Lecture 1 Theories and Concepts in Rural Development

8/11/2019 Lecture 1 Theories and Concepts in Rural Development

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How do we understand rural development?

How to develop?

What should be developed and for whom?


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Concepts of Development At the end of WWII, United States became a formidable and

incessant productive machine and the center of the world. All the institutions created in those years, even the UN charter

echoed the US constitution.

Americans wanted to consolidate their hegemony and make it

permenant and realized their purposes by conceiving a politicalcampaign at a global scale and a appropriate emblem to identifythe campaign.

January 20, 1949 President Truman took office and opened a newera of development by launching a bold new program for theimprovement and growth of underdeveloped areastheconcept underdevelopment came to exist and changed themeaning of the term development.


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Concepts of Development

Orginally, development, in biology, describes a process through whichthe potentialites of an object or organism are released, until reached itsnatural, complete and full-f ledged form.

Between 1759 (Wolff ) and 1859 (Darwin), development evolved from aconception of transformation towards the appropriate form of being toa conception of transformation towards an ever more perfect form.

In the last quarter of the 18th century, the biological metaphor of

development was transfered into the social sphere. Justus Moser (the conservative founder of social history), from 1768,

used the word Entwicklungto allude to the gradual process of socialchange.

Towards 1800, entwicklungbegane to appear as reflexive word. And a

few the decades later, development became the central category ofMarxs work.

The late of 18th century, development appeared in English, and sometime used as interchanged with evolution or growth.

By the begining of the 20th century, the new use of the term becamewidespread and connoted urban development and colonial

development.


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Throughout the century, the meanings associated with urbandevelopment and colonial development concurred with manyothers to transform the word development step by step, intoone with contours that are about as precise as those of anamoeba and its meaning depends on the context in which it is

employed. Therefore, development cannot delink itself from the words with

which it was formed growth, evolution, and maturation andthose who use the word cannot free themselves from the web ofmeanings that impart a specific blindness to their language,thought and action.

Development always implies a favorable change, a step from thesimple to the complex, from the inferior to superior, from worseto better.


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In the 1970s (cont.): Development should not be to develop things but to develop

man

Development requires of fundamental economic, social and

political changes Human centered development

Integrated development

Endogenous development (recognizing different systems ofvalues and diverse cultures)

In the 1990s:The birth of new development ethos.


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Redefining Concept Development

The past development efforts have achieved only short-livedgains.

Redevelopment Sustainable development defined asdevelopment that meets the needs of the present generation

without compromising the ability of future generations to meettheir own needs (the 1987 report of the BrundtlandCommission).

Recently, the 2005 World Summit Outcome Document:sustainable development as economic development, social

development, and environmental protection.

The Universal Declaration on Cultural Diversification (UNESCO2001) includes cultural diversity as the fourth policy area ofsustainable development.


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Concepts of Economic Development

Economic development:the process of improving

the standards of living and well-being of

population of developing countries by raising percapita income. This is usually achieved by an

increase in industralisation relative to reliance on

the agriculture sector (MIT Dictionary of Modern

Economics, 4th edition).


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Concepts of the Rural

There has not been yet a accurate definition about the ruralarea that is widely recognized.

Normally, the rural is defined as those areas which are noturban in nature and distinguished from the urban by lowerlevels of infrastructre development, commercial goodsproduction, and peoples livelihoods.

Agricultural economists define: The rural is where in whichinhabitants are mostly (peasants) famers, low populationdensity, less developed infrastructure, low level ofeducation, less access to markets and public goods.


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Concepts of the Rural

Peculiarities of the rural:

Dominated by farmers and agricultural production.

Depending on the urban in many different aspects.

Low levels of income, living standards, technologicalinnovation, democracy, and social equity as compared to thatof the urban area.

Diversity in social, cultural, economic conditions,development levels, management.


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Peasants or Farmers in the Rural

Peasants as communities rather than single individuals orhouseholds consisdered as transition, markets and exchange,subordination and internal differences .

Peasant farm households as a family and enterprise:

- The economic unit of production and consumption

- The small scale farmer (kleinbauern)- Production relies primarily on family labour

- Partially integrated into incomplete markets

- Engaging in multi - activties

- Land is often a source of securing the family livelihoods

- Maintaining the option to withdraw from the market and still survive.

