Economic Themes (2011) 49 (2) 8, 263-279
Miroslav Mirković
Abstract: Rural non-farm economy has a significant potential for reducing poverty of the rural population. In accordance with this, two directions of non-farm diversification have been identified: demand-pull and distress-push. The term demand-pull is used to describe a situation in which those employed in agriculture seize more lucrative employment opportunities in the rural non-farm sector, while the term distresss-push describes a situation in which inadequate agricultural incomes and other negative factors „push“ workers into poorly paid RNFE. From an economic point of view, both processes have a potential for reducing the level of poverty. The current structure of employment and income of rural population shows that distresspush diversification dominates in Serbia as a reflection of the unfavorable economic environment and poverty. From the above reasons, it is necessary to take a series of stimulating measures and activities to improve the current situation and prospects of rural areas in Serbia.
Keywords: diversification; demand-pull; distress-push; poverty
THE EFFECTS OF RURAL NON-FARM ECONOMY ON REDUCING POVERTY
Miroslav Mirković
Abstract: Rural non-farm economy has a significant potential for reducing poverty of the rural population. In accordance with this, two directions of non-farm diversification have been identified: demand-pull and distress-push. The term demand-pull is used to describe a situation in which those employed in agriculture seize more lucrative employment opportunities in the rural non-farm sector, while the term distresss-push describes a situation in which inadequate agricultural incomes and other negative factors „push“ workers into poorly paid RNFE. From an economic point of view, both processes have a potential for reducing the level of poverty. The current structure of employment and income of rural population shows that distresspush diversification dominates in Serbia as a reflection of the unfavorable economic environment and poverty. From the above reasons, it is necessary to take a series of stimulating measures and activities to improve the current situation and prospects of rural areas in Serbia.
Keywords: diversification; demand-pull; distress-push; poverty
