ABSTRACT
This chapter examines the changes that occur in regions in transition from a subsistence or low-surplus agricultural economy to a commercial and more diversified one. It focuses on essential factors to increased agricultural productivity and the roles of cities and towns in regional development. In nearly every developing country, five factors affect the pace of agricultural development: markets for farm products, changing technology, local availability of supplies and equipment, production incentives for farmers and transportation. As regions are transformed from subsistence to surplus production economies, periodic marketing systems are also transformed and consolidated into commercial marketing systems. Market towns, small cities and large urban centers come to play a crucial role in providing farm inputs and absorbing agricultural products. Strengthening the functions of urban centers must be done carefully, incrementally and strategically in most developing countries. Not all towns and cities in a region can or should have a full range of services, facilities and infrastructure.
