1) The report analyzes structural and rural transformations and poverty reduction in 60 developing countries from 1995-2015. It examines how transformations have impacted rural poverty and inclusion. 2) Economic growth generally leads to structural transformation that changes but does not diminish agriculture. Rural transformations have made the rural sector more diverse with increasing non-farm activities and commercialization. 3) However, rapid structural or rural transformation does not automatically lead to rapid rural poverty reduction. Inclusive rural transformation requires strategic investments in technology, food markets, and land governance to ensure smallholders and the rural poor benefit.

1. Rural Development Report 2016
Fostering inclusive rural transformation
Stockholm, 12 December 2016
Paul Winters
Officer-in-Charge, Strategy and Knowledge Department
& Director, Research and Impact Assessment Division
International Fund for Agricultural Development

2. 2
Agenda 2030 creates a dramatic challenge

3. Report questions
 Analysis of the speed of structural and rural transformations and
poverty reduction in 60 countries from 5 developing regions.
 Period: 1995-2015
3
What are the consequences of transformations for rural poverty
reduction and inclusion?
What can the principal actors do to promote an inclusive rural
transformation?
What are the different pathways of structural and rural transformation
across the developing world?
1)
2)
3)

4. Structural Transformation
• Increasing importance of industry and
service sector
• Productivity gains
• Rural-urban migration
• Urbanization
• Demographic transition
Measured variables
4
Rural Transformation
• Technologically advanced, efficient and
competitive agriculture
• Increasing commercialization
• Rising agro-processing
• Increasing importance of nonfarm
activities in rural household income
Rural Inclusion
• Extent to which different rural sectors can enjoy available rights and
opportunities (women, Indigenous People and ethnic minorities, and youth)
Proxy: change in the share of non-agricultural activity (industry and services) in GDP (%)
Proxy: change in agricultural value added per worker (%)
Proxy: changes in the rural poverty rate (%)

5. 5
0
10
20
30
40
50
60
1980 1990 2000 2010
Services
Industry
Agriculture
Sector
Share (%)
All Regions
Economic growth tends to lead to structural transformation
thereby changing, but not diminishing, the role of agriculture

6. Decrease in agric. share  increases in agric. and agro-industrial productivity
6
Rural sector has become more diverse
Structural transformation in the economy is accompanied by
rural transformation
Agrifood
Industry Output
per Capita (US$)
Share of
Agriculture
in GDP (%)
100
150
200
1991-95 1996-00 2001-05 2006-10
10
20
25
15
Non-farm Share
of Rural
Household
Incomes (%)
37%
47%
51%60
50
40
30
20
10
0
Africa Latin America Asia

7. But…
To what extent have these transformations been inclusive?
7
How have these changes affected small-scale rural farmers?
Structural transformation, rural transformation and inclusion

8. Rapid structural or rural transformation do not
automatically lead to rapid rural poverty reduction
8
Total
Countries
Structural
Transformation
Rural
Transformation
Rural Poverty
Reduction
FAST
SLOW

9. 32 countries 19 countries
1 country 8 countries
Rural Inclusion
Fast Slow
Transformation
SlowFast
9
Rural development strategies for inclusive rural
transformation are context-specific but structured
Amplify
&
Accelerate
Accelerate
AmplifyAdapt
Rural Development
Objectives

10. Rural transformation happens as part of a broader
process of structural transformation altering the
role of agriculture and broadening rural
investment opportunities.
Is rural development passé in an urbanizing world?
Inclusive rural transformation does not happen
automatically, it must be made to happen.
Promoting inclusive rural transformation means
making the right strategic decisions in each of the
different contexts.
10
RDR key messages

11. Investing in the development
and wide adoption of
agricultural technology and
innovation to boost smallholder
productivity
11
Structural and rural transformation hinge on boosting the productivity of
the agrifood system, including smallholders, which requires innovation

12. 12
Rural transformation is linked to changing domestic food markets requiring
actions to facilitate the inclusion of smallholders and the rural poor
Investing in better, more
transparent, more efficient, and
more inclusive domestic food
markets

13. Investing in land and natural
resource governance and
institutions to ensure
inclusiveness
13
With transformation, land and natural resource governance and
institutions that shape performance must evolve and be made inclusive

14. Four Decades
Investing in Rural People
Fostering Rural Transformation
Thank you