ‘K‘ \ ~‘ ‘ I ‘ i I‘ “W“ ‘ \ \\ \‘~‘ \ A. ' ‘~ .\ a ‘n‘ \‘\t\ I ‘\ “ ‘ \ \4 ~. ~.\\ “‘ K K \\ " \ \' ~ “\ ‘ \v. ‘\‘ \‘ \‘ . “ ~§\_\\ \ . ‘k 12 further complicated by the recent movement toward regional economic integration in the form of the Caribbean Free Trade Association (CARIFTA) .9 Economic integration sug- gests some form of specialization in production. Special— ization, in turn, suggests major decisions on resource allocation and coordination. The West Indies is now faced with major decisions on planning, develOping, and imple— menting agricultural research priorities that will effec— tively harmonize agricultural resources with national, international, and regional income and demand conditions. Several factors dictated an evaluation of the re— gional agricultural research system. Some of the more general factors were discussed earlier. However, there are more specific factors operating within the region. In the first place, there has been dramatic changes in the demand conditions facing the traditional exports of the area. Over the last two decades, agricultural export 9CARIFTA is a unique step in the direction of sound regional economic integration. The Association came into being on May 1, 1968. Its immediate objective is to provide an integrated market for the CommonWealth Caribbean territories consisting of some 4.0 million people. Long—run objective is to include several of the mainland territories and Caribbean Republics, in which case the Association would cover a population of over 20 million people. 'go: o-Ob" on. 0.0. .‘Q . a... H».- .- nrf‘ .aau“ . u- v dun-Uta &°' J A . ‘ A BF -z-VIA'I .wqya :CCVO. gang-d... 0- g » m" 'M’ m"; b ~v- v.0:vu..\louv -9- v0 ‘ a p ‘zrfi'vlv: on? 4:ch :‘o..- fig -v- avg. ‘ a . o g "' r“: FI‘;r “""' -' ant.» Davy». u-A - >- no»\ . -V;.;V;—o-u :V“ b.\--u-~~---‘- ““‘ . Roy ‘ ‘ \ ‘ s ‘ u. e \ s.‘ ~ ~‘ s ‘\‘- « .“~.~‘: "\ I hv ‘ ~-~! .5. ‘ ‘-" : - Z-. ‘ n ". ‘ 'V“ .- s.“: h ‘ .- u ‘ I .‘\ :a.' ‘ ‘kx \ . \ 'a‘ a x .: ".M N “ ‘ ‘h‘.“~~_n \~.. '« w‘, \ \ ‘.‘\ \i ‘ I‘ V“ ~‘N‘ ¥‘l\ ‘ . x N» t .‘ H \\\‘ .‘\\ ‘ k .‘_..\ K‘ ‘ ‘ , ~ ~‘\Q\ \w.‘ \ ~< ‘. a ‘\‘Q\s .n‘ ‘\ ~ ~: ~._ . ‘~‘ ‘\ . ‘\~ \ \M 9‘ ‘- ‘n ~~~\. " "\ ~ ~\‘\ \ \ V~ ‘\ (we. ‘. x). (I) I“ (I) (I) (II (T; l3 earnings have fluctuated dramatically and there have been wide fluctuations in gross domestic product originating from agriculture. Secondly, research results have not been outstanding for export crops. Where the value of export earnings for some export crOps has been maintained or expanded, it has been largely as a result of acreage expansion and higher negotiated prices per unit of output (under preferential arrangements), rather than through increase of efficiency in production. Thirdly, the ter— ritories of the region have come to realize that increased agricultural productivity is important to their growth and development. Specifically, the region now recognizes that it is possible to have a relatively high rate of "growth" and very little "development" (if one defines development as structural transformation of the social and economic base, whereby significant and dynamic linkages are estab— lished between different sectors). Finally, the relative emphasis on export and domestic crop research efforts has to be questioned, given the stated objective of attaining a broadly based economic and social structure. Academicians, planners and administrators have demonstrated their concern with the basis for choice among alternative lines of research. Edwards, in attempting ' Ab . r 1 ....c 4:"31- ICI’ .3" b A .51. vul ‘ 1 .---~ .I:. 0 ‘ Into Don‘t. . p I Q C“ C“. “D. our”: :nn . a I : .io-H- is.“ no.9 6.1 u D~~n .a _'F V‘"VH" I- Y n _ ""“ ‘V- y... s.,..- a- , . . - on. F- p -u ‘-. a“ - 5 '~ 7 v- _‘ .... .nuu-‘u..---v~ _ .C ' p .‘b. . '. fl ’. h u " V“ .." " u-..“ _- -b -"V~§--. A,“ ‘V‘ \ _\ ‘ ~ ‘I'U.~'--..~ _‘ u- .. ‘ 9e. - ‘- ., . ' a; ‘77." -,. - - ‘~._ ..I.‘.-""-».. .‘- v-‘_ ‘ ~ I. I u. ‘~ ~ . -F‘ «A... A vvb‘..‘.' _ : .. n.‘ -. .. "~u._\- h" .s. ‘ _“»,.._h‘ . ‘.“. v~~00\0 ‘ ‘I .. . ‘ .. Q ~ _\‘~ . . ~ ‘ ""-~. s. a. ‘ : u...“ ‘ ‘~. \ “ ‘ “ ~"luv \_Hl \»V M.- ‘ a .Vv.‘__~ ‘ ‘i _‘ ‘ 8“. v“ V“ .‘ ‘.““ ‘:\‘ ~ . ‘. . .~ ».:~ ‘2. ‘ ." : ‘-_‘\“ ‘ ‘u‘, t. u “a ‘ I. L» \\ ' § -.‘. “\‘ ‘ u_ ~. ‘ ‘ “ \ ~-\~h §~ ‘ \x‘ ~ 5 “ a y .\ s ‘ .s..\ ‘ ~w\““: -\ . ‘ .N . M\’ “.“ w . u‘ I ‘ ‘ h ‘ s,‘ ‘ ‘H ‘\\‘ 5‘ ~ ‘\ ‘ 4.“ _‘ ' ‘ y“, -. \:'\\ ‘ I‘ ‘\ ‘\»~ "N‘. . ‘ _ - . . ~ - 5‘ "v\ ..‘ N . h ‘ - -I ‘.’ H\' o ‘-. Qv“ “\ \ ". . ‘\ ‘s. ‘y‘ \ s 14 to pave the way for rational assessment of choices, sug— gests that: The funds and the human and physical resources available for agricultural research will at any time be fairly fixed. Thus, the volume and quality of research efforts must be taken as given for the purpose of devising a program, so the opportunities for ChOiES are those dealing with the kind of research. Edwards' suggestions are indicative of the general concern with rationalization of agricultural research efforts. More recently, the concern was raised within the context of the regional economic structure and its future goals and needs.11 This study seeks to contribute some information on which agricultural research priorities and strategies can be based. The study has modest objectives, since the sub— ject matter is complicated, and the time and resources 10Edwards, D. T., "An Economic View of Agricultural Research in Jamaica," Social and Economic Studies, Vol. 10, No. 3, September 1961, Institute of Social and Economic Re— search, University of the West Indies, Jamaica, p. 332. llBrewster, Havelock and Thomas,Clive Y., The Dy— namics of West Indies Economic Integration. Studies in Regional Economic Integration, Vol. 1, Institute of Social and Economic Research, University of the West Indies, Jamaica, 1967, p. 126. Also, the conference of the Re— gional Technical Committee of the Faculty of Agriculture, University of the West Indies, Trinidad, 1969. o r. “n? PF 0.. “V'l'°3 is zones 1:: Q . -O ..:?-:91'l~ 9:32,”.- ‘ ‘Mo..'-l.‘ .vuv‘- w». it- O . J. p. n‘c-A.-: p;- v ‘1‘"--- 5‘ b O . Q . o:o-..~---': :Q"--. \ o- .— ."'-"‘“- dw‘ivyu . ‘ . h... -\--"‘P :qsnouo-. ‘~ 'IQ m‘ at» u..-.-'--‘. ‘ .'I. ’ I I. ., :V__ ':§n~ VA-‘v-w ~- ..—--~--_ -‘ JV v ' u v'h... ,.- . I ~.,. - . ""‘O. h“ ‘ A" ‘v—fl .n.~§.~_-- ; “ ",.. -"-:-.,‘_ .‘ ‘- "'-~.. - ":.: « - -. V “"" » - -.' s . yuh ‘. ‘euv- “:~:o-.__ .‘ ' u ‘ ..~‘_“- ’ . _ . ‘ .~‘U. t.. .‘ .__ --.5~ ‘ - bu... - .Q . . ~_ . o \ ‘ ‘ ., ,~ ‘ ‘ .H . ~ ‘;,“ -\ “5| ‘ n. “h- \'»‘ o— h». \_ s. A. ‘ \~ :l“‘~“-\ E. 8. §\ \ *x H 5‘- .IA . \I‘ . \ N““ ‘x ‘ ~ ‘ ‘s ‘n “ a‘ \ ,‘ ~~ ~ -‘s \ .. . ‘ ‘ Q. 'N ‘N‘ - ‘H\ . \_ .. ‘ ‘ \\ "‘ ‘ \v ‘\ \\ "x \ \ K ‘ _\ ~.~ ‘ \~I‘ \~\ ~“ “. '\ “~ ‘ ‘..\ a ' ‘ - \ n .. ‘ \ \ x ‘. H‘ .\‘F x x \ ‘ I‘ ‘\- Q“ “~ \ ‘\«. I \\ N.~\‘ \‘ ‘\e~\‘ ‘ s l V‘ \“~ . . \A C ‘ \.. .‘ k_ . \‘I I‘ n ‘ L I 'n\ 15 mmilable for conducting the research were limited. Hmwver,it is hoped that some insights are provided into Hm existing research situation. We shall discuss rough hflicators of payoffs to specific types of research, and um institutional aspects of organizing and carrying out remmrch activities. Our assessment of costs and benefits is ofa realistic ”rough—and—ready” nature. We try to asaxtain direction and rough magnitudes of the consequence ofalternative lines of research and develOpment. The hkely long—run negative and positive effects are explored Unsee their likely cumulative effects on strategic var— iables in the develOpment process. Objectives of the Study Relative to the Problematic Situation Specific objectives of the study are: 1. To identify the characteristics of the existing regional agricultural research structure in terms __~_______y___________ 12The author spent the 1968—69 academic year asso— dataimflth the Department of Agricultural Economics and Fanannagement of the University of the West Indies, Trinidad. of (a) organizat partial assessme i ‘JtS. ‘ . fi 9» 1'3" 3913.9 .- 7‘ as}-.. 4.: “ ~-~-.-: .. 'w . ~ ,. _ A. ~-..E.= : ’3‘ :5 We“ 55 -,.~ L— -..e .., wt. 1‘ ‘3‘:.NR \ . \ ‘~'.‘l\,‘~ a : H“ V‘ 73: .. . ~-.‘¥ ' -. ‘Q‘r‘."_ . “N“ l" “V‘R a.-.c “st. ‘an, " ‘n-l - ' ’ q-AM . ~AIIV . ‘uu H 16 of (a) organization,(b) subject matter and (c) partial assessment of manpower and expenditure inputs. To examine the characteristics of output from the regional agricultural research system to see how they relate to the performance of export and do— mestic producers at the farm level, and to the general performance of the agricultural sector. To explore the major bottlenecks to productivity— increasing technological change in agriculture, as well as the scope for relevent technological change. To develOp a strategy of agricultural research priorities, including measures to overcome admin— istrative problems in research agencies for the region, and to explore possible consequences of following particular research strategies. Q 9A — - . U o .~ -. I .. a _ A "‘ o 4" "5 "I “M i. «nu ~u. - .~,.-qr “V'~ - ~ ~ . ...4._-‘ - ~-_ - . ‘ 0 m»-—~ .— , ~'- __ . g n” . ‘. _ -¥-"‘ .w‘ ." L.'ll .. K‘-v;.--,-: ‘A .o. —.-,-.~ '\ o P ‘1 : a. . " n -9- H..u “ v-V -a- an... ‘0— Iii-I.- VA \ Sip . F»- L...- “ n- - \ "-. _ “‘“~A\_ .I ..v ~ ~ »..-\‘_“ . . . 'I “ - - A v- ‘- -\ s... _ ._ \ .\‘ h“‘u‘n ‘. -. . ‘- . \ - ~ nus. _‘ ‘--“ >. -n, h- h _ - .-\’ ‘yu‘\ ‘. . a “V- ‘V . ‘04 I—n -. " ‘;~ . ‘ Q- u‘\ x s n‘ ‘... -..: -1 . u. _ I‘Vu \— I . . ‘. “ -F‘ ‘ '-.~ ~‘\-. .‘ » “~- ~ “ “ . _“u- .‘.. ~‘ n ~ -‘ ‘5 5 -‘\ ‘v-\ \ . s s _“... N‘ ~ ' s u‘. - -V_.. \ .. ‘ § "\ n“ x “ “.~ h.“\“‘ w .5 b‘_‘ ‘ u 8‘ . a ‘\ . . \ \.“‘ \~ ‘I‘ ¥\. -‘\._. ‘. nx x x ‘ -‘ ‘ A‘\ ‘\. -‘ ‘\. ‘ ‘ ‘ < .. - x y. ~ Q s . ..‘ \ “: “\~‘ ‘ “s. x. . ‘\'~‘ ‘~\ \ . ,.u‘ ‘ ‘. \ .‘ \‘~ ‘ ~\~~ ‘ x ‘u : . k “x. \\ ~~‘ ‘~ \~ . \ \ . c .K‘ x ‘u‘ ~ ‘ ‘\_ u - \A x .. \‘.‘ I x‘ -\\\V \ \ \t \u~ ‘ u \| \ ._ \ \A \\. ‘K \ . L \ ‘ “\. \V \.‘\ \ K x 17 Plan of Work The thesis is divided into three parts. Part I includes Chapters I and II,- Part II includes Chapters III, IV, and V; and Part III covers Chapters VI, VII, and VIII. Chapter I presents the problematic situation con— fronting policy makers and agricultural research planners in their efforts to build indigenous research systems in less—developed countries and in the West Indies in par— ticular. The chapter also outlines and spells out how the objectives of the study are related to the problematic situation in the region studied. Chapter II describes the West Indian economy. It discusses the unique features of the general economy as well as the agricultural. It further explores the rela— tionship of the uniqueness of structure to the source of growth and the general life styles and level of develOp— ment of the region. Chapter III examines the performance and composi— tion of the agricultural sector in general and of the ex— port and domestic agricultural subsectors in particular. The major function of this chapter is to set the stage for subsequent discussion of the performance of the re- gional agricultural research system. C -0. ”v.8 a: . 0"” r. t f o f‘ O . - ~ . - . 1. 3" a, vb v ~.-.-“ I ha. - a o J.. ~01- o . "fi‘ 1‘" .- - ‘. ”V‘ 4‘“ I q d Ito‘- "M .v:-. ‘u--‘_‘- - . .... ..,,\ “.V‘AA " van _ NH" -lvv ‘- .1 -y ‘V'Q‘-Q“" \ - ~ ~ ..' I \- ,n-.~. ..-.,..‘_-v . a H." ‘ *~ ~.-.~:.: -. - - ‘ ‘\\—\ -u o \-‘.y h..s ‘~~‘,~‘- ‘ ’- ‘ ‘ a‘ -. ‘ . .2“"y \uva~ _ _ '--‘~.'- I 5..~A.. a o I - ~,_~ ‘ ~'~-“-‘-~ :‘fl‘;::.‘ '5- -.<.- .5 ~¢~~‘~‘—. . .‘- . . VA ‘v‘§ - ‘ ‘ ‘ \.... — ‘ -v- -~v ‘ ‘V§‘F“.~ “U“V .-. - ‘h‘.‘. ‘- ‘I" ~ ‘h-vi.“‘ A" _ _ ~~ ‘A““"“~‘ ~§ - ‘ ‘ I ‘. ‘ 1‘... \ :‘Wx‘ ““ ‘ ‘ ._ 5 ~..\—\_‘“‘ . . ‘A ‘ ‘v.‘ ‘ ~‘ Cl"- v» \-|‘~‘.‘ \ ‘\ n“ . .~ ~ ‘ ‘ Nil. ~ V‘~.. a..\.~ I V“ a . ~u‘»““ . .“ ‘~~.‘ ‘ “ m. ‘ ~ ~ N \ ‘\\\~‘ V- “‘.~ ‘ ~§u\‘ \~ \ ‘\ \_\ .h‘\‘ ‘ N~ \“ ‘ ._ ‘ ‘ -\‘\ ..‘ “_‘77 ‘ H::H\\ ‘ \\\‘ K \_ ‘ < . .‘x \‘\‘ x N“ ‘\ ~\ ‘ \ .‘ \“\ \“‘. ‘ “u-‘\ m “x ». ~-\‘\‘ ‘.\ .\\‘\ \‘-' ~ \‘ ‘ \‘ ‘ \.‘\ ..'w “~ “~ \.‘ ‘ “\ “‘4‘ ‘ .. \N \\ K ‘ “ . \‘k. : \\\ .‘ “\‘ s‘ . H. x‘ ‘ \ ‘_\ ~ “ . § \‘\ i'\‘ .\ ‘\.~ \ \ \‘:\ ‘ x \ ‘\\ ~. .\ . ‘ \\‘\\ \‘ \ 18 Chapter IV serves as a background for assessing the goals and effects of technological change over the 1970's. It presents the empirical findings from the survey of the regional agricultural research infrastructure over the 1930—1968 period. Focus is on the classification of various research organizations by commodity and subject matter orientation. Research objectives and input struc— ture are also assessed. Input variables examined are: (1) research manpower and (2) research expenditure. Chapter V examines the cross-country experience in generating successful agricultural productivity gains through relevant agricultural research systems. The relevance of international experience to the West Indian situation is explored, as is some of the empirical evidence regarding the extent of the first generation problems con— fronting agriculture. The first generation problems of the agricultural sector are discussed within the framework of a regional assessment of the performance of the export and the domestic agricultural research systems. Chapter VI examines the likely second and third generation problems resulting from increased agricultural productivity via relevant research systems. In addition, it explores the basis for assigning priorities to various o ' ' a q o r .- '- O a 0 -Ah. DA, ups J‘s-0" .n ‘ M b. .V. ”nab U“ ' . a- A- v- v“ ....‘..'.’ H 'I.v.. ..‘ O-vv ;‘ ' Q. " U..u~.'- ‘0- u.» o A ~- -‘.'.A .. A .. H.‘ \ V_ .— — ‘v- .~'-‘u-|' “~hp: . I- I ~.‘ _.‘ ' ..- s. -n- ~‘fl--~.‘ "D... ‘r- ._ ‘ __ -.. ...y ”-0-. be... .-_ . . . .. ‘9. A- v - U Q ‘ ~ Ier' -- \ ;‘ - ~... . -- ‘- .._n. ' u. . K --"‘—\ ‘ . “ v.5 n.i.-. ‘ a h -I ‘..u . ;..' .h. ‘. - v».-‘ . . ."‘ _ ‘9‘ A“ ‘ ‘~--.. n a... -.-~.. _.~ 9 .l u. . ‘ “ IQ ...~' In {H 1 {1. 19 research systems over the 1970's, as well as developing a shategy for the subject matter of research. "Rough—and— mmdy"assessment of costs and benefits of technological innovation are explored. Chapter VII develOps a strategy for harmonizing the administrative aspects of the agricultural research system with the subject matter of agricultural research over the 1970's. It explores the relationship among re— gimml,rmtional, and international agricultural systems and the route which appears most feasible for the West Indies. Chapter VIII summarizes all the Chapters and pre— sents conclusions and some recommendations for future research . —-. unca‘gnl mssfl- u:‘ M ‘9‘... ‘0 -L‘\-~-- co. . I. '1‘~‘ “n. c. .U: :3... Quu-s. 1 .n .qn nus 5‘ ~~A~*:F ‘ ~ I ‘- h “ uh -- Iv\.»“-“- “V‘ - a i . .l . . ‘ ‘ .. ~- - 1 ~ '-‘~ "‘v-.u ~ '- . s..._‘-‘ 5s”--. .4 s ‘ K“ \ l.“ ‘vfifl‘. ‘~"‘~ ".. fi—bu u» .H‘ “ \.Z .2 h. ‘ ‘h :A‘ . ~§ s .r.“‘\._ “y- do . . .. ‘ ‘:~.‘\\-. \V-~\‘. " ~‘ “~I\ .. \b » s~‘~" ‘ - . '~. ‘~‘ Q ~ I -- ._ ‘ A‘ .~‘-: ‘C'h "\ -‘\ b— \- ‘ b~u4 M““ Hl‘ . . . ‘ - \ “‘ ‘ ‘s. ‘ ~~ K‘ ~“ H“ “V‘ \ \s.. s \\“ A" ‘. ‘u ..‘ . -\~ ‘1‘” ‘ .~" 3 ‘h‘ -r._\ ~ ' “-» - a “ ‘5. ‘ “ :~ . ..‘..\ K.“‘~‘ “ \ ‘. ““wt “\- ':~ ..‘ 1“ . K. A “ ‘ -\\\ ‘g" I ‘h ~ §‘ “ h ..\ \ \a““ ‘ . n ‘ ~“k .‘ h .‘ . \ b..‘\ ‘ Ls. .\‘ > ‘ \~.: .\‘W“ . “ ,..-:. “In.“ ‘ ‘ . M ..‘\ . k‘h“ ‘ “‘ \ \\ ‘ \ “‘\ K‘ \F‘ “ \\ a. H ‘ ‘\\‘ \ ~‘ .~ \ ‘ M CHAPTER II CHARACTERISTICS OF THE WEST INDIAN ECONOMY General Overview The Physical Setting The West Indies covers a widely diverse, physical, amiecological geographical area. Its cultural, social, amiethnic configuration is extremely heterogenous. The reghnlcovers an area of some 7,733 square miles, a little Imder five million acres, or the somewhat less than the mate of New Jersey. The region is not one land mass, but anmists of ten different, small land units scattered over axmst area of sea bounded by latitude range from 58° to 78°West. Thus, the capital cities of the two larger tmnitories (Kingston, Jamaica, and Port of Spain, Trin— idad)are over a thousand miles apart. Temperature is flfirly constant throughout the region. However, the mmrage annual rainfall varies from less than 30 inches hiparts of Jamaica and the Leeward Islands to over 300 hmhes in parts of the Windward Islands. Even where the 20 _‘ and rainfall would a m occur when plan rarity of the dry 56 dated number of mo: imml plant growtl ’V uh -....cted territory :i-lris‘l“ ted am is: Lie” to § . arm ' ‘T‘ y . h : N t k‘lree t M)‘ - ‘kl “a . a Aw I‘ \ s «is “\E\. 21 annual rainfall would appear adequate, periods of intense drought occur when plant growth virtually ceases. The intensity of the dry season can be illustrated by the estimated number of months irrigation would be required for normal plant growth. Table 2.1 gives such estimates for selected territories of the region.1 TABLE 2.l.—-Estimated Rainfall and Irrigation Requirements, Selected West Indian Countries. I Mean Annual Rainfall I Estimated Period of Country . . Over the Region'31 I Required Irrigationb Inches Months Jamaica 30-160 4 Antigua 37—52 8 St. Kitts-Nevis—Anguilla 43-59 7 Montserrat 41—75 5 St. Lucia 50-115 2 Barbados 44—85 7 Trinidad and Tobago 49—130 5 a~Represents 20—30 year averages. Calculations are based on "months of irrigation need“; which is de- fined as that period in which the chances of rainfall being insuffi- cient for plant needs are 60 percent or more over more than half of the region. Source: Regional Research Center, Agricultural Research and Its Organization in the West Indies. University of the West Indies, Imperial College of Tropical Agriculture, Trinidad, January 1962, p. 2. 1The three terms "territories," "countries," and "units" will be used interchangeably, unless specified otherwise. o C . 3 Tels uncer.a$ ezuirere: ~ I'_:. unfllr 1yyq q)... fl: ‘ - ‘ -“"“--v ""‘ 'Ovu -- . . Q -" . z ‘- "i"::: ~:--, n- . . ”a. lk--b.. 5‘~-'_- . u Q “‘ ans A Av “A: :‘ I. .‘ . ~ ‘~‘." 5... "‘ ‘- v- Us- . . . | .f"- "A ‘K—NA .- - Al‘s "“ ~ ~l up... I": ovuu‘ " y ‘ . .ig. ‘ - “v u‘qv_ Iqa.‘ 3‘- av ‘ "v.1-.““ Hy . ~ ~. -~‘.— «a ."‘“.—,‘~_‘ NI-.‘.. \ ~ _ . “‘ ‘~ ‘-..~I..»\—u .I v 1-., _ ‘ .. “Kat-Av ". ‘~“ \— -- . b ‘55-‘. “‘ - I“ . .‘_ \y‘ ‘ x7. ‘- ‘ .‘-..: -\ “N‘; Q~F ». -. ‘~:o¥‘\“‘ ~“ ‘ .‘ \ ..v.su~ ty‘ ‘ ‘ . ‘ ‘ ~ . 5‘ ~ H. ~ “-~ sq. ~.~‘»‘ \ “\u \\‘ ‘A l‘-‘ ‘~‘.r. ‘ “‘ h ‘V‘x‘ “ a ....\ .\ ‘M‘\ C ._ \ ‘. 1. “" “‘ 2“\ ‘ §\‘I‘ “ .‘ -‘~." ‘_. 1'- :~. . ‘. R‘ ‘ ‘ - ~._ . n‘ ‘1‘ b \ :H“ M~\ ._“ .‘, r 'I ‘\\‘k \ ~ “ ~\ A ‘ ~‘ 1‘ “\ _\ \‘\\ . “\ '. n‘ ‘ u . k . ‘ "“‘ “ ‘ ‘ ‘ .‘ A N‘ \‘ ~ \‘ ‘ ~¥ use \ \ \ K \ ‘ r . ‘._ V‘ “N“ ‘ . ‘ “M\ K“ ~‘ ‘\ \‘o “ ‘ ‘U \ \~ ‘ \ \ h‘ \ \\. ~ 0‘ \. k” ‘x‘ ‘ x ‘ "\- ‘ .‘ a _-“ s N‘-‘ ‘ “I \"~ \ “‘-. ‘N‘.~ \ i. “V \. ~ r“ .‘ I‘ .n M‘ \ 22 In spite of the demonstrated need for irrigation, very little is undertaken. In most cases, the relatively high capital requirements, relative to product prices, pre— clude such irrigation investments being financed out of business capital. This is even more so with reSpect to small—scale or peasant agriculture, where capital is scarce and tends to be rationed. Even within the more . 1 commercialized enterprises (largely export oriented) in— vestment in irrigation facilities is low. Undertaken irrigation is financed mainly by large capital outlay from the public sector in long—term improvement loans with min- imal interest rate schedules.2 Numerous soil surveys indicate no substantial areas of unutilized good soils in the West Indies. However, there are areas where "undeveloped" land could be brought into cultivation. In such cases, the capital requirement tends to be substantial and far beyond the means of many Of the territories. For many years to come, agricultural production will be dependent on ability to maintain and improve the quality of existing crops and land resources. M 2 . . . In Chapter V we briefly touch on the empirical evidence of internal and external capital rationing in West Indian agriculture, as exemplified by the Jamaican case. Q! .aition to poor 501 - «awn :— ' .1 ' "(:1 tims “a.“ u at ' ' or” “9*" :N.‘ "ariafhgnf LL"; um. In- -a. ‘ 0 e ' “'RAFO (\- o-flo ocrv‘ -vt..:..u u- at.» -v-- . o . w l ' > HA I u u. 1 “3'52.“ v»-\,v..» . "- a..- I o "' “,2 "P!" in “A- v- u... u. “-v .. vs. . -. .' " «a- - ...\ u-A~ :- o.-' new- -‘Iu“ 3‘ . ‘.. A F'.‘ '- \ ~ FA . ~ '- .. ”v.” ‘..I“ hr.- ' O ..V- ~D. U . 'Il. ‘. ~ ‘ A .~ ‘ A .. . ~v‘.: .._V_ ".'."‘\-.-a ‘ ‘0. ~ .‘H‘ ._~~ I s~| ‘AY . a.‘ _ . .~".-~. . w ‘ u _ ‘._‘~ ‘v‘5w: .- ~. ' V-‘g. 0-. \- . 5V- ‘r ... ‘ ‘ -._‘ . '~.~~ ‘ . . ~ .. "n‘ g. “.l "-» 3‘“: ‘- .. ‘ “‘l \:“‘ “"\: ~ ‘\‘\. b 5- x Vs“ ‘ ‘ s‘ ¥ ‘r‘.-‘ ‘ ‘5 q._‘ 2 \~ ‘- ‘s. . \‘ .. ~: ‘ .\“ v. \ * \ ‘\“ - .‘ a \ 2“ H x ‘ ‘~ "\\ ‘\ .‘ "H . ‘ . r .\~\.. ‘\ ~. ~ ~ \ ‘ ‘Rk‘ . a\ ‘ ‘ \ CK ‘\‘\ ‘ ‘\\ ‘\ 23 In addition to poor soils, there is also a wide variation in soil types within and among the units. In many areas, extreme soil variations occur over a small range and over 70 percent of the territory has slopes of greater than 20° with only 5 percent below 5° . Thus, soil type and topog— raphy limit effective mechanization and the range of crops which can be grown commercially. The West Indies probably has the greatest diversity of crOps anywhere in the world. Practically every tropical crop of commercial importance was tried at one time or the other. However, for a host of reasons, many have failed. The range of crops tends to be narrow on the export side and quite wide on the domestic or "subsistence" side. In general, domestic crops or food crOps usually include cereals (rice and corn), root crops, vegetables, and grain— legumes. Inter-cropping is wideSpread in subsistence pro— duction . The General Economic Structure Regional Economic Growth in Perspective.——The West Indian economy cannot be described in the sense of a con- ventional ”national economy." This concept is more appro— Priately applied to economies which have relatively ‘ in! ‘lr'a ecra-ted p..,s-. Q ‘1 A %. U . I I- ' 0 “F“ ‘F u A ‘- 3“ '» ' I ~ -0- a...» ""0 rev...” . "o. ..\u.. up‘A'- -’~ ‘ \d- ' w..u- .. I...” - b.- . Q ' . ~0- t‘w! :I“ 0-;- ,‘.~: ‘ h '- . .u-An‘ U"“’-\.-o_ Q Q c ‘ nil-ta ”an ~‘.~h d _ — ‘ u U...““‘ “~.. . m . ~ . ‘K I ‘.~ -F. “ " .2 _ .— hony--A~h\, b.“ . . . Ns§~ n-A‘ A.'A.“ ~~ F A-— . n..~ ..~‘I ..~ . ‘ s A ‘A ‘ v.” '- 2 ‘5U“..“ \- - I.l . ‘ ~ a -.-..~: ‘Iq :1‘“ A- .! “nu -\‘-\ ‘- . “ ....~ ~Fv.¥~‘_‘ “ ‘“ ~ “. h.‘ ‘ “\““ “.- ‘ Q -h: ..~~ ‘ a. ‘ \ ..n‘.~‘: \ . . ._ . “ ‘ ‘v .. ‘ . .‘ ~ ...: :0 "“3... y “-H“ L-_ \ ,“ u \~\s~ ‘. ‘ ~s.‘~ N :“N “_ \ 5“.“ \~t ‘ Q ~ ‘ ‘ ‘ v. N.‘ ‘ —\\:‘ ~‘\\"_‘ ‘I \- v. x \‘ h . “ n.‘ . . K“ ‘n. ~V‘u‘ ‘ ‘ »-§\ ~n‘ “-\‘ . ‘ “'\‘ ‘- ‘\_‘ ‘\ ~ \ . ‘~. - . ‘ ‘ ‘§u ‘ ‘H‘ \ a s \..t Q\l‘- 5“ ‘ \ y \ 24 well—integrated physical, political, and economic struc— tures, as is the case in the older federal systems such as the United States and Great Britain. The formation of CARIFTA might well be the basis for evolution of a na— tional economy in the conventional sense.3 However, it is quite evident that the current heterogeneity of eco— nomic and political structure, as well as economic poten— y . tials, preclude such a concept at the present time. To exclude the conventional "national economy" model does not, however, preclude general analysis of an aggregated regional economy. Many important physical, political, and socio-economic features are common to all of the territories and present a natural basis for an aggregated analysis of the region. It is safe to say that the units are “underdeveloped," unskilled labor is abun— dant, sectoral and per—man productivity is low (relative to developed economies), capital is deficient and per capita output and real incomes are low. In addition, the majority of the territories are mainly agricultural. M 3A brief outline of the objectives of CARIFTA was given in Chapter I. For further information on the working Of the Association, see: Government of Trinidad and To— bago, CARIFTA and the Caribbean Economic Community, Port— of—Spain, July, 1968. Wm is one Of t msignificant 9109‘ 5:}; territories. Aseemingll' ec< mes is the high armies coexisting W interize :nderdeve :: countries are r Liz-4:1 . . . -rrar standard : H . \. :-" Ar 1.“. soxe A -. than . ‘hyi‘ -- C: the or: “b "He: eerwmm' v.4 ’ tumr “. ‘5 u * a .~ £31" ' _ .a l“ - “CC. ;e\‘e15 C: ifi Agriculture is one of the largest employers and accounts 25 for a significant proportion of the gross domestic product of the territories. A seemingly economic paradox of the West Indian economies is the high degree of "monetization" of the economies coexisting with those factors that generally characterize underdevelopment. The cash economies of all of the countries are highly advanced, and the non—market sector is relatively small in comparison with countries with similar standards of living. It is estimated that the non-market sector varies from 12 percent of the gross domestic product in the Windward Islands to 2 percent in Trinidad and Tobago. In comparison, it is estimated that this sector in some African states may reach as high as 65 percent of the gross domestic product.4 When economic development is measured in terms of real per capita incomes, significant gaps are found between the income levels of the islands and those of the developed economies. It must be kept in mind, however, that in terms NM 4 . . . United States Department of Agriculture (Foreign Regional Analysis Division—ERS) , Jamaica, Trinidad and Toba o, the Leeward Islands, the Windward Islands, Barbados and British Guiana: Projected Levels of Demand, Supply, Wof Agricultural Products to 1975 (1964), p. 5. ~u."- np-c'gvog :...:.: bvdu-I- o» O "a: 2 “I Nu.-\.d, .o o . .1... ad ”a: ‘O.Ru—: |" -‘-\vuu-.\. ".O. “0u\ ‘- A V‘ :- wi“. ."v ow.‘.~. . .. —\ Ar Q \.....~ .'. v . “an 3.1.. ‘ v D A 'r‘ .._ A.” ...U Q “P“! n a M..\A s, . - a A. F. \ ‘ \-— u - u A N -R .— a." .— ”-yfivv 26 of the relative position on the global income scale, the West Indies places quite favorably among Western Hemi- sphere countries and is substantially above countries of Asia, Africa, and the Near East. Table 2.2 shows the relative income and population positions (as well as aver— age annual rates of growth) for selected Western Hemisphere countries for selected time periods. In terms of per capita GNP, population growth rate, and per capita income growth rate, the region compares favorably with other Western Hemisphere countries. Specifically, World Bank estimates indicate that the average annual rate of growth in per capita income was around 2.5 percent between 1961 and 1967. Over the same time period, the average annual rate of growth in population was approximately 1.8 percent. The 1961—67 regional figures disguise some important var— iation among the territories. In general, the larger ter— ritories of Jamaica, Trinidad and Tobago, and Barbados have a per capita income which, to a great extent, re— flects aspects of the economic base of the individual islands. The figures also indicate that there have been Significant changes in the individual economies over the past two decades. There is not a strong correlation be— tWeen the level of per capita income of the individual 27 \..._ 5??:s :x. 2:... m-...\-.s\v . .u. - I :. ?.v .. :_\ ta;:; if avo- ..~.- .wae: \ . Walnflxnfksoix . c _ 1. _ .._ .s -s~ \l...\.\~‘... “its .. H" aux H“ Mum‘s... ~.~._~— \ ..\ T... -.s..:x- m.H N.m 00m HmH.WH MHQEOHOU m.H H.m OHM th.v wamfimflwsm ©.¢ m.H OHM Hm mDmHumfl m.OI v.N 0mm mmoew MQSU m.N H.m 0mm mwm.NH Dumm B.H m.m Ode amm.a moflm mpwoo ©.N o.H 0mg mam mononumm m.a o.m owe onm.a MUHmamh m.m m.m one nma.m oaflnu m.N v.m Omw Aboumv OOHxQE mva Op 00mm m.¢ m.m 0mm mmmua mfimqom m.a s.m ooh oao.a omunos our ouoaeflns m.a ©.H oom mmm.mm waspsomnd H.H m.m owm mmm.m mHoDNmso> N.® m.H OHN.H mm@.m ocem Opuosm 00m.aw 0# comm m.m m.H owm.m Hv¢.om momsmu m.m ¢.H Oh©.m mHH.mmH monopm pouHsD oooimm H®>O uuuuuuuuuuuuu nqoonomuiuunu- mumaaoo .m.o oauusore muuHHoo .m.s MUHQMU Mom mzw H Gospmasmom H H H m . H spammo Mom mzw H sowpoadmoa u mspssou . whooopmo ovum apaoaw Hoossm H H u u oEoosH mogmm QHBOMQ Hmssqm omouo>¢ paw .coflpmHsmom .Ahwmav opammu Mom pooposm Hmsoapmz wmonwrl .moaupqsoo oumrmmasom quorum: empowamm now .ieolaomav .N.m Mdm49 28 Mom .moapoasmom .moma .nonfioomom ..U.o .soumcflflmmz .mopmm gusouw paw nonposm muflmmo "mmapm qum cHHOB .usofimoao>oo pom cofluOSHumsooom How Mamm HosOHpmsMoucH ”wousom NFQ‘NQLfir—IOV‘NV‘ MOHHHHTl—{q'l—lm l MLONOQ‘n—lhfl‘mowfi‘ OWNMMMHMNI—iv—i on OhH OHN OHN OHN OVN 0mm 0mm O®N Ohm meiv spare mH>HHom usoosfl> .pm mausa .pm Howmsom mammmmm mmsmmumm mohdocom HHNon mmmmmmmm OHHQDmmm GMOflnHEOQ oaaadoamlma>ozlmuuax .um ooaw corp mmoq mmNW 0“ OOHW ’ r ‘ "a .. cries and r... ~ . .dfll'. . * rr '0 ya ..- urn-On: “5-: .‘.i "' Onion—9- . i H g ‘I ». u..fl_“ - ‘ “u. "O\I\.- . ‘ : . .. _ ~ u I... v-...”_' b..-» . . ..... s a ‘ ~“_‘ . ‘ .—~‘ 1‘“ ~ tun-C i. “.|.‘ \‘ "’u a» .-_. ‘ . - .§~;- a. :“5 “u . .. v... ~;~. ‘..‘ ‘4‘ h a .‘u‘ ‘ up v‘.:: .‘ ‘ h v. . "5\ -‘ -H~‘ W., . ‘ ~~ _ A 'x_. ‘ v N “5"a‘,‘ “‘ \ ~ 5‘ s . 1‘ “'y‘ \~ . - ~ . ~ ._~ .‘ I» ‘:. ‘¥‘. .““‘ fi- ‘ i . I “ I - --‘K O \ ...; - m. ‘lfi‘ .N 5. ~ ~ v‘u.-‘.-‘» . \ “‘\“ ~. “‘H~ ‘ ‘¥»‘ - . ““‘V ‘.I M .‘ \‘~" .I ‘ \ u ‘ . ‘ ‘ \h» \»I‘ ; y; :‘ ‘ I ‘~\\.‘ “ I-‘L ‘ i ‘V._.‘ I .‘h ‘.H: QC“. . .. ~\ “ .. ~-“ ‘ .\..~ ~"». ‘\‘ .\ N.” \ \0:‘ \ ._M ' “‘~: 29 countries and the rate of growth in income. During the 1950's and early 1960’s, it was quite plain that the - countries with the most rapid rate of growth in per cap— ita incomes were those countries with the highest level of per capita income. During the 1950's and early 1960's, the region experienced some of the highest average annual rates of growth in per capita income in the world. To a great extent, this unprecedented growth was largely attri— buted to Jamaica and Trinidad and Tabago. For example, between 1953 and 1959, these two countries registered annual rates of increase in per capita gross domestic product of 9.8 percent and 9.5 percent, respectively (cur— rent prices).5 Very few countries came near to approaching this performance. Beginning in the mid—1950's, the region started registering a relative decline in its rate of economic growth. Bryden estimated that between 1956 and 1964 the average annual rate of growth in GNP of the region was m 5See Table l—Appendix A for comparative growth rate Of other countries over similar periods. Adapted from Rempersad, Frank, Growth and Structural Change in the Econ— omy of Trinidad and Tobago, 1951—61, Institute of Social and Economic Research, University of the West Indies, Jamaica, December, 1964, p. 4. u . '0‘ to cynic. a u 1.. v h.fi3. RJ 8 {—5 . C -r.“‘~-~ :v“§: :v-n “.8...“ . .sc-.¢ ‘N. .-- . u. . ”I‘. “.5" r .~ "v. H .. an \ ~- '“h n._ ecu, . ‘ '3‘: -"» ~ Q . .“ p - “A“ ~ .. my»--”" ‘— ‘.-' ug.’ ” . . . .: " .9! “CV N '0.‘ ‘1'. ‘2 ~--‘ . h . ~ n," H ‘ In B'\‘ ‘~‘ u‘ .‘ ~ ‘ ~\\ 5. I turn. ‘~~~ _ |;-‘ ~\l~ Q R U "r .F ‘ ' ‘1‘ . I .“ ~ \ In.» —.' ~." ‘ I &‘ .. a “- .\- §sug l‘::~ .'v ‘ ‘ ib- ._ .5 "“ VA. ‘ §. \ . ~- ~ .. . ‘: ‘:~.. ‘ \Q ‘ ‘\\-‘ \ . .. .l «. ~D :“‘ ‘ N ‘ .-. ‘-.. figsk‘r“ .‘ Hy ‘: \‘ . -\"‘\4 .“ ‘- ‘ "- \ \‘\‘ ‘ h ‘ ‘ s. .‘ .~~\ \ ‘vfi ‘ “\ I“. ‘u v‘ \~._\ \..“ V .‘:2 K“‘ ‘ ‘M. \ 30 about 7 percent. Adjusting for population growth over the period (about 2 percent), he estimated that the actual rate of growth was about 5 percent.6 The general slowing down in rate of growth is reflected also in the growth rates of Jamaica and Trinidad and Tobago in the late 1950's and early 1960's. Bryden's figures show that between 1956 and 1964 Jamaica's rate of growth in GDP had fallen to 4.8 percent (a decline of 5 percent from the 1953—59 period). Over the 1956—64 period, Trinidad's growth also declined relatively, but less dramatically (from 9.5 to 8.2 per— cent). Table 2.3 shows the estimated annual rate of growth in GDP for the West Indian territories over the mid—1950's and early 1960's. Comparison of World Banks figures with those of Bryden and Rempersad shows a significant decline in the region's rate of growth over the last decade.7 This raises serious questions as to the region's ability to cope with M 6Bryden, John M., The Contribution of Agriculture to Economic Growth in the Former Federation of the West Indies, 1955-65. Department of Agricultural Economics and Farm Management, University of the West Indies, Occasional Series No. 3, Trinidad, 1968, p. 3. 7Rempersad's figures refer to figures quoted in earlier parts of this chapter for Jamaica and Trinidad. See Table l—Appendix A. - Anyone, Vic—Ink a 2m» v. dub . l e... ‘ u, 1‘ - 'Mzo}. ‘ 0.. - . . -\.‘~. 1": ‘:“‘ \' ‘ . \.- \‘;‘.“~ ‘ .. \-\ ‘~‘ n. N \\~ ‘ I ~"‘ ‘\.\ h ‘- a . " ~\~ ;‘ Q“.., s . . N '- ~N.‘ \ “s e \ ~.: -\ .‘\ E .“ u .\.. . ‘-.\:\ ‘ x \ M" Q\\ \ ‘~ ~V\\ .._ “NM \ i. ‘~ .‘:\: ‘ . ~ \iv. ‘\ ‘~. \‘\ Q ‘\ .‘u‘. :“ . N \ \ \ \ ‘ ‘ \ x M ‘ . h~ \ .\. N \ x .s‘ . \ ‘ ‘\‘i W '. R‘ ‘ ‘.‘\ \ “ “\y\ W N K ‘ \ .‘N‘M ., ‘ Q's- \A\ . \‘. ‘\ ,N“\ a. g “x. ‘h. \ \ H ‘\ i . H D ‘x. I]: 31 TABLE 2.3.—-Average Annual Rate of Growth in GDP for the West Indies for Selected Time Periods. . . Growth Rate Country/Group I Period Compared I (Factor Cost, I 3 Current Prices) XEEE Percent Ba$ados 1956/57 - 1964/65 5.5 Grenada 1957/58 — 1963 3.2 St. Vincent 1961 - 1963 3.4 ‘ St.Imcia 1961 - 1964 6.5 Dmfinica 1961 - 1964 4.5 Mtigua 1957/58 — 1964/65 5.7 Momwerrat 1957/58 — 1964/65 7.3 St. Kitts, Nevis, Anguilla 1956/57 - 1964/65 3.8 Average for "Eight" 1956/57 — 1964/65 4.9 Windward Islands 1956/57 - 1964/65 4.0 Leeward Islands 1956/57 - 1964/65, 5.5 Emmados 1956/57 - 1964/65 5.5 Jamaicaa 1956/57 — 1963/64 4.8 Trhfidad 1956/57 — 1963/64 8.2 Average "West Indies" 1956/57 - 1963/64 7.0 a . . . . Jamaica revised upwards on the baSis of figures supplied by Mr. Oswald Nurse. Source: Bryden, John M., op. cit., p. 3. such factors as employment, balance of payments, and in— creased demand for food and consumer durables. It also raises serious questions as to the dynamics of the re— gional economic structure and specifically why the regional economy has apparently slowed down. To answer some of . ‘ ' ,5 AH” U in , 'lz': up ' 1 . b . *‘ ”3v ulus}.-u.. v ’i q r”. d ‘ . w" A: 7P5 YA"! . I. - I sub U- 9..» a- V’ “. I . 1F . -.p A '0 A ‘ I. Q .vP'n In. F p. y.- “.."."-“‘I doc»- \— 4 . ’ .. nun. ., .“ ~ .- - 7 ‘ u... ‘ u..--.‘- -__ ‘Iv-.. U ~ ~ ..--A “7“Au‘ Ann‘s _ ‘ ' ' .— ' “"-\¢..‘- Vvv.- H o “ .mvfia 8‘ ..u _. a. o ». ‘ A § ‘ " v—h-YA F~ -"“.-u-..u ' ' .q a...“ .— " ho.» \ ‘Aa. ‘ - .4,- r -' .4v-. -. -. . '.. . ud . ‘ 0.. ~ ..~ tab. 1 _ «fiw‘v. U-.. u. nu V“ ‘ ‘ u-‘ ‘E “-.u M . I r. n; (J (I) l . n {I} (J; 111 32 these questions we will explore further the struc— ture of the regional economy. Although the regional economy is strongly agricultural, there are wide variations among the islands in terms of the importance of agriculture in the national economy. The most complete set of figures regarding the relative contribution of agriculture to the GDP of individual territories are for 1961. In that year, it is estimated that the relative contribution of agriculture to GDP varied from a high of 43 percent in Dominica and St. Kitts—Nevis, to a low of ll percent in Trin— idad and Tobago. In general, agriculture ranks second to mining and manufacturing in terms of regional contribution to GDP. Table 2.4 shows the proportional contribution of the various sectors to GDP by territory for 1961. If the table is taken at face value, there are strong suggestions that the more advanced economies of Jamaica and Trinidad and Tobago have undergone a substantial :. \ ~.:\~.\ pl» v — .. \- D \ ~ I . CC; ..... a .C \.I_ s-: IIIIIIIIIIIIIIIIIIIIIIIIII... ..-I. .. II.I..lIl. II .II I. . . ..~.s..-.~.—:.I . I , . .I .. IIIII-IIII.II.1I A. I I I I i‘llil I I I I IOI . . l . | . I I I | I I I I...v r... . av. I I .f. ~.:....... . I ~...~.~ I ‘1‘. a...... \x....;I I o ca.o- I..-.a-_-_..3A_I _ I u ..I ...... I . - . ‘2 I ‘ I.s-~s~e.:.u x ufv-.a.nuv._.0 I I _...-. I I ~..-.. I ~..—-. I ~.-~. I I \v~ \~s-s\.\ IIIF-I.~90>Aunvl uuv canrnv. I I .--.~.—.I I I I a h\./\ I H u H .~.1.u-\/-Iw.a.. II II.-‘. .-..- s -..‘~—.I~.-‘ 5‘. u..-\-..-.F\II.-I~‘ ..-.~ s....-~.~II II 'll Iflilrln 1" .I.- I..l .IIII . I . . I I I I I u I I I .... ~ I IIII unuaI - II. I7} I .- u u. u I. I o I. a I I ..n-.I.I I II. '7 I u I ...u.. I I.~ , a . . I.... I. . . I.. . I. . I ‘ ... . ~ ... I ~ I I II. . . I I I. I u I. ., . I I x . \.. I .OOOH ~m0HgmeMpm HMHSpHDUHMmm QMHUQH ummz mo umwmwo Q .N .02 meme HMQOHmmooo ..H.B.D .uamfiwmmcmz EMmm Osm wUHEocoom HwyngdoHHmd mo unmEuHmme ”mousom I . o . . QH0>OOH MO pa m m00H>Hmm u “GOH#SQHHumHDumEHHSMOMMSQMZ”GOHUOSHumCOOn OOH m m m h OH ON O OH mmHMEZOOU HHfl OOH OH m w m hH m N Hv ucwonH> .uw OOH OH m w m 5H m w Om MHUSH .pm OOH OH O O H MH H HH mv MHHHsmcd \mH>wZ\mupHM .um OOH @N w m m HH m m mm pmnummpcoz OOH 5H O O H vH N HH mv MUHCHEOQ 14 OOH OH O OH O NN OH O wN mowmnumm A5 OOH ON 5 m w OH O mH mN MUDQHmm Uzm mstpca OOH OH 5 b m VH N OH mm SoomHHMmo Ocm mcmcwuw OOH OH N O O OH MH m HH OOMQOB Ucm OMOHGHHB OOH 0.0 m.O b.wH m.m O.hH O.VN m.HH v.NH MUHMEMO unmoHDm m ufiwfi mmmGHHstnmnonmMMOHmm whom m moHMHMOU m OGMMHE m @GHHQGGHmemeSpHSOM Hmuoau u U Imqmna . . U . flaw IHumm ” P3560 .mefi ~m®flUGH ummvB .fiflmHHO HMHHDWDHVCH \HQ GOHUUSCOHnH OHuWQEOQ mmOHO On. GOHHDQHHHCOU HwGOHuHOQOHmII.v.N MQMJNB C we: sf economc St! a “I 4 q II'UO “I nf‘" "f 5: :e u: L: “Ur v.. 5'" . a F‘uw‘u 'p ('7‘: rs: 9- r C "cc-o: 1;. CU; U- 9.. e . .. .90.:3 :: I'hnfl;-~‘p~ I "a n- - .M-\.d-.~.nu - O ' ‘ u‘p.-.yvp~ "Qua a M -h-u-d.-u- -..u Inf-:3» C u. .. . I". A -~ a :‘v _ _n ‘ op: . v.‘ 's ' ‘~‘O'v-- v...» -..‘~ ’ N-_\Ag~-‘ '~. .. In“ __ ‘ -. . u -""\v- - g .“ '— yd. ' ‘— - v“ -- II. . A‘ N \..- ':“"“v y u... " \r.¢-.V__- . . ."'“--n,‘ . ‘- .“'~»— .1 ‘v:":v~;-P- . - v‘i‘.'.-"‘. Q. \ "‘flh..‘," §“‘ — ‘vx. »--_“ .- ‘ —-M 34 degree of economic structural transformation.8 However, this is not the case. The relatively low shares of agri— culture in GDP of these territories should not be inter— preted as indicating the evolution of an industrial and manufacturing base. Instead, the share of agriculture in GDP reflects the inability of the agricultural sector to increase its productivity, and thus increase its contribu— tion to GDP. Even if we make adjustments for on—farm 8See Chapter I, page 13, for earlier reference to "structural transformation." It is recognized that com— plete structural transformation in the economic sense, i.e., equalization of the MVP's (marginal value products) of factors between sectors is never fully attained. Thus, some form of "dualism" persists in highly advanced econ— omies. For example, in the United States, incomplete structural transformation (and hence dualism) results in divergence between the MVP‘s of agriculture and non— agriculture. However, in such instances, the dualism is largely due to Pxi(acq) > Pxi(salv) within the agricultural sector. Under such conditions overcomm1tment of resources to agriculture occurs. Glenn Johnson argues that many less developed countries are beyond the Schultzian equilibrium where MVP's equal marginal factor cost. Instead, they operate where low MVP's are below MFC based on acquisition price, and above MFC based on salvage value. Thus, on a private account many of the less developed countries actu— ally overcommit resources to agriculture, while on a public or national account resources are actually undercommitted. See Johnson, Glenn L., and Quance, C. L., Overproduction Trap in U.S. Agriculture: A Study of Resource Allocation World War I to the late 60's (Forthcoming work sponsored by Resources for the Future and Michigan State University) . Also, Johnson, Glenn L., "Factor Markets and Economic Development," McPherson, W. W., ed., W of Tropical Agriculture, University of Florida Press, Gainesville, 1968, pp. 93—111. "no. ’ ‘- 3 mac: no mile: ""1: he re'l 9* -. 2'9 ‘ a- a-u-‘vi . .. q *; :n-nm- S Vvv oobepbh (n '1 b. a. (b ) (V I .‘9 I - ‘ ..np:onp A- :~'.’ ”I. .- h..".'. v- ‘Vbhvu- :— J V n .. ‘ A «or I I)— —~ hbosu' -‘- v y'. . '5‘a . ~FI‘ -‘Nru‘-_. . ‘ ' y. 5.. . V; -’ .A“ Y“ I-oaguu.‘ -‘ h '— ' -..\.I -‘_ .__ -V‘Av‘fl'fivA‘. a; 5.. . :‘w-_-_._ ‘ - \ 0-" ‘ ‘- I— ‘N‘ u..- “V. "'-.; . . ..K . -.. _‘ ~ ”a“ .. "-- n -‘ "h‘- I\ ‘\. I .‘I ‘\ Y.v‘\ ~ ‘ " §‘ h‘ ‘“‘I A .._ . .‘ \ ‘n ‘ ‘ ~ ~ ‘ 1 a“ uu‘vu. ‘H V“ ‘1». . n “ I. “ ‘ I“ ~ “‘~ ‘- ‘-\“\: ‘ ‘§§ g 5 §‘\‘. \ n!_‘ I I_~ \ H‘ m“ . I‘ \~ ‘ u‘ ‘ ‘- ‘ . \- ~5 ‘ H“ . II"\‘ ‘ \ z». ‘ l‘\ “..~§- ‘ ‘ \Wu “\.H -I.“‘\ I u I‘ \ ‘ \ " ‘~ \“\.,‘ ‘ ~ \ i ‘\ ‘.K k. “u ‘ -\A w. I‘ :‘»‘\ ‘ \. 1 , “ ‘. ‘ ' \N \ .‘.\ . . ‘ k ‘ \Q “R ‘s - ‘\_ ‘-.: x‘ ‘ ‘H\ -. ‘ ‘ x ‘ k ‘_ s i ‘I‘: ‘ ‘ ‘.\ “K I \ ‘ N \ \ I ‘\M N.‘ .I -‘ \' ‘~\. I. ‘ ‘\ I .. ‘ . x ‘x. ~_ :- \ .\ "\ ‘ It I ‘- ‘ \‘I .:\~\‘ \ I \\ ‘ ‘z »: ‘N \ ._\ ‘ _ ‘ ‘ ‘ t \s I I \ x ‘ \‘ :‘\\“ ‘\4 N n‘ ‘ ‘I. “~‘ ‘ a \‘ "‘ Y¥é “‘\ ._ :\ \ ‘K‘. \ \~‘_ \ .‘\‘ ‘x - ‘._ Vs ‘ I \ ._\ \‘ k 35 consumption not reflected in GDP, the picture changes little. The relatively high degree of monetization of the economies makes the GDP figures a fairly accurate indicator of agriculture's performance. In Chapter III, this point will be explored further in terms of empirical evidence. Another measure of the relative importance of agriculture in the regional economy is provided by: (l) the proportion of the total population living in rural areas and (2) the agricultural working force as a propor— tion of the total working force. Table 2.5 shows the characteristics of these components for the year 1960. The table shows that some 68 percent of the region's popu— lation is rural, while some 33 percent of the total work force is engaged in agricultural pursuits. For the 1960 period, population density per square mile of land aver— aged about 402 for the region as a whole. Density varia— tions between individual territories ranged from a high of M 91t should be noted that much of the data on West Indian agriculture relates to 1960. This year coincided With the last time that an Agricultural Census was taken in the region. Much of the 1960 data only became avail— able in 1965. Preparations are now underway to conduct a 1970 Census of Agriculture. We feel that there have been minor changes over the decade and so the 1960 figures are IEpresentative . A.I\.» .II._\. ..~....I.I...I_ I ~....~.:_:.\_ IIIIIIIIIIIIIIIII..II.III--o~.-.I.—. I . I. |i..! . I I ~...~:_~.~g 4.2.. .n..-.:-I.... 51.11..sz .3. a. 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I I II. .73 I .III 36 .mmma .moflpmflumum HmHSpHDUflHmw quUQH #mm .mmaccH pmwB mgp mo wufimum>flco .pcwfiwmmcmz Sham U 3 mo umwmflm w KN Gm mUHEOGODm HMHS¥ .oz mwflumm HMCOflmmooo adoflhmm mo unmfiuhmgwa quHDOW «.mm m.hw mna.moa.m mmm.wmo.m wmm.moo‘fl mmHmazsou qq< n.mw v.0m oov~am www.mm nmm.ma pawoqfi> .pm H.mm m.mm woa.om mmm.on mam.mfl aflosq .um H.mv m.mm mmm.om mmm.om mma.wm maaflsmcm \mfl>w2\muuflx .um n.ov m.¢m nma~ma mvw.oa va~H pmnuwmwcoz o.mm m.o> mam.mm mmo.ov mmw.ma maficflaoa mm v.m> mum.vmm Hmm.me vvm.wv mowmngmm w. . . mmv.mm hmw.HN mUSQHmm H.Hm O ow owo Wm Ufiw mdmflpflfl . ~ ~m> mem.m soomfluumu Mow? m mm PQQ mm VOM UGM GUMCMHU . owa~wnm ommnos m.mH m.vm mhm~bmw mmw mvw 6:6 Umvflnflna m.on ovm~®om.fi mom.>ma~a mvm.mnv moflmamn m.nm gogagfl unmonum coaumadmom nOHpMHSQom mmwufl mmmud muucsoo mnaxwoz HMHOB HMpOB mo Hmuoa HMHSM :MQHD MO.GOH#H0m0Hm GOHHHOQOHQ mm amusuasoflgm¢ m m¢ Hwnsm 0H 5 Huumflmxl.m.m mamms HMHDM Ufim nMQHD fimwBUmm GOHUMHflmUm m0 S .9 Q mm ~mmmHm .OmmH .mwflvflH U B 1.1.13 oersons per 5332 . u “A . av. fi ”‘7'. .MI J33: 35 C e.- “th . _ I ’2'. 'FzO .pa 0 . flaw-a- . g... - _. D Uo-w u". Ov| - ' v ."‘V‘~An ~ - _ A .¢-n ""““CH 3" a \(‘J J- in..." -1 .--‘ h l.. “g, ‘ ‘ \2Vn...‘- 1] A“ ‘I.. II) 111 (II J I I I J: l 37 1,413 persons per square mile in Barbados to a low of 192 in Dominica. The pressure of population on the land base is even more dramatically reflected in the fact that the density per square mile of agricultural land averaged about 980 in the same year. Territorial variations, with reSpect to agricultural land, ranged from a high of 2,022 in Barbados to a low of 515 in 1‘ H Antigua and Barbuda. The pressure of pOpulation on the land and the disappointing performance of the agricultural sector have combined to create (among other things) chronic unemployment and underemployment in the region. Brewster and Thomas estimate that the region has about 280,000 persons in "open" unemploy— ment alone. At the same time, the population of work— ing age is increasing at a rate of about 140,000 a year.lo Given these dimensions of the movements, it has been estimated that the level of Open (structural) unemploy— ll ment in the areas ranges anywhere from 10 to 18 percent. loBrewster, H. and Thomas, C. Y., o . cit., p, 60. 1Employment figures are not accurate. However, a few studies show that unemployment ranges from ll to 14 percent in Trinidad and Tobago and 10 to 18 percent in Jamaica. These unemployment figures are thought to be rEpresentative of the other islands. See: Harewood, J., "Employment in Trinidad and Tobago, " w, a " U. IIuV . \l.... v“. a A. . ‘Y .wv-..u 01v ‘- v 1. .I..'.‘ AA— - “A ‘ C k... — a. F F .- vvo..h\..v... . ‘. -. - _ fl‘ \ . \..-.. ' _ _r:: ‘ ‘ '..~ “‘Mu \. a “ n -_ I;a. -“.- ‘ “ b" \_ nah ‘~5. ‘~¥ .\'u x—_- - n - - ‘n‘ x-.. -— 3‘ _.-v ‘: ‘ w~ n” ‘ \ ~ \ ‘ “m.“ - \- y “ “ 5‘s ”‘1 a \“x x‘ h \- ‘- 3.x- \y ‘ \ .“ “ . -. ‘ \ ‘ .. "w 1“ -‘\ -._ \-‘ K \ ‘9'. \ \. 38 Table 2.6 shows the area, population, and population den—- sity of the region for the year 1960. Unique Features of the General Economy Moving now from a review of the physical setting and general components of the regional economic structure, this section will review some of the features we consider unique to the area, and thus, having substantial implica- tions for long—run develOpment planning and implementation. Many of these features evolved out of the unique historical background of the region. Economic Growth Without Development We have already referred to relative movements in growth rate of per capita income and GDP for the region over the last two decades. We saw that the region averaged M No. 1, December 1963, Central Statistical Office, Govern— ment of Trinidad and Tobago, p. 68; and Government of Trinidad and Tobago, Draft Third Five—Year Plan 1969—1973 (1968), p. 46. Also: Government of Jamaica, _F_i\Le_Y_e_a£ Independence Plan, 1963—1968, pp. 33-37. . . ~......\. avg-m\\— mm—flh A.\-. \ q s. v I u \ \ .x.u‘ \.\ .\ \ ~. ...\..\.2...\_ ... \. ...: . .._.. \ .... . -. .....~..’\ n. ......N avg n. n .-n.~.\\.... .I \As \-~.‘... «x... u n on... I: - .HD 0 .. ~ a I\ h a. - ~n s ~ ~. . ‘ . \./\ u. ~.. v ~ I\ K o. \\ ..~. ' . 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HHN.H Now.H wa N «om mam moo H m we no :2 . n H mouom m meHE ” monom m GMMMWM mosmq “ «on... . noeumgdom H 000 . u mamas...“ H 000 . . @3560 . Hmuoe u n . u . HMHSNHDUHHmfl ” . . . "mo waflz OHMSWm mwhm HMUOB . 0 fiOHHflHDQOQ GEM .meH .mofiwGH umwg .hpfimfi Q .EOvaHSQOQ \MwHfill.w.N MHm ‘ “x “V.“ ‘ ~ ' N- M‘\\.I . “\I ‘ ~ I W _‘ \.. w. ‘ ‘-\ s .. . § .. “ . “.-:‘\ ~ ‘ I N ‘\\I\ ;,. .- p “Q)- ‘ \.~ .‘ ‘ ‘\ ‘ > n ‘\ ‘ ‘ ~ A ‘.. ‘ '5 \~ . ‘ \u ‘ ‘\ . ‘ s‘ ‘ ~.‘ “hi; \ ‘v. ‘ “ “‘ut : . .x . ‘ I ‘ K.‘ ‘~. .‘ “ ‘\ \ ‘ \ x. . \“b\ \‘ ‘- \ u -. ’ iflm Jamaican and Trinidad and Tobago economies. Brewster amiThomas point out that between the 1950's and the mid— 1960's both Jamaica and Trinidad and Tobago appeared to hawaadded substantially to their manufacturing base in tenmsof quantity and range.15 This period coincided with the period of unprecedented growth in these two economies. Thehrstudy shows that over this period the two countries increased more than fourfold the real output of their unnufacturing sectors. Specifically, Jamaica's manufac— muing output (excluding sugar and alcoholic beverages) wasxmlued at some 144 million West Indian dollars in 1963.16 This is approximately equal to 12 percent of GDP and averages out at about $75 per capita. In contrast, 311951 its value of manufactures was some 33 million WefizIndian dollars, or about 8.3 percent of the value ofGDP. In the case of Trinidad—Tobago, the figures were 106nd11ion dollars in 1962 or 10 percent of its gross &mmstic product. This averaged out to be about $132 per capita. In 1951 its industrial production was valued at m 15Brewster, H. and Thomas, C. Y., op. cit., Chapter 3. 16 At current rate of exchange, $2.00 W.I. = $1.00 ' U.S. At predevaluation rate, the exchange rate was approx— imately $1.85 W.I. = $1.00 U.S. "Ffl'fi a relax-1": 1'. Ové‘ v- ‘ . I . nn-AI- «1», DA :v-n ‘ an -:‘..u db ad ‘1.“ -aabn J . . . . - “ "a ':f="°'c v: a 0...... ov-‘v-vv -bfivyI '- ' - ~ . :u ""‘"‘:h_ Rfl‘fln n... ......u‘-& .Vfiuy U - - . ”‘V PA. A- ‘ .- ‘ _ up: ".". .V‘O. ‘ '0‘“ - n _ R I: , ‘n-I I I! ~ ‘ one In. a..‘ ”iv U .. a v- u . \ D. :-«.~‘ ‘“~ lu' .. \- F a ‘- ‘..“V“ ‘4.“ ‘ I ‘I. . "'.Jn‘ v22nsn—.. “"I --..: b—. I ‘ ~’:..:-~Y ‘F' '-s“|.'~ ,.. V‘ ‘~.\ . . ‘Ih- ~ ‘ “‘ u \ ‘ . ‘~- - 5 Q ‘- ’ .I‘A‘ A ‘ - ‘9‘. \- as ‘Q h. ‘3 a A. "-‘.‘ ‘vs..._ ' ‘ s s-,,‘u 6‘“: L - “k - ¥\..~ ; ‘Q -~."..‘ I v I' ‘ V‘s ~ \n\ “'~ \: «5 ‘ ‘ ~~A u . .. M‘ I ‘Y \ a “ :a " vx. ~~ \- § .. ‘.‘ y ‘.: :5. N “V: "‘v-. ‘ ~ . N‘” .. .9“ ~ ‘ \ ‘s. Q“. ‘ ‘ \ NW“. “i \H ‘ H“; N o. ‘s.\. — ‘4 ‘~ ‘ u‘ \\ “ ‘1 K N‘ ' W ‘\\\b A“ \\-\ ~\ ‘I . s \ ‘\ ‘\ N. ‘ -p N V, R l k s \ \ \- N ‘I 1- \M‘ Q h\ ‘ ‘~ g »“ . K\ .‘: k . s ‘. ‘u‘ N K “\- CAI. \. 43 24 million dollars or 7.8 percent of GDP.17 The figures indicate a relatively low rate of industrialization in the region up to and including 1963. However, the disparity in the relative rates of industrialization between Jamaica and Trinidad—Tobago over the periods warrants taking a closer look at the industrial trends in the two countries.18 Tables 2.7 and 2.8 show the GDP of the manufacturing sec— tors of Jamaica and Trinidad—Tobago between 1959—1963 and 1957—1962, respectively. Brewster and Thomas showed that over the 1957—63 period, Jamaica's average annual rate of increase in in— dustrial output was about 6 percent. Industrial output maintained a constant 12 percent share of GDP over the 1959—1963 period. More recent Jamaican figures show a manufacturing output of approximately 225 million dollars in 1967, or a 35 percent increase over the 1963 period.19 The average annual rate of growth in industrial output was 9 percent during the 1963—67 period. The annual growth M— 17 . Brewster, H. and Thomas, C . Y. , op. Clt . , pp. 64—65. 18Ibid., p. 63. l9Quite possible some of this change was due to Changes in the general price level. 3.3— N. .. . . .vIv ..... a... ....I 5.... S... I-.. - .. ....;.\. T. .x....~§7.. .1... \......~l\x.... ....s\\~.i~..\.....~ ux .s \\\.\\\n\ \ ... -\\\\ . ?.\\* I e. I put? .Iu \ I. «I I: ..-\. 4.-.. -\ 4.-.. «:2. . -..-.\«... w...\...~..\..i. .....\x...\x-..\ cc»: 3.... 5-... ..-.\. 3.... « .....:... -..-N..\ \lxxés I..|.Illlu|l..l.ul.lll1'.ll. |.lvohl..-p.v-.—Avqu aunt—~vn-u -...b3 .usy‘ — u «PL Pa.UAv- H .-\.-a.- I“ -.u;.- II .-.v..- H: u...~.\ .I. ~....~.. \\.\~. ~.\.-\ . Au. .'.~ o.... you... on. .v . .. . ... - I. .n....... I I.. . . I.... ... . ...\..... ~. s., ..\ . . ..\. x .mo .m ~.pflo .mo ~.w .U .wmfiona Una .m .Hmpmwum EOMM @mumm@¢ "moudom .H.3 mm.am u .m.D OOJHW mumn GOHpmSHm>w©mHm um .Hoz OO.NW H om.D OO.HW @uwMH GWGMQUKG UQ®HHDO Uflm m.NH m.NH o.mH m.HH n.NH vamaw HMpOB op mcfluduommscmz mo oapmm H.NNHH m.mmoa o.vhoa «.mmoa H.hhm "mow amuOB h.me m.vma w.mma h.mHH m.vNH HOpomm mcflhsuomwscmz Scum mow H.m m.N m.m m.m H.m meDpomwdcmE msowcmaawomflz 0.5H N.hH b.vH w.vH b.NH mpodcogm Hmuwz m.m w.m v.0H m.m H.m muUDEOHm mmHo can quEwU M v.0a H.NH «.0H 0.0 H.m w#od©oym HMOHEwflo Una meoHEwSU N.H H.H m.o 0.0 w.o mgoswonm HmSpMmH wcm Hwflummq N.NH m.HH o.HH h.m ®.w muoswogm Mmmmm Hwnpo Ucm qumeHw>Um .mcflflmfiandm .mcflpCHMm m.o w.v N.h o.h ¢.m onsume 6cm mHSUHcmsm H.v m.m H.v m.m ©.m muodwoum @003 Ucm U003 m.NH h.HH ®.OH w.m m.m mwaflpxme ®.m ©.m v.m m.m m.m Hmoauoom m.vH h.w w.© h.m m.h muoSUOHm ooomnou mam OQUmQOE o.¢ m.m h.m h.m w.m mummum>wfl DHHO£OUHMIGOZ m6 mK Nd v.5 m.m Eng .3me mmmmngwa 030:8?~ 0.0m 0.0m m.¢m O.¢m m.mm Ahmmfim .Hoxmv UOOM IIIIIIIIIIIIII mmumfloo .939; umws QOHHHHEIIIIIIIIIIIIIII mwma n 33 u 33 u owma u mmma u @595 mnumdwcH . AmHmHHOQ HGwHHDUV mwlmmmH uMUHMEmb ~“nouuwm mfiflhflanMMSEME N0 mQOIl.h.N mqmdfi. ‘OII ‘.—. . .. \u.‘— ~uw~ .x.n‘.-x.\‘ \\‘\~. ~.:.~L‘.~ wt. \x~...\b‘«:x~ ~.:\~‘~ s\:: u...:\:~m ‘..~.\~..-:: ‘11); ..— -u\— a»-.._ ..‘»‘. «L~.\\:u‘. .‘...vw.»» \~:.-~. ..—.—-..-I_ .u-nvz .n.»_— — _—\L A.- H n.....- I o~..-.~ u: \-.-.~ w .\~.\-.. \A~ ‘~..-“-\ .I - I..s.n..n... ‘.--‘ ‘..ny~..- I: ~ -. u . . . nu. .«.» .- \~.u‘..\ ‘.\\ \ .«x . ~x \~‘~, ‘ 45 .mw .m ~.uH0 .mo ..w .0 .mmEOSB 0cm .m ~Hmumswhm EOHM wmpmmvfl "wousom .Hé mméw n 6.: 84% .mp3 noflmsagmwmum um .53 8.3 u 00.3, mpg wmcmgoxm “$526 in m.oa v.0 N.m 0.0 H.@ m.w vamow Hapou 0# mCHHSHUMMDGME mo oflpmm h.mooa m.vmm m.m®m H.mmb «.mah H.mmw mow Hapoe m.moa N.Nm >.mh H.h> @.mm m.vm MOpomm maH~5pommssmE Eoum mow o.Hm h.Hm m.mv m.Hv v.VM m.wm mcflusuomwwcmfi “mapo m.mN o.HN N.ma h.mH N.@H m.mH mwaflgxwu Uqw WCHHOaHmu .Hmm3uoom uwnwo Gem mmonm o.NN m.mH o.oH H.hH o.ma m.NH Agmmsm .Hoxwv mGHHUUUMMDQME woom IIIIIIIIIIIIIII meHHOQ fimwwnH umwa GOHHHHZIIIIIIIIIIIIII NomH m meH u 000.... m mmmH .. mmmH H hmma . QDOMO bumDmEH . AmHMHHOQ “COHHDUV Nme OD. hmmH .OmflQOE mug @MMVHGHHH. .HOHUGW WGHHSHUMMDQME $63. M0 mQUII.m.N mqmddu d ‘ - F:- '\ ._ I ' u "Iv-fir" : ‘ ‘, . 5, a '1 v.‘ .u ti - 0.: - . fl .- - .""'| h” . _ o :J . :C.‘;-..\o av \v ‘fil. ' . ’ - sun“ I." tau-yv pur- A“ p n ' ,_~A..IA -~--U..~du-v-- ko- - . l I. . Q * --...y...- -y-hc. -- u_ _ - ...-'.'§o- --v... u..ifiv . . .-""" Han-vaan ~ v I ‘ \ .— ""‘V-~— V‘su--~—H -. . . “z“;w' “V‘\‘V"- ~-~‘ul . . - ....‘..‘ ""‘hv2. ‘ ~ "‘ «- . ,. ~ .. -« \ ."V v—uu. . 1. \“:h. -A n - ~~,.__ ‘ “CV‘: ~ ‘\ ”V‘yy . .I V .-,.‘ - . ~ y‘-‘ "' - '- R‘ ‘Vs-K. - -u‘,‘ ‘ \4 ‘1 ‘V ~V._‘ - ‘\ . -~ , A "‘s“~ ‘ ~‘h.._‘ ‘» ~ - _ ‘ ...u\_ u ‘ sq. ..‘ N‘ ‘F“ \n ‘ u “~-.. : p: "y\. " “-h‘t. \‘ _ ‘. ~“\ “ ' « “‘~ A Hxs‘.‘ "W x: in“ x 2.“ \ ~ ‘ \... \‘ \ ‘sn ‘V‘. ’ . -- V\ N\ ..»‘\’ s: k y» u ‘." . 4‘ ‘ - ".V, ‘:H..“ “a” ‘N“.‘. M“ \nv '\ ‘\. \. ~N “"‘ - \‘ ‘ ‘ . \~' ‘ \N— ‘ w V\ ~~ ‘c K .., 46 rate appears to have been extremely uneven over the period. The important point, however, is that the contribution of manufacturing to GDP was only an annual average of 12.8 percent. Thus, for all practical purposes, the relative contribution of manufacturing to GDP in 1967 was hardly different from that of 1963.20 However, significant ex— pansions occurred in certain subsectors——textiles, print— ing and paper products, furniture and fixtures, and metal products. The study showed that in Trinidad and Tobago, the manufacturing sector increased its share of GDP from 8 percent to 10 percent between 1957 and 1962 or an average annual rate of growth of 18 percent. However, the relative increase of manufacturers' share in Trinidad's GDP did not come from an extremely dynamic sector in terms of linkages, but from the petro-chemical industry. As in the case of Jamaica, more recent data for Trinidad and Tobago show that in 1963 manufacturing accounted for 14 percent of GDP and 13 percent of employment. In 1968, estimates show that 20Growth rates were 14.5 percent, 4.2 percent, and 6.6 percent for 1963-64 through 1966—67. Computations for the 1963—1967 period were made from data presented in Economic Survey Jamaica, 1967, Central Planning Unit, Government of Jamaica, 1967, pp. 73-88. ' I &h g A f. I! «.5 -1. R p! inL’l‘IC-ourloc‘: b e.; “\- ( ' : 0- t. h‘ FIB-\uVaov V D '-n [P .‘n ~A5.’Y ' JrK_ 3 ~_ “" ol‘vv vsov wvyby- ‘ no - ‘ 'n‘t: “2‘5. . Colo~ -‘vb .‘I . . A...” -A Q .u. - ~ ~ “V? .vsv. vv “ a- v ; ' . ‘n- .'A . L . _ ‘;H-Av :‘: ...\' V'“'\v- s1-“ ' \ A - -‘A ~‘ I ._ A... '. b"" “a... “a. . .‘- ‘- “ vu. _ _ "" n- 'y‘ 5. _ . "ty ~. H\ ~ ~. ‘ “N... “ ~ N! ‘h. r... ‘~. \ , I“ . :_‘ ‘ \- “u \“~ ‘ . ~‘ “.. ‘\ ‘M~‘\‘ .1“ \ . " “ ‘ ~\\h s\. .‘ . ‘- ‘\ \ ~~:-\ "~ \ \‘ \‘ \xfiu‘ ‘5‘ 3.‘ ‘x \ §\." .‘. - .““‘ \ \._ .‘ .~ ‘ .. ‘ ‘-.\. u“ x ‘ ' "s ~\\ » ‘x. “_ ,\_ ' \“\ ‘ \ -\ N \ _ ‘kq ‘ \‘x ‘ "\\ \ “K S \ ‘ q, a . . \. “- i“ K \ ~ \\ \ |\ v\“‘ ‘ ' ‘ A‘LI §‘\N ‘ ‘ '\ \I ’ \ NU \ ' x \ 47 manufacturing then accounted for some 17 percent of GDP and 16 percent of total employment. Thus, between 1963 and 1968 the sector grew at an average annual rate of 7 percent. This rate was substantially less than the 18 percent rate of growth in the sector between 1957 and 1962, and reflects to a great extent the relatively low base from which the sector started in the 1950's. However, the per- formance of the manufacturing sector was even less than indicated by the 7 percent growth rate. The following ob— servation summarizes the situation quite well: On the face of it, this performance appears to be exceptionally meritorious. But, if we ex— clude petro—chemicals, we obtain a somewhat different picture. Excluding petro—chemicals (mainly fertilizers) and sugar the growth rate of the sector between 1963 and 1968 was only 4 percent per annum 21 This review of the manufacturing sectors in Ja— maica and Trinidad and Tobago suggests that although there has been some expansion in absolute terms in the output of these sectors, in reality, they had no major impact on broadening the economic structure of these countries during the period of rapid growth in GDP in the 1950's and 1960's. A150. there is further evidence for claiming that M 21Government of Trinidad and Tobago, Draft Five— Year Plan, 1969—1973 (1968), p. 290- M bodes - C ' 1 n .f-n‘tr- ‘1f‘r C...“ l \ udoht.Vo 9" o; p fl- v- . O o , 5" HI .‘.-qu‘“~ z," . l ..U ‘nau v.-. J“..'—--- ' a1 "' ‘r; a»_ U- “H.” 5...... .\ .. u . ‘ ~ -; ~:.~ "'V~n.., .. :'I - \ I.» «ad hu-'.“‘-l V“ ' . ..._ . . ‘ ‘~“’ “5“ RNA“ 2 ~ ~ ~— ~sya- ..~‘u ~‘~.. u u. . u -. ‘v‘“~“p— N‘ .~-. ~ ~‘.. 5‘ -..u-uv__' ‘ _ . "-- v. . .. av" “ ¥u~fi‘ «. . ‘w \. t v.‘ ~ ‘. ~‘ ~:“v.‘ .‘ h .- . v.u .I.‘-"‘—u_ . ..‘ . ‘ I“ ‘ \q. .. Q :-"V"A‘ "b -H -~-~“‘\—u h“ . ._\ 1““... “§‘. \ ‘ “ Vn.‘ ._ . N ‘ ‘§ “1 “¥ s-‘ ‘ . ‘ \l" . . “K “ 'Vs \ \..\ .N .‘. ‘ ~.“‘~‘ .‘ ‘1‘ ‘ 4 . ~ an 2 ‘NQ- -“‘ y\\" N . . l~ y‘". ‘ ; V‘vi "‘!.~ .- \‘\ . \ ‘. . ‘ \_ ' x . ,.‘ ..\ “‘~_ \ §\b “\\‘ 5“ \ 'l ,. \ "‘ -‘ ‘ “‘ “: v. ~ ‘ ‘\I ‘“~ \ . “\\- K \ "x ‘s Q ‘\ ~~ ‘ x. ¥\\ C“Q 0:“ -Vyt . ‘ ‘ - ‘ R \ ~ ‘\ \-‘\ 1‘ - ‘ . .\‘ ‘ ‘I .‘\ ‘ ‘ ‘ \ “x ~ ‘ ‘ “ \\“‘ ' ‘n “‘1‘“ ‘ {\‘iv‘x n:‘\ k'.\«\s‘ \ \. ‘ “ ~§ \ \‘N - g ‘ \ \ . \\‘ \“ ~‘~ \‘ ‘\‘\ x .‘ \ |\ . H‘ ‘\ ‘ - ‘-.\\ .W“ F . . 22 transformation did not accompany growth. For example, 48 in Trinidad and Tobago, where the growth rate was rela— tively high in this sector, available data show a rela— tively low volume of intermediate transactions between manufacturing and other sectors. The relatively small magnitude of the cost coefficients reflects the lack of effective backward and forward linkages between sectors.23 The data strongly suggest that the industrialization that did occur had been accomplished with relative small mobil— ization of indigenous factors of production. A relatively high proportion of final industrial output is made up of : imported material. These characteristics are indicative of an untransformed economy. In Table 2.9, estimates of cost coefficients of input structure for Trinidad and Tobago for 1962 show very little evidence of significant changes in the coefficients since that time. I We have presented the argument and some evidence tO Support our contention that the region has experienced relatively little structural transformation (development) | M 2 . See page 40, footnote 13 of this chapter for the relationship of linkages to structural transformation Of the economic base. 3 . . . _ See footnote 13 of this chapter for our defini— tion of "linkages." ~ F":"Y‘:~. ‘_ . “ to. .‘~- ‘3. . ‘- '\— .‘\ 49 =-TABLE 2.9.—-Cost Coefficients of Inputs Structures, Trinidad-Tobago, 1962. Alcoholic Intermediate Transaction I Beverages I FOOd . I Other . . . Manufacturing . Manufacturing . and Tobacco . . ---Percent--- Oil .0048 .0139 .0324 Alcoholic Beverages and Tobacco -- -- -- Food Manufacturing -- .0199 —- Other Manufacturing . 0724 . 0787 . 0214 Transportation -— . 0071 . 0064 Distribution . 0139 . 0259 . 0566 Services .0281 .0199 .0168 Construction -- . 0 l9 3 . 0062 Public Utilities . 0061 . 0063 . 0113 Sugar Manufacturing . 0163 .0302 -—- Sugar Growing -- -- -- Other Agriculture . 0163 . 1368 . 0442 Banks and Financial Institutions -- -- . 00 81 Total . 1578 . 3581 . 2035 Source: A. A. Francis, "A Note on Inter-Industry Relations in the Economy of Trinidad and Tobago, 1962," Research Papers, Central Statistics Office, Trinidad and Tobago. amidst relatively high rates of growth in per capita GDP. Theoretically, this phenomenon is well explained by Demas. We think his theoretical explanation is sound, and pro— vides important insights into the structure of the West Indian economy. He argues that there is a fallacy in the Popular assumption that countries with a relatively high per capita income are in some sense more "developed" or qt, R:“.I-a . I:- 'u‘bcv D D . . . q‘ ‘ ‘n. '- 1 up: :rno Co V‘s “ ouV ‘00.“- g ' -4 1. . Q I ' I o a"... 1 H h \-l .:‘= -G-..\.u v- . I "a- .o ’L :‘flw: cl,- 2 - n I... b- y..‘..\:~, _ h “In“, UA-v.. . . :..-...A_ -..~.. - .. .. : .. '.~ h.-'00 . .— -..u- w..- V»- '“.‘~F" ~ ‘ .- u»-‘_~. u-‘ - d a -\ 2" «mo-HH‘. ‘- ~.-’ A... wig‘iu‘ a . .‘II . ‘ . .1 -: .. __‘ M. ..~ .., ~ .u v._" V-"|\ H‘s ‘ ~ "‘ “s. ... . 3: 3‘.h“_‘ h“"~ _ 3“ - .fi~ ‘ ‘ \ ‘~~: -"“: 4.. . .uuu-‘- :‘I ‘! .‘. ‘ ‘\ “,‘ . N‘: l. H s., .— h.“ ‘ I K ‘\ “ -hk _ . ‘U .‘ .'! ‘§ “.t ‘~-‘~AV~‘3 h“ \ .A‘ . “"\. ‘.‘ -I u ‘0‘ ~ \‘. I.“ ~“"~.-.‘ ‘r \u‘ t - "\— .. \N “ » x‘ ‘ - \‘ \‘fi “ ‘ “x. "‘Q 5"» I“ V‘N ‘ ‘i“ \: ‘h s “ 50 or near the “take—off" point than those with lower per capita incomes. He attributes the fallacy to: (l) the ambiguous assumptions underlying the concept of "self—sustained" growth which relate the level of rate of change in per capita income uniquely to the state of development, (2) the largely unconscious asmmmtion that one is dealing with a "closed" economy, and (3) the indiscrete application of the Harrod—Domar models whereby ”global aggregates of savings, invest- ment, and output are considered to be the central var— iables in the growth process."24 He argues that the West Indies experienced rapid rates of growth without any substantial structural transformation because of essentially two factors: (1) the existence of "en- clave sectors" within individual territories, and (2) the extreme ”openness" of the regional economies. The impact of these factors on development are sub— stantial . 4Demas, William G., The Economics of Develop— ment in Small Countries: With Special Reference to the Caribbean, Center for Developing Area Studies, McGill University Press, Montreal, 1965, pp. 5—6. ' n" or “"1:- l": '1‘ bL - a... ___I . I an! . ‘F'a-n hr Definfe4-Uvo 2.5:: w. is . J ‘I D m' (I) ( '1 .4 ‘ . . ' \ "‘nl‘ Fr “p“fi' *f‘ y'v.....'v.. 'V ..- .n ‘9 . . On: 'A:. ‘—,‘F'-:F' v-w u...» gauv- -u..- A u u a . . A -~ :-~.~r :v-~ -"... d..u-\... A..H v¢.b I . .' \"' “Danna — "1" o— .— v4.-~~u..\,\, \ u- 9... ":V‘zfi‘A—us . ,. nn-.‘--\'._: -.. . . ‘ w . ‘~~~"‘~ Wan—s ' ‘ “Wm-v aw: -- "‘-A '— h—a v-..» ....‘ - s ’v: 6“ 1“ ‘a. \ “VA V- \ V-» \ . I - u‘ ‘ n‘ g ‘u \ ~ " ..;‘ l‘ H: In. v ‘V ~\, . 3:“ . ‘ _ "‘-. an ' b..: L. :“K~.‘~_ ..\,‘_~ h . n..\_,‘ .4 . n“.-\ "‘2~ ' ‘ ~.___ ~“: ~. u» . ‘\I K . t_: \‘a‘h‘ ‘ \\ ~~‘ as ‘H. ‘\ A .\,‘_\ \ -. n'§ ._ :I‘ ‘ ‘ "N- ‘«.y ‘ wuq : “‘M Q \ ‘ h.- :~ . . \ ~ I '~ M. . ~ “-\.\ :V\ I: m: :~~ sh . . \ \ “ \ a \‘.: \‘ x ‘ \‘ N‘s “!.‘_ :‘~ .“\‘I‘ ‘ nhx ‘ x s“ “. ‘1 ~‘_ ‘nv I ‘- ‘~_ ‘\|\‘\ ‘\‘\ \- x| HQ‘~ ‘¢.\,\ 1‘ \Q. 3““ ‘ V n __ '\ ‘ \ \. s ' \‘\a ‘ ‘~. ‘\\\ ‘s \ \ ~ ‘ \\‘ - \ N ‘\t ‘\ ‘ ._ \. »' l“ \ ‘ \x‘ “\‘ N \\H \. I ’l/ 51 The Impact of Enclaves and Openness on Development The West Indian economy has many characteristics which are common to the less—developed countries. Some of the most important are: (1) an unfavorable ratio between population and the stock of capital and natural resources, (2) the existence of sectoral dualism as demonstrated by wide variations in the productivity among sections, and (3) a lagging domestic agricultural sector to the extent that domestic effective demand is low, relative to the do— mestic cost of production. The little existing effective demand has to be met by cheaper food imports.25 To under— stand the phenomenon of growth without development, Demas argues that one must consider both the "size" and the rela— tive "openness" of the economies. One of the most impor— tant and unique features of regional economies is the fact that they are "small, open economies.” They are "small" in terms of limited land space, the absolute number of persons living in the economy and the size of domestic markets. They are ”open" both "structurally" and "func— tionally.“ Structural openness means that the mere M 2 . . . 5See footnote 8 for a brief discuSSion of the theoretical considerations with respect to "dualism." -.. V 1 ' .- .at'»vl: n" 9 HA I‘_ I --..’.....- v” u..- U- ' u c 9 .'Iflfl p -9 -pA :.--5: NC u... a..c . . , fln~~ Fz- 1" “V--.-..‘- \A A '— i— n..‘. ' n . . . v.:: -n: ’§ ~F v‘~.-..u.' -‘.‘- ..-u_. O NH..." ' . - . 9_~ Agr.,Ah ""-.-l ‘ \o— .- - u“ “V- ‘ ya ....I ~ n- v. a. _ ‘ ‘ " "‘ «av..- nu... n- .h: :‘I‘H— \ n u- . -’~ 2"“ ~. “-\-.-a .: :-‘ § "“t‘v..-~ \- V“ «o- . ‘ . 'I N .‘ “a -.._ :Vl‘".‘\ ”way u. .a“\ \ . ‘Y:""'*v --\s“\- -. ~5‘ ‘ ‘ 'Q ~. ‘ \ ‘s‘n :‘f‘anfl‘... h ‘“‘~~. . g2“ 5.; d .‘ _ s . '. :z‘ I‘u . I.‘~: “zy‘ “ ‘uu "‘ \v “~—: ~ nu . . \ ~‘ . ‘\ Nh‘ ~ , h ‘ \ ‘ “\x‘ ‘\‘ ~\ ~ . --.¥\: .K ‘. \ ‘v, \‘ \ I ,5» a ‘ Q ‘h K \ L‘~ ~ . ‘\ ‘- ‘5 ~ .‘ ‘ ": ‘ ‘\\ ‘ ~ \‘ ~ \ \u' x \ V4 ‘\ I § ‘\ H ‘~ .‘t n . a a“ “s K~ ‘.\b 5. \. § ‘ I . \ . \ ‘ “':\Q \‘\ ‘~ ~'~. ‘ ‘m ‘ ~ ~\\: . \ \ ‘ \ n‘: \“ c ~“t.:“ fi‘“ ‘ \ ‘\\.‘ ‘ k A. I\‘ ~ ‘\ ‘- .“a . Wx 'w ,3. ‘ \. “t ‘\ \w. ::\‘ “ \s “x - m: - "t ‘N x “H “w - ‘ ~\. \‘\ K.‘ ~ ~ .‘-“ 52 physical size of the area makes for a relatively high pro— portion of foreign transactionsas against domestic trans— actions. On the other hand, the economies are functionally open since both the capital market and financial institu— tions are dominated by foreign entities. Unlike some cmnmries, the high functional openness of the regional ecmmmw has served to reinforce the importance of enclave sectors at the expense of more broadly based sectors.26 ”Enclave sectors" and "Openness" do not make for an economic structure that is peculiar to the West Indies. Most underdeveloped and many developed countries have some ofthese characteristics. However, what makes the West Indian economy peculiar in this respect is the magnitude of these characteristics. The most commonly accepted mea— mue of openness is the ratio of exports and imports to GDP. Table 2.10 shows that the ratio of exports and im~ ports to GDP is relatively high in the West Indies for 1961. The most recent figures for Jamaica show some change hithese ratios. For example, our calculations show that hithe Jamaican case, the ratio of exports to GDP was about __________.