find the fall in price of rice lead to the rise of rural indebtedness
Answers
Poverty is perhaps a major cause for rural indebtedness. The low level of rural incomes, the uncertain and primitive farming of small landholdings makes it impossible to meet the needs required for their living. Often, the rural people take debts to meet these needs.
One of the major problems concerning to the rural society is indebtedness. This problem is just not related to one individual but is passed on from one generation to the next generation. Taking or incurring debt for the purpose of agricultural production is indeed necessary as it contributes to production.
However, the rural people incur debts for nonproductive purposes such as to meet the family needs, perform social functions (related to marriages, birth, death), litigation, etc. Since money taken does not contribute to production but instead to consumption, it drags the rural people into indebtedness.
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❤. Two thirds of the rice production in vietnam is exported.
❤. By that time it was the third largest exporter of rice in the world.
❤. Great depression of 1929-30 had a great negative impact on vietnam.
❤. The prices of Rice and Rubber had fallen drastically and there was rise in rural indebtedness.