THE RELATIONS BETWEEN ADDED VALUE AND WEALTH IN THE ANALYSIS-DIAGNOSIS OF AGRARIAN SYSTEMS

Abstract

The Analysis-Diagnosis of Agrarian Systems (ADSA) is a method used in rural extension and in research on local dynamics of agriculture. In this method, it is normally considered that adding value is equivalent to generating wealth. The article aims to analyze the problems caused by considering added value as an indicator of the production of wealth in ADSA. A formal demonstration that added value and wealth are distinct is carried out using a linear programming model, based on historical materialism. This demonstration is illustrated by a numerical example and, afterwards, the relations between added value and wealth are discussed based on the analysis of some works that use ADSA. It is concluded that a widespread adoption of production systems with a high capacity to add value, as generally proposed from the ADSA, may imply a decrease in the production of wealth. However, criticism of this aspect of ADSA does not imply underestimating the great relevance of this method of regional analysis of agriculture.

Keywords

• economic calculation
• rural extension
• sustainability