Rural Economy and Development

The rural economy has potentials for contributing to the achievement of Sustainable Development Goals 1 – End Poverty; 2 – Zero Hunger; and 8 – Decent work and economic growth. As of 2020, it was reported that approximately 43% (nearly half) of the world’s population lived in rural areas. Although political and economic instability continues to force a significant portion of this population to migrate to bigger cities in search for better living conditions. This is affecting global food production. In agriculture, the contribution of rural communities to food production makes the industry central to rural economy and development. Many rural communities depend on agricultural activities such as crop and livestock farming, fisheries and forestry to survive. It is estimated that smallholder farmers with an ownership of less than 2ha of farmland contribute an average of 75% to global food production. Majority of these smallholder farmers reside in rural communities. This is why agriculture is easily adopted as a tool for rural development.