From Farm To Firm : Rural-Urban Transition In Developing Countries

Book Description:

The process of rural-urban transformation presents both opportunities and challenges for development. If managed effectively, it can result in growth that benefits everyone; if managed poorly, it can lead to stark welfare disparities and entire regions cut off from the advantages of agglomeration economies. The importance of rural-urban transition has been confirmed by two consecutive World Development Reports: WDR 2008 Agriculture for Development; and WDR 2009 Reshaping Economic Geography. Focusing on Sub-Saharan Africa and South Asia, this book picks up where the WDRs left off, investigating the influence of country conditions and policies on the pace, pattern, and consequences of rural-urban transition and suggesting strategies to ensure that its benefits results in shared improvements in well-being. The book uncovers vast inequalities, whether between two regions of one country, between rural and urban areas, or within cities themselves. The authors find little evidence to suggest that these inequalities will automatically diminish as countries develop: empirical and qualitative analysis suggests that spatial divides are mainly a function of country conditions, policies and institutions. By implication, policymakers must take active steps to ensure that rural-urban transition results in shared growth. Spatially unbiased provision of health and education services is crucial to ensuring that the benefits of transition are shared by all. But connective infrastructure and targeted interventions also emerge as important considerations, even in countries with severely constrained fiscal and administrative capacity. The authors suggest steps for navigating the tricky political economy of land reforms. And they alert readers to potential spillover effects that mean that policies designed for one space can have unintended consequences on another.Policymakers and development experts, as well as anyone concerned with the impact of rural-urban transition on growth and equity, will find this book a thought-provoking and informative read.

Content
Foreword xiii
Acknowledgments xv
Overview 1
WDR 2008 and WDR 2009: Rural and Urban
Perspectives on Transformation 1
Building on the WDRs: Our Work Program 7
Main Findings 9
References 11
Part I Global, National, and Local Perspectives
on Urbanization and Inclusive Growth:
Examples from Africa 13
Chapter 1 Urbanization: Essential for Development 15
Urbanization and Inequality 17
Why Africa? 18
Organization of Part I 21
Notes 22
References 23
Chapter 2 Global Level: Recent Patterns and Trends
in Rural and Urban Welfare Inequality 25
Sources of Data 28
Methods 30
Results 32
The Elusive Quest for Patterns 44
Conclusion 47
Notes 48
References 49
Chapter 3 National Level: Three Country-Level Perspectives
on Rural-Urban Transitions 51
Structural and Spatial Transformations in Ghana,
Mozambique, and Uganda 52
Rural and Urban Poverty Trends 57
Sources of Rural-Urban Inequalities 64
Methodology 65
Results 66
Implications for Policy 73
Notes 76
References 77
Chapter 4 Local Level: Intraurban Welfare Disparities
and Implications for Development 79
Growing Cities 80
Lower Poverty, Better Services 81
Welfare Inequalities 82
Welfare Differences: Linked to Location 88
Understanding Spatial Inequalities 90
The Colonial Legacy 91
Failure to Strengthen Systems for Land Delivery 92
Conclusion 100
Notes 102
References 102
Part II Managing the Rural-Urban Transformation:
Examples from South Asia 107
Chapter 5 Pathways Out of Poverty: Managing the
Rural-Urban Transformation in South Asia 109
Note 111
References 112
Chapter 6 Patterns of Rural-Urban Transformation
in South Asia 113
Poverty Incidence and Geographical Distribution 114
Contribution of Agriculture to Growth and
Employment 115
Urbanization, Nonagricultural Activities, and
the Rural-Urban Transformation 118
Rural Nonfarm Activities and the Rural-Urban
Transformation 120
Conclusion 121
Notes 122
References 123
Chapter 7 Policies, Institutions, and Initial Conditions 125
Economic Policies 125
Factor Markets: Land and Labor 128
Human Capital Endowments 131
Connective Infrastructures 134
Conclusion 138
Notes 139
References 139
Chapter 8 Land Market Institutions and the Rural-Urban
Transformation 141
Impact of Land Inequality: The Existing Evidence 141
Impact of Land Market Restrictions: The Existing
Evidence 147
Summary of Case Studies and Policy Implications 154
Notes 156
References 156
Chapter 9 Geographical Linkages and the Rural-Urban
Transformation 159
Poverty, Urbanization, and Employment Structure
along the Rural-Urban Continuum 159
Case Study 1: The Rural Employment Pattern and
Urban Linkages 163
Case Study 2: Agglomeration, Spillover, and
Location of Nonfarm Activities 165
Notes 171
References 172
Chapter 10 Labor Mobility and the Rural-Urban
Transformation 175
Internal Migration in South Asia 177
Internal Work Migration in Nepal 178
Destination Choice of Migrants 184
Notes 188
References 189
Chapter 11 Summary and Conclusions 191
Three Levels of Perspectives on Urbanization
and Shared Growth: Sub-Saharan Africa 191
Managing the Rural-Urban Transformation:
Examples from South Asia 195
Note 200
References 200
Appendix A Countries and Surveys Used for Consumption
and Poverty Analysis 201
Appendix B Data, Methodology, and Results for
Decomposition Analysis 205
Data 205
Model Specification 206
Oaxaca-Blinder Decomposition 207
Quantile Decomposition 208
Note 221
References 221
Index 223