- 5-


to a dramatic take-off in agriculture. This phenomenon is more likely to

occur when the increases in income lead to patterns of capital formation and

investment in agriculture which strengthen its productive capacity.

 5. Changes in Motivation of People. The motivations of people, not

merely farmers but also those serving farmers and the elite, are often central

to development. Attitude toward change and the spirit with which individuals

approach development can be affected by a number of variables producing a

heightened sense of dedication, willingness to make changes, altered patterns

of behavior and changes in the objective functions (goals) of people. Causes

of such changes in the past have been wars, achievement of independence, and

major revolutions which altered the balance of political power.

 6. Changes in Institutions. 1/ Changing the "rules of the economic game"

and "access to the game" can often have a major impact upon the pace of develop-

ment. Despite the mixed evidence,land reform is usually cited as an institutional

change which can effect dynamism in agriculture. Similarly cited examples

are an increase in the political franchise of rural people and the development

of local financial institutions adequate for external linkage to national

capital markets. Such changes significantly alter the institutional context

within which the economic processes are carried out.

 7. Changes in Knowledge of the Development Process. A final variable

which we tend to ignore is the change in knowledge of the development process.

We are apt to forget how much our knowledge of the process of development has

grown in the past twenty years. While we do not know all the answers, there is

little doubt that there has been substantial progress in what is known about


1/
 SThe conceptual delineation of "institutions" and their role in development
is a needed, though difficult, task in which my colleague Dr. Weisblat
is engaged.