Rural Poverty In Developing Countries

Reviews causes of poverty in rural areas and presents a policy framework for reducing rural poverty, including through land reform, public works programs, access to credit, physical and social infrastructure, subsidies, and transfer of technology. Identifies key elements for drafting a policy to reduce rural poverty.

In most developing countries, poverty is more widespread and severe in rural than in urban areas. The author reviews some important aspects of rural poverty and draws key implications for public policy. He presents a policy framework for reducing poverty, taking into account the functional differences and overlap between the rural poor. Several policy options are delineated and explained, including stable management of the macroeconomic environment, transfer of assets, investment in and access to the physical and social infrastructure, access to credit and jobs, and provision of safety nets. Finally, some guideposts are identified for assessing strategies to reduce rural poverty.

Despite almost four decades and billions of dollars in development activities, we are barely in a position to track the changing dynamics of poverty or to define with conviction the processes that entrap the poor in their misery. Accounting for about 90% of global poverty, rural poverty, through transmigration, is also a main contributor to urban poverty. It is in the rural areas of the world where poverty is most severe in human terms, where the hunger, hopelessness, hardship, and despair commonly associated with entrenched poverty are most pronounced, where basic health services, sanitation, educational opportunities, and other common amenities are most lacking. The alleviation of rural poverty is therefore tantamount to the alleviation of global poverty in its entirety. The State of World Rural Poverty offers the first comprehensive look at the economic conditions and prospects of the world's rural poor.

Some 2.7 billion people live in poverty on less than two dollars a day, whilst 1.1 billion live in extreme poverty on less than one dollar a day. The United Nation's Millennium Development Goals aim is to halve this number by 2015 and the Department for International Development has set Public Service Agreement Targets to contribute to this reduction. As some 75 per cent of the world's poor live in rural areas, these targets cannot be reached without the reduction of rural policy. This report looks at rural poverty and the way the DFID tackles the issue, especially in the short and medium term. It is organised into four main sections: the challenge of tackling rural poverty; DIFD's country programme assistance to the rural poor; reaching the rural poor through other funding schemes; and management of the aid budget.

Case studies-- of the links between highlands and lowlands in Latin America; of transmigration in Indonesia; and of migration and desertification in the Sudan-- illustrate the relationship between poverty, internal migration, and environmental change in rural areas of developing countries.

All men and women are subject to risk: illness, accident, death. Some shocks affect their ability to feed and support themselves properly, either temporarily: unemployment, crop failure, and loss of property; or permanently: disability, and skill obsolescence.This report summarises what is known and also what is not known about the sources of risk faced by the rural poor and their coping strategies. It examines the impact of risk and risk-coping strategies on development and the way in which governments and international organisations can assist in dealing with risk and overcoming poverty.