Title
Urbanization and poverty reduction : the role of rural diversification and secondary towns
Author
Faculty/Department
Institute of Development Policy and Management
Publication type
article
Publication
Amsterdam ,
Subject
Sociology
Economics
Source (journal)
Agricultural economics. - Amsterdam
Volume/pages
44(2013) , p. 435-447
ISSN
0169-5150
ISI
000321442000007
Carrier
E
Target language
English (eng)
Full text (Publishers DOI)
Abstract
A rather unique panel tracking more than 3,300 individuals from households in rural Kagera, Tanzania, during 1991/19942010 shows that about one out of two individuals/households who exited poverty did so by transitioning out of agriculture into the rural nonfarm economy or secondary towns. Only one out of seven exited poverty by migrating to the big cities, even though those moving to the city experienced on average faster consumption growth. Further analysis of a much larger cross-country panel of 51 developing countries cannot reject that rural diversification and secondary town development lead to more inclusive growth patterns than metropolitization. Indications are that this follows because more of the poor find their way to the rural nonfarm economy and secondary towns, than to distant cities. The development discourse would benefit from shifting beyond the ruralurban dichotomy and focusing more instead on how best to urbanize and develop its rural nonfarm economy and secondary towns.
E-info
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