___________ 26The term ”enclave sectors" is used to describe those sectors of an economy that are largely dominated by fineign capital, expertise, and decision—making. fl Puucrno I \ry in..- . ~_‘l 1 . u u I- ‘ ~A -‘«.-q~.‘ "~ A" a n _ ‘- . uh.“ t...“ . v . \ v-:I .~-h~~~~ I ~-...,.I ‘5hl-V.'-» ' h. u.~__“ ‘ ‘ buy ..‘u-~-‘-’ . ~‘-“_‘ ~ \ ~ \ ~»“'-V\—-\. 3 v.‘.~:~ ‘--”—u“‘ x ”A .R“" » x A\.\‘\-\_. - ‘- .“. . ‘ ‘ .,: N_... '.'n‘ a ‘ - . 5»..- H..“¥ ‘k : ~‘~ ‘n ‘~'n~ . N" -. ”A . ‘vy . II». ‘- ~ . ... ‘ \Kh.\\“‘ A H ~\\‘\ 5. ‘- ‘ V ‘A‘ ‘ a-‘ ." ..: Ufit‘ ‘ ‘.¥.\' _ ~ .“‘ ‘ ':- ..p- ‘ ‘ ~ i ‘ H“ :32“ ‘H \r\“" . ‘l ‘\ A “13‘ \ \“\ ‘\ ‘\—\ . \ \ k e \ \‘- \4 “~ ~ ‘. ‘ ..\ - .“ \ ‘ “M: M “\‘k‘ .~‘ ‘ ‘~N‘ ‘ \‘\ ‘ “‘ ~M‘ \‘.\.“. \\ ..‘ .‘ ‘\ ‘ \\: av“ ‘ “ “~ \‘\ \ x “ 53 TABLE 2.10.——Relative Openness of West Indian Economies, 1961 (Current Prices). Exports Imports Country Year GDP GDP —————————— Percent——-——————— Jamaica 1961 24.8 30.9 Trinidad and Tobago 1961 59 . 3 (1962) 64. 5 (1961) Barbados 1961 32.0 68.8 Leeward and Windward Islands 1961 27 . O 59 . 3 Source: Economic Planning Division, Office of the Prime Minister, Government of Trinidad and Tobago. A Statistical Report of the Patterns of Trade of Trinidad and Tobago for the Period 1948—1963. (Cyclostyled), 1965, p. 3. 37 percent, while the ratio of imports to GDP was about 24 percent in 1967. Although there were changes, the ratios were in opposite directions. In the case of Trinidad and Tobago, the 1968 figures show that the ratio of exports tO GDP had declined to about 49 percent, while the ratio Of imports to GDP had declined to 46 percent. Figures were not available for the other islands. Despite some Sl9nificant changes in these two countries, the Jamaican ratios are still well below 50 percent while those of »a "'“dad 1.51 chase ' ' " .. 1., 2536!. ngres s... A v ‘ P n vfl flu-II uyfi— A“ ve‘ _" -:-“:d -5V». 4 . o . I. I . ”‘4 I 7‘ -. 'R‘fl H .fl " v, ..\A .U~ . A -- ..o..-u.3'u 4 A ll ‘ :""‘ n:v-- u . .- -.-U‘Iav- I e !- “- u. .‘ gArA:'_ fir q. . _ x u. .a Ub-y§,..- -.. “‘— . . . . ‘I. “ “AA . 3‘ \o— ." v-\.~\,_ 4 ' I .' A. a s...‘ “A 'A Q .‘~ - - \v—n. Y‘ "-'-‘.' "*-~.\-v-- .-~:.‘ A'- u “"i‘l ... .0 ‘>".~-. ..V~ \ I“ ~..‘ ~ uh . ‘2'... ‘ ‘ . n ." Ya,‘ "“-‘ -. y— H b.‘~ ‘Vu - ‘h.. ‘ .n"“q.,_ : ‘ u" " n. .. «Jun cl" I. w s l. - - : ‘I-v. ‘. .~.‘§~ ~‘ . ~-..“\ n:.~_‘-‘ tan.“ ‘.t N‘- \ c . .. ‘ ~. 1“ 5“ ‘ ~_ .“ “ ‘¥. ‘ ~~Au\ I W. ._. a M‘: ‘x‘\ ‘ .5».: -V.‘ V‘ l “‘t p. ~y ‘u :‘\k V' . ‘n x - .~ .- . “~.‘ \ ‘I“‘ \ ‘x- .I ~‘. ‘ ‘~.“‘\-.‘ » “ \Q: -- . ‘\\\ ”Q ' ”My: ‘. h‘. ‘\.~ 5 \\\.‘ N:““‘ . . \‘\‘ ‘ ‘ Vq‘ ‘s s N‘ ‘ I ‘ ‘ \~- \ \N ‘\ ~C \ ' \\\ \ ‘ \\~.. . ~l-.~ \ ‘ t“ I“ \ ‘ \H‘t: 54 Trinidad and Tobago are close to the 50 percent level.27 Tm31961 figures show that the ratio on the export side ranged from 25 percent in the Jamaican case to 59 percent :U1Trinidad andfTobago. On the import side, the ratio is shfifificantly higher, ranging from 31 percent in Jamaica 1x>69 percent in Barbados. The relatively high degree of (Kenness is closely related to the magnitude and evolution ofexmlave sectors.28 Examination of territorial capital flnmation shows up the relative importance of foreign capflxfl.in the regional economy. Table 2.11 gives the imxmkdown of capital formation for selected countries for difflxent time periods. The influence of the extractive sedxms (bauxite and alumina in Jamaica and oil in Trini— dadanmiTobago), as well as the sugar and manufacturing :Umerests, are reflected in the table. A relatively high pnnmmtion of foreign resources are involved in these enmerprises, these are the enclave sectors. The share of flnmfign capital in total capital formation reflects their ‘— 7Calculations for 1967 and 1968 ratios were made fixmldata presented in (1) Government of Jamaica, Economic ,flggpy of JamaicaLil967; and (2) Government of Trinidad mKiTobago, Draft Five-Year Plan, 1969-1973. 8 . . . . See footnote 25 of this chapter for definition 0f enclaves. I. 23-13.. : Auunu— .. lllll'lrllltlillllll |I10IT I- '5': .. u-—.-.-«s._ Ii! . I . I . i. i I . . l. . I. ....I -~ PnAJI‘. aqfin—n «5.... H a-g w. .nv:— -A ‘2— —~. ~ .am-.. v I. u .— IAu um» I» -\».~ s~.:~ &\\.K .—.—~...d asudsnv Has a. v... n__ u -.. ..~._. .-_ 3... u..- .. .._ ....m ..:: ~..»..~ II -. . .a.‘...e nunJJ...au..... a... ua—ua._ n —~s . _.—...v .~—._.-.«v..— I. ~.. . _..-..v .... .s.....:.:~ - .t.~ a“...2.::\ and IUIHCV‘nuu H -‘-.. ..--.—.... II .A. .--.-.... II 4.....xs ~u~ "II“. hIIIun.II.leI|III I "a“ I I h I u I I. ... . . I I . . . I u authO-I-o- oat-t; not .I-nunru-nnuvn. nu... unn I... Ah.yn.. h.. ...v. u ..I- ~ It». ...u. .~qu ~. ... n.. n \ u n \.s- .. \.. .‘.. 55 .mme .coozoq .moflmmo mumcoflumum m.%pmwnmz Mom .wopmnumm pow .mpGMHmH UHmBUCHB .mpcMHmH wumsmmq may mo mpmoz Hopflmuu was mHMHpcmfiom OHEOGOOM on“ mo >O>H5m < ..U .canmsmq.o . . m .momHIwmme .amem nmmst>em .ommnoe 6cm emoHcHne .ommnoe was masseuse no ucmscnm>oo m .wwmalmoma radam ucmwawmmUaH mOHmEMh .MOHmEmn mo unmECHw>Ow "wOOMDOm H .H.3 mm.am u .m.D oo.aw .mpmu GOHDMSHm>m©wHQ “a .H.3 oo.mm u .m.D oo.am .opmu mmcmsoxm pawssso mm D .mupssoo mzu CH Umpmm>cHwH on hoe wmnu mum£3 co>o Ilmuflmoum :mfimsom mo mamsuoom Doc Ham meSHocH SOHSB pcsooom DCOHHDU so DHOHmov mwcmfimmm mo moccamm m .wenmeem>a noz n .m.a .m.G o.mv m.ma H.Nm Aawmav moomnumm 6.Hm 6.mm m.mm m.mmm Amomec ommnoe mean meanness 0.0H m.om m.mm o.msm exoomec moemsme IIIIIIIIIIIIIIIIIIIIIIIIIII unmoummIIIIIIIIIIIIIIIIIIIIIIIIIII n.H.sIaoHeHH2m GOHDMEHOM m COHDMEHom HMDHQMU m .m.m.w m SOHpoEuom m Hmuemuo fiance :H H Hmuoe as sonaH M an coeumsnom H appease H HOpomm OHHnsm n HMHHQMU cmflouom H HMDHQMO OHDmmEOQ u OHDmmEOQ H mo Ohmsm u mmo mumsm u mo oumnm ” mmOHO H .mmflfiocoom GMHDGH uwmg m0 :mmmfldwmdz m0 OOHOOQ MO GOHHOOHMOM mm GOHDMEHOM HMUHmuU MO COHUflmOQmHQII.HH.N mqm<fi *- ‘I'IfT'S'Y‘O . 0;. 5118 “\a-v"; by ' ' Q A It, "‘73:? 1015' 1636}. v- I. 5.. ~ “A.” 3::- a UV-.. 0 v. . Q ‘ 1 -L ~I‘RI19GeC ‘V‘ v.. -c. "' .NV-QJ A v :-,A'QF ,=:rocvn:S ‘ "':“‘-- -vuv «l- v a Q n .‘ I V" a ‘.“q.-.fi':. A. . . ““'-vn.a- —. ~ . A .-H ‘F‘ A q — . ".WNI' ‘*~-~. a . ’ . .. 52" “:“.r: ~“N'K u Nu.- 5‘3.--” ‘..~‘ I Q .-u ":V~-...: "A~-~.._Y --. l‘--““ VMuo.-- .‘ ‘ \ - “~fl ‘ua- AZ.- . s .‘ 'OU‘ -Ilu-»“- N‘.. . : .. -, '2'“ N .._ . -.. en» »._»“ ‘ ~u ‘ _ ":. all,“ _ c..» s'»...~‘_ ._. ~I““ \ . .\.....:\\ _ \a I‘ ‘_ n \ i N' m... ...':. ‘- h“\‘ - . . ‘ .~.-“' :““V«‘ I ‘9“... :\ ‘ \- V i .. . ~- \ v‘ - Is. ‘_‘ K \‘ ‘u . ‘““\ x s '\ Y "51““- . \u; ‘\l\_“ \ ~‘\‘ ~ H a §‘“u¥ “ . . a“ ‘V ‘ ~ “RN‘ . '. .. .5 an“ \e‘.:\ \ \\- N. “‘.K\ i ‘ ‘ ‘ - x v‘ A \~\ ‘tilu“‘\ ‘\‘¥ K \ ‘ g '\ a, ‘ ‘I‘V ~...: ‘M V , ‘w\ \ \ \ ‘g\“ \>\‘ \. u‘ ‘ .~~ “ . ~ ‘\.~ ‘\ \y . N \M“ C “ - .‘x V \— ‘I\.\ \ \ ~\..‘\\ “\ ’ 7TM_-e. .. Tr?— , J 56 importance. On the other end of the scale is the rela- tively low level of capital formation from the public sector. Demas points out that if depreciation allocations were included in the calculations, the relative share of foreign resources would be substantially higher.29 There is additional evidence to support the argument that the enclave sectors are of major importance in the regional g economy. Table 2.12 shows the divergence between indices of per capita income, GDP and GNP over the 1960—62 period for various countries. The wide divergence in the indices is a good indication of heavy reliance on foreign invest— ment in the enclave sectors in the 1950's and 1960's. The combined characteristics of smallness of area, openness, and the magnitude of enclaves have resulted in certain features of the economic structure. These are: (1) high ratio of foreign trade to GDP, (2) the domination of export trade and the general economy by a single export, (3) the undiversified resource base and narrow domestic markets relative to costs of production, (4) negligible national or regional inter—industry transactions, (5) the export of savings via foreign—controlled capital markets, 2 . . 9Demas, William G., op. cit., p. 105. pi V I N K; ': 9. g 'I-Jo 1‘! H- (5 O I ....A:1 ~ . ‘ o 0 0"“ (”1.7" W '9‘ I O C 3 —¥ Q .. ; 4r- ~".- -4 - o. ‘ 0". - A - Jr -a - ‘ ,- J'- ‘:\:.A: I V .\._"‘ .. ‘ . -y.- ‘.-.~ _ ‘ ‘ _ - -\ \‘vul .-~‘. I ll--‘- 1-. . ‘ . F. .‘\v“ ‘ h‘ \ .\ ‘ I»- - “"- \ ‘.‘ ‘. ‘\ ‘« “V‘ ‘~"\-t .s.“ ‘ s ‘ ~ \‘ ”KN .. “N ‘\2 ““~L ‘ ‘IA. i N "‘- . “‘~-~‘-\\ .~ ~ \ I ‘ ., “ \ \ “Hu‘u~ \- I Q“‘\- . \i~‘\ I ‘R¥ .n ‘~ A .z . . ‘\-- ”“5 y ,I ‘ ‘ ‘-.~“ \-.\~ - ~ “ kl“ ’\‘- \ \\‘\.‘ ‘\‘ ~ 5 n \ M‘ ‘ . \ A‘ 1 ‘ ‘ \ \ ~H‘x “Q5“ ‘ “\Ku \ “ -\ N‘ ' ‘ H ~ . 3“ ‘ ‘.“ ‘ n. \..,‘\ Ax ‘\ ‘. \ “Ch“ . .-“ ‘\:H\“‘ \\\‘\:‘ ‘ ‘ ~. ‘ "K x x \ x ‘\'t \ ‘\~ \\~ .‘ ‘\ ‘>\ ‘VNV ‘ - ‘H‘ \‘ ‘;\ ‘ H \ \‘\\ 57 TABLE 2.12.--Disposition of G.N.P., G.D.P. , and National Income Per Capita, The West Indies, 1960—1962. I I Per Capita 2 Per Capita I Per Capita Country :Yearl G.N.P. . G.D.P. National Income ° I (Factor Costs) I (Factor Costs) I (Factor Costs) ———————————— West Indian Dollarsa———————-——-—- Jamaica 1962 706 734 658 Trinidad and Tobago 1962 1,058 1,180 920 Barbados 1961 n. a. 502 n.a. Leeward and Windward Islands 1961 n.a. 337 n.a. aAt current exchange rate $1.00 U.S. = $2.00 W.I., at predevaluation rate $1.00 U.S. = $1.85 W.I. Source: Demas, William G., o . cit., p. 102. and (6) very little domestic—generated inflationary pres— sures, since prices are tied to export savings. The net effect of these features has been a condition whereby growth stimulus stems largely from those sectors producing largely for the export market and usually employing a higher level of technology than the domestic economy. Under this peculiar set of circumstances, certain indices of economic well being (GDP, real per capita increases, domestic capital formation) have attained fairly reSpec— table levels. However, the economy has failed to exhibit structural differentiation in terms of a broadened economic '-:-* Quite evidern \d line I p Q cup-avg .. ,- n u -: .ne 93Ch ub'u I». . ' v- ..;A.’ fir tea I "ii-go‘s“. H.1Iv o ‘ v ’ . a an... “A... a cue-a . f -‘ ' 2 96-. """'~ vVII-‘ a. ‘ C .. Q'Avu.’ , F '2: . v .. 1.. u.. -,. ‘V‘- : . ‘ c Vin-Ffi : F‘Wfla‘ k-'-"-OQU “ ' . § “,2 ~y-A' .- ,. 00“ u-\'| . 5.. "v-a u“ ‘ ~ : ~ AV " s :"‘v_-‘--' .. ‘V ‘ ‘3“ re - Viguvn... -V‘ (I) v. ‘H “"~u (I) {n I(1 "n .\.~ ( ) 9\ § ‘ w, v H‘.‘ s., V- . h \ L““\ ‘\ III 58 base. Quite evidently there has not been significant ploughing back of capital and technology into other sectors of the economy that could spearhead the trans— formation drive. It is now easy to see how the West Indies could attain a relatively high and sustained rate of growth in real per capita incomes and GDP without undergoing a higher rate of structural transformation. The growth stimulus of the 1950's and mid—1960’s (particularly in Jamaica and Trinidad and Tobago) to a great extent reflected a set of extremely favorable cir— cumstances. In the first place, population growth was restricted by an unpredicted migration to the United Kingdom. Between 1946 and 1960, annual net migration siphoned off an estimated 30 percent of the annual in— crease in population.30 Secondly, both Jamaica and Trin— idad and Tobago were favored by an extremely bouyant market for bauxite and petroleum (their largest dollar earners). Furthermore, the negotiated prices for sugar, bananas and citrus were extremely favorable under the Commonwealth Commodity Agreement for this period. M 30Roberts, G. W., "Prospects for Population Growth in the West Indies," Social and Economic Studies, Institute Of Social and Economic Research, University of the West Indies, Jamaica, Vol. XI, December, 1962, pp. 333—50. o The e*-11de..c< rm a1 . :1" We (Danna... I. ulna 56V- :' t‘r. rate it. ' C .. ' v""fl..|: .Ezc l: m--4\..¢-u - ‘Cu . . "”‘W‘: n?:"anc- ""‘:' ”-Vavoov ' O .. ‘ c. " " ::. ',.‘ 5..-“,‘v . (I) -. ‘ 9‘ _‘ “ “V—on" ‘--\v N: ‘Vvvu “Rn s.- a. -.u_“. . - 'n. V “vs“, ‘ux... ‘ ‘ss-s “‘I\4 ~... ‘- y‘ _ . ‘ ‘ .‘ ‘v. ‘.R‘ ‘ 'N." ‘3 NJ- .‘~ ..‘».. ‘5: 'n ‘. x. ..‘ - \‘.~ «‘g ‘fi‘q . ., V‘ ‘N‘ n,- ‘ “-.\ ._.. s~‘ ~ ~ ‘ \ ~ ‘ ‘ ‘ ~~ ~ N‘~~\' .. h. \ u ~ ‘ \.\- ‘\. ‘ y“ ‘ § ‘ ~ e=~ \ M‘ . ‘\ .~\ .‘ M x :«w ‘u 59 The evidence and argument advanced by Demas appears even more convincing in retrOSpect. The slowing down of the growth rate in the region (in Jamaica and Trinidad and Tobago in particular) is documented by the World Bank figures presented earlier. Unique Features of the Agricultural Economy The preceding section examined some of the features of the West Indian general economy which we consider to be peculiar to the region. The peculiarity evolves out of the unique economic and social political structure in which the regional economy emerged. This section will examine some of the characteristics of the agricultural economy which we consider to be unique to the region and important for understanding the policy implications for different development strategies. Land Tenure and Land Use Patterns “_ One feature of the West Indian agricultural economy that stands out immediately is the relationship between farm 3!: SIZE, I - ,.’.. vacac 2....6.» 79 per: 2‘. ‘ I. o. a. O'cva‘ ”A-‘ o, ‘I '- I“ ' '- M‘s-«3 We-» ux..J'I. . . ... “:Yflafl- p‘ l VV~vau v- . . ‘ . q 1"." u”, “NV‘ A._ 'v t .- .- "‘ I l-a'u- uu--b_. . ‘ .2h:v: o v- ”"V" ~ .‘Cu—u ~ . -.‘ H K 'V-...\. N‘A . PIA. """ ”en 5“? u..- u .- F‘s ‘A‘ .— ‘on‘ "'K (ll ‘1! kfi A \. 1(1 (I' (II ([1 [II Ill {)1 (I) 6O farm size, farm holdings, and farm acreage. In 1961, an estimated 79 percent of the total number of farms were less than 5 acres. Some 21 percent of the total number of farms were between 5 and 100 acres. Finally, only 0.6 of one percent of the farms were over 100 acres. Evi— dently, the agricultural sector is dominated by small farmers (in terms of land ownership). The unique feature 1 VI of the sector, however, is related to the distribution of the land resources among the three size groups. The 79 percent in the less than 5—acre size account for only 13 ‘ percent of the total farm acreage. The 21 percent in the 5— to 100—acre size account for some 32 percent of the total farm acreage, while farms of 100 acres and above account for 55 percent of the total farm acreage. Table 2.13 gives the breakdown for the individual territories by farm size groups. The table provides some insights into tenure pat— terns as well as land endowment and distribution. For one thing, there is an inverse relationship between numbers of farm holders and the possession of land. Secondly, there is also an inverse relationship between farm size and the percent of land being cultivated. The 1961 figures indi— cate that the farms of less than 5 acres were actively AUA~— avi.v.. \..A. s . ~ I'lllllllollllqlluliul..IIIIIII...-.I.|.|II.I ... ...III... .I. r-.. . u—uov..hc~.m.lI. . .|.. ..I. .I.| I, .I I. I . . I . II. III: I-.I u ......'..~..< u .......-...— -..: n .L.....s..< .. “...: ~q...~ -..wg . .11..» ....< . ....Z.-...~ -.xxe - n 2-1- a...— —.n.. ref?” —.~ .. ..—. n ... ...... ~a. .. ».—.I. ~.. _. .... I. ...L....~ ~ .. ...)? I ~ ~. ~.\L. I :oV§—.mu ~—< H u... I.—Av.~._ u _.v I.—...~.— u .a. I....~.~ H ... I...\.n.~ .. ~«s ..~\-.~ I es» I.~\.L.\I \\.\--.... H nt-v I. .< . av-v- III onlv -. .< svflsh .~ .II -\.~ s .I\ .. as III \\ a... u \ I... - .... u - vlvu>1 | \If -I .u.. I ..I. n ....I s . as ... ~ .~ ‘ .s... ... ~ \ . . I ... ...-... ~ ~ .. n. . s. s. . ... . x \ .. . x. . . ~ . \ . I. IHIIJ 61 .mme .moHpmemuw HMHDp ~meUGH “mm: msp mo thwHw>HnD HdoHHmfl CMHUGH umwz .unwfimmmsmz Ehwm Ucm IMO #wwwflm d ~N IO wOHEOQOOm HMHDHH z meme HMSOHmMUUO SUHHmm Ho pcwfipummwn "GUHSom OOH N.mm OIO G.Nm OION wINH w.wh mmHMBZDOO QH¢ OOH NImm ¢IO O.wN m.NH m.NN HINO AwmlhmmHv ”Ewen; .um OOH m.>w w.o m.hm N.mH m.wH m.om memHv mHosH .um 00H wdn H.H 5m o.m m.NH m.mm Ammo: MHHHsmSH \mHszmfiHM .5 03 Two m.o m.mH m6 HéH 5mm HummHv “333202 OOH m.mm 0.0 OINm O.HN h.NH H.wh AwmmHv MUHGHEOD OOH NIHm O.H m.v ®.H v.MH v.bm AHOOHV wOUMQHmm 8H Ham To 0.: m.m méw w.om HHomHv magnum Haw mumHHQ¢ . . m.mN OIHH OINN ¢.hw AhmmHV DOUGHHHMO OOH N hv b o wad mwmcwuw . . . .o o.mH v.8 82mm: ommnoe 8H q .3 m o H ow m H Ham Haggis OOH OIOm 5.0 NINM O.wN w.HH m.Hh AmeHV MOHMEMO pamonum H wmmmuod ” manmm .02 m ommmuom m meumm .oz ” mmmwnom H mEHMMOHozm m Sham HMHOBH Hmuoa u EHmm Hmuoau Hmwoa m EMMh.MMMMHH MM .mdhm” whucdoo mwNHm HHfl H mo .mOHm H m0 .moum u mo .QOHm H MO monm H m n H M me0m +00H m monofi omH I m u mmuo¢ m I o m .HmmH Maw mm\nmmH HmeUGH HmOS . M acres had abc I. [I 2;, O In (D C) I h .._.-J ('3 (_ . C a . “ ’ “Fa- ' - . I egrna" C_ __“.,-. I. 55-55“- . .‘ -.0!‘ ’; I’v- .. flu ...H - fi . ‘- I-p‘p ""‘m‘i: -3 ' \— ~- urnv‘ u..-~1‘\u ‘ R.- ”— h-Ah ; " A‘ ‘O-A " :YYH fl _ -..hv--\--"fi I.‘ ‘ . ‘ ....“ I5“ ‘I ‘Ql‘fi . ...." ""§‘ nymu ~| - n ““v-_ H ..I.."‘“‘ . HI“ ‘ s k“"r\ \ I \‘ I‘u~ “k ‘i I‘ ~I“\ - \‘ ~ ’\ ‘1 m‘ 5‘.‘ I ‘~‘ y ~_ ‘\ Q‘I 'u. _ \‘ ‘ .s .: N :s“\‘ k a ‘ \ “\.. ‘| ‘ ‘ ‘u \\ ~. \uM: :H\‘ I ‘ ' ‘\M; ...K I ‘ ‘\ ‘ ‘ \ ‘ \‘ ‘~‘ : ‘H \ ..I ._ u ‘ u \ x “ \‘\ \\: ‘ ‘ ~ \ R - II“ \ ‘ \‘ ‘ I ‘ ‘\‘\ .I‘ ‘\ I ‘\“ Q‘ “‘ \4 :‘I T‘. ‘\\‘ \ ~‘:| "\ ‘ I ..\~"‘“ ‘ I“ \ ‘ ~ \ \.‘“‘ in " i IE ‘ .. H ‘N‘ ..‘ I ~ ‘ .IIg "“Q‘ I~_I \\ ‘ \‘ x.‘ ‘\‘~: “ ‘ ~ ‘\ \’ ‘ . I .\“ IN“ ‘ I I ‘W s . ‘ ~. ‘ - h‘ \ \‘§u ‘ ‘\ . \R \‘ \ ‘4 \: ."‘ I‘ .‘ ‘ ;\‘t \.~ \ ‘ ‘ \\ - \ I .‘ \\ .\ ‘ ‘ \\:~ ‘ \\ k ‘I - I \‘ w ‘ \ “H‘t‘b 62 cultivating some 66 percent of their land. Farms of 5 to 100 acres had about 46 percent of their lands under crops, while farms of 100 acres and above only had betWeen 30 and 40 percent of their lands under cultivation (Table 2.14) .31 The two tables set the stage for further discussion of other unique features of the agricultural sector. Un— doubtedly, the pattern of land tenure and land use is highly interrelated with other features of the sector, which would tend to set the sector apart from the more generalized agricultural sector models popularized in de— velopment texts . Plantation——Peasant Dichotomy The dichotomy between peasant and plantation agri— culture is shrouded in the characteristics of the land use 31Undoubtedly, much of the larger holdings are marginal for crop production. However, in the West Indies there is a strong correlation of land quality with size of holdings. Usually, plantation and larger—size holdings are located on gently rolling and fairly fertile lands, while small holdings are on steep and generally unfertile land. For discussion of the evolution of this pattern, see: Marshall, Woodville K., "Notes on Peasant Develop— ment in the West Indies Since 1838," W Studies, Vol. 17, No. 3, September 1968 (Special Number). (Agricultural Development and Planning in the Caribbean) Institute of Social and Economic Research, University of the West Indies, Jamaica, p. 252. —. f. .- Adgn. .. AI....... ...: v nun. u-v-n nu... -- u . DI Inn- ........~.... -.~.~ ye...» A ~su-gu—hua vs»: I w mm CMHUQH pmmB mo #mwOHQ d am .02 moHme HMQOHmmooo .mm .mme ImoHpmHumum HausuH50Hn mass: Ehmm was onEocoom HmHSpHDOHMmm mo psmfiuummma ”moHSOm . I H OH o o wuHmMm>HcD .pcmfim .mmHOGH pmmz esp m .Uwum>HuH50 mono mma £0H£3 pcmH so npzonm wumtcoomm mH #H .msusonm poms CH wwuw>oo pqu on meHmmm sump HmooH m mH :muMCHSH: sum“ one .mmwup HHmEm Ho wndufim Q .menouHunmu & mDOHHw> mflp CH coxwu wst msmcmo HmasuHSOHHmm was“ mums» esp 0p mpcomwmhnoo HOOH Cam rmmmH .OmmHm OOH llllllllllll «NIAVN llllllllll OIOH ©.®N VINM mwnom +Oom OOH 0.0 O.m >.HN 0.0m ¢.O¢ mwuom oomv I OOH OOH O.wm h.mH b.md meom OOHv I m OOH OImN m.w H.©® mwhom mv I O usoonum Nfiwumnflsm 00H>Hom mend mVHHmHUOOB Hmpoe nHWMMMMHO WOIHHHDM was ummnom UQMHmmMHO OGMHQOHU whomwumo wNHm m.HomH cam ommH ImwawnH “was .mmNHm unouwMMHo mo manna an scuafiumm mo meII.VH.N mamas a . 5' q,- “‘r"-‘c-'r-v Earthen death ou‘ V 5' I .1 I. ..I.“? “I" ...Y:' De; 5“]. g . L...” A. ;“‘*a-se ’ J. $..». -.--\n. c “I- . an", .3 : ;‘-31.\-- .. :‘7 :v .“.G “Fa ' '- v‘.‘ F u I \— nv_‘,' u... . .‘I‘... ‘ ‘ fi".:v ‘ ' \— I ....Z:3 M. v | -- I n i.., v ‘ . - I. ‘ A H a: q : _ « ...HQH“ ‘5.“ ‘5 C a- ‘O ‘U h ““ ‘n~: "...-.. -.‘-~ I ‘ ~ ‘ ~ ‘ F“ N- ~ \ ‘ ~ a... . ‘ . u. \N -~:§ q“: ‘ en ...-t. “a“ ‘ ‘I. ‘t - ‘ ‘h‘ l\::‘ I"“‘ «n I ‘ . 5 ‘IIu‘u_- ‘ ‘-._ ‘ - .. Fs .‘ ‘ h _ Q ..u.‘_ ~ . ~‘ ‘N “\- ““I. ‘ ‘ -. __,‘ ‘ “ u\\-. ““H “A- \‘ ~‘“»u § ‘A ‘\ “ ~\ .‘ .. ‘x I \ ‘\Q . “H‘\\ .M ‘ \z; \ ‘ V‘ \ “ \J M \ I‘M I ‘k‘ I “‘ “\ . ~ ‘ ‘. “ ~ I \ \R \ V'— 64 and tenure patterns of the agricultural sector. This dichotomy manifests itself as “dualism" in the agricul— tural sector. However, it must be noted that the exhi— bition of intra—sectoral dualism in the West Indies is only a further manifestation of inter—sectoral dualism.32 For example, the average output per head in mining and process is over eight times as high as agriculture in Trinidad and Tobago. In Jamaica, output per head in mining and processing is over 20 times as high as agri— culture.33 This general gap in sectoral per capita output also holds for the other territories of the region. To say that dualism exists in the agricultural sector of the West Indian economy could be extremely misleading if thought of in terms of "complete” dichotomy between plan— tation and peasant agriculture. While it is true that the 32See footnotes 8 and 13 of this chapter for notes on the concept of "dualism" as used here. We see dualism in the "real world" sense as being characterized by three major features. These are: (1) lack of specialization , on a significant scale, (2) lack of regular production of a Surplus with a view to sale, and (3) almost stationary technology. See: Meier, Gerald M., Leading Issues in Development Economics, New York, Oxford University Press, 1964, pp. 48—89. 33 . Cumper, G. E. (Editor), The Economy of the West Egg, Institute of Social and Economic Research, Univer_ sity of the West IndieS, Jamaica, 1960, p. 114. "ration economy 1: .15: be kept in lziiar. aaricul"'-*o . Ian.» 4 . - ‘ ..., ' V“ “ren- _ (3” WW . O V A n ‘ " o : JF“\":‘Q' “Yb-'1‘ 00" .y‘-» U- u ..': :AA‘fi-.' ‘ 1 P‘ "A AC “-v UT: u-» "V'uv... ‘ . .. no. ._ \u- ‘— ~... .3 . .Vusv. fi“ Y‘ ....~..~ vy.-: . .,A ' . ::: ~fifiv ! *4 - v::. my I I: ‘ v.A\". . 'Q “I. 1“ ~le" b I); .‘u 2“ \ ‘3 5D» 65 plantation economy is largely geared to the export market, it must be kept in mind that there is no branch of West Indian agriculture which is not involved in export produc— tion. Export production is not the undisputed domain of "large-scale" producers in the West Indies. Historically, the economy has been characterized by a high level of in— terdependence of the plantation and small farming systems. Many farmers operating at the near—subsistence level never— theless gear their farming enterprises to the production of certain export crops.34 In addition, many of these farmers make up a significant proportion of the seasonal and casual labor to the plantation. Plantation or "estate" enterprises have command Of, or access to, a substantial amount of financial re— sources. In addition, the level of technology and manage—- ment employed on these enterprises is generally superior to that on the small farms.35 This does not necessarily mean that large—scale farming enterprises are more ”effi— cient" in the West Indies. On a private account, there M 34The term "subsistence" is used here in the sense of a relatively low level or standard of living rather than in the sense of a lack of a marketable surplus. 35 . . The term "small farms" is usually applied to farms of less than 25 acres in the West Indies. I. w. evidence tc .. allccaze rescur: I Q n.‘:'; ‘mflf‘"" 'F a. l I . , "\IO‘. ‘VbbJogv’ '0. fl . ‘ . :pn: anpbzbfifin AI .QU» u--..uu--\Hn. C. a . ". A V ’ o ‘ ‘~ vv .“ .. —§ H a I .P" I-‘uvu. g) fi‘---.." l . I, . . ,. . ' ';n-:n ~:,. '“ :"'Vvvvu ....g-..‘ ‘- “UK, (a! (’N ' ‘qv. —I . I ‘ F: "‘ ~PA- .A“ “--..-. IQ." " "a- \. .. "h. A.- “:3“ h a”. v. "n u I: ‘ . . . _I . -\ . -q ‘u- . ‘ '- «u. a ..u -.. a fi —. "V a A- . -I ‘ V u,‘ \~~‘Av . . ‘ie‘. 'x -V» “' ~ I v I ~ . -_. - 2-.“ ~ . a. ‘ h A s - _~u ‘ I.» _. .- . . .‘ “I 2““‘ I ‘V H ‘ b \, ~ ' “" \n‘ ‘ ~ ..- I ‘ I "sa ‘-._:\1 2.“ ~‘ u: I:‘\~‘ Ny~‘\ ~ \ I « Q ‘ g is some evidence to suggest that many large estates fail to allocate resources in the most efficient manner. On a social account, the question has been raised whether the large plantation enterprises are impeding the develOpment process by failing to adOpt innovation rather than relying on protected markets and price negotiations to keep them viable.36 The dichotomy in the characteristics of resource base between plantation and peasant agriculture has re— sulted in a low average production per farm for the domes— tic sector.37 Low average production is in turn function— ally related to a low level of technology, internal and external capital rationing and a relatively low level of managerial skills. Subsequent chapters will eXplore some of these aspects . 36 See, for example: Beckford, G. L., "An Appro— priate Theoretical Framework for Agricultural Planning, " and Best, L. A., "A Model of Pure Plantation Economy," Social and Economic Studies, Vol. 17, No. 3, September 1968, Institute of Social and Economic Research, Univer— sity of the West Indies, Jamaica (Special Number on Agri- cultural Development and Planning in the Caribbean), pp, 233—242 and pp. 283—326. 37 . . In terms of the weights of food crops and live— StOCk products produced for local consumption, the average Production per farm is estimated to be less than two tons. .‘I ...,“ ~«A- '- I..- I ... - "fi‘ :- ' ~ua. - '-q-. I "'— - :‘YNAOH,: .. I‘ F Ab‘p FLA.- ... :BR‘M' bby gy- ‘vvu-.§- ‘. ~- ESQ er . ‘ .."f'v -dky- . r .1 "Y“ H... 9.0 "H A_~ o-o ‘I‘vgu l (I) 1)) n' 67 Coexistence of Agricultural Labor Shortage With Overall Unemployment Another unique feature of the West Indian agricul- tural sector is the coexistence of a lO—l8 percent level of structural unemployment and a chronic shortage of agri— cultural labor. The shortage is not only seasonal as a result of peak labor demand at planting or harvesting. Instead, there is an annual and persistent situation where the supply of labor is well below the demand for workers. The shortage is aggrevated by seasonal labor requirements on larger plantations or the larger farms.38 Thus, it is not a matter of large scale frictional unemployment due to imperfections in the market. The phenomenon has been observed in most of the countries in the region, but is more pronounced in the larger islands of Jamaica, Trinidad and Tobago, and Barbados. The rates of unemployment in both urban and rural sectors suggest that it is unrealistic under present con— ditions to look to the urban sector as an outlet for the 38This phenomenon has been well documented in Jamaica. See: Government of Jamaica, W- dence Plan, 1963—1968: A Long Term Development Program for Jamaica (July, 1963), pp. 34—40. a H' . ‘fi - - - ‘V a 1': '. e. or. r. :Le b be. 0 - ~ P . fl Incl-\.g~ I“? 7' _e u H ‘ \ U‘ be. "...“.Iu» - ' w I‘m-n— AQ’~"~ .In - a \ -1. LJ ""‘I' V'lo‘t“ ’1‘ - n ‘_ . . .I I I -- 1:-Y‘ an ~ I." ' u up ..A-‘ I‘- ":r ‘ We.“ .. _ ...? V»-- |“.‘. .‘ . ‘ A. r- \1.'-“ A I V- I ‘h ‘ . , .‘~1-~., .' .. ~‘.~.h fir. . . | .' ‘ _ . - . p‘~.“ \I.‘ n \ _\ ." -.....~ .x“ ‘\ " a ‘Ie \n‘.\ I \..‘\ s .“ _ \ I| ‘ ‘ I an” ~"‘-‘\~ \.‘~.‘\- .I u ~‘~ .- '\:\ I‘ ‘ . \ \ \~I\‘ &‘ ‘ fix ...“ N ‘\.\‘ \ ‘.\‘~ I ~\ n‘ ‘ " ~\ . ‘-H\ m‘\ ‘ ~N~¥\ \k“ I ‘ NI.‘ .~:.‘ “3 “N \I.‘ :\<\h \ \\ K :\~‘. \~ “ u \“ \K‘V" \ ‘4‘ ‘ ‘ s H 68 rural unemployed and underemployed. This is so, because the incidence of unemployment is already higher in the urban areas in many of the islands. Table 2.15 shows estimates of the distribution of employment for the most recent census in Jamaica (1960) . TABLE 2.15.——Distribution of Unemployment, Jamaica, 1960. I Charac— 3 Labor 2 Proportion of Labor Parish teri S ti 0 3 Force Unemployed 1 Force Unemployed ——————— Number———--—— —---—-Percent———-—- Kingston Urban 58 , 100 10 , 800 19 . 0 St. Andrew Urbana 136,200 22,200 16.0 Other Parishes Rural 454 , 100 49 , 000 10 . 8 aThe Parish of St. Andrew has areas that for all practical purposes are "rural." However, because of the proximity to Kingston, the urban characteristics are strong. Source: Government of Jamaica, Five Year Independence Plan, 1963- 1968: A Long Term Development Program for Jamaica (July, 1963). The chronic level of unemployment has persisted even with phenomenal increases in total output. In the case of Jamaica and Trinidad and Tobago where aggregate output has been increasing the fastest in the region, the increasing proportion of manufactures in output has not Significantly lowered the level of unemployment. Thus, iculd appear the . ‘ ‘. "“"na c-na ': " u __ a .' ‘V‘Wvb v04» -5. -. a -*, . Z \— .Y'_ a | ‘ '“"' ‘.\. I - 9 . . _ Q a :I..' .Avna F! «U... “'M-v' “nu ' I "Qp-A “'7" - """~-\'U . . ‘ ‘3‘“ (‘7'. \Nnv- v . -. . - ‘ a .. :~“-\~.“ ... a...‘ ‘ ‘1!“ A». ‘v- '-"“‘v.. ~ \_“ ‘ flax \ n 69 it would appear that solution to the unemployment situation I will not be forthcoming for some time to come from the in— dustrial sector. In general, rapid increases in output have failed to reduce the level of employment because of two factors. These are: (l) a relatively high rate of growth in the labor force, and (2) the capital—intensive nature of modern technology employed in the industrial sector. The impor— tance of additions to the labor force is illustrated by the situation in Trinidad, where the rate of growth in output has been relatively high. Between 1960 and 1968, the labor force was growing at a rate of 3 percent per annum. It has been estimated that an additional .5 of one percent was siphoned off by emigration over this period. The 1969—73 development plan estimates that the annual addition to the labor force between 1969 and 1973 Will be about 2.5 percent per annum. This rate of growth is adjusted for net reductions for various reasons. With— out adjustment, it is estimated that the annual rate of growth over the period would be of the order of 3.5 per— cent.39 These rates of growth are high and are certainly 39Government of Trinidad and Tobago, Draft Five Year Plan, l969~l973, pp. 170-190- Err-ad the ability THERE . , q :"'V.’,~a H in. J- u ' ' s canal .5! Plowman .. . ‘Hfl w n r A u U o. . ‘n-DCI‘H-y .... J a n . b -..- : ce- 0 \ -—:.. ~-V.~ ‘ w c P ‘ .... Q“; -- _”: 'I‘v. UV...» a.‘ . “...-... “H‘PV§ ”P! . ..:-...- ...-.... ...- i h F'youflfi‘ ‘v-‘“~ . ‘- _-"~ .. NAN!» ~"—..U . ' . ‘ . Q _ ‘ ...... a- -8“ ‘ : 2 .... \igql 5‘ ...b -~-u ‘ . 4,: ..v ‘ v~-..,\ - A -._ .. ...- H ‘C'I‘C -‘ ‘ n! ‘ ‘ ~ ”.2 -— ...» .‘.“b . N. ”r. ‘ . ~‘: \_"‘-\y: r ... ~ ~5V§s A I I .N 9 ~ ‘ fi‘ ..fi ‘ «R‘NA‘ - .q .‘NMU\ ‘u N ‘ M N "v-I v. . ‘ ~ I ..~~_ ~ a A ‘. “¥\_ \ . . “‘. m. \u: \ \ ‘~“‘ '. \ s» suuvty‘ \ ‘- -. \y‘ \— \;~~.“ .“‘ ‘ \“ . ‘ Q ‘ ‘ Q . Y‘“ ‘~ V . ‘qu ‘ . h. ‘fi sng- ‘khq‘A‘ ‘ ~ «.\‘\A: ‘ ‘I x.‘ . \ ~ ‘ ‘\. a . x“, Q‘ 5“». ‘ ~. ‘ K“ . \ "N ‘ »-.\‘“~\ “\~ “ t- ‘ \- .‘ ‘ ‘~. -‘ x y. ‘.~ 5...\ \\ ‘\; i‘ \\ ‘ L 'x \ ‘\ ~\ "\ ‘ ‘ \ N I “ ..¥ . . ._\ , \ N N w “1“ - 5 ~ ~ ..\\ x“ ‘ . \\, . g“ \ \ ‘ § § .\\ ‘ \~ ‘ ‘ \\. 5Q "‘ ‘ | ‘. .\' h . x‘ ‘ ‘~ \ \ ~~l K ‘ \ ,‘ ‘ “ . .2 .‘ “\ s \V \ “‘ “‘- \‘1\ ‘ .\U“ “v‘ ‘ x 70 beyond the ability of the industrial sector to absorb under current conditions. However, the peculiarity of agricultural labor shortage and general unemployment coexisting in the area comes from a set of features unique to the economic struc— ture. Some of these features are: (l) the extremely powerful union movement in the territories; (2) relatively high wage—paying tourist industry; and (3) the close prox— imity of the islands to the North American continent, which makes for a rather strong international "demonstration ef— fect." The relatively high wage rates obtainable in the modern sectors (bauxite in Jamaica and petroleum in Trin— idad and Tobago), tend to raise the reservation price or "Supply price" of labor in the less productive sectors. Lewis suggests that wage earners in the less productive sectors raise their sights, and now demand what they consider a living wage. Even if unem— ployed, they refuse to work for less than they Consider reasonable. So those who are willing to employ peOple but cannot pay the new wages R“ 40 The ”reservation price" of labor is defined as the highest offered price at which a seller still refuses to sell. He will sell at any figure above the reservation price, In the sense used here, it is meant to indicate the minimum price at which a seller will sell. ‘ind that there the midst of u: "- :u: ' -p A . fin . :cn .-\ ‘ hw.‘"’ “5&5» ., ‘ R'N'N - \ v‘.".“ .‘.‘V‘ M \Q“ “a... u ..x‘ (I) 71 find that there is a shorta e of labor even in the midst of unemployment. Sheltered High Cost Export Agriculture One major consequence of the heavy reliance on enclave sectors for growth is that agricultural eXport earnings and GDP have become dependent on sheltered in— ternational markets. The economies are not particularly well equipped to compete freely in international markets. The units are high—cost producers of most export agricul— tural staples. To a great extent, this reflects (1) high labor costs, and (2) inefficient and obsolete production techniques. West Indian sugar is not competitive with Australia, Mauritius, and Hawaiian sugar. West Indian bananas do not compete with bananas from Central America. Citrus from the United States and Israel is more competi— tive than West Indian citrus. Cumper summarized the sit- uation when he wrote: . . . the whole West Indies is at the moment a high cost sugar producer, partly because the protection it has enjoyed has permitted it to indulge in what, to a laissez—faire economist, 41Lewis, W. Arthur, Jamaica's Economic Problems, The Gleaner Co. Ltd... Jamaica, September 1964, p. 3. I I F. bn n q a I-G . v. in.» :0.G-V {2291' the ‘1.-. .‘l . "‘1" a V. 1.. \ ... I -.-.. “QC“. 5‘ ‘ - ..2'::A \ ,. v‘ ‘ _ haau ..uu.' 5““ vt- ivn. .. ~‘: Y: ”A “....-. b . ‘ “Fa“‘V . "' b-.-._u - ‘ Q . - F‘nu -_‘r“ E. II II .- .--u\¢_._'.:. P: ‘0: I. . I . .“\-.“_. . _ b"‘- '- : nv‘ . . V—H-¢b“_ ~. - - -\ . ~ “‘~.. ‘Qc H". A“ AA-._ yg,‘ V. s-.~_. .. . "u’C I I 1:) II) J l I. (I) p 72 must be classed as luxurious—~a persistent holding back from the full use of labor—saving devices now available, the maintenance of a fringe of "peasant" cane suppliers, whose ef— ficiency is very variable, and the preservation of the share in the market of small technically backward factories. Under the umbrella of Commonwealth Trade Agree- ments (largely with the United Kingdom but increasing with Canada), the West Indian economy has not felt the full pressure to change the technical structure of its export agriculture. The possibility of negotiating for higher preferential prices under conditions of rapidly rising production costs has tended to reduce the incentive for seeking ways of coming to grips with the cost problem. Under such circumstances, it is not difficult to see why the present pattern of export production persists. Ob— viously, in the short run it is less painful to spend months negotiating for increased export prices than to apply the technology and policy measures, which, while necessary for increasing the efficiency of the system, would also disrupt the industry. M.— 2 . 4 Cumper, G. E., Op. Cit., p. ll. U) 1;: l n‘! D“ J,‘,, “}a ;o:. y‘r-‘.u v55» ! ' Q I ‘ I ‘Nfla uh: A. ‘r‘o f‘ H ""v v . ho.» ..-U..\— d ‘ I ' h ‘ ' ” w \ FA: _,aln ... -.._ ...... nut-4‘. -..» .~ ~I . " ‘ T \ i. .u A‘y- " . ....ci.__.H . . ' ‘ ~ ~ I ‘ ‘\ Aha ~~~.' “..u . n. \ ‘Ic -. . “2n. n« ~ y.-..---\.It;.-' kc: V..A . ~ ~: ‘Q A- ~5‘A' ...:- - C§U 5- u‘~|‘-.. . .. ‘\ , - -v,‘~ “n.‘ a ..4‘ -‘\-. ' ~- A‘. ...V ‘ [u 73 Summary and Implications for Agricultural Research The West Indian economy occupies relatively favor— able positions on the global scale in terms of per capita GDP. During the 1950's and 1960's the region experienced amp of the highest rates of growth in the world. However, since about the mid-1960's, the growth rate has declined significantly. Physical dispersion, small size, ”open— nessfl'and population pressures all function to prevent significant, basic structural transformation despite rapid rates of growth in output. Growth in output has largely come from the enclave sectors which have not ploughed back appreciable amounts of capital into the agricultural in— frastructure. Capital has not been reinvested largely because profits have been remitted to foreign—dominated shareholders. Domestic agricultural output and technology re— flects the “dual” nature of the export agricultural sector and the peasant sector. One reason why development has not accompanied growth is the fact that the relatively unproductive domestic agricultural sector has tended to mfizpressures on the general economy through: (1) rapid rates of growth in the labor force, (2) high cost of ‘ t "ch tion, resrl * dorestic £00. pr, . ‘ h“ '3: .55 ZEECEC :v a; . ‘ . . I n ' . .floi‘lr. Yo ... fl~vl . -b a ‘V--\"- In. ‘ . I ' V p 1 . . ‘ .IR *QFFn-‘u" -b - _ I”: ‘vbuvu‘ . . .‘gs- ,._ flan '- : q \p a. N" nun. .. ‘ . A-“ ..a l‘.-fl, ‘ “A t I '- _ ‘Hbv... ‘... ~‘Ub5. ... “‘ " ~'~.. infiv- " v. . .- ' - _ ‘ -A-: ‘ H cu“ v v»..- ‘ ‘1 2“~.‘ ‘ ‘5‘: hv '\ nu.~»~l.-n-‘ ~-V ' Q . “ ‘ I ‘ - 2 ~: '2‘ ”a...“ ‘ ~ "-.»u u\1\.. \- s i O ‘n ._ :V 1“ “QYQNV‘ \-\ \. Vh‘~~.. . a “in ‘ .. l‘ ‘. ‘ ‘yzl ~ 5 .~.\i ‘ “ ‘fi’. ‘\ ‘ ~“ "* \ “fin..::- ' ... \ “yku M\. ‘ Q .. ‘ 5““ .. .:\ ‘1 ‘h:_ : ~~h~ “‘M\. \4 . ‘\ A“ “‘R“ 2“ N . ~ I “:~.. ““\“ .‘ ‘ ‘ \ ~ I “‘= 1‘ “““Q ~ ~ ‘~‘ ‘ \ “\fi‘.‘¥‘ ‘V ‘\ .‘N 1“: 5 N‘~ .‘ ‘ x .‘ I s s 5‘ t ‘v \ u: \4 Q‘ ‘\’H . ., n ‘ ‘1‘ ‘ \ ‘ ‘ “a x ‘ ‘ ~~ ““N ~‘\\ ..\’\ ‘. ‘ . \“ , ‘ H ‘ N\\‘\ H‘ ‘\\ M“ K x g..\ ..‘ ‘ \‘o . \ \ \ 74 production, resulting in (3) rising domestic food prices. With domestic food prices high relative to imports, exist— ing effective demand is channeled into food imports. This has tended to affect the balance of payments adversely. With agriculture occupying such a strategic position in the economy, it is necessary to focus attention on the role that it can play in bringing about increased income and better income distribution as well as structural trans— formation. Increased well being of almost 50 percent of the region's total labor force will depend on increased agricultural productivity. Furthermore, agriculture will be called upon to provide a livelihood for a significant number of persons who are not directly attached to the agricultural labor force. With almost 70 percent of the region's population living in rural areas it seems logical to assume that a significant proportion of the rural non— farm population would derive their income from agriculture— related activities. We are convinced that technological change offers one of the greatest potentials for increasing the produc— tivity and income of the agricultural sector. This is not to discount the role of purposeful, soundly based social and political changes in bringing about social and economic trarsfomation. C fried forward a: Braver, that tec‘. 22a; sector, Via ”H‘;:9rarc;or V'- .v- '.~“ 0.09 v- A v :-’ .-V"A—u~ . . Y‘] ‘v ‘ ‘3- a- .'. ...‘~UU- . . - " ‘~ “c. a: . I -.‘.\'-\'%fi ' "“‘v-u. ‘- \ ~- ~.. \ \- V v... ‘ ‘ N‘ . ""'. “P‘- ""c~q u A I ~ \ V...\.\,"\' . \ .V I‘ - V: *3:Q~Y‘A »-.~~A.-\- ‘vau‘y - ‘ .p5-~:,‘AHQ I": .. .“‘-“"u...~ V“ . . .. -. ‘ “ “’R-‘ -‘ r — ‘l.‘ ‘.A~ .. ~‘~‘-VH* . - \- -“' ""Yei‘ 5‘. \‘.¥““‘ . . ,§ "- - ‘ fi‘ ‘v‘ ‘ ‘- N‘“ \ ‘Vu 5‘ k ‘\. M. \.:~:~ ‘. _._“H- ' . ‘5‘ N ‘v- ‘ ‘ h. ‘ 5‘: 2"" s 5" “at-H “in. . w‘\ ~N ~‘.‘ \: . “x l\ \ ~ \‘ '-. . ‘\ ~ ‘“\ \ I ‘ !;~\‘.: N:‘ y“\“ \‘I‘ . ‘ \ “‘\ ‘ “~-V\. \‘ ‘“*\u. . .p . ‘ ‘ H, :¥\‘\. ‘ \“ ~ Q ...q\\ . u‘ ‘\-‘ \“ ‘ \\. \ ‘”\ 3. p C \ ~ ‘7‘ \- \ \\ ‘ \‘ . ‘C . ‘\ \ ““\‘ 5“ ~ ‘ \\ ‘ K . N ‘ \‘\“¥ 75 transformation. On the contrary, such changes must be carried forward along with technological change. We feel, however, that technological innovation in the agricul— tural sector, via research and development, should under— gird the transformation process. Fundamental requirements for structural transformation of an economic structure are: (1) increased levels of indigenous capital formation and investments and (2) expansion in the level of per capita domestic effective demand. We see relevant agri— cultural research and development as increasing the level of indigenous capital formation and investment by increas- ing the profitability of investment in the agricultural sector. Increased profitability is related to (a) the production of superior inputs that will substantially in— crease output, with a constant aggregate expenditure on resources, and (b) increases in the quality of complemen— tary factors of production per unit of labor in such com-— binations that real per capita income rises with a constant ratio of output to total input. With this mechanism at work, farmers' savings would increase and they would re— spond to increased investment opportunities by increasing the level of non—farm inputs. This is a vital component of capitalization of domestic agriculture and a more at it~re F 1 ‘ IE E'e AA»:- and the same: ‘1 ' t- Z"‘" as n ":13. id»; 068‘- e u 'f 1..., ”‘3" "ca 2. V‘s. UC..“ U : a... it ~-\ . a ‘N‘An-s‘ u. R .”-. v‘v-.:_... .‘ ‘L i (n (l) {)J 76 broadly based agricultural economy. On the demand side, we feel that increased income and its distribution will expand the market for industrial products in the rural areas. The net effect of such an expansion in effective demand is to provide firmer linkage between the agricul— tural sector and the industrial sector. Increased tech— nology can generate increased income by (l) reducing unit costs of production and (2) increasing the level of output at constant price levels or even low price levels if demand is elastic. In general, we see the application of advanced technology to West Indian agriculture as one way of com— pensating for the scarcity of productive inputs. In gen— erating relevant technological innovations, we are sub— stituting knowledge and ”know how" for scarce productive inputs. Subsequent chapters will examine more thoroughly some of these aspects. ‘ NF' «ts4s -——. “ IH‘,‘ ‘~ . A: -00‘: :t» v-“ . ...‘h ' -. ~ l ~ ‘A ‘u s“: “‘8‘.- -...g, V Q ~ B \ ...“.— “A... :Y-u‘ "‘-..t . ‘m “n 1‘ \\ " kw: mg». u '\~. rut ; ...q s . \ ‘ -. ‘ \M ‘i‘ y“: N \ Ke~‘\ . u\~v\. ‘u PART II CHAPTER III PERFORMANCE AND COMPOSITION OF THE AGRICULTURAL SECTOR Approach to Assessing Performance and Composition This section examines the general performance and composition of West Indian agriculture, as well as some of the important questions raised by these characteristics for agricultural research in the region. The discussion will be carried out at two levels: 1. General analysis of the agricultural sector in terms of its composition and relative contribution to GDP, growth, employment, income, and food re— quirements. 2. General analysis of changes in the composition of (a) the export agricultural sector and (b) the peasant or domestic sector. 77 In discuss ...ultural seen 1..' s‘no Str. -_.. | l .n- bsnv d \- u I' \ "FM Y‘ .~_:, nth -:- e o a." —-I~ . . . ‘- “7 I re l 1w- Ii..Vs| ‘..\- --.“ '2 =flr1fnv —..‘ .. o... 3.... a I'm; 4 V nA'"”f“' 4 EVA-Hay” : - a- a. q. .n- _ - ‘.‘ \.‘ H: 2 u If) 'T 78 In discussing the relative performance of the agricultural sector (and the subsectors), we implicitly link the structure of the sector (as an aggregate of farm firms) with the economic results that flow from the sector. The link is established through the "conduct" of the agricultural enterprises within the sector. We define conduct as those patterns of behavior which the enterprises follow in adopting and adjusting to market situations .1 The Agricultural Sector in General Evolution of the Sector To be meaningful, an analysis of general perform—- ance in the agricultural sector must specify the conditions giving rise to the existing situation. One must therefore appreciate that the origins of the agricultural sector in the West Indies differ significantly from the EurOpean Pattern. Almost from the outset, crops were produced in ___________________ l . . . - - II II ' This definition of firm conduct is borrowed from: Bain, Joe 5., Industrial Organization, New York, John Wiley and Sons, Inc., 1959, pp- 10-11- ~ w. '7; . Q -FA-"NP ‘10-‘61 ..u.. a PR A- -AAP‘ ...*-...v V_ ‘Vv . .... ‘A - ”A ‘~ - y b . v ”.‘I ..__A ~ ~ .~ ~..».. ”-..“, ' llh"‘ O - ":'~ ’53“ rz-QYW - ~5Mss -.-V-‘ “‘3'... ‘ ‘ ‘ ‘Z. “u—" :I‘ : 5. V IO'yu ‘ ‘ . I~~“ ...: ~~-\~“‘ 2“ .‘uyuu‘. “u ._~ ‘ NR . ~ u ‘.‘ \- ‘ wn“ ‘ ‘l~‘AO.~“¥ '~ ‘a‘-‘ .u ‘ ‘ s 5“: -fi ' ‘.‘ ‘- ‘\.“ ‘ ‘ ‘ \\ ‘ “a _ .. . “it 'C . ._‘ ‘ \n ..w :p\ ‘- Iq‘: \ T— 79 the region largely for export. Furthermore, the bulk of agricultural activities were organized around the planta— tion system and financed from outside resources. Subsis— tence farming of the European type is a recent phenomenon in the West Indies. The seventeenth century sugar—based plantation system was the antithesis of peasant agricul— ture. Although some plantations did provide plots for the growing of food for their labor force, such cultivators were not true peasants. They controlled neither the land nor their time. These forerunners to today's peasantry have been referred to as ”proto—peasants, " since they represented a rudimentary form of peasant agriculture.2 True peasant agriculture and large—scale production for home consumption came into existence after Emancipation in 1838. At that time, ex-slaves proceeded to establish small holdings on the periphery of plantations, abandoned plantations, and in the mountainous interior of the islands.3 Mintz appears to have grasped the fundamental 2Marshall, Woodville K., ”Notes on Peasant Develop— ment in the West Indies Since 1838, " Social and Economic Studies, Vol. 17, No. 3, September, 1968 (Special Number). (Agricultural Development and Planning in the Caribbean) Institute of Social and Economic Research, University of the West Indies, Jamaica, p. 252. 3The evolution of peasant agriculture was rapid. BY the late 1900's this sector had become the dominant acczmic relation . ' . ‘- ' :e-asanr. agricult; I I‘ ‘ 03" h 'n “13“.. f, .Id voa‘v U-h‘., -u ‘ -F H I51: ”pr 'V Ennul¢a|eflhy. a r: HQFHAFA “- u...u:.._e 3;.“ ‘V a]; (l) I \- “4‘ ‘~ 80 economic relationship between the plantation system and peasant agriculture. He suggests that: . . . the new peasantry represented a reaction to the plantation economy, a negative reflex to enslavement, mass production, monocrop de— pendence and metropolitan control. Though these peasants often continued to work part— time on plantations for wages to eke out their cash needs; their orientation was in fact antagonistic to the plantation rationale. 4 The typical agricultural worker in the West Indies Ins always been a wager earner (either in cash or in kind) rather than a yeoman farmer. By virtue of his past rela— tionship to the plantation system, he has tended to emulate the production patterns of that system both in his choice of enterprises and agronomic practices. The combination ofsuch practices, with the dominance of the plantation system, has resulted in a relatively high correlation be— tween the level of economic prosperity and the spread be- tween unit price of agricultural exports and unit price ofinports. Although there are substantial variations among the islands in the degree of dependence on the export tenure pattern in terms of the number of holdings. By the early 1920's the sector accounted for almost all of do— mestic food production and a significant proportion of the value of export crop production. 4 . . . Mintz, s., Foreward to Sugar and Soc1ety 1n the 9.5%, By R. Guerra Y. Sanchez, New Haven, 1964 (p. XX-xxi). A! u . ‘ “pa--.n“ :“f‘ I"'~H‘v'°év-\g.. ‘..u “— ll. '1" :‘fl"fif .- ._ _ . . '- vuv “Hy-b- ‘- ‘ - h ‘ - A-‘n-Qu-‘A“ A- ....~»~._-\“ V- . ~....~ .‘ . " - \A‘.‘ i" a .— Van’s ‘.‘~-" ‘\—\a. d - ‘ ‘.,_ "R —‘\ ‘ h A 3,. .. o ‘v :Vv. ‘ -.. ‘ - H.“ V“ . u ‘h“‘- \ S" e. ~: ”2"“, 1" h... g. y. “a... “ uyab. ,n::‘ . “'\-\,. ‘ ~ " h\"\"\\. ~~~~. ‘ - :‘Y\ ~ ‘4‘“; . .. n a, Q - ‘¥ \ ‘\‘V-\‘ ‘u‘; .‘ (..I“ A.\\I‘: § \ \ \ \,“\\ W... l‘ ‘ . ‘ \‘ , \ “V“‘<\ ‘ ‘.‘\\‘N\ s; “y \ ‘\ Ms‘ “x x . ‘ K\ \ ‘ L \__~ .‘ ‘ N ‘1‘ \ V \ \\ ‘ 81 sector, it is safe to say that even today, economic pros— perity of the region in general is still closely tied to export—import price differential. 99mposition and Contribution of the Sector to Output Assessment of agriculture's contribution to GDP would be pre—mature without some knowledge of the regional composition of the agricultural sector. The most readily available regional data on this aSpect relate to the year 1961.5 Table 3.1 shows the composition of the regional agricultural output for the year 1961 and suggests at least three major characteristics of West Indian agricultural output. These are: 1. Export crops are the major contributors to total agricultural output. For the period covered by the table, more than 50 percent of total agricul_ tural output in the region came from export crops However, there are wide variations among the 5Some more recent data are available for Jamaica and Trinidad and Tobago. However, we are interested at this point in the composition of the agricultural sector on a regional basis and 1961 appears to be the most recent data. H 3,33% 3; .III .v—ndfiv uteri) —._ Her-ow 1.: run... a _ _< n'llhb”:.fl. I4.“Ia|.|fl dill nu.||-ul I i ..1- ...17 :34. llll Ollillllll ..l-u— . 3 _ .2. l l 1 ~_—vv —-v oAH-—- uav |.—AV~.— V—V-A uleM-oe— ”.... . _ ...»..p. u . :- — ...) .. . ......Q . .«vL. Inhav I ..n v I.'|‘. :3, .3 ..w. E 82 IHDOHHmd mo unmfiunmmmo AcmHmpmoHowov .m .m ~hme humannmm ~mmHUCH ummz wflp mo wuHmHm>HQD ~wsmfiwmmqm2 Eymm Una moHEocoom HMHSH .mGOHpmmHgmm>cH QOHU wad Mooumw>HH mo mEmHmoum 0p Undommxomm UHEocoom $38 nmeUcH ummz m£# EH gunmmmwm HmudeSOHumfi ~.h ~Hmmmono mam ~.B .a .mUMMSUm EOHM Umpmmw¢ "woadom .OCHOCSOM mo omsmown OOH Op ms 660 uoc ugmHE pcmouom | \Q .H.3 mw.Hw u .m.o oo.Hm .mumu coHpmsHm>mwmum p4 .H.3 oo.Nm u .m.p oo.Hw .mum“ mmcmsoxo upwuwso p<\m OOH O.Nmm o.mH O.mw 0.0m 0.0m O.mm m.NnH mMHmBzDoo HH¢ OOH w.H v.Hm m.o m.wo m.o m.wH N.o umuuwmucoz OOH v.m O.vm m.H O.vm m.H w.Hm m.m msmHuc¢ OOH m.m m.h 5.0 m.Hv m.m m.om >.v unwOQH> .um OOH H.m h.Hv m.m II II m.wm m.m mHOSH .um OOH N.HH v.Hm v.m «.mm m.m H.m¢ m.m mvmcwuw OOH 0.0 w.m 0.0 H.Hm w.m N.NO O.m MOHCHEQO OOH H.m m.m m.o m.vH m.H m.mn m.® MHHHSOQ¢ umH>mZImpuHm .um OOH v.0m m.mm H.w I: II v.55 m.wm mowmnumm OOH o.m0H n.wH m.ON O.Hm m.vm m.mv m.mm ommnoe mam OMUHQHHB OOH H.MMH 0.0H H.mm m.mm m.Hm m.vv n.mm mOHmeb m.H.z w.H.3 w.H.z I \«w.H.3 #dGOHOm GOHHHHE #EMUHGAH HHOHHHHE #fiGOme COHHHHZ \fiQQOHwnH COHHHHE H Hwnvom. mo H ” Hmfioa mo u H Hmfioe m0 u xooumm>flq . .QOHm . wde> . .mOHm . GDHM> . .moum . 05Hm> . . . . . . . . \HHHZBOU cam mmono HHm u . u . n . n n x00pmw>flq u mmOHU H930 H mmOHU “:5me u .HmmH .mmHucH umoz ~usmuso HMHDUHsoflhmm mo :0HuflwomEOUII.H.m mqmmp 1 o co OOMQOB pun popHQHMB mum chHH om \\ .ONN . .B.B mm ImHm m .B.E OO.Nm n .m.D OO.Hm .mpmu mWQMSOxm “mousse pm .mHmHH u 0.00H mmm 0.00H H fl.OH mm ¢.® 0.00H thafl 0.00H whv ®.mw OOM ®.mm m.m he m.m HH 1. I- I- m.mH QON fl.mH Oh P.HN mm m.mH m.m. mh H.m mH m.© NN m.® m.wH 0mm ¢.MH #0 m.vH om m.NH H.® Nw O.® mm b.0H om m.b ®.wH WVN G.NH ow O.PH hm m.ON ®.mm VHM N.®N ®MH w.h ¢OH w.hH vw w.wH mm O.mN monom HOQMH Hmuoe NON SH pmmonanD omm Hmooe 1| meHHHosa mo mHanwcso ma moOH>Hmm hH uuommcmne mm GOHuBQHnumHO pom mommaaou Hm mmapaaauo 6am doauosnomeoo mm H mcHuSpommScmE a imaaaaaaa maaaaaoaav eaaaaz mm OGHSmHm can mnummnom mchdHosHv ousuHsoHHm¢ AmQOHHm #GwHHSU .pmoo Houuwmv mow wOHOM HOQMH cH mnomuom HEmOme .mw EOHHHHE #QOOme MW fiOHHHflE unmohwm figmdog HGwOHwnH DQMWSOSE . . n u OUHO H ” GOHO .. n Hmpoe u H Hmuoe . . m . . m . . . . UCSOE¢ . . HCSOEfi . Honda . Mwnfidz . Honda . Hmnfisz . monm .moum . . . . . . n n H H .aoaa H H .aoaa “ H . H . u . n . u Hoaomm womH u mmmH u wme .ooolocsh u mmmH Honfio>oz u .ome can mmmH .ommnoa 0am pmanHHe .mouomm an coauosuonm new usmESOHmEmll.m.m mamas sector declined D D berieer: 1935 a ‘ izcreased by a: ...» h...“ "'3 other "8 Y‘d, . . P FAA+AV "1 r. f. ::\-u"u'.' 3-9. L ‘ -1 . I -.": C WWW-:1 I“ ‘nv e“ ‘K:hv . - Io . I nus? 4...: “FRY 1.... ...» “A“ - n ‘:""'Y‘Fh :2." .‘h'.--..u “By C ‘1’. M “fin .4~¥. “ ’ H: ‘ .._» .3. .F ‘ , v. :-- w ‘ ...” ‘y‘ \ \,‘ h .e C ‘I - "'\-~‘ ‘ \ v-A\\I tel“A| V... . ‘ :‘~‘ _ \~.~ “ u \l g“: ‘ ..y ‘I . §‘ ‘ ‘5‘ ‘I ‘ - sn‘ . 1 y.‘c \ “‘\ ‘ ‘N ‘ ‘ “u s‘ ‘ I. ‘ “mg l\" ‘\K ‘\ \ “‘\‘ . \ \~ ‘h 1 "y‘ . \.‘\ t ‘V ‘\\ ~.l‘\.~-(“‘ .‘..: x,‘ ‘ ‘\H v . e ‘ \ . \V‘ “SH? \ R" . \‘I . ‘ V “\4 ‘V V. \“ .M ‘1 - C 91 sector declined by some 12,000 persons, or 16 percent, betWeen 1955 and 1966 while the output of the sector increased by about 24 percent during this period. On the other hand, with the exception of the manufacturing sector, significant expansion in employment accompanied the expansion in the level of aggregate output. However, with the poor performance of the agricultural and manu— facturing sectors, the expansion in other sectors was unable to absorb the 3 percent annual rate of growth in the labor force. The estimated level of unemployment in Trinidad rose from 6.4 percent in 1955 to 10.4 percent in 1966. The inability of agriculture to absorb more labor hiTrinidad typifies the phenomenon of chronic unemploy— ment in the general regional economy and in the agricul— tural sector in particular. In Chapter 1 we discussed some of the variables at work in the region. The reduc- tion in the agricultural labor force in the case of Trin— idad and Tobago cannot be attributed to any major produc— tivity increases in agriculture. While there was some eXpansion in productivity of certain crops and livestock, in general, the performance of export agriculture (par-~ ticularly sugarcane) was not impressive. Yields tended ' ..a" :1 remain const ftsing wage deIE scale retrench'. ah. “- '. it“ A'J {391’ C82. ' I u ‘2'. A. 0- le 2c \uvedu L- L..~ u .‘ J ' a 2.1-Jr "'3- h" n r “U“ Viv-Lab}. «n.4,. A‘A». I‘.’ 4‘ ahhflb 5‘:C. d II;;~ --\ .hf‘va: nv-u uv “‘V‘HH - "7‘ \_~ ‘ "e" “ " *ezr ' ‘V “ u;\,“‘ ‘ Q uQH~~ I.“ “-v; ‘ ."'v.. \ a » \A-~"-‘ . h . ‘ .. .. Hahn . '1‘ §“‘ ‘_ . " '\ ‘uk‘ . i (D / 92 to remain constant or declined for this commodity.9 Rising wage demands on sugar estates precipitated large— scale retrenchment in labor. With sugar accounting for some 20 percent of agricultural lands and almost 40 per— cent of the agricultural labor force, the effects of the labor cut—back were substantial in the Trinidad and Tobago case. This situation is a classic example of the ‘ 0 need to increase the productivity of domestic agricul— ture as a means of reducing unemployment and increasing income distribution and effective demand along the bulk of the population. The pattern of agricultural employment in Trin— idad and Tobago was evident in most of the other islands. The collapse of the sugar and cotton industries in the Leeward Islands in the 1960's precipitated widespread unemployment in those islands. In addition, the failure of the arrowroot industry in St. Vincent was a major economic setback to that island. The Windward Islands were somewhat more fortunate in that a major shift to banana export somewhat cushioned the unemployment 9See discussion of yields under export agricul— ture below. Also, see Table 2, Appendix B, for estimates Of yields changes in major export crOps. Also see Chapter VI. situation. HOW these economies as .zployment g .'f"‘\“ geom ‘ ...”: b are. I 1 Z. n u . Vina, 1“,, ..I.“! ‘2 :-C. .U 9‘ l o .HU‘. J C 'I a ‘F :v-‘a -:.~A..u:. . ~ ‘A "(Aw .. -~‘- u:..E .4 - ‘Q‘VQA ”I" VQ-\,\A ..." n . fl 1.-.: ---\'rt Y” 2" fl".- “‘ V“ v...” —. "K . ‘ ~2Hays ..., V -.. n— u..\' ( r (u 93 situation. However, the reliance on export crOps places these economies in extremely tenuous situations as far as employment generation, increased incomes, and general economic stability are concerned. The following observa— tions summarize the general conclusions of policymakers regarding employment and income generation in many of these islands. It is generally agreed that future growth must be geared to structural change, although posi— tive increases in the sugar sector are not ruled out. The general concern with the employment and income situa— tion in the Eastern Caribbean is illustrated by the con— clusions of a team of experts studying the economic prob— lems of the Leeward Islands. They wrote: Some diversification of agriculture is pos— sible, and this could add to income and em— ployment, but the major growth industry will most likely have to be tourism. It can rapidly become an important generator of income both directly and indirectly by the creating of job opportunities in construc— tion, while the hotels are being built, and through permanent job opportunities once the hotels are built.1 0 . . . . Government of St. Kitts—NeVis—Anguilla, Five Year Draft Plan, 1966—1970. (Unpublished), p. 12. 1 . . . . lBritish Overseas Development Ministry, Report of the Tripartite Economic Surveygof the Eastern Caribbean, Her Majesty's Stationary Office, London, April 1967, p. 113. 7.. m- ' ".n :e a rajor c011; .Y "“2? fit: ,- . '1' :‘- Ute ~»- I . o ' 1 ..~: flan Fa ...-I; at» V L-:. .Y‘ . ‘ ‘- h""/“"‘ ("0- ~"-"v.. 2 V-“ 94 Projections of employment absorption rates of var— ious sectors for the 1970's show that agriculture will not be a major component in those islands. For example, the forecast for the Leeward Islands shows that employment in primary industry will decline at a rate of 2.66 percent per year over the 1965—75 period. This would result in a total decline of about 30 percent.12 The declining con- tribution of agriculture to employment as suggested by these projections, means that substantial pressures will be brought to bear on other sectors of the economy to absorb labor. Estimates are that the level of unemploy— ment in these islands will double between 1965 and 1970 and quadruple between 1970 and 1975.13 Since no signifi— cant manufacturing activities exist on these islands, the burden of providing employment will be placed on the tour— ist sector. There are serious doubts whether tourism will be able to absorb any appreciable proportion of the unem— Ployed under existing conditions. The Jamaican situation 12 Shurcliff, A. W., and Wellemeyer, J. F., Economic Development in the Eastern Caribbean Islands: St. Kitts— Eflflfitflgggilha. (Series 4——Manpower Surveys), Institute of Social and Economic Research (Eastern Caribbean). Univer_ SitY Of West Indies, July 1967, p. 20. 13ibid., p. 16. as covered in ( :e acricultura 12:5. earn-lone “TWP :orn 1..“ 0:51;“. 3V-» 0 T" e3 8220? C' V“ *9qu . ., ‘ .1’-V‘P"-‘,fly\_ ./ "'"".U«'-v—b.. L.» Q. Q . . _~_ : A- -2“ \II . I . v-” V- 'bvon -. ‘ in! -» “(2. :“chR "“‘W *vw we . . .,u . . ' _ Hv:n:~~1“‘r n» .b‘bHU.M-“:‘ . “v. n “ .. ~~ ".5 “5A “1““: Y I ....l W I “2 ':~~ V ...U [\‘V‘d v \_ -‘ - e ‘zN‘AV u,"\~ ‘5 . sh“ A‘. ‘N -- \, ~- ~ ‘ . ....: _ l.‘ 1‘“ “"nu \ . .. . .‘ u“ 5 Q . .4 :‘H ‘3‘ " ...x'. ' : ‘ \» .._|\ . \ t " ~ ~ “‘ «x . ,H h ‘ V q H. \v‘.‘ n‘ . ‘ \ x.“ '3"; - ‘ ' ‘ 'g‘ 3 . \\ .m. “.‘: ‘I \ \. “:~w§‘\ ‘ “it" . M ‘ ‘v \“ ~N)‘ . \‘r “ . \‘ W: ‘K 95 was covered in Chapter II. We will only note here that the agricultural sector has also failed to provide addi— tional employment opportunities for the rapidly growing labor force. Furthermore, the other sectors have not expanded employment to any major extent, although their contribution to total output has made significant gains. In general, it is safe to say that under current 0 levels of technology West Indian agriculture has failed 1 to make appreciable contributions to employment. Given the predominance of export agriculture in the region, and the new drive to be competitive on world markets, plus rising wage rates, it is likely that the agricultural sector will continue its rapid retrenchment of labor. This trend will most definitely increase the overall level of unemployment unless new agricultural technology and planning can strengthen agriculture's capacity to increase the level of employment. Contribution of Agriculture to Food Requirements This aspect of the agricultural sector will be discussed in subsequent sections of this chapter. How— ever, it is important to note at this point that the West Indies has ”“51 from domestic 3‘ increase in per mexcess of PE output-14 This 'surplus" 01' 'I‘ increased leve :he level of 8 level of effec 1:1 in relatic "£- The hi9 Elected in the 21 imported f1 Ieriive denim .600. imports. 96 Indies has constantly failed to meet its food requirements from domestic agriculture. The average annual rate of increase in per capita demand for food in general is far in excess of per capita annual increase in domestic food output.14 This phenomenon does not appear to be due to 'surplus” or ”excess demand” for food. It is true that increased levels of real incomes have increased somewhat the level of effective demand for total food, but the level of effective demand for domestic food items remains low in relation to the high costs of domestic food produc— tion. The high costs of domestic food production is re— flected in the high prices of local food items relative to imported food substitutes. Thus, any increase in ef— fective demand via rising income becomes channeled into food imports. l4See succeeding sections of this chapter, as well as Chapter VI, for further discussion on the food deficit situation in domestic agricultural production and the economic pressures imposed on the regional bal— ance of payments, capital formation, and price struc— tures. In addition, see Chapter IV for some of the empirical evidence of the high costs structure of agri— cultural production in the region. ’:q‘f\’:. :h .l f‘ "HI-tun; ‘ur \- ' 4 av " vngy- . “U- n n..‘ 97 The Agricultural Sub—sectors The Export Sector: Changes in Composition and Relative Contribution The preceding discussion of the composition of the regional agricultural economy established the importance of export agriculture in the GDP and employment structure of the West Indies. This section seeks to specify the make—up of export structure, as well as changes in its composition and contributions over time. Although recent data are not available, we feel that the pattern has not changed to any major extent since the mid—1960's. In addition, our primary objective is to assess the struc— ture of the export sector as a basis for assessing agri— cultural research strategy. As such, the importance of current data became less crucial. Table 3.4 shows the contribution of the major agricultural eXports to total agricultural exports and total exports for the region in 1955 and 1962. The table shows an overwhelming reliance on sugar and bananas. For example, in 1955, sugar, molasses, and bananas alone accounted for 75 percent of total agricul— tural exports of the region (excluding Trinidad and a. «. TH \n s s s\\.5:\:\\ 8.1» vaAaJ n...q»_. 3...... 3:4.— ..LJQHCZXZ ~p....:.—. .... ......Xv. -L?< .... .3... . .... ~ .~\».~VA..; ‘4» .:.-.\/ UAv use}. a .. L3. ...»... ._ Lav ... .. a .a 3.18.5.— III .|.F||“. Hi. "3“ r “I II I": I'. I." u‘ h h‘ . .' I. I ,l I H II .I . I I II .h. I I II I v I .II I I Idl .1 ll I. ' I i v I i I l i | ..I»-..n.~ ueaqa. ..I.A.\ \as.\~\-~s sen.u\/\_ \n. §.\\‘I\ve\...\ nxu; use-quunuu..‘ -\~l\ ...-ac.—. ..V et-...~4I.a ~o.-.s-. .~ ~\./\ ~I.\~.-l\ u.» n~ev~ s...\\ ~ s..I. \ .\ .. \\.~,\.\. Our... Isa-p. .m .m ..pHo .mo ..2 .b .uwphnm noonsom .oaHpeuou mo omumooo OOH ou one so: oanE ucouuomo . . . x0 Gasman um .B.B mm.Hm u .m.D OO.Hm .mpmu aoHumsHm>ooon Hm .B.B OO.Nm n m D co Hm .wumu ogsmgo p n .ommnoe pen pmoHcHHB mopSHoxmm 1l1I1IIII11IIII1111111111111111111111111111111 98 mpuomxm . . . . . mes.mON = H mm H O4 O OOH O OOH Haw ONN HanaanOHsO<= Hence 1% sO.O AN.O N.O O.O mmO mam.H aHaoewmmmmmm mH.O oN.O m.O 0.0 Nem.H ekm.H mH.o Hedusonua sH.O m.O H.O m.O mOe.H mmw.H a demon mm.O e.O m.H H.H msa.m Nmm.m o o F0.0 m.O m.O N.H wHe NOA.N paHH a pm o N.O O.O O.H a.H moe.m mom.m Adv mueseou weapon w mmoEusz m.O H.H H.H O.m mem.m mHO.m daemon m.O H.H m.m e.m eO0.0 eme.m mmoHsO mauuHo e.O m.H w.H m.m mmm.a Has.O aHaum msHpHo a.H H.a O.m H.OH mea.MH HOH.HN doooo k.m m.m O.mH H.NH mHm.om Hmm.km mmaeamm H.H m.H 8.8 e.m aOk.OH awe.» wmmmmHoz m.eH «.mm H.me m.mm www.msH HOH.HNH Madam IIIIIIIIIIIIIIIIII opcoouomlllllllIIIIIIIIIII AHmHmHHOD .H.3 UGMmSOSB NOmH mmOH NmmH mmOH memH mmOH proossoo muhomxm HMHOB mo dOHuHOQOHm muHomxm .HOd Hopoa m0 QOHnuomoum monomxm mo 05Hm> M.N@m.fi «MGM mmmH smmflmvfiH #wwg IWUIHOQVAM Hence one wuuomxm HMHDuHDOHHms Hmuos ou musomxm HmHsuHsoHumd 90nd: no soHuansunooul.v.m momma Tobaoo). Howe‘ , 1 r 6 up, \ ... ... 8 'IV‘ GL'JC: v A R Q 1 .‘ ‘I-nzv‘ :n a,“ I hula. an; ..IV ha a 3:33.“: :1 this I .‘ ‘ -': AF“. ‘ h..- on». 5V..'-‘~uv . ‘ HHv.‘ - .- . \ QY Isa .1Q'~ -V- .‘.» ‘ ‘ m-p- . Ys - h'i‘flq ~ 'u"‘~u\-\,\‘ ' In ‘II (I! 99 Tobago). However, sugar and molasses accounted for some 62 percent of the 75 percent contribution of these three commodities. In 1962, these three commodities accounted for almost 82 percent of the total agricultural exports. Sugar and molasses accounted for some 67 percent of this amount in this time period.15 Of equal importance are the contributions of these three commodities to total ex— ports for the two periods. In 1955, export agriculture contributed about 40 percent of total exports. In 1962, it contributed about 23 percent of total exports. How— ever, sugar, molasses, and bananas accounted for some 30 percent and 19 percent respectively of the 40 percent and 23 percent for each time period. Thus, although there was a 17 percent decline in the contribution of agricul— tural exports to total eXports over the period, in re- ality there was a 7 percent increase in the contribution 15There is strong evidence suggesting that the increased contribution of sugar and bananas to total ex— ports did not come from expanded productivity but rather from more favorable price concessions and expansion in acreage under cultivation. There might have been some expansion in yields for bananas, but acreage eXpansion was significant (particularly in the Windward Islands). See Tables 1 and 2, Appendix B, for estimates of relative changes in volume, value and yields of the major exports for 1955—1965, also Appendix D, Tables 9—10 for yield changes over the 1948—67 period. . § K. h“ :\"'\\¥‘ “\K. ‘M ‘~\\ i ‘h .‘ | \. “Q \- \ \ -\ \‘\\‘V‘\ .. ‘L‘\‘ K ‘\ \‘.\ a ‘, “~‘~.