RURAL INDUSTRIALIZATION

The development of industrial activity in rural areas.

"Our global approach is to consider rural industrialization as an alternative to improve income and employment generation in the rural area. […] A strategic choice for rural development is to stimulate rural industrialization to absorb labour, raise added value, and thus get higher income. In reality, evidence showed that in rural areas of many developing countries, income from non-farm activities is a very important source of the total income of the farm households."
(Quang Dieu, P., and N., Trung Kien, From Material Base Development Toward Rural Industrialization. The Case of NESTLE and Dairy Household in Ha Tay Province, The Vietnam Development Forum, 2004, visited 2009-08-04)

Rural industrialization is strictly defined as the development of industrial structures (sites or techniques) in rural zones, in agricultural production as well as in all other fields, such as the agro-industry and crafts sectors. However, most definitions refer only to production and transformation activities in the agro-industry sector. Some even exclude production techniques, mechanization and modernization.

Rural industrialization may involve the establishment of public, private, or cooperative structures, by public or private companies, or local solidarity groups. It can be part of governmental anti-poverty and modernization programs. It can take place on a large scale, involving multinational corporations and governments, or on a small scale, involving local populations.