The Economics of rural organization: theory, practice, and policy

Abstract

Why have some rural development policies succeeded and others failed? The book sheds light on that question by defining a new branch of economics that explores economic relations in the rural sector of developing countries. The editors contend that the problems of imperfect information and missing markets are especially acute in poor, agrarian societies, and that to remedy market failures, one must understand their origins. The book thus explains the economic institutions, contractual arrangements, and technological constraints found in rural land, labor, and credit markets. It not only contributes new empirical evidence and expands economic theory, it also provides fresh insights for agricultural policymaking and institutional reform. Drawing together recent theoretical work, case studies, and historical research, it addresses some of the most pressing problems facing developing countries: how to promote financial integration of the rural sector, how to rationalize the use of land and water, and how to design and administer rural tax and transfer policies.