scholarly journals The Effect of Rural Development on Poverty Gap, Poverty Severity and Local Economic Growth in Indonesia

2021 ◽  
Vol 13 (3) ◽  
pp. 369-381
Author(s):  
Felix Handoyo ◽  
Achsanah Hidayatina ◽  
Purwanto Purwanto

The effect of rural development in reducing the poverty gap and economic growth has not been much analyzed in recent studies. This study examines the effects of rural development (as calculated by using the Village Development Index, VDI) on poverty and economic growth. Precisely, poverty is measured by the depth of poverty (as measured by Poverty Gap Index, P1) and poverty severity (as measured by Poverty Severity Index, P2) using the aggregate data at the district level in Indonesia. Understandably, many factors influence the effort to reduce the poverty gap in rural areas, and it can be started by improving rural economic development. The result of this study indicates that regions with the VDI categorized as “self-sufficient” and “developed” villages have the potential to reduce the depth of poverty and poverty severity in its areas and to increase economic growth. In contrast, underdeveloped and very underdeveloped regions in their VDI category experienced a more significant gap in the depth and severity of the poverty. This result implies that the Indonesian government must accelerate and improve the development of rural areas, especially in less developed regions. Thus, a better rural development status will attract more opportunities to grow rural economic activities and improve the community welfare.

2021 ◽  
Vol 13 (12) ◽  
pp. 6747
Author(s):  
Nevena Ćurčić ◽  
Andrijana Mirković Svitlica ◽  
Jovana Brankov ◽  
Željko Bjeljac ◽  
Sanja Pavlović ◽  
...  

The strategic planning of rural development is focused on both economic growth and sustainable development. Sustainable rural development is essential for conserving and improving resources, while economic growth contributes to a better standard of living. The aim of the research is to determine, using the participatory rural appraisal (PRA) methodology on the example of the village of Zlakusa, the economic activities developed in the village, the importance of rural tourism, and the scope of sustainable development taken into account in rural development. The results of the research show that the success of the rural community depends on: diversification of economic activities, which is accompanied by cohesion of the population through association and organization; organized activities aimed at local or republican authorities; activation of human and social capital; and initiating activities involving marginalized groups. Educating the population outside formal education improves the sustainable and economic development of the village and enables rural tourism to become an important part of economic activities and a channel for the commercialization of natural and cultural contents.


Author(s):  
Vladimir Tikhii ◽  
Olga Koreva

The current socio-economic situation in rural areas is characterized by a number of problems that hinder sustainable development. The low quality of life, the existing level and quality of life in the village, the lack of social infrastructure, the environmental situation, limited opportunities for work in the village, low incomes of the population compared to the city had a significant impact on the process of migration and deterioration of the quality of the labor force, depopulation of the rural population. In this context, the solution to the problem of rural settlement development is very relevant. The regional leadership chooses the direction of rural development without taking into account the current socio-economic situation at the municipal level and the peculiarities of rural settlement development, which reduces the effectiveness of territorial administration. The level of rural development was assessed on the example of the Orel region. The current socio-economic situation in rural areas is characterized by many problems that hinder its transition to sustainable development. The problem of depopulation of the population in rural areas is revealed. At the same time, the destruction of social and engineering infrastructure is observed, the area of cultivated land is reduced, and differences in the level of socio-economic development of the periphery, semi-periphery and suburban areas are increasing. The analysis of the differences in the socio-economic development of the municipalities of the Orel region indicates an increase in intraregional differentiation during the period under review and the absence of an effective intraregional policy aimed at reducing the existing socio-economic asymmetry within the subject of the Federation. Proposals for its solution have been developed, which should be implemented in the context of continuous monitoring of the state and development.


