The Concept of Integrated Rural Development

Dr. Frithjof Kuhnen*

1. Introduction
Over the last couple of years, the disappointment over the results of past development
efforts in many countries has been growing in the world at large. Nobody brought it
more emphatically to the notice of the general public than Robert McNamara in several of
his speeches, culminating in the well-known statement that, in the 40 developing
countries for which data are available, the upper 20 per cent of the population receives 55
per cent of the national income, while the lowest 20 per_cent receives 5 per cent only.
This gap between rich and poor has only been widening so far, and, in many cases, has
led to worse conditions for the poorer segments of the population. The traditional
socio-economic environment of the rural population has often been destroyed without
being replaced by a better alternative. The increasing population could not be absorbed by
the existing rural system, this leading to massive migration to cities, and resulting, in
many cases, in a virtual breakdown of urban societies. Measures for increasing
agricultural production concentrated on the improvement of land productivity in the
better areas with larger farms, leaving behind the poorer masses in the rural areas.
It is noteworthy that the increasing differences between haves and have-nots generated by
past development are not restricted to the widening gap between rich and poor. The same
growing dualism can be observed between regions within countries, and, on a world-wide
scale, between industrial and developing countries. Reference is made to the proceedings of
the UNCTAD-conferences.
In the final analysis, the reason for the very unsatisfactory results of past development
efforts seems to lie in the basic approach. This approach can be characterized as an
attempt to promote development by applying economic principles derived from experiences
in developed countries. It was not fully realized that the conditions in developing
countries were far more different, as regards for instance factors like
—the rate of population increase,
*Uberreicht durch
Prof. Dr. F. Kuhnen Institut fur Auslandische Landwirtschaft der
Universitat Gottingen
— 138 — m m&mm %
—the degree of international communication,
—the educational level,
—the availability of new technologies,
—the value system of the population, to
mention only a few examples.
The reassessment of development strategies during the last years tried to surmount
the trial-and-error period and to use the experience of the past to design a new strategy
which, it is hoped, might yield better results. For the development of the rural areas,
during recent years, the concept of integrated rural development has been widely
accepted, and the aim of this paper is to introduce this concept and the problems of its
operationalization.

2. Basic Issues of the Concept of Integrated Rural Development

It is not possible to understand the concept of integrated rural development without

familiarizing oneself with some basic assumptions on which the concept has been built.
This will be outlined in the following four chapters,

a) Rural development is part of the overall socio-economic development

Rural poverty is caused primarily by a limited access to resources. This limitation
may result from an imbalance between population and available resources. We all know the
difficulties of improving the balance by applying a successful population policy, and we
know that a solution at long term will require a gradual closing of the gap between economic
and population growth.
Besides the problem caused by population growth, access to resources is quite often
limited for the rural poor because of the current socio-political situation. Here, the limited
access to resources is deliberate, and the result is, that the available resources are
underutilized because of obstacles of a socio-cultural and political nature. There are
numerous examples of such a situation. Landless people cannot obtain land for cultivation,
while landlords use their land extensively only; subsistence farmers have difficulties in
obtaining credit; scarce means of production are supplied to certain sectors of the po-
pulation only, etc.
If access to resources, i.e. to the factor responsible for rural poverty, is determined by the
general socio-political situation, there cannot be a "rural" explanation to the rural situation.
The reason for the poverty of rural areas is often to be sought outside these very areas.
The ultimate cause of rural poverty is the lack of integration of rural areas
 The Concept of Integrated Rural Development — 139 —

