ABSTRACT
This chapter examines critically the thesis Professor Schultz has developed in his celebrated book, Transforming Traditional Agriculture [1964]. It examines the economic logic underlying Schultz' thesis. The author's contention is that Schultz has neglected or missed the consequences of population growth and hence has arrived at an oversimplified understanding of the causes underlying traditional agriculture. The chapter indicates how, once we explicitly take into account the consequences of population growth, the complexity of the phenomenon becomes evident. In the economic logic developed by Schultz, there is discernible apparently another variation of this "Game of Concealing Factors" and which, for want of a better name, the author may call the "Game of Missing Factors." The chapter examines the situation in the other sector—namely the one that, burdened with excessive population, does not produce any surplus over its subsistence.
