Rural Urban Market Linkages

Topics: Market, Agriculture, Marketing Pages: 54 (17952 words) Published: January 25, 2013
Conceptual framework
Chapter 1 outlines the background to urban - rural linkages:| 1.| It describes the recent phenomena of urban growth accompanied by increased food demand.| 2.| It describes the role of small and intermediate urban centres in facilitating exchange between the towns and the countryside.| 3.| It defines the objectives of improving linkages by making marketing interventions.| 4.| It outlines the purpose of the guide as a framework for studying market linkages.| 5.| It provides a summary of the overall process that is recommended by the guide.| BACKGROUND

Context - urban growth
By 2030, 60 percent of the world’s population are expected to be living in urban areas. As shown in Table 1, estimates of urban population increases vary widely, from a doubling to a trebling over a 20-year period. Population increases in less developed countries are also adding significantly to the proportion of the urban population that is living below the poverty level. fifty percent of the population below the poverty line is common and figures for the year 2000 were as high as 80 percent for some cities. This urban expansion has four main consequences for food security, as shown in Box 1. Role of small and intermediate urban centres

Population growth is not solely in larger metropolitan centres - the mega cities. The number of small and intermediate sized urban centres are also increasing and also have an important role as links in the marketing system (as explained in Chapter 2). The International Institute for environment and development (IIED) estimated that by 2000, more than 60 percent of the urban population of Africa, the Caribbean and Southeast Asia (as well as Europe) were in urban centres of less than half a million inhabitants. These market towns and administrative centres are of critical importance in facilitating exchanges between rural and urban areas. Rural populations depend on these urban services, including access to traders and markets to dispose of their agricultural produce and to access the retail stores and other facilities located in local urban centres. The intermediate centres also provide employment opportunities for rural populations and may, in some cases, help to decrease migration pressure on the larger urban centres. TABLE 1

Selected estimated percentage increases in urban populations (base year 2000) Country| City| 2010
Percent| 2020
Bangladesh| Dacca| 57| 145|
Burundi| Urban population| 77| 212|
Ghana| Accra| 51| 127|
Guatemala| Guatemala City| 46| 112|
Malawi| Urban population| 67| 180|
Namibia| Urban population| 45| 110|
Nepal| Urban population| 61| 158|
Pakistan| Lahore| 47| 116|
Source: FAO, Aragrande and Argenti (2001).

Box 1
Impact of urbanization on food security|
Increased competition between urban land uses and agriculture land on the urban perimeter;| Increased food supplies required, leading to greater traffic congestion and pollution, and to stress being placed on overloaded food distribution systems;| Changing food consumption habits, with increased demand for convenience and processed foods, increasing food quality and public health concerns; and| Distance of low-income families from markets increasing, meaning additional costs in time and transport to access food supplies.| Source: FAO, Aragrande and Argenti (2001).|

Box 2
Impact of polarization on small and intermediate urban centres| As long as issues of social and spatial polarization (so often linked to economic reform, restructuring and the internationalization of trade and production) are not addressed, it is unlikely that regional economic growth policies can contribute to a more equitable development and more successful poverty reduction.| This is one of the main reasons behind the failure of so many past regional development policies focusing on the role of small and intermediate...
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