202510082228
Status: #idea
Tags: #history #economics
# Land reform in pre-industrial societies lays the groundwork for industrialization
By breaking up large farms and providing land to tenant farmers, pre-industrial societies can rise agricultural outputs. This leads to:
1. Increased surpluses that allow for more savings (which can then be used to finance industrial investments)
2. Increased consumption in rural communities. Since this is the majority of the population in pre-industrial societies, this consumption is critical to supporting early industrialization efforts
3. Decreased reliance on imports for food. This allows countries to use limited foreign exchange reserves to import technology and equipment rather than food
4. A welfare role for tenant farms, where industrial workers without jobs can go back to the family farm
[[Rising populations in pre-industrial societies lead to tenant farming]]
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# References
[[How Asia works_ success and failure in the world's most dynamic region]]