Agriculture, rural employment, and inclusive growth

This paper argues that the development of the rural economy is a key factor for achieving inclusive growth, one that creates jobs, draws the majority into the economic and social mainstream, and continuously reduces mass poverty. Employment conditions in Philippine rural labor markets and agriculture can be characterized as casual or informal, with low skill requirements, with low productivity and returns, and a greater concentration of poverty. This is consistent with a prominent strand of development literature that posits a traditional sector, mostly located in rural areas, and highly depending on agricultural livelihood. Development involves the change in economic structure, anchored on productivity growth in agriculture, involving a movement of labor from the traditional sector, as well as accelerated capital formation in industry and services. ...