Transforming the Rural Nonfarm Economy: Opportunities and Threats in the Developing World
Contrary to conventional wisdom that equates rural economies with agriculture, rural residents in developing countries often rely heavily on activities other than farming for their income. Indeed, nonfarm work accounts for between one-third and one-half of rural incomes in the developing world. In recent years, accelerating globalization, increasing competition from large businesses, expanding urban markets for rural goods and services, and greater availability of information and...
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Contrary to conventional wisdom that equates rural economies with agriculture, rural residents in developing countries often rely heavily on activities other than farming for their income. Indeed, nonfarm work accounts for between one-third and one-half of rural incomes in the developing world. In recent years, accelerating globalization, increasing competition from large businesses, expanding urban markets for rural goods and services, and greater availability of information and communication technology have combined to expose rural nonfarm businesses to new opportunities as well as new risks. By examining these rapid changes in the rural nonfarm economy, international experts explore how the rural nonfarm economy can contribute to overall economic growth in developing countries and how the poor can participate in this rapidly evolving segment of the economy. The authors review an array of recent studies of the rural nonfarm economy in order to summarize existing empirical evidence, explore policy implications, and identify future research priorities. They examine the varied scale, structure, and composition of the rural nonfarm economy, as well as its relationship with agricultural and urban enterprises. And they address key questions about the role of public intervention in the rural nonfarm economy and how the rural poor can participate in and navigate the rapid transition underway in rural areas.The contributors offer new insights to specialists in rural development and to others interested in overall economic development.This book is the product of a joint study by the International Food Policy Research Institute and The World Bank.Contributors:Raisuddin Ahmed, Christopher B. Barrett, Julio Berdegué, Paul A. Dorosh, Steven Haggblade, Peter B. R. Hazell, Eric Hyman, Peter Lanjouw, Carl Liedholm, Donald C. Mead, Richard L. Meyer, Anit Mukherjee, Keijiro Otsuka, Thomas Reardon, Mitch Renkow, Kostas Stamoulis, and Xiaobo Zhang.
List of Figures xiList of Tables xiiiList of Boxes xviiForeword xixAcknowledgments xxiOverviewIntroduction Steven Haggblade Peter B. R. Hazell Thomas Reardon 3Alternative Perceptions of the Rural Nonfarm Economy Steven Haggblade 25Does the Rural Nonfarm Economy Contribute to Poverty Reduction? Peter Lanjouw 55Dynamics and LinkagesStructural Transformation of the Rural Nonfarm Economy Peter B. R. Hazell Steven Haggblade Thomas Reardon 83Enterprise Dynamics in the Rural Nonfarm Economy Carl Liedholm 99Household Income Diversification into Rural Nonfarm Activities Thomas Reardon Julio Berdegue Christopher B. Barrett Kostas Stamoulis 115Sectoral Growth Linkages between Agriculture and the Rural Nonfarm Economy Steven Haggblade Peter B. R. Hazell Paul A. Dorosh 141Cities, Towns, and the Rural Nonfarm Economy Mitch Renkow 183Global Food Industry Consolidation and Rural Agroindustrialization in Developing Economies Thomas Reardon 199TheRural Industrial Transition in East Asia: Influences and Implications Keijiro Otsuka 216Policies and Programs for Promoting the Rural Nonfarm EconomyThe Policy and Institutional Environment Affecting the Rural Nonfarm Economy Raisuddin Ahmed Steven Haggblade Peter B. R. Hazell Richard L. Meyer Thomas Reardon 237An Overview of Programs for Promoting the Rural Nonfarm Economy Steven Haggblade Donald C. Mead Richard L. Meyer 254Contrasting Rural Nonfarm Policies and Performance in China and India: Lessons for the Future Anit Mukherjee Xiaobo Zhang 293Technology as a Motor of Change in the Rural Nonfarm Economy Steven Haggblade Thomas Reardon Eric Hyman 322Subsector Supply Chains: Operational Diagnostics for a Complex Rural Economy Steven Haggblade 352SynthesisResearch Perspectives and Prospectives on the Rural Nonfarm Economy Steven Haggblade Peter B. R. Hazell Thomas Reardon 381Strategies for Stimulating Equitable Growth in the Rural Nonfarm Economy Steven Haggblade Peter B. R. Hazell Thomas Reardon 396References 417Contributors 477Index 479
\ Quarterly Journal of International AgricultureThis book is important... It comprehensively deals with all aspects of the RNFE and this makes it so unique and timely. It is the recommended reference book on the rural nonfarm economy.\ — Eric Tollens\ \ \ \ \ \ Economic Development and Cultural ChangeThis collection of papers is an important new contribution to scholarship on the RNFE in developing countries. The book is a must both for researchers interested in this area and for policy makers.\ — Michael A. Mcpherson\ \ \
