M190443

JULIUS NYERERE SCHOOL OF SOCIAL SCIENCES

NAME SURNAME REG NO//

HILTON JINGURA M190443

LECTURE: MR ZINGI

PROGRAMME: REGIONAL AND URBAN PLANNING

MODULE: RURAL ECONOMIES (RUPH221)

QUESTION: Discuss the linkages that exist between rural non-farm

economies and rural farm economies stating how the linkages have
contributed to rural transformations and transitions

MARK:

COMMENTS:

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Discuss the linkages that exist between rural non-farm economies and rural farm economies
stating how the linkages have contributed to rural transformations and transitions

The rural non-farm economy may be defined as all those activities related with waged work
or self-employment in income generating activities (including in-kind income) that are not
agricultural but located in rural areas (Davis, 2006). These activities include manufacturing,
mining, marketing, tourism and amongst others. Rural farm economy refer to those
agricultural activities such as farming, forestry, fish farming, poultry and among others. I
will discuss the linkages that exist between these rural economies and how they have
contributed to rural transformation and transitions in this essay. Some of the linkages which I
will discuss include flows of agricultural and other commodities from rural farm economy
producers to non-farm economy markets, both for local consumers and for forwarding to
regional, national and international market. These links are not only key components of
livelihoods and of local economies, they are also 'engines' that drive economic, social and
cultural transformations and transitions (IIED, 2019).

Firstly, flows of agricultural products and other commodities from rural farm economies to
non-farm economies markets for both local consumers and regional and international markets
is one of the linkages between rural non-farm economies and rural farm economies. Non-
farm based economies provides markets for the outputs of rural farm based economies
[ CITATION Sye06 \l 12297 ]. For example the Grain Marketing Board in Murombedzi Growth
Point offers a market to the farmers for selling their products with a reasonable price. This
have led to transformation and transitions of rural economy since farmers are now able to buy
inputs such as hybrids seeds and pesticides after obtaining capital from the market provide by
the rural non-farm economies. So the non-farm economy in the rural areas gets a boost via
the production linkage. Hence the linkage between rural non-farm economies and farm based
economy in terms of market provision for farm based products as shown.

To add on, supply of capital is also a linkage between rural farm economies and non-farm
economies. The rural non-farm economies provides capital for farm based economies through
services like loans, lay-bye, rent to buy and other programmes for example in Zimbabwe
there is Command Agriculture whereby a farmer is given inputs by the government is
expected to with his products, for instance on hectare of maize a farmer is expected to pay
three tonnes. This services allows farmers to have enough capital to buy or rent technological

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advance equipments and mechanisms such planters, tractors, irrigation schemes and amongst
others. With growing mechanization of agriculture which may be the result of technological
reform the input structure of the farm sector changes. As productivity increases, average farm
income increases undoubtedly. As a result of increase in production, there is also a
corresponding increase in the marketable surplus. The subsistence farm economy which starts
producing for the market becomes market oriented[ CITATION Kra20 \l 12297 ] . Hence the
linkages of between rural non-farm economies and farm economies in terms of capital as
shown above.

Moreover, the supply of raw materials is also one of the linkages that exist between rural
farm economies and rural non-farm economies. The rural farm economies provides rural non-
farm economies with raw materials for processing for instance Gokwe supplies local
industries with cotton for processing after processing the agro-processors may sell the
processed cotton to regional markets which leads to forward linkages. The local industries
can also sell the seeds back to Gokwe farmers which can leads backward linkages. These
linkages is leading to transformation and transition of rural economies since the rural areas is
now opening up for regional and international markets which is leading to urbanisation. The
well-known pattern of transformation that has been experienced by the countries at different
stages of development is the movement from agriculture (farm) to manufacturing and then to
services improved means of transport and communication are bringing villages more and
more nearer to the urban centres. Export markets have opened up opportunities for the rural
farm and rural non –farm enterprises. Trade and investment liberalization has brought about
rapid changes in agro-food system as multinational companies are entering into the food
market (retailing) and in agro processing industries.

Additionally, rural non-farm economies supply know-how to rural farm economies through
the provision of educated personnel. Rural non-farm based have institutions like colleges
which educated people on different programmes some of these programmes that helps the
rural farm economies include soil science, marketing and amongst others. For example in
Zimbabwe we have agricultural extension workers which are based on educating people in
rural areas on how good farming methods and others agricultural activities. More so,
educated personnel can also help with marketing rural farm based products to regional and
international markets [ CITATION Far18 \l 12297 ]. Rural non-farm economies plays an
important role in reducing the widespread rural poverty through generation of employment
and income and creation of effective demand for goods and services. This is leading to the

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transformation of the rural economy in the desired direction of inclusive growth. Hence the
linkages between the rural farm economies and rural non-farm economies in terms of supply
of knowledge as discussed.

