Rural non-farm employment and rural poverty reduction: What we know in Latin America in 2010

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Rural non-farm employment and rural poverty reduction: What we know in Latin America in 2010

  1. 1. Conference on New Directions for Smallholder Agriculture Martine Dirven R ural non-farm employment and rural poverty reduction: What we know in Latin America in 2010 25 January 2011
  2. 2. 1- What we know 2- Several open questions and needs for further research or thought .
  3. 3. Source: based upon Javier Meneses and Adrian Rodríguez, Agricultural Development Unit, ECLAC and special tabulations of household surveys by ECLAC´s Statistics Division Latin America 2000-2008 (10 countries): Annual growth in total rural employment, farm and non-farm ( %)
  4. 4. Latin America circa 2008 (12 countries): RNFE share of total rural employment Source: based upon Javier Meneses and Adrian Rodríguez, Agricultural Development Unit, ECLAC and special tabulations of household surveys by ECLAC´s Statistics Division
  5. 5. Source: Rodríguez and Meneses (2010) Latin America circa 2008 (12 countries): Types of rural households by income source
  6. 6. Latin America circa 2008: Poverty indexes for non-farming, multiactive, and all rural households (as a % of total households in each category, ranked by % of non-farming poor households)
  7. 7. Mexico 2000-2008: Evolution of agricultural and non-agricultural rural employment Fuente: Martine Dirven en base a Javier Meneses y Adrian Rodríguez, Unidad de Desarrollo Agrícola, CEPAL, en base a tabulaciones especiales de las Encuestas de Hogares por la División de Estadísticas de CEPAL
  8. 8. Dynamics of rural employment: entry, exit and barriers RNFE Rural agricultural employment Change in demand Change in demand Demographic growth, increased labour participation, inmigration, … Entry Entry Entry barriers Exit Exit Exit barriers Labour migration Labour migration Barriers Retirement, lesser labour participation, emigration , …
  9. 9. <ul><li>Main characteristics of RNFE </li></ul><ul><li>- higher % women in RNFE than in ag (heavily in refuge RNFE) </li></ul><ul><li>- higher % middle aged in RNFE than youth and much higher than elderly (partially related to on-farm non remunerated labour of youth, entry and exit barriers and non-intergenerational transfer of land) </li></ul><ul><li>- 2-3 years more education in average (correlated with age and gender) </li></ul><ul><li>- higher average income (in spite of refuge RNFE) </li></ul><ul><li>- wide range of activities in RNFE (most important are petty commerce, manufactures heavily tilted toward agroindustry, construction, transportation and several public and private services –education, heath, local administration, domestic, etc.-) </li></ul><ul><li>- RNFE is mostly concentrated along well-connected roads and in peri-urban areas (lack of reseach on daily commuting) </li></ul><ul><li>most RNFE is salaried employment </li></ul><ul><li>barriers (locational, assets, skills, social capital, transaction costs, learning costs, exit and entry, etc.) </li></ul>
  10. 10. % RNFE income/Total income 1- Land (other assets, income, household size) 2- Distance locality from markets (city) plus richness in ag resources 3- Development stage of the local economy The three Us Sources: a.o. Reardon, Cruz and Berdegué (1998), Wiggins and Proctor (2001), Start (2001)
  11. 12. <ul><li>Conclusions/open questions: </li></ul><ul><li>- Importance of rural and RNFE development in present L.A. policies? </li></ul><ul><li>Is RNFE a poverty exit strategy? (Asset poor individuals, asset poor regions and rural hinterland?) </li></ul><ul><li>Household/individual decision making as to residence, labour and leisure? </li></ul><ul><li>Balance between small and large scales and between wage-labour and entrepreneurial activities? </li></ul><ul><li>Effects of the large conditional transfer programmes on the rural labour market and on migration? </li></ul>
  12. 13. <ul><li>This presentation is the result of activities carried out under the project Knowledge for Change: normative processes to improve the impact on poverty of RIMISP-Latin American Centre for Rural Development. The programme is financed by the International Fund for Agricultural Development (IFAD) and the International Development Research Centre, Canada (IDRC) </li></ul><ul><li>Este trabajo es resultado de actividades realizadas en el marco del Programa Conocimientos a favor del cambio: procesos normativos para mejorar el impacto en la pobreza de Rimisp-Centro Latinoamericano para el Desarrollo Rural. Dicho programa es financiando por el Fondo Internacional de Desarrollo Agrícola (FIDA) y el International Development Research Centre, Canada (IDRC). </li></ul>Rural Non Agricultural Employment and poverty reduction: what do we know in Latin America in 2010?

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