In most developing countries, the rural labor force is growing rapidly, but rural employment opportunities are dwindling. This paper brings together empirical evidence on the nonfarm sector and analyzes policies for its future development. It examines the linkages between the farm and nonfarm sectors and between the nonfarm sector and urban enterprises, and considers ways the government can promote rural employment.
The book shows how class relations develop and is a consequence of capitalist development of the rural non-agricultural/non-farm sector (RNFS)---seen as the dialectical relation between the forces and relations of production---as mediated by the state, which produces uneven social and spatial outcomes. Central to the framework for this book are four inter-related conceptual building blocks or themes: social relations of production, productive forces, role of the state and concrete development outcomes of capitalist production in RNFS in the context of class and non-class relations of oppressions. These four conceptual themes follow a logical sequence where each concept evolve in specific contexts within the RNFS; while connected to each other in a dialectical manner; and come together to form the central argument of the book.
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.
Given The Limited Scope Of Farm Sector To Generate Additional Employment In The Light Of The Increasing Labourforce So As To Sustain The Livelihood Of Rural Households, The Expansion Of Different Non-Farm Activities Has Been Recognized As An Important Alternative For Solving The Problems Of Unemployment And Poverty In Rural Areas.Keeping This In Mind The Present Book Deals With Various Issues Related Too The Structure Of Growth, Factors Influencing To The Expansion; Contribution In Creating Employment And Income Opportunities And Problems Existing In The Proper Functioning Of Different Non-Farm Activities. Finally, The Book Suggests Various Options And Measures Which May Be Initiated For Developing Different Segments Of Non-Farm Sector For Achieving Increasing Employment Opportunities And Attaining Sustained Livelihood For The Rural Households In Uttaranchal. Since Uttaranchal Is A Newly Formed State And Is Faced With The Issues Of Employment And Growth The Book Should Prove Useful For Both Researchers And Policy Makers.
May 1995 Although governments in some countries are implementing projects to support small-scale and rural enterprises, more commonly the rural nonfarm sector operates in a policy environment that is biased against it. This survey highlights the positive roles that the rural nonfarm sector can play in promoting growth and welfare by slowing rural-urban migration, using more appropriate technologies, providing seasonal or alternative employment for those left out of agriculture, and improving household security through diversification. The apparent neglect of this sector does not seem warranted on the basis of available information. So little is known about the rural nonfarm sector that those making policy to assist rural small-scale enterprises have done so largely unencumbered by evidence. The Lanjouw survey of nonfarm data and policy experience attempts to correct this. Until recently, the commonly held view was that rural nonfarm employment was relatively nonproductive, producing goods and services of low quality. The rural off-farm sector was expected to wither away with development and rising incomes, and this was viewed as a positive, rather than a negative, event. A corollary of this view was that the government need not actively worry about the sector -- or be concerned about how policies elsewhere might harm it. More recently, opinion has swung the other way, and it is increasingly argued that neglect of the sector would be mistaken. The survey highlights the positive roles that the rural nonfarm sector can play in promoting both growth and welfare. In the widespread situation of a rural workforce growing faster than the employment potential in agriculture, the nonfarm rural sector can lower unemployment and slow rural-urban migration. It is particularly useful in employing women and providing off-season incomes. The technologies used in small-scale rural manufacturing may be more appropriate and thus generate greater income from available productive inputs. What role could government play in promoting the nonfarm sector? The emphasis of government policy has been on large-scale urban industry as the main engine of growth. More recently, there has been a move toward a more broad-based growth approach, with greater emphasis on the development of agriculture and the rural economy. Increasingly countries have targeted project assistance schemes, for example to provide training, infrastructure, and technology to support small-scale and rural enterprises. Nonetheless, in most countries it remains true that projects to support the nonfarm rural sector are undertaken in a policy environment which is biased against this sector. This paper -- a product of the Office of the Vice President, Development Economics -- was prepared as a background paper for World Development Report 1995 on labor.
This book provides an analytical framework for studying the rural non-farm economy (RNFE) in developing countries, as well as a detailed analysis of rural inequalities and agrarian differentiation, demand constraints in the RNFE, and successes and failures of targeted programmes.; The book uses examples - mainly from Asia - to challenge the received ideas and attempts to cast the discussion in a wider context.
"Dabalen, Paternostro, and Pierre investigate the differences in outcomes (earnings and consumption) between individuals (households) who participate in the nonfarm sector and those who do not. They use propensity score matching methods where they create appropriate comparison groups of individuals and households. First the authors find that nonfarm self-employed individuals in rural Rwanda have significantly higher earnings than farm workers and nonfarm formal employees. Second, they show that the benefits to nonfarm self-employment are much higher among the nonpoor than among the poor. Third, the authors show that diversified households-- those with a farm and a nonfarm enterprise-- are less likely to be poor. Finally, farm households who do not participate in the market have significantly lower consumption levels than households that do. However, the benefits to market participation appear to matter less for the poor than for the nonpoor. The authors find little difference in expenditures between market participants and nonmarket participants for comparable households in the bottom 40 percent of the expenditure distribution. This paper-- a product of the Poverty Reduction Group, Poverty Reduction and Economic Management Network-- is part of a larger effort in the network to understand rural nonfarm employment determinants"-- World Bank web site.
The links between agricultural growth and the rural nonfarm economy, known to be strong in Asia, are weaker in Africa but still important to the rural poor. Crucial for strengthening these links are policies and investments that (1) promote smallholders, (2) improve rural infrastructure, (3) encourage commerce and services, (4) foster the development of rural towns, and (5) explicitly recognize women as key actors in rural development.