- Subsistence-oriented livelihoods

Farmers:the large scale agribusiness entrepreneur or moderncapitalist farmer (developed countries) or family farm enterprises(developing countries).


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Rural Poverty

Nearly 75% of 1.3 billion world poor who subsist on $ 1 orless per day live and work in rural areas.

75% of the world 800 million underfed also live in ruralareas.

Roughly 850 million people living in chronic hunger aresmall farmers

In spite of rapid urbanization, a majority of the world poor

and underfed will remain in rural areas and levels ofpoverty are typically much deeper in rural areas


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Rural Poverty

The rural poor face enormous challenges: limited economicopportunities, underdeveloped markets, less access to publicinfrastructure and services, less able to engage in advocacy withdecision-makers, resource pressure and environmentdegradation.

Rural poverty can also creates serious negative externalities on acountrys metropolitan population.

Rapid migratory f low to urban areas displace rural poverty to theurban slums.

Rural poverty contributes to exhaustion of underground waterreserves, desertification, deforestation, loss of biodiversity, andclimate change


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Goals of Rural Development

1. Raising small farm productivity:

Why productivity remains low?

Soil and water degradation, depletion and scarcity

Lack of know-how and resources to used improved cropvarieties

Inadequate agricultural extension services


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Conditions for improving farm productivity Improving roads, ennergy and communication

infrastructure

Improving soil management and rehabilitation

Improving small-scale water management Public and private investments for improving water

managment (strorage, harvesting, and use)

Improving post harvest storage

Improving crop varieties and livestock breeds

Environmentally sustainable farming practices

Effective subsidies


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2. Raising farmer incomes:

Better integration with markets (inputs and outputs)

Better infrastructure, institutions, and access Better mechanism for income distribution


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4. Improving access to resources: Good institutionsenvironment and well-defined property rights systems.

5. Improving and expanding rural services: Health,education, energy, and communication

6. Increasing in grass-root democracy: bottom up and realparticipation.


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Concepts of Rural Development

Rural development(agricultural economists):

Improving rural standards of living and well-being

Achieved largely through increases in agricultural production,output, and incomes

In developing countries, this generally with small farms

Sustainable rural development:

Combining the improvement of economic and social livingconditions, focusing on a specific group of poor people in the ruralarea with assuring a sustainable environment:

- Focusing on people (bottom up approach)

- Multisectoral (integrated approach)

- Development with balance in environmental management


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Four Dimensions of Rural Development

1. Political and Institutional

Building community ownership

Decentralizing and formalizing public participation

principle of subsidiary Granting fair access to limited resources and opportunities

Intelligent service system solutions

2. Socio-cultural

Rediscovering/Building of local/regional identities

Dealing with risks and distress (social security systems)


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Four Dimensions of Rural Development

3. Economic

Creating new (job) opportunities through diversification

Value added in the locality/region

Strengthening capacities to cope with markets

4. Ecological

Managing natural resources in sustainable manner

Cross sectoral agreement on different types of use


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Rural Development in Timeline

1950s: Modernization, dual economy model, backwardagric., community development, lazy peasants

1960s: Transformation approach, technology transfer,mechanization agric. Extension, growth role of agric.,

green revolution (start), rational peasants

1970s: Redistribution with growth, basic needs, integratedrural dev., state agric. policies, state-led credit, urban bias,induced innovation, green revolution (cont.), rural growth

linkages.


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Rural Development in Timeline

1980s: Structural adjustment, free markets, getting pricesrights, retreat of the state, rise of NGOs, PRA, farmingsystem research, food security & famine analysis, RD as

process not product, women in dev., poverty alleviation 1990s:Microcredit, participatory rural appraisal (PRA),

actor-oriented RD, stakeholder analysis, rural safe nets,gender & devt. (GAD), environment and sustainability,

poverty reduction 2000s: sustainable livelihoods, good governance,

decentralization, critique of participation, sector -wideapproaches, social protection,poverty eradication


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Dominant and sequential themes in rural development

1970s 1980s 1990s 2000s1950s 1960sDominant Paradigms and Switches

Modernization, dual economy

Rising yields on efficient small farms

Process, participation, empowerment

SL Approach

Some sequential popular RD emphases

Community devt.