into the overall socio-political and economic system. This holds true, not only for the
national, but for the international system as well.
Poor rural areas and rural population find themselves in a marginal situation; they-are
not part of the overall system. They do not participate in the development process, either
actively as producer, or passively as receiver of goods and services. Likewise, they
hardly participate in the decision-making process. The result of this marginality is
widespread apathy, especially among the older generation of the rural poor, and a
dangerous gap between aspiration and reality- among the youth.
The centre-periphery model of development theory offers a certain insight into
the-consequences. According to this model, the interests between centre and periphery
are-controversial, and only a change in the relations makes the integration of the periphery
into the overall system possible. If this applied to our problem of rural poverty, it means-that
the situaton of the rural poor can only be improved if these are integrated into the overall
system. This demands that society becomes aware of the poverty problem and creates a
suitable political climate which could result in budget allocations in favour of the poor
areas. At the international level, it may require a new international division-of labour.
Here, it becomes clear that development is more than economic growth. The necessary
political decisions will not come from change in production methods and economic
situation alone. They also require a change in the social and political infrastructure, in-
human relations and especially in the power structure.
b) Development is a system of interrelated social change
Development is a process resulting from the integraton of a number of elements,,
especially
—goals based on existing values,
—resources, natural as well as human,
—available technology,
—forms of socio-political organization.
These elements and their components are integrated in a system in which the elements-are
closely interrelated, i.e., if one element changes, the whole system changes.
We can illustrate this by an example from the agricultural sector: if we want
to-increase productivity in agriculture, the change is not brought about by the
mere-application of new seeds and fertilizer.
The implementation of a new technology may require new forms of social organization!
— 140 — mm&mWf &
such as the grouping of peasants in peasant's associations to allow the distribution of
inputs, and instructions as to their applicatin.
The continuous training efforts may affect peasant values, and, subsequently,
goals. If our plan is successful, peasants may change their cropping patterns in favour of
crops which proved more profitable. This has effects on other parts of the farm, and may,
for instance, cause a reduction of animal husbandry. If the proceeds of animal husbandry
belong traditionally to the women, as in some societies, this affects the internal relations
of the family. We may, however, come to the conclusion that the new technology cannot be
applied without a change in the land tenure system. A change in land tenure affects in turn
the power structure and may change the goal-setters in the society and, thus, the relevant
goals. This example could be elaborated further. It all results in the recognition that the
system approach reflects most closely the development process, and projects and
programmes aiming at one isolated element of the system are dysfunctional. It is true
that it often is very difficult to quantify the influence of individual elements. This, however,
must not prevent from understanding development as a system of interrelated changes
which requires integrated instead of isolated measures.
c) Agriculture has a multitude of functions in the development process

Within the interrelated system of elements in the development process, agriculture has a
number of very important functions: The most basic one is the production of food and raw
materials for its own consumption, for the non-agricultural population, and for the
developing industry. The increase in agricultural productivity sets the whole development
process into motion. At the start, the increase of soil productivity is of the greatest
importance, but, soon, it must be followed by growing labour productivity to increase the
incomes of agricultural labour and free manpower for the secondary and tertiary sectors.
The high population increase in many countries, for some time, makes it imperative for
agriculture to absorb the surplus population for which there is no ether alternative, but,
sooner or later, the other sectors will develop and draw on the human resources in
agriculture.
This process is related with the transformation of subsistence agriculture into
market-integrated agriculture, which not only sells its products, but requires
non-agricultural goods and services. With this process, agriculture fulfils its third
function, the creation of demand for non-agricultural goods which is a precondition for the
expansion of the secondary and tertiary sectors. On the one hand, this demand meets the
requirements of market-integrated agriculture, such as fertilizer, machinery and tools,
etc.; on the
 The Concept of Integrated Rural Development — 141 —

