The economic and environmental productivity of agriculture in the process of development

The paper reviews the economic theories that describe the relationship between agricultural productivity growth and economic development. Historical examples of such relationships are also presented. The review proves that improvements in the productivity of agriculture is a precondition for economic development and its catalyst. The article also describes a negative impact of agriculture industrialization on the environment. The present process of extending the traditionally understood economic sense of productivity to ecological aspects is also explained. Furthermore, the author presents how increase in environmental productivity of agriculture can be a catalyst for development, analogous to the past increases in economical productivity. Calculation of environmental productivity has been presented as a still unsolved problem. A short review of methods and metrics used as so far gives general idea about the future area of compromise in that field.