Poverty impacts and policy options of non-farm rural employment

Evidence from low-income countries over the past decade indicates that rural household income from non-farm sources is increasing, contributing 40-50% to average rural income, primarily from local sources. This trend highlights the growing importance of non-farm rural employment in discussions on rural development, particularly for reducing poverty and enhancing sustainable livelihoods. Farm households employ various strategies to manage risks and minimize livelihood vulnerability, which can be categorized into two main approaches: diversifying farm production and engaging in non-farm activities (both on- and off-farm), including wage and self-employment, often involving migration. Diversity and sustainability are crucial for rural households to survive challenging ecological and economic conditions. Common patterns emerge: limited access to farmland makes low-paid non-farm jobs vital for survival, while better land access encourages diversification of farm activities, often supplemented by non-farm employment. A critical farm size is necessary to enable participation in higher-paying non-farm jobs, complicating the notion of non-farm employment as a universal solution to rural poverty. The significance of social capital in facilitating profitable non-farm employment opportunities is also emphasized. This edited volume comprises papers presented at the Deutsche Tropentag 2001 and the 42nd Annual Conference of GEWISOLA, focus