IFPRI: Nonfarm Rural Development
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DSGD Research Theme
Nonfarm Rural Development
Project Leader: Peter Hazell
Results  |  Impact  |  Milestones  |  Research Team
The importance of the rural nonfarm economy (RNFE) in contributing to growth, poverty alleviation, and reduced pressure on the natural resources base is now widely recognized, but policies for promoting the RNFE are still poorly developed. IFPRI's own research on the RNFE has focused largely on the growth linkages between agriculture and rural nonfarm activity at the regional level. While the size and impact of the growth multipliers are reasonably well understood, little is known about the kinds of policy interventions that can directly influence the size and distribution of the multipliers. Other important knowledge gaps also exist which constrain policy formulation. These include: (1) prospects and approaches for promoting the RNFE in regions where opportunities for agricultural growth are limited (resource poor areas, for example); (2) policies to ensure that growth in the RNFE benefits the poor, and particularly marginal farmers and landless agricultural workers who may otherwise degrade resources; (3) policies for promoting rural agro-industry and capturing more value added locally from agricultural production; (4) the impact of macroeconomic reforms and market liberalization policies on the RNFE; and (5) the backward linkages from the RNFE to agriculture, particularly for reducing income risks and providing capital for on-farm investment.

Recent years have seen the emergence of several ongoing of completed studies that are directly relevant to these issues. The objectives of the proposed synthesis activity are, therefore, to review this literature and emerging new evidence to provide guidelines for policies to promote RNFE and for future research priorities. The primary activity will be organization of an international workshop based on invited papers and preparation of a proceedings volume and a synthesis paper.

RESULTS
  1. New analyses aimed at informing policymakers about the potential role of the RNFE and policies for promoting its development on an equitable basis; and
  2. source material and literature reviews that will be helpful to the research community.
IMPACT
  1. Improved policy design with respect to developing the RNFE;
  2. welfare and development gains for residents of rural areas; and
  3. guidelines for researchers and donors on future priorities for policy research on the RNFE.
MILESTONES
1998
  • Completion of papers for workshop and holding of the workshop.
  • Writing of synthesis paper.
1999
  • Publication of book based on workshop and synthesis paper.
RESEARCH TEAM
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