As discussed in chapter 5, given that a large share of output or of the labor force is still in agriculture in many Asian countries, any development program will have to consider the situation in this sector. The traditional literature on structural change argues that the key to the development of agriculture is the transfer of resources, labor particularly, into industry and services. I have argued that insofar as the other sectors of the economy do not absorb fully the surplus labor in agriculture, conditions must be improved in the countryside to achieve full employment of the labor force. The transfer of labor to other sectors requires investment (to lift the capacity constraint discussed in chapter 2) for industrialization.