The present article deals with issues that have too often been dis- cussed in terms of the false dichotomy of agricultural vs. industrial de- velopment. The approach adopted here is to examine the interrelation- ships between agricultural and industrial development and to analyze the nature of agriculture's role in the process of economic growth. Diversity among nations in their phjrsical endowment, cultural heritage, and historical context precludes any universally applicable definition of the role that agriculture should play in the process of economic growth. Nevertheless, certain aspects of agriculture's role appear to have a high degree of generality because of special features that characterize the agrictiltural sector during the course of develop- ment. The nature of agriculture's role is, of course, highly relevant to determining the appropriate "balance" between agriculture and other sectors with respect to (1) direct government investment or aids to investment, (2) budget allocations for publicly supported research and education-extension programs, and (3) the burden of taxation levied on different sectors.