other hand, an increase in farmers' income results in a demand for consumption goods on
the part of the rural population.
In order to fulfil the fourth function of agriculture, part of the increased agricultural
income has to be skimmed off,this leading to capital formation in various forms. This
may take place in monetary form through taxes, rents or prices. Especially for agri-
culture, two other forms play a great role. The upbringing of children, who, later on, leave
agriculture, is an important form of creating human capital. Agriculture also creates physical
capital in the form of infrastructure and means of production. Especially the numerous
small increments of capital stock through fencing, planting of trees, improvement of
livestock, levelling of land, etc., in time and on thousands of farms contribute greatly to the
capital stock of a society.
It may be added that, in some countries, agriculture has the tasks of contributing
towards improving the situation of the balance of payments by providing export goods or
substitution for imports. Likewise, in recent times, the function of preservation, careful
handling and protection of environment has been gaining importance.
d) Agricultural development is one aspect of rural development
The functions of agriculture in the development process, as outlined in the last chapter,
indicate that agricultral development cannot take place without a simultaneous development
of other sectors. This holds true fur industry and services, as well as for non-agricultural
parts of the rural sector. Even is it starts there, rural development goes far beyond
agricultural development and,, in accordance with the system concept, includes all aspects.
For instance, in many overpopulated countries, a more favourable land-man ratio, which is
necessary for increasing agricultural productivity, cannot be attained by the physical
extension of the farms. Here, the possibilities lie in the application of improved
technology and better management systems. This, again, is a function of development in
non-agricultural fields of the rural area, i.e. training, research, and marketing facilities.
Othe rexamples could be quoted. While the important fields involved in and to be
incorporated into the rural development policy will be dealt with the subsequent chapter,
two will be mentioned here already because of their importance: —Agricultural
development depends on a suitable framework of institutions which have to be created or
adapted to the requirements. These include administration, communication, market, credit
and extension services, at village, regional and national level. —Land tenure is one of the
utmost importance for the prospects of agricultural development because it restricts access
to land and to other resources, and leads to underu-
— 142 — -g: J|- S. « W 5£ . . - . • •
tilization. It determines the power^structure and the incentive to produce, save, and
invest, and restricts mobility. We all are aware of the difficulties of changing the
existing land tenure system, which can be-successfully accomplished only if it is acc-
ompanied by a reform of land management and by the supply of supporting services
like credit, marketing, and extension. It should also be understood that land reform is
a permanent process. There is no ideal land tenure system, but only one adapted
to the social, econmic, and political situation, and, as this is changing, land tenure
has to be adjusted constantly.

3. Aspects of Implementation of Integrated Rural Development Policy

After discussing the basic assumptions underlying the concept of integrated rural
development, the following chapter will concentrate on the contents of a similar
program and discuss some issues of its implementation.
a) Components of integrated rural development
Integrated rural development is, at the same time, a goal and a methodological
approach. The goal is to include the neglected masses of rural poor in the process of
increasing the well-being of mankind. The approach for reaching this goal is the
application of a bundle of well-balanced measures of economic and socio-political nature. In
this process, by applying a system research method, the interdependent relation of all
economic, social, political, and technical factors has to be taken into account. Here, we
have to admit that a quantitative analysis would create many difficuiculties.
The content of this bundle of measures will vary in different cases. Therefore, any
approach to rural development has to start with the assessment of the current situation
and the identification of existing bottlenecks. The following, somewhat abstract,
checklist gives an idea of the internal and external factors to be considered:
1. Natural resources, agricultural and non-agricultural;
2. Human resources(quality and quantity);
3. Pattern of social organization(values, social stratification mobility, power structure
land tenure system);
4. Economic structure(agricultural production structure, industry, market relations, etc,);
5. Technology in agriculture and in the non-agricultural sector;
6. Infrastructure(physical infrastructure, transport and communication, social infrastru
cture, spatial order);
7. Institutions and organizations (administration, people's organization, etc.);
•8. Services (marketing, credit extension, social security);- -
 The Concept of Integrated Rural Development — 143 —

D. Education and training (formal and informal).

The application of measures concerning the 'sectors listed above-perhaps with some
additional ones-to a specific area,* will allow the identification of the elements promoting
and restricting development possibilities, as well as their 'interrelationship.

b) Differentiation in time and space

The bottlenecks and key-factors pointed out are the starting point of activities for
tackling the problem of rural poverty. However, integrated rural development cannot be
understood as a big pot in which all shortcomings are poured and stirred up. Even after
adding many ingredients, such a soup will not taste good. Because of limitations in
resources and capabilities, all the necessary tasks cannot be undertaken simultaneously.
Bottlenecks have to be recognized accordng to their relative importance. The first problem
to be dealt with is the creation of the minimum requirements for development, and then the
gradual expansion of the activities can follow.
In this connection, a reasonable proportion of activities ( for increasing production as
compared to those for improving the social conditions is of the utmost importance. Here, the
fact that projects for infrastructure and social amenities are easier to implement than
those to increase production plays a role. Likewise, the necessary time-span for results to
be achieved has to be taken into account. It will be longer as regards infrastructure and
social projects.
On the other hand, a minimum of infrastructure is a precondition for an efficient
division of labour in the economic process. Only a network of communication makes it
possible to create, between rural areas and urban centres, relations which allow each to
contribute to the requirements of the other according to its capabilities. Such a process of
differentiation of structure and integration of function at the regional level means the
creation of a larger economic system which has a greater potential than the small .•global
society of a subsistence economy.

