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The Rural Non-farm Economy: Prospects for Growth and Poverty Reduction

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  • Haggblade, Steven
  • Hazell, Peter
  • Reardon, Thomas

Abstract

Summary Policy makers have high expectations for the rural non-farm economy (RNFE). Given high income shares, growing employment, and frequently low capital requirements, they see the RNFE as a potential pathway out of poverty for their rural poor. Yet available evidence suggests that pro-poor rural non-farm growth does not occur automatically. For the poor to benefit from rural non-farm growth, policy makers must stimulate buoyant rural economies, with robust non-farm income growth, not simply low-productivity employment. Moreover, the poor must gain access to growing market niches. Fluid labor markets provide one important bridge linking the rural poor to growing non-farm opportunities.

Suggested Citation

  • Haggblade, Steven & Hazell, Peter & Reardon, Thomas, 2010. "The Rural Non-farm Economy: Prospects for Growth and Poverty Reduction," World Development, Elsevier, vol. 38(10), pages 1429-1441, October.
    • Handle: RePEc:eee:wdevel:v:38:y:2010:i:10:p:1429-1441
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