ABSTRACT
This chapter examines the role of the agricultural sector in economic growth in the light of its declining share of overall economic activity. Lessons are drawn from the experience of the United Kingdom compared with other developed economies, focusing in particular on the contrasts with the USA and Germany. The share of agriculture in economic activity was bound to decline, given the relatively low-income elasticity of demand for food. Although protectionist policies were used to slow down the shift of resources out of agriculture in Germany and in other European countries, these policies had some serious consequences for overall productivity performance.