\ ‘ a“ 4 ~ ~k : ~ V ‘\ \ x“ \ \ h“‘ “4‘ a \e \ \ \Ql‘ ‘ »‘\‘ (’1' 100 of the three major agricultural exports (sugar, molasses, and bananas) to total exports. The 1962 figures were up- dated to 1966 (Table 3, Appendix B). At that time, sugar, molasses, and bananas accounted for 74 percent of the value of agricultural exports from the region. Sugar and molasses alone accounted for some 70 percent. Earlier in this chapter we pointed out that the Windward Islands appeared to have been the only region where the agricultural sector provided the major impetus to growth. We will now examine the source of this impetus more closely as related to the export and domestic sub— sectors. Table 3.5 compares the rate of growth of the agricultural sector of the West Indies over the 1955—65 period with the rate of growth in the export agricultural sector for the same period. The table suggests that where agriculture is a leading sector, the impetus comes from the export agricultural sector, rather than the domestic sector. We feel that this characteristic lends further support to our contention that domestic agriculture has failed to expand, largely because domestic effective demand is low relative to the cost of production. While it is true that the cost of production of export agriculture is also relatively high, the level of effective demand has ‘ . . .’":"t "Ob ‘AJ‘, l ,- ‘O. ‘V- II"- huh.“‘ :. “"3 “I. ‘Mvveé L. ' ' I I‘""::Yr;- . "‘ i»-.‘- - I ‘. ‘6.- \ ... "-b~ ~ .- .. ‘ u .~7.§ vvgr‘~‘ u.._ _ .- '-“'~ ..IC.._-l. “K. a .. .2 Va \ e . n 0§“.“~ a L 101 TABLE 3.5.--Relative Rates of Growth of the Agricultural Sector and the EXport Agricultural Sector, West Indies, 1955-1965. Rate of Growth Per Annum (Agr., Forestry, Fishing) Country/Group . IAgricultural Sector,IExport Agricultural Sector, I 1955—1965 I 1955-1965 Percent Barbados 1.7 3.4 Grenada 1.8 9.4 St. Vincent 2.9 1.9 St. Lucia 5.5 11.0 Dominica 7.9 12.3 Antigua —7.0 (dec.) —12.4 (dec.) Montserrat —O.2 (dec.) —3.4 (dec.) St. Kitts -l.8 (dec.) —1.5 (dec.) Eight Averagea 1.9 11.8 Windwards 2.0 8.2 Leewards —l.9 (dec.) -3.7 (dec.) Barbados 1.7 3.4 Jamaica 3.6 2.6 Trinidad 3.3 N.A. West Indies Averagea 3.4 N.A. a . Averages are computed separately and thus don't relate directly to individual figures. Source: Bryden, J. M., op. cit., pp. 5—9. been maintained through various preferential agreements. For example, in the Windwards the rate of growth in the agricultural sector was 2 percent per annum, while the rate of growth in the export sector was 8 percent per annum . On the other hand. in the Leewards where there was an average annual rate of decline of some 2 percent in the agricul decline of ale. agricu ture tc esoteric crise 19: crises, s. . Q ..Il‘lh ”YIN"?- . I ‘ UQI'U at. In..-» 4‘ * ES ‘lhT‘. ‘ dVO-VI ‘ ‘ u. '1: “3" :5 . ~y... "VU_\,\"_ .. ‘ N ‘ e :1! 2*"211 ~~~n “.H‘-‘y - - ‘ I . ”u“ "n; h I ‘JIIH b...» V L I \N ‘ . ‘:I\I“ Inn 5 "‘\- \ “‘yn‘ ~A W‘u—‘I ““‘ ‘ he. ~Vu.“ Vi \ ‘n‘ ‘ 8 ‘ Iva: ..g ““H . \“ I V x a I i ~¥A 1W ‘§ ‘ l x»- “ .: ‘ ul“ .‘ “-‘ ...‘: 3:» 102 in the agricultural sector, there was an annual rate of decline of almost 4 percent in the contribution of export agriculture to GDP. With export agriculture facing major economic crises in terms of costs of production and fall— ing prices, serious questions arise as to the duration of this growth stimulus. The Domestic Sector: Changes in Composition and Relative Contribution Domestic agriculture in the West Indies has long been neglected in the planning process. This neglect has been largely attributed to the evolution of the economy around the plantation and export system, oriented toward foreign markets. Earlier in this chapter we briefly re— viewed the circumstances giving rise to peasant agricul— ture. Domestic agriculture achieved any major proportion in the area only after the 1900's.16 Generally, reliable data are limited on domestic agriculture. The analysis of this sector will be carried out in terms of: M l6See pp. 78-81 of this chapter. Also footnote 3. For general discussion of the structure of West Indian agriculture, see: Enochian, R. V., Prospects for Aqricule ture in the Caribbean, USDA—ERS, Foreign Agricultural Eco— nomic Report No. 58, April 1970, pp. 1—12. ii) movements crops, and 11'. is '.. ‘ nflufil I - H I. .. .I.“ "g'I-‘- ‘ .‘ . ‘- ~yc "..--A“ A- ...~"-V.. V- .. . IM‘“ 2~v1n. "“‘14. ‘9 ‘4». v u —‘:v:' ‘ a. .-1-usu-' b.-~l .‘ ‘i \ 78 ‘fi‘ -.. ~-gt. dki M'. I‘V‘x": 3 .1. .-.»:w “ \ .‘fi "a... ”‘5- “VA .bt_ “st NV “a ‘2 ““N- ' “Ya OMVB y‘ K \‘ “ ~ . .h..,“V: 2", H‘_\ \‘K " x “\'V ‘I‘Y:\.~‘ . ‘k‘VQO: n“ ~ ‘ ‘ 3:. 3.1; A V...» “I ‘\.‘ Ox ‘ ‘ - N \ . .~\\ 3.73 Q ~ 1‘ ‘1 ‘ \ L ‘: ‘ ‘ . ,‘N‘ ‘ ‘ x “‘\A‘):‘ Q‘- ‘ \ ‘ in ‘\~ 3 ‘ l :\ \s \ H ax” y‘tnéfir 103 (1) movements in acreage, volume, and value of staple food crops, and livestock production and (2) food production deficits. Table 3.1 shows that domestic agriculture and live— :tock accounted for a little less than 50 percent of agri— cultural output in the region in 1961. However, there are wide variations among the islands with respect to the con— tribution of the sector.17 A major characteristic of West Indian agriculture is that domestic food production is almost exclusively confined to peasant cultivation. In general, these farming enterprises are less than 10 acres in size. Domestic food production is largely made up of two broad categories of staple food crOps, i.e. cereals and root crops. The cereal crops are mainly rice and corn. The root crops include yams, sweet potatoes, cassava (manioc) and the Aroids.18 Although data on staple food crop acreage relates to 1961, the general movements sug— gest some definite patterns for this important food group. Table 3.6 shows that cereal and root crop acreage declined 7 . , See pages 81—84 of this chapter for discussions of individual islands' composition. 18 . . . The ArOids include: Cocoa Yams, Eddoes, Tannlas and Dasheens. 'I'ABLE 3.6.--Ci‘. a fl‘rfl§ ‘ ‘ IV:‘ V15» ~ ‘ V. ‘ hpg‘..’,‘\~ \: -\ ‘nt‘ AME» -“I I \ lqh‘ [A‘Al ‘I‘.“"v\ O ‘ . \‘uupf‘" ..I 5“.» C. Le: x. ‘ Q IHN “-\J '1‘- ‘5“ ‘M\ .. 5‘ v . fl.~ ‘ ‘5 N I h ‘ In - “.1 . ~\.“~ ‘ y . ~M‘M‘NY ~'.. .1 ~ l x.“' “ r. ‘\.\Y\‘ . \uu \‘\r~: ‘. \\ ‘ .‘N‘a “ \ ~ ‘ ‘ Anew“ D“ \ . \,_ . ~ "1 \“Y\\ . y \ .‘CHF . . . ‘ \ :~\. “~.‘ - .‘\‘ ‘~ \ \ ‘2: “fl ‘ - | .~L’ \DL: \.. ‘ . \ ‘ ‘ ...‘ t :q“ ‘k\\-‘ \ ...”. . ‘t“':\ K \\ 104 TABLE 3.6.——Changes in Cereal and Root Crop Acreage, The West Indies, 1946—1961. Cro 3 Year 3 Changes in Acreage, p . ' 1946—61 1946 I 1961 —————— Acreage—————— Percent Cerealsa 45,000 59,000 +31 Root Cropsb 103,000 83,000 —19 Total Roots and Cereals 148,000 142,000 — 4 a . . . Mainly Rice and Corn (Maize). b . Includes Yams, Sweet Potatoes, the ArOids and Cassava (Manioc). Source: Leslie, K. A., "Local Food Staples and West Indian Economic Development," Report of the Faculty of Agriculture, 1967—1968, University of the West Indies, p. 13. by some 4 percent in the region between 1946 and 1961. However, it is important to note that the acreage under root crops actually declined, while that of cereals ex— panded by some 31 percent. The relative movements in the two groups could have been related to shifting income elasticities of demand for the two food groups. For ex— ample, USDA estimates showed that at 1959 caloric levels, the elasticity coefficient for cereals was about .45, as against .2l for root crops. During the 1940's. the A elasticitv COG 4n '3 is.» :5;- ng compc new H .p 1 fl L e C033 - u -u u an .... v.....\¢ a . 0 3“ 2 u l l c . n b.& 5 “&?fi bu..-» ‘ g 'H'A‘ ‘ -4 V~ sun; 105 elasticity coefficients were relatively higher for roots as against cereals.19 Table 4, Appendix B, shows the changing composition of the two food groups in total food expenditure in Jamaica and Trinidad and Tobago. The move— ments would tend to support the argument regarding shifts in the income elasticity coefficients over time. One thing is quite clear: there has been a significant move— ment of land out of root crop production. However, deSpite a 12 percent drOp in the relative proportion of root crop acreage (as a proportion of total roots and cereal acre— age) root crops still remain the most important food group in terms of land committed to staple food production. The relative movement in cereal and root crop acreage was not uniform over the 1946—61 period. If the period is broken down into three sub—periods, i.e. 1946—61, 1946—54, and 1954—61, the movements for cereal acreage 19USDA Foreign Regional Analysis Division (ERS 94), Jamaica, Trinidad and Tobago, Leeward Islands, Wind— ward Islands, Barbados, and British Guiana: Projected Levels of Demand, Supply and Inputs of Agricultural Prod— ucts to l975, p. 70. The 1958 estimates of income elas— ticity for cereals give figures of 0.45, 0.3 and 0.6 for Jamaica, Trinidad and the Leeward Islands, the Windward Islands, and Barbados, respectively. On the other hand, the figures for root crOps and starchy vegetables are 0.06, 0.3, and 0.1 for the same territories. were 31 percer period, ISSpEt 13:! ~11 Lax. Lie {3.5 . "“1“- . ' «ML ' Zvfinw‘ 7"..‘R it": 2 u h ‘0 I I 1' t u n; (I) {ll Ir) . y- . ~‘ .~‘ “~u~\. .’¥"~ Y‘ N...‘ CVA ' -y, L) . (D :‘~ ‘ “4“: x. " c ~' . \ JQ (I) \ i ._ W‘ N .‘i‘V “ Q “‘\. . \ _\ \‘~ “:3 \K. ~ “‘5 W ‘M o. ‘L \ 'N‘ “. \-‘ \“;: ‘s. 106 were 31 percent, 111 percent and —37 percent for each sub— period, respectively. On the other hand, root crOp acreage were —19 percent, 45 percent, and —54 percent for the periods, reSpectively. Thus, it would appear that the major withdrawal of staple food crOp acreage came after 1954. The period of withdrawal appears to coincide with the period of increased prices for the traditional exports under various commodity agreements. Table 3.7 shows the given acreage composition of individual cereal and root crops as a proportion of acreage planted to each group of crop. The table shows that rice acreage has been expand— ing and that of corn declining. Corn was by far the largest cereal group under cultivation in the area. Fur— thermore, it shows that although acreage under root crops has been decreasing in general, the decrease has been largely in yam and cassava acreage. The acreage in sweet potatoes has increased. Data are extremely limited on yields and value of the staple food crops in the region. Tables 5 and 6 (Appendix B) present figures on estimates of production and value of cereal and root crops for Jamaica and Trin— idad and Tobago for l964—68. The figures for the two countries might be representative of cereal production in Crcp Grc «- vN‘ . ' N VVl.\t' ‘~ ~\. Pa ‘N. \ ’fi ‘ \4 N "‘1 “'0 ~ . ‘H \ l \- ..‘: Q N \ l \V \“ Ev.“ xxxtl‘: ‘h ‘\ . “‘ \ ‘ ‘\ ~\\\‘\. ..‘H‘ ‘. \ ~ 0.“ N \:\“ h N.“ \Q‘h‘ ..,\“; ,“-‘~ \ I‘ . \ \ “\ “Q b.|¥ 107 TABLE 3.7.——Proportion of Various Cereal and Root Crops' Acreage to Total Acreage of Cereal and Root Crops, The West Indies, 1946—1961. Year Change in Acreage, crOp GrouP 1946—1961 1946 1961 Percent of Total Percent Cereals: Rice 26 38 +98 Corn 74 62 +10 Total Cereal Acreage 100 100 +33 Root Crops Yams 33.8 33.3 —20 Sweet potatoes 26.0 31.5 + 2 Aroids 20.5 23.6 — 7 Cassava 19.7 11.6 —52 Total Root Acreage 100 —20 Source: Leslie, K. A., "Local Food Staples and West Indian Economic Development,” Report of the Faculty of Agriculture, p. 15. 1967—68, University of West Indies, the region, since these countries produce the bulk of cereals in the region. From Table 5, Appendix B, it would appear that cereal production declined by almost 16 thou— sand metric tons, or 41 percent, between 1954 and 1961 While the acreage in cereals declined by only 37 percent over the same period . 15pe ned over th 1 deal rem 4.5 milli ..ed f :11 5 U relative a .... a all. qll. 0““ .. _. . ".3 u-.\, a.\ 5.17.”. «ea: L“ ... “a“ u .- V 0125' p. Q “1":H- "Wan“ f‘ \, ‘1!- -. ‘ a :1nec custar- :1.“ q Eta my 5 he. WM . ~ a h» “N; H.H «\v AL 1: Qt «\~ 304. , . a t v \ .Q» A. . us. 108 over the same period.20 This suggests that yields have declined over this period. In value terms, output de— clined from 4.5 million (U.S.) dollars to 2.8 million dollars, a relative decline of almost 38 percent (prices remained constant).21 Between 1961 and 1968 there was a modest decline in output of about a thousand metric tons, or a 5 percent decline. The value of output has remained constant between the two time periods. It appears ex— tremely likely that recent trends will continue, unless major technical innovations are forthcoming along with significant shifts in demand patterns. Data are scanty for output and value of root crops. However, Table 6, Appendix B, provides some insights into the relative movements in these crops for Jamaica and Trinidad and Tobago. The table shows that root crop pro— duction increased by almost 95 thousand metric tons between 1954 and 1961 for the two countries. This represents an OSee page 105 for the relative movements in acre— age over the sub—periods 1946-61, 1946—54, and 1954—61- 21 . ' The prices used for value weights are 1957—59 averages. See: (1) USDA (ERS), Indices of Agricultural production for the 20 Latin American Countries Plus Guyana, Jamaica and Trinidad and Tobago (Revised 1954 through 1965)' ERS~Foreign 44, January 1967. (2) USDA (ERS)' £3§19§§—9£ égricultural production for the Western Hemisphere, Exclud— ing the United States (Revised 1959 through 1967)' ms— Foreign 264, March 1969. increase t 88percent the expanded ref 1. h sweet g ,- .- l - output 0 are |L 1'1 0 orcduct: at I - U u . filing ‘h \I' A..\. 4.; Qu .nu ‘-‘hA uh: u .5. .L“ .3 a 0 «NM any .-. «a n u .Fu .s . .1. r. nu Ml. .1. r; bu ml. .1. n u HQ I! - flux. at Cy 14‘ gm.“ 3» .3. Ar... 1.. . . . . ... . ... L a _ .C C .Q E .C ... . . 11 . C r -.. an S Ru 2 a” r t 31 C a S C .3 a a .. Ta ‘3 S C r. a. o .h .. C. n .. .--. S w a 3 . 1 .Q S 3. -7 .. C ..o «a a“ C it .Q .h... an .1 «C r : 2 C ....n T. C S .7 i t a 3 an my. 8 AL AV s» my A; nu an hkt «G .I. . . 9» x3. ...“ l. i, ‘ Qt \\ \t a.» .3 «Nu Q» Q» my; . kl. NU \ a J ‘ u. \ a: .. t e at .. a .. . at :1 Q» n... Hi \3. a t xx ..I“ ‘Hfi; Nhu Rik u is \hu nu ‘ 1. “Ls UK A\ \uH a a“ an... ... ‘3. T. «t - a» T. an . v\ ..u .t A: ..I.. a u "...- .3 y a. a TL \ a t . 2L L e \t V. "1.. a: 2» . . N» .1 . u .. fix ‘ a x t A: a» 1‘. 1 . . v a is .. ~ ~\\ a: :x a x ht. Y. ~\~ Rh. 2% ‘ a a \ wxa \\M u ... AV. 1» x .. HU. 1. :i ~.- on» \V. \FL at a. v~ . . 1.x 3‘... .~ . BL. ... u u — . y .9. .lxu :‘ . y :5. h s l» .p \ .. . x . A v ‘4‘ ~ ~ ~\u a s x a N- u e .\ s ‘q x N x s s. .e x N ‘ \.\ 109 88 percent increase betWeen the two time periods. The bulk of the expanded production came from Jamaica where the output of sweet potatoes and yams more than doubled. Irish potato production increased almost fourfold over this period. At the same time, cassava production was on the decline in Jamaica and so was sweet potatoes and yams in Trinidad. However, the output of cassava in— .' i creased in Trinidad over this period. The combined value J of cereals and root crop for the two territories was approximately 43 million West Indian dollars in 1961. This suggests that the value of Jamaica's and Trinidad's staple food crops accounted for some 43 percent of the total value of non—export crops in the West Indies in 1961. This could be the case, since the value of non— export crops was some 99 million dollars in 1961 (See Table 3.1). In addition, the data indicate that staple food crops accounted for approximately 9 million of the 34 million West Indian dollars attributed to domestic crops in Trinidad for 1961. This represents about 26 percent. Of this 26 percent, approximately one half came from cereals and the remaining one half from root crops. The Situation is quite different for Jamaica where cereals and root crops accounted for almost 34 million dollars of I llion dolla l m51m I a I U t fins represen Ed. 18 cc alvs‘ .— \I H .. . A 565 percen d1 ‘ era U ‘ Q I 2 “,AW‘ ALA/at ;‘ r ~ If.“ H.“ M‘ " ‘.u\4 AN... \ou'x. e .4; . ‘~ fl; r~rCe“~ 110 the 51 million dollars attributed to non—export crops in 1961. This represents some 65 percent. Unlike Trinidad, this 65 percent is composed of 96 percent root crOps and only 4 percent of cereals. Our analysis of the domestic sector has concen— trated on the staple food crOps up to this point. Earlier in this chapter we commented briefly on the relatively backward state of livestock production in the area. Table 3.1 showed that the livestock sector only contrib— uted about 15 percent to the agricultural output of the West Indies in 1961. Mayers and Cropper estimated that in 1958 Jamaica's total agricultural production was valued at some 78 million (U.S.) dollars of which livestock was valued at about 10 million dollars, or about 13 percent. In 1967, the estimates are 92.5 million (U.S.) dollars for total agricultural output, of which livestock produc— tion accounted for about 12.7 million dollars, or about 14 percent. In the case of Trinidad and Tobago, livestock production accounted for some 4.2 million of some 31.3 Hullion (U.S.) dollars, or 13 percent in 1958. In 1967 livestock production accounted for 6.6 million of some 34-4 (U.S.) million dollars, or about 19 percent. . .ai: nroduction for Jar k Tables 7 and 8, Appe the tab. ‘1 1 ll LL ..I. 0 in add .H.. Y; a» has made v “inn am. 0 . ‘ u d 3;.“ at: new ‘ C ‘H-VU\'..‘ ...-"Yap, '\ vxv -_.€ 0 -...H‘\' ‘ ‘.‘U x u“: e 1"nraxd - a.» V ‘ xfir '-b.. .\ ODE-er 0' P» \v. n~ o ‘hfi- ..._ Va.“- rw- ... .‘ Ag. v. b.‘vfis lan~ '~» VAN“ Q‘VUI ‘ o ‘ ~:. ”‘5 mg“ 111 Tables 7 and 8, Appendix B, show the value of agricultural production for Jamaica and Trinidad-Tobago, 1958—1967.22 In addition, the tables indicate that total food produc— tion has made very little gains over the last decade. However, regarding the livestock situation, Mayer and CrOpper observed that: Livestock production in the Caribbean is not only a very insignificant part of total agri- cultural production, but over the past ten years, there have been no signs of its posi— tion improving. The foregoing review of the domestic agricultural sector shows that both crOp production and animal produc— tion is low in the West Indies. Furthermore, all indica— tions are that, given the existing level of agricultural technology and structure, aggregate and per capita output Will not be expanded to any significant extent in the near future. The failure of domestic agriculture to ex— pand, plus rising pOpulation growth rates and incomes, has resulted in rising levels of food imports to satisfy 22Mayers, J. M., and Cropper, J., Eh§_§§E£l§_lflQE§— tries of the West Indies: Characteristics and Potential EQEJégflggigg, Department of Agricultural Economics and Farm Management, University of the West Indies, St. Augus_ tine (Cyclostyled), January 1969, p. 2. 2 3Ibid., p. 2. ireme food reqll ocal 1 llustrat1 0 tion 15 1 dun b e V '7 othe area. mt 240 perce o I ased b3 ”r5 t- s s ‘fih ‘n‘ ‘ .0.. “SQ ’ . .50 a 4.31: order t:~:‘ . ~m~ 112 local food requirements. The gap between demand and pro— duction is illustrated by movements in the import of food into the area. Mayers and Cropper found that over the last decade the import of meat and meat—preparations in— creased by 240 percent, milk products by 200 percent, and animal feed by 250 percent. In 1966, for example, the region had to import some 266 million (W.I.) dollars of food in order to meet its food requirements.24 Animal and livestock products alone accounted for some 93 million dollars, or some 35 percent of the total. Animal feed accounted for over 18 million dollars, or 7 percent of the total, while the remaining 155 million dollars (58 percent) was made up of a wide variety of other foods. Table 3.8 shows the composition of the food import bill for livestock and general food imports by territories for 1966. In 1966, it has been estimated that the value of food imports was close to 16 percent of total imports into the region. In addition, the importation of food as a percentage of food consumption exceeded 25 percent in 1966, and the ratio showed an increase of some 10 percent __________.____________ 2 4Computations were made from data presented in Mayers, J. M. and Cropper, J., op. cit. UT? .5 :1..\ magsm 4.2.373 3»: .:.Z . an: .4}. Vigil or _ .c C: .s. a. 3%. .. \.\.: 3; . . r. .: ON: . N .2 NC... CC: .I is. num~ n... s n\ T:~.J..._:.:.Tlll 31: .....:< n \ NNC. h. llll..|I|I|lu llllllllllllllllllll mhbfiu.ml —.fi.va_ u — n3 dw u H H nnu~U3~va.uL.— Hnfl—n...~ Jx $u~.—A»Hnu ~H»~.W~A»u~.—Hun-hfit...-.l~1w«4.\.vlfl.mcmnfi «UOOLH n nqvonnvrwfl n mflymvmuhnu _. ...—CA a~< .— H < H \ "nuns—u».m.—_ H \fihk u -fi~ n. ~zL-v H. -.\.\~)~ - ...~\w ..fi- u Handoun. n MadurnUnJ u ,—.1.~..:A.:< n- I illll la: 4 1 -u- u I - l I I l ll 1.| I |.I l I I l--- I -,I l I] - ll. I-! - u n - l - \AL ~:~:t..t H H n av ~..U~..~:~L- ~,-...:~.~< . \nn-v.-‘-- -;~.u3 \\fi~a~.< no .- \f.~ ..I.. ...~:.~.~ ~u....~..t\ s-~.. ~ya.....~ \.. -\:\:s~ y \yu .\.\.\;\0\. IA-nvA.un 113 .pao .mO ~.h .Hmmmouo tum ..S .o .mswwmz Scum pwpmmo< muUDUOHm HMSHG¢ u QOHDOW .H.3 mm.Hw H .m.D oo.aw .wpmu qofluMSHm>opmHm pm .H.3 oo.mw H .m.D . . oo Hm mums wmcmgoxw uqmsuso pew H.wm w.o m.em o.H s.oa m. . OOH ®H m Hm#OB W0 GOHQHOQOHQ mmm.omm mmw.ama mam.ma ooo.mm owm.m mos.ee oao.am mma.a Hence oav.mm omm.ma Haw.o mao.mm ome.a aem.sa moo.aa aso.H isomav ommnoe and seeded” oso.m omm.m sea mam I: mmm mmm I: inmost undone» “um Nea.s mam.v 0mm omo.m I: mom mmm.s we , isomav mdoau .nm mms.a aao.m mmm owe.a ems «so ooo m Nmomac maafldmcmlmfl>mzlmuuflM .um vmm wa II mam II mm vwa H “momav unnummpcoz omw.moa mmo.so omo.m mvo.om smN.H ooo.sH maa.wa cam dosages ssm.o mam.w osm mms.a m Nmm omm s message mms.m wmo.m mos omo.a m was smm m moaaHeOn Hoa.vm www.ma smH.v omm_aa sH aoa.m ssm.m mm moemnnmm «ma.s omm.e mam mmm.m we «so oom.a Hm demands MmHMHHOQ .H.3 Undmsosfi m m m mpODGOHm mmpmm w mHHOmmuOSUOHmmmsOHUMMmmonmmaoEHsfim poom n mpoom n mowwmnamfifinfl Ham” .mmpflm n mHHMQ H one pew: mbflq H whucdoo Hmpos n Hwfio ”ensued” . . . H .woma .mQHUnH umwB thHOUflHHOB an muOSQOHm HMEHG¢ Ufim woom mo UHOQEHIl.w.m mamme I ure of the d he 1950-66 pe OVEI 1'. .6 1a .I‘ E Wu” Fug ~ . . . e T. . u a a ”a ... .: . . . C nU ..-. C 3 C C ... .C ... S S 8 .... C .2 a C e C .Q C e _ t a .C «C u a no. 11 v . . C “r at I O Y.. “av... Cy «D at s . u u u C. ~ ‘ C v . h... 0 e .-u .... Y. nu on so my; at .W 5-. v. C Y. e h a at C .3 .3 4...“ an t C C C .l. _ e r. a u. C A.» ..-. .1. v. OJ H hw. so» Ab AL my. .... AL AL \H~ D Liu ".5 a nu 4.-. O a: C . I; .... NL .3 .I. a a» .1. ..v Y. «Q. ‘l. in .. ab Q» a e 8 an“ r. nu. . . a“ a» it. A» .04 AL .l. ‘5 .l ..Ih a ~hlu A: ~\v n} .1; «C «x. ‘3. . r. A... n» «my. 3» ~.. .. u A.» u n ... a ..flu S "J at . [.. .nd \C «C . a v . \fiu « t Z nFlv Auk ..l- «\v sad §~M . u I‘ll. Nut. ‘NH N~¥ . \ V \ .u A: ..lu Y1. v . 2n 2» 5: ~ ... a. w ...u y. . a. . .N u a.» 3% O r. . ...v. .74 .n .u ...u . .. nxv v . 3:... «t w n a P.” .... “J . .nt .ru . - . . . . .3 ... a K». V a ...n a t e . 114 over the 1950—66 period. The significant aspect of the import situation, however, is that it shows up the failure of the domestic agricultural sector to meet rising food demand and needs. It has been esti- mated that over 80 percent of the regional food im— ports are "competitive imports." As such, almost all of such imports could be produced locally or replaced by acceptable substitutes if the appropriate agricul— tural structure could be found.25 Our feeling is that a major aspect of this apprOpriate structure is the development of a relevant agricultural research system that could substantially lower the cost of domestic food production to the point that locally produced food items become competitive with current lOWer-COSt imports. In addition, such a system would also increase per capita income and its distri- bution. \—__———_— 25Brown, Headley A., Import Substitution and west Indian AQriculture: Theoretical Issues. Paper presented at Fourth West Indies Agricultural Economics Conference, University of West Indies, Barbados, March 24—29, 1969, Pp. 21—25. See Chapter VI of this thesis for further discussion on food import structure of the region. The precedir‘. u *4 .-.. ( 3 ‘21 ...—l r" -3 ral 0‘;:_ Ci: ‘ no c c . .— Vt: \I-I - L . relaix'e terms annfr uni-inn “A GD b‘Jle--LuL-I.Ul. IUD P “615v- v‘v-a ' r- InAKAH A- - -Hla \a . l 51 ’.l. () l . . .\ “-1“ H‘Hfi ~\-‘.-..;.. he V “I: (n (I) t .1. I 2 $1 I (l) A ‘ ’ “u. :fir‘ ”My. ‘ .e-w... an ‘ - (I) l'. a (I) (I, ll} 115 Summary The preceding analysis suggests that although agricultural output has expanded in absolute terms, in relative terms the sector is declining in its proportional contribution to GDP. The decline in agriculture's propor— tional contribution to GDP is linked to some degree to the expansion of other sectors of the economy. However, in general, agriculture's contribution to output has been declining because the domestic agricultural sector has failed to increase its productivity. Absolute eXpansion has generally come from the export agricultural sector. The agricultural sector, in general, has not been a lead- ing sector in the rate of growth in GDP. In a few islands where agriculture appears to be a leading sector, the im— petus appears to have come from the export sector. The growth stimulus from the export agriculture sector and the non—primary sectors has been instrumental in expanding somewhat per capita effective demand. The demand for food is a major component. However, expansion in the aggregate level of effective demand for food has failed to stimulate increased productivity and output from domestic agricul— ture. Evidence suggests that despite the modest increases I he level Of a L L.‘ i. for q ema no effective d 5 o the COST—5 0* ve E VA: U- I ‘ ‘ ma ..Cnm— . N: .... u- ‘uuu .. F" V- 1 i .e leve ' Q {‘2‘}- _ bub»... b o 5 -. 12:31:83 ‘ .1 M . H‘SQH .. _ m ~\'\'tt Mi . -2 “u R u « 'Q~\ YD 03¢ e K‘ e ‘ I 1 us \a“..' 116 in the level of aggregate effective demand for food, the effective demand for domestic food items remain low, rela- tive to the costs of production of local food items. With high production costs of domestic agriculture, the in— creases in effective demand (in the aggregate) has been channeled into increased imports of lower—cost food items. The production costs of export agriculture is also high, relative to foreign competitors. However, to a great extent the level of effective demand for the export sector has been maintained at a relatively high level by artifi— cial means, such as preferential prices and import re— strictions. The expansion in the contribution of the non— agricultural sectors has been generally impressive in the region. However, the ability of these sectors to absorb labor has been unimpressive. In particular, the labor— absorption capacity of the manufacturing sector has been far below expectations. At the same time, rather than functioning to reduce the level of unemployment, the agri— cultural sector has been cutting back on employment, thus, increasing the pressure on the other sectors. The large— scale reduction in employment in agriculture stems from the retrenchment of labor in the dominant export sector, n F g him has been facec C A..‘W- u... N t\\-» to itcrease -:c0:c In J wade demands. orts he eff 3 u E w n V!“ “‘9 ekTC'r: . 117 which has been faced with rising unit costs of production and wage demands. Retrenchment of labor is related to efforts to increase the competitive position of the tradi— tional exports on the world market. The pressures to be competitive on the world market are related to: (1) de— clining income elasticities of demand for the traditional agricultural exports, (2) potential loss of preferential ‘0 markets and prices if the United Kingdom enters the Euro— pean Economic Community, and (3) some evidence that United Kingdom beet sugar has become competitive with West Indian cane sugar. Given the future uncertainty of the major exports, it seems reasonable to assume that the contribu— tion of the export sector to employment, income, and GDP will decline rapidly unless strategies and priorities are found to exploit the potential of this sector and that of the domestic sector. AGRICULT IX TE ‘ 1’ .e ‘ I is Seed 3‘ '5 a. v0- . eLLOs LS fik .r . fifu A: :‘1‘ Ni“. -v'.‘u. H,‘ .. h 00: o ‘ I L Devel ‘ n are mean ‘Ql .n\ Y; a: 5L CHAPTER IV AGRICULTURAL RESEARCH INFRASTRUCTURE IN THE WEST INDIES, 1930—1968: EMPIRICAL DIMENSIONS Need for Assessment of the Infrastructure The need for assessment of the agricultural re— search efforts in the West Indies is essentially four— fold: Development of relevant long—term agricultural rsearch institutions. priorities and strategies are meaningful only within a framework of a de— fined set of goals or objectives. Assessment of the research structure is one step in the direc— tion of identifying these objectives and any apparent conflicts between objectives. In order to rationalize the regional agricultural research infrastructure. it is necessary to know the weaknesses or strengths of the existing Sys_ tem. Identification of these vital areas will permit long—term planning to discretely modify 118 e m 817715 L. I the structufl could hat mits the sal ..,——-—-—:W ' n u s ‘ ~\~ 6 \ . .. . a... . i to a a v . e 5 2a ..k u .. .. a «\v M.“ \Q ‘Ku Nu. \b “n. e S .C it e ... Wu. «.3 .HM t v a a .. e e .L a .1 6 \NH «\U Mun. h ‘5.“ . nIA n u S C at a... .Q ... «t \u... C» m i 2a x: at 119 the structure in those areas where the changes could have major impact. Furthermore, it per- mits the salvaging of components that would be costly to replace if indiscrete changes are made. Assessment of the research infrastructure is a major aspect of identifying the shortages (or surpluses) in the research input requirements (in terms of the desired output levelL Assess- ment is necessary to arrive at some approxi— mation of costs and returns from incremental changes in the research input. Assessment of the infrastructure could provide some basis for testing the validity of the argu- ment that the region is already well endowed with an adequate relevant research structure. If 80. additional funds and manpower can be used for other purposes. Data C011 The data use “”1? Lu v- . 1 r. «3 I16 lest Indi u -E 4 p 210313 survev CEII fiYnxnn \- an‘ 7“ V—ju..'.ZQ._ n .l qulfifin ” *~V.L.. s.“ dq~ . i. aLIE C “k. ‘t :‘v’NH 'V 120 Data Collection, Scope, and Limitations The data used in assessing the disposition of West Indian agricultural research infrastructure stems from a survey carried out between June of 1968 and May of 1969. The survey involved three phases. The first phase involved personal visits to the various islands covered in the study to inventory the major agricultural research organizations in these islands. The second phase involved the designing and forwarding of mail—out questionnaires to the various research organizations in the inventory. Phase three involved a series of follow— up personal interviews with research personnel responding to the questionnaires as well as the non-reSpondents. On the basis of the research inventory. the uni— verse of the study was established as some 28 agricultural research units. divisions or departments scattered over the ten islands. The research organizations covered a wide spectrum or organizational formats from government ministry, to cooperative—like structures. Data were obtained from all but one of the 28 organizations. The single, non—responding organization does impose some limita— tion on the scope of the study. The first limitation stems .- ~ u ‘ 4&e 1. n Q t esear. Y‘ [I .c t .88 O ome exten I. "-11:31 0 CC C a data oresented bu aajor livestock rese 24 to om the fact that t‘ organization which fr .P\ IL ‘ K I‘. C‘\\‘ ‘- .. l i “tes o A‘l ‘\ “'M “Na 121 from the fact that the non—respondent represents that organization which is generally acknowledged as the major livestock research unit in the region.1 Thus, the data presented in this chapter tends to understate, to some extent, the research picture for the livestock sector. A second shortcoming of the data relates to estimates of research expenditure. In many of the ter— ritories, existing accounting procedures to not separate research funds from administrative funds. Where such situations existed, estimates were made by examining public documents and other records. In addition, estimates of knowledgeable research administrators were utilized. A third shortcoming stems from the fact. that it was practically impossible to exclude completely some element of subjectivity from the responses. In order to get a more "balanced” view of individual re- search organization, two approaches were utilized: (1) to get responding research organizations to use the "team approach” in filling out the questionnaires, and _____________________ l . . . The non—respondent organization was the Live— stock Research Division of the Jamaican Ministry of Agri— culture and Lands. {2) to include a ser ling consistency. E iataby the choice c iowever. we feel ths our choice of time I- V!‘ ‘ l ‘ ‘ ‘ "I‘M “ nZDuDllSEEC COMMB“ :‘Q‘r ., «in. general Cat C v ‘ I ‘ i Lam, :2» ‘2 ‘L 122 (2) to include a series of ”check" questions for control— ling consistency. Some limitation was imposed on the data by the choice of the period covered (1930—1968). However. we feel that there are good justifications for our choice of time period. A review of published and unpublished documents dealing with agricultural research in the region suggested that a significant proportion of "research" efforts prior to the 1930’s were essentially ”experimentations” or varietal trials. True scientific research appears to have evolved in the region around the time of the great depression of the early 1930's.2 Data from the survey will be presented under four general categories: (1) agricultural research organization. (2) the subject matter and orientation of research. (3) the input volume of research. and (4) gen— eral summary and conclusion drawn from the data. 2Fennah. R.G.. ”Applied Science in the British West Indian Agricultural Development, 1933—1958: An Evaluation of Progress." The Empire Journal of Experi— mental Agriculture. Vol. XXXI. No. 193. July 1958. pp. 208—209; and: Caribbean Research Council. Yearbook of Caribbean Research. Port—of—Spain. Trinidad. 1949. Also Martin. S.L., Spence. J.A.. and Wright. R.W.. ”Current Scientific Activities and Problems in Commonwealth Coun— tries of the West Indies.” Background Papers on Science hiCommonwealth Countries. The Royal Society Conference of Commonwealth Scientists. London. 7—ll April. 1967. cc 18/1 and 18/2. Discussion ‘ ization will develol accomodates the var which research is C‘ hedirected to SUCh (h) regional or nat tation. and (d) geC Discussion orientation will e: of the research on ilicts among objec Made of the fun W911 as the econon inlar lines of re “11 be made of f; the aPplication o A set of :i inputs being 11 Criteria Used are The final iran general €01. ( i “Vultural IESl ‘13.“. of . the 1mm 123 Discussion under agricultural research organ— ization will develop a classification scheme that accomodates the various organizational structures under which research is conducted in the area. Attention will be directed to such factors as: (a) research longevity. (b) regional or national orientation. (c) market orien- tation. and (d) geographical concentration of efforts. Discussion under research subject matter and orientation will examine some of the stated objectives of the research organization. as well as apparent con— flicts among objectives. In addition. assessment will be made of the fundamental—adaptive research mix. as well as the economic rationale given for following part— icular lines of research philosophy. Finally. examination will be made of factors considered to be constraints to the application of research findings. A set of criteria is used for assessing the level of inputs being utilized in the regional research efforts. Criteria used are: (l) manpower and. (2) expenditure. The final section will make a brief summary and draw general conclusions regarding the disposition of agricultural research activities in the area. No discus— Sion of the implications for research will be undertaken Subse mu. R an - «gran .L..\-I .. Tz 'ew he Or an If". [EV ; T a: V - ,. ..0.'.COEC.1I‘;C S I I01“; . "r h .4V . “Q Z3210 J ‘5‘ I ._ Ynfin\ ..c O 1 -3a“- 124 at this point. Subsequent chapters will cover this aspect. The Organization of Agricultural Research: Classification. Concentration and Longevity In reviewing the data on organizational aspects of research. it appeared that there would be major chortcomings from any classification scheme based solely on: (1) form of the organizations. or (2) function of the organizations. The final classification used con— centrated on usefulness in understanding the major prob— lems facing agricultural research planners in the region. With this consideration in mind. the final classification scheme was based on both the fprm and the function of re— search organizations. Illustration 4.1 gives the scheme for the final classification used in this study. Illustration 4.2 shows the organizations. location. scope and longevity Of the various organizations. The two—way classification x“— 3We use the term form to designate the institutional framework and financing arrangements while function refers to the emphasis. clientele served. and types of commodity being researched. 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ApaomxmwASOHmmmom pdcoooov Ipswauammoo guanomom mcam Com .m mmma mmma coaMEMb Auaomxmv Aoumom whamdoca udcoooo Moamfimhv lacofiuammoa noncomom pDQOOOU .v moma mmma sauna .Dm “paomxmv ucofipammoo .o ome Soaoowom csosom ocoama oamsosaz .m ooma sama iaaaOamoE 3.89% moamsob ofimsom soamomom msaomoam ososmm .N mmma mama Sagan 33me pcoapammoo Soamomwm oaoom osmsmm .a 7. homa moma Aamcoamwmv Aoauwwfioovaaoacmo scammmwm amsoamom .m omwe H copaCaMB Imwaoca umoz map mo wpamao>acov Edumoum “cwfiaammwm oaoam ammoamwm .a moma moma moomnaom AppomxmvacoaumaUOmmm mucosooam ammdm moomnammvlpasb . .a moms Soamomwm maosoamm mawodooam Hmmsm .N moma 0mma omoacaae Apaomxmv pasb noamomom moooo .a coma aama mobava .pm 33me acaumaoomma. waoosooam ammSm mpaHM .pm .5 moma Nmma aamcoamomv Auaomxmv coauoum msaoooam * moomnhmm mcoo ammsm amapsou moaosa pmoz .o ooma ooma onwacaaa 33mins .Ba roamomom pusoooo ommaoa odd omoasaaa .m mama mama moanfimo auaomxmvamoaofimo mo soawmaOOmm< mHoHDuommssmE Hdmsmvlucwfiahmmoo goummmmm HmmDm .v homa woma moamfimo aoaumwfiomv GOHumam nohmwmmm amUflQOHB lwaamAaEOU CHOU Umhmlflm meQOHna .m scheme shows that t1 structures within W] are conducted in th structures will be The 2: Type 3' thr “he research organi six basic types ems Type l.--Publi. orien TYPE 2.-—Priwa orier Type 3.~-Pri\ve I686 Type 4-“Priv 128 scheme shows that there are at least six organizational structures within which agricultural research efforts are conducted in the West Indies. The six organizational structures will be referred to from here on as: Type 1. i Type 2. Type 3. through Type 6. Illustration 4.1 shows ' the research organization typology from which the following six basic types emerge. Type l.——Pub1ic. largely adaptive. non—commodity . . . 4 oriented research organizations Type 2.——Private. largely adaptive. non—commodity oriented research organizations Type 3.-—Private largely adaptive. commodity oriented research organizations Type 4.-—Private. largely fundamental. commodity . . 4 Oriented research organizations TYPe 5.--Quasi—public. largely adaptive. non-commodity oriented research organizathflS \m 4The categorization of research organizations on the basis of ”adaptive" or ”fundamental” research orien— tation was made on the basis of the organizations' response to the questions dealing with their primary area of research activities, The definitions given in the questionnaires Type 6-"°“aSi- orient The longest to exist among the average number 0f 3 been sponsored witT 25 years. In addi research organizat search organizati: represented some 1 search organizat i< in longevity (fror extreme in Type 1 geographical conc cf ' - Organizations We as follows: uii’estigations | leg . 129 Type 6.——Quasi—public. largely adaptive. commodity {a l. i l oriented research organizations The longest continuous research programs appear to exist among the Type 1 research organizations. The average number of years that research activities have been sponsored within this organizational framework is 25 years. In addition to its longevity. this type of research organization represents the largest body of re— search organizations in the region. In 1968. this group represented some 41 per cent of the total number of re— search organizations covered in the survey. Variations in longevity (from time of establishment) are the most extreme in Type 1 group of all the groups. In terms of geographical concentration. some 27 per cent of this type 0f organizations are located in Jamaica (i.e.. 3 out of \— were as follows: (a) fundamental (basic) research: "Investigations aimed at extension of scientific know— ledge; of increasing out understanding of nature; it is therefore explorations of the unknown or of the insuf—l ficiently known.” (b) applied (adaptive research: ”(i) reSearch aimed at practical application or problems. (11) research which attempts to put to use existing knowledge or even to discover new knowledge which may have immediate Practical application,” On the designation. ”non—commodity oriented.” it is recognized that all agricultural research organizations are inherently commodity oriented. [However. We are using the term here to represent organizations that are not confined to any single commodity. but instead cover a Wide range of agricultural commodities- 11 organizations) . of this organizatic activities appear 1 culture. This cha: of the organizatio mental research ac level. or the divi research activitie research systems, Contact . Following longWith alppears lZl years) , Type *4 Years) , and .1“ 55’ ~ . \erfll pol-Hts O: aspects of this ‘ only group in th mental agricul Qilv 9 his» .~ . .. tHELr acth Qi- "\ ups (COQOa am 3.30% 9 MEG and, .zqtm has bee 130 11 organizations). Another important characteristic of this organizational group is that all research activities appear to be concentrated on domestic agri— culture. This characteristic reflects the fact that all of the organizations within this group represent govern— mental research activities. either at the ministerial level. or the divisional and departmental levels. All research activities within this group relate to national research systems. with minimal regional cooperation or contact. Following the Type 1 research group. research longevity appears to run in the following order: Type 4 (21 years). Type 3 (19 years). Type 6 (10 years). Type 2 (4 years). and Type 5 (2 years). Type 4 is important from several points of view. However. one of the major important aspects of this group is the fact that it represents the Only group in the region primarily concerned with fun— damental agricultural research. The group is made up of only two research organizations (7 per cent of the total) With their activities exclusively confined to two export crops (cocoa and sugar). Both organizations are privately Sponsored and. in the case of cocoa research. the organ— ization has been functioning for some 40 years. Type 3 research group ran} terms of the numbe3 represents- There in this group! rep total number of re survey. The highe tation is found if emphasis relateS ‘ citrus. The data organizations wit on export crops- izations in this ofhest Indian as the limited effoi iron export—orie: Even in this are l’iolicly sponsor :0 he regionaliz QIQQ Pthat is er Hy - K03 \ .s the Pior Within the grouy ~ralllzations e _‘~pn »~.S. one on 131 research group ranks second to the Type 1 group. in terms of the number of research organizations it represents. There are seven research organizations in this group. representing about 26 per cent of the total number of research organizations covered in the survey. The highest degree of regional research orien— tation is found in this group. The regional research emphasis relates to two export commodities——sugar and citrus. The data show that at least six of the seven organizations within this group are engaged in research on export crops. The disposition of the research organ— izations in this group dramatize two important aSpects of West Indian agricultural research. There are: (l) the limited effort to regionalize research comes largely from export—oriented research organizations. However. even in this area the regional efforts are minimal. (2) publicly sponsored agricultural research efforts have yet to be regionalized. The only organization within this group that is engaged in research on a primarily domestic Crop is the Pioneer Hi—Bred Corn Company in Jamaica. Thus. Within the group we find four of the seven private research Organizations engaged in research on sugarcane. one on Citrus. one on coconut. and one on corn. The dearth «mmfiities. relat there might be a d‘ profitability of i a nainst non-EXP returns per acre i indicate that unde iitable to invest returns per acre toroot crops (th mElOIdeterrent t Concerned with pr abmil is linked Rhumnan. undertaking on a Domestic and reg the new imPrOved B: ‘ eu Corn Compan hild'g‘ar rlnldfi Lea \d Islands 6 . 0m Plonee . . rIds red 2 132 The dearth of private research on non—export commodities. relative to export crops. suggests that there might be a definite link between the relative profitability of investments in research on exports. as against non—exports. USDA estimates of gross returns per acre for export and domestic crops clearly indicate that under existing conditions it is more pro— fitable to invest in export crops.5 The differential returns per acre to the traditional exports. compared to root crops (the major domestic staples). could be a major deterrent to private investment that is primarily concerned with profitability of the venture. Profit- ability is linked to the level of demand for the output. It is hardly an accident that the only private research undertaking on a major domestic crop is that on corn. Domestic and regional demand has been running high for the new improved ”seed corn.‘ produced by Pioneer Hi— Bred Corn Company.6 SUSDA (Foreign Regional Analysis Division-ERS). Jamaica. Trinidad and Tobago. the Leeward Islands. The Windward Islands. Barbados and British Guiana: Projected Levels of Demand. Supply: anéilflEQFts Of Agricultural Products to 1975. (1964). p- 95- 6pioneer Hi—Bred Corn Company has developed two local hybrids (X304 and X306). These two varieties aver— aged from 60 to 65 bushels per acre. compared to average Type 6 rese group of agricultui Indies. There are resenting alm°St 1 the research organ search on export C nuts). Jamaica at This group offers concentration of . This type of rese and incorporated their structure. channeled into tl Crops. The strur he infrastructu he export secto there . are no res \ {ities of 12 to . ..uies 133 Type 6 research group represents the third largest group of agricultural research organizations in the West Indies. There are five organizations in this group. rep— resenting almost 19 per cent of the survey group. All of the research organizations are exclusively engaged in re— search on export crops (three on bananas. and two on coco— nuts). Jamaica accounts for three of the five organizations. This group offers an excellent example of the overwhelming concentration of research activities on the export crops. This type of research organization is usually established and incorporated under government statutes. Because of their structure. significant amounts of public funds are channeled into the support of research on non—domestic crops. The structure offers an excellent example of how the infrastructure is organized to supplement and support the export sector. It is important to note. however. that there are no research organizations working on sugarcane yields of 12 to 15 bushels per acre for unimpr0ved West Indies varieties. With two crops per year. this averages about 120—130 bushels per acre, which is above the 80 bu./ acre yields of the U.S. Corn Belt. In March of 1969, the company had requests for over 110 tons of the imprOVed seeds from Central American and Caribbean countries. See: Ehé Daily Gleaner. Kingston. Jamaica. March 6. 1969, p. 5. -i—w’i mum this 9m" ‘ export ml” in te] he postulate thet 1 differences in the Banana and coconut small farming SYSt hand. sugar cane i system.7 The sugar ture. From its e. financial and teC parent company. a there were some i West Indies in ti Of these enterpr. Panama Disease v 194 .. -0 s: as small QCtions. local 9 Governmental as s 134 within this group (although sugar is the most important export crop. in terms of export earnings and employment). We postulate that this peculiarity is related to the differences in the evolution of enterprises in the region. Banana and coconut production are largely products of the small farming system in the West Indies. On the other hand. sugar cane is still oriented around the plantation system.7 The sugar industry has always been a foreign ven— ture. From its early history. a substantial amount of financial and technical assistance came from its British parent company. as well as the British government. Although there were some foreign—owned banana plantations in the West Indies in the early history of that industry. most of these enterprises were shifted to the Pacific when the Panama Disease virtually destroyed the industry in the 1940's: as small producers were unable to take similar actions. local governmental assistance had to be sought, Governmental assistance was required also to mount 7In recent years. a greater proportion of sugar cane is being produced by small farmers than by estates. particularly in the larger islands. In Jamaica. over 50 per cent of annual sugar cane supplied to factories. comes from non—estate production. However. the pro— duction system is still oriented around the estate system, agricultural resea coconut industries due largely to the formation was avai region. The indie from virtually n01 was able to draw ( formation generati of the problem st be seen in the is the banana indust level of regionaj had not been thro Whether a region Lhis instance 1/ c, as G ' overnme m nt 8 l The "Pa Jill a a“ ted effor ...“FS- similar 3““ of "Red 1 lisgvs . . ere l the ...; v 31 n lSEaSeS 0f M ””1 135 agricultural research programs to save the banana and coconut industries. The reliance on local support was due largely to the fact that very little technical in— formation was available on these crops from outside the region. The indigenous research base had to be built from virtually nothing. In contrast. the sugar industry was able to draw on a fairly large pool of technical in— formation generated outside the region.8 The magnitude of the problem stemming from the outbreak of disease can be seen in the level of regional cooperation achieved in the banana industry. The banana research program is the only program in the Type 6 group to reach an appreciable level of regional cooperation. If the regional industry had not been threatened with extinction. one wonders whether a regional research system would have developed in this instance. See: Government of Jamaica. Report of the Sugar Industry Enquiry Commission (1966). Jamaica. p. 217. 8 . The “Panama Disease” outbreak of some 25 years ago stimulated efforts to develop resistant varieties of banana plants. Similar efforts were stimulated by the large—scale attack of ”Red Ring Disease” in the coconut industry in the 1950's, There has never been a large scale outbreak of diseases of these two types in the sugar industry. Type 2 rese search organ,lzatior ization is the only research on a Wide organization is SP‘ industry. It is a scene and reflects on the sugar indus development of don ihich the organiz; amend-crop agric cultural sector a which 20 per cent remaining 5 per C upor'rant from tl the fact that in 136 Type 2 research group consists of a single re— search organization. as does Type 5. The Type 2 organ— ization is the only privately financed agency conducting research on a wide variety of local food crops.9 The organization is sponsored by the export—oriented sugar industry. It is a relative new—comer to the research scene and reflects the increasing pressures being applied on the sugar industries to aid in the diversification and development of domestic agriculture. The territory in which the organization is located (Barbados) is practically a mono—crop agriculture. For example. in 1966 the agri— cultural sector accounted for some 25 per cent of GDP. of which 20 per cent came from sugar cane alone. and the remaining 5 per cent from domestic agriculture. Even more important from the employment point of view. however. is the fact that in 1966 sugar cane accounted for 72 per cent of the labor employed in agriculture. Estimates for 1970 and 1975 are given as 67 per cent and 63 per cent respect— ively. for sugar's contribution to employment in agriculture.1 ‘w—d— 9Pioneer Hi—Bred Corn Company is a privately financed company researching a domestic crop. However. the company's research efforts are exclusively concerned with corn at this point. OPilgrim E.C.. The Role and Structure of Agri— culture in Barbados and the Agricultural Development Program. All indications are out of political c< profitable investmi The single the university—eff Center was establl Welfare schemes of functioning since cand phase of the late the fields ‘ Ht :' ‘ he urs: ohase c A various SOll SUIV has been carried 331 Agriculture he College becal «My of the w U, the EEC“ Livities c 35 :h e Center. 2 ““QISitV ' 5 Fa/ tiger T“ Presented “JON ‘C Confer 137 All indications are that the research organization evolved out of political compromise rather than in a response to profitable investment. The single Type 5 research organization represents the university—affiliated. Regional Research Center. The Center was established under the Colonial Development and Welfare schemes of the 1950's. Although the Center has been functioning since 1955. it is only since 1967 that the se~ F cond phase of the regional research program has been taken into the fields for testing crop responses to soil types. The first phase of the program was mainly concerned with various soil surveys. Some form of agricultural research has been carried out at the former Imperial College of Trop— ical Agriculture in Trinidad since it's founding in 1921. The College became the Faculty of Agriculture of the Uni— versity of the West Indies in 1960. This study only covers the activities of the Regional Field Experiment Program (RFEP) Of the Center. and not of the individual departments of the . . ll . University's Faculty of Agriculture. Our rationale for ‘— Paper presented at the Fourth West Indies Agricultural Economic Conference. March 24—29. Barbados. pp. 2—3. 11 . . . . R.F.E.P. 18 the abbreViation for the Regional Field Experiment Program of the University‘s Regional Research Center. excluding activite: essentially three- izational structur partnents provide activities. As St the on-going rese; {2} The survey in. Trinidad. and the Staffs are includ Vulture. Double- individual depart Faculty of Agricr nests, ReSearch bilities and on \ t“. For a 3.1th of the VB W :1 the WeSt Indi villege of TrOpj \xYCiOStyled) 138 excluding activites other than those of the RFEP. is essentially three—fold. (1) Under the present organ— izational structure. faculty members of individual de— partments provide back—up services for the RFEP research activities. As such. the work of the program reflects the on—going research within the academic departments; (2) The survey included both the Cocoa Research Unit in Trinidad. and the Citrus Research Unit. whose research staffs are included in the staff of the Faculty of Agri- culture. Double—counting is reduced by excluding the individual departments; and (3) The departments of the Faculty of Agriculture are essentially teaching depart— ments. Research is supplementary to teaching responsi— . . . . . 12 bilities and on a part—time baSlS. 2For a discussion of the function and the evo- lution of the various research organizations. see: Regional Research Center. Agricultural Research and Its Organization in the West Indies. University of the West Indies. Imperial College of Tropical Agriculture. Trinidad. January 1962 (Cyclostyled). Ob'ectives 0f ReS< organizat dealing with rese Column (1) shows veloped in this 5 ranking in terms in columns (3) t1” "lstRanking" in given as the fir: ization. The 2n lieu to other 0 13) through (7) win each orga 0bjefiiives It woulc “-101” the rese; 0f . Proouction a :eiilve ( which lion 3] appears 5:34 ‘ ‘ lmuons ._.l“ 139 The Orientation and Subject Matter of Agricultural Research Objectives of Research Organizational responses to a series of questions dealing with research objectives are presented in Table 4.1. Column (1) shows the organizational classification as de— veloped in this study. while column (2) gives the order of ranking in terms of the importance of the objectives given in columns (3) through column (7). Thus. the designation ”lst Ranking" in column (2) means that this objective was given as the first and foremost objective of that organ— ization. The 2nd and 3rd rankings correspond to the rating given to other objectives. The percentages given in columns (3) through (7) represent the proportion of the organizations within each organizational type as they rank the various objectives. It would appear that the major objective of almost all of the research organizations is increased efficiency Of production and lower unit costs. The second major ob— jective (which is confined mainly to research on domestic crops) appears to be decreasing the level of dependence on food imports. The export—oriented research organizations m mumoo ueED ”QUEQULOQE~ k0" LUIDA math . 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A. ject“ (increa Research effort production cost research Will k as Chapter, 141 appear to be less concerned with this aspect although there is a strong tendency for such organizations to list increased output. employment and general devlopment. as a major goal. The significant aspect of the data. however. lies in the fact that. in general. those research organ— izations primarily concerned with research on domestic food crops do not appear overly concerned with the product quality as far as consumer taste is concerned. This could very well be a key variable in the future development of the West Indian agriculture. A significant proportion of the research organ— izations dealing with domestic crops ranked decreased food imports as a major objective. These organizations will have to face up to the question of how to accomplish this objective without being sensitive to consumer tastes and preferences. All indications are that their major ob— jective (increased efficiency) is far from being realized. Research efforts do not appear to have appreciably reduced production costs in the West Indies. The cost aspects of research will be taken up further in succeeding sections of this chapter. Fundamental and M _...._——-—-—-——— w In cons"1d cerned With the r researCh and adaE in the ecommiC I research. The dz is overwhelmingl: the West Indies. According to our izational types search. The fir 93 per cent of t in the survey (1 assess the econ! "we collated the Table 4 between two fat or fundamental QIleantation of as aCainst dome lEstimation av “Tanned as f 142 Fundamental and Adaptive Research In considering research orientation. we are con— cerned with the relative emphasis given to fundamental research and adaptive research. We are also interested in the economic rationale for pursuing either line of research. The data suggest that agricultural research is overwhelmingly oriented towards adaptive research in the West Indies. Illustration 4.1 bears this out. According to our classification. five of the six organ— izational types are engaged in ”largely adaptive" re- search. The five organizational types represent almost 93 per cent of the total number of research organizations in the survey (i.e.. 25 of the 27 organizations). To assess the economic rationale for the research emphasis we collated the questionnaire responses into Table 4.2. Table 4.2. suggests a high positive correlation between two factors and the relative emphasis on adaptive or fundamental research. The factors are: (l) the market orientation of the commodity being research (i.e.. exports as against domestic). and (2) the backlog of technical information available on the commodity. The table is organized as follows: Section I. adaptive research. columns PU>UJ 50F: .- . . £9LIOV-01u h Hat—bt—kupfiutgbtaku .. . —¢u:w=6v::kuutn>0_0k 50.. {0.550ka .. u _eutmI=flU:=k n .. .. .- UUEEUL°QE~MEOeufiNIxMDLD . LO MEX-L. " eon-woosvot " 09:95:" mus-OLA o... .- ” tug-scout!" vonvsuuku u 0>wuacu0r0¢ .505 EULGUnOK “ K0080: mvmvlwuflm30m¢0¢nko umOU £991.. Lou EOLK mu wketvn n O E u Q5 u . L0 9 u) >-_0)—..uQ—NRH0QOU WEQ -. UUDL 30 ..kO LUV-x0 Ee- SULfl0n0¢ 0>~UQWV< NpO Ln..— .. 0~§EO~UBK .- IiI JHH IIIII- I IIHHIIIIHIl1I~l1sEVo§n I..- I IIIIII at» «M» «N» -~ ail-1...: \IV .15: - I. ICILEU ..ULIOI$~. ..EILLIU Let i. din: at! L C ~IEO-HII viii-50 .DOOP .aI-1:~ BIO! .flCa-N-r 143 $358330: 5 882.5 835.85 mo 8.5 .338qu 32.3... ...85 9:3. 8 22853 m m 5.5.8 .... 9.3.5. um. .89.... 2853285 mo 8.? . 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H .. . n u 3 opfiuzaafipuucweavca... mo . n H mu: 5.... u u u A 90.. u 96 at. on n . . . G . H . . . KEEN-.... Fugue“... o... . 883$.” . 352......38885U H . H 8833.. 8328.5 . 2.583. . Faucgucafiuegflom eon 858.8”. N H ” F3888...” mm...8 . v8 $89585. . 853.525.853.35“ $28.38. N aucmfoaeicofimNEmEo 2.33% «82:9. .3 8.8mm”. . cowfium mumwxmummcogomflo «moo 8:: .8“. “so... 3133. . ...F0 wax.— u so o u n 5238...". 2.8" n . . F s... .e a. .3 .82 .38.: 32.. 58.2 5.353....an 5.52.2... 5.38.. 22.5 L8 233.52. .3 2.52.3. .Né 9.9: 3t0 6; and secti: to 10. column 2 : tance. The highe; mating on adapti. ception that dire research findings cost of fur-(lament I is the apparent ‘ with respect to 1 PnrexampleI the from fundamental and Type 5 resea izations account inthe survey (1 icant aspect of the three groups Organizations e) research (13 of 55Y that the ow aShe‘dltural re ai53>t1ve resear fund amental res 144 3 to 6; and Section II, fundamental research, columns 7 to 10. Column 2 ranks the rationale in order of impor- tance. The highest ranking justifications for concen— trating on adaptive research appears to be (1) the per— ception that direct benefits are low from fundamental research findings. The third major factor is the high cost of fundamental research. The important thing, however, is the apparent variation among the organizational types with respect to the ranking of their economic rationale. For example, the major rationale of low perceived benefits from fundamental research comes from the Type 1, Type 2- and Type 5 research organizations. Together. these organ— izations account for some 48 per cent of the organizations in the survey (13 of the 27 organizations). The signif- icant aspect of this ranking, however, is the fact that the three groups represent 93 per cent of all of the organizations exclusively engaged in domestic agricultural research (13 of 14 organizations). Thus, it is safe to say that the overwhelming justification among non—export agricultural research organizations for concentrating on adaptive research. is that they perceive benefits from fundamental research as being negligible. The situa organizations 1a: commodities' The on adaptive resea importation 0f re Pioneer Corn Com} venture into domt n- the groups th rationale. The seco mo organizatior in fundamental I for concentratir terms of equal \ exists between {Column 7), and iyplicable to s iiiicantI that i74.00rtant only 335 more Specii ’\ VIC-17“ ‘~ lzations. fro anental re: firms 0f th- 145 The situation is quite different for those organizations largely oriented towards the export commodities. Their major rationale for concentrating on adaptive research is the fact that they rely on importation of relevant fundamental research findings. Pioneer Corn Company. the only successful private venture into domestic-oriented research, is included in the groups that gave this factor as their major rationale. The second section of the table refers to the two organizations that reported being engaged largely in fundamental research. Their major rationale given for concentrating on fundamental problems is given in terms of equal Weighting between: ”complementarity exists between fundamental and adaptive research” (column 7), and ”limited scope for relevant findings- aPplicable to specific crops" (column 9). It is sig— nificant, that cost considerations are considered important only by the domestic research organizations- and more specifically by the governmental research Organizations. The survey Suggests that the limited fundamental research on export crops, (i.e.I limited in terms of the proportion of organization5)r is a seekin‘l of fundame elsewhere -13 What emer‘. be a paradox. Gi‘ to utilize importt at face value-SH izations should b oriented organize Export research 6 imported findings While domestic re area of fundamen' Given th izational types- em‘mei (1) he 15% benefits frc ‘9‘, how they per 13 h For w< “menial resear- 146 seeking of fundamental information not obtainable elsewhere.l3 What emerges from the data so far. appears to be a paradox. Given the ability of export research to utilize imported basic findings, the data——if taken at face value—-suggest that the efforts of these organ— izations should be far less than those of domestic— oriented organizations. However, the opposite is true. Export research efforts have attempted to supplement imported findings with indigenous fundamental research, while domestic research efforts have done little in the area of fundamental research. Given the stated objectives of the various organ— izational types, and their economic rationale, we can now examine: (1) how the various research groups perceive the benefits from their particular lines of research and (2) how they perceive the constraints to their programs. l3For working definitions of adaptive and fun— damental research, see page 128—129 of this chapter. W RetrosEct and Pr To begin and inter-organi: estimated contril research. Furth- to vary between Within the Type Of the organizat 0f research to t than fundamentaj since the group or‘JaI‘I'lZations c {We have “it W is unexpec M CC or of the san contribution tc been high food assertion is b urin ‘ .