MALTHUS CONTROVERTED - THE ROLE OF CAPITAL AND TECHNOLOGY IN GROWTH AND ENVIRONMENT RECOVERY IN KENYA

Investment in technological improvements, coupled with management inno vations and skills, are commonly held to lead to growth rates which ou tpace population growth. Although this applies to both industry and ag riculture (Anderson, 1990) typical farm surveys in developing countrie s neglect to analyze fixed investments or the quality of management. T his paper provides a nonmathematical case study and model from Kenya o f the way in which investments in technological change, and especially in land improvement, have enabled rural incomes per capita to grow su bstantially, with improved environmental conservation, through the int eractions of increased population density, improved information and ma rket opportunities. Population density and investment are shown to be critical interrelated factors. Investments require maintenance expendi tures. These are included in social cost-benefit analysis, but it is n ot always realized that labor on maintenance may have a rising opportu nity cost, which farmers take into account when selecting technologies . Although the major part of expenditures are made and managed by farm ers, government investments to stimulate and complement them are requi red. As on the farm, this requires wise management of recurrent and ma intenance costs, if the benefits of investment are to be lasting.