Philippine regions differ in their pace of rural transformation, from lagging areas to those shifting beyond agriculture and a few with integrated rural–urban economies

This rural transformation study conducted in the Philippines provides a comprehensive understanding of the status and progress of the country’s regions toward transitioning from a purely agriculture-based to a non-agriculture-based rural economy. Rural transformation is part of the broader development process in a country. With poverty being highly concentrated in agriculture and rural sectors, there is a critical need to help the agriculture-dependent rural population improve their socioeconomic status by accelerating rural transformation in their areas, specifically by helping them shift from low-paying agricultural livelihoods or employment to more income-generating non-agricultural activities and ultimately linking them to the urban economy.

In this study, the different stages in the rural transformation process and the factors affecting them are discussed. Findings reveal that the regions in the Philippines are at different paces of transformation, where some are lagging, others are moderately shifting towards non-agricultural economic activities, while only a few, particularly those regions that are economically-advantaged and proximate to the National Capital Region (i.e., CALABARZON and Central Luzon), have almost fully transformed, with their rural and urban economies already well-integrated. The study confirms the important roles of institutional support, enabling policies and programs, and agricultural and rural investments at each stage of the transformation. However, it emphasizes the need to make these interventions targeted and timely with proper sequencing because the needs of each region vary depending on the level or stage of transformation.

This study provides an empirical investigation of the Philippines’ rural transformation, which is a critical step towards accelerating rural development and reducing poverty in the country. It contributes to the limited research done in the Philippine context and fills the literature gaps in the field of agricultural and rural transformation. The study provided recommendations to address the unique challenges of uneven regional transformation, which can help the Philippines fast-track its journey towards inclusive and sustainable rural development.

The findings and implications of this study also hold significant relevance for other developing Asian nations facing similar challenges, including those experiencing premature structural transformation, rural–urban divide, and spatial inequalities in rural transformation. They can guide researchers, policymakers, and development practitioners in planning strategies for accelerating rural transformation in other countries.

Authors: Karen Q. Custodio (College of Economics and Management, University of the Philippines Los Baños) and Mercedita A. Sombilla (Southeast Asian Regional Center for Graduate Study and Research in Agriculture, Los Baños)

Read the full paper: https://doi.org/10.3390/land14020253