Furthermore, consumption linkages are also part of the linkages that exist between rural farm
economies and non-farm economies in terms. Consumption linkages refer to increased
spending because of the rise in wages (labour income) and profits from the commodities
sector (capital income) (US Gvt, 2003). To respond to the opportunities that accompany rapid
changes in consumption associated with urbanisation and income, trade policy is just one
policy lever. A more profound change of focus in agricultural policy is required, towards a
more integrated food policy. This involves a shift from raising farm productivity of a few
staples, towards a strategy of meeting urban demand for non-grain products especially
horticulture, livestock and processed foods.  However, consumption linkages can bear a
negative impact if the earned income is spent on imported products or shifts demand away
from domestic products to foreign substitutes, in which case, the domestic industries will
suffer.

Moreover, production linkages are also linkages that exist between rural farm economies and
non-farm economies. Forward linkages occur when the output from resource extraction feeds
into the production activities of other sectors as inputs [ CITATION Sye06 \l 12297 ]. For
example forestry leads to timber extraction which can then lead to other productions such as
furniture and fittings, trusses, poles and among others production. It has been argued that a
key reason why such forward linkages may not develop in the local economy is that the
processing industries usually tend to be ‘residentiary’, i.e. they are usually located near the
final consumption market. So, when local demand for the processed products is low or non-
existent, the secondary value-added activities are likely to be located outside the local
economy. For example, In Chiredzi the processing plants are located near the plantations to
avoid transport cost.

To add on, backward linkages relate to the supply of inputs to the resource extraction.
Backward linkages are more likely to develop in the domestic economy, particularly where
the resource is located. A major reason for this is that a proximate supplier offers the
opportunity for the contracting firms to cut down logistical inefficiencies in their supply
chain [ CITATION Bul82 \l 12297 ]. Moreover, the need to minimise production cost while
adhering to high product quality and delivery standards in recent times has resulted in the

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adoption of production techniques that require firms to outsource activities outside their core
competences to the lowest cost and closest suppliers Backward linkages for example includes
to inputs to the oil, gas and mining projects from the national economy, which can include
local community-focussed procurement, such as security, clothing and food supplies and high
value-added items, such as capital machinery and equipment. Hence production linkages
helps in the transformation of rural economies in terms of technological advancement in
machinery and equipment.

Rural infrastructure and Policy are also linkages that exist between rural non-farm economies
and rural farm economies. Typically, rural infrastructure in the country encompasses rural
roads, major dams and canal works for irrigation and drainage, rural housing, rural water
supply, rural electrification and rural telecommunication connectivity.  Rural road
infrastructure: It provides mobility and connectivity to people living in rural areas. It also
provides the much needed boost to agricultural activities by making available water, seeds
and other raw materials to the farmers [ CITATION Hil87 \l 12297 ]. Rural road infrastructure: It
provides mobility and connectivity to people living in rural areas. It also provides the much
needed boost to agricultural activities by making available water, seeds and other raw
materials to the farmers. Overall and as per various studies, development of rural power,
irrigation, water, sanitation and road infrastructure can increase productivity, savings, income
and tourism and result in better jobs and health of rural people.

To sum up, the linkages that exist between rural non-farm economies and rural farm
economies and rural farm economies are a result of rural diversification as shown above and
this contributed to rural transformation and transition in terms of technological advancement,
urbanisation and modernisation and other elements due to the linkages such as consumption
and production linkages as discussed.

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References
Bulmer, T. & Victor, 1982. Input-Output Analysis in Developing Countries. New York: John
Wiley and Sons.
Davis, J., 2006. Rural Non-Farm Livelihoods in transition economies emerging issues.
Journal of Agriculture and Development Economies, 3(2), pp. 180-224.
Gvt, U., 2003. Attracting Economic Growth for the Rural Economy. Washington DC: us Gvt
Printing Office.
Haggblade, S., Hazell, P. & Reardon, T., 2007. Transforming the Rural Farm Economy.
Washington DC: International Food Policy Res Institution.
Hill, B. & Ray, D., 1987. Economics for Agriculture: Food farming and the Rural Economy.
London: Macmillian Education.
IIED, 2019. Rural Urban Linkages. [Online]
Available at: https://www.iied.org/rural-urban-linkages
[Accessed 12 December 2020].
Kapfudzarurwa, F., 2018. Rural Urban Linkages and Sustainable Development in Africa.
s.l.:Spears Media Press .
Kratzer, A. & Kister, J., 2020. Rural-Urabn Linkages for Sustainable Development. Taylor
and Francis : s.n.
Syed, R. H., 2006. The Rural Non-Farm Sector and Process of Economic Development.
s.l.:Investment Advisory Centere.

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