Technical and economic criteria in agricultural production: A case for a systems approach to farm decision-making in the Pakistan Punjab

This paper defines the criteria of ‘technical’ and ‘economic’ efficiencies. The relationship between these criteria is identified, and its implications are discussed. These two sets of criteria do diverge, with ramifications both at the farm and the national levels. An illustration of their relationship at the farm level is provided by examining the nature of water allocation to crops in the Punjab of Pakistan. The divergences that exist between ‘technical’ and ‘economic’ efficiencies at both farm and national levels are highlighted by considering the process of mechanisation in the Punjab in some detail. Finally, it is pointed out how a ‘systems approach’ can accomodate both the technical and economic criteria and their interaction.