Conscious Actions Critical for Rural Poor to Benefit from Growth in Asia: ADB Book
MANILA, PHILIPPINES - As an unacceptably large number of rural people have been left behind the remarkable economic progress in the Asia and Pacific region, a set of conscious policies and actions are urgently needed to include them in the development process, according to a new book by the Asian Development Bank (ADB). “Inclusive rural development is not a definite and automatic outcome of overall economic growth or even rural economic growth. A rising tide does not lift all boats,” concludes the Rural Development Outcomes and Drivers, released this week. Despite impressive economic transformation that the Asia and Pacific region experienced in the last five decades, persistent rural poverty is a major development problem. The book covers different but interrelated dimensions of rural development: economic, social and political. “If rural development is to be achieved within a reasonable time, direct actions are absolutely essential. This is particularly true if the objective of rural development encompasses inclusive rural development, says Satish Rao, Director General of ADB’s East Asia Department. According to recent estimates, over 1.6 billion people in rural Asia are poor, based on the $2-a-day yardstick. The seriousness of the rural underdevelopment further increases when other dimensions of development are taken into account. The dismal story of non-income poverty including lack of access to sanitation and safe drinking water facilities and poor schooling facilities for rural people reinforces concerns about rural underdevelopment. Most people with low social development, for example, those with high illiteracy rates, are in rural areas. Rural-urban disparities in both income and social development are significant, and in some countries they are rising. Most rural people do not have access to even basic services and facilities such as access to safe drinking water and sanitation facilities and banking services which are critical for their quality of life. The international experience of rural development offers important general lessons on policies and programs to achieve inclusive rural development objectives. The book refers to six conditions that are central to inclusive rural development. Among these, two are more predominant. First, opportunities for rural poor to gainfully employ themselves and improve their quality of life need to be provided. This requires paying more attention than in the past to both agricultural sector and the rural non-farm economy. This is necessary but not sufficient. Second, the ability of poor households to take advantage of the opportunities within and outside the rural economy must be improved and ensured. One without the other is unlikely to work. “The governments must clearly recognize the vital role they must play to achieve inclusive rural development,” says Nimal Fernando, the author of the book and ADB’s Practice Leader for Microfinance. Governments have to ease economic and social infrastructure constraints; pay particular attention to protecting and conserving natural resources, improve and protect security of land tenure; develop institutions that are critical for inclusive rural development, including dynamic rural financial markets; and facilitate the process of off-farm labor migration and implement policies and programs targeted to address social inequalities. However, governments have to ensure that their actions will not crowd out the private sector. The government actions must facilitate and promote the private sector role. About ADB | 
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