What is the role of agriculture in a command economy?

Economics Command Economy Questions Medium



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What is the role of agriculture in a command economy?

In a command economy, the role of agriculture is primarily determined by the central planning authority. The government controls and directs the production, distribution, and pricing of agricultural goods and services.

The main objective of agriculture in a command economy is to ensure food security and meet the basic needs of the population. The government sets production targets and allocates resources, such as land, labor, and capital, to the agricultural sector based on its priorities and goals.

Agriculture also plays a crucial role in supporting other sectors of the economy in a command system. It provides raw materials for industries, such as textiles, food processing, and biofuels. Additionally, it contributes to the export sector, generating foreign exchange earnings for the country.

In a command economy, the government may implement various policies and measures to support and promote agricultural development. This can include providing subsidies, price controls, and incentives to farmers, as well as investing in infrastructure, research, and technology to increase productivity and efficiency in the sector.

However, the command economy approach to agriculture has its limitations. Central planning may lead to inefficiencies, as the government may not have accurate information about consumer preferences, market conditions, or the specific needs of farmers. This can result in overproduction or shortages of agricultural goods, leading to imbalances in supply and demand.

Overall, in a command economy, agriculture serves as a vital sector that ensures food security, supports other industries, and contributes to the overall economic development of the country.