Transforming the rural nonfarm economy, Opportunities and threats in the developing world uri icon


  • The rural nonfarm economy (RNFE) plays an important role in the economic transformation of developing countries. While 'nonfarm' describes what this sector is not, it actually is a vibrant, often fast-growing, small-scale service and manufacturing sector that holds much promise for pro-poor rural and agricultural transformation. Though it may start as a relatively minor sector in the early stages of development, the RNFE eventually becomes a key contributor to economic growth. Because of the sector's small scale, its low capital requirements, and its seasonality and amenability to home-based activity, growth in the RNFE has important implications for employment growth and the welfare of women and poor households

publication date

  • 2007