Does Your Garden Grow

Does Your Garden Grow

The purpose of this essay is to analyze economic growth, focusing on the factors that promote long-term development, based on the article "How does your garden grow?" from The Economist (November 3, 2018), while incorporating concepts from Chapters 11 & 17. Economic growth refers to the increase in a country’s output of goods and services over time, commonly measured by the rise in gross domestic product (GDP). Economists consider growth vital because it improves living standards, reduces poverty, and fosters technological progress. Growth is often quantified through GDP per capita changes, and sustained growth indicates a healthy, dynamic economy capable of innovating and adapting to changing circumstances.

Comparing the first paragraph of the article to Robinson Crusoe’s economy reveals similarities in the determinants of productivity. Crusoe’s economy depends heavily on his capital and labor, such as tools and skills, which influence his ability to produce goods. Similarly, in the article, Mr. Shumulo’s success hinges on factors like access to better technology, infrastructure, and knowledge—these are components of productivity determinants discussed in Section 17-2b. For example, the article notes that improvements in seed varieties, access to fertilizer, and market access are helping Mr. Shumulo replicate Robinson Crusoe’s modest productivity gains. These factors enable him to increase his output, akin to Crusoe’s effective use of tools, skills, and resources for better production.

Regarding the role of government in supporting growth, especially in agriculture, the material from Chapter 11 emphasizes policy measures such as providing infrastructure, securing property rights, and offering education and technology transfer to boost productivity. Governments should foster an environment that encourages investment and innovation in agriculture, which is crucial for long-term growth. In Africa, the effectiveness of government support has been mixed; some countries have implemented policies that promote agricultural productivity, but challenges such as corruption, inadequate infrastructure, and political instability hinder progress. As a result, many farmers, like Mr. Shumulo, still operate under difficult conditions with limited access to markets and resources. Therefore, strong government roles are essential for enhancing agricultural development, especially by addressing structural issues and ensuring a stable policy environment.

Concerning whether democracies are better for growth than dictatorships, the article provides some insights. The last section suggests that democratic countries may tend to implement more effective policies that support economic development compared to authoritarian regimes. This aligns with the view discussed in class, which argues that democratic governments are more responsive to citizens’ needs, increasing incentives for policymakers to pursue growth-promoting reforms. The article notes that some African democracies have shown promising growth trajectories, although progress remains uneven. Overall, the evidence presented supports the idea that democratic institutions foster better economic policies conducive to growth, but success also depends on effective governance and institutional quality.

Paper For Above instruction

Economic growth is a fundamental concept in understanding how economies develop over time. Economists define growth as the sustained increase in a country's output of goods and services, primarily measured by gross domestic product (GDP). This increase reflects improvements in productivity, technological innovation, and capital accumulation. Growth is considered essential because it raises living standards, reduces poverty, and enables societies to allocate more resources toward health, education, and infrastructure. Measuring growth involves tracking changes in real GDP or GDP per capita over periods, allowing for comparisons across nations and assessing long-term development trends. Economists emphasize that sustained growth not only reflects economic health but also provides resources necessary for investments in human capital and technological progress, which are key drivers of future growth (Mankiw, 2014).

The initial paragraph of the article contrasts with Robinson Crusoe’s economy by illustrating how productivity determinants influence economic outcomes. Robinson Crusoe’s economy relies heavily on his tools and skills—elements of capital and labor—that determine his productivity. Similarly, the article highlights how factors like access to better seeds, fertilizers, and markets help Mr. Shumulo enhance his productivity. These are classic determinants of productivity discussed in Section 17-2b, which include physical capital, human capital, and technology. The article notes that by adopting improved agricultural inputs and infrastructure, Mr. Shumulo increases his output, exemplifying how improvements in productivity determinants drive economic growth at the household level, akin to Crusoe's efficient use of his available resources.

The role of government in fostering growth, especially in agriculture, is central in the academic understanding of development economics. As articulated in Chapter 11, governments are pivotal in providing infrastructure, secure property rights, and access to education and technology, all of which facilitate increased productivity. Governments should implement policies that create an enabling environment for investment and innovation, thereby supporting sustainable growth. In Africa, the effectiveness of government intervention varies; some countries have made strides by investing in roads, markets, and extension services, while others face corruption, political instability, and inadequate infrastructure that hinder progress. These challenges limit farmers’ access to markets and inputs, constraining development. Consequently, government support remains critical for overcoming structural barriers to agricultural and overall economic growth, especially in rural areas like Butajira and Gulu, which face significant development hurdles (World Bank, 2017).

The assertion that democracies tend to sustain better growth than dictatorships aligns with some empirical evidence and theoretical reasoning discussed in class. Democratic regimes, with their checks and balances, are more likely to create transparent policies and promote accountability, leading to better economic policies that encourage investment and innovation. The article mentions that some African democracies exhibit stronger growth patterns, supporting the idea that democratic institutions support economic development. Nonetheless, the article also acknowledges that democracy alone does not guarantee growth—effective governance and institutional quality are crucial. Overall, the evidence in the article reinforces the argument that democracies, through better policy formulation and institutions, tend to foster environments more conducive to sustainable growth compared to authoritarian regimes (Acemoglu & Robinson, 2012; Levitsky & Ziblatt, 2018).

References

• Acemoglu, D., & Robinson, J. A. (2012). Why Nations Fail: The Origins of Power, Prosperity, and Poverty. Crown Business.
• Levitsky, S., & Ziblatt, D. (2018). How Democracies Die. Bloomsbury Publishing.
• Mankiw, N. G. (2014). Principles of Economics (7th ed.). Cengage Learning.
• World Bank. (2017). Africa’s Infrastructure: A Time for Transformation. World Bank Publications.