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Mr. Mahmood Hasan Khan and Mr. Mohsin S. Khan
Agriculture remains the dominant sector in the economies of most Sub-Saharan African countries. However, the experience of agricultural growth in the region stands in sharp contrast to the robust performance of agriculture in many Asian countries, particularly China. In a number of African countries, labor productivity has fallen and land productivity has not risen significantly. In China, on the other hand, land and labor productivities have increased steadily over the past two decades. An examination of factors underlying the contrasting experiences of China and countries in Sub-Saharan Africa reveals important differences in the institutional and policy environments affecting the use of new and profitable technologies to raise land and labor productivities.
Mr. Mahmood Hasan Khan and Mr. Mohsin S. Khan

Agriculture remains the dominant sector in the economies of most Sub-Saharan African countries. However, the experience of agricultural growth in the region stands in sharp contrast to the robust performance of agriculture in many Asian countries, particularly China. In a number of African countries, labor productivity has fallen and land productivity has not risen significantly. In China, on the other hand, land and labor productivities have increased steadily over the past two decades. An examination of factors underlying the contrasting experiences of China and countries in Sub-Saharan Africa reveals important differences in the institutional and policy environments affecting the use of new and profitable technologies to raise land and labor productivities.

Michael M. Cernea

irrigated land, those with rainfed land, and those with wage earnings. As might be expected, investment priorities were different for the three groups. Those with irrigated land emphasized the need for technical assistance and marketing; those with rainfed land gave priority to irrigation; and those with no land but cash earnings proposed investments that did not involve landownership, such as agro-industry and hog farms. Not surprisingly, investment requests put forward by farmers during such field diagnoses are often different from those proposed by the technical

International Monetary Fund. External Relations Dept.
This paper reviews the increasing private capital flows to less developed countries. The share of developing countries in the foreign direct investment is small, perhaps less than 30 percent of the total. The effects of this decline in the volume of foreign investment and the continued problem of capital flight have been aggravated by the serious fall in commercial bank lending to developing countries as a group and by a decline in official development assistance.