When urban meets rural: opportunities for people on the edge

Cities in developing countries are growing fast. Population growth and migration from rural areas to cities mean that the edges of urban areas are changing: buildings are constructed on agricultural land and cash becomes more important in the local economy. This means that there is no longer a clear divide between urban and rural.

The UK Departmentfor International Development’s Natural Resource System Programme has broughttogether research on the areas where urban meets rural: the peri-urbaninterface. Findings from India and Ghana show that poor people living in these areasneed assistance to adapt to rapid changes which bring opportunities for somebut can leave vulnerable people behind.

Despite changesassociated with urbanisation, research showed that most people in peri-urbanareas still rely on natural resources, primarily for agriculture. Food isproduced both for feeding the household and for trading. However, as land is absorbed into the city, natural resources becomescarce and people need to find new sources of income and food.

People with land, capital andeducation can do well in new urban markets by producing perishable goods ofhigher value like eggs, milk and fish. However, poor people, especially women,find it difficult to find new cash-earning opportunities. They often lackeducation, suitable skills, financeto invest and access to natural resources on previously common land.

Factors hinderingpeople from adapting to new urban ways of living include:

• A lackof resources to invest in new cash earning opportunities. Poor people withoutsavings need quick cash returns from new activities.
• Scarcityof natural resources, upon which women and the poorest people are particularlyreliant as they find it harder to get paid work.
• Socialstructures tend to break down with inward migration and pressures on land. Thismakes working in groups less effective than it often is in rural areas.
• Governmentsand non-government organisations (NGOs) working in development do notunderstand the specific issues of peri-urban areas well. Government policy andpractice is still split between urban and rural, so interest and interventionsare fragmented.

The research alsoshows that NGOs and community action can help people adapt and find new oradapted livelihoods.

Lessons forsuccessful policy interventions include:

• Communitiesshould be encouraged to work together to develop self-help groups, creditschemes and training.
• Protectingand improving natural resources is especially important for poor people, whoremain reliant on natural resources even when they begin new activities.
• Farming and trading provide bridging activities that supportpeople moving into new livelihood patterns.
• Encouraging trading activity and offering credit to tradersis beneficial, especially for women.
• Traininghelped people, including the most disadvantaged and those without formaleducation, to understand markets and make business plans.
• Linksneed to be set up between peri-urban producers and markets in towns.
• Womenwho process food are threatened by larger processing companies. Formingassociations and self-help groups is a potential way to compete.