c) Area development as example of integrated rural development

The process of development in all countries is structured by national development

planning. The national-usually five year-plans stipulate macro-economic goals as a kind of
target planning, and usually include a sector split-up. Within this overall framework,
regional and area development plans must be integrated. These area plans are of the
utmost importance for the integrated rural development. While its goals have to fit into the
national development plans, practical implementation takes- place within the regional
 - 144 — ft m « m w <&
plans. A number of experiences are imperative for the importance of areas as units for
the implementation of integrated rural development:
a) Only at the area system level is it possible to work out operationally feasible progr
ammes based on the analysis of the area resource potential and the interrelationship
of its elements.
b) Technical and administrative capacity for implementation is usually located at the
regional level and can best be mobilized there.
c) Economics of scale and the system of interrelated elements in the integrated rural
development project require a minimum geographic area and population with a certain
development potential.
d) At the area level, mobilization and participation of various groups can best be org
anized.
e) The area level provides best chances for integrating subsistence agriculture, and
modern agriculture with non-agricultural activities, and for creating the new forms of
social organization and production required.
The concept of regional planning emphasized the system approach. The regional system
is located below the national and international system and above the local farm/enterprise
system. Any change in one system will have implications for the other, and changes in one
element of the system has consequences for the others.
To illustrate this, let us assume an increase infertilizer price. This will reduce its
application, and the consequence will be lower yields and, possibly, higher prices for
agricultural products, or more imports with repercussions on the balance of payments. A
reduced income in agriculture will result in less demand for non-agricultural products, etc.
On the other hand, the increase in fertilizer price may cause a shift to crops which depend
less on fertilizer, and change farm organization. This illustration might suffice to show
the interrelation of elements in a system.

d) Decentralization and participation

In many of the rural development projects implemented in the past, there was a large
gap between plan and implementation. The integrated rural development concept to fill
this gap with the participation of the rural population which, hitherto, has been the
mere object of projects. The success of integrated rural development programmes depends
on the degree to which a population can be motivated. This again depends on how much
their interests, their felt needs are taken into account, and to what extent they are involved in
the planning and decision-making process. .
 The Concept of Integrated Rural Development — 145 —

Thus, the question of motivation leads to the problem of decentralization of planning, i.e.
to a discussion which has been going on for years under the slogan of "development from
below". In principle, centralized planning, bottom-up planning, involves all groups in the
process, this being the prerequisite for the mobilization of local resources. It guarantees
that the felt needs of the population, and not those of the planners, are taken care of, and the
population considers the plans as their own. This altogether increases the efficiency to a
crucial point because rural development does not seem to be possible as long as the rural
population considers it to be the governments and not their own task. This is why the
concept of integrated rural development attaches so much importance to decentralization
and participation.
However, there are some problems and limitations. Local planning may easily come
into conflict with national planning because the target-setters, their evaluation of the
situation, and their priorities may differ. Lack of information on the overall situation, as
well as limited competence at the local level, are difficult to deny. (In view of the ignorance
of national planners regarding local circumstances, this shortcoming ntay be compensated
for by similar lacks on the other side).
However, local planning is no guarantee for planning in the best interest of the local
population. It is not unusual that local participation in reality means participation of the
rural upper class, and minorities are easily neglected. Likewise, the disparities among
regions can easily grow because the better regions and those in which typical leader
personalities are encountered are often preferred to the others. Finally, we must be aware that
decentralization of planning will be opposed by the administration as they dislike
participation on the part of the population. Decentralized planning means a reallocation of
power and influence, and is bound to meet with the antagonism of groups with vested
interests. There is probably no clear answer as to "bottom-up" or "up.down" planning, but
different subjects require different procedures. For instance, target planning, like the
planning of agricultural production, is a field for "top-down" planning. Here, the
initiative is at the top and, with incentives, planners will induce farmers to implement
their concepts. However, resource development planning and planning of social infrastructure
are typical fields for "bottom-up" planning, and the task of the national planning agency is
merely to coordinate, and to outline the limitations produced by available resources.
This indicates that the? whole question of "up-down" versus "bottom-up" planning is
void. Of importance is an optimal mix of central and regional planning activities with
— :U6— . - &:mM-mM:9t
a participation of the population Jn keeping-/with the functions. This is not easy to
implement, last but not least, the difference between planning and implementation as far
as administration and the .persons involved are concerned plays a great role.
Even local participation often results in some people doing the planning and some the
work, and this division reflects the local stratification. Although the difficulities are
great, the solution of the problem of local participation and motivation is a key to the
success or failure of any integrated rural development programme.

