2011-2013
Subtheme 6.3: Urban-Rural Linkages and Nonfarm Rural Development (GRP 36)
Centers/ProgramsIFPRI
Target RegionsAsia, CWANA, LAC, SSA
Countries of Planned Research Potential Beneficiary Countries
 
Bangladesh, Brazil, China, Ethiopia, Ghana, Indonesia, India, Iran, Mozambique, Nigeria, Peru, Vietnam
 
Bangladesh, Brazil, China, Ethiopia, Ghana, Indonesia, India, Mozambique, Nigeria, Peru, Vietnam
CGIAR Priorities
2A - Maintaining and enhancing yield potential of food staples
2B - Tolerance to selected abiotic stresses
2C - Enhancing nutritional quality and safety
3A - Increasing income from fruit and vegetables
3B - Income increases from livestock
4A - Integrated land, water and forest management and landscape level
4C - Improving water productivity
4D - Sustainable agro-ecological intensification in low- and high-potential environments
5A - Science and technology policies and institutions
5C - Rural institutions and their governance
5D - Improving research and development options to reduce rural poverty and vulnerability
Development Activities - Development Activities
New Research Areas - New Research Areas
Financing Sources
Members: Canada, China, European Commission, Germany, Ireland, Netherlands, Spain, Sweden, United Kingdom, United States, World Bank

Non Members: Centre for World Food Study, CHEMONICS, German Development Institute, Human Science Research Council, Innovations for Poverty Action, Organization for Economic Co-operation and Development(OECD), Others, Unres+Other Sources, US Dept of Agriculture (USDA), Yemen
Project Overview and Rationale

The characterization of rural-urban development as a dualistic relationship devoid of interdependencies and synergies between the two areas is a relic of the past. Rural and urban livelihoods rely on both “rural-based” and “urban-based” resources. Moreover, new spatial and sectoral patterns have emerged along the rural-urban continuum as a result of migration, road accessibility, information technologies, and production flows in the modern value chain. In spite of the emerging dynamic relationship, it appears that urban-biased development persists.   

           

Two factors contribute to such inequitable development. Governments can favor the development and growth of the urban sector at the expense of rural areas through the implementation of heavy industrialization strategies. Per capita public spending in rural areas is often a small share of that of urban areas. In addition, trade policies often aimed to protect consumers, e.g., crop export taxes, can discourage agricultural production and rural development. The consequences of these policies may prevail with the rise of agglomeration and scale economies in cities and adjacent small towns. Proponents of such development ignore the inability of developing countries to strengthen the linkages between rural and urban areas to achieve food security, poverty reduction, and overall economic growth.               

 

These emerging challenges point to the need to pay close attention to the drivers (behind the links of rural areas with intermediate cities and market towns) that promote economic development and poverty reduction. The Rural-Urban Linkages for Development Research Program will implement applied research to better understand the linkages between urban and rural areas. Specifically, we will use state-of-the-art economic, statistical and geographical techniques, like GIS, CGE, and optimization models, to examine how resources like labor, capital, and goods can be moved freely along the spatial continuum to benefit both the rural and urban poor. We will use an economywide framework and information/data at the micro-level (mostly partial equilibrium) to examine policies which strengthen (weaken) the positive (negative) linkages to promote more equitable growth.

 

Goals and Objectives

 

The main objective of the Rural-Urban Linkages for Development program is to evaluate mechanisms and policy options to strengthen the linkages and promote the integration between rural and urban areas rather than their “separateness”, thereby reducing both rural and urban poverty. The project will initially focus on four areas:

  1. Identifying successful mechanisms and policies for reducing barriers that hinder the following linkages and development: (i) Public services provision and rural-urban linkages, (ii) Rural-urban migration, (iii) Rural-urban capital and financial flows, and (iv) Rural-urban flows of goods.
  2. Evaluating the role of the rural industrial or non-farm sector to strengthen the rural and urban linkages
  3. Analyzing institutions and organizations required to strengthen rural-urban linkages
  4. Evaluation of successful practices in integrating rural and urban linkages.

 



Project Outputs
Output Title
1: Methodologies in analyzing policy options and institutional designs to promote stronger linkages between rural and urban sectors for higher growth and greater poverty reductions in both rural and urban areas developed.
Output Description
After conducting an initial literature review to formulate the conceptual framework and research questions/hypotheses, the main research activities will focus on developing and adapting methodologies to assess the effects of urban/rural linkages on growth, poverty reduction and other human development indicators.

IFPRI has a comparative advantage in carrying out this research program due to its long-term experience in studying rural and urban poverty, the macroeconomic policies and investment strategies directly linked with rural and urban poverty, and the dynamic relationship between these two factors. Moreover, IFPRI has the unique advantage of being able to facilitate interdisciplinary urban/rural research, incorporating gender, urban nutrition, and agricultural and rural development strategies.
CGIAR Priorities
2A, 2C, 3A, 3B, 3C, 5B, 5C, 5D
Countries of Planned Research
Bangladesh, Brazil, China, Ethiopia, Ghana, Indonesia, India, Iran, Mozambique, Nigeria, Peru, Vietnam
Intended Users
Researchers in developing countries and donor agencies.
Outcome
Methodologies grasped and used by researchers in developing countries and donor agencies.
Impact
Improved urban/rural linkages in achieving higher growth and greater poverty reduction in countries."

Output Target
Year Target Type Target Description
2010
Practices
Methodologies developed, adapted by collaborators.

