Rural areas are undergoing radical change. The changes are very noticeable particularly in countries with a large agricultural sector. Whether it is a case of decentralisation processes taking place within government, or government reducing its involvement in the direct provision of services, structural changes prove challenging, and the service sector in many developing countries is facing new tasks as a result. With an increasingly market-oriented agricultural sector as the most important productive sector in the economy, diversification of income opportunities and increasing division of labour, it is more important than ever to have a highly qualified service sector that generates a broad impact.
Utilising local development potential
For some time now, the impact of the changes has been felt not only the agricultural sector, but also in other important sectors, most notably health, finance and education. However, it is particularly difficult to provide services covering a broad geographical area due to the relatively sparse population density in rural areas and, in some cases, the considerable distances involved. These gaps in service provision need to be closed in order to enable people to mobilise their development potential.
Advice on developing a competent service sector
GTZ helps people in its partner countries to devise and formulate comprehensive implementation programmes for rural areas, and especially for the rural service sector. GTZ’s advisory services operate at various levels. The fundamental principles are to provide a client-oriented service, to target poverty reduction successfully, and to ensure quality management.
Key issues in promoting rural services include
- The agricultural and food sector, particularly research, advisory services, market information and market access
- Education, including basic and adult (‘second chance’) education and vocational training opportunities (occupational training, vocational colleges)
- Health, including combating HIV/AIDS and establishing rural health insurance schemes
- Rural finance, in conjunction with promoting the local economy and microcredit systems.
A practical example:
In Kenya, Burkina Faso, Ghana, Cambodia, Indonesia, Ecuador and other countries, education and training measures by GTZ have, among other things, enhanced the development of agricultural value chains, improving the position of small producers in particular. By providing dedicated support to regional production and the distribution and marketing of particular products, new markets and potential markets have been created. Incomes of small farmers and processors have risen as a result, and they have risen sustainably.
