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Rural Economy

Support for businesses and services – particularly in pre- and post-processing of agricultural products, but also in the non-farm economy – is of great significance for the socio-economic development of rural areas.

Titles page of the Position Paper Rural Development – Rural Economy
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This publication is a section of the WHH position paper on rural development.

In many countries of the Global South, the majority of the population work in agriculture. However, this sector is often unable to provide sufficient jobs and income. Economic poverty is therefore still one of the main problems in rural areas, although many people already improve their income by taking on supplementary work outside agriculture.

Support for businesses and services – particularly in pre- and post-processing of agricultural products, but also in the non-farm economy – is of great significance for the socio-economic development of rural areas. This is the only way in which new sources of income can be developed for the rural population, who are most affected by hunger. The creation and expansion of physical infrastructure is an essential precondition for this development, particularly in neglected rural areas.

Good governance also entails the creation of functioning state institutions which ensure the implementation of participative regional planning and the development of physical infrastructure designed to reduce poverty. Good governance also entails the creation of functioning state institutions which en-sure the implementation of participative regional planning and the development of physical infra-structure designed to reduce poverty.

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