Study On Globalization And Agricultural Development

The study intends to assess effects and impact of globalization on economic development in Sri Lanka, with special reference on effectiveness of globalization on non-plantation agriculture. The essences of the study based on reviewing key factors affected for agricultural globalization and consequence effects on economic growth in Sri Lanka in the past four decades. Thus, the foremost objective was focused to review the effectiveness of agricultural globalization as a potential strategy of economic development of Sri Lanka. It also based on studying four specific objectives such as measuring effects of globalization in accordance with some key indicators such as trade openness, foreign investment in agriculture, transfer of technology, introduction of new crop verities and imports etc, reviewing theoretical base, policies and programs followed for economic and agricultural globalization in Sri Lanka, assessing implications and potentials and suggesting necessary policy measures. The study consists of eight chapters including literature review and concluding remarks. The essence of the methodology was based on testing six Hypotheses related to agricultural globalization such as access to trade, foreign direct investment, technological intensity and labor immigration, effectiveness of economic growth and technological convergence, effectiveness of improving domestic agriculture and food security, and impact on agro industrialization. Test of hypothesis were based on two economic models namely, Solow's new growth model and agricultural globalizations indices model developed in China. It also measured growth and development indicators such as rate, poverty index, cropping intensity, self sufficiency ratio and growth of agro based industrialization.The analysis reveals a very clear picture of on going process of globalization indicating both positive and negative results. Thus, of six null hypotheses tested, two were rejected and four were accepted. H1 and H2 which related to effects of key globalization indices and catch up of technological advancement in economic growth were rejected indicating that a promising trend in agricultural globalization in Sri Lanka. Remaining hypothesis related to eradicating poverty, increasing production and productivity of non plantation agriculture, maintaining food security and developing rural agro based industries were accepted implying that globalization has not positively contributed to develop these sectors. Thus, overall impact of globalization on sustainable economic development is unpredictable despite its promising trend as a green device of economic development. The study highlights six implications, which need to be addressed essentially by policy makers. It includes low production efficiency, raising comparative disadvantage, decreasing food security, reducing labor absorption and increase labor productivity, influence of multi national corporations and the reality of globalization and small holding farming sector. The extensive SOWT analysis based on overall implications indicated both opportunities and challenges to be concerned in strategic planning. Accordingly Schematic presentation highlights the means and strategies to be followed to access international market both in terms of regional and global market strategies. It emphasizes the need for creating awareness among stakeholders through an effective approach of technological, institutional, informational and developmental programs.The study reveled that globalization has tremendous potentials for gaining rapid economic growth in Sri Lanka, if it properly device to absorb surplus labor in agricultural sector which is the critical factor of Sri Lankan economic issues. It is obvious that globalization through commercialized agriculture is necessary. Though it is not a sufficient condition for economic development, its contribution is necessary for economy not because of maintain balanced growth, but because of employing rural labor force, rural urbanization and maintaining food security for the entire socie...