Theories and Determinants of Rural Development

1. Theories and Determinantsof Rural Development July 2014 Sang Bong Im Rural Research Institute, KRC

2. Definition of Rural Development • Process • Method • Program • Movement * Community development (Irwin Sanders)

3. Rural development is .. a process of economic, social and environmental improvement with people’s participation and government’s assistance

4. Measurement of Rural Development • Economic aspect - Income, employment * farm income, off-farm income • Social aspect - Population, equality (Gini coefficient) • Environmental aspect - Water quality, air quality, bio-diversity

5. Gini coefficient

8. Korea – one of the NICs

11. Economic aspects • Income - Profit, salary - Saving, expenditure, debt, asset - Poverty - Needs (desire?): needs assessment - Welfare - Life satisfaction (GNH) * H = M/D (Expected H = Expected M/D) Realized values.. * Analysis unit: Household; Coops; Company

12. Social aspects • Population - Number of people - Gender ratio - Age (-15; +64 - Increase/Decrease rate (Projected pop) • Equity: class; gender • Empowerment • Socio-psychological factor: community satisfaction; community attachment; organizational commitment; social cohesion

13. Environmental aspects • Water quality - BOD - COD • Bio-diversity - Number of species (animals, plants) • Land protection - Environment protection zone * Environmentally protected area - Nature conservation zone

14. Theory of Rural Development • Productivity • Export base • Cumulative causation • Modernization • Dependency

15. Theory of Rural Development • Productivity • Export base • Cumulative causation • Modernization • Dependency

16. Productivity • Y = f (L, Lb, K, T) • Agrarian reform • Human factor: personality, education - Behavioral change: KAP; BAV - Value & vision: direction - Reinforcement: strength (repetition, etc.) • Managerial aspects: combination & efficiency • Technology innovation: HYVs; agl. processing • Spread effects & stimulation strategies - Training & education; PR - Group approach: Reference group

17. Export base • Endowed resources • Local specialty • Brand accreditation • Quality control - Organic farming; service grading • Direct marketing (Internet.. Ag. products; B&B)

18. Structure reform • Pre-FT vs. Free Trade Era • Poverty eradication • Income increase • Living environment • Farm-size optimization • Retirement subsidy & direct payment

19. Structure vs. Process • Natural selection vs. strategic choice • Integrative view • Policy and people’s participation - Endogenous vs. exogenous • How participatory is participatory? • Rural development program and learning process - Learning by doing

20. Rural development model • Recreation facilities • Increase of visitors • Income increase • Experiential tourism program • Increase of employment • Community vitality • Life satisfaction • New business • Living convenience • Increase of residents • Mgt. innovations • Local finance • Infra • Efficiency of public investment • Environment & landscape conservation • Decrease of regional gap

21. How to realize rural development.. • Establish vision & goals • Analyze reality (internal & external) - SWOT • Choose proper strategy • Make specific plan and action * Dream + date = goal Goal/N = plan Plan+action = dream realization

22. A DREAM written down with a date becomes a GOAL. • A goal broken down becomes a PLAN. • A PLAN baked by ACTION makes your dream come true. (by Greg Reid)

23. Greg Reid.. • The greatest success we’ll know, is helping others succeed and grow. • In the end, the extent of our own success will be measured by the accomplishments we have helped create in others.

24. SMART Goals Principle • S : Specific, systematic, synergistic, significant • M : Measurable, meaningful, motivating • A : Achievable, action plans, accountability, agreed-upon • R : Relevant, realistic, reasonable, results-oriented • T : Time-based, timely, tangible and thoughtful

26. Case Analysis