Exploring sustainable production systems for agriculture: Implications for employment and investment under north-south trade scenario

Trade liberalisation leads to increasing exports, especially of primary products, from developing to developed economies. While the growth in export generates additional employment in rural areas, it also brings into its fold rapid exploitation of natural resources, which in the long run may hamper the very potential of growth in the sector. On the other hand, developed economies end up using more of mechnical-chemical inputs in order to minimise use of labour in the primary sector, which is generally, in short supply in these economies. Ideally, trade liberalisation should facilitate movement of farm workers from developing to developed economies as has been experienced historically. The paper argues that restricting the mobility of labour from developing economies is not only trade distorting, but also non-conducive for management of natural resources both in developing as well as developed economies. Since there are socio-cultural and political difficulties, besides environmental considerations, in promoting free movement of labour beyond a limit, it would be appropriate to harp on comensatory flow of investible funds from developed economies. This, in turn, could expidite the process of regeneration of natural resources and thereby ensure sustainable growth, as well as welfare of a large proportion of rural population in developing economies.