«ce index f0 14 w , The .....cusly with 147 Benefit Perception: Retrospect and PrOSpect To begin with. there are significant intra— and inter—organizational differences regarding the estimated contributions of the adaptive and fundamental research. Furthermore. the assessed contribution appears to vary between ex post assessment and ex ante assessment.l4 Within the Type 1 and 2 research groups. some 45 per cent of the organizations assert ex post that the major benefit of research to their clientele came from adaptive. rather than fundamental research. This response was predictable since the group constitutes the majority of research organizations concerned with domestic agriculture. and these have not engaged appreciably in fundamental research. What is unexpected however. is the assertion by some 45 per cent of the same group of organizations that the major contribution to the viability of the domestic sector has been high food prices. rather than applied research. This assertion is borne out by the movements in the consumer price index for food in Jamaica. between 1963 and 1967. 14The terms ex post and ex ante. are used syno— nymously with "retrospect” and ”prospect.” respectively. Between the 1963- consumer Price i! moved from 129 U for “all items" 141. thus, over annual per cent food (in the urh that of "all 0t} rural areas. th‘ for food was fr‘ index for "all annual per cent 3.6 per cent CO The que v'ny increases 3 about significe culture The 1 r ‘ ~€gard was cow 148 Between the 1963—64 period and the 1966—67 period. the consumer price index for food (within the urban areas) moved from 129 to 140. For the same period. the index for "all items" in the urban areas moved from 131 to 141. Thus. over the period. there was an average annual per cent change in the consumer price index for food (in the urban area) of some 2.7 per cent; while that of "all other items” was some 2.4 per cent. In rural areas. the movement in the consumer price index for food was from 129 to 142 over the same period. The index for ”all items” was from 125 to 138. The average annual per cent change in the index for food was some 3.6 per cent compared to 3.3 for all other items.15 The question can be raised at this point as to Why increases in domestic food prices have not brought about significant supply response from domestic agri— culture. The poor performance of the sector in this regard was covered in Chapter III. Information supplied 15The 1963—67 period is used because it is that period for which data are more readily available. The base for the index is December 1955:100. The weights used for the urban and rural areas are 51.1 and 58.0. respectively. for food (i.e.. the per cent expenditure of the average household devoted to food). See: Central Planning Unit. Government of Jamaica. Economic Survey Of Jamiaca. 1967. pp. 106—107. \“ in the questionna research has not none of the 27 re felt that researc production over of the research :nproved low-cos ..Ie exceotior. 0' Give“ t‘ [FIST-‘1 \ ..-.e supplv me ~ .. .-.ces Ias bee“ an. “ e I 31"81 « ‘ ‘kal Drod‘d/ ““3 Scar 149 in the questionnaire indicated that agricultural research has not helped reduce the cost of production; none of the 27 research organizations in the survey felt that research had reduced their unit cost of production over the years as much as 25 per cent. Most of the research findings in the region have been in the area of improved agronomic practices and pest control.1 In almost all cases. the contribution of biologically improved low—cost inputs were rated extremely low (with the exception of the Pioneer Corn Company in Jamaica). Given the existing cost structure. we argue that positive supply response of domestic food crops to rising prices has been negligible because rising prices have not come from increases in domestic demand for food. but from high production costs. Furthermore. although the marginal physical products of labor for export cash crops is pro- bably scarcely different from domestic food crop production M l6Personal discussions with research personnel for the banana industry. suggest that the industry's costs of production have actually been increasing by adapting some Of the findings from their research activities. In addi~ tion. upward pressures on production costs have come from increased wage demands. High land values have not been a major factor in the West Indies. among peasant far. of labor for such since output pric levels by prefere are engaged in ft minimal amount of culture relative I C) I ' domestic fee “4"”. ...; 1 used because moh‘gh imports. .00?“ ;. through r: 150 among peasant farms. the marginal value product (MVP) of labor for such cash crOps would be relatively higher since output prices are maintained at artificially high levels by preferential treatment. Peasant farmers who are engaged in food production would tend to utilize the minimal amount of productive resources for domestic agri— culture relative to export cash crops given the MVP's of the two types of enterprises. This general characteristic of costs offers further support to our argument in Chapter III17 regarding the relatively low level of effective demand for domestic food items. High—cost local food items are not used because lower-cost substitutes are available through imports. Thus. any increased effective demand for food. through rising per capital incomes is reflected not in expansion of domestic food production. but in increased food imports and expansion in export cash crop production. 7See Chapter III under section on domestic agri— culture and Chapter VI for discussion of effective demand and costs of production. Costs aspects for domestic pro— duction are illustrated by the fact that imported Irish potatoes are cheaper than locally produced sweet potatoes (its substitute) in Trinidad and Tobago. See Cropper. J., The Prospects for Commercial Production of Irish and Sweet EQEEEQSEr (D.T.A. Project Report Series No. 2). Department of Agricultural Economics and Farm Management. University Of West Indies. 1967. From an m 1 tion is quite different 1 assessing the future sou: agricultural sector. soml indicated that the stimu efficiency of production varieties. as well as ex per cent of the organiza would require expansion research. Type 3. 4. and e um Point of viev Prises they serve came 1 three groups of organiz; in role that fundamentz search Programs, This that °f Type 1. 151 From an ex ante perSpective. however. the situa— tion is quite different for the Type 1 organizations. In assessing the future source of contribution to the domestic agricultural sector. some 45 per cent of the organizations indicated that the stimulus would have to come from increased efficiency of production—~through improved crop and animal varieties. as well as expansion in market demand. Only 36 per cent of the organizations indicated that development would require expansion in the present level of adaptive research. Type 3. 4. and 6 research groups asserted that. from an ex post point of view. the major contribution to the enter— prises they serve came from adaptive research. However. the three groups of organization gave substantial recognition to the role that fundamental research has played in their re— search programs. This assessment is quite difficult from that of Type 1. 2. and 5. which indicated that fundamental research made little or no contribution to their research Program. It must be borne in mind. that the first three groups of organizations represents 14 research organizations. Of which 13 are oriented towards export crOps. The sole non— eXport oriented research organization in the group is Pio— neer Corn Company in Jamaica. The perceived benefit from utilization of fundament rationale given by the 9 tiveresearch.18 These dicated that a major con their industries has con it appears that in the i tions the contribution C about through various pr Commonwealth countires. ments is to provide a f that are unable to comp of higher costs of prod sWad contribution of dustries served by thee from that of the domest ssessing the likely s< hution three research ( tivir . ‘ i. ywlll have to C0 801 - e1) adaptive line 0 d I whole. the Type 6 or mi zant than any 0th er 18 QvssiOn 0 See earlier or - e ‘ ganlzations ratione 152 utilization of fundamental findings is in line with the rationale given by the group for concentrating on adap— tive research.18 These two groups of organizations in- dicated that a major contribution to the viability of their industries has come from high prices. However. it appears that in the first three groups of organiza- tions the contribution of the pricing variable has come about through various preferential agreements within the Commonwealth countires. The net effect of such agree— ments is to provide a form of subsidy to those industries that are unable to compete on the world market because of higher costs of production. In this sense. the as— sessed contribution of prices to the various export in— dustries served by these organizations is quite different from that of the domestic agricultural enterprises. In assessing the likely source of future research contri— bution three research groups indicate increased produc— tivity will have to come from a combination of the solely adaptive line of research. Within the groups as a whole. the Type 6 organization appear to be more cog— nizant than any other group that future productivity l8See earlier sections of this chapter for dis— cussion of the rationale of this group of research organizations. will demand greater att of the product. This i consumer tastes and pre of demand. The two org Type 4 group asserted 1 their industries came : and fundamental resear- ever- in looking to th the viability of the i combination of adaptiv Constr ' of aints on Impleme Research Results A series of qi variables that are thr the implementation of Presents the response differences among org ce ' Ptrons of these co r Within the T\ .h L 4 is total number _ OI ( in -.Yolm . d “1 domestic 153 will demand greater attention to quality and standard of the product. This indicates some sensitivity to consumer tastes and preferences. an important component of demand. The two organizations that comprise the Type 4 group asserted that the major contribution to their industries came from some combination of adaptive and fundamental research. as well as from prices. How— ever. in locking to the future. their assessment is that the viability of the industries depends on some optimum combination of adaptive and fundamental research. Constraints on Implementation of Research Results A series of questions was designed to assess those variables that are thought to be the major constraints to the implementation of research findings. Table 4.3 presents the responses. There appear to be significant differences among organizational types as to their per— ceptions of these constraints. Within the Type 1 research group (41 per cent of the total number of organizations and 11 of 14 organizations involved in domestic research). the major constraint to ccsxcee av. ILIII _ Tr. . 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N0 OQXH . mGfiUHOQQDm . . . u . . u u n @EHBIHHUE . mUMflUCOHUW n ICQWHO n sCOflUMUGQflNO \AUHVUOEOU 00 0 SCH—quifimommfiollv .U. ,3ng smvfiUGH “$03 an .fiflvnhanUlN ”@3004ng MN wmmfi 169 .mmaoopomo> can Amudsoooo can .wosdwwa Cacao .maoohmo .depHO .moooo .mmouo uoon mo mu0HHo> woes so sonmmmwm o .AwNHMEV :Moo wane so soummwwm .mocmson .Hmmsmv macho o>Hw so noncommmm Q com mn.ov mo ma mQOHpMNacomuo coucoauo wuflpofifioolcoz opuomeIcoz v H muofluoNHcmmHo powsofluo om w m Q%#HUOEEOO puomxmvsoz . mo ma msoH#MNflqmmMo powcoflno NHH >5 me am mmpflcosfioo #Homxm Honfiszl . . . u u H u COHuMNHcmmHO “ imemac H imwmfiv H imomfiv monarch” imwmac ” mmwmmwwa N no mass . Housomnom n mamaoas£ooa.rflom pcon>fldwmn wmmoamfim “ :mmHo. u - mCflu:HomeD.m H . . - wgfl—HIHHDW H WHWHHUHHQHUW - , CoHHO >HHUOEEOU on .m@ cH umog .COHumu . . MmmWHooowwHosomsmz mo GOHunomeQIIv u mumma HH- similar to those enga‘ of domestic cr0p5 (13 former type Of organi ratio of scientists t organizations. SpGCi engaged in research 0 while in the latter c on a wide variety of aSpect is the relatir and directly product. oriented research on activities from othe than the non~commodi "erSionS are made to former We of organ scientists of some 1 is a reduction of a] f or the latter type E xo , enditUre Com O ne Data On 39): desk . t incomplete Of SlIUQtuIe ii). mOSt 170 similar to those engaged in research on a wide variety of domestic crops (13 to 14, respectively). However, the former type of organizations possess a much more favorable ratio of scientists to crops than the latter type of organizations. Specifically, we find some 69 scientists engaged in research on five export crops in the first case; while in the latter case, some 63 scientists are working on a wide variety of domestic crops. Another significant aspect is the relationship between commodity orientation and directly productive research efforts. The commodity— oriented research organizations have separated research activities from other activities to a much greater degree than the non—commodity—oriented organizations. When con- versions are made to full—time equivalent scientists, the former type of organizations show a reduction in available scientists of some 10 per cent. On the other hand, there is a reduction of almost 26 per cent in available scientists for the latter type of research organizations. Egpenditure Component of Research Data on agricultural research expenditures are the most incomplete of those on agricultural research infra— structure. In most cases, it was simply not possible to separate research eXPe In other instances, in search organizations . figures is incomplete ever. in the absence c to use the available 1 shortcoming. The dati period. nine of the e spending approximatel capital outlay for re able for the remainir Appendix C). On the Toned that in 1967—E 1.5 million West Ind: “within the single Ty for 1967~68 was repo amount probably was Operatims, and (2) expenditure was unde eStablished. Rec ur r l l 1 i separate research expenditures from general expenditures. In other instances, information was available from the re— search organizations. The resulting set of expenditure figures is incomplete and of questionable reliability. How— ever, in the absence of more reliable data we were forced to use the available figures, recognizing this major shortcoming. The data indicate that in the 1967—68 period, nine of the eleven Type 1 organizations were spending approximately $995,000 (West Indian) in annual capital outlay for research.30 Figures Were not avail— able for the remaining two organizations (See Table 12, Appendix C). On the other hand, 10 of the 11 units re— ported that in 1967—68 recurrent expenditure was approximately 1.5 million West Indian dollars (See Table 13, Appendix C). Within the single Type 2 organization, the capital outlay for 1967-68 was reported as $2,000. This relatively small amount probably was due to : (1) the small scale of the operations, and (2) the fact that the bulk of the capital expenditure was undertaken in 1965 when the unit was first established. Recurrent expenditures were given as $30,000 3OAll expenditure figures are given in terms of West Indian dollars. At current rate of exchange $1.00 U.S. = $2.00 W.I. At predevaluation rate, $1.00 U.S. = $1.85 W.I. for the same time per i expenditure goes to sa There were sin for Type 3 organizatic were not available for egory. The remaining $198,000 (W.I.) for ca ational expenditures \ for all seven units i: Appendix C) . Althoug" difficult. operationa private organizations 10 Public organiza tic 0f the two or lture on capital equf 08 for both units con $313,800 (W.I.) for ‘ for L - the single Type Thi 1e recurrent expe 1% - 7 68~ Within the Est: L mated reCUrrent 172 for the same time period. Almost 70 per cent of recurrent expenditure goes to salaries and wages. There were similar gaps in expenditure information for Type 3 organization. Expenditures on capital outlay were not available for two of the seven units in this cat- egory. The remaining five units were spending about $198,000 (W.I.) for capital equipment in 1967—68. Oper— ational expenditures were about 1.1 million dollars (W.I.) I for all seven units in that year (See Tables 14 and 15, Appendix C). Although the gaps in the data make comparison difficult, operational expenditure of the five reporting private organizations compare favorably with that of the 10 public organizations in the Type 1 category. Of the two organizations in Type 4 category, expend— iture on capital equipment was about $11,840 (W.I.) in 1967- 68 for both units combined. Recurrent expenditure was about $315,800 (W.I.) for the same period. Capital expenditure for the single Type 5 organization was about $70,000 (W.I.), while recurrent expenditure was about $200,000 (W.I.) for 1967—68. Within the Type 6 organization, four of the five organizations reported a total capital outlay of $57,274 (W.I.) estimated recurrent expenditure at approximately 1.0 million dollars (W.I.) for th ll. Appendix C) . Expenditure d The table shows that: survey were spending (W.I.) on capital eqt 1968: and (2) twenty. dollars (W.I.) as re TABLE 4.5-~Capital a: l \ \ Type of Organization Oriented Organ: iZations “Unix-port :modityo Orien Led ganizatio losn H \011‘ mhxport’ Non- modity iOri 029mm Sented ‘OTAL FOR ALL TYDL‘ N IX“ . when rate. $100 Ethane ; . : $1 173 dollars (W.I.) for the same period (See Tables 16 and 17, Appendix C). Expenditure data are summarized in Table 4.5. The table shows that: (1) 22 of the organizations in the survey were spending approximately 1.3 million dollars (W.I.) on capital equipment in the research efforts in 1968; and (2) twenty—six were spending some 4.2 million dollars (W.I.) as recurrent expenditure. TABLE 4.5—-Capita1 and Recurrent Expenditure on Research: West Indies, 1968 . o o a 0.00 Type of Responding Capital Recurrent Organization I Units I Expenditure I Expenditure I I I 1968 . l . On . On Re— . ( ) . < 968) ICapital Icurrent I I Number ‘ west Indian Dollarsa——— Export Commodity Oriented Organ— izations 10 13 207,209 2,396,013 Non—Export, Commodity Oriented Organizations 1 1 60,000 80,000 Non—Export, Non— Commodity Oriented Organizations 11 12 1,067,055 1,786,079 TOTAL FOR ALL TYPE 22 26 1,334,264 4,262,092 a At current exchange rate, $1.00 U.S. = $2.00 W.I. At predevaluation rate, $1.00 U.S. = $1.85 W.I. Ten of the 22 working on export are per cent of the tow]- 0n the other hand: 13 (50 per cent) were we for some 56 per cent on research in 1967—6 research expenditure capital and recurren' million dollars (W.I million dollars (W.I to cover the single at an estimate of so Assuming a figure of estimaited value of t duction for the reg This est' t . ll hire are indicatio penztudy Livestoc n 192mg pproximat ~ The no cent“ inidad, C Ten of the 22 organizations (45 per cent) were working on export crops, and accounted for almost 16 per cent of the total capital expenditure in 1967—68. On the other hand, 13 of the 26 reporting organizations (50 per cent) were working on export crops, and accounted for some 56 per cent of the total recurrent expenditure on research in 1967—68. For the units reporting total research expenditure in 1967—68, the combined total of capital and recurrent expenditure was approximately 5.5 million dollars (W.I.). If we assume an additional l.O million dollars (W.I.) (capital and recurrent expenditure) to cover the single non—respondent in the study, we arrive at an estimate of some 6.5 million West Indian dollars.31 Assuming a figure of some 400 million dollars (W.I.) as the estimated value of total agricultural and livestock pro— duction for the region in 1967-68, we arrive at a figure 31 . . . . This estimate might be conservative, because there are indications that the single non—respondent in the study (Livestock Research Department. Jamaica) was Spending approximately 0.5 million dollars on research in 1967—68. The nonmrespondents within the sample are Caroni, Trinidad, Coconut Research (Jamaica) and the Central Sugar Cane Breeding Station, Barbados. It would see reasonable that these organizations would account for the remaining 0.5 million dollars. of 1.6 per cent rate search as a PrOPortic output.32 In terms of € the West Indies appei position; however, t? the shortage of faci Trends in capital ex facilities are extre oriented research ei Trinidad and Tobago) amuch firmer base ‘ research facilities structures of the 9 have more balance. are Superior to non data show that the so *9“ aPeroximatel} 175 of 1.6 per cent rate of investment in agricultural re— search as a proportion of the value of agricultural output.32 In terms of expenditure on agricultural research, the West Indies appears to be in a relatively favorable position; however, the total expenditure does not reflect the shortage of facilities in the domestic research area. Trends in capital expenditure indicate that research facilities are extremely limited in the public, domestic- oriented research efforts of the smaller islands. Jamaica, Trinidad and Tobago, and to a lesser degree, Barbados have a much firmer base than the other islands with reSpect to research facilities. On the other hand, the capital structures of the private and quasi—public organizations have more balance. Export—oriented research facilities are superior to non~export research facilities. First, the data show that the export—oriented organizations in 1968 spent approximately one—fifth as much on capital as the 32The assumption of 400 million dollars (W.I.) is based on extrapolation from estimates of the value of agri— cultural output in 1961 and l965. In 1961 the estimated value was 332 million dollars (W.I.) while in 1965 it Was estimated to be approximately 368 million dollars (W.I.), See.Table 3.1 and 3.2, Chapter III. public research orgal that the relative sc: tionally related to: (2) technological ob changes in research indicate that export the greater prOporti 5 to 10 years earlie in this area in l96E the need for furthe: organizations are g< thus their research uP“‘L<>~date than the high capital invest conscious efforts t Second, it is only mental policies ha\ iood CIOps‘ Table 0 ’V .lated 01) redUClng l’ L‘ EIELIVely high ca Of T . toolingiupn f0 176 public research organization. However, it would appear that the relative scale of capital investment is func— tionally related to: (l) the level of past investment, (2) technological obsolescence of facilities, and (3) changes in research emphasis. Specifically, the data indicate that export—oriented activities had undertaken the greater proportion of their capital investment some ‘1 J 5 to 10 years earlier. The relatively small expenditure H in this area in 1968 could reflect a general reduction in the need for further facilities. In addition, these organizations are generally of a more recent origin, and thus their research facilities would tend to be more up—to—date than the public facilities. The relatively high capital investment in the public sector could indicate conSCious efforts to update their research facilities. Second, it is only in relatively recent times that govern— mental policies have shifted from export crops to domestic food crops. Table 4.1 pointed out the high priority placed on reducing food imports by the public sector. The relatively high capital investment could be a reflection of "tooling—up" for the new policy implementation. ‘9 Classificati basis of “form and f organizational struc number of organizati Type l.--Pu‘r Ori Type 2.--Pr: 0r: Type 3.—-Pr 0r Type 4.-—Pr Or Type 5.~—Qu Co Type 6.~—Q\_' 01 Tyne l is , Th e fom of reSear, on . adaptive resear (7 per CGut) in th Sea rch. FurthErmO i c ocoa and Sugar c “o t note that 50 p e the SUIVe V are ‘ em 177 Summary and Conclusions Classification of research organizations on the basis of "form and function” revealed six different organizational structures in the area. These, with the number of organizations in each, are: Type 1.——Public, Largely Adaptive, Non—Commodity Oriented Organizations (11) Type 2.——Private, Largely Adaptive, Non-Commodity Oriented Organizations (1) Type 3.——Private, Largely Adaptive, Non—Commodity Oriented Organizations (7) Type 4.-—Private, Largely Fundamental Commodity Oriented Organizations (2) Type 5,-eQuasi—Public, Largely Adaptive, Non— Commodity Oriented Organizations (1) Type 6.——Quasi—Public, Largely Adaptive, Commodity Oriented Organizations (5) Type 1 is oldest followed by Type 4, 3, 6, 2, and 5. The form of research activity is overwhelmingly concentrated on adaptive research. Specifically, only two organizations (7 per cent) in the sample are engaged in fundamental re- search. Furthermore, such work relates to two export crops (cocoa and sugar cane). It is even more significant, however, to note that 50 per cent of the research organizations in the survey are engaged in research on a single export crop 4 i (sugar, banana: Citr 50 [Br cent of the r with research On a w legumes, livestock: ofresearch organiza related to the level and Trinidad and T01 share of research i1 There is an past research empha significantly betwe domestic-oriented c organizations have Search because a re fundamental work w, transferable to th. only when trans fer biems Unique to th fact . Lhat fundamer C due and COCOa is uUStries to Come 1 In ,, lqwe t0 the are 0t. 'iEr hand, dome S 178 (sugar, banana, citrus, coconut and cocoa). The remaining 50 per cent of the research organizations are concerned with research on a wide variety of root crops, grain— 1egumes, livestock, vegetable, and cereals. Concentration of research organizations appear to be functionally related to the level of economic development. Jamaica and Trinidad and Tobago account for a disproportionate share of research institutions. There is an underlying economic rationale for past research emphasis; however, the rationale varies significantly between export—oriented organizations and domestic—oriented organizations. The export—oriented organizations have traditionally emphasized adaptive re— search because a relatively higher proportion of relevant fundamental work was done elsewhere, and was directly transferable to the area. Fundamental work was undertaken only when transfer of findings was limited, or when pro— blems unique to the area confronted specific crops. The fact that fundamental work is largely confined to sugar cane and cocoa is symbolic of the need felt by these in~ dustries to come to grips with certain problems that are unique to the area and could not be solved outside. On the other hand, domestic agricultural research efforts benefited ) i far less from fundam‘ there has been a lim genetic material to ‘ research program. T emphasis on adaptive program is largely 1: istrators that the l to be extremely smaj that the general la< organizations is ra it has not benefits the reason that it because it has not to draw from inter: been done on expOr. Sta“tial for West Wesr India succeedEd in re duc oCdptatiOn 0f recc cost 5 0f Productic ) 7. , .IlQLlStrles. This LZatisms Resear‘ Nay 179 far less from fundamental work done elsewhere. Apparently, there has been a limited stock of biologically superior genetic material to draw from within the local food crop research program. Thus, in reality, the overwhelming emphasis on adaptive research within the domestic research program is largely based on the feeling of many admin— istrators that the benefits of fundamental research tends to be extremely small. There is a paradox here. We find that the general lack of fundamental research among domestic organizations is rationalized on the basis of the fact that it has not benefited domestic research. On the other hand, the reason that it has not benefited domestic research is because it has not generally been done, and there is little to draw from international sources. Where such work had been done on export crops the technical ”Spin off” was sub- stantial for West Indian Export agriculture. West Indian agricultural research efforts have not succeeded in reducing unit costs of production. In fact, adaptation of recommended findings tends to increase unit costs of production, for both the domestic and export industries. This holds for all types of research organ— izations. Research findings are costly to implement be- cause most of the findings recommended are with respect to W of Pro i_mpu_ts- The number crop and livestock V are negligible‘ EXE some improvement in has been largely due and product market < limited coordinatio adapted largely bec plemented. A major search finding at t the necessary resor domestic research c in the application practices have not Culture in the lag that an important lack of appropriat serious doubts Whe “tion to exPansior All indications a1 high ' relatihe t0 i'n , If 180 to technigues of production rather than new improved inputs. The number of biologically improved (low cost) crop and livestock varieties coming from research efforts are negligible. Export research efforts have achieved some improvement in output via new techniques, but this has been largely due to a relatively high degree of factor and product market coordination. Domestic agriculture has limited coordination, and recommended techniques are not adapted largely because they cannot be economically im— plemented. A major constraint to implementation of re— search finding at the farm level is inability to acquire the necessary resources for those farmers served by the domestic research organizations. Export agriculture leads in the application of improved cultural practices. Cultural practices have not changed significantly in domestic agri— culture in the last 50 years. There are some indications that an important variable in the production process is the lack of appropriate credit facilities. However, there are serious doubts whether the injection of credit is the sol— ution to expansion of production within domestic agriculture. All indications are that costs of production are simply too high, relative to effective demand for domestic food items. Until costs are reduced, credit expansion in itself will provide little incen it is doubtful that an fin answer to th hdrth costs of f matthe size of the line would be substz mbhc revenues we r approach. Given the hi m um area, plus t aTil—Culture, and th and export agricult mlhmal research p sum of the Problem m \ eeos to aCQUire al lmprMd inputs m“ ' L ode ll) the adapti‘ Su rest and most re ce ‘ ssible, 10W~cosL L. ef forts so that a medtal resear Ch fi with)“ 181 provide little incentive for expanding output. In addition, it is doubtful that price subsidies at the product level are the answer to the problem of low domestic food production. With unit costs of production as high as they are, it seems that the size of the subsidy to bring costs and prices in line would be substantial. Given the opportunity cost of public revenues we question the justification of this approach. Given the heavy concentration on adaptive research in the area, plus the disproportionate efforts on export agriculture, and the problems now being faced by domestic and export agriculture, we suggest that a relevant agri— cultural research program can be instrumental in alleviating some of the problems. Both domestic and export agriculture needs to acquire appreciable doses of low cost, biologically improved inputs. A reallocation of research efforts must be made in the adaptive—fundamental research mix. One of the surest and most rewarding methods of insuring readily ac— cessible, low—cost, improved inputs is to gear the research efforts so that a meaningful balance of adaptive and funda— mental research findings are generated. We estimate that the region was investing in agri— cultural research at a rate of 1.6 per cent of the value of agricultural OllllPut istic to suggeSt tha much on agricultural composition of the e proportion of the e) research with relati the domestic agricu: could actually be a value of agricultur be much more favora‘ 0i 1.6 per cent of OUtPHt. The potent balanced combinatic absolute level of i impbrtant variable allocated to give ( level of PrOfit, 0 research mix, and search leaves seri current resource a We feel t} search struCture c duction of bot) 182 agricultural output in 1968. It seems extremely unreal— istic to suggest that the West Indies is spending too much on agricultural research. In the first place, the composition of the expenditure is important. A substantial proportion of the expenditure is in export agricultural research with relatively little technical ”spin off” to the domestic agriculture sector. Secondly, 1.6 per cent ” 1 could actually be a relatively small amount if the absolute value of agricultural output is small. The situation would be much more favorable if the area were to spend at a rate of 1.6 per cent of the potential value of its agricultural output. The potential can only be realized by finding a balanced combination of research. Finally, even a high absolute level of investment could be misleading. The important variable is the extent to which the resources are allocated to give either a low—cost combination, a high level of profit, or both. The characteristics of manpower, research mix, and organizational structure of regional re— search leaves serious questions as to the efficiency of current resource allocation. We feel that strategic changes in the existing re— Search structure can bring about reductions in costs of production of both domestic and export agriculture. In addition, relevant increase per capita the profitability 0 components can be low level of domest the high importatio are vital aSpects o 183 addition, relevant research strategies can function to increase per capita income and its distribution by raising the profitability of investment in food production. These components can be powerful forces in raising the currently low level of domestic effective demand for food and reducing the high importation of lower costs foods. These forces are vital aspects of the agricultural development process. This secti (l) to provide a l (2) to set the sta cerning potential . associated with in‘ need to establish ance of the West I position of the re is twafold. In tr istics of the regi viewed in Chapter the input structui and composition 0: should be conceiw CHAPTER V THE PERFORMANCE OF WEST INDIAN AGRICULTURAL RESEARCH SYSTEMS: EMPIRICAL DIMENSIONS OF FIRST GENERATION PROBLEMS General Background to First Generation Problems This section seeks to accomplish two things: (1) to provide a link between Chapters III and IV and (2) to set the stage for discussion in Chapter VI con— cerning potential second and third generation problems associated with increased agricultural productivity. The need to establish a link between the historical perform— ance of the West Indian agricultural sector and the dis— position of the regional agricultural research structure is twofold. In the first place; many of the character— istics of the regional research infrastructure (as re— viewed in Chapter IV) represent only rough indicators of the input structure of the research system. The magnitude and composition of research manpower and expenditure should be conceived as representing merely partial inputs 184 in the production search (as reflecte system and the agri side of the produc input side of the would not provide output dimensions dynamic links betw and the realizatio This chapter will as well as the out insights into the past performance, future performance In additic input; and the per: System and the SE! stage for subsequu third generation generation proble M 1We defin Problems associat 0f the agricultur inPuts used in t} 185 in the production process. However, the output of re— search (as reflected in the performance of the research system and the agricultural sector), represents the other side of the production process. Consideration of the input side of the process hiisolation of the output side, would not provide useful insights into research. Secondly, output dimensions of agricultural research provide the dynamic links between the current state of development and the realization of future developmental potentials. This chapter will explore the characteristics of output, as well as the output mix, as a means of gaining further insights into the relationship of these components to past performance, as well as into the SCOpe of improved future performance. In addition to providing a link between research input and the performances of the agricultural research system and the sector as a whole, this chapter sets the stage for subsequent discussion of potential second and third generation problems evolving from solution of first generation problems.1 It is important to consider 1We define ”first generation problems" as those problems associated with increasing the physical output of the agricultural sector by improving the biological inputs used in the production process. In other words, Chapters V and VI a separate discussion are only encountere have been solved. relationship among strategy implicati VI. Analysis 0 at essentially thr examine the impact (a) factor prices, (bi farm incomes a and regional level of its impact on: (bi increased nati life; We explore t Indies from obseru systems in buildiu domestic agr icult' M the Problem has t technology" is em tiOIu" problems at Effective demand Problems deal wit 186 Chapters V and VI as an integrated whole, rather than as separate discussions. Second and third generation problems are only encountered after the first generation problems have been solved. Because of the high degree of inter— relationship among the three types of problems, research strategy implications will not be discussed until Chapter VI. ,‘ Analysis of the research system is carried out at essentially three levels: (1) At the farm level we examine the impact of agricultural research in terms of: (a) factor prices, supply and input combinations, and (b) farm incomes and farm output. (2) At the national and regional levels we examine research output in terms of its impact on: (a) aggregate agricultural output and (b) increased national income. (3) At the international leygl we explore the lessons to be learned by the West Indies from observing cross—country agricultural research systems in building indigenous research systems for its domestic agriculture. We explore also the relationship the problem has to do with the process by which "new technology” is embodied in the inputs. "Second genera— tion” problems are problems dealing with the level of effective demand for food, while "third generation" problems deal with income distribution problems. of agricultural res export agricultural sector to the domes development. Our focal cultural productiv' our earlier propos' development of the to lie in the area factors of product expansion as well expansion in aggret of the directly co quite possible tha generated by focus tivity, rather the factors, such as l M 2We recogu productive factor: complementary fact factors are to be the long run the ; the level of such the level of inve the technology em tOI'S. In other w from incr Productive" inpu 187 of agricultural research systems to the viability of the export agricultural sector, and the relationship of this sector to the domestic sector and to general economic development. Our focal point for analysis is ”increased agri— cultural productivity." This approach is in line with our earlier proposition in Chapter IV that the future develOpment of the West Indian agricultural sector appears y to lie in the area of increasing the quality of indigenous factors of production. This is important for both output expansion as well as cost reduction, since it allows an expansion in aggregate output with a smaller complement of the directly conventional productive factors.2 It is quite possible that some degree of ”uneasiness" might be generated by focusing the analysis on increased produc— tivity, rather than on the conventional institutional factors, such as land tenure, public administration, 2We recognize that improvement in the quality of productive factors necessitates expansion in the level of complementary factors if the full potential of the direct factors are to be realized. However, we argue that in the long run the additional costs incurred by increasing the level of such factors will be offset by expansion in the level of investment opportunities made possible by the technology embodied in the directly productive fac— tors. In other words, complementary inputs are “derived demand” from increased profitability of the ”directly productive” inputs. cooperatives, or cr can only argue that not because we cons growth and developn essential for devel Hopper when he sugc_ . in my vie fend it in this rural social si agriculture. f growth, but th. in themselves ( tained Expansi Springs are we that the Signi tion to a mode Enral PEOple, built around t i new knowledge £ . L0: lts Elpplic In our ana tural research to two i . duderymng as: FOOd Self is not CO 188 cooperatives, or credit arrangements. To this point we can only argue that our analysis focuses on productivity not because we consider it the only variable in stimulating growth and develOpment, but because we think it is one essential for development. Thus, we are in agreement with HOpper when he suggests that: . . . in my view, and I will not attempt to de— fend it in this forum, these features of the rural social structure are passive features in agriculture. They constrain or facilitate growth, but they are not its source and cannot in themselves generate the impulse to a sus— tained expansion in output unless the main— springs are wound and driving . . . . I agree that the significant investment for a transi— tion to a modern agriculture must be made in rural people, but such an investment must be built around the production and extension of new knowledge backed by the requisite supplies for its application.3 In our analysis of the relationship of agricul— tural research to productivity and development, we make two underlying assumptions explicit: 1. Food self sufficiency as a desirable policy goal is not considered as mere physical replacement of food imports with domestic output. Rather, we 3HOpper, W. David, The Mainsprinqs of Agricultural Growth. Paper delivered as the Dr. Rajendra Prasad Memor— ial Lecture to the 18th Annual Conference of the Indian Society of Agricultural Statistics, January 28—30, 1965, p. 22. conceive it domestic fc food import conceptual: rule out tl Within the ciency all tion of £0 The progra to increas carried 01 Work. Th: POtential ical mini technolog ical Orie tece Thi COT Su 1y elabOrat up lAgriCult A1 L L 86(1er The te ' I t ‘nati 1 189 conceive it as a level of food prices which equates domestic food production, plus non—concessional food imports, with effective demand.4 Thus, our conceptualization of self sufficiency does not rule out the importation of cheaper food items. Within the effective demand context, self suffi— ciency allows for cost differentials and importa— tion of food items. 2. The programming of agricultural research designed to increased agricultural productivity will be carried out within an integrated regional frame— work. This approach appears to offer the greatest potential for the long—run achievement of a ”crit— ical minimum effort” in generating agricultural technology. Furthermore, the economic and polit— ical orientation of the region is heavily in favor of the regional approach to develOpment.5 4This concept of food self sufficiency has been recently elaborated upon in: Johnson, Glenn L., "Food Supply, Agricultural and Economic Development.” Proceed— ings of the Second Western Hemisphere Nutrition Conference, American Medical Asso., San Juan, Puerto Rico, Aug. 26-29, 1968. 5 The term regional programming is defined here as multi—national economic programming designed to assist th or more nations in solving common problems. For a Observatior domestic agriclfltm the level of convex expense of increasr gains to be realizi conventional input The Jamaican domes in point. Since 1 development plans review of the prop in agriculture unc The table capital eXpenditu: relative to agric fertiliZer acquis 56 Percent of tot u -and~re1ated 8 Che 190 Observation of the poor performance of West Indian domestic agriculture and public emphasis given to raising the level of conventional inputs (particularly land) at the expense of increased productivity leads us to question the gains to be realized from merely eXpanding the level of conventional inputs without considering their productivity. The Jamaican domestic agricultural program presents a case in point. Since 1947 there have been three major long term . development plans for the domestic agricultural sector. A review of the proposed annual average capital expenditure in agriculture under the three plans is given in Table 5.1. The table illustrates the tendency to allocate more capital expenditure to land, subsidies and loan schemes, relative to agricultural research, crOp development, and fertilizer acquisition. For the first Ten Year Plan, some 56 percent of total annual capital expenditure went into land—related schemes, loans, and subsidies. Only 1 percent discussion of regional agricultural research programming in the African context, see: Eicher, Carl K., Regional Programming for Rural Development in Tropical Africa: Implication for AID. Paper prepared for Conference on, "African Development from a Regional Perspective," Warren— ton, Virginia, November l4—l6, 1969. The case for a regional approach to agricultural research planning is dealt with in Chapter VIII. more 5.1.—-Breakd°‘.m ( diture 1n , ment Plans ——_-—_"_ Item . Subsidies and Loan (Land Settlements (Land Reform (Land Authorities N a.) . Irrigation 4) Research m Crop Development Fertilizers ox Extension, Schola Farmers Training Total Six Items All Items Source: Adapted frox Agricultura Third West the Univers P- 3. Appen was allocated to and fertilizer ac C 0" e)tpenditure we training_ In W among the variou 53;. LC just hOV m 191 TABLE 5.l.——Breakdown of Proposed Major Annual Average Capital Expen- diture in Agriculture for Three Major Long Term Develop— ment Plans, Jamaica, 1947—1968. Item 1947 Ten 1957 Ten 1963 Five Year Plan Year Plan Year Plan ————————— Percent of Total--——————-— 1. Subsidies and Loans 26.8 31.9 40.2 (Land Settlements 29.5 24.5 5.0 2. (Land Reform —— —— 34.9 (Land Authorities —— 9.8 2.3 3. Irrigation 17.9 9.8 8.6 4. Research 1.1 2.0 0.4 5. Crop Development and Fertilizers —— 9.8 —— 6. Extension, Scholarships and Farmers Training Centers 11.2 —— 0.3 Total Six Items 86.5 87.8 91.7 All Items 100.0 100.0 100.0 Source: Adapted from: McFarlane, R., Singham, N., and Johnson, I. Agricultural Planning in Jamaica. Paper prepared for the Third West Indies Agricultural Economics Conference held at the University of the West Indies, Jamaica, April 1-6, 1968, p. 3, Appendix. was allocated to agricultural research, crop development, and fertilizer acquisition. Surprisingly, some 11 percent of expenditure was allocated to extension and farmer training. In view of the relative levels of expenditure among the various items, some serious doubts are raised as to just how much "new information" and inputs were generated from the Over the 1957—69 pe subsidies, 66%; re: fertilizer and exti over 82 percent of sidies, loans, and expenditures are r annum. There were and fertilizer ac; accounted for only Assessed a ance of the domesr 6 Years. The rela‘ i ~L . nphLSI relathe Critic t0 aSsert aPPears to be One 192 generated from the research process over this period. Over the 1957-69 period, the distribution was land and subsidies, 66%; research, 2%; crop development, 10%; and fertilizer and extension, 0, respectively. For 1963—68, over 82 percent of capital expenditure went into sub— sidies, loans, and land—related activities. Research expenditures are reduced to one—tenth of one percent per annum. There were no allocations for crop development and fertilizer acquisitions. Extension—related activities accounted for only three—tenths of 1 percent. Assessed against this allocation, is the perform- ance of the domestic agricultural sector over the last 15 years.6 The relative emphasis on expanding conventional inputs, relative to increased efficiency, has led one critic to assert that the long-term development philosophy appears to be one: . . with productive efficiency to be encour— aged in growing export crops but work-spreading 6See Chapter III for discussion of the relative rate of growth of the domestic agricultural sector in relation to the export sector for the West Indies in general. The rate of growth of the Jamaican agricultural sector is given in Tables 3.2 and 3.4. to be the watcl home market. This Jamai agreement with Dav agricultural growt ically possible to expanded input, st the level and dist rural sector. Hov sources cannot be WP“. particula eXpanded with lan Suggests that thi CWiural Planning SEctions of this Pontion Of tech: ing for dOmestic the information implication for _ Peck, ‘ltl ll Uni me’ Q . 0f ty 8 193 to be the watch—word in production for the home market. This Jamaican example leads us to reaffirm our agreement with David Hopper as to the mainspring of agricultural growth and development. While it is phys— ically possible to expand aggregate output solely through expanded input, such expansion does not generally increase the level and distribution of per capita income in the ! rural sector. However, expansion of marginal land re— sources cannot be expected to significantly increase total output, particularly when complementary resources are not expanded with land resources. The Jamaican situation suggests that this has been the general framework of agri— cultural planning over the last two decades. Subsequent sections of this chapter will explore the level and dis— position of technical information that has been forthcom— ing for domestic research efforts. The scope for changing the information will be examined, as well as its long—term . . _ , 8 implication for economic development. 7 , . . . . Peck, H. Austin, "Economic Planning in Jamaica: A Critique,“ Social and Economic Studies, Vol. 7, No. 4, University of the West Indies, Jamaica, December 1958. 8Christensen, Raymond P. and Yee, Harold T., "The Role of Agricultural Productivity in Economic Develop— ment,” Journal of Farm Economics, Vol. 46, No. 5, Decem- ber 1964, p. 1052. At current that increased inp duction costs. Tl expansion in the r In addition, input Would not release sector for expans sider such a rele 0pmental process increased Opportu Tedmicay AS Get In W We look as _ t0 the “mains In earl‘lEr Chapt Indian ecOhomv a reSe arch_ From ceristycs w hich Eur a1 produucti\. 194 At current levels of technology we do not expect that increased inputs will appreciably reduce unit pro— duction costs. Therefore, we do not see any appreciable expansion in the consumption of locally produced food. In addition, input expansion without increased quality would not release product resources from the agricultural sector for expansion of the non—primary sectors. We con— sider such a release to be a vital aspect of the devel— opmental process whereby agriculture can contribute to increased opportunities in the non—agricultural sector. Empirical Dimensions of Agricultural Productivity Gains: The International Experience Technical Aspects of the International Experience We look to the international scene for guidance as to the ”mainsprings” of agricultural productivity gains. In earlier chapters we reviewed the structure of the West Indian economy and the structure of regional agricultural research. From these reviews we ascertained three charac— teriStics which set the stage for assessment of agricul— tural productivity gains: (1) the region has a high degree of openness, (2) t absolute terms in ' economy (particula Despite the absolu tion of the manufa sectors remain low search has used a research outside i reSpect to export Can one a about some adjust Prices and demand faCturing sector Supply price and fortunatelv this The Ego. estime appreciable eXpa: gems fertilize 195 of openness, (2) there has been significant expansion in absolute terms in the non—agricultural sector of the economy (particularly in Jamaica and Trinidad and Tobago). DeSpite the absolute expansion in the size and contribu— tion of the manufacturing sector the "linkages” between sectors remain low, and (3) West Indian agricultural re- search has used a significant proportion of findings from research outside the region. This is even more true with reSpect to eXport agricultural research organizations. Can one assume that these characteristics bring about some adjustments in agricultural factor supply prices and demands? For example, expansion of the manu— facturing sector could have had favorable impact on the supply price and demand of nitrogenous fertilizers. Un— fortunately this has not been the case in the West Indies. The F.A.O. estimates for 1948—1967 show that the only appreciable expansion in commercial production of nitro— . . . . 9 genous fertilizer occurred in Trinidad and Tobago. 9F.A.O. figures show that prices paid by farmers for fertilizer at the farm gate (adjusted for subsidies) have actually been on the increase for N, P, and K in Jamaica since 1965. In the case of Barbados the price level appears to have been on the increase from 1962—63 up to 1965—66. Slight decreases were noted in 1966—67. See: F.A.O. (UN), Production Yearbook 1968, Vol. 22, p. 631. Phosphate and POta cially in the regi appears to be incr geared to eXPOr'C C Thus, this would 1 creases in fertili export agriculture sector. We feel i tive demand for f are linked to: ( capita income of more to the fact 0f indigenous crc cremental changes “Qt Warrant incre .Iresponse“ aspect 10ng~run gains ti Itsearch_ Howev The SUbject matt t' , ional experienc ll) in J. Ibid' .. those ifidc 196 Phosphate and potash fertilizers are not produced commer— cially in the region. In addition, fertilizer consumption appears to be increasing only in those islands that are geared to export crOps (particularly to sugar cane).10 Thus, this would lead one to suggest that the major in— creases in fertilizer consumption is coming from the export agricultural sector and not from the domestic sector. We feel that the observed low levels of effec— tive demand for fertilizer inputs in domestic agriculture are linked to: (1) the relatively low levels of real per capita income of the rural pOpulation in the region; but more to the fact that, (2) given the generally poor quality of indigenous crop varieties, the marginal product of in— cremental changes in fertilizer use is so low that it does not warrant increased fertilizer inputs. We consider the ”response” aspect of our argument to be crucial for the long—run gains to be realized from relevant indigenous research. However, in making a case for reorientation of the subject matter of research, we draw on the interna— tional experience. \— l . . . 0Ibid., pp. 457—473. Most of the fertilizer used in these islands is imported. Unlike the component of outpU argument for in?Ut native for increas- opment in the West ment from a cross- ductivity and fact In this study, Haj successful attemp agriculture in "n extent to which (2 productivity of t major constraints estimates of part United States am in faCtor product two countries up labor was the CO agricultural pro 1 - yam logical Chan e . lenQeS i 1 197 Unlike the solely conventional input—increasing component of output expansion, we are convinced that the argument for input efficiency presents a realistic alter— native for increasing agriculture's contribution to devel— opment in the West Indies. We draw support for the argu— ment from a cross—country study of relative factor pro— ductivity and factor combination conducted by Hayami.ll In this study, Hayami found that a common thread of the successful attempts to expand the productive capacity of agriculture in ”new” and ”old" countries alike was the extent to which these countries increased the relative productivity of those factors of production that imposed major constraints at the limits. For example, Hayami's estimates of partial factor productivity ratios in the United States and Japan indicated significant variations in factor productivity ratios and combination between the tw0 countries up to the 1930's. In the United States where labor was the constraint at the limits to output expansion, agricultural productivity was first generated by research lHayami, Yujiro, "Resource Endowment and Techno— logical Change in Agriculture: U.S. and Japanese Exper— iences in International Perspective,” American Journal of Agricultural Economics, Vol. 51, No. 5, December, 1969, Pp. 1293—1303. and development “h Power for scarce 1 hand, where land V‘ cultural producti\ _ . _ progress represented bl application 0: rapid growth I of severe con: Hayami prr biochemical agric front in the Unit preach dated from assembled data or genous fertilizer ieties and improx research in Japar fertilization thr 198 and development which succeeded in substituting machine power for scarce labor inputs. In Japan, on the other hand, where land was the constraint at the limit, agri— cultural productivity gains were generated by: . . . progress in bio—chemical technology represented by seed improvements with larger application of fertilizer which permitted rapid growth in agricultural output in Epite of severe constraint on land endowment. Hayami presents evidence to show that large—scale biochemical agricultural technology only came to the fore— front in the United States in the 1930's, while this ap— proach dated from the 1890's in Japan. In addition, he assembled data on the relative yield response to nitro— genous fertilizer for unimproved East Pakistan rice var— ieties and improved varieties developed through biochemical research in Japan. Table 5.2 shows that at low levels of fertilization the yields of the unimproved East Pakistan varieties are as high or higher than the biologically 12Ibid., p. 1294. Biochemical innovations are de— fined as those biological and chemical innovations which affect the physiological aspects of plants and animals. They usually alter the timing sequence of agricultural production significantly. Bio—mechanical innovations are defined as those innovations which do alter to some degree the physiological aspects of plants but the ultimate ob— jective of the alteration is to make the production more ameniable to large—scale expansion of mechanization. rumm 5.2-"Yield ieties : Yiel‘ Varieties : L‘ 3 951 Paid .a Habigan] 478 Bataka 544 KamenOOb 541 Norin 1C 635 Norin 87C 511 Rikuu 232C 580 K a . . Indigenous var 1e b . . Variety selectec lent in Japan fc c _ . Varieties SElect experiment Stat: dinated experimf System" was eSt2 Source: Hayami, lesisat 13% present tucky, im proved Japanes 1‘ r .n per rormance C k. ulgher levels oi of‘ ' ‘ tertilizatior 199 TABLE 5.2.——Yield ReSponse to Nitrogen Input by Rice Var— ieties, East Pakistan, and Japan. I Yield (lb./acre) at Different I Marginal ' Levels of Nitrogen Z Product of Varieties I I Nitrogen Level I I Level II I (II—I) 95 lb./acre Z 150 lb./acre I 55 Paddy Straw Paddy Straw Paddy Straw Habiganja 4785 7948 4372 10478 —7.5 46.0 Bataka 5445 9488 5875 11743 7.8 41.0 Kamenoo 5417 5500 6077 7617 12.0 38.5 Norin IC 6352 7205 7700 8225 24.5 18.5 Norin 87c 5118 6352 6517 7892 25.4 28.0 Rikuu 232C 5802 6902 7425 8553 29.5 30.0 a . . . . . . Indigenous varieties in East Pakistan (unimproved). Variety selected by veteran farmer, which became preva— lent in Japan for 1905—1926. CVarieties selected through hybridization by agricultural experiment stations in Japan after the nationwide coor— dinated experiment system called ”Assigned Experiment System" was established in 1926—27. Source: Hayami, Yujiro, Resource Endowments and Techno— logical Change in Agriculture: U.S. and Japanese Experiences in International PerSpective. Paper presented at AAEA meetings, University of Ken— tucky, August 1969, p. 11. improved Japanese varieties. The appreciable difference in performance of the varieties comes at successively higher levels of fertilization; however, at higher levels Of fertilization, the unimproved East Pakistan varieties do not respond in stead, they merely tion of the margir and straw) bears 1 additional applic; Japanese varietie the marginal prod l paddy, relative t table we can GODS curve for the uni addition, we can relative changes output prices) t< policies aimed at in the absence 0 components of bi Illustra curves. In the fertilizer respc varieties or in} represents the 1 logically impro re presents tact 200 do not respond in terms of increased yield per acre. In— stead, they merely increase the output of straw. Observa— tion of the marginal product of nitrogen (in terms of paddy and straw) bears this out dramatically. On the other hand, additional application of fertilizer to the improved Japanese varieties resulted in significant increase in the marginal product of nitrogen, expressed in terms of -' paddy, relative to straw. From the yield reSponses in the table we can construct a hypothetical fertilizer response curve for the unimproved and improved crop varieties. In addition, we can incorporate pricing variables to reflect relative changes in factor supply price (i.e. relative to output prices) to see what are the implications of public policies aimed at stimulating increased use of fertilizer, in the absence of research to change the physiological components of biological inputs. Illustration 5.1 shows the hypothetical reSponse curves. In the illustration, Uu represents a hypothetical fertilizer response curve for unimproved indigenous crop varieties or imported unadaptive varieties. The curve U represents the response of crop varieties that have bio— logically improved characteristics. The price line PO represents factor supply price for fertilizer inputs while l '1 1 l Ilhntration 5'l'-_Hy Un Yield Per Unit Mea Price 11’“ "high pri< factor p/ l price line P re 1 l -evel, as repreS< most of the West I0)” Illustration 5.l.--Hypothetical Fertilizer Response Curves for Unimproved and Improved Crop Varieties. Yield :er Unlt Price line for "low priced“ factor rea Price line for "high priced" factor . . Fertilizer response curve for improved varieties Fertilizer response curve for unimproved varieties Fertilizer Input Per Unit Area price line P represents a reduction in the input price 1 level, as represented in the slope of the line.13 For most of the West Indies, the fertilizer reSponse curves for most local domestic crops varieties are similar to l3 . . . . . . We Visualize a decline in relative factor prices as coming from any of three sources: (1) In an ”open” economy as the West Indies, increased efficiency of fer— tiliZer production in the industrial countries could lower import prices, (2) Expansion of indigenous manufacturing base for local use or export could result in economies of scale and increasing returns, thus, lowering prices, and (3) Governmental policies to reduce prices by subsidies. that represented i limited crop var i6 order of UR.14 Fl absence of high re culture is related domestic agricultt of production ratl to develop biolog: chapter we will e: servation in term iment stations. Offers a plausibl lems 0f increas the West Indies d fertilier prices General failure C schemes and a Wic‘ appreciable Chant Ontput . 202 that represented in Uu' With few exceptions, there are limited crop varieties which Show a response curve of the order of UR.l4 Furthermore, we argue that the general absence of high response crOp varieties in domestic agri— culture is related to the historical concentration of domestic agricultural research on developing techniques of production rather than applying biochemical research to develop biologically superior inputs. Later in this chapter we will examine some of the evidence for this ob— servation in terms of the research output from the exper— iment stations. HOWever, at this point the illustration offers a plausible explanation of: (l) the generally low levels of increase in fertilizer consumption per farm in the West Indies domestic agricultural sector (even when fertilizer prices are highly subsidized), and (2) the general failure of land settlement schemes, irrigation schemes and a wide variety of programs to bring about appreciable changes in agricultural productivity and output. 