2019 ◽  
Vol 13 (1) ◽  
pp. 1130-1139 ◽  
Author(s):  
Florina Răzvanţă Puie

Abstract Business models have been developed to contribute to rural economic development, being used to create, deliver and capture economic and social value. The aim of this paper is to conceptualize the context of developing business models in rural areas, how these have evolved over time and what is the impact on future strategies in community development based on rural entrepreneurship. The increasing focus and attention on business model innovation has been seen among researchers in the last two decades, and several studies have been conducted to define the concept of business modeling. However, variations in business model definitions are noticeable and opinions regarding its components, structure and relationships inside a business vary as well. The literature review provided significant definitions on the key concepts on business models in rural entrepreneurship. The results of the research are to contribute in developing a framework on the understanding of various terms, such as business model, rural entrepreneurship, community development, and innovative entrepreneurship, with reference to shedding some light on conceptual meaning, purpose, methodology and scope of application. Capturing the existing trends in economic development in rural areas could be performed, based on the literature reviewed in this paper, in order to analyze the potential for diversification of economic activities, by finding the business models already implemented in the rural communities and measuring the impact they had on community development. In this way, a structure for a business model and an emphasis on business opportunities for the rural areas of interest could be developed.


2020 ◽  
Vol 6 (2) ◽  
pp. 144
Author(s):  
Ubong Imang

Economic diversification is fundamental in driving economic growth in rural areas. Encouragement of and stimulus for the economic diversification in the rural areas allow for the generation of opportunities and new economic chains. Apart from that it will assist in the diversification of the sources of income for the rural population. In Malaysia, apart from emphasising on development policies, economic diversification began to take place in rural areas through positive developments in the economic sectors other than rural agriculture such as tourism as well as small and medium industries. The importance of leveraging on the opportunities and available space has created a need to examine the pattern and defining factors of economic diversity that is taking place in rural areas. The discussion in this article pays attention to the diversification of the economy that is taking place in the rural areas in Sabah by selecting the village of Tambatuon as a study area. In addition to the secondary data, the data is also obtained through observations, involvement in the newly created economic activities and interviews with the village heads and members of the Village Community Management Council (MPKK). The results of the study confirm that economic diversification in rural areas is in place. Most of the new economic activities exist based on the initiative of the villagers who receive support from the Government and non-governmental organisations. Nevertheless, the study also shows that the ongoing economic diversification process is still limited to the horizontal level. Hence, there is considerable potential for economic diversification that can be further expanded to enhance the competitiveness of the rural population in general. In this context, rural residents should be creative by using available local resources from the surroundings to broaden the process of economic diversification. Assistance and external support, especially from the Government, is significant in providing an environment that can stimulate economic growth to ensure that the process of diversifying the economy continues to flourish and becomes sustainable. 


2018 ◽  
Vol 1 ◽  
pp. 350
Author(s):  
Taufik Raharjo ◽  
Ambang Aries Yudanto ◽  
I Gede Agus Ariutama

As the Indonesian government has been committed, that the national development should be puting more focus from the outer-ring or rural areas. One of the instrument to boost the rural development is Village Fund. This decentralization transfer purposively targets to improve the village society’s welfare and alleviate social gap existed among societies. Village-owned enterprise (Badan Usaha Milik Desa or BUMDes) is provided as one of the strategic mechanism to create the welfare by proactively engage the community itsefl. In fact, BUMDes may incorporate Village Fund as capital alternative to support their establishment. This paper highlights the crucial factors in order to establish a village-owned enterprise (BUMDes) in case of Cibogo Village, Cisauk Sub-regency, Tangerang Regency. The study deploys a qualitative approach. To collect the data, we are scouting, interviewing and establishing Focused-Group Discussion that involving the possible parties which may contributes in creating BUMDes. The result has not yet concluded as the process of the research still going on. We predicts that the communities engagement, empowerment and also government support should be taken into account in the early process of establishing BUMDes. Eventually, proactive society’s control and participatory would be decent factors to support the operations of BUMDes itself.


