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The nonfarm sector and rural development

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  • Islam, Nurul

Abstract

In most developing countries, the rural labor force is growing rapidly, but employment opportunities are not keeping pace. As land available for expansion of agriculture becomes increasingly scarce, nonfarm employment must expand if deepening rural poverty is to be avoided. Policymakers and analysts alike look to the nonfarm sector to increase rural employment, contribute to economic growth, improve income distribution, and alleviate poverty. Expanding opportunities in rural areas outside of agriculture also may help stem the migration of rural dwellers to the cities and slow the spread of urban congestion and pollution. At any feasible pace of growth of large-scale industrialization, urban industries are unlikely to absorb the rapidly increasing labor force. Therefore, it is up to the more labor-intensive rural nonfarm sector to absorb excess labor, promote economic growth, and diversify income sources.

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Bibliographic Info

Paper provided by International Food Policy Research Institute (IFPRI) in its series 2020 vision briefs with number 47.

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Date of creation: 1997
Date of revision:
Handle: RePEc:fpr:2020br:47

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Keywords: Rural development Government policy. ; Rural development Planning. ; Rural conditions Analysis. ;

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Cited by:
  1. Armida Alisjahbana & Chris Manning, 2007. "Trends and Constraints Associated with Labor Faced by Non-Farm Enterprises," Working Papers in Economics and Development Studies (WoPEDS) 200711, Department of Economics, Padjadjaran University, revised Oct 2007.
  2. Jann Lay & George Michuki M’Mukaria & Toman Omar Mahmoud, 2007. "Boda-bodas Rule: Non-agricultural Activities and Their Inequality Implications in Western Kenya," GIGA Working Paper Series 48, GIGA German Institute of Global and Area Studies.
  3. Lay, Jann & Mahmoud, Toman Omar & M'Mukaria, George Michuki, 2008. "Few Opportunities, Much Desperation: The Dichotomy of Non-Agricultural Activities and Inequality in Western Kenya," World Development, Elsevier, vol. 36(12), pages 2713-2732, December.
  4. Lay, Jann & Schüler, Dana, 2008. "Income Diversification and Poverty in a Growing Agricultural Economy: The Case of Ghana," Proceedings of the German Development Economics Conference, Zurich 2008 39, Verein für Socialpolitik, Research Committee Development Economics.
  5. Jackeline Velazco & Vicente Pinilla, 2012. "Peasant households' acces to land and income diversification. The Peruvian-andean case 1998-2000," Documentos de Trabajo de la Sociedad Española de Historia Agraria 1205, Sociedad Española de Historia Agraria.

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