Transcript Slide 1
Developing rural institutions that strengthen the voice of the rural poor Eduardo T. Gonzalez Prepared for the IFPRI-ADB Policy Forum 10 August 2007 Institutions – rules & organizations Institutions - the rules and formal/informal structures that govern the interaction among economic, social and political organizations (Greif, 2003; North, 1990). • Rural institutions mediate the access of the rural poor to assets, financial and other services, technologies and markets. What ails rural institutions? Lack of economies of scale and bargaining ability. High transaction costs in accessing markets Patron-client relationships Gendered or caste-based norms of behavior Why have past approaches not been effective? Not based on “voice and choice” of actors Not much attention paid to heterogeneity or context-specific factors Drift in attacking rural poverty toward welfare transfers instead of empowerment for income generation and social development. Institutions tended to be controlled by the powerful non-poor. Why is there a need for a new institutional framework? Greater reliance on private and collective initiatives of the poor themselves represents a turning point. Achieving competitiveness of the poor in the context of market forces can “help the poor play by the rules”. Rural is more than agriculture: there’s a need for multi-sectoral empowerment approaches Recognition of heterogeneity of circumstances is important. Are there new opportunities for success? Widespread progress with the use of social capital and the growth of local organizations allows new people-centered approaches. Greater leeway in experimenting with approaches that can place the poor and their organizations as agents of change. Increased importance given to culture and environmental problems. There is some evidence that a steep learning curve pays off with scaled-up empowerment. What are the entry points? Programs to reduce access deficits - access to land through land coalitions - access to markets through producer groups Programs to promote social incorporation - capacity-building to make the poor agents of change - increased use of partnerships with civil society - effective use of representation What are the entry points? Programs to improve context - creating political infrastructure for rural participation - pursuing a territorial approach (decentralization) - solving the “last mile” problem (improving reach) Things to remember There are no blueprints. Most everything is context-specific Initially, there may be path dependence.