Quarterly Journal of International Agriculture No. 1/05
Non-farm rural employment –
review of issues, evidence and policies
Gertrud Buchenrieder
University of Hohenheim, Stuttgart, Germany
Abstract
Evidence from most continents over the last decade shows that the
share of rural household income from non-farm sources is growing in the
process of rural development. Recent empirical research found that
non-farm sources account for 40-45% of average rural household income
in sub-Saharan Africa and Latin America, 30-40% in South Asia, and
30-50% in Central and Eastern Europe. Most of this income originates
from local rural sources rather than urban migration. Thus, non-farm
rural employment (NFRE) is gaining prominence in debates on rural
development. The term NFRE is used to mean any non-farm employment by a
rural household, including urban jobs and remittances. Hence, it is
related to employment, income and livelihoods not directly derived from
crop and livestock production.
This contribution aims at giving an overview of the research issues on
NFRE, its findings and policy recommendations as it concerns rural
poverty reduction. The policy recommendations identified are embedded
in the sustainable livelihood framework as it can serve as a guideline
to explain why some farm households tend to specialize in agriculture
and others to diversify their activities. It can further be used to
analyze the factors determining demand-pull and distress-push
diversification.
Keywords: non-farm rural employment, diversification, livelihood, equity
Vol. 44 (2005), No. 1: 3-18