Enterprises Development for Value Addition: The Missing Piece in Rural Development?
Claudia Koschka, Frank Hartwich
United Nations Industrial Development Organization, Agribusiness Development Branch, Austria
Rural development in least developed countries has been in the focus of development agents and Governments for many decades now. Despite the enormous evidence on both the positive and negative impacts that rural development projects have had many rural dwellers still remain in poverty. This paper argues that rural development has often focused too much on primary production and marketing of often low-value agricultural commodities neglecting the income and poverty reduction potentials of value addition and an adequate distribution of this value added among rural households. Such value addition can lie in producing better quality products and further adding value through improved packaging, transport, and storage as well as in processing and transforming products for local markets and beyond.
Keywords: Primary production, rural enterprise development, rural households, value addition, value chain
Contact Address: Claudia Koschka, United Nations Industrial Development Organization, Agribusiness Development Branch, 1220 Vienna, Austria, e-mail: ckoschkayahoo.de