Urbanization and Poverty Reduction : The Role of Rural Diversification and Secondary Towns

A rather unique panel tracking more than 3,300 individuals from households in rural Kagera, Tanzania during 1991/4-2010 shows that about one in two individuals/households who exited poverty did so by transitioning from agriculture into the rural no...

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Bibliographic Details
Main Authors:	Christiaensen, Luc, De Weerdt, Joachim, Todo, Yasuyuki
Format:	Policy Research Working Paper
Language:	English en_US
Published:	World Bank, Washington, DC 2013
Subjects:	ABSOLUTE TERMS ACCESS TO INFORMATION ACCESS TO SERVICES AGGREGATE INCOME AGRICULTURAL ACTIVITIES AGRICULTURAL EMPLOYMENT AGRICULTURAL GROWTH AGRICULTURAL PRODUCTION AGRICULTURAL PRODUCTIVITY AGRICULTURAL SECTOR AGRICULTURAL WAGES ANNUAL CHANGE BASIC INFRASTRUCTURE BIG CITIES BIG CITY CAPITAL MARKETS CASH CROPS CHANGES IN POVERTY COMPARATIVE ADVANTAGE CONFLICT CONSUMPTION AGGREGATE CONSUMPTION DATA CONSUMPTION GROWTH CONSUMPTION PER CAPITA COUNTRY SPECIFIC CROSS-COUNTRY ANALYSIS CROSS-COUNTRY LEVEL DECOMPOSABLE POVERTY DEFINITIONS OF POVERTY DEMAND FOR FOOD DEMOCRACY DEPENDENCY RATIO DEVELOPING COUNTRIES DEVELOPING WORLD DEVELOPMENT ECONOMICS DEVELOPMENT INDICATORS DEVELOPMENT POLICY DEVELOPMENT REPORT DISTRIBUTIONAL EFFECTS DIVERSIFICATION ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC IMPACT ECONOMIC OPPORTUNITIES ECONOMIC POLICY ECONOMICS ECONOMICS LITERATURE EMPIRICAL REGULARITIES EMPLOYMENT GENERATION ERROR TERM ERROR TERMS ESTIMATION TECHNIQUES EXTENDED FAMILY FAMILY MEMBERS FARM ACTIVITIES FARM EMPLOYMENT FARM HOUSEHOLDS FARMER FARMERS FEWER PEOPLE FIGHT AGAINST POVERTY FIXED EFFECTS FOOD CONSUMPTION FOOD CROPS FOOD EXPENDITURE FOOD PROCESSING FORCED MIGRATION GINI COEFFICIENT GLOBAL POVERTY GROWTH PATTERN GROWTH PROCESS GROWTH RATE GROWTH RATE OF POPULATION GROWTH RATES HEADCOUNT RATIO HEALTH CONSEQUENCES HEALTH EXPENDITURES HIV HOSPITAL HOUSEHOLD BUDGET HOUSEHOLD DYNAMICS HOUSEHOLD LEVEL HOUSEHOLD SIZE HOUSEHOLD SURVEY HOUSING HUMAN CAPITAL INCOME INCOME DISTRIBUTION INCOME GROWTH INCOME INEQUALITY INCOME LEVELS INEQUALITY INTERNAL MIGRATION INTERREGIONAL TRANSPORT JOB CREATION LACK OF CREDIT LAND INEQUALITY LARGE CITIES MIGRANT MIGRATION FLOWS NATIONAL GOVERNMENTS NEGATIVE EXTERNALITIES NUMBER OF HOUSEHOLDS NUMBER OF PEOPLE PEACE PER CAPITA GROWTH POLICY DISCUSSIONS POLICY RESEARCH POLICY RESEARCH WORKING PAPER POLITICAL ECONOMY POOR POOR PEOPLE POOR RURAL HOUSEHOLDS POORER HOUSEHOLDS POPULATION AND DEVELOPMENT POPULATION DATA POPULATION GROWTH POPULATION PROJECTIONS POPULATION SHARE POVERTY ALLEVIATION POVERTY CHANGES POVERTY DATA POVERTY DECLINE POVERTY DYNAMICS POVERTY GAP POVERTY HEAD POVERTY LINE POVERTY LINE CHANGE POVERTY MEASURE POVERTY MEASURES POVERTY RATE POVERTY REDUCING POVERTY REDUCTION PRO-POOR PROGRESS PURCHASING POWER REDUCING POVERTY REFUGEES REGIONAL GROWTH REGIONAL SCIENCE REMITTANCES RISK SHARING RURAL RURAL AREAS RURAL DISPARITIES RURAL DWELLERS RURAL ECONOMY RURAL HOUSEHOLDS RURAL MIGRANTS RURAL POOR RURAL POVERTY RURAL POVERTY REDUCTION RURAL TOWNS RURAL UNEMPLOYMENT RURAL VILLAGES RURAL WORKERS SECTORAL COMPOSITION SELF-EMPLOYMENT SERVICE PROVIDERS SKILLED WORKERS SMALL COUNTRIES SOCIAL AFFAIRS SOCIAL SAFETY NETS SOCIAL SERVICES SPATIAL ALLOCATION SPATIAL DEVELOPMENT SPATIAL DISTRIBUTION SPILLOVER STRUCTURAL TRANSFORMATION TOTAL POVERTY UNEMPLOYMENT UNEMPLOYMENT RATES URBAN AGGLOMERATIONS URBAN AREAS URBAN CENTERS URBAN DEVELOPMENT URBAN MIGRATION URBAN POPULATION URBAN POVERTY URBAN SOCIAL NETWORKS URBAN-RURAL DISPARITIES URBANIZATION WARS WORKFORCE
Online Access:	http://documents.worldbank.org/curated/en/2013/04/17620730/urbanization-poverty-reduction-role-rural-diversification-secondary-towns http://hdl.handle.net/10986/15562

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Summary:	A rather unique panel tracking more than 3,300 individuals from households in rural Kagera, Tanzania during 1991/4-2010 shows that about one in two individuals/households who exited poverty did so by transitioning from agriculture into the rural nonfarm economy or secondary towns. Only one in seven exited poverty by migrating to a large city, although those moving to a 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 rural-urban dichotomy and focusing instead more on how best to urbanize and develop the rural nonfarm economy and secondary towns.

Urbanization and Poverty Reduction : The Role of Rural Diversification and Secondary Towns

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