REED

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Pro-poor growth & poverty reduction

The growth of the non-farming rural economy does not necessarily benefit all sections of the rural population.

• In the most developed agricultural areas non-farming income is generally higher, although there appears to be no direct relationship between non-farming income and farm size.
• Better-educated people have access to higher-paid occupations.
• Women and girls usually have less access to formal education.
• The rural poor are most likely to be particularly disadvantaged. Many of them are poorly educated or illiterate, and they normally have little or no access to resources such as land, water, capital or formal employment.
• Households headed by females are frequently among the poorest. In many societies women are not allowed to work outside their homesteads or in public places, which reduces their income opportunities.

The poverty reduction strategies of many governments and donor organisations acknowledge the importance of combating rural poverty. Therefore, rural economic development linked to agriculture has a high priority. Most studies on rural non-farming income conducted over the past 20 years analysed data from household surveys at a district or provincial level. They demonstrate the importance of income from non-farming activities for the livelihood of the poor in rural settings. Yet little is known about the ingredients of success, of interventions that promote rural non-farming economic development. Approaches undertaken to date include Small and Medium Enterprise (SME) development, vocational training, investment in basic infrastructure, provision of access to markets and public goods, as well as preferential access to capital.

The framework for Rural Economic and Enterprise Development (REED) is a tool for analysing, planning and evaluating Rural Development. It helps to create a common understanding between all stakeholders. Priorities can be jointly identified and the responsibilities for different activities can be discussed and agreed upon. Different donors can co-ordinate their activities with regional actors and thus avoid overlapping of efforts.

REED is based on a joint initiative by both multilateral and bilateral donors, designed to foster a common understanding of the key issues in a field of growing interest to the rural development community.