14As indicated in Chapter IV, two of the possible Outstanding exceptions to this observation are the two hybrid crosses of corn (X304 and X306) developed in Jamaica by Pioneer Hi—Bred Corn Company (Tropical Sta— tion), Let us as: given in footnote infertilizer inp‘ mundane. ASS mndthe level of hcalseeds, mach now became one of hctor price char hidemand for in; tum to which per cond be expecter hdies the level Puts will be min creased quantiti hmrease total a Sure most of dc sPOnse curve, tl additional unit flanges in yielr i“ fertilizer a ofincome there upital fOr pro 05‘ .Ler a Plausil 203 Let us assume that for any one of the reasons given in footnote 13, there is an appreciable reduction in fertilizer input prices for West Indian domestic agriculture. Assume also that efforts are made to ex— pand the level of complementary inputs (i.e. unimproved local seeds, machinery and water supply). The question now became one of: (l) the extent to which relative factor price changes will stimulate significant expansion in demand for inputs at the farm level, and (2) the ex— tent to which per farm and national agricultural output could be expected to expand. We argue that in the West Indies the level of demand for fertilizer and other in— puts will be minimal, and that the application of in— creased quantities of fertilizer will not significantly increase total agricultural output in the long run. Since most of domestic agriculture faces the Uu time re— Sponse curve, the marginal cost involved in applying an additional unit of fertilizer, relative to the incremental changes in yield, would not warrant significant expansion in fertilizer application. The fact that at low levels of income there is a high degree of competition between capital for production and capital for consumption could offer a plausible explanation why West Indian domestic farmers have not ] sidY scheme—5° Ful large-scale applii actual decline in also. Total Reve Prices. If addit the total Costs 0 to the Point that could realize a 1 constant over the not see any apprE tural output 0f t The role becomes clearer the illustration cultural deve10p research efforts tions that would in Illustration as primarily ger curves over time injection of gre venerate a mar g 204 farmers have not been very responsive to fertilizer sub— sidy schemes. Furthermore, the farmer is aware that large—scale application of fertilizer could result in an actual decline in yield, and hence in his income position also. Total Revenue is the product of output and product prices. If additional application of fertilizer increases the total costs of production, and yields are depressed to the point that Total Revenue decline, then the farmer could realize a loss (assuming product prices remain constant over the period). Under these conditions we do not see any appreciable long—term expansion in agricul— tural output of the domestic agricultural sector. The role of the relevant indigenous research system becomes clearer in terms of the response curves shown in the illustration. In generating long-term domestic agri— cultural develOpment in the West Indies, we suggest that research efforts concentrate first on biochemical innova— tions that would generate a response curve similar to UR in Illustration 5.1. We see indigenous research systems as primarily generating a series of such high-response curves over time. With these new reSponse curves, the injection of greater levels of fertilizer would tend to generate a marginal product that would make incremental input changes H1013e agricultural Pmd1 curves, and releve be spelled out. i the West Indian dt whereby the ferti for strategic cro chemical innovati thresholds will i 0f production . Over time from this initial forts will spearl in both the agrit A5 Productivity demanded by the creased inVestme MW At this in terms of lanc‘ ”tension became tures are news: pttential 0f gr I 205 input changes more profitable. The relationship between agricultural productivity gains, fertilizer response curves, and relevant indigenous research systems can now be spelled out. We visualize biochemical innovation in the West Indian domestic agricultural sector as the means whereby the fertilizer reSponse thresholds can be raised for strategic crops. Furthermore, we argue that bio— chemical innovations that raised fertilizer reSponse thresholds will increase productivity and lower unit cost of production. Over time, the productivity increase generated from this initial concentration of domestic research ef— forts will Spearhead a self—sustaining development drive in both the agricultural sector and the national economy. As productivity increases, additional resources will be demanded by the agricultural sector in response to in— creased investment opportunities in the non—agricultural sector. At this stage We feel that facilitating features in terms of land reform, irrigation, mechanization, and extension became more meaningful. The facilitating fea— tures are necessary for agriculture to capture the full potential of growth. W W The techn ganm represents iame with reSpeC Theeconomic or C We conter halinnovations ofthese changes ghbal experience mturn to investl hgher than most Sdmltz recently fidmthe point 0 expenditures.15 cmmention that efhctive agric( tlively small. r ' ., research “Suit Of adVdIl Reg fl! Agric McEOI ECOnomi (ReviSQd J 206 Economic Aspects of the International Experience The technical aspect of agricultural productivity gains represents only one side of the international exper— ience with reSpect to building relevant research systems. The economic or cost-return aspect is equally important. We contend that the costs of strategic technolog— ical innovations are outweighed by the long—run benefits of these changes. Our contention is largely based on the global experience which suggests that the social rate of return to investment in agricultural research tends to be higher than most alternative investment opportunities. Schultz recently reviewed the cross—country experience from the point of view of returns to agricultural research expenditures.15 He presented empirical support for his contention that the risk involved in mounting relevant and effective agricultural research systems tends to be rela— tively small. He believes that the risk is low because ". . . research possibilities are highly favorable as a result of advances in science.” In other words, the rate 15 Schultz, T. W., The Allocation of Resources to Research, Agricultural Economics Paper No. 68:16, Depart~ ment of Economics, University of Chicago, December 20, 1968 (Revised January 20, 1969). of return is larg Technological adv of generating a s benefit—cost rati Given the relevant researcl tunity costs incr change would be costs. The econ The incentive to alternative inve would be as grea the rEturns to i been eStimated_ W ' - . ere Slgnlflcant . ,———————_————w~ . “fl- 7. 7.. 207 of return is large for agricultural research expenditures. Technological advancements have lowered the supply price of generating a stream of benefit to the extent that the benefit—cost ratio has been increased significantly.16 Given the relatively low risk involved in mounting relevant research systems one could argue that the Oppor— tunity costs incurred by pg; adjusting to technological change would be in excess of the short—run adjustment costs. The economics of the situation is fairly simple. The incentive to change is large, since there are few alternative investment opportunities where the payoff would be as great.17 Schultz cites five examples where the returns to investment in agricultural research have been estimated. In almost all instances, the returns were significantly higher than alternative investments. Table 5.3 shows the various studies cited, and the 6Schultz, T. W., op. cit., p. 41. The supply price is defined as the reciprocal of the rate of return. The example given by Schultz is a situation where the rate of return on investment is 50 percent. The supply price for this rate of return would be 1/50, which would imply that the price of $1.00 per year income stream Would be only $2.00. 17 . . . We are thinking of the ”change process” as being similar to an investment. If costs are incurred in making the change, then there is no reason why the change could not be visualized in these terms. 208 oom COM Oman. wwlme hmlwm oom Hm hma mm wha owm oeimm oow eats H QwaacsuoucH pssoomflo Dgoosom” popsnfiuumflm ea c o>09¢ “new” mcudpom cam Dc mandpom m d cunpom mo mwpcm HcHoom .Qoucomom HouspHSOHsm¢ CH Dsofipmo>cH O upooev.-. 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We feel spect to relativ agncultural res lhhnary observa mmput suggest t nmuts to emerge forts in the la: are X304 and X3l Pflw in Jamaica social rate of agricultural re Hut estimates provide Some it this Venture, maize (X304) p irrigated land 1he ~ a Verage cc ‘30 .8.0 While \ 18 ofc See ‘ hapter IV 210 estimated social rate of return. It should be noted that two of the five studies relate to the less—developed countries. We feel that the international experience with re— spect to relatively low risks and high returns to relevant agricultural research, applies to the West Indies. Pre— liminary observation of the state of the regional research output suggest that hybrid maize is one of the few improved inputs to emerge from West Indian domestic research ef— forts in the last two decades. The hybrid maize varieties are X304 and X306, develOped by Pioneer Hi—bred Corn Com— pany in Jamaica.18 Although there are no estimates of the social rate of return to this venture (or to any other agricultural research venture for that matter), we feel that estimates of production costs and yields of this crOp provide some indication of the returns to investment in this venture. Table 5.4 shows the breakdown of hybrid maize (X304) production costs and returns per acre of irrigated land in commercial operation in Jamaica in 1968. The average cost of production per acres for each crop was at30.8.0 while return per acre for each crop was £52.10.0. 18See in particular pages 132—133 and footnote 6 Of Chapter IV. TABLE 5. 4._-Breakd0W Acre on Jamaica I Cost Category WAGES: Land MACHINERY : Der 0V6 Lal (I! A pprox. Average Co :PPSEOX. Return per : »0 lb. per acre met Profit per Acr \l 1s net Profit per Acl : u. .I-l v n Sterling : $3 Soar sauteed Goverl . 5 Hr ONCE‘ Figures ; Bred Cor 211 TABLE 5.4.-—Breakdown of Mechanized Maize (X304) Production Costs per Acre on Irrigated Lands, Pioneer Hi—Bred Corn Company, Jamaica, 1968. Cost Category I Items of Cost WAGE S : ICost Per Item ITotal Costs ———-Pounds Sterlinga —————— Land Preparation & Planting f 1.13. 6 Cultivation, Moulding, Side Dressing 16. 6 Irrigation 1.17 6 Harvesting 8. 3 Spraying 1. l. 0 Miscellaneous (Drying-—Storage) 8. 3 f 6. 5. 0 MATERIALS: Hybrid Seed 1.17. 6 Fertilizer 7.10. 0 Insecticide 3. 2. 6 Herbicide 1. 9. 0 Fuel & Oil 12. 6 § 14.11. 6 MACHINERY: Depreciation & Repairs 2.18. 6 f 2.18. 6 MISCELLANEOUS: Overheads l 9. 0 Land Use Charge (Interest & Taxes) 5 4. 0 f 6.13. 0 Approx. Average Cost of Production Per Acre per Crop f 30. 8. 0 Approx. Return per Acre per Crop (Average yield 3,500 lb. per acre @30 shillings/100 1b.)b ,C 52.10. 0 Net Profit per Acre per Crop f 22. 2. 0 Net Profit per Acre per Year (2 crops) f 44. 4. 0 a . #1 Sterling = $2.40 U.S. at Guaranteed Government Price Source: Figures supplied by current rate of exchange. in Jamaica. Dr. S. M. Sehgal, Director, Pioneer Hi— Bred Corn Company, Tropical Research Station, Jamaica. Thus the net Pr‘ Apart from the P3 the hybrid maize Thus, the net Pr The profitabilit Janican venture by Schultz might As such, the opp research system: earlier would t We loo SEW) organiz lrdnctions Of IT earlier . The: pri ‘ate sources 19 US At . 212 Thus, the net profit per acre for each crOp was £22. Apart from the profit margin, it should be noted that the hybrid maize easily produced two crOps per year. Thus, the net profit per acre per year was actually £44.19 The profitability of investment in hybrid maize in the Jamaican venture suggests that the global experience cited by Schultz might very well be applicable to the West Indies. As such, the opportunity costs of not initiating relevant research systems as proposed under our prOposition advanced earlier would tend to get higher as time progresses. Fertilizer Response Curves in West Indian Domestic Agriculture: The Empirical Evidence The Nature of Yields in the Region We look to West Indian domestic agricultural re— search organizations for some evidence that the response functions of most domestic crOps are of the type discussed earlier. These organizations appear to be the most appro— priate sources of these data for two reasons: (1) if 19At current rate of exchange £1 sterling = $2.40 fertilizer respor sector, the high the experimental tific techniques able, and (2) th crop varieties ( cator of the out efforts. Before 6 howeVer, it is c in yield and prr Tables 1, 2’ am level of yield (cereals, root 1948 to 1967, ciable increase and Mn) in tl stances, the le 1948‘52 and 19 ranged frOm ab about 1:780 p0 field for the 213 fertilizer reSponses have been significant in the domestic sector, the highest levels of response would tend to be on the experimental plots, where the highest levels of scien— tific techniques and complementary inputs would be avail— able, and (2) the absence (or presence) of high responsive crop varieties (in general) would provide some rough indi— cator of the output of West Indian agricultural research efforts. Before examining the specific technical cases, however, it is desirable to firmly establish the movements in yield and production for the major domestic food crops. Tables 1, 2, and 3 of Appendix D, show movements in the level of yield for the three major staple food groups (cereals, root crops, and pulses) for the West Indies from 1948 to 1967. From the F.A.O. figures we detect no appre— ciable increases in the yields of the major cereals (rice and corn) in the West Indies since 1948. In many in— stances, the level of yields since 1963 is below the 1948—52 and 1952—56 averages. Since 1963—64, corn yields ranged from about 588 pounds to the acre in Jamaica, to about 1,780 pounds to the acre in Barbados. The average yield for the region is probably around 1,500 pounds to the acre.20 In E declined since t: for rice. curre rice-producing C averages about 1 clear that cerea varieties. Furt creases in the 1 duction and acre region. Jamaica appreciable qual recent years Tr velop and expan that yields of 1930's and the the 1960‘s, yie 8:000 pounds tr potatoes have 1 acre in St. Vir Orer the same . 2‘137 POunds i 20 _ a , ilel “(lures in Tab 214 the acre.20 In actual output volume, corn production has declined since the 1950's. The situation is quite similar for rice. Current rice yield per acre for the two major rice—producing countries (Jamaica and Trinidad and Tobago) averages about 1,425 pounds to the acre. Thus, it is quite clear that cereal yields are extremely low for the local varieties. Furthermore, there has been little or no in— creases in the level of yields over the last decade. Pro— duction and acreage of cereals is on the decline in the region. Jamaica is the only territory that produces any appreciable quantity of “Irish" potatoes. HOWever, in recent years Trinidad and Tobago has been trying to de— velop and expand production of this crop. It would appear that yields of this crOp increased somewhat betWeen the 1950's and the early 1960's in Jamaica. However, since the 1960's, yields appear to be fairly constant around 8,000 pounds to the acre. Since 1963, yields of sweet potatoes have ranged from a low of 1,692 pounds to the acre in St. Vincent to a high of 8,900 pounds in Barbados. Over the same period, cassava yields have ranged from 2,137 pounds in Jamaica to 27,000 pounds in Barbados. 20Yield figures are derived from conversion of figures in Table 1, Appendix D. Yields in Fumes creases Over the Appendix D.) Having 6 well as the gene domestic food C1 stations and re: Of yield levels niques and know Data ar type of assessm tain crude ind: agricultural r< high fertilize: nical informat present a seri t‘erritories wh l: \ Ebedrch OUtp" \ Cdl r ' ~13 improve: 215 Yields in pulses remain low and show no appreciable in— creases over the last decade. (See Tables 2 and 3, Appendix D.) Having established the wide variation in yield as well as the generally low levels of yields for most of the domestic food crops we will now turn to the experiment stations and research projects for some general indication ~‘ I of yield levels under varying levels of scientific tech— niques and knowledge. Response Curves for Local Food Crops in Experimental Research Data are extremely limited and variable for this type of assessment. However, we feel that there are cer— tain crude indicators of the degree to which indigenous agricultural research efforts have succeeded in developing high fertilizer response varieties. Availability of tech— nical information poses a major problem. However, we will present a series of information available for the various territories which we feel provides some indication of the research output with respect to the development of biologi— cally improved high—response varieties of local food crops. The Jamaican Sit ______——-———— Table 4, iments and varie Ministry of Agri Fertilizer resp< gen, phosphate, istics appear t( variation in so just, (2) non—r nitrogen and p0 fe-tiliZer appl in resPonse frc (5) the concent breeding for ir Varying Soil t: was Obtained f; regal-(11888 Of made that Sine Nitrogen litw 5“ d . Den} .- ‘ L 101‘ nltIC Lhat this low 216 The Jamaican Situation Table 4, Appendix D, summarizes fertilizer exper— iments and varietal trials carried out by the Jamaican Ministry of Agriculture and Lands between 1940 and 1963. Fertilizer response eXperiments were undertaken for nitro— gen, phosphate, and potassium (N, P, K). Five character- istics appear to stand out in this summary: (1) the wide variation in soil type to which crOp varieties must ad— just, (2) non—response to fertilization (particularly nitrogen and potassium), (3) the low levels of recommended fertilizer application, (4) the extremely wide variations in response from year to year and among soil types, and (5) the concentration on varietal trials rather than on breeding for increased responsiveness to fertilizer for varying soil types. Over the 1940—48 period, no response was obtained from nitrogen application to Irish potatoes, regardless of soil type. The general observation has been made that since most Jamaican soils are deficient in nitrogen, it would appear that under local environmental and agronomic practices Irish potatoes have a low requires ment for nitrogen. Furthermore, it has been suggested that this low nitrogen requirement appears to be more I l l 1 i important than t trient.21 Sligh application over crease response over this perioc‘ increased yields the yield incree did not come fn adaptability bu soils had decre so that a posit fairly consiste Significant, Several be“ conducted of their Prima: reCOmmEnded fe maXimum Yields a£lronomic prac 21 _ Jam. Mlnl 1 1 Ca)’ E: H Jamaica. ‘ Ibh 217 important than the ability of the soil to supply the nu— trient.21 Slight increases were observed in nitrogen application over the 1949—55 period. This period of in— crease response coincides with the observed yield increases over this period in Table 1, Appendix D. However, the increased yields were short lived. Research suggests that the yield increase had to be of a short duration since it did not come from improved biological characteristics or adaptability but from the fact that the main potato—growing soils had decreased sufficiently in fertility by the 1950's so that a positive reSponse to nitrogen could be obtained fairly consistently.22 However, yield response was not significant. Several field scale fertilizer trials on corn have been conducted by government agronomists since 1958. One of their primary objectives has been to determine whether recommended fertilizer programs are adequate for attaining maximum yields. It has been reported that despite good agronomic practices and pest control, relatively low yields 21 . . . Ministry of Agriculture and Lands (Government of Jamaica), Fertilizer Research on Food Crops and Vegetables in Jamaica. (Cyclostyled.) Undated document, p. 2. Ibid., p. 3. have been obtain relative to star Government resee . inadet factor limil Apparently 1 do not have conditions “ able. Fertili limited on othe work has been d done on sweet p shown some res; ever, the resul Pel’imentg inch associated Wit? experiments ha d' .. lSease B1055 Soil tYpes. A the lncidenCe iZer a‘Pplicatj We ha< sponsored Pio' have been obtained from additional fertilizer application relative to standard fertilizer application. Thus, the Government research concluded that: . . . inadequate nutrition is not the main factor limiting corn production in Jamaica. Apparently the varieties available up to 1963 do not have the yield potential under local conditions to make corn production profit— able. Fertilizer reSponse experiments are extremely limited on other local food crops and vegetables. Some work has been done on yams but no formal work has been done on sweet potatoes. A few local yam varieties have shown some reSponsiveness to nitrogen application. How— ever, the results were extremely variable. On a few ex- periments increased levels of potassium application were associated with a decline in yields. In addition, some experiments have linked fertilizer application with the disease "Blossom End Rot” of tomatoes grown in certain soil types. Agronomists have not succeeded in reducing the incidence of this disease at higher levels of fertil— izer application. We had earlier reviewed the work of the privately Sponsored Pioneer Hi—Bred Corn Company (Tropical Research 5‘” 2 31bid., p. 6. Station). Unlik Hus organizatio hochemical tech adaptable to the cial and manpowe hct. The compa hadsuccessfullj X306) that demo; resPonse curve Furthermore, th region than any fie extreme var logical that pl similar new inl amortunately, mend the use 0 funushing the He feasibilit Despite the ge 24 of See 5 page 136, “em or the , 219 Station). Unlike publicly sponsored research efforts, this organization has concentrated on the utilization of biochemical technology to produce local hybrids that are adaptable to the region. In addition, substantial finan— cial and manpower resources were committed to this pro— ject. The company was established in 1964. By 1967 it had successfully develOped two local hybrids (X304 and X306) that demonstrated significantly higher fertilizer response curve relative to the local varieties of corn. Furthermore, they were generally more adaptable to the region than any varieties used up to that time.24 Given the extreme variation in West Indian soil types, it seems logical that public efforts would be initiated to develop similar new inputs for varying ecological conditions. Unfortunately, governmental efforts have tended to recom— mend the use of unadapted varieties to farmers, without furnishing the appropriate technical information as to the feasibility of their use in particular locations. Despite the generally superior performance of the new hybrids, the variation in yields between soil types is 24See Chapter IV, pp. 132—133; also Footnote 9 Of page 136, for discussion of Pioneer Corn Company and yield of the new hybrids. anlyllrvl-fi-’ somewhat large. hybrid X304 on 6 II 'n among the man TABLE 5.5.——Re51 196' N Site Lawrence Pa St. Ann - Cobbla Man< w ' Hal(ewoods ( ' KeYnsham St- Elia u" . Grove Plac‘ Manchest \ Note; NO real 5 igned Some: Depar Indie as It Would appeg soil tl’pes "In: SXhibitS sign .__.—————————————s—W—— 7" ~~ 71ml ._————— _.r‘ 220 somewhat large. For example, the variation in yields for hybrid X304 on experimental plots was found to be greatest among the "maximum" yield plots. (See Table 5.5 below.) TABLE 5.5.——Results of X304 Maize Experiments, Jamaica, 1967. With Fertilizer . Yield of Shelled . . Yield . o ' 8011 Without Maize (15.5% Site Type . . MOisture) No Fertilizer (Lb r ) ' (Lbs./Ac.) s./Ac e Min. Mean Max. —————————————— Lbs -————————— 1. Lawrence Park St. Ann 78 272 363 1117 1851 2. Cobbla Manchester 78 1630 653 1350 2432 3. Harewoods C.A.L.A. 32 1978 1035 2482 3539 4. Keynsham St. Elizabeth 73 2108 2360 3078 3703 5. Grove Place Manchester 73 3121 2850 3763 4501 Note: No real differences or interactions could be as— signed to any treatment at any of the five sites. Source: Department of Soil Science, University of West Indies, Report of the Faculty of Agriculture, 1967—68, p. 12. It would appear that under conditions of widely varying soil types "maximum“ yield levels of the new hybrid (X304) exhibits significant variability. In this experiment the yield of unferti minimum yield 1e of three of the the data, it was It would app L i should gene: even though only as an i It is 3: yield of the 10( tion is plotted i ar9515, the fert fertiliZed area shows the reSpo against the fer sites given in In gene Yields through domestic CrOps types in the i sistent’ and i the beSt 9Com 221 yield of unfertilized plots was higher (or as high) as the minimum yield levels of the fertilized plots in the case of three of the five experimental sites. In interpreting the data, it was suggested that: It would appear from the results that maize should generally receive a fertilizer dressing, even though this may occasionally be provided only as an insurance factor. It is significant, however, that when the mean yield of the local X304 variety produced under fertiliza- tion is plotted against the yield of the unfertilized areas, the fertilized areas generally out—perform the un— fertilized areas in almost all cases. Illustration 5.2 shows the reSponse histogram for the "control” areas as against the fertilized areas for the five experimental sites given in Table 5.5. In general, modest increases have been made in yields through the application of fertilizer on a few domestic crops. However, under the widely varying soil types in the islands, yield reSponse has not been con— sistent, and in many instances experimental work under the best ecological and technical conditions has produced 2 . . . . 5Department of 8011 SCience, UniverSity of the West Indies, Report of the Faculty of Agriculture, 1967—68, p. 11. Seem A.BA~V mzu< ,5.» <=2 > < 313% ..\/.1_ \A..._ DIET-.5 ... Cl;vl ......2 1.51:. _. 2122 .wusufiauwuw< mo zu~sucu ecu we unoawm .mmwvcH Nz.a .mo-~oma mEunman .m.m winch Eonw tv>ehov EmHmODmi:.oup30m umwz msu mo zuwmuu>«:3 .wucmwuw Hwom we as M. .SNLZDLQm guns I A Luwwiuumm oz U umwuoz mmum mum BzmzhmmmB MmNHAHEmmm ho qm>mq 02¢ WMHHm momémmmm n wuwm q wuflm m muwm N wuwm H muwm 1. COOH t oonH ooom 00mm i seem A.mnzv comm meua mes namHs m0<¢m>< oooq .noma .monEmo ca mmuam Lonmwmm macaum . . m . > um Av0mxv mNflmz pawn»: pwmoflw>wo haemooq new EMMOOumHI mucommwm uwNaHauuwh .N.m ceaumu . . . II . DWDHHH yield levels noi farmers, and in more commercial Given the curre with respect to doubts whether about significa The Trinidad ar \ Agricui domestic agric‘ mainly by thre Culture of the Central Experi Agricolture, a Farm, The Den the UniVersltl Tm“: Trini< enterpriSe is 26 Au . See \. 581 . so On 0f h . r the agri C 223 yield levels not significantly greater than peasant farmers, and in many instances less than that of the more commercial farmers using traditional technology. Given the current expenditure emphasis of government with respect to the agricultural sector, we have serious doubts whether existing agricultural policies will bring . . . . . . 26 about Significant expanSion in agricultural output. The Trinidad and Tobago Situation Agricultural research and experimentation on domestic agriculture is carried out in Trinidad and Tobago mainly by three organizations: (1) the Faculty of Agri— culture of the University of the West Indies, (2) the Central Experiment Station (CENTENO) of the Ministry of Agriculture, and (3) the Texaco Food Crop Demonstration Farm. The Demonstration Farm is a joint enterprise between the University, the Government of Trinidad and Tobago, and Texaco, Trinidad, Inc. The primary objective of this enterprise is to develop and commercialize experimental 26See earlier sections of this chapter for a dis— cussion of the long—term capital expenditure allocation for the agricultural sector in Jamaica. findings and re University's Fa mental policy e development of pulses and grai Corn va approached maj< would appear t} varying soil t: difference, how are the X304 51 Althouclh these reE Heom AQHU£\.MQAV Amhflumfloz muofi Mmm UHGHM Xm.mao .Illlllllll||l|ll|||l|| MQNHHHUHOM QUHE ‘000905 650 QMUHCHHB ‘I I|.." I. | Q HQ 11‘ mH ficb .musuasoflnm< mo mpasomm nomflsflunom sens Hoes Noe Ho Ho smHo one: nmmsmmmns ossm comm woos omsm Smog smso mnonoocoo Ho_o meson mmme ease mmmm oamm swao oceanogm no_o meson omom mama oms mam swao oQQEQUHm gouo5mo eamm ommm meow oomm smso ocoEQUHm nosononmoeoo mmem msfim mew mew smao oHHH>moHoom cannon pcflom mesa ommfi ome Name smso oHHH>moHoom onmao onm Hume boom mmww nowm Emoq oumumm Hm>flm oceumsmsm .um Noom oNHN ONOH mama ogmm ocnm mmsnoz cflunom pence whom eesm ohm com nonumz\mmomnmz monone .m meflmHHHm somm eomN moms Hmmm uoHonmzxmoomnmz moson< .m mesmesflm ommm News mme msm eemm omen oceanm . . . . Hoom mama om» we . . H m o m N H EGOQ wwmumm Mm>Hm EOanmum .H.3.D .mnq .VAMS m Gmmz m .CHS. H H . . . H ionom\.mnqv H H A®H0m\.m9qv AmHsumHOE H HGNHHHuHmM H . am mHv muofi Hmm GHmHN u pSOSpHB m ®Q%B HHOm H mpflm H vamflw H H .hom .om . H once one omoncflne Aeomxv wNHmz sue; munoEHnoexmuu.s.m mqmme the level of yi soil types. E) application was wide variation relatively C10: a relatively 81 mp without 13 and mean yield the unfertiliz ferent from t} the mean yielc' ont‘PErform t} The tl conducting re SWeet POtatoe range 0f Yiel \ t- 30Wic ll-lOn is not \ lation tends per-imental r6 1955563 perm vulnerable t< 229 the level of yields recorded for X304 on eight different soil types. Except for the control experiments, fertilizer application was standardized. The table illustrates the wide variation in yields among soil types and even with the relatively close confines of the experimental sites.30 In a relatively small number of cases the yield levels of the crop without fertilizer was higher or equal to the minimum and mean yields of the fertilizer crops. In a few cases the unfertilized crop yields were not significantly dif— ferent from the maximum fertilized crop yields. However, the mean yield of the fertilized areas generally tended to out—perform the unfertilized areas. The three major research organizations have been conducting research on such root crops as Cassava, dasheen, sweet potatoes, yams, tannias, and eddoes. However, the range of yields obtained in experimental work has been 3OWide variation even within the experimental sta— tion is not unusual. Johnson and Hoffnar found that var- iation tends to be higher among small plots used for ex— perimental research at Michigan State University over 1955—63 period, the small size made the yields much more vulnerable to variations in natural conditions. See Hoff— nar, B. R., and Johnson, G. L., Summary and Evaluation of the Cooperative Agronomic—Economic Experimentation at Michigan State University: l955—63, Agricultural Experi- ment Station Research Bulletin ll, 1966, Michigan State University. fife—fif—‘::= ‘ r—T . yr gnaw extremely wide year. For exam sity Field Expe yields to avera yields over the For the 1960-6] the acre with 2 Finally, over ' clined to 5 t 7-4 tons to th has SUcceeded liElds on expe Vary Significg these Stations these variati< holdings when are minimal a than reSEarCh been rePOIted 230 extremely wide from year to year and even with a single year. For example, over the 1959—60 period the Univer- sity Field Experiment Station reported sweet potato yields to averaging 2 tons to the acre. The range of yields over the period was .04 to 3.1 tons to the acre. For the 1960—61 period average yields were 7.3 tons to the acre with a range of 1.0 to 10.4 tons to the acre. Finally. over the 1961—62 period average yields had de— clined to 5 tons to the acre with a range of 2.2 to 7.4 tons to the acre.31 Thus. although research work has succeeded to some extent in raising the levels of yields on experiment stations. the yield levels tend to vary significantly from year to year and within year on these stations. One has to raise the question whether these variations would not be more extreme on peasant holdings where cultural practices and fertilizer use are minimal and plot sizes are not significantly larger than research plots on the experiment station. It has been reported that sweet potato yields in commercial lCropper, John, The Prospects for Commercial Production of Irish and Sweet Potatoes in Trinidad (DTA Project Report, Series No. 2), Department of Agricultural Economics and Farm Management, University of the West Indies, 1967, p. 15. production on t nificantly lowe for experiment; on the Demonst: sons of the ye; from this comm attained was 5 mum yield was interesting pc per acre was 5 acre. The per Percent to a y 5) Against tl that the aver is about 1.1 croo varietie any Single YE dehce that t} of the Deleon: than the Sma we must Qlues tiCes Coming prOduCtion 231 production on the Texaco Demonstration Farm have been sig— nificantly lower than yields and saleable yields per care for experimental and local varieties grown commercially on the Demonstration Farm, for both the wet and dry sea— sons of the year between 1964 and 1965. Total yields from this commercial effort were low. The maximum yield attained was 5.6 tons to the acre for variety 049. Mini— mum yield was l.6 ton to the acre for the H5 variety. The interesting point, however, is that the saleable yield per acre was significantly less than the total yield per acre. The percent of yield loss per acre varied from 23 percent to a high of 86 percent. (See Appendix D, Table 5) Against these yield figures we must consider the fact that the average yield for the small ”primitive“ farmer is about 1.1 ton to the acre. Furthermore, with existing crop varieties the maximum number of crops possible within any single year has been 1.25 crops. We find little evi— dence that the ”large” scale, high—technology enterprise of the Demonstration Farm is any more superior in yields than the small commercially oriented peasant farmer. Thus, we must question the utility of the inputs and actual prac— tices coming from the research efforts in sweet potato production. We find successful atte varieties of CI of domestic agI to different fe ment Station or a good insight agricultural r Given the extr gion and the v 501-15: it is r are responsive Vidufllh Unc high degree 0 Eve“ in areas dithn Of Hit a hioa came» omens . o coHumpm mooppm pcofiflsomxm Hmuucoo coaumum coonmmm #sofifluomxm Hmuucoo m.¢ G CO CD \0 V N O m Ln Ln 0 O (D m H 0 L0 N ON ON Ln m N O n a M m (V) M m M m N m <1‘ fl (‘0 m m ('1 M l\ k0 l\ Ln 1\ [\ 0 KO 0H0<\mcoe .m.z coflpoum Madame #coEHMmmxm Hmuucoo comb HwNHHHunm Hmfificflz Qua: whofihmm snowman now same» goes ooumsaumm .UMGHEHHB .mGOH#mvw soumowmm no ono¢ Mom pHoHM cows UGOSUOHm mQOHU uaofiuoouk MoNHHHuHoh NOON. WDO H.H.MNV MOM QOHU GOflUQUW out-.- .wmlhme omnommom HoNHHfluHomlx.m.m mamme In corn produc plants to util depend on the Apparently the such that nitr only to the ph but to the int trients. Furt tendency of lc Season. The ( Water 0r Comm the crust has The d average yield d'lfferent Wit contr01 eXpe: PhOSphate am although in ( to be of majv Wide Variati 234 In corn production and other food crops the ability of plants to utilize commercial nitrogen has been found to depend on the presence of potassium or phosphorus. Apparently the chemistry of many of the local soils is such that nitrogen uptake is functionally related not only to the physiological characteristics of the plant, but to the interaction effects between the various nu— trients. Furthermore, nutrient uptake is limited by the tendency of local soils to form a crust during the rainy season. The crust formation limits the movement of either water or commercial fertilizer placed on the surface after the crust has been formed.3 The data presented in Table 5.8 shows that the average yield of the three crops was not significantly different with nitrogenous fertilizer than yield of the control experiments. However, additional treatment with phosphate and/or potassium showed some gains in yields, although in general the differences cannot be considered to be of major significance. We feel that the extremely wide variation in soil types and the strong interaction 33 . . . . Ministry of Agriculture (Central Experiment Station), Maize Production in Trinidad and Tobago, 9p. cit., Appendix 1, p. l. effects among ; sion in basic 1 if yields are 1 relevant resea: The Eastern Ca ~—_ Furthe tilizer reSpor exPeriments ir ing the 1966—j that deSpite ( “0t impossibl. adaP'Cable to ance of Such still Outperf SPOnsiVeneSs Table 6' APpe island Of An, Cal Yams, sw. cation Under Conclusions J 235 effects among plant nitrient require significant expan— sion in basic research in soil chemistry and soil physics if yields are to be increased appreciably. In addition, relevant research will be required in plant physiology. The Eastern Caribbean Situation Further evidence of low and highly variable fer— tilizer response among indigenous crops is apparent from experiments in the Windward and Leeward Islands area dur— ing the l966—l967 period. These experiments also show that despite the complicated physical conditions it is not impossible to develop crop varieties that are more adaptable to the local conditions. Although the perform— ance of such crops would vary among locations, they would still outperform the unimproved varieties in terms of re— sponsiveness to commercial fertilizer and other inputs. Table 6, Appendix D, summarizes research conducted in the island of Antigua to determine the responsiveness of lo— cal yams, sweet potatoes and tomatoes to fertilizer appli- cation under the two major local soil types. The major conclusions drawn from the experiments are: (l) the local yam “White Lisbon” showed no response to any treatment of N-P-K, relative variety of swee any treatment ( lucie” showed 1 (4) the local ‘ the “improved" experiment sta Despit adaptable hybr this improved among a wide \ bean. Furthe: dbOVe thOSe O SPOnsiveness COHditions, is the general a it is POSsib] ties in the l IESOUrCeS an 236 N—P—K, relative to no fertilizer treatment, (2) the local variety of sweet potato "Hurricane” showed no response to any treatment of fertilizer, (3) the tomato variety "Mana— lucie" showed no response to any combination of fertilizer, (4) the local sweet potato variety "Hurricane" outyielded the ”improved" selected C.lO4 and T.67 developed at the experiment stations in Trinidad.34 Despite the fact that the yield of the locally adaptable hybrid corn (X304) has varied among soil types, this improved variety responded consistently to N—P—K among a wide variety of soil types in the Eastern Carib— bean. Furthermore, it has tended to give average yields above those of the local corn varieties. The general re— sponsiveness of this crop to a wide variety of physical conditions is demonstrated by Table 5.9. We feel that the general adaptability of this hybrid indicates that it is possible to develop high response food crop varie— ties in the West Indies if the appropriate emphasis and resources are committed to the research efforts. The general conclusion regarding the performance of this 34The experimental results of Table 6, Appendix D, are taken from the Annual Report: August 1966—July 1967, of the Regional Field Experiment Program (Leeward Islands). TABLE 5.9 Mai: Soil (X31 Country Barbados St. Vincent Grenada St- Lucia \ SourCe; Depa 9L Variety and t ized in the 1 variety : \vEll ada' yields 8' feasible he fEel that varietv of f 237 TABLE 5.9 Maize (Yield) Responses to Fertilizers on Some Soils in Barbados and the Windward Islands (X304 Variety) S ' I S ' Country ' 011 011 Responses . Type I No. I N P K NPK Barbados Black Assn. 30 + + + + Grey Brown Assn. 40 + + _ _ Yellow Brown Assn. 50 + + _ + St. Vincent Akers Sandy Loam l5 + - + + ‘ Bellevue Sandy Loam l9 Soufrere Cindery Gravelly Loamy Sand 29 + + — + Grenada Capital Clay Loam 30 + + - + Belmont Clay Loam 4O — + + + St. Lucia Belembouche Gritty Clay Loam 38 + — + + Batille Clay 49 + + + + Raveneau Clay 50 — + + _ Source: Department of Soil Science (Faculty of Agriculture), op. cit., p. 8. variety and the implication for future research is summar— ized in the following statement: Variety X304 as an indicator crop appeared to be well adapted to the region generally. The grain yields suggest that grain corn production is 35 feasible for the area, given suitable varieties. We feel that the same statement could be made for a wide variety of food crops, if local research can come to grips Department of Soil Science (Faculty of Agricul— ture), op. cit., p. 8. with the task development of E A313 Our re search effort: vanced in Our source of inc We have found tended to con little effort improved vari Sou tYPES a1 10ca1 researt the given 11 under eXperi- Confines of ited Wide Va [wields Were \ 36 \7' SE field Vari at 238 with the task that they face with respect to the future development of the area. General Conclusion on Domestic Agriculture Research ReSponse Curves Our review of West Indian domestic agricultural re— search efforts has led us to reaffirm the suggestions ad— vanced in our earlier proposition regarding the future source of increased agricultural productivity. In general, we have found that indigenous research organizations have tended to concentrate on varietal trials with relatively little effort in the direction of developing indigenous improved varieties that are adaptable to a wide variety of soil types and ecological conditions. Over the years, local research systems have developed a few crops that have given higher yield responses to commercial fertilizer under experimental conditions. However, even within the confines of the research stations, the yield levels exhib— ited wide variations.36 In many instances the experimental yields were less than the average yields from peasant 36See footnote 30 of this chapter for note on yield variation among experimental plots. holdings with I argued, however perior average area good ind: tobe extended Imnt. We feel stations are 1 average is lar hmtances larg iment stations sults of the h little eViden< research effo in raiSlng ex better farmer It is the ment X g: the vien ls effic for it a in Outpu treared exist an level of 239 holdings with limited fertilizer application. It could be argued, however, that in many instances the generally su— perior average yields obtained on the experiment stations are a good indication of the sound base of ”new knowledge" to be extended to farmers. We do not agree with this argu- ment. We feel that the average yields on the experiment stations are less meaningful if the dispersion around the average is large and the experimental plots are in many instances larger than those of peasant farmers. The exper— iment stations must place these results well above the re- sults of the more commerically oriented farmers. We find little evidence to indicate that West Indian agricultural research efforts have succeeded to any appreciable degree in raising experimental yields significantly abOVe the better farmers. The implication for extension and develop— ment of such results has been pointed out by Hopper when he wrote: It is the easy conclusion that because treat— ment X gives thirty of fifty percent more than the yield without treatment X, the treatment is efficacious and should be widely adopted for it assures a thirty to fifty percent gain in output. While the difference between the treated plot and the untreated may in fact exist and even be economic, unless the yield level of the treated plot is substantially superior t getting, t tension su We hav that consisten fertilizer tre the better far Plots of the e WEIe higher t] Stances where Peasant farme Such yields p 0f the farmer The 9 to be the nev Jamaica as the average yieh better fame input to be biological ,1 last two de hybrid X304 potent 1811 re \ 37 H( 240 superior to what the better farmer is already getting, the treatment will hardly be an ex— tension success. We have found very few experimental crop varieties that consistently produce superior yields under various fertilizer treatments, relative to the untreated plots of the better farmers. In many instances both the untreated plots of the experiment trials, and that of the farmer, were higher than those of the untreated plots. In in— stances where experiment station yields were superior to peasant farmers the level of control required to obtain such yields places the practice above the economic means of the farmer. The general exception to this situation appears to be the new indigenous hybrid corn X304 developed in Jamaica as mentioned above. This variety generally gives average yields under treatment superior to those of the better farmers with untreated plots. We consider this input to be possibly the only major "new“ high potential biological input to enter domestic agriculture in the last two decades. Thus, at the present time the local hybrid X304 appears to be the only crop variety with the potential response similar to UR in Illustration 5.1. 7Hopper, David, op. cit., p. ll. Unfortunately, the agricultur Increased prod regional agric ability to ger to X304 and XI “New Re ion: The W Discr tions Will b< not mean to : tant to the .c COLfee' and smaller iSla t hese two cc 3 ——j 241 Unfortunately, no single crOp can be expected to underpin the agricultural productivity drive in the West Indies. Increased productivity and expansion of the output of the regional agricultural sector will be determined by the ability to generate a large number of new inputs similar to X304 and X306. Fertilizer Response Curves in West Indian Export Agriculture: The Empirical Evidence The Nature of Yields in the Region: The Case of Sugar Cane and Bananas Discussion of export agriculture's response func— tions will be confined to sugar cane and bananas. We do not mean to suggest that other export crops are unimpor- tant to the region. On the contrary, citrus, cocoa, coffee, and Spices constitute the mainstay of many of the , smaller islands. However, our rationale for focusing on these two commodities is essentially twofold: (1) they account for over 80 percent of total regional agricultural export,38 and zations cover< infrastructurv commodities .3 Table of sugar cane Guyana from 1 Suqar cane, 1 Of 5119M cane lation betwee it is more me period than ( tained in 5‘f FIOm Table 7 Sugar cane r to the acre \ 38 Se contributior eXport CfOps experts, 866 Appendix B, 39 w e Lloh Of the: Rent, 40 2240 lbs.)A 242 export,38 and (2) some 30 percent of the research organi— zations covered in the survey of West Indian research infrastructure are involved in research on these two commodities.39 Tables 7, 8, and 9, Appendix D, show: (1) tons of sugar cane reaped per acre for the West Indies and Guyana from 1953 to 1967, (2) tons of sugar per acre of sugar cane, 1953—1967, and (3) the tons of sugar per ton of sugar cane, 1953—1967. Because of the positive corre— lation between rainfall and cane yields and sugar content, it is more meaningful to consider yields over a larger period than one year. Thus, a better picture can be ob— tained in 5—year, lO—year, and lS—year "moving" averages. From Table 7, Appendix D, we find that yields per acre of sugar cane reaped has averaged somewhat less than 30 tons to the acre for the three moving averages, from 1953—67.40 38See Chapter III for discussion of the relative contribution of the export sector to economic growth and development. For specific contribution of individual export crops to total export agricultural exports and total exports, see Table 3.4, p. 98 . Also Tables 1, 2, and 3, Appendix B. 39 . See Chapter IV, Illustration 4.2, for the loca— tion of these research organizations and time of establish— ment. 40All figures given in tons are “long tons” (i.e. 2240 lbs.) Thus, we see 1 the region on shows that th‘ reaped has av the three mov Table 9, Appe sugar per tor t0 1 for the yield 1 ton c it is safe tr there has bee last 15 year: Tablv Show the cha in the West Show that th that yields most dramatj and Product]- Islands. B< dramatiC ch; \ 41 are derived 243 Thus, we see no major increases in sugar cane yields in the region over the last 15 years. Table 8, Appendix D, shows that the yield of raw sugar per acre of sugar cane reaped has averaged a little under 3 tons to the acre for the three moving averages of the 1953—67 period. Finally, Table 9, Appendix D, shows that the milling rate of raw sugar per ton of cane has averaged somewhat less than 10 v to l for the three averages (i.e. 10 tons of sugar cane yield l ton of sugar). Given these figures, we feel that it is safe to say that, by any of these three measures, there has been little or no increase in yield over the last 15 years. Table 2, Appendix B, and Table 10, Appendix D, show the changes in area, production, and yield of bananas in the West Indies between 1948 and 1967. The tables show that there has been modest expansion in yields, and that yields have varied widely from year to year. The most dramatic changes, however, appear to be in acreage and production expansion, particularly in the Windward Islands. Both acreage and production have shown less dramatic changes in Jamaica since the 1960's.41 In 1Figures for banana yield, area, and production are derived from F.A.O. (UN), op. cit. general, banal to the adjace1 countries. T? region probab acre. These presented in three times a high in Centr ica. The int the fact that duction patte French Islam R e5 onse Cur W The banahel indus 0n VariOus \ the largest Indies! and markable in. IertiliZer I713 tOns 244 general, banana yields are low in the West Indies compared to the adjacent French Island and Central and American countries. The F.A.O. figures show that yields for the region probably average out at less than 3 tons to the acre. These figures are supported by independent data presented in Table 5.10 which show that banana yields are three times as high in the French Islands, four times as high in Central America, and twice as high in South Amer— ica. The interesting aspect of the yield situation is the fact that ecological conditions, soil type, and pro— duction patterns are similar in the West Indies and the French Islands. Response Curves for Sugar Cane and Bananas The sugar industry (and to a smaller degree the banana industry) conduct extensive nutritional research on various varieties. The sugar industry is undoubtedly the largest commercial user of fertilizer in the West Indies, and annual fertilizer consumption has shown re— markable increases. For example, in Jamaica nitrogen fertilizer consumption on sugar estates increased from 1,715 tons in 1950 to 2221 tons in 1958. Over the period .mfi QLL§\UE(E iiiiiiliiilill l.i\liliiiiiii\l|i uzmfloz mmuflnvmvunhmxr SUEDE EHQJHN HMQN \FNUCSOU 0mflh®>< :fl WUHCMCA HZZMCQEII.C~ ..W‘ IQms/Nh UMVZ D.CQU \NOQEH @EOWJ, u mwflNU.ESOU UCflUNOAHuAH enmsmsm ewmflan ummz on“ we Muflmnwbflab .em .m .soae .moonomcoo mofifiocoom HMHDpHSUHHmm cmflch wwwz pcoowm .wuumSGGH mcmcwm mUQMHmH pum3pufl3 map mo mEmHnoum erocoom: ..m .vsmmuom "monsom oz» mo sapwoooum : W .m.n .m.a m.m vwma cmaflwe "aflma mumfinom rfimflpcm>mo MHMBQ N.mm m.m momH mflamfiom .SOHE mOHU .>mo MHMBD N.mm 0.0 moma ammou who>H HmMSOHS mouw Imumsaom mm G.NH mwma coonmfimu "mOHum¢ nmumomq .mgmsaom h.wm m.m vwma mpcmamH ©HMBUCHB mpmanom .cmumomq m.wm m.m some monmsme gmecam>mo pmmno .mumsnom .nmflwcm>mo human .m.: e.» eoxmwma msaflcfiunmz muwsnom .m.c m.w vo\m®ma mmsoawpmsw dengue: mouo Iwuwam> .m.c w.m~ mood veansmmm amoflcflfioo no "amongflumo 4 2 sown m.on m.m|o.m moma menfioaoo amazon: mono mo ma.m moma Mowmsom "moeuwa< susom Homnoflz mono Imuoam> hr o.oa mwma mfimcmm lop: .m.c >.valm.oa wood MOflm ammoo How£0flz mono .mcmnmu .mumam> .m.c w.na1m.mfl voma mwudpcom "moanwsm Hmnusmu amflpco>mo mumso H.m© w.ma mw\N@mH AmtcmHmH metamov cflmmm Homoudm .mnq wuo¢\m:09 usages weapoflnm> socdm Gamay Hmom xhucsoo wwmuo>< .mmfluucsou mqfluuomxm pmz uGMpHOQEH ofiom 2H mpamfiw mqmnmmll.oa.m mqmNME . DETEUMMNB . u NO .02 n MUQQ n UT ®®< n u HMHME .hOIGQQH \MUNGEdh EOHUMEHNHthmNWHNuhthI.HH.m EJD§S ®HO§\HMWSW mCOH u Iii‘ll'ii‘lli‘iiliilii UHQHW WSUGOZ NH OUMEBXOHQmi TVKVUQJU QmQOAHmmHm smufim EONMQMGNH C0 mun‘VfiUMfihnflyxw mCTU HQHUHUEOU NON .sm .m .somH .ucofipummoo noummmom map mo uuomom Hmscgd .AmonEmnv QOHumHoowma m.HoHDpomw5:mz Macaw H®OHDOm .omMHo>m ofiu no GOHpmmHHHH mom mogocH onom w psonollwogHm pmoB paw Houpcou smog How “MHHEHm mos own Houmzm mm.¢ ¢N.mv NH wolemxm mh.HH umoe om.¢ on.wm HH wmlmlm om.mH Houpcou .U 8 4 2 .m.: mH.mv NH owxmlm mh.NH umoB .w.c , mm.mm HH wwvmmlw oo.MH Hospcoo .m wH.m vm.md NH wwlmHIm mN.NH pmoe mo.v we.hm NH owlmlm mn.mH Houpcou .< mace mace mgpcoz ouo¢\umm5m mGOB H ono¢\o:mo mQOB H H H H H H . mQOHummHHuH . popGMHm . umo>umm . . HHmm ” m o .02 n o m n m mm H ucwEumeH H may UHoHN mswcoz NH opmfiflxoammfi H m H p Q n u fl n H H . B .ouHm noumwmom do moHHwHHm> undo .soloomH .monmemn HMHonEEOU Mom o>HSU mmcommwm ECHummHHHHIHwNHHflmuomII.HH.m mqmme (sterling) pe profitable. other field e per acre of n additional 1C accounted for Experiment it Of cane per a between 11 i: eXperiment, cane per acr Give tiliZer and can tUrn to increaSQd ir 0f experimel in the regi, reSPOUSe Cu cane acreag that Yields \ 45S QEQSLJEHK CurrEnt 249 (sterling) per acre. Thus, the venture was extremely profitable. Calculations from this experiment and many other field experiments suggest that an additional 2 cwt. per acre of nitrogen accounts for about 3 tons of the additional 10 tons of cane to the acre, while irrigation accounted for the remaining 7 tons. Furthermore, in this experiment it was estimated that only about one half ton of cane per acre could be attributed to the variation between 11 irrigations and 12 irrigations. Thus, in this experiment, irrigation accounted for about 6.5 tons of cane per acre. Given the observed relatively high positive fer— tilizer and irrigation response curves for sugar cane, we can turn to the question as to why sugar yields have not increased in the region over the past 15 years. A review of experimental work in other sugar—producing countries in the region indicated similar fertilizer and irrigation response curve to that of Jamaica. We noticed that sugar cane acreage has significantly expanded over the period that yields have been constant. We also noted that the 5Sugar Manufacturer's Association (Jamaica), Annual Report of the Research Department, 1967, p. 38, At current rate of exchange, 171 (sterling) = $2.40 U.S. average annua aresult of m these movemen explanation o crease its pr of sugar has that is margi sion has resx Product of 1; has just bee] PrOdUCt of f. margin); (2) resulted in Problems of SearCh resul not effect“ output comir knowledge 0: PErfOrmanCe ally rElate. If strong eVid then One mu 250 average annual change in value increased significantly as a result of more favorable preferential prices. Given these movements, we suggest three factors as a plausible explanation of the failure of the sugar industry to in- crease its productivity: (1) regional output expansion of sugar has come from expanding cane production onto land that is marginal for sugar cane production. This expan— sion has resulted in a relative decline in the Marginal Product of land input (at the extensive margin), which has just been offset by the increases in the Marginal Product of fertilizer and irrigation (at the intensive margin); (2) harvesting and productive inefficiencies have resulted in significant losses; and (3) there have been problems of effectively commercializing eXperimental re— search results such that experimental response curves are not effective measures of the utility of the research output coming from the research organizations. From our knowledge of the sugar industry we feel that the yield performance of the regional industry is probably function— ally related to all three factors. If factor (1) is indeed the case (and there is strong evidence to suggest that this has actually occurred), then one must question the social and economic consequences from alloca tion, when utilized ir bases for I gion, since of land ho] appears to in Chapter the highest labor costs tiOn of the has been eg a ton of 51 Puerto Ric< and 104 i1 efficiency COSt struc the fact it l‘ands that QUctiOn' WW 251 from allocating scarce land resources into sugar produc— tion, when such land could probably be more effectively utilized in other crops.46 Quite clearly there are sound bases for rationalization of the sugar industry in the re— gion, since the opportunity costs of following expansion of land holdings in sugar production is high. Factor (2) appears to have some validity. We had already pointed out in Chapter IIthat the West Indian sugar industry is one of the highest cost producers of sugar in the world. High labor costs is a major component of the uncompetitive posi— tion of the industry on the world market. For example, it has been estimated that it requires 53 man—hours to produce a ton of sugar in Jamaica, compared to 33 man—hours in Puerto Rico, 33.5 man—hours in Louisiana, 9.8 in Florida, and 10.4 in Hawaii. Further insights into the production efficiency of the industry can be gained by examining the cost structure in terms of the major cost components. In the Jamaican industry, labor costs accounted for 48 percent of total cost of producing a ton of sugar over the 1964—65 46The West Indian sugar interests have acknowledged the fact that the industry has expanded production on to lands that are marginal and submarginal for sugar cane pro— dUCtion. See: Sugar Manufacturer's Association (Jamaica), Memorandum (Cyclostyled), Undated material, p. 5. period. Cu] some 31 per< Factor (3) a of the consi found that 1 consistentlj mentation o (1) lack of sion, (2) 1 farmers, an necessary r fertiliZer_ experiment, for OVer 7C timer ac: tion now be the Small ( cane proml< Cheers; We to underta‘; this inVes \ 47 w 252 period. Cultivation and harvesting costs accounted for some 31 percent of the total labor cost per ton of sugar.47 Factor (3) appears to have some validity. In our analysis of the constraints to implementation of research finding we found that the Type 3 agricultural research organizations consistently indicated that a major constraint to imple— mentation of research findings was equally weighted on: (1) lack of effective contact between research and exten— sion, (2) lack of effective contact between extension and farmers, and (3) the inability of farmers to acquire the necessary resources. From reviewing the data on fertilizer—irrigation response curve for the Jamaican experiment, it is quite clear that irrigation accounted for over 70 percent of the additional yields, while fer— tilizer accounted for the remaining 30 percent. The ques— tion now becomes one of the feasibility of irrigation for the small cane farmer. Over 50 percent of annual sugar cane production in Jamaica is supplied by small cane pro— ducers; we seriously question the ability of such farmers to undertake such a high capital investment. We feel that this investment is within the range of the large sugar 47Government of Jamaica, Report of the Sugar In— dustry Enquiry Commission, October, 1967, p. 51. estates, but produces sug Mucl plies to bar in the Windv concentrater 11:11:33) t< prevailing , research f1; 0f one ton YiElds in t' PGrimental restilts fro variability tions. In any "Sure" Some imprm When reConm losses are \ 253 estates, but is hardly feasible for the small farm which produces sugar cane as a cash crop. Much of the argument advanced for sugar cane ap— plies to banana production. It has been estimated that in the Windward Islands it is possible to use one ton of concentrated N—P-K fertilizer formula (in the ratio of 11:11:33) to produce at least ten tons of bananas under prevailing conditions. Under experimental conditions, research findings suggest that a general application rate of one ton of N—P—K per acre can more than triple banana yields in the Windward Islands.48 As in the case of ex— perimental results in domestic food crop research, the results from banana research have exhibited substantial variability according to soil type and ecological condi— tions. In addition, research findings have not produced any ”sure” way of pest and disease control of bananas. Some improvement has been made in this area; but even when recommended practices are followed, substantial losses are still incurred. Banana disease and pests are 48Twyford, G. T., "Economic Aspects of Banana Research in the Windward Islands,” Proceedings of the Second West Indian Agricultural Economics Conference. University of the West Indies, Trinidad, August 1967, pp. 71—88. constantly (1 these condit most banana fertilizer. age fertiliz than 0.16 t( We : minimal unt: and high po' Thi designed tc as Well as Vestmem ii that hiSto: gains in b \ 49 (:97 perCent in the Wes and Beckfc Of Bostoh, l< 254 constantly developing immunity to chemical controls. Under these conditions, plus the generally uneconomic size of most banana holdings, there is little incentive to apply fertilizer. For example, it has been estimated that aver— age fertilizer application in the Windward Islands is less than 0.16 tons to the acre.49 We feel that adaption at the farm level will be minimal until research output can demonstrate consistent and high potential payoffs. Summary This chapter examined the international efforts designed to generate significant agricultural productivity, as well as the available evidence as to the return on in— vestment in agricultural research. The evidence suggests that historically, successful agricultural productivity gains in both the ”new” and the ”old” countries were 49Ibid., p. 75. It has been estimated that about 97 percent of the banana holdings are less than 10 acres in the West Indies. See: Arthur, H. B., Houck, J. P., and Beckford, G. L., Tropical Agri—Business Structures and Adjustments: Bananas, Division of Research, Graduate School of Business Administration, Harvard University, Boston, 1968, p. 58. achieved by . those factor the limits. most relevan purposeful 1: response crc chemical inr in this dire t0 investmel that this t: ratio Signi Opportuniti to be small The gains is Ce lOgically s tilizer res CrOps. A : and 90m), indicates clined Sin 255 achieved by generating technology which substituted for those factors of production that imposed constraints at the limits. The international experience that appears most relevant to the West Indies is that dealing with purposeful research efforts to generate high fertilizer response crop varieties for domestic agriculture. Bio— chemical innovations appear to be the basis for success in this direction. The studies dealing with the return to investment in relevant agricultural research indicate that this type of investment tends to give a benefit—cost ratio significantly above most alternative investment opportunities. Thus, the probability of failure tends to be small for relevant research efforts. The general discussion on agricultural productivity gains is centered around the presence (or absence) of bio— logically superior crop varieties, in terms of high fer— tilizer reSponse thresholds for the regional domestic crops. A review of crop yields for the major cereals (rice and corn), as well as root crops and starchy vegetables, indicates that in many instances yields have actually de— clined since 1948. Examination of experiment station . a...“ results for Caribbean is the litt feri yie out exp lar trc the FEE CO te 256 results for Jamaica, Trinidad and Tobago and the Eastern Caribbean islands indicate the following: 1. The crOp varieties that are generally released by the experiment stations to the farmers show very little significant yield differentials under N—P—K fertilization as against no fertilization. In a number of cases the addition of nitrogenous fertilizer depressed yields to the point that yields were actually lower than experiments carried out without fertilizer. In a few cases, fertilization increased yields of local crop varieties; but even within a single experiment station, the variation in yields is large. In addition, the level of biological con— trol necessary to attain such yields tends to make the recommended variety uneconomical for the peasant farmer. EXperimental results (in terms of crop yields) conducted under conditions of the best available technology were not significantly better than m x' with“ f , i . resu usin the wide hybi Jame .v‘ Frm ical innova. Indian dome In . Organizatio Varietal tr varieties t ical Condit halle Hot St IESults Of WhEn Expe“ treatment, mending the the Yield ( :0 What thl 257 results attained by the "better" peasant farmer using traditional technology. 5. The only crop varieties that generally out—perform the local unimproved varieties consistently, under widely variable ecological conditions, are the tw0 hybrid corn varieties (X304 and X306) developed in Jamaica by Pioneer Hi—Bred Corn Company. From the above observations we feel that biochem— ical innovations are practically non—existent in West Indian domestic agriculture. In general, we find that domestic—oriented research organizations have tended to concentrate their efforts on varietal trials rather than developing indigenous improved varieties that are adaptable to a wide variety of ecolog— ical conditions. Domestic agricultural research efforts have not succeeded in placing their results well above the results of the more commercially—oriented farmers. Even when experimental yields are higher than under non—fertilizer treatment, we feel that this is not a sound basis for recom— mending the extension of Such treatment to farmers. Unless the yield of the treated plots are substantially superior to what the better farmers are already getting with traditional extension su The fertilizer 1 why peasant governmental varieties aV serves a 10x generated fl tially redu in applying the increme nificant ex into accour Producer al’ would furtl fertilizer that fI‘Om . are dWare reSult in positiOn. priCES. I L L LOLal COSt 258 traditional technology, the treatment will hardly be an extension success. The general failure of research to produce high fertilizer response crop varieties would tend to explain why peasant farmers often show a lack of interest in governmental fertilizer subsidy schemes. If the crOp varieties available to the farmer are such that he ob— serves a low response curve, there will be limited demand generated for fertilizer, even when the price is substan— tially reduced by subsidies. The marginal cost incurred in applying additional units of fertilizer, relative to the incremental changes in yields, would not warrant sig— nificant expansion in fertilizer application. If we take into account the high degree of competitiveness between producer and consumer capital for the peasant farmer, it would further explain the general reluctance to invest in fertilizer, even at highly subsidized prices. We argue that from past experience, West Indian peasant farmers are aware that large scale application of fertilizer could result in an actual decline in yield, and hence his income position. Total Revenue is the product of output and prices. If additional application of fertilizer increases total costs of production, and yields are depressed to the point that t eXperience a stant). Um term expans: izer subsidj A g, cane and ba shows that past fiftee Windward Is speaking is little evic POSseSS a j Sugar cane and imprOVe dUCtion by to reCOnci range of h closEr exa (iency to e lands that to eXpan d working 0; 259 point that total revenue decline, then the farmer could experience a loss (assuming product prices remain con— stant). Under these conditions we do not see any long— term expansion in agricultural output by massive fertil— izer subsidy schemes. A general review of the yield situation for sugar cane and bananas, the two major agricultural exports, shows that sugar cane yields have been constant over the past fifteen years. Banana yields in Jamaica and the Windward Islands are substantially lower than the French— speaking islands and Central and South America. We found little evidence that West Indian sugar cane varieties possess a low fertilizer response threshold. In general, sugar cane research is highly advanced in the West Indies, and improved varieties are constantly being put into pro— duction by local research efforts. We found it difficult to reconcile constant yields with the existence of a wide range of high response sugar cane varieties. However, on closer examination, we found that there has been a ten— dency to expand sugar output by expansion of acreage onto lands that are marginal for cane production. The tendency to expand output by increasing acreage is related to the working of the quota mechanism and preferential arrangement pansion ont< decline in ‘ (at the exti increases i and irrigat labor cost research ef ation of te costs per u a more comp COuntrles_ arrangement covering sugar production. We feel that ex— pansion onto marginal land has resulted in a relative decline in the Marginal Physical Product of land input (at the extensive margin), which has just been offset by increases in the Marginal Physical Product of fertilizer and irrigation (at the intensive margin). Given the high labor cost component of sugar production, we feel that ‘ research efforts should be redirected toward the gener— ation of technological innovation that would reduce labor costs per unit of output. This would put the region on a more competitive basis with other sugar producing countries. Th: re‘lairding i ulating int tasks of t. Cd definitim PART III CHAPTER VI AGRICULTURAL RESEARCH PRIORITIES AND STRATEGIES IN THE 1970's: POTENTIAL SECOND AND THIRD GENERATION PROBLEMS Introduction This chapter expands our discussion in Chapter V regarding the problems encountered in the process of stim— ulating increased agricultural productivity. Specific tasks of this chapter are: 1. Examination of a set of criteria to determine how agricultural research priorities and strategies can be based in the West Indies over the 1970's. 2. Examination of the relationship of these criteria to the long—run solution of likely second and third generation agricultural problems.1 lSee pp. 184-186 and footnote 1 of Chapter V for definitions of first, second, and third generation agri- cultural problems. 