Theoretical issues of agricultural economics

This is the first of the two complementary volumes on Agricultural Economics. The first deals with the "Theoretical Issues of the Agricul tural Economics" and the second with the "Policy Issues of the Agricultural Economics".

Theory is rigorous and enduring and is to be understood first before instant research papers are produced. Policy Issues change in the light of the socio-economic-political needs of the country. The performance of the economy can be studied and conclusions can be drawn more for the appropriate changes in the policies than in the theory.

Agricultural economics is a part of the economics of the primary sector. If the first thing is to be first, then development of agriculture is the sine qua non of economic development. Its development accords with the hedonistic principle of development-the greatest good of the greatest number. Nowadays there is great demand for literature on agricultural economics from the politicians, statesmen, financers, bankers, technocrats and managers.

Theory is rigorous but not archaic. It is not to be "pooh poohed" and it is a pity that sometimes producers of the "instant research papers" betray the ignorance of the pure theory and policy issues involved. Theory is very important and we can quote John Sjo:

An academic discipline is based on a body of fundamental knowledge referred to as theory. In agricultural economics we must understand theoretical concepts before we can effectively use theory to solve problems. One should guard against falling into the trap of believing applied economics being more practi cal than theoretical economics. Application is relevant to a specific problem only so long as the problem lasts. Understanding the theory underlying the application remains

with one after a specific problem is gone. Theory can be applied again and again when similar problems arise. Applied science has shorter usefulness than theoretical science. Theory gives the basis for solving problems. Theories are built up through obser vations, as well as logical reasoning. Theory permits one to abstract from reality so that one variable can be studied by itself. The real test of a theory is how well it describes reality and how useful it is in solving real world problems. Theories simplify complex relationships, provide basis for problem identi fication, for classification and for problem solving.

Search is necessary before 'research'. Sometimes in order to prove that 'research' has been done, the already searched matter is "misplaced" and reported "lost" and is then "researched"! Under this system a paper is written in which paragraphs are made out of the sentences lifted from other 'papers'. Caution is necessary against such practices.

However, it can also be conceded that study of the economy is more important than that of economics. A study of the theory can degenerate into a study of pedagogic value only. "Knowledge for the sake of knowledge", use of purile mathematics, and pedantic parade of algebra and geometry can also be of limited value. Armchair knowledge cannot deliver social goods. The views of the 'contras' are a so to be taken note of.

Agricultural economics is not historico-relative; it is universal. However, agricultural policies are related to space and time. Politics of the country profoundly decides the policy issues, sometimes to the detriment of the common people and for the benefit of the vested economic lobbies. Policies are not sacrosanct and can be changed with t he changing requirements. It should be the key to the lock that should be changed and not lock to the key. Policies which openly flout the fundamental economic principles and laws are bound to fail, irrespective o the type of government or economic systems. The dis cussion of the theories and analysis of the empirical evidence requires theoretical underpinning.

Volume One and Volume Two of this book are complementary and present theory and policy issues respectively. Empirical researches have also been consulted and their inferences incorporated in the volumes. Micro and macro aspects of the enduring theory have been juctaposed. The space-approach, the sectoral-approach and the targeted group-approach have been taken note of.