chapter  5
Erosion
Pages 68

When we dealt with the efficiency of the marketing system in Chapter 4, efficiency was defined in a static technological sense. The marketing system for export goods, subsistence goods and peasant consumption goods was deemed efficient in that it appears to provide its services at a minimum expenditure of productive resources, given certain constraints within which the system has to operate. Technological, static efficiency in the marketing system does not, however, guarantee that per capita incomes will not fall in peasant agriculture. Although the conditions for both technological and economic efficiency may prevail throughout the economy in such a manner that it is not possible to increase the production of any single good without having to reduce the production of some other good, and in addition the economy produces goods and services in quantities compatible with the preferences of the consumers of the economy, it is still not possible to guarantee that peasant incomes will not fall. In order to satisfy this condition, dynamic efficiency may be required as well.