261 In On second a specific 56 aPproach is assigning 1 are implic: generation ment and i “Signing Normally b t3id1 of re which are of the rel Dent of de aspect in generatim Problem is heiow. 262 3. Development of a set of research strategies and priorities dealing with the subject matter and types of agricultural research systems for both domestic and export agriculture. In pursuing the first two tasks, we focus attention on second and third generation problems, rather than on a specific set of research criteria. The rationale for our approach is this: we believe that the major criteria for assigning research priorities in the agricultural sector are implicitly included in assessment of second and third generation problems. For example, if food import replace— ment and increased employment are to be major criteria for assigning research priorities, each of these criteria would normally be included in discussion of the state and poten— tial of regional effective demand and income distribution, which are second and third generation problems. Because of the relative importance of the effective demand compo— nent of development, major attention will be given to this aSpect in the discussion of potential second and third generation problems. Furthermore, the effective demand problem is closely linked to the other four problems given below. We lems to be 1970's. Th for SE m< lems to 1970's. 263 We consider five second and third generation prob— be of major importance in the West Indies over the These are: Lack of aggregate and per capita effective demand for expanded agricultural output resulting from successful research efforts. Increased levels of structural unemployment. With an already high level of regional unemployment, this potential problem deserves special attention in the West Indies. Unequal distribution of net worth among and within sectors of the economy. Artificially high Commonwealth preferential prices for export crops are already malallocating scarce land away from food crops to eXport crops. Under conditions of increased efficiency of production for export crops, this problem could be aggregated. Inadequate diets and nutrition among certain seg— ments of the pOpulation——amidst expanded food production. Stu past fiftee has been eq The margina with a rise rapid rate buted to es sector (1a: impe’cus frc by the mid. growth Sta] came as a 1 However, a: thring was there is l i‘ESulted i ployment. malOr fact \ 2 T alillhina ir. 3 5 rate 0f t} 264 Studies in the West Indies indicate that over the past fifteen years the rate of growth in import expenditure has been equal to, or greater than that of, total income. The marginal prOpensity to import has risen concurrently with a rise in real per capita income. In the 1950's the rapid rate of growth in the region could be largely attri— buted to establishment and growth of the extractive mineral sector (largely in Jamaica and Trinidad).2 The growth impetus from this sector appeared to have reached its peak by the mid—1960's, and thus, the unprecedented rate of growth started a decline. From the mid—1960's, some growth came as a result of expanded manufacturing and tourism. However, as indicated earlier, the expansion in manufac— turing was largely confined to Jamaica and Trinidad, and there is little evidence to suggest that such expansion resulted in appreciable structural transformation and em— ployment. On the other hand, expanded tourism has been a major factor in maintaining the 2.5 percent average annual rate of growth in per capita income betWeen 1961 and 1967. 2The extractive mineral sectors were bauxite and alumina in Jamaica and oil in Trinidad and Tobago. 3See Chapter II, pp. 26—50 for discussion of growth rate of the region. Con income sign income elas The shiftin ing level 0 import bill components idad and Tc grounds for Shifters i1 N0n~durab1. 79‘4 99rce and Tobago increased r1Oikdurabl tween i95c cent to 35 ShiftS in COincided in real pe obserVed ; not have the incom 265 Concurrently with the movements in per capita income significant structural shifts occurred in the income elasticities of demand for certain commodities. The shifting demand structure is indicated by the increas— ing level of capital and intermediate goods in the regional import bill. The most recent data on the movements in the components of regional imports refers to Jamaica and Trin— idad and Tobago. However, such movements do provide some grounds for assessing and identifying the major demand shifters in the regional consumption and demand functions. Non—durables as a percentage of total imports declined from 79.4 percent in 1951 to 68.5 percent in 1965 for Trinidad and Tobago. Over the same period, the quantity of durables increased from 20.6 percent to 31.5 percent. In Jamaica, non—durables declined from 80 percent to 64.8 percent be— tween 1950 and 1965, while durables increased from 20 per— cent to 35.2 percent. In both islands, there were major shifts in the composition of import demand. The shift coincided with that period of unprecedented rate of growth in real per capita income already mentioned. Clearly the observed shifts in import demand and propensities could not have occurred without the dramatic upward shifts in the income position of the region. However, there are reasons to import dema the relativ This point of this cha Des ables in t} some 40 per time perior COHipositiox Memo (19! The indiah bal; CdutiOH ag‘ Placement income pro COuntries Par capita substituti This Sugge natignal a case for e by the m0. 266 reasons to believe that much of the observed expansion in import demand (particularly food) is highly correlated with the relative cost of imports as against domestic items. This point will be pursued further in subsequent sections of this chapter. Despite the increasing importance of consumer dur— ables in the total import billlfood products represent some 40 percent or more of the non—durable items for both time periods, and for either country. Table 6.1 shows the composition of consumer goods imports for Trinidad and Tobago (1951 and 1965) and Jamaica (1950 and 1965). The high food import bill is important in the West Indian balance of payments problems. However, we must caution against policies that seek to use food import re— placement solely as an answer to balance of payments and income problems. Import replacement policies within countries with relatively rapid rates of growth in real per capita incomes must necessarily involve policies for substitution of non~food items as well as fppd items. This suggests that policies must be programmed at the national and sectoral, as well as regional, levels. The case for an integrated substitution policy is demonstrated by the movements in the aggregates of personal diSposable TABLE 6.1.- Inn NON—DURABL} W Beverage: Medicinal ceutio Essentia Textile, Fabric i Clothing FOOtWear 9% Jewelry Radio Se Televisi Radiogra Washing MotOr Ca MOtor CYC BiCYCles FurnituI Travel C Handba Other C( Durabj TOTA] SouIce: 267 TABLE 6.l.——Composition and Consumer Goods Imports Trin— idad and Tobago, 1950 and 1965. 1951 and 1965 and Jamaica, Imports Trinidad and NON—DURABLES Food Products Beverages & Tobacco Medicinal and Pharma— ceutical Products Essential Oils, etc. Textile, Yarns, Fabrics, etc. Clothing Footwear DURABLES Jewelry Radio Sets Television Sets Radiograms Washing Machines Motor Cars and Parts Motorcycles & Parts Bicycles & Parts Furniture & Fixtures Travel Goods and Handbags Other Consumer Durable Goods Ja ' Tobago maica 1965 1951 1965 1950 ———————————— Percent————————————— 68.5 79.4 64.8 80.0 40.5 46.0 39.8 39.6 3.2 2.1 3.3 1.4 3.2 2.1 2.6 4.4 2.9 2.4 2.7 2.0 12.2 17.8 13.4 21.3 2.9 4.6 2.3 6.7 3.7 4.4 .7 4.6 31.5 20.6 35.2 20.0 .3 .5 .9 .5 .7 .5 .5 .5 .4 — .7 — 1.3 — — _ .2 — .2 — 9.4 5.6 9.5 3.2 — .1 .2 .l .2 .6 .2 .5 1.0 .8 .8 .3 .5 3 .5 — 17.5 12.2 21.7 14.9 TOTAL Source: Brown, A., Brown H., 100.0 100.0 and Girvan, N., 100.0 100.0 "Patterns of Consumption and Possibilities for Change," 33— gional Conference on Devaluation, Institute of Social and Economic Research, University of the West Indies, Jamaica, February 2—4, 1968. ~——-__. income, pei both Jamai< 1950's and point out 1 average pe: 1950-60. 1 not grown and averag able incre Savings as ally rapid ticular ft StitUtion industrial mingfl‘ II the West 1 formation ages betwv eXtreme 1y \ 4 ary 2-4, 268 income, personal savings, and personal consumption for both Jamaica and Trinidad and Tobago between the early 1950's and the early 1960's (Table 6.2). Brown epflgl, point out that there have been substantial gains in average per capita disposable income over the decade 1950—60. However, the personal prOpensity to save has not grown significantly. At the same time, both total and average personal consumption have registered remark— able increases. The relatively slow growth in personal savings as against personal consumption, plus the gener— ally rapid shifts to imported consumer durables (in par- ticular furniture and automobiles) suggest that any sub— stitution policy must necessarily make provisions for industrial programming as well as agricultural program— ming.4 In addition, our analysis of the degree to which the West Indian economy has undergone structural trans— formation indicated that the backward and forward link- ages between the various sectors of the economy were extremely weak. The data with respect to cost coefficients 4Brown, A., Brown H., and Girvan, N., "Patterns of Consumption and Possibilities for Change,” Regional Con- ference on Devaluation, Institute of Social and Economic Research, University of the West Indies, Jamaica, Febru— ary 2—4, 1968, p. 123. OmvamHOH. QZAQ QSQHZHNHH. nHo can .. m CBOHm ..m .cBonm "mousom .B.B ow.¢w H .m.D ow.mw H H4 mmcmfloxo mo who“ ucousso u.mw N.mmm H.mw o.mom mm.vm ooo.me mm.mm ONN.mm soHuQESmcoo Hmcomnom . . . . mcH>mm m OH m h . . . m . m 0 HH m mH mm m hmo NH no H mom Hmcomnom . oEoocH o.ooH m.mm® o.OOH m.¢NN o.OOH sworoHN o.OOH mmH.om oHHMmOQmHQ Hmcomnom ucoonom COHHHHEW Dcoomom COHHHHEW pcoouom ooo.H% usoouom ooo.HH HomH HmmH vmmH NmmH oommoe ozm nsonHme moHasme monsoonmma mimoUHnm oomHV .e.ew eoHHHHs onoo_H mooflum oaaonsov .mnmow pouomHmm .omMQOB pcm popHQHHB paw mUHmEmb .mmummongmm mo COmHHmmEOUII.N.© mammB of the Trix a relative being util: Chapter II the argume‘ ming are e dynamic ro is no guar Sired resu Well planr PrObabilit 0f simulta the food 5 of this cl impact of Prices an, this POin West Indi has risen \ 5 tural tra SEe fOOtr linkages I IGg‘lOnal 270 of the Trinidad and Tobago input structure indicate that a relatively low percentage of indigenous material was being utilized in manufacturing process (See Table 2.9, Chapter II). This would tend to lend further support to the argument that overall sectoral and regional program— ming are essential if import substitution is to play a dynamic role in economic transformation.5 While there is no guarantee that such programming will give the de— sired results, there is every reason to believe that a well planned and executed programming would increase the probability of realizing specific results. The importance of simultaneous expansion in the non—food sector and in the food sector will be discussed in subsequent sections of this chapter. Discussion will focus on the long—run impact of food and non—food expansion on domestic food prices and farm income. However, it should be noted at this point that as per capita income has risen in the West Indies, the proportion of durables to non—durables has risen appreciably. With the current levels of income 5See Chapter I for working definition of struc— tural transformation. Also footnote 8 of Chapter II. See footnote 13, Chapter II, for definition of economic linkages, and footnote 4, Chapter V, for definition of regional and national programming. elasticity food secto: in order t: panded foo If ciable adj would be 5 ever, ther question. Placing fc p01icy is the domest (or its 51 Price at \ level and helogy in \ 6 relations of demand 7 haVe not with res; mOSt Case induStryI it is dot 271 elasticity of demand for food, it is vital that the non— food sector increase its contribution to per capita income in order to prevent domestic farm price decline due to ex— panded food output resulting from increased productivity.6 If import replacement policies bring about appre— ciable adjustments in the region's terms of trade, there would be substantial economic gains to the region. How— ever, there is a second element involved in this policy question. This element deals with the cost aspect of re— placing food imports. Import replacement as an Operational policy is inadvisable if there are clear indications that the domestic unit costs of producing the imported commodity (or its substitutes) are substantially higher than the unit price at which the commodity can be imported.7 Given the level and characteristics of current agricultural tech— nology in the West Indies, there are strong indications 6See page 301 of this chapter for discussion of relationship between per capita income, income elasticity of demand for food, and farm prices. 7Policymakers in many less developed countries have not given enough consideration to this cost argument with respect to the establishment of new industries. In most cases their rationale has been based on the ”infant industry” argument, which has some validity. However, it is doubtful if such an argument is applicable to agri— culture. that domes are substa Thus, some to import relevant a erated whe reduced. realistic become one following We briefly d. GirvahtS in 1963 t than in 1 Value of The growt livestock durables Cam; gait the Share \ BevelO m iiShed m 272 that domestic costs of production in certain commodities are substantially above unit prices of similar imports. Thus, some economic justification exists for continuing to import certain commodities. We believe, however, that relevant agricultural research and technology can be gen— erated whereby unit costs of production are substantially reduced. At this point import replacement could become a realistic alternative. An important aspect would then become one of evaluating the likely long—run impact of following this particular course of action. We set the stage for subsequent discussion by briefly describing the regional food import sector. Girvan's study of the Jamaican situation indicated that in 1963 the share of consumer import goods was higher than in 1954. In addition, he found that the absolute value of imports had more than doubled over this period. The growth in consumer imports was largely attributed to livestock and dairy products, motor cars, and household durables. In general, the items that registered signifi- cant gains in total consumption also registered gains in the share of total imports.8 (See Tables 1 and 2 of 8Girvan, Norman, Foreign Investment and Economic Development in Jamaica Since the Second World War (Unpub— lished material), p. 405. Appendix E household ( Although tl dications ‘ Tobago and movements period in twice that in general imPort exE caPita dis eXPenditui major facl of dairy . ihgs frOm tern in t the reidt \ 0 .1 territOri eeh rUnr 1( p, 111 ii Study. Appendix E for the share of individual food items in total household consumption for Jamaica and Trinidad and Tobago.) Although this study was limited to Jamaica, there are in— dications that similar situations exist in Trinidad and Tobago and in other territories.9 Adam's study of the movements in food consumption and imports over the 1950—63 period in Jamaica found that the income elasticity of import demand for food was well above unity, and was about twice that of the elasticity of consumption demand for food in general. This meant that, over the period, per capita import expenditure on food was rising faster than real per capita diSposable income, and almost twice as fast as food expenditure per capita in general. It was found that the major factors in the movements were the large quantities of dairy products, meat, and imported cereals.lO The find— ings from the Jamaican study characterize the general pat— tern in the region, and to a great extent, they reflect the relatively high income elasticities of demand for 9A review of the Development Plans of the various territories shows that imports of livestock products have been running high in the territories. l . . 0Brown, A., Brown H., and Girvan, N., op. c1t., p. 111 in reference to Nassau Adams unpublished econometric study. cereals, n tories. F the averag 1 about .45 .77 and .E The averag eral was a pendix E, i Table 4, 1 capita fO< i imports, and Trini iOWest va of agricu POrts_ I is less 5 Peasant E emergence in the Le \ elastiCii was with and Thom, 274 cereals, meat, and dairy products in the various terri— tories. For example, it has been estimated that in 1958 the average income elasticity of demand for cereals was about .45 for the West Indies. The estimates were about .77 and .63 for meat and dairy products, respectively. The average income elasticity of demand for food in gen— eral was about .40 for the region. (See Table 3, Ap— pendix E, for breakdown by countries and commodities.)11 Table 4, Appendix E, shows the relative changes in per capita food imports by territories between 1956 and 1964. In terms of actual dollar value of per capita. imports, Barbados has the highest value, Antigua second, and Trinidad and Tobago third. Jamaica has the third lowest value. There is some correlation between the level of agricultural diversification and per capita food im— ports. In the sugar producing islands, food production is less developed. The figures reflect the emergence of peasant agriculture in the individual territories. The emergence of peasant farming was relatively less pronounced in the Leeward Islands, Barbados, and Trinidad and Tobago. llBrewster and Thomas estimate that the income elasticity of demand for meat and dairy products in 1969 was within the range 1.00 to 1.10. See: Brewster, H. and Thomas, C. Y., op. cit., pp. 290—300. These are port (suga However, t been extre examines i and total Between tl caPita fo: total imp: I Only abou By 1964 t‘ Six times acteristi 1964 peri the relat total imp the deCli total 961 IOSE by a ihGly em hheiage 275 These are the countries that find it advantageous to ex— port (sugar and/br bananas) in order to import food. However, the rates of change in per capita import have been extremely uneven among the territories. Table 6.3 examines the movements in both per capita food imports and total imports for the area between 1953 and 1964. Between the two periods, the value of food imports per capita for the region increased by some 82 percent, while total imports per capita increased by some 131 percent. In 1953 the value of all imports per capita was only about 4—1/2 times as high as per capita food imports. By 1964 the value of all imports per capita were about six times as high as per capita food imports. The char— acteristics of the 1953—1964 period, as against the 1960— 1964 period, are largely reflected in the magnitude of the relative decline in food imports as a percentage of total imports. The years 1958 and 1959 show a break in the declining proportion of per capita food imports to total per capita imports. Specifically, the proportion rose by almost one percent over the 1957 period. Surpris— ingly enough, effective in 1960 the ratio registered an average annual decline of almost 2 percent. It appears significant that the two atypical years coincided with UHOQEH HMUOE M0 COHUHOQOHQ HHfi TCCE ii COHHQHDQOA iii Amos mé UHOQEH Doom MHHQMU me GUHQMU me WUHOQEH HmUOH .vwmfllmmmd ~WUflUEH UWOB .WUHOQEH Hdfi “Cd WUMOQEH TOOh MUHQMU MGA hid HMUOSII.M.® HQQQB .nomH .hsmsuflwm .qo .moHpsH Hum: map mo muHmHo>HnD .moHEosoom HmnduHsoHHmH mo unwaummmoo ”mmHUcH pmoB o Hummemm>cH QOHU pad Mooumo>HH mo Edumosm m on pcdonmxomm UHEOQoom oSE . SH SH Sommomwm HMHDHHDOHHmm ..b .Hommosu paw .E .Q .mpumspm "Eomm ponmpfi "mousom .H.B . u . ow Hm oo Hm opus :OHpmsHm>opmHm um .H.B oo.mm u .m.D oo.Hw nouns omcssoxo unounso was m. somHuoomH m n e.om e.m o.sm m.mm omaaso llllllllllllllili pcoonom m. emaHimmmH Hm: o.HmH N.mm s.amH H.aNH omqaao Illlllllllllll ucoohom "m “.mw c.6He 6.Hs mHe.m oom.mme.H omw.aem «was 2 s.mom o.eo smm.m www.mmm.H mHo.MHN momH MHsH s.mmm ”.mo mmm.m Hso.HsH.H wHe.Nom memH .sH m.mam m.mm emH.m ome.eOH.H mmH.mmH HomH o.sH m.mmm N.mm mmH.m smm.mmo.H oao.mma coma H.mH m.omm n.6m sHH.m «mo.amm smm.osH mmmH H mH m.NwN m.em Nmo.m NOH.mow emm.moH mmms aHmH s.m©m o.ma mmm.m Hmo.mom smm.maH smas m.mH m.mmm «.6e Hmm.m mwo.mmo mee.mmH ommH m Hm m.owH «.mm mss.m mam.oom mmm.moH mmmH uuuuuuuuuu unwoummuiluuluul aHsm mmmmmmmzmmmw luunullaHeooo.w-luilu uaogsH Hmpos no coHuuomoom HHm soon HHa coon QOHumHsmom snow mm “HomEH poem cpHmmo Mom muHmmo Mom mpHomEH Hopoa .womHlmmmH .moHch umoz .mpHomEH HH< pun munomEH poem MUHQMU Mom pan Hmuoeli.m.® MHmfle the period of the reg modest exp translated since the from abroa II in the reg certain k. has to do imports o caPita ef to what e reflectig caPita ef 1“ CJanera relative] the 1950 ieVel 0f the 8Com food in p1 first P1 mush hav the period of dramatic rise in the real per capita income of the region. It appears that the two periods represent modest expansion in per capita effective demand, which was translated into an expansion in per capita food imports, since the imported food items could be obtained cheaper from abroad. In observing the rising propensity to import food in the region, plus the movements in per capita income, certain key questions naturally arise. One such question has to do with the relationship between increasing food imports on one hand and the level of aggregate and per capita effective demand on the other hand. Specifically, to what extent is the rising propensity to import food a reflection of appreciable expansion in the level of per capita effective demand among the West Indian population in general? While it seems reasonable to assume that the relatively high rates of growth in per capita income in the 1950's and 1960's did generate some expansion in the level of per capita effective demand, other features of the economy tend to suggest that the observed increases in food imports did not come mainly from this source. In the first place, the expansion in per capita effective demand must have been relatively small, since it was unable to l absorb the from high domestic e it would 1 sponse f0] sponse di< 0: in the im‘ imports r foods as imports a iiflports I for certa SCheduleg 1 leads us fOQd imp gional e the SOur bution C \ behh act are C0n< absorb the relatively high domestic food prices resulting from high production costs. Presumably, if per capita domestic effective demand had been expanded significantly, it would have been able to generate a positive supply re— sponse for domestic food production. Such a supply re— sponse did not occur. One plausable explanation of the observed movements in the import figures is that the rising level of food imports represent an expansion in consumption of imported foods as a result of changes in relative price of food imports as against domestic foods. As such, rising food imports represent movements along specific demand schedules for certain food items rather than outward shifts in the schedules.12 A second characteristic of the regional economy leads us to further question the argument that the high food import bill reflects a generalized eXpansion in re— gional effective demand. This characteristic relates to the source of growth in per capita income and the distri— bution of such income. As pointed our earlier, the major 12In the case of Specific islands, there might have been actual shifts in the demand schedules. However, we are concerned with the West Indies as a whole. source of sectors ge labor for< sectors i: skilled mi view it i generate widely ov of a prod C there is in the We ture is 5 available effectivi filled b handing Costs ra high don Uhder CC \ ECOh0mi< source of growth came from the mining sectors. These sectors generally accounted for a small proportion of the labor force such that increased income generated in these sectors is highly concentrated in the hands of a few skilled members of the labor force. From this point of View it is safe to say that the growth sectors failed to generate production in ways which would distribute income widely over the population. Johnson argues that this type of a production system does not eXpand effective demand.l3 On the basis of these observed characteristics there is a lack of domestic per capita effective demand in the West Indies. The existence of such a demand struc— ture is intimately related to the low levels of technology available in the agricultural sector. Currently, whatever effective demand that exists within the region is being filled by food imports and domestic food production. Ex— panding food imports reflect high domestic food production costs rather than eXpansion in per capita effective demand. The second question deals with the extent to which high domestic production costs are related to land values. Under conditions of high land values, the divergence 3Johnson, Glenn L., ”Food Supply, Agricultural and Economic Development,” op. cit., pp. 13—14. between av unit of on are low. major fact of the is] than agrir dications in Jamaic premium i Despite t has been lands are first pla ih a nari tributes l Structur Pelicies reducing fOOd imp idem-_ifX Edwards the Wesi 280 between average total cost and average variable cost per unit of output tends to be greater than when land values are low. Agricultural land values do not appear to be a major factor in high production costs of food. In most of the islands, the opportunity costs of land for use other than agriculture tends to be low. However, there are in— dications that there are modest increases in land values in Jamaica, and to a lesser degree in Trinidad, where a premium is now placed on bauxite and oil bearing lands. DeSpite this upward movement in land values, the movement has been moderate, largely because bauxite and oil bearing lands are not generally suitable for agriculture in the first place. Secondly, such lands are generally located in a narrow geological zone, rather than being widely dis— tributed over large areas. Preliminary assessment of the regional import structure indicate that there are justifications for policies to reduce the high food import bill as well as reducing the cost of producing the food. However, the food import data need to be disaggregated in order to identify strategic opportunities for import substitutions. Edwards and Cropper reviewed the food import structure of the West Indies in 1964, in terms of the Standard Internatio that lives thirds of livestock dollars, v lion (W.I and fish 1 of the to each grou dollars 0 lion doll Sugar pre I asSigning haVe to c_ If th6se Ciently : respect 1 SaVed SO] / International Trade Classification (S.I.T.C.). They found that livestock products and cereals accounted for two— thirds of the value of all food imported. Specifically, livestock products accounted for some 82 million (W.I.) dollars, while cereal products accounted for some 73 mil— lion (W.I.) dollars. Importation of fruits, vegetables, and fish products ranked third with some 10 percent each of the total cost, or approximately 20 million dollars for each group. Livestock feed accounted for some 14 million dollars or 6 percent of the total. The remaining 20 mil— lion dollars or 9 percent was accounted for by beverages, sugar preparations, and miscellaneous food items.1 If import substitution is to be a major basis for assigning agricultural research priorities, support would have to go to livestock, cereals, fruits, and vegetables. If these commodities could have been produced in suffi— ciently large quantitites at 1964 competitive prices (with respect to the imports), the area could presumably have saved some 194 million (W.I.) dollars. These commodities l4Edwards, D. T. and Cropper, J., Agricultural Research in the West Indies: The Economic Background to Programs of Livestock and Crop Investigations. Department Of Agricultural Economics and Farm Management, University of the West Indies, February, 1967, p. 14. (Cyclostyled). accounted in that y agricultu substitut dairy prc domestic food pric nology a1 creasing Pricing I and vari< Variable for cert 282 accounted for some 82 percent of the total food imports in that year. Long—run solution of first generation agricultural problems now become a focal point in import substitution problems. Substantial quantities of meat, dairy products, and cereals are imported largely because domestic production costs are high, and as a result local food prices are high. Agricultural research and tech— nology are not the only variables in the process of in— creasing the efficiency of food production. Positive pricing policies for agriculture, as well as taxation and various forms of quota restrictions are important variables in bringing about significant supply reSponse for certain commodities.15 These variables will have to be taken into account in planning and implementing re— gional and national agricultural development policies. Our previous analysis of the structure and performance of regional agricultural research, as well as the 15Schultz argues that a system of efficient prices is required for three sets of prices in the process of stimulating food supplies (1) prices of farm products, (2) prices of agricultural ipppts, and (3) prices of con— sumerggoods and services that farm people buy for consump— tion. See, Schultz, T. W., ”Increasing World Food Supplies: The Economic Requirements,” Proceedings of the National Academy of Sciences, Vol. 56, No. 2, August, 1966, pp. 322—327. character a major i output is productio along lin threshold tion of c substitut adjustmel efforts ; and past~ would be Vegetabl ment of Banded r grain an Used as greatest the low] point 0: Wheat f The Wes genetic characteristics of the agricultural economy, suggests that a major impediment to expansion in domestic agricultural output is the lack of improved technology, and hence, high production cost in the sector. Technological innovation along lines that would significantly increase crop response thresholds, would serve to lOWer the unit costs of produc— tion of domestic food products to the point that import substitution become a major force in balance of payments adjustments. This would tend to suggest expanded research efforts in the area of animal nutrition, animal breeding, and pasture management. Complementary research efforts would be required in the cereals, as well as in fruits and vegetable production. With reSpect to the import replace— ment of cereals, this criterion would tend to suggest ex- panded research on hybrid corn and rice (for both food— grain and livestock feed). These are the major cereals used as staple food in the area, and they offer the greatest potential for commercial cereal production in the lowland humid tropics. Thus, from a purely physical point of view the potential for import replacement of wheat flour with rice and corn appears quite promising. The West Indies could capitalize on the large number of genetic materials now available for rice research from the Internati Improved ternation Expanded years. I have alre hybrids j tablishe< in Niger offers p ing in r Mum technic the fiv in this pUrSue International Rice Research Institute in the Philippines. Improved varieties of corn could be obtained from the In— ternational Wheat and Maize Improvement Center in Mexico. ExPanded corn production appears possible within a few years. This seems possible because commercial efforts have already succeeded in developing locally adaptable hybrids for the Carribbean. Furthermore, the newly es— tablished International Institute of Tropical Agriculture in Nigeria and Center for Tropical Agriculture in Colombia offers potentials for international cooperation and train— ing in research on the new cereals. Strategies and Priorities for Domestic and Export Agriculture Research Subject—Matter Subject Matter Strategies These strategies are based on the discussions of technical agricultural problems found in Chapter V and of the five second and third generation problems given earlier in this chapter. Strategy 1: Domestic Agriculture.——In order to pursue an import substitution strategy of food crop productio In our ju are a maj food crop effective Furthermc establis} at the fa Path, ef: | duce the Should e 1 Systems be estak level. path, at innoVat: \ biOChem production the cost of producing food should be reduced. In our judgment the introduction of biochemical innovations are a major source of increased productivity of domestic food crops. The West Indies should establish relevant and effective indigenous research systems that will generate biochemical innovations which can be substituted for land. Furthermore, effective institutions and channels should be established for developing and diffusing these innovations at the farm level. At subsequent stages along the time path, efforts should be made in the direction of pig: mechanical innovations. Strategy 2: Export Agriculture.——In order to re— duce the cost of producing export crops, the West Indies should establish relevant and effective indigenous research systems that will generate a significant number of p19— mechanical innovations. Institutions and channels must be established for diffusing these innovations at the farm level. At subsequent stages along the innovation time path, attention should be directed towards bio-chemical innovations. 16See footnote 12 of Chapter V for definition of biochemical and biomechanical innovations. servation constrair current 1 tance of Even if t domestic a signif aqricult viable u creased Constrai domestic basis 01 poor qua the ear: Indian With re ated by \ and lar III re\ growth Our rationale for Strategy 1 stems from our ob— servation that West Indian domestic agriculture faces a constraint at the limit with reSpect to land; given the current land tenure and land use patterns, and the impor— tance of export agriculture to the regional economy.17 Even if there is a reallocation of land from export to domestic agriculture, the region necessarily has to retain a significant proportion of its arable lands for export agriculture; particularly if eXpansion in exports is a viable undertaking due to expanded opportunities via in— creased competitiveness on the world market. Despite this constraint, biochemical technology has been limited in domestic agriculture and attempts to expand output on the basis of expansion of land have been unsuccessful due to poor quality land. We reviewed the Jamaican example in the early sections of Chapter V. Strategy 2 stems from our observation that West Indian export agriculture faces a constraint at the limit, with respect to labor; given the high wage demand gener— ated by organized labor and the policy of government to 17See Chapter II for discussion of the land use and land tenure pattern of the region. Chapters II and III review the contribution of export agriculture to growth. keep dowx the sugai straint rently. of commo to cushi maintain sequent agricult for expa dealing over the Search 1 SYstems that an and thi tiOned eration eratior abOVe c reSUlts and th. 287 keep down mechanization of the industry (particularly in the sugar industry). The pressure to remove this con— straint in the past has not been as great as it is cur— rently. Export agriculture has operated under a system of commodity agreements and preferences which have tended to cushion the impact of the constraint by artificially maintained prices tied to the costs of production. Sub— sequent sections of this chapter will examine export agricultural research and output, as well as the scope for expansion via research and development. Having specified a set of research strategies dealing with the subject—matter of agricultural research over the 1970's, the next step is to develop a set of re— search priorities dealing with specific commodity research systems. We should point out that it is at this point that an integrated approach to discussion of first, second, and third generation problems become meaningful. As men~ tioned in Chapter V, strategy implications for first gen— eration problems form the basis of second and third gen— eration problems. The subject—matter strategies presented above deal with first generation problems. However, the results of such strategies constitute the long—run second and third generation problems. It seems logical that the three typ system. Commodity Under Str l m sumption \ t l . . l . tYPeS of high prim in the ] to ex011 System Peasant mOney e type Of in the 288 three types of problems be considered as an integrated system. Commodity Research Systems Under Strategies 1 and 2 Domestic Agriculture Research Priorities Under Strategy l.——From our assessment of the demand and con— sumption characteristics of the West Indian economy, three types of agricultural research systems appear to warrant high priorities over the 1970's. These are: l. A livestock research system 2. A cereal research system (maize and rice) 3. A fruit and vegetable research system. In terms of the relative importance of root crops in the local production system and diets, it is unrealistic to exclude this group of commodities from the research system. Root crop production represents a major basis of peasant farmers' ability to participate actively in the money economy. From this point of view, we add a fourth type of domestic research system that demands high priority in the 1970's: research balance < ance of i that at ' the supp areas.18 importat for this distribt and incc a tender locate, tiofi of fiQUres per cap than in \ of the the 195 289 4. A root crop research system (sweet potatoes, yams, , cassava, and certain aroids). The potential payoff from a successful livestock research system goes beyond the long—run adjustment in the balance of payments. From our discussion of the perform— ance of the livestock sector in Chapter III, it is evident that at present levels of domestic livestock production the supply of animal protein is limited in the rural areas.18 This protein shortage exists despite significant importation of meat and dairy products. The explanation for this phenomenon is found in the inequitable income distribution between the urban and the rural areas. Wealth and income tend to be higher in urban areas where there is a tendency for the professional and skilled Workers to locate. Thus, despite a relative high level of importa- tion of livestock and livestock products, the import figures would tend to reflect relatively higher level of per capita effective demand in the urban centers rather than in the rural areas. 18See Chapter III, pp. llO—ll3 for a discussion of the trends in livestock production for the region over the 1958—1967 period. system ir structure to reduc< food pr0( resource scale ex ability forts su If Strat Stream c substitl Straint hOrizon Of an a“ meat pa atready industr in Jama \ induStI Tootsie Trinide t % Trinid 290 The development of a successful livestock research system in the West Indies under Strategy 1 along with structural changes in the socio—economic system Would tend to reduce the competition between livestock production and food production for human consumption. Under limited land resource base (as in the case of the West Indies), large scale eXpansion in livestock production reduces the avail— ability of land for food production; unless research ef— forts succeed in substituting nonland inputs for land. If Strategy 1 is effectively implemented, we visualize a stream of biochemical innovations that would effectively substitute for land, thus, lowering feed prices, a con— straint to livestock development. Over a longer planning horizon a viable livestock industry could form the basis of an agri—business complex through the development of a meat packing and processing industry. Some success has already been achieved along these lines in the broiler industry in Trinidad and Tobago, and to a lesser degree in Jamaica.19 However, there is significant potential 19For a review of the development of the broiler industry in Trinidad and Tobago, see, Ferrer, V. A. and Toolsie, D., ”Growth Problems in the Broiler Industry in Trinidad,” Proceedings of the First West Indian Agricul— tural Economics Conference, University of the West Indies, Trinidad, February 1966, pp. 318—326. still to from some from loce the rapi< time, a l l latter 5 cereal, SYStems the deve Would ft farming dOmesti( investmg Sector. EEEEESS the exp Operate This is exports relath giOnal 291 still to be realized from a meat—packing complex. Apart from some unfilled demand for quality livestock products from local residents, there is an untapped demand among the rapidly expanding tourist industry. At the present time, a significant proportion of demand coming from the latter sector is being met by special imports from abroad. The potential payoff from the development of cereal, vegetable (grain legumes), and root crop research systems also transcends the import replacement aspect of the development process. Under Strategy 1, such systems would function to increase the profitability of peasant farming to the point that returns to investment in domestic food production rise to a level that savings and investments are generated in the domestic agricultural sector. Export Agriculture Research Priorities Under Strategy 2.——Unlike the domestic agricultural sub—sector, the export agricultural sub—sector of the West Indies operates within highly structured and protected markets. This is even more true for the two major agricultural exports of the region——sugar and bananas. Because of the relative importance of these two commodities in the re— gional economy, we suggest that high priority be given to the f( the 1970 in terms facing t eration be anal tion 0 pages moditi Note t Change ture, 292 to the following research systems under Strategy 2 over the 1970‘s:20 1. A sugar cane research system 2. A banana research system The long—run impact of Strategy 2 must be assessed in terms of both changes in the external demand conditions facing these crops as well as other second and third gen- eration problems. Consequences of Strategies 1 and 2 for Second and Third Generation Problems Consequences of pursuing Strategies 1 and 2 will be analyzed as follows: 1. Examination of two probable directions in external demand for sugar and bananas over the 1970's, as Well as potential problems of resource 20See Chapter III for discussion of the contribu- tion of the eXport agriculture sector. See in particular pages 97—100 for relative contribution of the two com— modities to export agriculture over the 1955—1962 period. Note that the terms sector and sub—sector are used inter— changeably when referring to domestic or export agricul— ture. §l§2§§3£ w M tétihrr: to the in the Contim mehtS V 293 reallocation, unemployment, and inequalities in net worth between export and domestic agriculture. 2. Examination of likely effective demand constraints on domestic agriculture under Strategy 1 over the 1970's. 3. An integrated discussion of the likely unemploy— ment effects of pursuing Strategies 1 and 2 as well as of the nutritional impact on the economy. Potential Demand and Income Situation in Export Agriculture Over the 1970's Under Strategy 2: Some Considerations with Respect to Sugar and Bananas Two sets of assumptions are advanced with respect to the market conditions likely to face these commodities in the West Indies in the 1970's. Assumption l.-—Present preferential policies will continue or minor modifications of such policies will occur over the 1970's. A§§pmppi9p_g,—-Elimination of preferential arrange— ments within and outside the Commonwealth over the 1970‘s. l ditions l ation of under co would ha resource biomecha be to re currentl sugar p1 raw suga in prof: For eXa] are red tOH of abOut 2 wOuld t per tor dramat: Per t0] quireml \ iabgr 1964‘6 294 Long Run Impact of Strategy 2: Assumption 1 Con— ditions Prevailing in the Market Place.——Successful initi— ation of biomechanical innovation and machinery importation under conditions of preferential marketing arrangements would have major long—term impact on per capita incomes, resource allocation, and employment. One major effect of biomechanical innovation and machinery importation would be to reduce labor costs per unit of output, which is currently the single highest cost component of West Indian sugar production.21 Reduction of labor costs per ton of raw sugar produced would result in considerable increases in profitability and export earnings from sugar production. For example, in the Jamaican case, if labor requirements are reduced by one half over the 1970's, labor costs per ton of raw sugar would decline from about 48 percent to about 24 percent. Costs of harvesting and cultivation would be reduced from 31 percent of the total labor costs per ton of sugar to just over 15 percent. Even more dramatic, however, would be the reduction in man—hours per ton of sugar. A 50 percent reduction in labor re— quirement would mean that Jamaica could efficiently use 1See pages 251—252 of Chapter V for estimates of labor costs in sugar production in Jamaica over the 1964—65 period. approxim rather t labor re in the w would 96 At this teristic income v become ( \ I respect a major In esse bility tected margina point t cane p] Depend. 0f lan duCtio Cane, Sugar approximately 26 man-hours to produce a ton of sugar, rather than the current 53 man—hours. Such reduction in labor requirements would make the island more competitive in the world market. Increased profitability of sugar cane production would generate substantial increases in export earnings. At this stage it seems likely that two important charac— teristics would be evident: (a) regional per capita income would rise and (b) sugar cane production Would become competitive with domestic food production with reSpect to land. The second characteristic could present a major threat to long—run agricultural diversification. In essence, the potential conflict stems from the possi— bility that biomechanical innovation (under a highly pro— tected market and artificial prices) could increase the marginal value product (MVP) of sugar cane lands to the point that it is profitable to allocate lands to sugar cane production rather than to domestic food production. Depending on the magnitude of the disparity between MVP of land for sugar and MVP of land for domestic food pro— duction, there could be a reallocation of land to sugar cane, thus, reinforcing a mono-culture economy in the sugar producing islands. Similar arguments could be made with res difficul tion to the unce novatior in domes action j bility ( researc tables, c0mmitt greater is the expand mechanj market: \ to ac‘n tiOns in the more, deVelo 296 with respect to banana production.22 However, marketing difficulties now being encountered in the U.K. could func— tion to delay rapid expansion into this crop, as long as the uncertainty continues. The potential conflict between biomechanical in— novation in export agriculture and biochemical innovation in domestic agriculture underscores the need for vigorous action in the domestic research sphere. With the possi— bility of such a conflict vigorous and effective domestic research systems are needed in livestock, cereals, vege— tables, and root crops that will generate MVP's for land committed to these enterprises that will be equal to or greater than those for sugar and banana enterprises. This is the only way that the region can expect to retain and expand land resources into domestic food production. LppgrRun Impact of Strategy 2: Assumption 2 Con— ditions Prevailing in the Market Place.—-Successful bio— mechanical innovations coupled with a loss of preferential markets could seriously reduce regional per capita income 2 . . . 2While it is pQSSible for a mono—culture economy to achieve rapid rates of growth in GDP, under such condi— tions the uncertainty of growth and the general instability in the economy make such an economy unattractive. Further— more, such economies generally fail to transform and become developed. See Chapter II. in the § should b ence is quotas, actual i 1 argues t i be effec on impox ducers, market a net impl l their t if cons the Uni I the use mestic SumPtic Suited and a 7 free w< \ States EEQflpm 297 in the short run through loss of export earnings. It should be recognized, however, that if the loss of prefer— ence is the result of a global shift to world market quotas, the long—run effects over the 1970's could be an actual increase in export earnings from sugar. Horton argues that a worldwide free market trade in sugar could be effectively implemented through removal of restrictions on imports and the use of direct payments to domestic pro— ducers, thus, enabling them to sell sugar in the domestic market at the world price. He argues that if consumers in net importing countries could buy sugar at world prices, their total consumption would be substantially larger than if consumers are required to pay the support price, as in the United States.23 Estimates are that, at 1959 prices, the use of worldwide deficiency payments to protect do- mestic sugar growers would have increased world sugar con— sumption by 11 percent. The net increase would have re— sulted in a 30 percent increase in international trade, and a 70 percent increase in net free market trade. The free world price of sugar would have been 4.5 cents per 3Horton, D. C., "Policy Directions for the United States Sugar Program,” American Journal of Agricultural Economics, Vol. 52, No. 2, May 1970, p. 187. pound, r a net ex sugar pr ceipts i the higl produce< t ‘ Sugar p1 ‘ be sold an exte i eluded YSis as mated t creased eXporti Free t1 WOrid ruary tectic tr‘les: V01. ; 298 pound, rather than 3 cents per pound. The West Indies as a net exporter of sugar, with comparative advantage in sugar production, could actually have increased its re— ceipts from sugar production through increased sales and the higher world price. The West Indies has chronically produced sugar in excess of its negotiated market quotas. Sugar production in excess of the quota generally has to be sold on the world market at relatively low prices. In an extension of the Snape's analysis, Harry Johnson in— cluded the possibility of complete free trade in the anal— ysis as well as deficiency payment.24 His analysis esti- mated that in 1959, deficiency payments could have in— creased the export earnings of the less—developed sugar— exporting countries by one half billion (U.S.) dollars. Free trade in sugar would have increased the export earn- ings of the seven major world eXporting countries by three- fourths of a billion (U.S.) dollars. The short—run loss of export earnings from the loss of preferences in the case of the West Indies could 2 . . 4Snape, R. H., "Some Effects of Protection in the World Sugar Industry," Economica, Vol. 30, pp. 63—73, Feb— ruary 1963. And also see: Johnson, Harry G., "Sugar Pro— tectionism and the Export Earnings of Less Developed Coun— tries: Variations on a Theme by R. H. Snape,” Economica, Vol. 33, pp. 34—42, Feb., 1966. conceiva prices 0 mechanic machiner and worl of expat West In< variabl< technol gion's. the 105 allocat cation domestj The re; in the MVP 0f effici unable Sugar 299 conceivably be offset to some extent by somewhat higher prices on the world market over the longer run. If bio- mechanical innovations and reduced import restriction on machinery succeed in cutting production costs by one half, and world market prices increase significantly (by virtue of expanded demand through less protectionistic policies), West Indian sugar producers would be able to cover average variable costs of production. Under present levels of technology, world prices are significantly below the re— gion's average variable cost of production. As under Assumption 1, it seems reasonable that the loss of preferences would bring about significant re— allocation of land resources. We visualize some reallo- cation of lands from sugar cane and banana production into domestic food crop production when preferences are lost. The reallocation is likely to come about through disparity in the MVP of land in sugar and banana production and the MVP of land in domestic food production. Many of the in— efficient sugar plantations and small farmers who are unable to adopt biomechanical innovation would discontinue sugar cane and banana production. However, if such pro— ducers successfully shift to domestic food production, ing a m tection occur w substit be incr still f the reg demand demand and do, notOgi< 1970's eXpand tribut percen 300 Where MVP's are higher, a new and more desirable system of export and domestic enterprises could emerge. Potential Demand and Income Situation in Domestic Agriculture Over the 1970's Under Strategy 1: Some Considerations We do not visualize the demand component as impos— ing a major constraint on the level of domestic food pro— tection over the 1970's so long as technological advances occur with import substitution. However, after import substitution is completed, production and consumption can be increased by lowering cost of production and prices still further or by increasing effective demand. Although the region still faces a problem of a lack of effective demand for domestic food items, currently the effective demand that exists is being satisfied by imported food and domestic production. We feel that cost reducing tech— nological advances can reduce the demand constraint in the 1970's by increasing consumption of local foods and by expanding effective demand through increased income dis— tribution. The West Indies is currently importing about 40 percent of its food requirement. With an average income elastici aggregat over 3 p populati cent, re if glL( comes f fall dr food is This su seCtOr gerousl an incc cent a1 Would 1 Preven ested POint tural \ demanc d P g n 301 elasticity of demand of about .40 for food, the level of aggregate demand for food can be expected to increase by over 3 percent per annum if the annual rate of growth in pOpulation and per capita income are 2 percent and 3 per— cent, respectively.25 It should be noted, however, that if gll_of the annual rate of change in per capita income comes from expansion in food production, food prices will fall drastically when the income elasticity of demand for food is only .40. This could be disastrous for farmers. This suggests that simultaneous expansion in the non-food sector is required if food prices are not to sink to dan— gerously low levels. In the case of the West Indies, with an income elasticity of demand for food of .40, a 60 per— cent annual contribution to per capita income changes would have to come from non—food production in order to prevent food prices from falling. We are, however, inter— ested in ways of reducing domestic food prices. From this point of view, we are interested in programming agricul~ tural technology that would harmonize the relative 25Computations of the annual average growth in food demand is made by the equation d = p + gn Where: d = the average rate of growth in food demand = the average annual rate of growth in population = the rate of growth in per capita income = the income elasticity of demand for food. :5th0 contrib1 GDP, wii Such a l fall en demand ; demand above t rates c ' aggrege over 5 PrOduct 1963 h actual Tables \ eCOnom and fc l. mates pr0du 302 contribution of agricultural production to per capita GDP, with the relative contribution of the non—food sector. Such a harmonization would allow domestic food prices to fall enough to set up a series of dynamic adjustment in demand and consumption.26 Current estimates place the income elasticity of demand for meat, dairy products, and processed foods well above unity. With population and per capita income growth rates of the order of 2 and 3 percent, reSpectively, the aggregate demand for these food items is likely to be well over 5 percent per annum.27 In value terms, domestic food production has increased by about 1 percent per annum since 1963 in the case of Trinidad and Tobago, and output has actually declined in Jamaica over the period. (See Tables 7 and 8, Appendix B.) 26It should be remembered that there are two basic economic relationships between changes in per capita income and food prices: 1. If per capita GDP increases by 1 percent and the increase is generated from .4 and .6 increase in food and non—food, respectively, then food prices will remain constant. 2. If per capita GDP increases by 1 percent and the increase is generated solely by increased food pro— duction, then food prices will fall and the real change in GDP will be less than 1 percent. 7See footnote ll of this Chapter for 1969 esti— mates for income elasticities of demand for livestock products. The nl which technoli can bring abo the income el tively high, per capita in research stin output, farm in losses to fall under St of an innoval expanding 0111 conditions.21 decline in d, in largetma farmers OVer the region .1 \ 28 Rt of TechnolOC 0f - Farm ECor 11') the Jamaj 303 The next question deals with the mechanism by which technological innovation and relative price changes can bring about dynamic adjustments in demand. Although the income elasticity of demand for food might be rela— tively high, the price elasticity of demand is low when per capita income is constant. Thus, if agricultural research stimulates a 3 to 5 percent annual expansion in output, farm prices could decline in the 1970's resulting in losses to farmers. We expect domestic food prices to fall under Strategy 1 because it is difficult to conceive of an innovation that successfully lowers costs Without expanding output and lowering prices under free market conditions.28 We do not feel, however, that relative decline in domestic food prices will necessarily result in large-scale loss of income to West Indian peasant farmers over the 1970's. Within that period of time when the region is below the food self-sufficiency point, there is some potential for expanding farm income through 28 . Ruttan, Vernon W., ”Research on the Economics of Technological Change in American Agriculture," Journal of Farm Economics, Vol. XLII, No. 4, November, 1960, pp. 749—50. Also see Chapter IV, pp. 22—23, for changes in the retail price index for food, relative to ”all items" in the Jamaican case for 1963—1967. downward adjr imports. If domestic unit food items c2 farm income ( ticity of de1 unit costs a increased, 1; We could fin elasticities the fact the the refiluirec' Suggest that these items tutes for i, Elasticitie indeed larg demand fOr \ 29 C of that cha 30 C (REViSed E( pp~ 42154 . 304 downward adjustment in domestic food prices relative to imports. If technological innovation succeeds in reducing domestic unit costs of production to the point that local food items can undersell the major food imports, gross farm income could actually increase (if the price elas- ticity of demand is greater than unity). Furthermore, if unit costs are reduced substantially and farm receipts are increased, then even net farm income could be expanded. We could find no studies dealing With the relative price elasticities of demand for the major food items. However, the fact that estimates indicate that some 80 percent of the required food imports are "competitive imports" would suggest that the price elasticities of demand for many of these items are above unity.29 A wide range of substi— tutes for imports is indicative of relatively large cross— elasticities of demand. If the cross—elasticities are indeed large and positive then the price elasticities of . . 3 demand for such commodities Will be elastic. O 29See Chapter III, pp. 112—114. Also footnote 25 of that chapter. OSee Stigler, George J., The Theory of Price (Revised Edition), the MacMillan Company, New York, 1965, pp. 42—54. Our a about dynamic component. I will functiot tive demand 1 locally prodw elasticities elastic pric eXPahd. Sec cost—reducin 0f increasir income by it ture and the Stances the] Per capita e Fall can Provide thtments i sufficiency tary and fi intensive i PricES rem fiScal POlf 305 Our argument suggests two mechanisms for bringing about dynamic adjustments in the domestic effective demand component. First, cost—reducing technological innovations will function to redirect consumption, and whatever effec— tive demand that currently exists, from food imports to locally produced substitutes. With relatively high income elasticities of demand for many such products, and an elastic price demand, both gross and net from income will expand. Second, in addition to redirecting consumption, cost—reducing technological innovation holds the potential of increasing both the level and distribution of real income by increasing the return to investment in agricul— ture and the non—agricultural sectors. Under such circum- stances there could be an outward shift in the level of per capita effective demand. Falcon argues that adjustments in relative prices can provide powerful tools for bringing about dynamic ad— justments in demand and consumption, even after food self— sufficiency is attained. He argues that purposeful mone— tary and fiscal policies that are designed to be labor— intensive in nature can offset to some extent declining prices resulting from ”over production." Monetary and fiscal policies as well as pricing policies can be used to bring about E income distr: to shift the the right. in prices.31 our second m cost—reducin the adjustme period, The} M per capit rural and m ceed in bri: POSition of Pension in Mt Ohly fo This could 306 bring about adjustment in regional and sectoral per capita income distribution. The net effect of such policies is to shift the demand curve for the major "wage goods" to the right. Such a shift would help to counter the decline in prices.31 To some extent this mechanism is similar to our second mechanism discussed above, except that we see cost—reducing technology as being a major component of the adjustment process during the pre—self—sufficiency period. There is a serious imbalance in the distribution of per capita effective demand between and within both rural and urban peoples. If biochemical innovations suc— ceed in bringing about significant increases in the income position of rural people, there would be appreciable ex— pansion in per capita effective demand in the rural sector, not only for food, but for nonfood industrial inputs. This could pave the way for further expansion of the local manufacturing and processing industries. 31Falcon, Walter P., The Green Revolution: Gener— ations<1fProblems, Paper presented at the Summer Meeting of the American Agricultural Economics Association, Columbia, Missouri, August 9—12, 1970, pp. 19—20. The major wage goods (food) in the West Indies are staple food crops (cereals and root crops, livestock products, and Potential Che and NutritiOI Strategies l Desp by applying systems, it change will groups Of ir technologica rate, and t} adlust to t} levels.32 2 displaCemen- SuCh as the emploiment, be SUbstant deCline in lation, or by having t wage rateS \ 3% ical) is a abor is S 307 Potential Changes in Employment and Nutrition Situation Under Strategies 1 and 2 Despite the potential long—run gains to be realized by applying Strategies 1 and 2 to the agricultural research systems, it is unrealistic to assume that technological change will not result in relative loss to individuals or groups of individuals. At the farm level we know that technological innovation is never adapted at a uniform rate, and that there will always be individuals unable to adjust to the new technology and the new productivity levels.32 An adjustment problem may arise due to the labor displacement effects of technological change. In an area such as the West Indies with an already high rate of un— employment, due to union wage rates, this dimension could be substantial if measured in terms of (l) the absolute decline in the income of a particular segment of the pOpu— lation, or (2) the additional costs imposed on the society by having to provide for those unemployed due to union wage rates and those diSplaced by machinery in the presence of rigid wage rates. 