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AJ Du Plessis VOL. 8 No. 2 APRIL, 1969 Editorial Committee: A.J. du Plessis (chairman), Dr. A.P. Scholtz, H.J. van Rensburg and O.E. Burger Editor: Dr. A.J. Beyleveld Technical editing: Q. Momberg REQUIREMENTS FOR CONTRIBUTIONS Articles in the field of agricultural economics, suitable for publication in the journal, will be welcomed. Articles should have a maximum length of 10 folio pages (including tables, graphs, etc.), typed ln double spacing. Contributions, in the language preferred by the writer, should be submitted in triplicate to the Editor, c/o Department of Agricultural Economics and Marketing, Pretoria, and should reach him at least one month prior to date of publication. The Journal is obtainable from the distributors: "AGREKON", Private Bag 144, Pretoria. The price is 25 cents per copy or R1 per annum, post free. The dates of publication are January, April, July and October. "AGREKON" is also published in Afrikaans. Page I. EDITORIAL 1 II. ECONOMIC TENDENCIES IN THE SOUTH AFRICAN AGRICULTURE .• • 2 III. ARTICLES 1. Decentralization of activities 4 P.S. Rautenbach, Planning advisor to the Prime Minister 2. Principles of rural development 10 P. C. Fourie, Chairman, Planning and Development Advisor Board of the Orange Free State, and D.J. G. Smith, Director, Institute for Social and Economic Research, University of the Orange Free State 3. Social and demographic characteristics of rural areas 14 SP. Cilliers, Professor in Sociology, University of Stellenbosch 4. The organisational structure for the planning of national and sub-national development 24 Viljoen, Department of Urban and Regional Planning, University of Pretoria 5. Features of the economic growth and development of rural areas .• • 27 H. A. Kotze, Professor of Agricultural Economics, University of the Orange Free State 6. Service areas and rural development 40 P.J.D. du Toit, Senior Lecturer, Institute for Social and Economic Research, University .of the Orange Free State 7. Farm management - a prerequisite for sound agricultural development 54 H.S. Hattingh, Assistant Chief, Division of Agricultural Production Economics IV. STATISTICS 60 11 ved em I is Features of the Economic Growth and Development of Rural Areas ent re- To- tee by uld ds. ire H.AAI_COTZE, ire Professor of Agricultural Economics, lso University of the Orange Free State ent lar ids rst 1. THE GENERAL NATURE OF complexes with their various economic activi- THE PROBLEM ties have divided the country into fairly distinct .11y urban and rural areas. In many areas depopu- gle lation has taken place. While certain places the In South Africa as well as abroad people lacked employment opportunities, such opportu- rt- have recently developed greater consciousness nities were abundant in other places. Differential ion of the economic status of their environments. income opportunities have developed. Improved ion This consciousness arises mainly from the rapid transport and communication systems have de- , I Pace of change which has taken place in all veloped, more so in some parts of the country Spheres. Large and rapid changes in the economic than in others. Farming has generally become field is a normal feature in South Africa at more commercialised as well as mechanised. present. These changes are spectacular and par- Changes in the size of farms have also taken ticularly obvious in the larger urban centres, place. In farming areas there has been a certain although the rural areas have not remained un- a complete change in the type of farming to- iis influenced in the process. In fact, many rural gether with tendency towards larger farming ,ed the communities are experiencing changes which units. The rural mode of life has not remained it- Penetrate the very core of their economic exis- unchanged. modern means of communi- iii tence. Through cation and factors farmers have become he other less secluded and came in closer contact with During the past few decades there has been the cities. They Are no longer satisfied with led , Freater realization that "economic development inferior services and the secluded existence of on is. never an even process."1) Some old indus- the past. The rural populations demand better ity tries have expanded greatly, new ones have been roads, schools, medical, hospital and other ser- he e stablished and have developed rapidly through vices. Farmers are prepared to travel longer he the growing prosperity which has created new distances to purchase, sell or attend to other be demands for commodities, while there are others needs. s- Which have stagnated or even disappeared.2) it S imilarly economic development has not proceed- !al ed In many rural areas a feeling has taken root at the same pace in a geographical sense. rn that they have not kept pace with areas which Certain areas in South Africa have developed ,a, have experienced population concentrations and more rapidly than the rate for the country as a al offer a variety of economic activities. Under Whole, while others have developed at a slower - such circumstances reference has been made rate. In some areas there has been no