Economic diversification, non-farm activities and rural transformation

As discussed in Chapter 1, the rural population of least developed countries (LDCs) accounts for 69 per cent of the total; rural workforces are projected to increase substantially over the next 15 years; and poverty is both more widespread and deeper in rural than in urban areas. The need to increase agricultural productivity limits the potential to absorb more workers productively in the agricultural sector, or even to retain the existing workforce in the sector. The main options available are thus migration to urban areas or engagement in non-farm activities in rural areas (Lanjouw and Lanjouw, 2001). Involvement in non-farm activities can offer a pathway out of poverty – but only if there are sufficiently productive and remunerative opportunities available, and if poor households are able to take advantage of them (Egyei, Harrison and Adzovor, 2013).

Related Subject(s): Economic and Social Development