32Generally, technology (particularly biomechan— ical) is applied at the farm level either when the farm labor is scarce or farm wages become prohibitive. We as in the agric1 competition 1 workers by 0j timism that control arti conditions 0 Will be used ital is avaj POSsible the Vances coulc agriculturaj 90Vernments 1e9iSlation in her Sopp rent major We high Wage r tant asPect West Ihdieg seCtor, We lnnovation 308 We assume that wage rates will continue to spiral in the agricultural sector over the 1970's. The vigorous competition now being waged for bargaining rights of sugar workers by Opposing labor organizations offers little op— timism that steps will be taken in the immediate future to control artificially high wages over this period. Under conditions of artificially high wage rates, less labor will be used in the sugar industry when labor saving cap— ital is available. With more flexible wage rates, it is possible that the long—run effect of biomechanical ad— vances could be an expansion in labor used in the export agricultural sector. We do not feel that West Indian governments will find it politically feasible to introduce legislation over the 1970's that will result in a decline in her supply price for sugar cane labor relative to cur— rent major export countries. We consider the unemployment costs of artificially high wage rates and technological change to be an impor— tant aspect of the future developmental potential of the West Indies. With reSpect to the agricultural export sector, We see the long—run application of biomechanical innovation as a means of cheaply replacing labor because of high wage cially high \ borne by the worker is re investment i to make such is measured Wage rate ar Thus, the lc greater the In 2 level of in‘ training, i Additional exploiting COunted as Itents are w of the incx ment Oppon Fr< \ 33 t0 inereas 309 of high wage rates.33 The unemployment cost of artifi- cially high wage rates and/pr technological progress is borne by the affected worker and the society until the worker is re—employed. Reduced wage rates or additional investment is required either by the worker or the society to make such a worker again employable. The cost involved is measured in terms of the earnings loss from the high wage rate and/or the introduction of the new technology. Thus, the longer the time span between employment, the greater the cost to society or the individual. In any event, the West Indies should increase the level of investment in human capital by education and re— training, if it is to cope with technological progress. Additional investment designed to increase earnings by exploiting new technical knowledge cannot legitimately be counted as a "cost" of technical change. If such invest— ments are wisely conceived, they should be paid off out of the increased earnings generated by increased invest— ment opportunities. From our review of the current productivity levels Of domestic and export agriculture in the West Indies, we 33 . . . See Chapter VII for discus310n of the alternative to increased efficiency of the sugar industry. feel that in ical progres: would tend ti employment. culture, we a higher lev but within t three mechar chemical inr 0f employmex tion would ; ditional" a, that sector Product (MV With the in levels of t labor Withi SeetOr is a existing ir tivity of 3 310 feel that in the longer run vigorous pursuit of technolog- ical progress along lines advanced in Strategies 1 and 2 would tend to increase employment rather than cause un— employment. With respect to Strategy 1 for domestic agri— culture, we feel that increased productivity can generate a higher level of employment not only within that sector, but within the economy as a whole. We visualize at least three mechanisms by which machinery importation and bio— chemical innovations can generate an expansion in the level of employment. First, cost—reducing technological innova— tion would increase the return to investment in the ”tra— ditional“ agricultural sector. Rising profitability in that sector would tend to increase the marginal value product (MVP) agricultural labor to a level more in line with the industrial MVP and labor supply price. At current levels of technology the low marginal value product of labor within the traditional sector relative to the modern sector is a major factor in the level of unemployment existing in the region.34 If the marginal value produc— tivity of labor and, hence, wages in the agricultural 34For a discussion of W. A. Lewis' argument on the relationship of agriculture's ”supply price" and its im— pact on unemployment in the West Indies, see Chapter II, pp. 70—71. sector can b “reasonable" tor's wage l attracted tc unemployment Secc ated under § time that c: possible to (b) tend to Well as har Value produ are increas cussed abox increaSe, 1 tially by ( \ 311 sector can be increased to a point that appears more "reasonable” to the worker, relative to the modern sec— tor's wage levels, then labor will be employed in and attracted to the domestic agricultural sector to reduce unemployment.35 Second, bio—chemical innovations that are gener— ated under Strategy 1 would: (a) reduce the period of time that crops come to maturity. This would make it possible to produce at least two crops in any single year, (b) tend to increase the demand for labor to produce as well as harvest the additional output. If the marginal value productivity of labor and agricultural wage rates are increased (as discussed in the first mechanism dis— cussed above), then the level of employment would not only increase, but labor seasonality will be reduced substan— tially by double cropping. Agriculture would be able to 36 . offer much more permanent employment. Farm income Would 351bid. 36Our review of West Indian food crOps indicates that there are very few local food crOps capable of pro— ducing more than one crOp per year. For example, the crOps reviewed in Table 5.8 (i.e. Tannia, Dasheen, and Eddoes) produced on the average one crop per year in Trinidad and Tobago. The maximum number of crOps produced in any single year for local sweet potato varieties was 1.25 crOps. Cassava and yams varieties produced only one be less vari ducing power The applies to l in the abser restriction in the prod Ployment an His argumen effect of s upwards.37 which in ti income, p, in excess ( that technl rapid or t. \. CI‘Op per Y local corh 37 efficienq “Count \n of ahhuitj Capita1~as Ptlce," 5 W mac 12) ' . 312 be less variable as well as greater, and off—farm pro— ducing power would be increased. The third mechanism is related to the first, but applies to both Strategies 1 and 2. Kendrick argues that in the absence of restraints from rigid wages, import restriction, etc., the "appropriate" technology applied in the production process would generate additional em- ployment and income, rather than to create unemployment. His argument is that such technology would have a net effect of shifting the marginal efficiency of capital upwards.37 Such an upward shift stimulates new investment which in turn would generate additional employment and income. From this argument, it follows that unemployment in excess of normal frictional proportions would suggest that technological progress is too slow rather than too rapid or that the cause is in rigid wage rates, import crop per year. Similar situation applies to unimproved local corn varieties. 37 . . . . In the KeyneSian conceptualization, the marginal efficiency of capital is defined as ". . . that rate of discount which would make the present value of the series of annuities given by the returns expected from the capital—asset during its life, just equal to its supply price.” See: Keynes, J. M., The General Theory of Em— plpyment Interest and Money. Macmillan and Company (Paper— mac 12), London, l964, p. 135. restrictions in the Unite average proc' tended to be slower.38 Real unemploymenl cent politi. urgency of unemploymen already see tribution c has made re generation. long‘run St run POliciE te’traih the impaCt of l \ 38‘ Technologi o. 5’ Dec 39 contribut.l restrictions, etc. Empirical evidence for this argument in the United States shows that during periods of above— average productivity changes, the unemployment rates have tended to be lower than when productivity changes are slower.38 Realism suggests that account must be taken of unemployment in connection with Strategies 1 and 2. Re— cent political upheavals in the islands underscores the urgency of coming to grips with the chronic high level of unemployment and underemployment in the 1970's. We have already seen that, despite impressive growth in the con— tribution of the manufacturing sector to GDP, this sector has made relatively little contribution to employment generation.39 In the process of planning and implementing long—run strategies for technological innovations, short— run policies must be implemented to provide employment and retrain the labor force for gainful employment when the impact of the new technology begins to be felt. Along with 38Kendrick, John W., ”The Gains and Losses from Technological Change,” Journal of Farm Economics, Vol. 46, No. 5, December 1964, p. 1067. 39 . . . See Chapter III for discuSSion of the relative contribution of the agricultural and manufacturing sectors to employment generation. l ‘ l l l the impact 0 West Indian to its wage pansion in ' the disrupti Properly pla provide vita 0f the agril PrOgrams co- thereby pro Wise isolat foster entr as ihlectin roads are t Fir long—run in diet in the agricuytUri of lOCe1 a other Coun- Of Plant p range pOpu “tented in the impact of high wage rates and/Or import restrictions, West Indian government should give serious consideration to its wage rate and machinery import policies and to ex— pansion in ”public works" projects as a means of reducing the disruptive effects of technological progress. If properly planned and executed, such an investment could provide vital infrastructure for the increased productivity of the agricultural sector. For example, public works programs could be implemented in the area of road building, thereby providing access to urban markets for the other— wise isolated areas. Such transportation network would foster entry into the money economy by peasants, as well as injecting capital into the isolated areas while the roads are being built. Finally, it is necessary to take into account the long—run impact of technological progress on nutrition and diet in the region. We feel that there is no reason why agricultural research cannot improve the protein content of local food crops, as in the case of corn in Mexico and other countries. This would make available cheap sources of plant protein for the bulk of the population. If long— range population control programs are effectively imple— mented in conjunction with increased nutrition, the development linkages wor of the econc bility of i1 than growth Thi Which dealt the West In a“ ihtegrat and third c_ Criteria up Can be has search Str; Emblectqha. exPort egr Fi t0 Stand 0 develOpment process will have firmer basis in the region, linkages would be established between the various sectors of the economy, and the region would increase the proba— bility of its future "development" and ”growth" rather than growth alone. Summary This chapter represents an extension of Chapter V which dealt with first generation agricultural problems in the West Indies. The chapter sought to: (l) examine in an integrated manner (a) the relationships between second and third generation agricultural problems and (b) feasible criteria upon which agricultural priorities and strategies can be based in the 1970's and, (2) develop a set of re— search strategies and priorities dealing with research subject—matter and types of systems for both domestic and export agriculture. Five second and third generation problems appear to stand out in the West Indies: 1. Lack of per capita and aggregate effective demand for expanded food production. 2. Inc: 3. Unec sec1 4. Art for lan con for 5. The amc eXl As ShOWS that of its foo been risin food impor GDP‘ Best in the reg to questi( attribute, til/e dema‘ 316 2. Increased levels of structural unemployment. 3. Unequal distribution of net worth among and Within sectors of the economy. 4. Artificially high Commonwealth preferential prices for export crops are already malallocating scarce land away from food crops to export crops. Under conditions of increased efficiency of production for export crops, this problem would be aggravated. 5. The possibility of inadequate diets and nutrition among certain segments of the society deSpite expansion in food output. Assessment of the West Indian demand structure shows that the region currently imports about 40 percent of its food requirements. Per capita food imports have been rising rapidly since the 1950‘s. At 1964 prices, food imports amounted to almost 10 percent of the region's GDP. Despite the observed increases in per capita income in the region over the 1950's and 1960's, we found reasons to question whether the rapid rise in food imports was attributed to appreciable expansion in per capita effec— tive demand. Undoubtedly, some expansion in per capita effective de supply respc such expansi sorb the re] deSpite some mand remain: production. rising impo imports rep t majOr Chang 0f changes as against Sent a move I taih food j for Web it effectiVe , as a WhOIe haVe been commoditie Th last decad major eXpa Whole ‘ GI 317 effective demand did occur, but the fact that agricultural supply reSponse was unchanged or negative suggests that such expansion in effective demand was not enough to ab— sorb the relatively high domestic food prices. Thus, despite some expansion in income, domestic effective de— mand remains low, relative to the cost of domestic food production. One plausible explanation of the rapidly rising import propensity for food is that expanded food imports represent an expansion in consumption (rather than major changes in per capita effective demand), as a result of changes in the relative prices of domestic food items as against imports. As such, expanded food imports repre— sent a movement along Specific demand schedules for cer— tain food items, and not a shift in the demand schedule for such items arising from major expansion in per capita effective demand. This argument applies to the West Indies as a whole. In the case of Specific islands, there might have been some shifts in demand schedules for particular commodities. The characteristic of the growth structure of the last decade also leads us to question the existence of major expansion in effective demand in the region as a whole. Growth has been generated by the enclave sectors of the econc and manufact stituted for the increas< concentrate the labor f gone to the tional sect shared litt For these p Big to be high] Indies, Gé Other than Some islanl land Value However, i agriCUltur hearing la generally Ol CIOp reSpc 318 of the economy. Wages have risen rapidly in the mining and manufacturing sectors but rising wages have been sub— stituted for employing additional labor. In other words, the increased income generated by these sectors have been concentrated in the hands of a relatively few members of the labor force. In most cases the additional income has gone to the skilled and professional workers. The tradi— tional sectors with the bulk of the labor force have shared little in the income generated in these sectors. For these people, per capita effective demand remains low. High domestic cost of production does not appear to be highly related to high land values in the West Indies. Generally, the opportunity costs of land for other than agricultural pursuits tends to be low. In some islands there has been some observed increase in land values as a result of discovery of mineral resources. However, in such cases, there has been limited impact on agricultural land prices, since, in general, mineral— bearing lands occupy restricted geological areas and are generally not suited for agriculture. Observation of domestic and export agriculture crop response curves in Chapter V leads us to advance two key strateg. agricultura Str the generat substitute of biomecha importatior labor costs is establi: Strategy 1 considerat to the £01 1970's; to theSe 319 key strategies with respect to the subject—matter of agricultural research over the 1970's. Strategy 1 for domestic agriculture is based on the generation of biochemical innovations which would substitute for land. Strategy 2 focuses on generation of biomechanical innovations and relaxation of machinery importation in export agriculture which would reduce high labor costs. Under both strategies a set of priorities is established for specific crop research systems. Under Strategy 1, import replacement, income, and employment considerations lead us to suggest that priorities be given to the following complementary research systems over the 1970's: 1. A livestock research system 2. A cereal research system (Maize and Rice) 3. A fruit and vegetable research system 4. A root crOp research system (sweet potatoes, yams, cassava and the aroids) Under Strategy 2, the relative importance of sugar cane and bananas as export earners lead us to give priority to these two systems over the 1970's. We 1 tion proble two strateg constraints levels of e in the 197C reduce fooc means of he biochemical Ports to l< Prices of 1 imports. \ mand for ti bOth grOSs reducing t by placing Segment of geherate l3 distribute emohg rura Come elast essential per Capita 320 We assessed the potential second and third genera- tion problems likely to result from implementation of the two strategies. With reSpect to potential effective demand constraints under Strategy 1, we argue that relatively low levels of effective demand will not be a major constraint in the 1970's, as long as Strategy 1 can substantially reduce food imports. Two mechanisms are presented as a means of handling the demand component: (1) Cost—reducing biochemical innovations can redirect consumption from im— ports to locally produced substitutes by reducing unit prices of the substitutes to competitive levels with the imports. With relatively high income elasticities of de— mand for the major imports and an elastic price demand, both gross and net farm income could expand; (2) cost— reducing technology can expand per capita effective demand by placing productive resources in the hands of a large segment of the pOpulation. Productive resources that generate profitable returns on investment and are widely distributed can increase the level of per capita demand among rural people. We noted, however, that with an in— come elasticity of .40 per food in the region, it is essential that some 60 percent of the annual increase in per capita income be generated by the non—food sector or covered by 1 to dangerou: after impor' tion and co costs of pr effective d Twc the likely under Strat mm m In with more imPort res PrOductior (hast-ical] SincE the Despite e: cation CO 321 covered by non—food imports if farm prices are not to fall to dangerously low levels. We further argued that even after import substitution is completed that food produc— tion and consumption be increased even further by lowering costs of production and prices further or by increasing effective demand. Two sets of assumptions are made with respect to the likely demand condition facing export agriculture under Strategy 2 over the 1970's. Assumption 1: Present preferential policies will continue or undergo minor changes. Assumption 2: Elimination of preferential arrangements within and outside the Commonwealth. Initiation of Strategy 2 under Assumption 1 along with more flexible wage rates and relaxation of machine import restriction would reduce labor costs in sugar cane production to a major degree. Man—hours would be cut drastically. However, export earnings would be increased, since the return on investment over costs would be greater. Despite expanded export earnings, agricultural diversifi— cation could be curtailed if ”artificial” preferential prices resu land betwee conditions sugar produ Similar sit ing areas. must genera tion equal In: ditions, W1 the m to a shift over the 1 earnings 0 ing that t free trade for cane 5 Well as tl SUgar pro< sell On t] might be ; CrOps. T' 322 prices result in significant divergence in the MVP's of land between export crops and domestic crops. Under such conditions additional lands would tend to be allocated to sugar production at the expense of domestic agriculture. Similar situations would apply to the major banana produc— ing areas. To prevent major land reallocation, Strategy 1 must generate MVP's for land used in domestic food produc— tion equal to or greater than those of export crops. Initiation of Strategy 2, under Assumption 2 con- ditions, would result in a decrease in eXport earnings in the short run. However, if the loss in preference is due to a shift to global market quotas, the long—run effects over the 1970's could be an actual increase in the export earnings of sugar. We present evidence from studies show— ing that the shift to worldwide deficiency payments and free trade would increase the world consumption and demand for cane sugar. This could increase the world price, as well as the quantity of sugar that the West Indies (as a sugar producing area with comparative advantage) could sell on the world market. Under these conditions there might be reallocation of lands between sugar and domestic crops. The inefficient sugar producers would be driven out of business and their lands could be taken up by the more effici allocation MVP's of su crops. The not be ignc of unemploy vation and in export a trade-off ] With Short‘ of the indl that the W. and retrai SUlt in sh run, we Se level of e Creased pr ture and h more in 1i the margir profitabi] expanding 323 more efficient producers. However, the extent of the re— allocation would depend on the divergence between the MVP's of sugar cane lands and lands for specific food crops. The employment effects of Strategies 1 and 2 can— not be ignored. The region already possesses a high level of unemployment. It is evident that biomechanical inno- vation and machinery importation may reduce the labor force in export agriculture, particularly. There is however a trade—off between a more efficient and viable industry with short—run labor displacement, and the complete loss of the industry and foreign exchange earnings. We suggest that the West Indian governments consider ”public works” and retraining programs in case technical advances do re— sult in short run displacement of labor. In the longer run, we see Strategies 1 and 2 as actually increasing the level of employment. This could come about via: (1) in— creased profitability of investment in domestic agricul— ture and hence increase in its supply price to a point more in line with non—agriculture, (2) upward shift in the marginal efficiency of capital resulting in expanded profitability of investment in the non-food sector, thereby eXpanding employment and income, (3) reduction in the time that crop c Additional number of < output. Wit argue that tein contex cost prote; PeOPle. R‘ in this di; 324 that crop comes to maturity as well as increased yields. Additional labor would be needed to handle the greater number of crops per year, as well as the additional output. With reSpect to human nutrition and diets, we argue that biochemical innovations can increase the pro— tein content of local food crops. This would make low cost protein available to a large percent of the rural people. Research work has already produced some success in this direction in maize production. Th: those Orga: regional r bottleneck and priori ‘ an adminis bOttleneck lf‘\ We major bot‘ reseArch CHAPTER VII TOWARDS A PROGRAM FOR IMPROVING THE ORGANIZATION AND ADMINISTRATION OF WEST INDIAN AGRICULTURAL RESEARCH IN THE 1970's This chapter has two objectives: (1) to identify those organizational and administrative aSpects of the regional research system that represent potential major bottlenecks to implementation of the research strategies and priorities developed in Chapter VI, and (2) to develop an administrative program designed to remove the major bottlenecks. Current Bottlenecks in West Indian Research Organization and Administration We consider the following characteristics to be major bottlenecks to the implementation of appropriate research strategies in the West Indies: 325 Hic l. Thi the res pr: ef: in de CI fa 326 Highly diffused agricultural research activities.—— This characteristic can be partially attributed to the generally slow pace at which policymakers and research planners (a) establish relevant research priorities, and (b) carry through concentrated efforts to provide a ”critical minimum effort” for research on food crops. Diffused research has not generated high pay—off and profitable technology in food crops. Moreover, we find very little evi— dence that research institutions have provided food crOp technology superior to that of better peasant farmers, who operate with traditional technology. An imbalance in research activities betWeen adap— tive and fundamental research.——The latter is limited. Relevant fundamental research in progress is mainly confined to export crops despite evidence that there are significant benefits to be derived from a more "balanced” mix of fundamental and adap— tive research. The present imbalance appears to relate to: (a) general lack of recognition among domestic research organizations of the crucial role that fundamental research has played in forming the COI 327 solid research basis from which many export re- search efforts were launched. This is even more true for research carried out on sugar cane and bananas,1 and (b) a widespread feeling among pub— licly sponsored domestic research organizations that fundamental research should be exclusively confined to the University of the West Indies. 3. An inadequate university research system.——Public policy of general reliance on the university for solutions to fundamental—adaptive problems fails to take into account that under the present staff— ing, financing, and organization, the university is ill—equipped to provide this type of service to the widely diverse local problems of the region. 1An example of this characteristic is the fact that export agricultural research organizations indicated that they have been able to concentrate on adaptive re— search because substantial proportions of fundamental re— search findings were obtained from outside the area. This characteristic has been confirmed for sugar cane and bananas by studies carried out by Evenson, Houck and Ruttan. See Evenson, R. E., Houck, J. P., and Ruttan, V. W., Technical Change and Agricultural Trade: Three Examples (Sugar Cane, Bananas and Rice), Staff Paper P 68—4, Department of Agricultural Economics, University of Minnesota, December 1968, pp. 1—41. p_L wi th CO as i , pc se di dc "Subject~ term IIre moditieS 328 4. A strong tendency among agencies responsible for research planning to discount the contribution of economists and other social scientists to the planning process.——This attitude has resulted in widespread tendency to plan research systems on the basis of technical relationships, without due consideration to the economic aspect. Domestic agricultural research planning appears to have failed to recognize differences in the demand com— ponent. Furthermore, domestic agricultural re- search planning appears not to recognize (a) the differences in demand structure between export and domestic agriculture, and (b) the relationship of the demand structure to research ”form." Under the existing preferential arrangement for the major agricultural exports, the opportunity costs of not undertaking maintenance research are less than the opportunity costs for domestic agricul— ture.2 Constant or falling per unit productivity of the major exports has been made less painful by 2We use the term "form" interchangeably with "subject—matter” of research. On the other hand, the term ”research systems” is applied to the specific com— modities being researched. th< GX‘ in ri th pr 0 \ 3 reSEarch . 329 the system of artificial prices surrounding these commodities. Under the demand conditions facing export agriculture, the need for maintenance re— search has been far less than for domestic crOps.3 A concrete example of this situation is the sugar industry in the West Indies. In periods of rapidly rising unit costs of production and constant yields, the industry has tended to negotiate for higher prices and greater protection, rather than to im— plement cost—reducing technology. On the other hand, as domestic food production and yields have fallen, internal food prices have risen rapidly.4 5. Ineffective use of scarce research talent.——Gen- erally, public research organizations have not recognized the importance of separating the role of the researcher from that of the administrator or extension personnel. Our study shows that a 3See Chapter 1, p. 5, for discussion of maintenance research within the context of the international transfer of technology. Also see, Evenson, Robert E., The Contri— bution of Agricultural Research and Extension to Agricul- tural Production, Unpublished Ph.D. dissertation, Univer— sity of Chicago, 1968. 4See Chapter IV, pp. 147—150 for discussion of the movements in the Retail Price Index for food in the Ja— maican case. CC p1 Fe d: b \ 5 distribut reseal‘ch 6 330 significant proportion of the scarce public scien— tific manpower in the region is being utilized in duties other than directly productive research. Given the drastic shortage of tOp level research personnel, this aspect of the research structure . . . 5 imposes a major constraint on research output. 6. Failure of West Indian research administrators and planners to recognize the link between consumers' tastes and preferences and effective demand for locally produced food stuff.6——Satisfaction demand components would expand consumption and Open up production Opportunities for domestic farmers. Failure to recognize these links has resulted in a general failure of the research system to make dynamic adjustments in its structure. This failure could in part be due to the non—involvement of economists in the planning and implementation of research activities. In other instances, it could be due to the preoccupation of planners with 5See Chapter IV, pp. 167—170 for discussion of the distribution of research manpower in terms of productive research efforts. 6 See Chapter IV, pp. 152-153. mi< so c0] tr. Ja] pr se su 1 In Lt dc tl at ac t m d( o d 7 331 micro—studies at the expense of macro—problem solution. The rewards for being sensitive to consumers' tastes and preferences can be illus— trated in the case of Pioneer Corn Company of Jamaica. This company saw the opportunity for profitable investment in maize research by ob— serving the high level of imported cereal con- sumption. The profitability of this venture has already been reviewed.7 Inadeguate financing of agricultural research in the West Indies.——This is especially true for domestic research activities. Our estimates show that in 1968 the region was spending on research at a rate of about 1.6 percent of the value of its agricultural output. However, the greater propor— tion of research expenditure went into export agri— culture. Given the relatively low base from which domestic research is to start and the complexity of large number of crops to be researched, expen— ditures must be greatly increased in this area. 7 See Chapters IV and V. Mil 8. ( ti le‘ re e r un re is V( 8. 332 Minimal inter—territorial and inter-organizational research cooperation and coordination.——Duplica— tion of research activities is widespread. The level of research sophistication is functionally related to the level of develOpment of the islands. Since regional cooperation is minimal in domestic research efforts, there is a tendency to have underutilization, or excess capacity, of certain research facilities in some islands, while facil— ities are nonexistent or inadequate in other islands. A classic example of this underutiliza— tion of facilities can be illustrated by livestock research in the region. Jamaica has an excellent livestock research program, while most of the other islands have limited facilities in this area. Very little attempts have been made by regional public research organizations or the university to develop lines of research cooperation and co— ordination that would effectively utilize the Jamaican facilities for both training and research purposes. E 9. Se be cr st 9. Isolation of export and domestic agricultural re— search activities.——Few joint undertakings have been attempted to develop and commercialize new crops to replace the traditional exports or to stand on their own merits. 10. Generally poor working conditions and economic . incentives among West Indian research organiza— tions.——This is even more true of domestic re— search organizations. Although the gegd for com- petent scientists is large, the region is a net exporter of top level scientific manpOWer. This phenomenon is related to: (a) the fact that under current research philosophy the demand tends to be low for highly trained scientists who are oriented towards fundamental research and (b) salaries and benefits of agricultural scientists lag substan— tially behind the other professions. Substantial reorganization is needed both in research emphasis and in the economic incentives necessary to retain top level researchers. ll. Inadequate fellowships and scholarships provided by regional research organizations for agricultural Th tu ua de re IE 0! l 1 pi 334 graduates at the University of the West Indies.—— The output of the University's faculty of agricul— ture is small in terms of the need for its grad— uates. The Report of the Baskett Commission of Inquiry in the Faculty of Agriculture of the Uni— versity of the West Indies pointed out that inade- quate undergraduate enrollment is a major factor in the relatively high cost of training per stu- dent, and creates an unsatisfactory staff—to—student ratio. The Report pointed out that staff-to—student ratio in the Faculty of Agriculture was 1 to 6.5 over the 1965-66 period. Cost per student over the 1965-66 period was estimated to be L 1089 as com— pared with ; 1053 in the U.K. universities in 1963.8 12. Failure of research planners to recognize that new, relevant agricultural technology can be an effec— tive substitute for the scarce land inputs that impose a major constraint to increase productivity. 8Baskett, R. G. (Chairman), Report of the Mission to Advise the University of the West Indies on the Work of the School of Agriculture of the University of the West lflélgg, October 1965, pp. 14—29. Bel the existir research, : framework , West India Co wi 335 Improving the Regional Organization and Management of Agricultural Research Before proceeding to specific programs for removing the existing administrative bottlenecks to subject—matter research, it is necessary to state explicitly our overall framework, philosophy, and rationale in dealing with the West Indian research structure. These are: l. A meaningful agricultural research program for the Commonwealth West Indies must necessarily be framed within a regional context in which the national systems form the links to the needs of farmers.9 2. National research systems are advantageously viewed as specialized extensions of the regional research system to the extent that such national systems must play a role quite similar to that of the state and provincial experiment stations in the United States and Japan. 3. Given the unique structure of West Indian economy and its agriculture, the regional research system 9See footnote 6 of Chapter 1 for definition of national, regional, and international programming. Also See Chapter V, footnote 4. he 8 O is based Admittedl in other Exist .10 \ ] limitatic search p: 336 appears to represent the only feasible means for mounting relevant agricultural research for cer— tain territories, i.e., the regional research system must be so structured that it is Egg na- tional research system for those territories that are unable to develop viable indigenous systems. In other instances, the regional system will be supplementary to those indigenous systems that have developed their own fairly s0phisticated re— search programs. 4. National and regional research systems need not be competitive in nature, if clear lines of ac— tivities are defined and manpower and financial resources are allocated and coordinated in the various levels of government and organizations. Our argument for a regional administrative program is based on a set of factors that are unique to the region. Admittedly, such an approach might warrant serious doubts in other areas of the world where these factors do not exist.10 Some of these factors are: 10For example, Eicher argues that there are major limitations to the regional approach to agricultural re— search planning in Tropical Africa, largely because of the _..4. pC re t \\ POlitiCS .K_’ g T r0 ical 337 l. The West Indies already possess the basic regional political structure for mounting a more ambitious regional research program. The Regional Research Center of the University of the West Indies, Fac— ulty of Agriculture, has been institutionalized into the regional governmental structure. The governments of the various islands have agreed that a regional university should be the basis of providing university—level agriculture and basic research training for the region. The regional approach to higher agricultural education and re— search has been further strengthened by the un— willingness of the major international foundations and agencies to grant funds for agricultural and institutional building that are not regional in scope. The recent grants made by the Ford and Rockefeller Foundations to the Faculty of Agricul— ture are examples of the general leaning towards politics of getting regional cooperation. See, Eicher, C. K., Regional Programming for Rural Development in Tropical Africa: Implications for AID, pp, cit., pp. 9—12. re de UT re ai \ 1 regional that unde Of AgriCI e aPpoj WOuld ho] AgricultL is majoI Work for search p] ISSearCh housed i] e semi, that isl; 338 regional programming of agricultural research and development.1 2. At the recent meeting of the representatives of the various governments supporting the regional university, a recommitment to the concept of a regional university was affirmed, rather than to aim at development of national universities. Furthermore, some planners appear to have grasped the potential benefits to be derived from the association of agricultural research activities with an academic environment. Moseman argues strongly that this association has been a major factor in the agricultural development of the United States and in the successes of the Rocke— feller and Ford Foundations research activities 11The importance that the foundations attach to regional programming is further illustrated by the fact that under the recent Ford Foundation grant to the Faculty specific funds were earmarked for of Agriculture of UWI, The Coordinator the appointment of a Research Coordinator. would hold senior faculty appointment in the Faculty of Agriculture in Trinidad, but would be located in Jamaica. His major function would be to coordinate the research work for the Faculty of Agriculture with governmental re— search programs, as well as to liaison with non—governmental research organizations. The Research Coordinator is now housed in permanent buildings on the Jamaican campus and is the senior member of the agricultural faculty located in that island. it In: \ agriCult Velo in; 339 in Mexico and the Phillipines. Action has already been taken to Operationalize the comple- mentarity of the research and the academic en— vironments as well as the true regionalization of the university. The University of the West Indies is now located on three campuses 10cated at strategic geographical areas in the region (Jamaica, Barbados, and Trinidad). Each campus is served by the Regional Research Center through the location of permanent and itinerant agricul- tural research personnel on these islands. Re— search facilities in the three islands are usually shared with various territorial government agri— cultural research units. In islands that do not have a campus, agricultural research work of the Regional Research Center is conducted by the Center's locally stationed junior technicians under the direction of senior government researchers, and by visits from the regional research leader. 12See Moseman's assessment of the requisites of agricultural research institution building. Moseman, A. H., Building Agricultural Research Systems in the De— velOping Nations, Agricultural Development Council, Inc., New York, 1969. SLEM 1% 51% mOVing r \ in 1969. the Unit COMOnM 340 3. Although there are some ecological differences among the region, there are enough similarities in cropping patterns, enterprises, and problems to make the regional approach feasible in terms of achieving economies of scale in tackling the problem areas. The formation of the Caribbean Free Trade Associa— tion is also indicative of the desire to follow the regional approach to development. The recent formation of a Regional Development Bank headed by Prof. W. Arthur Lewis points to the vigorous efforts in regional integration. Presumably, the Regional Bank will be able to differentiate and respond to the capital needs of individual terri- tories as well as the region as a whole. Steps in Improving the Administration of Agricultural Research In discussing administrative strategies for re— moving research bottlenecks, no attempt will be made to 13The Regional Development Bank came into existence The Bank is so designed to include membership of in 1969. Canada, the United Kingdom, and the the United States, Commonwealth Caribbean countries. develop 5] given abO' there is . tarity be administr focus on: CUSsed u Export 3 Aw Do E~m§§il£ % tiVe COr 341 develop specific strategies for each of the bottlenecks given above. Our rationale for this approach is that there is a high degree of interdependence and complemen— tarity between the strategies advanced for dealing with administrative constraints. Discussion will therefore focus on: strategies for dealing with the domestic—export 1. research mix. 2. strategies for dealing with the fundamental— adaptive research mix on a regional basis. 3. the problem of research cooperation and coordi— nation, financing, and manpower training. These three areas of concentration will be dis— cussed under two general strategy headings: (1) Domestic— Export Strategy and (2) Regional Strategy. Improving the Administration of Domestic—Export Research Programs On the basis of our findings regarding the rela- tive concentration of research activities on export as against do cial suppo ganizatior 1970's. C research 5 range of ( that expel Quite caps under Str suGar ind T respect t exPenditu participa Also impc creaSed i tional fc rEQOmmem fOUndath recommem hittee Cl IEpreSen‘ 342 against domestic research, we feel that public finan— cial support of the traditional export research or— ganizations should be far more discriminating over the 1970's. Given the generally high quality of their research staff, research facilities, and the narrow range of crops being worked on, all indications are that export agriculture research organizations are quite capable of financing the new lines of research under Strategy 2. This is especially true for the sugar industry. The situation is quite different, however, with respect to domestic research organizations. Public expenditures need to be expanded in this area. Greater participation from the private sector is also needed. Also important to domestic research activities is in— creased financial and personnel support from interna— tional foundations and organizations. We do not recommend across the board expansion of public and foundation funds in domestic research activities. We recommend the formation of a Regional Research Com— mittee consisting of representatives from organizations representing domestic, export, university and internatir of such a TeChnica Cehter ( COm-Hlitte SeCtor ( foundati membersh Jamalica, States a opment p C0coa A] POsed cc COuld be 343 . . . l4 . . international research agenCies. The primary function of such a committee would be: 1. To act as liaison among the organizations conduct- ing and supporting export and domestic research. Our study indicates that at the present time there is practically no formal communication or coopera— tion among these organizations. Even informal lines of communication are weak and ineffective for implementing concrete measures of cooperation and coordination. 2. To prepare periodic reviews of on—going and projected research, and to explore areas where cooperation and coordination would facilitate 14There is currently in existence a Regional Technical Committee which advises the Regional Research Center (UWI) concerning research programs. However, this committee does not include representatives from the export sector (with the exception of cocoa) or the international foundations supporting research in the region. Current membership includes the Chief Technical Officers from Jamaica, Trinidad and Tobago, Barbados, the Associated States and representatives of the British Overseas Devel— opment Ministry, Rothamstead and Reading (U.K.), U.W.I., Cocoa Alliance and MacDonald College (Canada). The pro— posed committee might be unnecessary if this Committee could be expanded to serve similar functions. 344 cost—reducing programs or efficient utilization of facilities. We have already indicated that deSpite the existence of poor research facilities in certain areas, there are actually underutilized facilities in others. This committee could iden— tify these areas and develop plans to plug these gaps. To seek out areas where crucial manpower needs are major constraints, and explore feasible basis for short—term and long-term exchange of research personnel. Under the present structure there is no formal basis for exchange of research personnel even within the region itself. We feel that there is need for improving on—the—job training for government and university personnel by developing an exchange program among the various island re— search organizations as well as with temperate and tropical zone countries. To seek areas where export research organizations can actively participate in field testing of new and improved domestic crops, as a basis of pansion c primaril3 activitie private : research feasible certain Potentia forming traditic with the new COHu SUCh st] initial‘ nels wh. cial ba ularly the thr 345 effective commercialization for either domestic or export markets. One note is in order concerning the possible ex- pansion of public funds into export agriculture. We are primarily concerned with public expenditure on research activities that have traditionally been underwritten by private foreign capital, as in the case of sugar cane research in the West Indies. It would seem economically feasible, however, to channel public investment into certain private organizations engaged in research on potential new, high-demand export crops, We suggest the forming of new ”corporate structures,” whereby certain traditional export organizations enter into partnership with the public sector by selling stocks and shares for new commercial enterprises aimed at the export market. Such structures could facilitate the expansion of research initially aimed at the domestic market by providing chan— nels whereby domestic crOps could be tested on a commer— cial basis for possible outlet on the external market. With respect to the traditional exports (partic— ularly sugar), we feel that a significant proportion of the thrust for technological innovation will come from within, v of the Co the case, munity. lation wi out the a sary for ernmental 3 . l x I 1 following mechaniz ready hil governme negative reSultin be the c EAQEE cc I that goy a tOp‘le i ing agrj t0 Undel 0f cert; demand 346 within, via the potential loss of the protective umbrella of the Commonwealth Commodity Agreement. This would be the case, if the U.K. enters the EurOpean Economic Com— munity. However, we feel that substantial enabling legis- lation will be needed before the export sector can carry out the appropriate shifts in research emphasis so neces- sary for reducing its cost structure. Under present gov— ernmental policies, the sugar industry is prevented from following certain lines of technical innovation (e.g. mechanization) because of the fear of increasing the al— ready high level of unemployment. We feel that such governmental policies could precipitate greater long—run negative effects on the economy than the displaced labor resulting from new biomechanical innovations. This could be the case if the alternative to such innovation is ppm— plete collapse of the industry. To this end, we suggest that government and private research organizations appoint a top—level research team of technical personnel, includ— ing agricultural economists and other social scientists, to undertake a pilot project dealing with the likely impact of certain innovations (particularly machinery), on the demand for labor. One of the basic reasons for suggesting research in this area is to fill the present void of informati and machi strongly utilizati This couI tablishe< are sync the labo: seasonal as reduc be major W Mining the regj 11p Ofa \ an inst: ) Center ( l I | \ istics A180, 8' of biom industrv 347 information relative to sequential timing of labor input and machine input in the production process. It is strongly felt that there is significant scope for the utilization of labor, even when mechanization is allowed. This could be the case if proper timing sequence is es— tablished, such that the inputs of labor and machinery are synchronized to even out the peaks and troughs in the labor supply. Such sychronization could reduce the seasonality of labor requirements in the industry as well as reduce extreme variations in money wages. These could . . . . . . 15 be major factors in rationaliZing the industry. Proposed Regional Administrative Programs In view of our findings on the effectiveness of the regional research structure, we advocate the setting up of a Regional Agricultural Research Institute. Such an institute would absorb the present Regional Research Center of the University of the West Indies to the extent 15See Chapter V for discussion of the character— istics of labor costs in sugar cane production in Jamaica. Also, see Chapter VI for discussion of potential effects of biomechanical innovation on employment in the sugar industry in the West Indies over the 1970's. that ther of effort the frame ing struc 348 that there would be limited competition and duplication of efforts from competing regional organizations. Within the frameWOrk of such an institute, we propose the follow— ing structure: A. Organizational Structure 1. The Institute should be established under formal inter—governmental agreement in terms of financial commitment for research facil— ities, staffing, and travel on a long—term basis. The Institute should be established under conditions permitting long—term capital fund— ing and recurrent expenditure commitments from international foundations and bi-lateral and multi—lateral public aid. The Institute should be organized as an au— tonomous body, headed by a Director, respon— sible to a Research Committee. Membership of such a Committee would normally come from: 349 Elected representatives from the various funding territories. Representatives from the international foundations and agencies involved in fi— nancing of the Institute. Representative from the Regional Develop— ment Bank. Representative from the Faculty of Agri— culture of the University of the West Indies. Representative of the Regional Committee proposed under our discussion of export- domestic agricultural research organiza— tion. (In fact, this Committee could serve the need of the Committee prOposed earlier, in which case such a Committee would be unnecessary.) The research committee should have represen— tation from the international research organi— zations serving the region——i.e., the International Wheat and Maize Improvement Center in Mexico, the International Center for Tropical Agriculture in Columbia, and the International Institute for Tropical Agriculture in Nigeria. The Nigerian organ— ization is specifically designed to carry out research on root crops and other tropical food crops. One way of doing this would be to make the Directors of these two Centers the representatives of the Ford and Rockefeller Foundations. The Regional Research Institute should serve as an integral part of the University system, with provision for the utilization of research facilities for teaching and research of under— graduate and graduate students. In this re— spect, the Institute would be operating within a framework similar to the present Research Center, but at a greatly expanded level. In addition, the Institute could award degrees or certificates for advanced studies in coop— eration with the University. B 351 6. The Institute should expand and incorporate the existing facilities of the Regional Re— search Center in the various islands. Where local research facilities are inadequate for training lower—level agricultural technicians, such facilities should be made available. B. Staffing of the Institute 1. The Institute should carry its own complement of researchers and technical personnel who would be accorded regular faculty status and privileges. On the other hand, academic members attached to the agriculture faculty and related disciplines should be accorded associate status with the Institute. 2. Provision should be made for (a) periodic rotation of research staff of the various min— istries of agriculture in the territories to allow them to be in residence at the Insti— tute's headquarters, and (b) for members of the Institute's staff to substitute for such public officials in their own country. l___ 3. 352 Through international foundations and agencies, financial assistance could be secured to allow advanced graduate students in temperate zones and other tropical countries to conduct re— search for advanced degrees in tropical agri— cultural problems under the supervision of the Institute's staff. Such students would be accorded the status of junior staff members of the Institute. The Institute should be adequately staffed by competent social scientists who would actively participate in the planning and implementation of research activities. In addition, such staff members would engage in long—run economic analyses of the possible consequences of cer— tain research findings at the farm level, the national level, and the regional and inter— national levels. Salaries and benefits would necessarily have to be competitive with the University and private industry. In addition, it might be necessary to have an upward adjustment in the 353 salary structure for the Institute's staff as well as the University's and government. The adjustment would facilitate the attraction and retention of top-level staff members. It will be necessary, however, to exercise extreme caution in making salary adjustments; any ap— parent differential in the salary structure of the various units could result in staff members leaving key positions in lesser paying organ— izations to enter the Institute. This could be a serious problem for the national systems. C. Research Orientation of the Research Institute. On the basis of findings on the present research pattern in the region, and the implication of such a pattern for the productivity of the agricultural sector, we proposed the following lines of research emphasis: l. Emphasis should be given to creating a large number of biologically superior or improved varieties of crops and livestock. Such an emphasis will be the first step in establishing 354 and maintaining a pool of high—quality, low— cost, high—adaptive inputs for the area. The testing of the "pool" material for adapta- bility to national ecological conditions should be undertaken with the full cooperation of na— tional research systems. Where such national systems are weak, the territorial units of the Institute should be prepared to carry out the adaption trials. The initial thrust of the Institute would thus be in the area of achieving a ”critical minimum effort" in the area of fundamental research, in order to change the biological content of the inputs. At the same time, research should be undertaken to maintain some balance in the fundamental—adaptive mix within the Institute. Such a mix is vital in realizing the potential for commercialization of the new inputs. It is extremely important that technical re- search efforts be undertaken in c00peration with agricultural economists. The economist 355 should undertake costing trials as well as general farm management studies. In addition, the economist should be involved in long—run macro—projections of demand, supply, labor, and pricing variables. Continuous research programs should be directed at identifying the crucial variables in farm—nonfarm inter— actions. The Institute should in turn serve as a "re— gional experiment station" for the introduc— tion and adaption of new crops from outside the area. This would be aimed at attaining a ”general” level of adaptability for the region as a whole. Adaptability of new crops to a Specific territory should be initiated largely by the research systems of the indi— vidual territories in c00peration with the territorial unit of the Institute. In this respect, the Institute should participate in frequent exchange of research material with the newly formed international institutes in Nigeria and Columbia as well as with other institutes and research centers. PlEte . PrOgra by the 356 6. In its function as the entry point for new inputs into the area, the Institute should maintain a "quarantine" function. With the rapid strides in transportation, indiscrim— inate introduction of foreign plant material could make new plant varieties immediately obsolete through the outbreak of disease and pests. 7. The Institute should be responsive to the problems of individual territories to the extent that Specific and crucial problems can be channeled to the Institute for inves— tigation. In addition, research findings at the territorial level that appear relevant for improved productivity of agriculture should be explored by the Institute for poten— tial regional application. The suggestions given above are by no means com— plete. Furthermore, the work of the Institute must be incorporated into the extension, marketing, and overall programs of the various agencies and territories served by the Institute. One final note is in order. We stress that the flexibil for adjt in the bottlen The fir the ex; adaptiy dinatic Scale ( dence a minist: approai fUture exists resear makers 357 that the Institute's program maintain a high level of flexibility in its activities. Flexibility is necessary for adjustment to dynamic needs and changes as they arise. Summary In seeking to identify administrative bottlenecks in the West Indian research structure we found the major bottlenecks could be generally classified under two groups. The first group relates to the general emphasis given to the export—domestic research mix as well as the fundamental- adaptive mix. The second group relates to research coor— dination, cooperation, financing, economic incentives, and scale of activities. There is a high degree of interdepen— dence among the observed administrative bottlenecks. We argue for a regional approach to research ad— ministrative reorganization in the region. The regional approach appears to present the most realistic view of the future potential of the research structure. There already exists the basic foundation and institutional regional research structure, and all indication are that policy- makers will continue in this direction. Within the region framewor national of the r tion of system t tional 1 system r strateg: mestic ; capable must be ation b aS well Suggest Institl Regions Indies, sity, ] staff \ from m' adVa nC 358 framework of reorganizing the structure, we see the various national research systems as being specialized extensions of the regional system. Such systems would serve the func— tion of outlying experiment stations and link the regional system to the specific problems of the farmers at the na— tional level. When national systems are weak, the regional system must take the place of national systems. Within the domestic—export context, we advocate a strategy of greater public and foundation support for do— mestic agriculture. Export agriculture appears to be quite capable of financing its own programs. However, efforts must be made to coordinate and formalize research COOper— ation between domestic and export research organizations as well as international organizations. Within a regional administrative structure, we suggest the setting up of a Regional Agricultural Research Institute. Such an Institute would absorb the existing Regional Research Center of the University of the West Indies. The Institute would also be linked to the univer— sity, but would hold an autonomous status. Faculties and staff would be greatly expanded, and support would come from multi—lateral sources. The institute would offer advanced degrees and diplomas in cooperation with the Univers: revised on crea superio of new to nati would a livestc 0f ecor cluded tists v resean conseqx 359 University, and salaries and working conditions would be revised to attract top—level scientific manpower. Research work of the Institute would concentrate on creating a ”critical minimum effort" toward generating superior crops and livestocks. Work would include testing of new inputs for both regional adapability and passing on to national systems for local adapability. The Institute would also maintain a quarantine function for crops and livestocks introduced in the region. A competent staff of economists and other social scientists would be in— cluded in the staffing of the Institute. Social scien— tists would actively participate in the development of research priorities as well as assessing the long—term consequences of such priorities. develOp of incr agricul many of ceived in the from tt adaptal West Ir for r0< bulk 01 t0 fin< Culture tribut Chroni‘ CHAPTER VIII SUMMARY, CONCLUSIONS, AND RECOMMENDATIONS Summaryiand Conclusions The West Indies, like many of the other less— developed areas, is seeking ways of capturing the benefits of increased agricultural productivity to be realized from agricultural research and technology. However, unlike many of the less—developed countries, the region has re— ceived only minimal benefits from the ”green revolution" in the cereals. The new and improved genetic inputs coming from the international research organizations are: (1) not adaptable to the humid lowland tropics (which include the West Indies), and (2) there has been no ”green revolution" for root crops and starch pulses——crops that make up the bulk of the diet in the West Indies. The region is currently faced with rising pressures to find ways of increasing the productivity of its agri— cultural sector, as well as to increase the level and dis— tribution of income among rural people. In addition, the chronic high level of unemployment (about 15 percent) and 360 the rece the unen with thi jective: 361 the recent political disturbances (largely spearheaded by the unemployed) point out the urgency of coming to grips with this problem. This study was undertaken with the following ob— jectives in mind: 1. To identify the characteristics of the existing regional agricultural research structure in terms of (a) the organization of research, (b) the subject—matter of research, and (c) partial as- sessment of the input component of research in terms of manpower and expenditure. 2. To examine the characteristics of the output from the regional agricultural research system to see how they relate (a) to the performance of the ex- port and food farmer at the farm level and (b) to the general performance of the agricultural sector. 