Institutional Reform and The Development Policy to Enhance Labour Freedom and Efficiency in The Agricultural Sector - An Emphasis on Developing Countries Perspective

The paper analyzes the concept of labour freedom in the agricultural sector empowering with the ownership rights, legal approvals and autonomy of choices involving policy changes in the rural development thereby giving more opportunities and choices to the rural labour. Institutional reform redistributes the ownership rights of landholding among the small, marginal and landless labourer. The reform has provided partial possession rights to tenants’ and amended land rental agreements improving the bargaining capacity of the renters and made them capable to extract the lease while making contracts with the landlords. The paper focuses on the requisites of rural development policy to explore the farm-jobs and off-farm job opportunities thereby enhances labour freedom, rural wages and employment rate affecting the labour mobility. In the developing countries, rural development programme has responded to implement employment policy increasing rural employment with off-farm jobs to jobless workers in the local rural area. Labour freedom in the agricultural sector has implications on the economic development perspective as the concept of freedom is grounded upon the principle of equity and efficiency, subsequent to that institutional reform has provided equal freedom and opportunities to the rural labourer that has boosted up the growth and efficiency of the agricultural sector. The paper has suggests the policy makers to emphasize more on the rural development to reduce migration of labour for job, family education, health and better infrastructure. The provision of labour freedom establishes to build up capabilities among the rural labourer, farmers and migrant workers thereby raises living standards through reducing the rural poverty level and leading to the transforming of the rural sector.