Output Title
2: Country studies conducted in assessing the effects of urban/rural linkages on growth, poverty reduction and other human development indicators (three years).
Output Description
A comparative assessment of the four country studies will be used to identify institutional and policy option to promote:
  • smooth rural-urban migration and the development of nonfarm activities (labor markets);
  • interlinkages between rural and urban product markets, particularly for high value commodities, agribusiness and the food retail sector (output markets); and
  • interlinkages between rural and urban capital and financial markets (factor markets).
CGIAR Priorities
2A, 2C, 3A, 3B, 3C, 5B, 5C, 5D
Countries of Planned Research
n/a
Intended Users
Researchers, policymakers, practitioners, and donor agencies concerning rural development and poverty reduction.
Outcome
Improved knowledge on the effects of strengthened rural/urban linkages on growth and poverty reduction in developing countries.
Impact
Improved urban/rural linkages in achieving higher growth and greater poverty reduction in countries."

Output Target
Year Target Type Target Description
2011
Practices
Assessment completed of four country-case studies using the developed methodology to analyze the policy options to strengthen linkages between rural and urban areas for promoting rural growth, reducing poverty, and achieving other human development goals.
2012
Practices
Results of four country case studies obtained after analyzing the data and surveys, and syntehsis of case studies conducted and communicated.

Output Title
3: A synthesis for identifying the effects and determining factors behind urban/rural linkages on labor markets, output markets and factor markets.
Output Description
A synthesis report to summarize the major findings and policy options to strengthening the linkages between rural and urban areas will be developed based on the results of Output 2. This synthesis will include a typology of potential interventions based on the best practices identified with respect to policies and institutional designs that enhance smooth rural-urban migration, and the development of nonfarm activities.
CGIAR Priorities
2A, 2C, 3A, 3B, 3C, 5B, 5C, 5D
Countries of Planned Research
n/a
Intended Users
Researchers, policymakers, practitioners and donor agencies concerning rural development and poverty reduction.
Outcome
Best practices identified and used with respect to policies and institutional designs that enhance smooth rural-urban migration, and the development of nonfarm activities. Policymakers are better informed about alternative strategies to reduce the transfer costs in linking urban and rural labor markets.
Impact
Improved urban/rural linkages in achieving higher growth and greater poverty reduction."

Output Target
Year Target Type Target Description
2012
Policy strategies
A synthesis report to summarize the major findings and policy options to strengthening the linkages between rural and urban areas.

Note: Financial Tables, Target Regions, CGIAR Priorities and Financing Sources show aggregated data for more than one MTP project and in particular for: - Subtheme 6.1: Priorities for Public Investment in Agriculture and Rural Areas (GRP 3) - Subtheme 6.2: Country Development Strategy Research (GRP 32) - Subtheme 6.3: Urban-Rural Linkages and Nonfarm Rural Development (GRP 36) - Subtheme 6.4: Support to the Implementation of the Comprehensive Africa Agriculture Development Program (CAADP) (GRP 44)


Allocation of Member, Non-Member Grants and other sources to projects, 2009-2011
in $millions

Project Member Actual
2009
Estimated
2010
Proposal
2011
Project Total
13.278
14.571
16.584
Theme 6: Development StrategiesMemberCanada
1.089
0.575
0.295
China
0.106
0.001
0.000
European Commission
1.222
1.331
1.000
Germany
0.105
0.000
0.000
Ireland
0.447
0.425
0.346
Netherlands
0.000
0.000
0.576
Spain
0.000
0.000
0.576
Sweden
0.977
1.340
2.322
United Kingdom
1.442
1.449
0.859
United States
4.786
5.571
8.394
World Bank
0.195
0.227
0.000
Non MemberCentre for World Food Study
0.047
0.009
0.000
CHEMONICS
0.725
1.167
0.108
German Development Institute
0.043
0.013
0.000
Human Science Research Council
0.020
0.000
0.000
Innovations for Poverty Action
0.018
0.043
0.000
Organization for Economic Co-operation and Development(OECD)
0.000
0.121
0.106
Others
0.195
0.106
0.000
US Dept of Agriculture (USDA)
0.168
0.000
0.000
Yemen
0.052
0.174
0.000
Unres+Other SourcesUnres+Other Sources
1.641
2.019
2.002


Allocation of Project Costs to CGIAR Priorities, 2009-2013
in $millions

Project Actual
2009
Estimated
2010
Proposal
2011
Plan 1
2012
Plan 2
2013
Priorities
Theme 6: Development Strategies
Project Total
13.278
14.571
16.584
17.248
17.938
2A
0.017
0.018
0.021
0.022
0.022
2B
0.017
0.018
0.021
0.022
0.022
2C
0.033
0.036
0.041
0.043
0.045
3A
0.286
0.313
0.357
0.371
0.386
3B
0.286
0.313
0.357
0.371
0.386
4A
0.197
0.216
0.246
0.256
0.266
4C
0.197
0.216
0.246
0.256
0.266
4D
0.203
0.223
0.254
0.264
0.274
5A
1.825
2.002
2.279
2.370
2.465
5C
1.825
2.002
2.279
2.370
2.465
5D
5.472
6.007
6.834
7.109
7.394
Development Activities
0.903
0.991
1.128
1.173
1.220
New Research Areas
2.017
2.216
2.521
2.621
2.727


Project investment by developing Region, 2009-2013
in $millions

Project Target Regions Actual
2009
Estimated
2010
Proposal
2011
Plan 1
2012
Plan 2
2013
Project Total
13.278
14.571
16.584
17.248
17.938
Theme 6: Development StrategiesAsia
3.007
3.215
3.630
3.775
3.926
CWANA
0.773
0.806
0.903
0.939
0.977
LAC
1.461
1.603
1.824
1.897
1.973
SSA
8.037
8.947
10.227
10.637
11.062