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Answer:
Education, entrepreneurship, physical infrastructure, and social infrastructure all play an important role in developing rural regions. Rural development is also characterized by its emphasis on locally produced economic development strategies.
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Answer:
Explanation:
Investing in agricultural development is good business. Despite the increase of larger farms and the disappearance of small farms, small farming situations still provide the basis for much of contract farming in the developing world.
Investing in rural development is also good business (de Janvry and Sadoulet 2001). While agricultural development and rural development very much interact with each other, they nevertheless need to be distinguished, especially with respect to the extension function and also with regard to discussions of poverty and poverty alleviation.
Pathways out of poverty
Agriculture is, as de Janvry and Sadoulet (2001) make clear, only one of four basic potential paths out of poverty in Latin America. Nonetheless, their analysis is likely to be the reality in other regions of the world. The pathways they cite include:
Agricultural path. This is the case of landholders who have sufficient natural capital endowments, and for whom market, institutional and policy contexts allow for the profitable use of these assets. OECD's West Africa Long Term Perspective Study (1998) foresees major changes to the agricultural sector over the next twenty years. Predictions are that a small number of larger, commercial farm operators will emerge, able to invest in new technology, sell into world markets and compete with imports from elsewhere. In drier, lower potential areas, patterns of farming and levels of productivity will change less markedly, with increasing diversification into a range of off-farm sources of income, including migration (OECD 1998).
This agricultural path has been the traditional focus of integrated rural development interventions (World Bank, 1987). The result has been mixed success in reducing poverty and has generally produced unsustainable programmes (World Bank, 1997). However, new programmes such as the SPFS and other extension services focusing on food security and income generation hold promise for catalyzing rural development through advancement of agricultural development among the poor.
Multiple-activity path. This path is dominant among rural households in Latin America. Yet it has been generally unrecognized and unsupported, except for local interventions with limited success at scaling up. Major rethinking about the institutional design of rural development is needed to incorporate the off-farm income dimension into these strategies. It should also be clear that the agricultural part of this path is not the same as that of the agricultural path itself. For farmers involved in multiple activities, agriculture is often a part-time endeavor. The household's off-farm activities are often undertaken to generate liquidity for farm expenditures. The off-farm part of the multiple-activity path is not the same as that for fully landless households that have more flexibility in the labour market and often better location relative to the sources of effective demand, as compared to rural residents who are part-time farmers. A typical observation, thus, is that part-time farmers achieve on average levels of household income that are lower than those of landless workers (L pez and Vald s, 1997).
Assistance path. Well supported in the urban sector, this path is profoundly neglected in rural areas. It applies to the structural poor caught in poverty traps who need permanent income transfers to reach the poverty line, and to households in transitory poverty who need access to safety nets to avoid decapitalization of productive assets and irreversible adjustments to shocks.
Exit path. Although sometimes ignored in discussions of agriculture, migration from rural areas - as an exit strategy - has been the dominant factor in reducing rural poverty in Latin America. Remissions by migrants to Latin America alone are estimated to amount to two billion dollars per annum (Berdegu 2003)13.
These paths are not necessarily mutually exclusive. However, households that come out of poverty can usually be identified with one or the other. Identifying which path offers the greatest promise is important for designing differentiated rural development interventions that can best help poor households escape poverty.
The rural sector, however, remains under-served, despite the major and positive changes in the 1990s in the way governments and development agencies approached rural development and poverty.
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