The political economy of agriculture for development today: the 'small versus large' scale debate revisited.

The role of agriculture in economic development and the development politics of promoting smallholder versus large-scale agriculture have both been at the center of a long-lasting and controversial debate. Using an innovative methodology which combines a value chain approach with input-output-analysis, the growth multipliers and productivity of both farm types in Guatemala are analyzed. Results show that smallholder agriculture has the same potential to stimulate output growth as large-scale agriculture. Smallholder value chains include mainly informal sectors and create more jobs than commercial agriculture. Therefore, a reorientation of agricultural and land policies toward small-scale food producers and within a comprehensive policy of integrated rural development is not only necessary in terms of social equity but also for boosting economic development. [ABSTRACT FROM AUTHOR]