This paper examines the transformation and diversification of the rural economy in Asia, focusing on the role and importance of the rural non-farm economy and employment in economic transformation and related diversification of employment and income opportunities for rural communities. Looking at the linkages across sectors (agriculture and others) and across regions (urban and rural), the paper stresses the role of agriculture and urban centers as key drivers of the rural non-farm economy. It considers strategic directions to be pursued to leverage diversification opportunities for rural economies to reduce rural poverty and inequality.
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