growth or to economic backwardness. It is wrong simply the growth has even been negative. lg to brand an area as economically backward with- 1- out first making a careful evaluation of the re- These changes are revealed in the large levant situation. PoPulation movements which have taken place iii South Africa, particularly as from the second half of the nineteenth century.3) Large urban Robertson points out that retarded economic )- development is a symptom found in many coun- ig tries. "Significant regional differences in income and employment levels exist in even the most highly economies, it 1) developed and may be the re- Robertson, B.C. Regional Development in the sult of underdevelopment or depression. The td European Economic Community, Political and typical underdeveloped region, with little or no Economic Planning, 16 Queen Anne's Gate, industry, has an extremely high proportion of its 1, London, 1962, p. 13. active population engaged in agriculture; income 2) per head is low, and underemployment rather Schultz, T.W. The Economic Organization of. Ti than employment tends to be the problem.") Agriculture. McGraw Hill Book Co., Inc., ,o New York, 1953, p. 146. 3) Grosskopf, J.F.W., "Plattelandse verarming en plaasverlating". Die Armblanke-vraagstuk Suid-Afrika. Verslag van die Carnegie- Kommissie, Deel I. Stellenbosch, 1932. 4) Robertson, B.C., op. cit., p. 13. 27 This description of an underdeveloped area The phenomenon of sub-national differential clearly emphasises low per capita income and economic development is a difficult problem which underemployment found in areas with little or no is becoming more pronounced. There is an in- industry, where the entire or majority of the creasing need for more knowledge of, and better population is engaged in agriculture. It must insight into, the causes, the nature, the extent be borne in mind that such an area may within and implications of this problem of uneven de- the overall national development programme, velopment between specific areas. "This is a have outstanding latent development possibilities field in which action programs seem to have which for some reason or other have remained grown at a much faster rate than the underlying unexploited. Welch stressed the complex nature knowledge essential to their effectiveness.") ha of the problem of retarded economic development There are approximately 45 regional development found in sub-national areas as follows: "The associations in South Africa whose object it is ru web of causation is so intricate and to cultivate an awareness and a sense of regional an runs off is in so many directions that one is hard development in their communities, to promote put to ha say anything intelligent about it. It is at once the, development of their regions and to present In a problem of education, a problem of political a co-ordinated view to all responsible bodies ru organization, a problem of culture and social in their areas. These development associations ha interaction of people, a problem of motivations, were established through the initiative of private th a problem of science and technology and their individuals and local bodies. It is essential that adaptability to local conditions and also a problem these associations should gain knowledge of the of low quality and limited resources in relation development potential of their own regions. "In 2, to population as well as philosophies and order to determine and outline broadly the de- values". 5) sirable direction of development, all knowledge concerning the available and potential natural resources must be pooled. Where such knowledge All rural areas where farming is the main is insufficient - as it is in many countries, and industry and where the largest portion of the especially in a young country like the Union - re- population is concerned with agriculture should o: search is a necessary prerequisite in establishing however not be classified as areas fi subject to the basic facts before the co-ordinated pattern retarded economic development. There are agri- of resources development can emerge".8) cultural areas where the level of prosperity safe- a ly enables such areas to be classified as economi- t: cally developed. Such areas do, however, have In order to promote the optimum develop- a their development problems which need to be ment of a particular rural area it is essential identified and solved. One must thus distinguish that on the basis of a complete evaluation of the between areas with development problems, as situation, the adaptation to changed circumstances mentioned, and those areas which are burdened must not be delayed, but must be undertaken with retarded economic development. The former with the least possible disruption. With this in region or area is one which is well developed view the following aspects should be investigated: so that its problems are those of adapting to 1 further national economic progress6) and the (i) The underlying economic forces which may utilisation of new possibilities for development influence such a region must be identified; which may arise.
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