3. To explore the major bottlenecks to productivity— increasing technological change in the agricultural sector, as well as the scope for relevant techno— logical change. standin actuall structt can mox Velopme develO] t0 Som‘ agricu West I the p1 362 4. To develop a strategy of agricultural research priorities, including measures to overcome admin— istrative problems in research agencies for the region over the 1970's, and to explore the possible consequences of following particular research strategies. The study hopes to contribute to a better under— standing of regional research system in terms of (1) what actually exists, and the disposition of the existing structure, (2) possible directions in which the system can move to increase its contribution to growth and de— velopment, and (3) the possible long—run consequences for development of moving in a particular direction. Answers to some of these general policy questions would allow agricultural research planners and policymakers in the West Indies to improve their decision-making process in the planning of research activities. The current interest in agricultural research and development by policymakers and planners stems from a number of factors. Some of the more important are: (l) recognition that the future of the traditional agri— cultural exports (particularly sugar and bananas) is extreme] tential its maj< Europea1 Indies I it is p in per cant tr in the very li largely called plough indiger and ris eXpansj SPite I turing failed For 8d agricu and un agricu 363 extremely uncertain, since the region now faces the po— tential loss of the protected United Kingdom market for its major agricultural exports if Britain enters the European Common Market, (2) the experience of the West Indies over the last two decades has demonstrated that it is possible to have a relatively rapid rate of growth in per capita income and GDP without undergoing signifi— cant transformation in economic structure. Rapid growth in the West Indies in the 1950's and 1960's resulted in very little "broadening” of the economic structure, largely because the growth stimulus came from the so— called ”enclave sectors,” which generally failed to plough back a significant proportion of profits into the indigenous structure, (3) it is unlikely that the chronic and rising level of unemployment will be alleviated by expansion in the manufacturing and mining sectors. De- spite phenomenal increases in the contribution of manufac— turing and mining to GDP, these sectors have generally failed to generate appreciable increases in employment. For some time to come, the region will have to look to agriculture for reduction in the level of unemployment and underemployment, (4) lagging productivity of domestic agriculture has tended to aggravate the regional balance of payme via ris: level 0 relativ countri though bring a We four food st limite( Prices tends rates genera manufa 0f the SeCtor Skille With i 364 of payments problem by export of scarce foreign exchange via rising food imports. Our study indicates that deSpite a relatively high level of demand for imported food (which is backed up by relatively high per capita incomes, as the less-developed countries go), a relatively low level of per capita piggg— tive demand still persists in the region as a whole. Al— though the rapid growth rate of the 1950's and 1960's did bring about some expansion in per capita effective demand, we found that domestic per capita effective demand for food still remains low, relative to the cost of domestic food production. This indicates that effective demand is limited since it was not enough to absorb the local food prices. A second characteristic of regional economy which tends to indicate a low effective demand is that rapid rates of growth in income over the 1950's and 1960's were generated largely by the capital—intensive mining and manufacturing sectors which account for a small prOportion of the labor force. Increased incomes generated in these sectors tends to be concentrated in the hands of a few skilled numbers of the labor force. Production systems with this characteristic do not expand per capita effective demand ] hence i1 force. the nex with th argue t expansi Of dome price ( increa: along (cerea outwar. This a island ObSerV island caPita relatj thrthe tslan< the n 365 demand because they do not place productive resources and hence income in the hands of a large number of the work force. Given the above indication of demand limitations, the next questions deal with reconciling this argument with the observed high propensity to import food. We argue that the rapidly rising food imports represent an expansion in consumption of imported food at the expense of domestically produced food as a result of changes in price of food imports relative to domestic food. As such, increasing levels of food imports represent a movement along Specific demand schedules for certain food items (cereals, livestock products, and vegetables) rather than outward shifts in demand schedules for these commodities. This argument holds for the region as a whole. In specific islands, there might have been some shifts in demand. We observed, however, that in certain instances specific islands experienced rapid increases in food imports per capita over periods when per capita income changes were relatively small. This phenomenon would tend to lend further support to our argument that, for many of the islands, per capita effective demand did not spearhead the increased importation of food. What seems to be the case is being 5 food. agricul bananas in the being j present enterix have b( locati t0 Cen gional Period covere indica withir gion. T3 366 case is that the effective demand there is for food is being satisfied by local food production and imported food. High costs of production exist for the traditional agricultural exports—-sugar and bananas. In the case of bananas, it is obvious that the high cost of production in the West Indies has prevented West Indian bananas from being in demand in the United States market. At the present time, there are no duty restrictions on bananas entering the United States; however, West Indian bananas have been unable to exploit the advantage of favorable location to the U.S. market because of high costs relative to Central and South American countries. Assessment was made of the disposition of the re— gional agricultural research structure over the 1930—68 period. Classification of the 27 research organizations covered in the survey on the basis of "form” and'function" indicated at least six different organizational structures within which agricultural research is carried in the re- gion. These are: Type l-—Public, largely adaptive, non—commodity oriented organizations. Type 2——Private, largely adaptive, non—commodity oriented organizations. TYP TYP TYF TYP 5. Prc Only 7 in fun< iS lar< cocoa. of the in res coconu in res legume reSear the 1e and Tc tegiOr ah unc howeve 367 Type 3——Private, largely adaptive, non—commodity oriented organizations. Type 4——Private, largely fundamental commodity oriented organizations. Type 5——Quasi—public, largely adaptive, non—commodity oriented organizations. Type 6——Quasi—public, largely adaptive, commodity oriented organizations. Type 1 was the oldest, followed by 4, 3, 6, 2, and 5. Programs concentrated heavily on adaptive research. Only 7 percent of the research organizations are engaged in fundamental research. Furthermore, fundamental research is largely confined to two export crops-—sugar cane and cocoa. Of equal significance is the fact that 50 percent of the research organizations in the survey are engaged in research on a single export crop (sugar, banana, citrus, coconut, and cocoa). The remaining 50 percent are engaged in research on virtually hundreds of root crops, grain legumes, cereals, and vegetables. The concentration of research efforts appears to be functionally related to the level of economic develOpment. Jamaica and Trinidad and Tobago account for a disprOportionate share of the regional agricultural research organizations. There is an underlying economic rationale for past research emphasis. However, the rationale varies significantly between export -< ization: could e1 high pr« elsewhe eXport- mental problem Large—s mainly Efforts knowlec case 0: knowle< matter ganiza resear adapti has 10 agricu tive r PrOpOr h0he C 368 export-oriented organizations and domestic—oriented organ— izations. Specifically, the export—oriented organizations could emphasize adaptive research because a relatively high proportion of relevant fundamental research was done elsewhere and was directly transferable to the area. Most eXport-oriented research organiZations undertook funda— mental research only when information was lacking or when problems unique to the region confronted specific crops. Large—scale fundamental research in the West Indies is mainly confined to sugar and cocoa because it stems from efforts by the sugar and cocoa industries to generate knowledge not available from outside the region. In the case of domestic research efforts, there has been limited knowledge to draw on from outside. The research subject— matter emphasis between export and domestic research or— ganizations is inconsistent and paradoxical. Domestic research organizations rationalize their concentration on adaptive research on the grounds that fundamental research has low benefit—to—cost ratios. On the other hand, export agriculture rationalizes the heavy concentration on adap— tive research on the basis of the fact that a significant proportion of the fundamental work on export crops was done outside the region. Furthermore, the results were direct] extent expendi activil searche organi: roughl crops, centra covere also a for th cant a resear eXport aCtivi than t Sions tists‘ in ave hand, of 0h 369 directly applicable and beneficial to the region, to the extent that they could concentrate as adaptive research. There is an unfavorable manpower and research expenditure ratio between export and domestic research activities, with respect to the number of crops being re— searched. Over the 1967—68 period, the number of research organizations engaged in research on export crops was roughly equal to those engaged in research on domestic crops. However, the eXport research efforts were con— centrated on five crops, while the domestic efforts covered a wide variety of local food crops. There was also a much more favorable ratio of scientists to crops for the export—oriented organizations. Another signifi— cant aspect is the relationship between kind of commodity researched and directly productive research efforts. The export—oriented organizations have separated research activities from other activities to a much greater degree than the non—eXport research organizations. When conver— sions were made to full—time—equivalent research scien— tists, the former type of organizations show a reduction in available scientists of only 10 percent. On the other hand, the reduction was 26 percent for the latter groups of organizations. of the ganizat domest: manpow< need tt scient Furthe incent study terior region of for all an comple than t reseal ever, the c} rESea] is the in th. 370 Serious question also exist as to the distribution of the work load among the regional domestic research or— ganizations. Given the magnitude of the task confronting domestic agriculture, there is a shortage of top level manpower in the region. Domestic research administrators need to give top priority to the training of agricultural scientists at the undergraduate and graduate levels. Furthermore, a hard look must be taken at the economic incentives being offered to agricultural graduates. Our study found little evidence that there has been any de— terioration in the quality of research personnel in the region. On the contrary, if one uses the number of years of formal education as a rough measure of ”quality,” then all available evidence tends to suggest that the present complement of research scientists are much more competent than those of 20 years ago. Data on expenditures on West Indian agricultural research are the most incomplete of the input data. How— ever, the available figures do provide some indication of the characteristics of the capital structure of regional research. What has emerged on the eXpenditure question is that in 1967—68, twenty—two of the organizations covered in the survey were spending approximately 1.3 million dollar: Over tl spendi expend ing ca (45 pe of the 26 res 50 per search total remair domest Portir aPpro> and re reSpOI was % egric eXpen. Spend Of th 371 dollars (W.I.) as capital outlay in the research efforts. Over the same period, 26 of the 27 organizations were Spending about 4.2 million dollars (W.I.) as recurrent eXpenditures in research. Of the 22 organizations report— ing capital expenditure, 10 were working on export crops (45 percent) and these ten accounted for almost 16 percent of the total capital expenditure over the period. Of the 26 research organizations reporting recurrent expenditure, 50 percent (13) were engaged in export agriculture re— search. This 50 percent accounted for 56 percent of the total recurrent expenditure for the 1967—68 period. The remaining 44 percent was being spent by the remaining 13 domestic research organizations. Thus, for the units re— porting research expenditure in 1967—68, we estimated approximately 5.5 million dollars (W.I.) combined capital and recurrent expenditure. On the basis of both the respondents and non— respondents in the survey, we estimate that the West Indies was spending approximately 6.5 million dollars (W.I.) on agricultural research over the 1967—68 period. From these eXpenditure estimates we estimated that the region was spending on agricultural research at a rate of 1.6 percent of the value of its agricultural output in 1968. However, the rat facilit partict researc facilii organi: much 01 zation of cap past i Search Specif Organi capita tively genera sincE of the reeem their thani high. Conld fl [ 372 the rate of expenditure does not reflect the shortage of facilities in domestic agricultural research activities, particularly in the smaller islands. Export—oriented research facilities are superior to non—export research facilities. First, the data ShOW that export research organizations were spending approximately one—fifth as much on capital equipment as the public research organi— zations in 1968. It would appear, however, that the level of capital investment is related to: (l) the level of past investment, (2) technological obsolescence of re— search facilities, and (3) changes in research emphasis. Specifically, the data indicate that the export research organizations undertook the greater proportion of their capital investment some 5 to 10 years earlier. The rela— tively small expenditure in this area in 1968 reflects a general "Scaling down" of expenditure on capital equipment, Since the major proportion was purchased earlier. Many of the export—oriented organizations are of relatively recent origin (banana, citrus, and coconuts), and as such, their research facilities would tend to be more up-to—date than the public research organizations. The relatively high capital investment of the public research organizations could reflect conscious efforts to up-date their research facilit that gr export capitai could 1 tion 0 spendi search emphas resear agricu feel t Of agr absolt 373 facilities. Second, it is only in relatively recent times that governmental policies have Shifted emphasis from export agriculture to domestic agriculture. The high capital investment among domestic research organizations could reflect a general "tooling up" for the implementa— tion of the new policy. Inspite of the fact that the region appears to be spending at a relatively high rate on agricultural re— search, we find reasons to question: (1) the relative emphasis being given to adaptive as against fundamental research and (2) the allocation of resources to domestic agricultural research as against export agriculture. We feel that an investment rate of 1.6 percent of the value of agricultural output can be a misleading figure if the absolute level of output is small. Having reviewed some aSpects of the input struc— ture of the regional research system, we turned to the various research organizations for assessment of the out— put of agricultural research activities. After reviewing the international experience with respect to the fertil— izer response curves for improved and unimproved crop varieties, we then reviewed the response curves for a wide range of experimental research projects in the West Indies. The pri specifi tural ; specifi the ma; and sta instan compar Trinid indica The primary objective of this review was to identify the specific characteristics of the first generation agricul— tural problems facing the region. Before examining the specific cases, however, we noted that crOp yields for 374 the major cereals (rice and maize), as well as root crops and starch vegetables, have experienced a decline in many instances Since 1948. With respect to regional research activities, comparisons of experiment station yields for Jamaica, Trinidad and Tobago, and the Eastern Caribbean islands indicate the following: The crop varieties that are generally released by the experiment stations to the farmers show very little Significant yield differentials under N-P—K fertilization, as against no fertilization. In a large number of cases, the addition of nitro— genous fertilizer depressed yields to the point that yields were actually lower than experiments carried out without fertilizer. In a few cases, fertilization registered some gains in yields when applied to local crop varieties; Organj Variet Variet ical , haVe ! 375 but even within a single experiment station the variation of yields are large. In addition, the level of biological control necessary to attain such yields tends to make the recommended variety uneconomical for the peasant farmer. 4. Experimental results (in terms of crop yields) for the best available technology were not sig— nificantly better than results attained by the ”better" peasant farmers using traditional tech— nology. 5. The only crop varieties that consistently out— perform the local unimproved varieties under widely variable ecological conditions were the two hybrid corn varieties (X304 and X306) developed in Jamaica by Pioneer Hi—Bred Corn Company. In general, we find that domestic—oriented research organizations have tended to concentrate their efforts on varietal trials rather than developing indigenous improved varieties that are adaptable to a wide variety of ecolog- ical conditions. Domestic agricultural research efforts have not succeeded in placing their results well above the result Even w sarily such t the tr better nology fertil why pe ernmer ‘ eties throug sponse tiliZe SUbsi< tional Chang, ferti; “883] of th to in We ar‘ 376 results of the more commercially—oriented peasant farmers. Even when experimental yields are higher, this is neces— sarily not sound basis for recommending the extension of such treatment to farmers. Unless the yield levels of the treated plots are substantially superior to what the better farmers are already getting with traditional tech- nology, the treatment will hardly be an extension success. The general failure of research to produce high fertilizer response crop varieties would tend to explain why peasant farmers often show a lack of interest in gov— ernmental fertilizer subsidy schemes. If the crop vari— eties available to the farmer are such that he observes, through trial and error, consistently low fertilizer re— Sponses, there will be limited demand generated for fer— tilizer even when the price is substantially reduced by subsidies. The marginal cost incurred in applying addi— tional units of fertilizer, relative to the incremental changes in yields, must warrant Significant expansion in fertilizer application. The high degree of competitive— ness between production and consumption for the capital of the peasant farmer further explains a general reluctance to invest in fertilizer, even at highly subsidized prices. We argue that West Indian peasant farmers are aware from past e1 could 1 his im system search that w fertil higher series crOp I Would incree farmel genera head a agrim tiona SEQtO SEctO itati irrig 377 past experience that large scale application of fertilizer could result in an actual decline in yields, and hence, his income position. The proper role of relevant indigenous research systems now becomes clearer. West Indian domestic re— search activities need to generate biochemical technology that will produce significant numbers of high response fertilizer curves for local crOps. The generation of higher response curves over time can be visualized as a series of short—run higher response curves. With such crOp response curves, increased fertilizer application would tend to generate marginal products that would make increased fertilizer usage profitable for the peasant farmer. Over time, the factor productivity increases generated by this type of research activities will spear— head a self—sustained development drive in the domestic agricultural sector. As productivity increases, addi— tional resources will be demanded from the non—agricultural sectors in response to increased opportunities outside the sector. At this state in development, we feel that facil— itating features (in terms of land reform, extension, and irrigation) become more meaningful. The facilitating featurt potent cane a that s fiftee Island island evider low fe resea: proved by 10( recon( range Close; to ex] ginal by in qUOta Shgar has r ical 378 features are necessary for agriculture to capture the full potential of the growth process. A general review of the yield situation for sugar cane and bananas, the two major agricultural exports, shows that sugar cane yields have been constant over the past fifteen years. Banana yields in Jamaica and the Windward Islands are substantially lower than in the French—Speaking islands, and in Central and South America. We found little evidence that West Indian sugar cane varieties possess a low fertilizer reSponse threshold. In general, sugar cane research is highly advanced in the West Indies, and im— proved varieties are constantly being put into production by local research institutions. We found it difficult to reconcile constant yields with the existence of a wide range of high—reSponse sugar cane varieties. However, on closer examination we found that there has been a tendency to eXpand sugar output by expansion onto land that is mar— ginal for cane production. The tendency to expand output by increasing acreage is related to the working of the quota mechanism and preferential arrangements covering sugar production. Expansion to marginal sugar cane lands has resulted in a relative decline in the marginal phys— ical product of such lands (at the extensive margin), which 1 physice intens eviden sugar compon costs the re under Systen of suc cost ( to gr over the p Searc Secor 379 which has just been offset by increases in the marginal physical product of fertilizer and irrigation (at the intensive margin). In addition to the land characteristics, there is evidence that there are substantial inefficiencies in sugar cane production. Labor represents the major cost component per unit of raw sugar produced. High labor costs are a major factor in the uncompetitive nature of the regional sugar and banana industries. We argue that under relevant technological innovations, a more efficient system of production would be forthcoming. The importance of such a technology would be to reduce the high labor cost of the industry. Recommendations Two general strategy areas are developed for coming to grips with the inefficiencies of the agricultural sector over the 1970's. The first set of strategies deals with the priorities to be given to the subject-matter of re— search and the Specific commodity research systems. The second set of strategies is concerned with administrative aspect the su likely strate and th to don agrict genera substi hels \ tions serva strai eXpor biOme innov eXpor can t be gj 380 aspects of the regional research system and to complement the subject—matter strategies. Assessment is made of the likely short—run and long—run impact of subject—matter strategies over the 1970's in terms of a Specific second and third generation agricultural problems. Under subject—matter strategies, Strategy 1 relates to domestic agriculture while Strategy 2 relates to export agriculture. Strategy 1 research would concentrate on generating a stream of biochemical innovations that would substitute for land. Furthermore, institutions and chan— nels would need to be developed to diffuse these innova— tions at the farm level. Strategy 1 is based on the ob— servation that domestic agriculture faces a land con- straint. Strategy 2 suggests that research activities in export agriculture concentrate on generating a stream of biomechanical innovations over the 1970's. This type of innovation is needed to reduce the high labor cost of export agriculture to the extent that export agriculture can become competitive on the world market. Under Strategy 1 we advocate that high priority be given to the following commodity research systems: System exchax versi of th« diet, to a gion' ment that lines reSea eVEr' SYStE this 381 l. A livestock research system 2. A cereal research system (maize and rice) 3. A fruit and vegetable research system 4. A root crop research system (sweet potatoes, yams, cassava, and certain aroids) The major basis for assigning high priority to Systems 1 to 3 are: (a) conservation of scarce foreign exchange by import substitution and (b) agricultural di— versification. High priority is given to system 4 because of the relative importance of root crops in the regional diet, and the fact that it represents a major access route to a stream of income for a large proportion of the re— gion's farmers. We Should note, however, that the assign— ment of priorities to the above systems does not imply that there is currently no research being done along these lines. On the contrary, many of the islands do carry out research on these systems. What we are suggesting, how— ever, is that priority be given to the four commodity systems within the framework of Strategy 1. Currently this is not being done. given import (b) t} these ploib reCt: item: effe 382 Under Strategy 2 we suggest that high priority be given to the following over the 1970's: 1. A sugar cane research system 2. A banana research system The rationale for two systems recognizes (a) their importance to the regional economy as export earners and (b) the comparative advantage that the region enjoys in these commodities if their potential can be fully ex— ploited. Implementation Of Strategy 1 is first discussed in terms of the potential lack of effective demand in the 1970's. We argue that despite our finding that domestic per capita effective demand is low in the region, expanded output will not face demand limitations in the 1970's; l: Strategy 1 can reduce costs to cut Off food imports. TWO mechanisms are suggested whereby cost—reducing technology (under Strategy 1) can affect the consumption and demand of expanded output. First, cost—reducing biochemical in— novations can expand domestic food consumption by redi— recting consumption from imported foods to domestic food items. Second, such technology can expand per capita effective demand for locally produced food items if product propori lower s tion r foods net fa moditi of sub that t are la be ela about age ir 0f age by eve in POE rESpe( ahHUal food I the h It is Cohtr 383 productive resources are placed in the hands of a large proportion of the population who are currently at the lower end of the income scale. If technological innova— tion reduces domestic food prices to the extent that local foods can undersell imported food, then both gross and net farm incomes will expand if the demand for the com— modities is price elastic. The existence of a wide range of substitutes for the major imported items indicates that the cross—elasticities Of demand for these commodities are large and positive. Under such conditions, demand will be elastic. We noted that the region is currently importing about 40 percent of its food requirements. With an aver— age income elasticity Of demand Of .40 for food, the level of aggregate demand for food can be expected to increase by over 3 percent per annum if the annual rate Of growth in population and per capita income are 2 and 3 percent, respectively. We also pointed out that if all Of the annual increases in per capita income comes from expanded food production, food prices would fall drastically when the income elasticity Of demand for food is around .40. It is necessary, therefore, that around 60 percent annual contribution to per capita income changes be generated in the drasti and st nation terms for Si given 13> ASSur the1 Shga COme raw 384 in the non—food sector if food prices are not to fall drastically. Thus, agricultural development programs and strategies must of necessity be formulated within a national programming context. Long—run effects of Strategy 2 are assessed in terms of two possible directions in the external demand for sugar and bananas. The two possible directions are given as a set of assumptions. These are: Assumption 1: Present preferential policies will continue over the 1970's or minor modifications will occur in such policies. Assumption 2: Elimination Of preferential arrangements within and outside the Commonwealth over the 1970's. Implementation of Strategy 2 under conditions of Assumption 1 would lead to expanded export earnings from the two major agricultural exports. In the case of the sugar industry, the expansion in export earnings would come from drastic reduction in labor costs per unit of raw sugar produced. For example, if labor requirements are re costs about would ton 01 of sug in la] 011a: earni that ducti agric major Peter sibi] (MVP) tion stoC} Prod] dome: tion asri 385 are reduced by one half in Jamaica over the 1970's, labor costs per ton of sugar would decline from 48 percent to about 24 percent. Costs of harvesting and cultivation Would be reduced from 31 percent of total labor costs per ton of sugar to just over 15 percent. Man—hours per ton of sugar would be reduced from 53 to about 26. Reduction in labor costs of these magnitudes would place that island on a competitive footing with other sugar producing areas. Despite the potential for expanding the export earnings of sugar and bananas, it Should be recognized that increased profitability of sugar cane and banana pro— duction can result in reallocation of land from domestic agriculture to export agriculture. This would present a major constraint to agricultural diversification programs. Potential resource allocation problems stem from the pos— sibility of disparity between the marginal value product (MVP) of lands committed to sugar cane and banana produc— tion relative to lands committed to food crops and live- stock. Under protected markets, sugar cane and banana production could generate MVP's substantially above domestic agriculture. In order to prevent such realloca— tion, research activities under Strategy 1 (for domestic agriculture) need to generate MVP's for land equal to, or greate is a f cultur condit in the as we such atiVe eXpor Will of pr Sugar to e] lands Up bf 386 greater than, that for sugar cane and banana lands. This is a fundamental requirement for carrying forward agri— cultural diversification programs. Implementation of Strategy 2 under Assumption 2 conditions would reduce the export earnings of the region in the short run. We argue, however, that over the lppg ppp, export earnings could actually increase, if the loss of preferences is as a result of a shift to direct pay— ments and free—world quota for sugar. Studies carried out by R. H. Snape, Harry Johnson, and D. C. Horton indi— cate that a Shift to free world price and deficiency pay— ment could appreciably expand the trade volume of sugar as well as per capita consumption and world prices. With such expansion, the West Indies as a region, with compar— ative advantage in sugar production, could increase its export earnings from sugar production. It is reasonable to assume that some reallocation will occur under the second set of conditions. The loss of preferences can result in a withdrawal of lands from sugar cane production if the new market conditions function to eliminate the inefficient sugar producer. Whether the lands withdrawn from inefficient operation will be taken up by larger and more efficient cane farmers, or move into domest the tw produc tems u in a n cultux major the n short sult more, could run p artif ities emplc Publj place prOg] ing. tech tati 387 domestic food production, would depend on the MVP's of the two types of enterprises. If the inefficient cane producers can successfully shift to food production sys— tems with high MVP's for land, this shift could result in a more desirable system of export and domestic agri— culture. Strategies 1 and 2, taken together, would have major impact on the employment and nutritional aspect of the regional economy. Under Strategy 2, there will be a short—run increase in the level of unemployment as a re— sult of displaced labor in the sugar industry. Further— more, increases in the already high level of unemployment could seriously aggravate the political situation. Short— run programs must be implemented to cushion the impact of artificially high wage rates as a result of union activ— ities and of technological innovation on the level of un— employment. We suggest that governmental agencies launch public works programs to create jobs for both the dis— placed labor and the chronically unemployed. Furthermore, programs should be implemented for retraining and educat— ing the labor force to meet the requisites of the new technology as well as long run removal of machine impor— tation restrictions, etc. Public works programs that are properl infras output people of tee effect and re gesteé vatior t0 ple agricx cost—3 to in Profr raiSe to Is When into which SeCon margi Stimr 388 properly planned and implemented can serve to create vital infrastructure to meet the new levels of agricultural output; they can also place income in the hands of the people currently outside the money economy. DeSpite the short—run labor displacement effects of technological change, it is argued that the long—run effects of Strategies 1 and 2 will increase employment and reduce underemployment. Three mechanisms are sug— gested for expanding employment. First biochemical inno— vations under Strategy 1 should be accompanied by programs to place productive resources in the hands of low—income agricultural workers. Since such innovations are also cost-reducing in nature, they would increase the returns to investment in the ”traditional sector.” Increased profitability of domestic food production will tend to raise the marginal value product and supply price of labor to levels more in line with that of the industrial sector. When this occurs, labor would have incentive for moving into agriculture, thus, reducing the level of unemployment which coexists with a shortage of agricultural labor. Second, relevant technological innovation will shift the marginal efficiency of capital upwards. Such a shift will stimulate increased investment opportunities in both the agricui ployme crease labor— incre the p able Sourc 389 agricultural and the non—agricultural sectors. Both em— ployment and additional income would be generated by in— creased investment (particularly if the investments are labor—intensive). Third, biochemical innovations will (a) reduce the period of time that crops come to maturity and (b) expand aggregate crop output. Additional labor will be required to handle both the greater number of crops produced as well as the additional output. Apart from making significant contributions to increased employment, biochemical innovations can improve the protein content of food crops. This would make avail— able to a large proportion of the population a cheap source of protein. We identified 12 major administrative bottlenecks to successful implementation of subject—matter strategies in the West Indies. These bottlenecks can be classified into two general categories: (1) those having to do with emphasis given to (a) the export—domestic research mix and (b) the fundamental—adaptive research mix, and (2) aspects of research coordination, cooperation, financing, economic incentives, and scale of activities. The two groups of administrative bottlenecks are highly interrelated. tion < and a pears infra and p strat this agric izing tion creat The 1 Cenn and Come ment tute WOul with woml attl 390 We suggest a regional approach to the reorganiza— tion of the administrative structure. Given the political and economic structure of the region, this approach ap— pears to offer the most realistic method. Basic regional infrastructure already exists upon which future policies and programs can be built. Long—run administrative strategy would concentrate on domestic agriculture, since this area is the most neglected. Furthermore, export agriculture appears to possess the resources for reorgan— izing its structure if the appropriate enabling legisla— tion is carried out. Domestic administrative strategy focuses on the creation of a Regional Agricultural Research Institute. The Institute would absorb the existing Regional Research Center of the University of the West Indies. Financing and staffing would be greatly expanded, and support would come from international foundations, the regional govern— ments, and other public and private sources. The Insti— tute would be affiliated with the regional university and would offer advanced degrees and diplomas in association with the university. Salaries and working conditions would be such that competent agricultural scientists are attracted to the Institute. creat super of me on tc tiona state natir of tl Inst: and proj Sect not must fran indr COnE 391 Research of the Institute would concentrate on creating a "critical minimum effort" towards generating superior crops and livestocks. Work would include testing of new inputs for both regional adaptability and passing on to national systems for local adaptability. The na— tional systems would provide a function similar to out- state experiment stations in the United States. The national systems would provide the link to the problems of the farmers at the national and farm levels. The Institute would maintain a quarantine function for crops and livestocks introduced in the region. Economists and other social scientists would play a key role in the planning and implementation of research projects. Although this study focuses on the agricultural sector, and in particular on the research aspect, we can— not over—emphasize the fact that the agricultural policies must be programmed within a total national and regional framework. Within such an overall programming framework, industrial programs, marketing distribution, storage, and consumption policies must be integrated and harmonized. In addition, special attention must be paid to pricing and taxing policies as a mechanism for assisting the proce these repre cussi that tant recon with the 1 Indie betw< Suggz leVe requ inpu and rura Capa the is l 8119(- 392 process of technical change. We have not gone deeply into these problems, since any one of these mechanisms would represent a study in itself. However, our general dis— cussion of research has been predicated on the assumption that policy changes would be implemented in these impor— tant areas. Because of the limited scope of this study, we recommend that detailed and comprehensive studies dealing with farm management and the interrelationship betWeen the farm and non—farm sectors be undertaken in the West Indies. Such studies will necessitate a teamwork approach between social scientists and technical personnel. We suggest that detailed studies be conducted at the micro— level on costs of production, scale of enterprise, labor requirements, and input combination for new and improved inputs. At the macro—level, we visualize a need for demand and supply studies for specific commodities. In addition, we recommend comprehensive studies dealing with the urban— rural employment structure, and the relative absorptive capacity of the two sectors in terms of the unemployed and the underemployed. The list of problems to be researched is by no means exhaustive. However, those that we have suggested represent areas of immediate need. Much of the work The p scien howeV like] with 393 work will demand the skills and tools of the economist. The problems are enormous and the ability of the social scientists will be put to the test. In the long run, however, the insight gained from such studies will most likely equip the West Indies with tools to come to grips with the problems of stimulating economic development. APPENDICES APPENDIX A Table |. ai Facio Couni UniTed S Venezue Canada Luxembo Wes? Ge Belgium Unifed Netherl Table I. APPENDIX A R #95 of Increase in Gross Domestic Producf af Facior Cos? - Seiecfed Counfrles, I953 and I959 - Currenf Prices (U.S. 5) Gross Domesflc Producf, Per Caplfa Gross Domesflc Produci and Average Annual Gross Domesilc Produci Gross Domestic Per Caplfa Facfor CosT Producf Annual Rafe of Per Capita Increase I953-l959 (Currenf Prices Country I953 I957 I959 I953 I950 $ million (U.Slsvr U.S. Dollars Percenr Uniied Sfaies 333,249 404,258 44l,738 2,079 2,484 3.0 Venezuela 4,078 6,6OI 7,l52 749 |,098 6.6 Canada 22,799 28,888 32,597 l,536 i,869 3.3 Luxembourg 3|2 4|8 429 |,04O l,375 4.7 Wesf Germany 29,5i4 43,950 5l,l89 600 970 8.3 Belgium 7,949 9,978 |0,3|6 906 |,l33 3.8 United Kingdom 4|,343 53,80l 58,446 8l3 l,I2l 5.5 NeTherlands 5,589 8,475 9, i6| 533 807 7.2 PuerTo Rico 893 |,l99 l,489 405 64| 7.9 Trinidad & , Tobago 224 383 464 530 568 9.5 Iialy l6,798 22,407 25,7l9 353 524 6.8 Jamaica 300 539 592 202 354 9.8 Argenii na I6.876 | I ,990 6,808 9 I 7 330 . Indiab 2|,980 23,899 27,II7 58 64 |.6 a . . . . Conversuon made usang means of official rare of exchange. b Nef DomesTic Produci. Source: Rampersad, Frank. §______£L_________. P 1396 Groan and Siruciural Change in The Economy of Trinidad nd Toba o l95l—l96l. i.S.E.R., Universiiy of The Wesi indies, Dec. I963, . 4. APPENDIX B .+mo . o ..E .w .cou>tm ”monaOm x.azmaa< .+00t30ttm cc: .mme+ac .co.rh.oo toe. mm\vomw 0+ om\mmm_ can .mcaoo can .noooo .mocmcmn t0+ v0\noo_ 0+ wm\mmm_ “mahemo can .mesm t0+ mw\Nwm_ 0+ A monto>nv om\mmol ore eotmaeoo mvo_toa onp\m w.O ®._l . MLQOO .n.mn w.wi .+00tzoLt< 0.0 e.m ”swords nnt+_o ...N m.>i o.v1 «.ml no..U e.n_n N.o_u . coilou M3? 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N.mm m0_osmfi Mme“ iiuliiiaiHaadqfl. ............ ii maOLo +oom u m_motoc H .>L+caoo “ can» ., memo» new mo_t+caoo oe+ommom >8 wolvew emu; Hot:+_ocoaxm 300m “neck *0 3mm.cootod m we maOcQ room cam 2mmwcmu i .e mnmmw m x_oz.u.an 902 APPENDIX B TABLE 5 “'Pr0duct‘ Ion and Value of Cereals and Root Crops, Trinidad-Tobago and Jamaica, 1954-1968 % COmmodit 3 ' Price Per . I I I I . y ; Country 3 Ton ail954 :1961 :1965 :1967 :nggém M ;$U-S. 57-59: : : : : Cereals: ------- l,000 Metric Tons ------ K Rice (Rough) T . . Corn rlnldad 138 l9;3 16:] l5;0 15:0 l5;0 Rice (Rough) Jamaica l39 8.6 3.0 4.9 2 O 2.0 Corn 66 9.7 3.0 4.0 4 o 4.0 Total Cereals Pro- Trinidad - 37.6 22.l 2A.8 21.0 21.0 duction and (Rice 8 Corn) .Jamaica. - , --Miliion Dollars (U.S.) ------ Cereals Value: Rice (Rough) Trinidad — 2 7 2 2 21 2 l 2] Corn ‘ ' ‘ ‘ r - Rice (Rough Jamaica - l.2 .4 7 .3 .3 Corn ' 6 -Z 3 .3 .3 Total Value Cereals Trinidad - (Corn 8 Rice) 8 Jamaica - 4.5 2.8 3 l 2.7 2.7 aAt current exchange rate, $l.00 U.S. = $2.00 W.I. $l.OO U.S. = $1.85 Sources: W.I. At predevaluation rate, (l) USDA (ERS), indices of Agricultural Production for the 20 Latin American Countries, British-Guyana, Jamaica, and Trinidad and Tobago (Revised 195A through l965), ERS- Foreign EE, January, l967. v (2 USDA (ERS), indices of Agricultural Production for the Western Hemisphere, Excluding the United States (Revised 1959 through l967), ERS-Foreign 26A, March, 1939. 903 APPENDIX B TABLE 6.-- ' I Production and Value of Major Root Crops‘ Trinidad—TObago and Jamaica, 1954-1968 _ I :Price Per : : : : : . commodity ECountry Ton a :1954 :1961 :1965 21967 :Piggém' . :su.s.57-59 : : : : : M . . ------ 1 000 Metric Tons------- miss: —’———— Sweet potatoes and Yams Trinidad 107 20.4 16.2 15.0 15.0 16 0 Cassava (Manioc) 110 3,6 5,0 5 4 5,0 5 0 Potatoes (Irish) Jamaica 109 2.4 8.0 12.0 12.0 11.0 Sweet potatoes and Yams 87 64.0 160.0 150.0 150.0 145.0 Cassava (Manioc) 110 17.0 13.0 12.0 12.0 12.0 Total Root Crops Trinidad s Productionb Jamaica — 107.4 202.2 194.4 194.0 189.0 ---~Miliion Dollars (U.S.) ----- Root Crop Value: Sweet potatoes and Yams Trinidad - 2.2 1.7 1.6 1.1 1.7 Cassava (Manioc) . . Potatoes (lrish) Jamaica 3 Sweet potatoes and Yams - 5.3 13. 9 13.0 13.0 11 6 Cassava (Manioc) .4 1.3 1.3 l 3 Total Value Rot Trinidad 8 Cropsa Jamaica — i0.Li' i8.5 i7.8 17.3 16.4 aAt current exchange rate, $1.00 U.S. = $2.00 W.I. At predevaluation rate, $1.00 U.S. = $1.85 W.I. bThe available data does not report production of the Aroids (Tannias, Dasheens, Eddoes and Cocoes). This group of root crops are important in many parts of the West indies. Sources: (1) USDA (ERS), indices of Agricultural Production for the 20 Latin American Countries Phis Guyana, Jamaica and Trinidad and Tobago TRevised 1954 through 1965), ERS-Foreign 44, January, 1967. USDA (ERS), indices of Agricultural Production for the Western Hemisphere, Excluding the United States (Revised 1959 through 1967), ERS—Foreign 264, March, 1969. 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H x00+m0>_1_ n quLO u 4.00) sod..o+ omiemm. .oo.oEMs n...oIoaoocd .ora+.ao.cm< io oa.o> i- .N msmee m x_ozwdd< r i i i i 4416 .o+mc cow+na_m>0ooca +< . .+_0 .mo ..e .LoaROco can .2 .w mc0>nz "oocaom ...3 mm._w u .m.: oo.im _.3 oo.mm n .m.: oo._w .omcncoxm to o+mt +cotcau +<.1 ¢\0 \( m.mm e.vm w.b m.nm *mwm_ m.mm a.mm e.m o.mN woo. ..mm a.em N.o h.mN mom. m._m m.mn m.e m.wm «be. m.wm _.vm m.v w.mm mom_ m.om ..Nm _.a w.wm mom. _.vm s.om ..e 0.0m .cmw m.mm m.mm a.v m.mm oom_ 0.0m 0.0m m.v o.om mmm. n.0m m._m N.v ”.sm mad. m.mN m.om m.a m.oi mmn. 1 nmo. mmnco>< \Hmum.mqo .w.: co_.__z wood _m+0e m iJWMHmwtc< m x00+mo>.n m macro m coo» .oooaoe ace SEE: ”coffees .a m Xmazmdd< no cu+_ao 0+ ominmmm m. ch< to 03ms> 1: APPENDIX C i i i DEF 1. From Whii 0r Depar- a) Priv. b) Gove C) Gove (or d) Univ 91 We \ [“6556 che APPENDIX C. Specimen of Questionnaire DEPARTMENT OF AGRICULTURAL ECONOMICS AND FARM MANAGEMENT University of the West Indies St. Augustine, Trinidad, W.I. QUESTIONNAIRE RESEARCH UNIT OR DEPARTMENT LOCATION OF UNIT OR DEPARTMENT PART I: THE ORGANIZATION OF RESEARCH ACTIVITIES I. From which of the following kinds of organization does yoUr Research Unit or Department obtain most of its funds: a) Private Industry (or Corporation) | | b) Government Department (or Ministry) | i 0) Government Sponsored but Semi-Autonomous Board (or Co-operative) I .. ___I d) University I_TT—T—_:I e) Other (please specify) (Please check] I the appropriate box above) 407 N . Do you fee I that your large bene Yes No \J-a . If your a1 organizatl of such r1 Yes No b . Please gi organi zat 1 . 1y Fesea l reasonsi GI Lacl Exte ”I Lacl EXTI CI Far (I. i 2. _ 2 _ Do you feel that there are organizations or industries other than those that your Unit is directly responsible to serve that are apparently reaping large benefits from your research? Yes |_______J No |__—__..._._I If your answer to Question (2) is yes, do you feel that these organizations or industries should be brought into the financing of such research? Yes I__..___J No If .__1 Please give the reasons why you feel that specific industries or organizations should contribute to your research. If research results are not being applied at the farm level, what are the reasons? 3) Lack of effective contact between the Research Officers and Extension Personnel i b) Lack of effective contact between the farmers and the Extension Personnel i I 0) Farmers' inability to acquire the necessary resources (i.e. lack of credit, marketing and distribution system, etc.) I........J --- ___ -....- y [I I 1 I d) Admin Other (0 (Please desir writing numbi lacior;i ; _ 3 _ d) Administrative bottlenecks (legal and political) e) Other (please specify) (Please designate your assessment of the relative importance of the factors by writing numbers in the appropriate boxes (e.g.I I = Most important factor;I 2 I = Second important factor, etc.). 6. What perce two types Ii. Fundai a) Li CC) ) "O i i i 1 .____—_—i 7‘ If Ihei I ionici BI Tile 6. PART II: THE CONTENTS OF RESEARCH What percentage of your research efforts are directed at the following two types of problems? A. Note: 7. Fundamental (basic) Problems: a) Less than 25% I__-__——_I b) 25 _ 50% I—'—| c) 51 - 75% I_-'——_—_I d) Greater than 75% I——_—————I Applied (adaptive) Problems: a) Less than 25% I-"'___——I b) 25 - 50% I‘T—“I c) 51 - 75% I________W d) Greater than 75% I-—-—-—_——I Remarks: (A) Fundamental (basic) Research: ”Investigations aimed at extension of scientific knowledge; of increasing our understanding of nature; it is therefore explorations of the unknown or of the insufficiently known.’ (B) Applied (adaptive) Research: "(1) Research aimed at practical application or problems; (ii) Research which attempts to put to use existing knowledge or even to discover new knowledge which may have immediate practical application." If the volume of research efforts on fundamental problems is relatively small, to which of the following factors would you attribute this situation: a) The relatively high cost of undertaking fundamental research I I bl The is appl i< The r1 reseai n d) Other —— (Please desig boxes e.g. l etc.) 5. if the E To which a) The 1 to a; bi The _ i0 y( are l C) The . lems a 0the (”lease desi 00x93 (6.9 S‘c.) b) c) d) - 5 _ The feeling that fundamental research usually has less practical application than adaptive research I The relatively large scope for importation of fundamental research findings I I Other (please specify) (Please designate order of priorities by inserting numbers in the appropriate boxes e. g. I I = Highest Factor; I 2 = Second Highest Factor, etc.) 8. if the volume of research efforts on fundamental problems is relatively large, to which of the following factors would you attribute this situation: a) b) c) d) (Please designate your order of priorities by inserting nu boxes (e.g. I l I = Highest Factor; I etc.) The feeling that fundamental research is a vital complement to applied research I The limited scope for the importation of fundamental findings to your research (i .e. the findings that could be imported are either incomplete or irrelevant to the local situation) I I The feeling that it is possible to work on fundamental prob- lems that have a high content of applied characteristics I Other (please specify) mbers in the appropriate 2 I = Second Highest Factor, 9. Do you fee industry f ) Fundan m o- v Applis An "0 App”: 0 d) Relat shelt Other ('0 ~ Wlease desig W writing n1 hctor; I"" '0' 00 you f m a) Grea b) Grea C) More rese d) The low1 e) BET“ agn fl 0th D \ ”3x95 (e.g. -6- 9. Do you feel that the manr contribution to the develOpment of your industry has come from: a) Fundamental Research I I b) Applied Research I________I c) An "optimum" combination of both Fundamental and Applied Research I I d) Relatively high prices through negotiations and sheltered markets I I e) Other (please specify) (Please designate your assessment of the relative contribution of each factor by writing numbers in the appropriate boxes (e.g. I l I = Most important Factor; I 2 I = Second Important Factor, etc.) IO. Do you feel that the future development of your industry is likely to come from: a) Greater fundamental research I W b) Greater applied research I I c) More effective combination of fundamental and applied research I I d) The development of domestic and foreign markets via the lowering of costs of production and increased efficiency I I e) Better prices for products through negotiations and agreements I __. I f) Other (please specify) (Please desi nate order of priorities by inserting numbers in the appropriate boxes (e.g. T I = Highest Factor; I 2 I = Second Factor, etc.) l ‘1 ‘ 1 I ll. Which of reflect y a) lncre b) lncre of pr c) lncre devel outpL d) Lesse e) 0the1 \ ‘P'ease desic ooxes (e.g. I I2’ BY What ReSearci a) Res b) Din _ 7 - Which of the following set of objectives would you say most adequately reflect your organization's objective(s) (in terms of priorities): a) increased industry "efficiency“ (and thus lower costs) I I b) increased consumer satisfaction via improved quality of products and lower prices I I v c Increased contribution to national well-being and development (via increased employment, increased output, etc.) I I d) .Lesser dependency on food imports I I e) Other (please specify) Remarks: (Please designate order of priorities by insertin ng numbers in the appropriate boxes (e 9 i2. = Highest Objective; 2 = Second Objective, etc.) By what body or person are agricultural priorities established for your Research Unit at the present time? a) Research Committee I________I b) Director of Research (or Research Officer) I_________I c) By individual researchers I____‘____I d) Other (please specify) V4 5 Remarks : By what t present 5 What are. Why? (P ' What ars ////// Remarks: i5. By what body or person were research priorities established prior to the present system? l4. What areas of research are getting top priorities at the present time? Why? (Please specify) I5. What areas of research had top priorities over the last 5-year period? Why? i6. Would you I tion the Yes No Remarks: iiiiiil ‘4 If your should e II efforts iaithoug Your ind Yes No Rem . £1“. \ \ \. \ \ \ \ -9- i6. Would you say that the majority of your research efforts take into considera- tion the extent to which the results can be applied commercially? Yes I I No I _ I Remarks: (if your answer is NO, please explain) I7. If your research is wholly privately financed, do you feel that your unit should entertain "suggestions" from public agencies that your research efforts follow lines of investigation that will benefit the economy (although the results from such research might not be as profitable for your industry as some other research would be)? Yes I I No I I Remarks: i Ii. inwhat yi a) First b) Estab o . What has employed a) When “M l9. _ lO - PART ill: THE VOLUME OF RESEARCH in what year was your Research Unit or Department a) First established b) Established in its present form What has been the average number of research scientists employed at the following times: a) When your Unit or Department was first established b) l0 years ago c) 5 years ago d) At the present time (l967-l968) Note: Please restrict research scientists to persons you would consider to fit any of the following categories: (i) Professionally trained personnel (degree holding) (ii) Non—degree holding personnel with technical train- ing leading to a diploma that is equivalent to a university degree (iii) Any other diploma which, in some countries, though of less than university degree standard, is nationally recognized as qualifying a person as a professional scientist (e.g. D.l.C.T.A.) (iv) Any other training or experience which, though of less than university level or diploma as specified above, has qualified a person to work as a professional scientist (e.g. admission to professional society or institution). 20. What has categor ie Category iii Profess‘ trained per501 (degree holdi1 (iii Non-deg 1 holding perso technical tra E |ead1n to a is equivalent \ sity degree iliil Any oth 1er51ty degre W W4 W aorofessmna led. 0.1m in) Any oti °I experience 0* less than level - I‘f-g. admiss‘ ilona| SOCie' IISIIIUiion) 2I‘ IIIIia‘I‘ ari had dijI- a) Wife % Bit 20. What has been the approximate number of research scientists that fit the categories for the following times: Categor When Unit or Dept. l0 years 5 ears ___1 V was first established a 0 ago (Number) (Number) (Number) (i) Professionally trained personnel (degree holding) (ii) Non-degree holding personnel with technical training leading to a diploma that is eguivalent to univer- sity degree (iii) Any other diploma which, in some countries, though of less than uni- versity degree standard, is nationally recognized as qualifying a person as a professional scientist (e.g. D.|.C.T.A.) (iv) Any other training or experience which, though of less than university level of di loma (as specified above) has qual- ified a person to work as a professional scientist (e.g. admission to profes- sional society or institution) 2!. What are the approximate number of research scientists that had duties other than direct research for the follow1ng time periods (e.g. administrative, supervi51ng, etc.) Number App. time spent a) When your Unit or on other duties Dept. was first _ established (a) 3/4 t1me (b) l/2 time (c) i/4 time b) To years ago (a) 3/4 time (b) i/2 time (c) i/4 time At present time (l967—68) (Number) Full—time i lent due dim N N What has fol lowi n! a) When was b) y i0 I\) m * What he ()Ver Th1 a) Whe E 22. 23. c) d) _ 12 - Number App. time spent on other duties 5 years ago (a) 3/4 time (b) l/2 time (c) l/4 time At the present time (a) 3/4 time (b) I/Z time (c) i/4 time Please leave this Section Blank Full—time Equivalent What has been the average number of research technicians employed over the following time periods: a) b) c) d) When your Unit or Dept. was first established l0 years ago 5 years ago At the present time (l967-68) Note: Please restrict technicians to those persons who have received not less than one year of formal technical education, or equivalent part-time study, after leaving secondary school at the non—advanced level. They may also include some persons who have attained the same level of technical training in some other way, without formal education, e.g. within enterprises, or the armed forces. Examples of occupations normally filled by this category of persons are draughtsmen, laboratory assistants, electronics technicians, etc.) What has been the average number of other supporting personnel employed over the following periods: a) b) c) d) When your Unit or Dept. was first established lO years ago 5 years ago At the present time (l967-68) 24. What has ing time N m i j a; ~0— o. O 24. 25. _ i3 _ Note: Please restrict supporting personnel to such persons as skilled craftsmen (electricians, fitters, etc.), and unskilled assistants, directly engaged in research activity including the management and administration of this activity, when this is a specialized function (e.g. secretaries). All three groups exclude indirect labour engaging in providing and maintaining a subsidiary service, such as water, canteen facilities, office cleaning, etc.). What has been the average annual capital outlay for research for the follow- ing time periods: Research B 'ldi Other Capital Total Capital Eguipment ~5LL-—JEEi Expenditure Expenditure ..... ...... ...... $ (W.i.) or E ... ..... ........) a) When your Unit or De t. was first established b) i0 years ago c) 5 years ago d) At the present 1me -6 What do you think the capital outlay for research may be for the following time periods: $ (W.i.) or E a) l968—l969 b) The next 5 years Remarks: (Please indicate whether you feel this amount is adequate or not; and why) h. N ‘. B J What has research . What do ioliowin a) i968 b) The Reme ‘ HOW man Over th ‘ HOW man \ \ \ .1. HOW Him I. 26. 27. 28. 29. 30. _ l4 _ What has been the average annual operational (recurrent) expenditure on research for the following time periods: Salaries & Other Total Operational Allowances Expenditure Expenditure (5...... ...... .$(WI'C) or EIOIDIOOIIOOIIII) a) When your Unit or Dept. was first established b) i0 years ago c) 5 years ago d) At the present time (l967—68) What do you think the recurrent expenditure on research may be for the following time periods: $ (W.i.) or E a) l968—l969 b) The next 5 years Remarks: (Please indicate whether you feel this amount is adequate or not; and why) How many research projects were officially listed as being in progress over the last 5-year period? How many research projects were discontinued over this period? Why? How many research projects do you have listed at the present time? . 3|. In what w developme lncre (i) (ii) a bi ITTCl‘i (lam c) Decry (i) (i i) o. lncr (D Impr less or a ~o~ % ‘. IPIeaSe desi Boxes (e.g. 32. To What a m a) By 3|. -15- PART lV: THE BENEFITS (RETURNS) FROM RESEARCH in what ways do you feel that your research has contributed towards the development of the industry that you represent: a) increased the competitive position of your industry on: -- (i) The Domestic Market I________J (ii) The World Market i______| b) Increased the output per unit of resource used (land, labour, capital, etc.) I I c) Decreased the cost of food to: ~- (i) The Domestic Consumer I I (ii) The Foreign Consumer I I d) Increased the quality of the final product to the consumer I I e) improved the quality of the factors of production so that less factors are used to produce the same level of output or a greater level of output I I f) Other (please specify) (Please designate order of priorities by inserting numbers in the appropriate boxes (e.g. 32. = Highest priority; I 2 I = Second priority, etc.) To what extent would you say that your research efforts have reduced the average annual cost of production for your industry over the past 5—year period? a) By less than 25% I::::::::: b) By 25 — 50% I:I c) By 51 - 75% I___i d) Greater than 75% I:::::::] Remarks: 33. if your i1 last 5 yea reduction aim reduc 3 o —1- :— I93 33. If your industry's cost of production were significantly reduced over the last 5 years, what would you consider to be the major sources of such -I6- reduction: a) b) c) d) e) improved Genetic Component (estimated % contribution to reduced cost (as in 32 above) Substitution of low-priced factors of production for higpjpriced factors of production (estimated %’contribu- tion to reduced cost (as in 32 above) Improved Disease Control (estimated % contribution to reduced cost (as in 32 above) Improved methods of combining ygur factors of production (i.e. your technical inputs, capital, labour, etc. —- estimated % contribution to reduced cost (as in 32 above) Other (please specify) Remarks: ii. if you were to ta estimated annual 0; Improved Gene 0‘ The substitu‘ factors of p1 priced fact01 0 Improved Di 51 ca. Improved metl your factors improved man. capital, lan physical inp <0 Other (p leas. \ K \ Noi; Exter Domes )5' Whai P6rcent of bene 1W te r11 than those you a a) Less Than 25 hi 25 _ 50% c) 5| g 75% Rema\rk3: \ \ 34. 35. - I7 _ if you were to take an average for the last 5—year period what would be the estimated annual savings (in value) from the following: a) b) c) d) e) What percent of your Average Annual _____9_ ($ W.I. or E) (External) improved Genetic Component The substitution of iow~priced factors of production for high— priced factors of production improved Disease Control improved methods of combining your factors of production (i,e. improved management of labour, capital, land and other physical inputs) Other (please specify) Average‘AnnuaI Savings ($ W.I. or E) (Domestic) Note: External = Domestic = within the country outside country (i.e. for the Commonwealth W.i.) research findings would you estimate was of direct benefit (in terms of being useful and available) to farming systems other than those you are directly obligated to serve: a) b) c) d) Less than 25% 25 - 50% 51 - 75% Greater than 75% Remarks: i 36. What percentage c estimate could be a) Less than 251 11 25- 50% C) Si - 75% d) Greater than The following se and as such they to Question 40 i questions are an L“ . Have any attempt research for yoL I i ,' I Yes No v: on If Such an exeri caICUIated? \ \ w \C) X \ a) subStantiaf If a simi lg markef U Break~GVen .- I UneCOnOm I C 36. 37. 38. 39. 40. _ I8 _ What percentage of your industry's problems (at the present time) do you estimate could be solved by research: a) Less than 25% I““"“"I b) 25 - 50% I-—'_—'—_I C) Si — 75% It—I d) Greater than 75% I““““j The following series of questions deals with a specific technical approach and as such they might not be readily answerable. However, if the answer to Question 40 is positive, it would be appreciated if the subsequent questions are answered. Have any attempts been made to estimate rates of return on investment in research for your Unit? 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KITTSM ; TRINIDAD’t ““-—————.__ WEST INDIES AM) GUYANA“: \ Five-year "running averages 11 Tell-year "running averages“ Flfteen_yea average Q “OR ESTATE “FOR 51". R 'COMPUTED SOURSE: we T1 46¢ APPENDIX D TONS SUGAR PER ACRE REAPED, WEST INDIES AND GUYANA 1953—1967 Table 8 Long tons of 2,240 lb. tel quel For crop year in each case 1 YEAR 1 1 1 1 1 1 1 1 1 1 1 1 1 1' COUNTRY 1953 :1954 {1955 {1956 {1957 {195 '1959 11960 {1961 {1962 {1963 {1964 I1965 [1966 1196]; 'r' [A ANTTGUA 2.57 1.21 1.86 2.23 2.15 1.76 2.62 1.69 1.63 1.56 2.14 1.83 1.30 0.77 N.A. BARBADOS 3.50 3.87 3.71 3.22 4.33 3.23 3.92 3.26 3.55 3.23 4.13 3.18 3.96 3.34 3.85 GUYANA* 3.33 3.02 3.28 3.55 3.52 3.62 3.26 3.42 3.03 3.25 3.27 2.72 2.91 2.86 2.99 JAMAICA 2.78 2.90 3.29 3.14 3.16 2.89 2.96 3.03 2.94 2.99 3.28 3.13 3.41 3.17 2.95 ST. KITTS** 3.85 3.50 3.62 3.70 3.31 3.43 3.50 3.87 3.77 3.57 3.37 3.50 3.41 3.12 3.14 TRINIDAD* 3.03 3.10 3.20 2.55 2.81 2.86 2.62 2.95 3.09 2.54 2.84 2.83 3.02 2.69, 2.07 WEST INDIES GUYANA*** 2.86 2.88 3.11 2.94 3.08 2.92 2.96 3.01 2.93 2.88 3.15 2.95 3.12 2.85 2.89 1953 1954 1955 1956 1957 1958 1959 1960 1961 1962 1963 /57 /58 /59 /60 /61 I62 I63 /64 /65 /66 /67 Five—year 2.97 2.99 3.00 2.98 2.98 2.94 2.99 2.96 2.99 2.97 2.97 "running averages" 1953 1954 1955 1956 1957 1958 /62 I63 I64 /65 /66 I67 Ten-year 2.96 2.99 2.98 2.98 2.97 2.96 "running averages" 1953 /67 2.96 Fifteen-year average *FOR ESTATES ONLY. **FOR ST. KITTS ONLY; figures not available for smallholders in Nevis. *COMPUTED FROM other tables and thus would not necessarily reflect the averge of this table. SOURSE: west Indies Sugar Association (Inc-). SWW- Twenty Eight Ordinary Meeting, Barbados, December 16, 1968, p—20 Table 9. 991111111 T9 ANTIGUA 7, 1111111111105 3. GUYANA 11. JAMAICA 9.4 51.10115 3, TRINIDAD 9, —\ 185T INDIES AND GUYANA '3 \\ Five~Year "runnin averages" Te“ year Hl'unnin averages” “f LSen-Yea:- Vera e ‘ C°mPuted f, SOURCE: we“ Twenty Eight 4’66 APPENDIX D TONS CANE PER TON SUGAR, WEST INDIES AND GUYANA, 1953 -1967 Long tons of 2,240 lb. tel quel Table 9. For crop year in each case. ___,_..__,___,______Y_EA._R,_ - ._____________ --.-__,,_ :15.— §9UNTRY‘ 19531 1954 :1955 :1956 :1957§_}958: 1959: 1960_;12§1 71962;:1363 {1964‘ 19§§ju19§6_;19§]_ To“: Cane/ Tons Saga. ANTIGUA 7.63 8.33 8.71 9.42 8.40 9.73 8.63 9.12 9.20 10.18 9.12 9.09 9.66 10.65 11.16 BARBADOS 8.60 8.68 8.57 9.17 8.58 9.95 8.77 8.96 8.64 9.06 8.82 9.14 8.83 9.07 9.10 GUYANA 11.35 11.36 10.73 10.59 10.19 11.12 11.10 10.91 10.74 10.34 10.54 11.40 10.77 11.26 10.96 JAlmICA 9.47 9.63 8.96 9.00 9.40 9.67 10.04 10.30 10.00 9.40 9.35 9.77 9.31 10.13 9.89 ST. KITTS 8.34 8.20 8.14 8.68 8.11 9.07 8.88 8.72 8.44 9.64 8.78 8.65 8.79 8.99 8.51 TRINIDAD 9.82 9.61 9.48 10.18 9.26 10.64 10.07 10.14 10.09 10.47 10.46 9.97 9.99 10.89 10.87 LEST INDIES AND GUYANA ‘9-77 9.82 9.41 9.69 9.42 10.37 10.09 10.28 10.05 9.88 9.81 10.09 9.77 10.34 10.18 Five-Year 1953 1954 1955 1956 1957 1958 1959 1960 1961 1962 1963 ”running /57 /58 /59 /60 /61 I62 /63 /64 /65 /66 f§7 averages" 9.62 9.74 9.79 9.97 10.04 10.13 10.02 10.02 9.92 9.99 10.04 1953 1954 1955 1956 1957 1958 /62 /63 /64 I65 /66 /67 Ten year 9.88 9.88 9.91 9.94 10.02 10.09 ”running averages” 1963 /67 9.93 Fifteen-Year average 9 Computed from other tables and thus would not nesaearily reflect the average of this table SOURCE: West Indies Sugar Association (Inc.), Survey of the Work of the Association 1967—1968. 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