2021 ◽  
Vol 13 (4) ◽  
pp. 1969
Author(s):  
Donghui Lv ◽  
Huiying Gao ◽  
Yu Zhang

Identification of local priorities within each potential sector and implementation of a targeted development policy would definitely accelerate rural economic growth. In this sense, it is useful to examine each region’s industrial structural evolution compared to the whole economy and aggregate industries. Shift-share analysis has been confirmed as a useful method to measure regional economic differences and analyze the contribution of industrial structure. This paper selects five representative counties in Heilongjiang province and applies shift-share decomposition to analyze the change in rural economic development from 2000 to 2018. The change of economic growth in each selected county is decomposed into three components: national growth effect, industrial structure effect, and competitive effect, taking the national level as the reference. The results showed the following: (1) the trend of rural economic growth fluctuated greatly for nearly 20 years, distinguished by a mismatch of industrial structure with competitiveness for the selected counties; rural economies with an inappropriate industrial structure did not experience strong growth, despite high competitive potential. (2) The low-end agricultural structure and secondary industry structure led to the loss of each competitive effect; the tertiary industry structure based on economic structure servitization was rational, but the competitive effect did not work out. (3) Finally, this paper provided differentiated suggestions in accordance with local resources and priorities of the selected counties, so as to avoid excessive convergence and the lack of characteristics in industrial structure in rural transformation.


Author(s):  
Nataliia Vdovenko ◽  
Nataliia Korobova ◽  
Anna Nevesenko

The purpose of the article is to substantiate the innovation and investment principles of green tourism in rural areas in the context of decentralization with a combination of production systems in order to explore opportunities and provide proposals for further functioning of the national economy. Methodology research is to use a set of methods: economic-statistical, monographic, system, economic- mathematical, abstract-logical and others. The scientific novelty of the obtained results is the introduction of innovative, economically feasible and research meth- ods with regard to sustainable development of green tourism in rural areas in decentralization, which are associated with the adaptation of theories, principles and rules of great importance for sustainable rural development of green tourism in the context of global transformations. Conclusions. The modern principles of effective functioning of green tourism in rural areas in the conditions of decen- tralization at a combination of production systems are substantiated. The tools of the general research methodology with regard to sustainable development of green tourism in rural areas in the context of decentralization are proposed. Adaptation of a system of theories, principles and rules that are essential for the formation of sustainable rural development are related. Key words: rural areas, decentralization, green tourism, innovations, branch, sustainable development, aquaculture, tools, methods.


Author(s):  
Oderinu Hassana ◽  
◽  
Kadir Mumini ◽  
Tijani Adebayo ◽  

Nigeria has one of the countries whose experience of poverty and unemployment is on the high side makes this study to look into the effect of the economic lockdown during the global pandemic in the country, with the aim of making effort on how this effect can be translated into economic development. Survey research design method was adopted with self-administered questionnaire used to collect data. Findings revealed that in Nigeria COVID -19 outbreak effects was felt in almost all sectors and the aftermath greatly affected the country’s GDP and this adversely affect rural development in the country, which translated to a worrisome rate of poverty and unemployment. Hence, both individual and government have now seen that campaigning for economic diversification is not sufficient for economic development but rather a prompt swing into action by all is needed for sustainable development of rural areas to respond to the worrisome rate of unemployment and in turn high level of poverty caused by the COVID-19 lockdown in the country. It was recommended that government at all level as well as individuals and stakeholders should put in place actions that would gear up rural development and set policies at their various helms of affairs that would encourage economic participation of all citizens in all sector of the economy.


2021 ◽  
pp. 8-21
Author(s):  
Kh. B. Dusaev ◽  
A. Kh. Dusaeva

The article analyzes the number, employment and dynamics of monetary income of the population of the Orenburg region for a long-term period. The production of social and engineering arrangement of rural territories of the region for a number of years is analyzed in detail. Negative destructive changes and trends in employment and social development of rural areas are revealed. The directions of improvement and dynamic development of agricultural production, rural areas, and employment of the rural population are proposed.


2014 ◽  
Vol 651-653 ◽  
pp. 1623-1626
Author(s):  
Lei Zhang

Nowdays, science and technology are growing in leaps and bounds; the social economy is also increasingly developing. However, our country’s rural economy is still backward represented by modest income growth and poor living standard of the peasants, which have become a serious problem to be solved in our country’s economy and society. To boost rural economic development can hardly do without financial support; insufficient rural financial support will hinder rural economic development. Only increasing the financial support of rural economic development could promote rural production, rural development and income of the peasants.


Sign in / Sign up

Export Citation Format

Share Document