Beyond the City : The Rural Contribution to Development

by De Ferranti, David M.; Perry, Guillermo E.; Foster, William; Lederman, Daniel; Valdes, Alberto

• ISBN13: 9780821360972
• ISBN10: 0821360973
• Format: Paperback
• Copyright: 2005-04-01
• Publisher: World Bank

Summary

In Latin American and Caribbean history, rural societies have been at the center of both the origins of prosperity and of social upheaval. Rural communities have access to a wealth of natural resources, including arable land and forests, yet they face the highest poverty rates within countries. Characterized by low population densities and located far from the major urban centers, rural communities must overcome severe restrictions in their access to public services and private markets, even in some countries where public expenditures per inhabitant are higher in rural than in urban communities.'Beyond the City' evaluates the contribution of rural development and policies to growth, poverty alleviation, and environmental degradation in the rest of the economy, as well as in the rural space. This title brings together new theoretical and empirical treatments of the links between rural and national development. New findings and are combined with existing literature to enhance our understanding of the how rural economic activities contribute to various aspects of national development. The study is based on original research funded by the World Bank's Office of the Chief Economist for Latin America and the Caribbean. Of particular relevance is the interaction between agricultural and territorial development issues. The empirical findings also make substantial contributions to the debate over the appropriate design of public policies aiming to enhance the rural contribution to national development, including economic growth, poverty reduction, environmental sustainability, and macroeconomic stability.

Table of Contents

Acknowledgments	xi
Acronyms and Abbreviations	xiii
The Rural Economy's Contribution to Development: Summary of Findings and Policy Implications	1	(28)
Policy implications	2	(5)
Summary of findings	7	(19)
Conclusions: The need for institutional reforms	26	(1)
Report organization	27	(2)
Notes	27	(2)
Part I: The Rural Contribution to Development: Analytical Issues	29	(96)
How Do We Define the Rural Sector?	31	(30)
How big is the RNR sector?	32	(1)
RNR sector composition based on national accounts	32	(10)
What do rural people do? Rural poverty, employment, and income sources	42	(4)
How many people really live in rural areas?	46	(15)
Notes	55	(2)
Annex A	57	(1)
Annex B	58	(2)
Annex C	60	(1)
From Accounting to Economics: The Rural Natural Resource Sector's Contribution to Development	61	(42)
RNR activities and welfare: Analytical framework	62	(2)
The RNR sector and economic growth	64	(11)
The RNR sector and income of the poorest households	75	(5)
The RNR sector and the environment	80	(13)
The RNR sector and macroeconomic volatility	93	(4)
The RNR sector's contribution to Latin American and Caribbean welfare and beyond	97	(6)
Notes	102	(1)
The Promise of the Spatial Approach	103	(22)
The spatial approach: A new fad or old concerns?	103	(1)
The extensive menu of concepts that justify spatial development programs	104	(2)
The spatial approach complements the sectoral approach	106	(6)
The spatial approach is promising: New evidence	112	(10)
Summary of analytical findings	122	(3)
Notes	123	(2)
Part II: The Rural Contribution to Development: Policy Issues	125	(108)
Public Expenditures, RNR Productivity, and Development	127	(28)
National welfare and the allocation of public expenditures	128	(2)
Are there policy biases in Latin American and Caribbean countries against rural development?	130	(3)
Disparities in the per capita spending level in urban and rural areas	133	(3)
Does excessive urban concentration harm RNR activities and the rural economy?	136	(4)
Sources of RNR productivity growth in Latin American and Caribbean countries	140	(15)
Notes	152	(3)
Policy and the Competitiveness of Agriculture: Trade, Research & Development, and Land Markets	155	(30)
The international trade regime, country trade policies, and the RNR sector	156	(9)
Latin American and Caribbean public provision of agricultural R&D	165	(15)
Identifying socially desirable public policies for rural land markets	180	(5)
Notes	183	(2)
Enhancing the Contribution of Rural Economic Activities to National Development: Rural Finance and Infrastructure Services	185	(14)
What role should the government play in rural finance and development?	185	(8)
Infrastructure investments for regional development and the poor	193	(6)
Notes	198	(1)
Promoting Economic and Social Development in Poor Regions: Direct Income Supports, Environmental Services, and Tourism	199	(16)
Compensation for trade liberalization and targeted anti-poverty support	200	(6)
Policies to enhance the contribution of rural environmental services	206	(4)
Rural tourism and public support	210	(5)
Notes	213	(2)
Policy Challenges of the Spatial Approach: From Promise to Reality	215	(18)
Introduction	215	(1)
Government and community roles in enhancing the rural contribution to development	215	(10)
Policy evaluation	225	(5)
The promising future of Latin American and Caribbean regional development policies	230	(3)
Notes	231	(2)
Bibliography	233