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Rural Income Generating Activities: Whatever Happened to the Institutional Vacuum?

Evidence from Ghana, Guatemala, Nicaragua and Vietnam









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    Rural Income Generating Activities Study: Methodological note on the construction of income aggregates 2007
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    A major component of the Rural Income Generating Activities (RIGA) study was to construct comparable income measures from selected multi-purpose household surveys (see table in Annex I). The aim of the exercise was to provide annualized benchmark aggregates spanning four continents which, despite pervasive differences in the quality and level of information available in each survey, would be suitable for cross-country analysis. The objective of this document is to describe the methodol ogy used in constructing the household income aggregates and their components included in the RIGA database.
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    Rural income generating activities in developing countries: re-assessing the evidence 2007
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    This paper contributes to the understanding of the dynamics of developing country rural labour markets by re-evaluating the available evidence on the levels and composition of income sources adopted by rural households in order to understand the relationship between the various economic activities taking place in rural areas and their implications for economic growth and poverty reduction. This is achieved in two parts: First, the paper introduces the Rural Income Generating Activities (RIGA) d atabase, a newly constructed FAO repository of household survey data, income measures and cross-country comparable indicators. Second, using the RIGA database, the paper undertakes a descriptive analysis of the agricultural and non-agricultural sectors of the rural economy, assessing the importance of rural non-farm activities within the complex income strategies adopted by rural households in developing countries and their relationship to poverty and inequality.
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    Rural Income Generating Activities: A Cross Country Comparison 2007
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    This paper uses a newly constructed cross country database composed of comparable variables and aggregates from household surveys to examine the full range of income generating activities carried out by rural households in order to determine: 1) the relative importance of the gamut of income generating activities in general and across wealth categories; 2), the relative importance of diversification versus specialization at the household level; 3) the relationship between key household assets an d the participation in and income earned from these activities; and 4) the influence of rural income generating activities on poverty and inequality. Analysis of the RIGA cross country dataset paints a clear picture of multiple activities across rural space and diversification across rural households. This is true across countries in all four continents, though less so in the African countries included in the dataset. For most countries the largest share of income stems from off farm activities, and the largest share of households have diversified sources of income. Diversification, not specialization, is the norm, although most countries show significant levels of household specialization in non-agricultural activities as well. Nevertheless, agricultural based sources of income remain critically important for rural livelihoods in all countries, both in terms of the overall share of agriculture in rural incomes as well as the large share of households that still specialize in agricultu ral sources of income.

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