Small farm growth

Integrated rural devt.

Market liberalization

Participation

PRSPs


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Framework for Rural Development

EconomicSubsystem

Culture(Value system)

Institutions(Rules)

Resources

(Productionfactors)

Technology

(productionfunction)

Cultural InstitutionalSubsystem

A Theoretical Framework for Economic Development (Hayami, 1997)


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A Basis for Analyzing Economic Development

Economic growth requires changes in socialorganizations and value systems

Need to understanding how changes in the

economy interact with institutions and cultures insuch a way as to support significant, sustainablegrowth

A model of dialectic social development


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A Framework for Rural Development

Livelihood Approach: A way of thinking about the objectives, scope, and priorities

for development

Putting people at the center of development The sustainable livelihood framework

Origins: The white paper

Objectives: to increase the sustainability of poor peoples

livelihoods


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Core concepts of the SLF Putting people at the center: starts with analysis peoples

livelihoods and how these have been changed over time,fully involved people and respect their views, focuses on

the impact of different policies and institutionalarrangements upon household and people, and work tosupport people achieve their own livelihood goals.

Holistic: attempts to identify the most pressing

constraints faced by and promising opportunities opento people regards of where, space, or level and buildsupon peoples own definition of their constraints andopportunities.


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- Dynamic:peoples livelihoods and the institutionsthat shape them are highly dynamic.

- Building on strengths:starts with an analysis of

strength rather than needs

- Macro-micro links:emphasizing the importance ofmacro level policy and institutions to the

livelihood options of communities and individuals


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Framework for Rural Development

Policies &Institutions(TransformingStructures &Processes)

Structures Government Private Sector

Processes Policies Culture

Laws Institutions

LivelihoodCapital Assets

Human

Social

Physical Financial

Natural

VulnerabilityContext

Shocks

Trends

Seasonality

LivelihoodOutcomes

+ Sustainableuse of NR base

+ Income

+ Well-being

Reducedvulnerability

+ Food security

LivelihoodStrategies


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Capital Assets

A livelihood comprises the capabilities, assets and activities requiredfor a means of living. A livelihood is sustainable when it can cope withand recover from stresses and shocks and maintain or enhance itcapabilities and assets both now and future while not undermining thenatural resource base

Natural capital:e.g. land, water wildlife, biodiversity, environmentalresources

Social capital:e.g. social network, membership of groups, access towider institutions of society

Human capital:e.g. the skills, knowledge, ability to labour, good health

Physical capital:e.g. transport, shelter, water, energy andcommunications

Financial capital:savings, supplies of credit or regular remittances orpension


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Vulnerability context

Vulnerability context: Frames the external environment in whichpeople exist. Peoples livelihoods and the wider availability ofassets are fundamental affected by critical trends, shocks andseasonality

Trends:Population trends, resource trends,national/international economic trends, trends in governance,technical trends,

Shocks:Human health shocks, natural shocks, conflict,crop/livestock health shocks

Seasonality:of prices, of production, of health, of employmentopportunities


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Transforming structures and process

Structures:Public sector, private sector, civil society. Structures exist at various levels that set and implement policy and

legislation, deliver services, purchase, trade and perform all mannerof other functions that affect livelihoods.

Structures make process functions Processes:Policy, legislation, institutions, culture, power relations.

They determine the way in which structures and individuals operate and interact.

Processes are important to every aspect of livelihoods, e.g.,providing incentives from markets through cultural constraints,defining how to manage resources etc.


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Livelihood strategies

Livelihood strategies:

Natural resources based, Non-natural resources based,migration

Intensification, diversification, migration Coping, adaptive

Livelihoods strategies:Dynamic, diversity at every levelwithin geographic areas, across sectors, within households

and over time.


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Livelihood Outcomes

More income

Increased well-being

Reduced vulnerability Improved food security

More sustainable use of the natural resource base

Livelihood outcomes as a basis for indicatordevelopment

Lecture 1 Theories and Concepts in Rural Development

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