Rural Income Generation and Diversification - A Case Study ... - Doria

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80 The proportion of income generated from forest products was lowest in the high-income group and at the same level of 4.2 per cent in both the low- and middle-income groups. The better-off households generally sold products of general higher value requiring a licence than those in the poorest group, which implies entry constraints among the poorest. Business activities and income Among the interviewed households, 59 per cent (117) operated businesses, as listed in Table 8. The poorest income tercile with the lowest number of household members and lowest investment potential had the lowest number and least diverse business portfolios, while the highest income tercile had both the highest number and the most versatile activities. The households involved in business generated income from 1.5 different activities, on average. Table 8. Types of business operated by households. Activity Fre- % of housequencyholds a % of all households beer brewing 50 43 25 retailing/vending 48 41 24 agricultural trading 20 17 10 mat weaving 8 7 4 hunting, fishing 7 6 4 carpentry 7 6 4 black/tin-smithing 6 5 3 house construction 6 5 3 transporting 5 4 3 tailoring 3 2 2 basket making 1 0,5 0,2 gathering 1 0,5 0,2 other 16 14 8 Total 178 a Percentages of households engaged in business activities (n=117) Source: the researcher’s own dataset 2003. Business activities mainly took place during the low agricultural season when household members were less occupied with agricultural production. A further contributory factor to seasonality was that beer brewing was possible only when the raw material was available, i.e., after harvesting. Thirdly, households started selling their own farm produce in May/June, which brought more purchasing power into the rural economy. The concentration effect was clear: from December to March more than 80 per cent of the business activities generated no income, whereas from June to September more than 80 per cent generated high income.
Beer brewing was, in most cases, women’s business and only men were involved in hunting, fishing, carpentry, tailoring, blacksmithing and transporting. Female-headed households were more often involved in small-scale shop keeping, retailing and vending than maleheaded households. Most of the households had made investments to start their businesses, the main source of invested funds being agricultural income (70%). Ten per cent borrowed money from relatives, and a few used savings or donations or borrowed money from their neighbours. According to the respondents, some businesses had been in the family for decades although many were rather recent. The month of April turned out to be important in terms of business investments. One explanation for this was that sweet potato is normally harvested in April, which facilitates the purchase of goods in bulk to be sold later at retail prices 37 . Wage employment and piecework Fifty-three per cent of the interviewed households reported income from wage employment or piecework, the average number of wage-employment-related activities being 1.6. Piecework on small farms (Table 9) was by far the most common activity (64%) and the usual location was the home village or other rural areas in the home district (89%). Wage income was most important to the poorest as it constituted 11 per cent of their total income. Table 9. The numbers of people involved in wage employment and piecework activities. Activity Frequency piecework on small farms 107 non-agriculture piecework 31 transporting 8 shop assistant 3 piecework on commercial farms 3 other industrial work 2 teaching 2 other civil-service work 1 mining 1 other 10 Total 168 Source: the researcher’s own dataset 2003. Non-agricultural piecework, including road construction and the clearing of roadsides, for example, was the second most common activity at 18 per cent. The category “other” included selling stones and operating grinding mills, for example. 37 Money is needed for agricultural inputs only from October onwards, and therefore income from sweet pota- toes can be invested in the business. 81
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Kaisa Karttunen Rural Income Genera
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University of Helsinki Department o
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CONTENTS 1. Introduction ..........
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Table 6. Percentages of income from
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WFP World Food Programme WHO World
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12 man 2002). These include income-
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14 The following questions were for
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16 of household comsumption is also
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18 Zambian farmers fall into three
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20 impact on rural poverty. Startin
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22 1992 consumer and transportatio
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24 The Government of Zambia (GRZ) i
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26 inadequate monitoring of the act
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28 Distributor Scheme was fully in
Page 30 and 31: 30 as tobacco and cotton the out-gr
Page 32 and 33: 32 households were directly afflict
Page 34 and 35: 34 If it had no control over the m
Page 36: 36 According to the AHM, a househol
Page 39 and 40: icultural economy was opened up to
Page 41 and 42: Similar concerns were shared by Tay
Page 43 and 44: order to reduce income variablity.
Page 45 and 46: of infrastructure development, the
Page 47 and 48: which implies that diversification
Page 49 and 50: Haggblade et al. (2002) argue that
Page 51 and 52: In many cases the processing of the
Page 53 and 54: 4.9 Rural income diversification in
Page 55 and 56: Table 3. Rural income-diversificati
Page 57 and 58: 1990s - made the farmers reluctant
Page 59 and 60: In addition to asset endowments and
Page 61 and 62: 5.1.2 The 2003 dataset The second s
Page 63 and 64: clarifying some concepts and assess
Page 65 and 66: 5.2 Methods The theoretical grounds
Page 67 and 68: able random variables not explicitl
Page 69 and 70: Incshare 25 or Inclevel 26 = β0 +
Page 71: 5.2.4 Choosing the estimation metho
Page 74 and 75: 74 Both cash and in-kind income wer
Page 76 and 77: 76 Share of income 100 90 80 70 60
Page 78 and 79: 78 The households considered market
Page 82 and 83: 82 The seasonality effect was clear
Page 84 and 85: 84 Since a lack of money was given
Page 86 and 87: 86 % of income 100 90 80 70 60 50 4
Page 88 and 89: 88 100 90 80 70 60 50 40 30 20 10 0
Page 90 and 91: 90 6.1.7 Grouping households accord
Page 92 and 93: 92 number of adult members, was cri
Page 94 and 95: 94 more likely to use fertilisers a
Page 96 and 97: 96 holds. According to the responde
Page 98 and 99: 98 The following process was follow
Page 100 and 101: 100 6.1.9 The results of the econom
Page 102 and 103: 102 The categorisation of household
Page 104 and 105: 104 Table 20. Determinants of the s
Page 106 and 107: 106 In some cases the former househ
Page 108 and 109: 108 indicated thus an opposite tren
Page 110 and 111: 110 The Simpson diversification ind
Page 112 and 113: 112 tares - the difference being st
Page 114 and 115: 114 which brought more purchasing p
Page 116 and 117: 116 diversification index. Block an
Page 118 and 119: 118 evidence that households had no
Page 120 and 121: 120 such as piecework and forest la
Page 122 and 123: 122 7.2 Changes in the households b
Page 124 and 125: 124 lower soil fertility, and the l
Page 126 and 127: 126 8. Conclusions and recommendati
Page 128 and 129: 128 Rural non-farm activities are l
Page 130 and 131:
130 Politiikkamuutosten seurauksena
Page 132 and 133:
132 References Abdulai, A. & CroleR
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134 CSO. 1997. Living Conditions Mo
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136 Ellis, F., Kutengele, M. & Nyas
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138 Heltberg, R. (mimeo) 2001. Comm
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140 Lanjouw, J.O. & Lanjouw, P. 200
Page 142 and 143:
142 Ruotsi, J., Lindberg, O., Seger
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144 Zulu, B., Nijhoff, J.J., Jayne,
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146 Annex 2. The theoretical framew
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148 1,050 millimetres, while in the
Page 150 and 151:
150 Annex 4. Schedule of the field
Page 152 and 153:
152 Annex 5. Three household cases
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154 In the 1970s and 1980s, and eve
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Rural Income Generation and Diversification - A Case Study ... - Doria

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