- What are the different pathways of structural and rural transformation in developing countries?
- How do the different pathways affect rural poverty reduction and social and economic inclusion?
- What can policy makers do to stimulate and support inclusive rural transformation?
But if rural transformation is essential to the development process, why have some countries been able to transform and to reduce poverty faster than others? The answer to that question is not only key to focus global efforts on eliminating poverty and hunger and to reach the UN’s Sustainable Development Goals, but to inclusively and sustainably transform rural areas.
This report provides a thorough analysis of this complex picture and seeks to answer three key questions:
- What are the different pathways of structural and rural transformation in developing countries?
- How do the different pathways affect rural poverty reduction and social and economic inclusion?
- What can policy makers do to stimulate and support inclusive rural transformation?
IFAD President Kanayo F. Nwanze visits the vegetable farm of Fanose Assafa, a small farmer living in rural Ethiopia. Assafa started her first garden with the help of an IFAD-supported small-scale irrigation project. Now Assafa is entirely self-sufficient and food secure. ©IFAD/Abate Damte
A farmer harvests rice in Laguna, Philippines. Growing demand for food – driven by population increase and rising incomes – is creating opportunities and challenges for people working in rural areas. ©IFAD/GMB Akash
Why doesn’t rapid structural change always go hand in hand with fast poverty reduction?
The Spanish and Portuguese-speaking countries of Latin America and the Caribbean underwent a vast rural transformation in the second half of the 20th Century. By the year 2000, some 75 per cent of people lived in towns and cities, and agriculture’s share of GDP had fallen by 40 per cent since 1980 to little more than five per cent of the region’s economy.
Learning from experience
Farming to survive, growing to sell
- Prematurely urbanized countries – such as Yemen and Sudan
- Countries positioned for progress – includes Morocco, Turkey and Tunisia
- Countries with low urbanization and low urban-rural poverty differences – a clutch of former CIS states, previously commodity producers for the Soviet Union.
A young herder watches over his cattle at a watering point in Deck Vote village, Louga, Senegal. About 65 per cent of youth in Africa work in agriculture: only 16 per cent have waged jobs in the public and private sectors. ©IFAD/Susan Beccio
Jobs matter
Women work in an IFAD-supported cashew processing factory in Viet Nam that exports to Japan, China and Taiwan. According to the report, better infrastructure encourages private investment in longer value chains. ©IFAD/Susan Beccio
Reaching out
A member of a farmers’ collective makes a group loan payment at a bank in Masaka, Uganda. Many smallholder farmers lack access to credit and payment systems. ©IFAD/Radhika Chalasani
Inventing new kinds of finance
A scientist analyses water and soil quality in West Noubaria, Egypt. The laboratory provides farmers with the latest information about their water and soil which helps them to make informed decisions about which irrigation techniques, fertilizers and pesticides will best increase their yields. © IFAD/Marco Salustro.
Designing better policies
Can software help the Cambodian Government become a major global rice exporter by 2015? A look into how IFAD and Intel have joined forces to bring expert information about seeds, fertilisers and pests to rural farmers at the touch of a button.
Farmers carry rice out to the paddies to plant in Mali. Secure access to land reduces vulnerability to hunger and poverty. But for many of the world’s poor rural people in developing countries, access is becoming more tenuous than ever. ©Amadou Keita
Meeting new challenges
Huang, 50, generates income for her family by weaving in Attapeu province, Laos. Rising agricultural productivity, more jobs off the farm and migration to cities are reshaping rural life. ©IFAD/GMB Akash
- Expanded access to markets and finance
- Enhanced access to and management of natural resources
- Improved access to infrastructure
- Greater access to information and knowledge
- Strengthened voice and power in policy processes
Stronger together
- the share of non-agriculture in GDP (Structural transformation);
- agriculture value added per worker (Rural transformation); and
- the rural poverty headcount at the country poverty line and the extreme rural poverty headcount rate at $1.25 per person per day (Social inclusion).