Poverty reduction during the rural–urban transformation: Rural development is still more important than urbanisation

Abstract

Based on cross-country panel datasets, we find that (i) an increase in population share in agriculture is associated with poverty reduction once the longer-term poverty change or the dynamic is taken into account; (ii) rural non-agricultural sector also is poverty reducing in some cases; and (iii) increased population in the mega cities has no role in poverty reduction. In fact, the growth of population in mega cities is "poverty-increasing" in a few cases. Given that a rapid population growth or rural-urban migration is likely to increase poverty, more emphasis should be placed on policies that enhance support for rural agricultural and non-agricultural sectors. If our analysis has any validity, doubts are raised about recent research emphasising the role of secondary towns or urbanisation as the main driver of extreme poverty reduction. Based on cross-country panel datasets, we find that (i) an increase in population share in agriculture is associated with poverty reduction once the longer-term poverty change or the dynamic is taken into account; (ii) rural non-agricultural sector also is poverty reducing in some cases; and (iii) increased population in the mega cities has no role in poverty reduction. In fact, the growth of population in mega cities is "poverty-increasing" in a few cases. Given that a rapid population growth or rural-urban migration is likely to increase poverty, more emphasis should be placed on policies that enhance support for rural agricultural and non-agricultural sectors. If our analysis has any validity, doubts are raised about recent research emphasising the role of secondary towns or urbanisation as the main driver of extreme poverty reduction.

What Makes Farmers Exit Farming: A Case Study of Sindh Province, Pakistan

“…Our findings suggest possible policy responses for overcoming the resulting problems of off-farm transitions, along with other relevant constraints, to attract farmers. Moreover, livelihood transitions involving farm-exits often appear not to mitigate poverty but instead increase poverty [18]. Finally, we also suggest a policy mix for both those who want to exit or those who want to remain farming.…”

“…Third, for the future of farming in this country, the increasing pressures of population growth are exerting an impact on agricultural land, which is leading to lower agricultural productivity as more marginal land is placed under cultivation [14,15]. At the same time, farming households want to move to non-farm employment in the urban sector [4,[16][17][18][19]. Finally, how will the drive to exit farming impact the food supply as 60% of the population faces food insecurity [20][21][22][23][24][25][26]?…”

Dynamic and long-term linkages among agricultural and non-agricultural growth, inequality and poverty in developing countries

“…More recently, Timmer (2015) focused on the structural transformation and the longrun dynamic evolution of the rice-based systems in Southeast Asia and he argued that agricultural growth gives most households access to the food in their fields and markets, resulting in their improved food security and poverty. Imai et al (2016) have found that an increase in population share in agriculture is associated with poverty reduction once the longerterm poverty change or the dynamic is taken into account. Rehman et al (2016) also emphasised the importance of agriculture for the reduction of poverty because in developing countries the poor rely on agriculture for employment and have limited skills to enter into the non-agricultural sector.…”

Understanding Land Use and Rural Development in the National Scheme of Village Relocation and Urbanization in China: A Case Study of Two Villages in Jiangsu Province

“…The government should establish consultation mechanisms between the government and clan gentries or elites and take into account the different characteristics of clans in land policy making. The government might manage to reconstruct the social connections within or across clans through rational arrangement and use of land, which are significant in maintaining villages' sustainable development [27].…”

“…In traditional Chinese society, the state's reach into the countryside and the maintenance of the rural order basically relies on the "gentry rules" and traditional moral system, following the principle of "the power of clans lying outside the direct authority of emperors." Land, as an asset of clans, is completely owned and dominated by clans [26,27]. However, the current system of land ownership in China follows the principle that all land rights are being granted by the state, which contains the political ideal of excluding the private ownership and the elimination of exploitation.…”