Policies to Promote Non-farm Rural Employment in Latin America

This paper analyzes the role of state policies in the promotion of rural non-farm employment in Latin America.

The paper analyzes:

• The importance of rural non-agricultural employment and income;
• Trends in rural non-agricultural income (RNAI) and employment;
• Stages, conditions and means of development of rural non-agricultural employment (RNAE).

The paper further discusses the determinants of access to RNAE and RNAI by rural households and individuals. These include:

• Dynamic regional economy;
• Level of household income;
• Land;
• Education;
• Infrastructure;
• Gender.

It concludes that:

• Policies aimed at the rural sector must be oriented towards providing incentives that stimulate the provision of rural non-agricultural jobs;
• If growth in the wider rural economy is not promoted, constraints in human and physical capacity will limit agricultural growth;
• Local government has a particular role in promoting diversification through capacity building, fiscal incentives, and provision of infrastructure;
• Specific efforts are needed to redress gender imbalances in non-farm opportunities.