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196<br />

Rural Poverty Report 2011<br />

applied selectively or not at all, increasing the transaction costs of doing business, or<br />

quite simply stopping businesses from operating.<br />

A survey of constraints to rural businesses conducted by the World Bank in<br />

Nicaragua, Sri Lanka and the United Republic of Tanzania, 317 found that the top five<br />

constraints were public utilities (particularly electricity), the availability and cost of<br />

finance, marketing, governance and transport. Other constraints included ‘red tape’,<br />

taxes and weak or misguided sector policies. While the relative importance of these<br />

constraints may vary in different contexts, in general they increase the risks and<br />

transaction costs of doing business, and ultimately constrain the emergence of the nonfarm<br />

economy. Resolving those issues that matter most in specific contexts can help<br />

rural businesses flourish and create jobs for poor rural people, including many of today’s<br />

children and youth who are unlikely to find pathways out of poverty through agriculture.<br />

Building capabilities: strengthening access to education<br />

Improved skills and education are consistently found to be prerequisites for<br />

individuals to access higher-income, off-farm activities. 318 With the second MDG<br />

being the achievement of universal primary education, it is perhaps not surprising that<br />

many developing countries, and especially the poorer ones, have focused their<br />

education efforts on this area rather than on others.<br />

Yet education also needs to be of good quality, and<br />

most primary schools attended by poor rural<br />

“My thoughts, what I dream of and<br />

think of, is that at the time I’ll be older,<br />

will have changed my position, I’ll be<br />

older having many children, and my<br />

children will all know something, they<br />

will all be in school, there will have<br />

been some progress… I’ll have<br />

grown children who will support me.<br />

They will learn, get an education so<br />

they can work.”<br />

children have a way to go. In addition, many poor<br />

rural children do not get as long an education as<br />

they need, and second chances at non-formal<br />

education are often required. In addition, education<br />

through urban-based curricula will not necessarily<br />

best serve rural children, since much of its content is<br />

not immediately relevant to the opportunities open<br />

to graduates in the rural areas.<br />

Technical and vocational skills development<br />

(TVSD) is particularly important to develop the<br />

capabilities of rural youth to access economic<br />

opportunities both in rural and in urban areas.<br />

The term includes three main types of education or training: public school-based<br />

technical and vocational education, in the form of junior and senior secondary<br />

education; public vocational training centres and industrial training institutes; and<br />

training in the informal sector (most relevant for people who did not complete basic<br />

education), which often includes traditional apprenticeship training or traditional<br />

forms of training offered at artisan workshops. While access to primary education<br />

has improved across the developing world (though less so in rural areas), access to<br />

Ranotenie,<br />

female, 46 years, Madagascar

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