This book provides an analytical framework for studying the rural non-farm economy (RNFE) in developing countries, as well as a detailed analysis of rural inequalities and agrarian differentiation, demand constraints in the RNFE, and successes and failures of targeted programmes.; The book uses examples - mainly from Asia - to challenge the received ideas and attempts to cast the discussion in a wider context.

Contrary to conventional wisdom that equates rural economies with agriculture, rural residents in developing countries often rely heavily on activities other than farming for their income. Indeed, nonfarm work accounts for between one-third and one-half of rural incomes in the developing world. In recent years, accelerating globalization, increasing competition from large businesses, expanding urban markets for rural goods and services, and greater availability of information and communication technology have combined to expose rural nonfarm businesses to new opportunities as well as new risks. By examining these rapid changes in the rural nonfarm economy, international experts explore how the rural nonfarm economy can contribute to overall economic growth in developing countries and how the poor can participate in this rapidly evolving segment of the economy. The authors review an array of recent studies of the rural nonfarm economy in order to summarize existing empirical evidence, explore policy implications, and identify future research priorities. They examine the varied scale, structure, and composition of the rural nonfarm economy, as well as its relationship with agricultural and urban enterprises. And they address key questions about the role of public intervention in the rural nonfarm economy and how the rural poor can participate in and navigate the rapid transition underway in rural areas. The contributors offer new insights to specialists in rural development and to others interested in overall economic development.

In most developing countries, the rural labor force is growing rapidly, but rural employment opportunities are dwindling. This paper brings together empirical evidence on the nonfarm sector and analyzes policies for its future development. It examines the linkages between the farm and nonfarm sectors and between the nonfarm sector and urban enterprises, and considers ways the government can promote rural employment.

Contributed articles presented earlier at a seminar on rural manpower policy in various Indian states for the poor.

This paper empirically investigates the role of off-farm and non-agricultural activities in Myanmar’s rural sector, based primarily on the nationally representative MLCS 2016/17. We find evidence of extensive diversification: rural households are generating about 25 percent of their income on the farm; the remaining income comes from wage labor (34 percent), non-agricultural businesses (27 percent), and about 15 percent from passive sources (remittances and others). More than half of rural households engage in non-farm activities. Despite this large participation, the non-farm sector is informal and has yet to reach its full job-creating potential. Diversification is broad-reaching, and prevalent at all levels of income; however, wealthier households participate more heavily in the non-farm sector. Land constraints, household size, education levels, and gender all appear correlated with households’ propensity to diversify. Since the start of the twin crises, we continue to see significant diversification in rural incomes and all sectors – farm and non-farm – suffering very similar income shocks.

The literature on transition economies devotes relatively little attention to agriculture and the rural non-farm economy, despite the importance of the sector and its relevance to the livelihoods of the majority of the world's poor. This paper is part of a growing volume of empirical work on agriculture in transition countries and especially on the topic of the rural non-farm economy and livelihood diversification among the poor. The empirical work presented in this report is primarily based on large (nation-wide) rural household surveys and other field-related research activities using a broad range of methodologies. In recent years there has been growing recognition of the role of the non-farm sector for employment, income smoothing and income generation in rural areas in the developing, developed and transition countries. However, there has been limited focus on the factors that determine people's capacity to take advantage of or to generate these opportunities. It is hypothesised that two processes are apparent: demand-pull, where rural people respond to new opportunities; and distress-push, where the poorest are driven to seek non-farm employment as a survival strategy. Sometimes these processes work together. The non-farm sector is thus vital for rural employment and incomes in situations of both stagnant and buoyant agriculture and rural economy as a whole. It is vital for Armenia and Georgia's economic growth, as the development of remunerative and sustainable non-farm employment opportunities will have important effects in terms of poverty reduction. It is also important for Romania's EU accession, currently foreseen in 2007, as the development of remunerative and sustainable non-farm employment opportunities will have important effects in terms of the use of future structural funds, regional assistance and the implementation of the Common Agricultural Policy. This research identifies the key socio-economic factors, resources, activities and constraints to rural households and enterprises in the non-farm rural economy. These data were collected at the micro-level and analysed in the context of the sustainable livelihoods framework, farm systems theory and contemporary econometric methodologies. The aim was to derive policy conclusions conducive to the development of sustainable rural livelihoods.