Literature

Ahmad, YJ.—Administration of Integrated Rural Development. A Note on Methodology, in:

International Labour Review, 1975, S. 119-142. Clark, C.— Integrated Approach to Agricultural
and Rural'Development: Asia and the Far East.
In: FAO, 1975, Training for Agriculture and Rural Development, Rome 1975, S. 11-16. Fairchild,
H.W.— Institutional Framework for Integrated Rural Development. Human Resources,
Institutions and Agrarian Reform Division, FAO, Rome, January 1974. Second Draft-21. Jan.
1974,
FAO—Integrated Rural Development (Paper), Rome 1974.
Hewes,L.—Rural Development: World Frontiers. Iowa State University. Press, Ames, Iowa 1974.
JLO—Rural Employment Promotion Through Integrated Rural Development, Report of an ILO '
Advisory Working Group, D. 6, Geneva 1974. Kotter, H.R.—Some Deliberations on Basic Principles
and General Strategy of Integrated Rural
Development. FAO, Rome 1974(mimeo) Kotter, H.R.—Some Observations on the Basic Principles
and General Strategy Underlying
Integrated Rural Development. Monthly Bulletin of Agricultural Economics and Statistics, Vol.
23, No. 4, FAO, Rome 1974.
Kuzmin, S.A.—An Integrated Approach to Development and Employment. In: International
Labour Review, Vol. 115, No. 3, May/June 1977, S. 327-340 Leupolt, M.—Reorientation of
Objectives and Approaches Human Resource, Institutions and
Agrarian Reform Division, in consulation witirFAO/IBRD staff, FAO, Rome, January 1974
Leupolt, M.—Key Issues of Integrated Rural Development. Concepts, Application, Tools. Human
Resources, Institutions and Agrarian Reform Division, FAO, Rome 1974 Leupolt,M.—Integrated
Rural Development: Key Elements of an Integrated Rural Deveopmlent
Strategy. In: Sociologia Ruralis, Vol. XVII, No. 1/2, 1977, S. 6-28 Mosher, A.T.— Projects of
Integrated Rural Development. In: Agricultural Development Council
(reprint) December 1972 Ruttan,V.W.—Integrated Rural Development Programs: A Skeptical
Perspective. In: International
Development Review, Vol. XVII, No. 4 (1975/4) S. 1-16 Subramsniam, C.—Strategy for
Integrated Rural Development. Government of India, Min.'o'f
Finance, March 1976 Yudelman, M.—The Role of Agricuture in Integrated Rural Development
Projects. The Experience
 The Concept of Integrated Rural Development — 147 —
of the World Bank. Paper contributed to the XVI. International Conference of Agricultural
Economists, Nairobi 26.7.-4.8. 1976 Tudelman, M.—Integrated Rural Development Projects. In:
"Finance and Development", Vol. 14,
No. 1 (March 1977) World Bank—Rural Development, Section Policy Paper,
Washington D.C., 1975.

The Concept of Integrated Rural Development

World Food and Agriculture, Bd. 19, H. 5, Seoul 1977, S.
10-15.

www.professor-frithjof-kuhnen.de