As the economic development of a country occurs, and its income per capita rises, an economic transformation takes place. The importance of both production and employment in agriculture, as proportions of total production and total employment, declines. This structural transformation of the less-developed economy from one dominated by agriculture to one dominated by non-agriculture has occurred in every country which has experienced a sustained rise in income per capita. Because the transformation has occurred in every successful development effort so far, we have reason to suspect that structural transformation is a concomitant of economic development, and will occur in the future as the less-developed countries experience economic development.