Structural Transformation and Rural Change Revisited : Challenges for Late Developing Countries in a Globalizing World

Structural transformation and rural change revisited challenges for a late developing country in a Globalizing World is an extremely thorough and important contribution to this renewal of structural economics. It significantly improves our understanding of rural economies and structural transformation, and it could not be timelier. With duration of five years (2006-2010), its objective was to analyze the processes of liberalization and economic integration and their impacts on agriculture and the rural sector of developing countries. It also aimed to illustrate the situation of rural economies in terms of income, diversification, and overall transformation. The results obtained make it possible to improve the dialogue between national and international partners and to provide orientations for the agricultural and rural policy debates. Relying on a methodology that articulated micro-data collection with a macro structural perspective, the program conducted extensive fieldwork to investigate livelihood strategies of rural households, and married the results with a thorough understanding of structural change. The book highlights recurring patterns of diversification and specialization along the process of structural transformation. Further, reconnecting with a broader vision, it emphasizes the difficulties faced by late developers, whose economies offer few alternatives for households to diversify. Based on their assessment, the authors draw a series of policy lessons. They rightly point out the importance of states rebuilding their internal capacities to design comprehensive development strategies. These capacities are critical to addressing major constraints, defining priorities, and ensuring adequate sequencing. Above all, they show that for Sub-Saharan Africa, in the coming two decades, a strong reinvestment in agriculture (in addition to seizing opportunities for the development of manufacturing and services) will be the major policy tool for progressively raising income, mitigating risks, and fostering innovation and rural demand, which constitutes the main engine for rural diversification a major step for structural transformation. The authors also stress the role of the state in provisioning public goods, in adequately and carefully designing incentives, and in using the leverage offered by the development of small towns as a critical mechanism for rural change. These are all sensible and useful reminders for the donor community, governments, and local stakeholders, and represent an important contribution to the role of agriculture for development.

Bibliographic Details

Main Authors:	Losch, Bruno, Fréguin-Gresh, Sandrine, White, Eric Thomas
Format:	Publication biblioteca
Language:	en_US
Published:	Washington, DC: World Bank 2012-06-18
Subjects:	Economic integration, Trade, Foreign direct investments, Energy prices, Interest rates, Inflation, Transport, Tariffs, Economic reform, Market liberalizationaggregate demand, agricultural protection, annual growth, barriers to entry, bonds, business cycle, business cycles, capital flows, capital goods, capital inflows, capital markets, Consumer price index, consumers, CPI, debt, developing countries, developing country, developing regions, developing world, Development Economics, diversification, dividends, Economic Cooperation, economic environment, economic instability, economic integration, exchange rate, exchange rates, export growth, exports, external environment, external factors, financial institutions, financial integration, financial markets, financial sector, financial system, fiscal pressures, Forecasts, Free Trade, GDP, Generalized System of Preferences, Global conditions, global economy, GNP, gross debt, Gross domestic product, growth performance, growth prospects, growth rates, High inflation, high premium, high unemployment, imports, income, income growth, industrial countries, inflation, inflation performance, inflation rates, interest rates, international experience, international markets, international trade, inventories, investment rates, labor costs, labor force, labor market, local currency, low inflation, low interest rates, low-income countries, macroeconomic policies, macroeconomic stability, market prices, middle-income countries, monetary policies, monetary policy, national accounts, Non-OECD countries, oil, oil exporters, oil prices, OPEC, open economies, output growth, per capita incomes, Policy reforms, potential output, primary commodities, primary products, private sector, producers, product markets, production costs, production processes, productivity, Purchasing power, Purchasing power parity, Real GDP, Real interest, Real interest rates, recession, recessions, regulatory framework, resource allocation, savings, short-term interest rates, structural unemployment, technology transfer, telecommunications, trade barriers, trade liberalization, trade policies, trade volumes, transition economies, Treasury bills, unemployment, Uruguay Round, world economy, World Trade Organization, WTO,
Online Access:	http://hdl.handle.net/10986/12482
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