Contents -- Acknowledgments -- Acronyms and Abbreviations -- Chapter 1: The Rural Economy's Contribution to Development: Summary of Findings and Policy Implications -- 1.1 Policy implications -- 1.2 Summary of findings -- 1.3 Conclusions: The need for institutional reforms -- 1.4 Report organization -- Notes -- Part I: The Rural Contribution to Development: Analytical Issues -- Chapter 2: How Do We Define the Rural Sector? -- 2.1 How big is the RNR sector? -- 2.2 RNR sector composition based on national accounts -- 2.3 What do rural people do? Rural poverty, employment, and income sources -- 2.4 How many people really live in rural areas? -- Notes -- Annex A -- Annex B -- Annex C -- Chapter 3: From Accounting to Economics: The Rural Natural Resource Sector's Contribution to Development -- 3.1 RNR activities and welfare: Analytical framework -- 3.2 The RNR sector and economic growth -- 3.3 The RNR sector and income of the poorest households -- 3.4 The RNR sector and the environment -- 3.5 The RNR sector and macroeconomic volatility -- 3.6 The RNR sector's contribution to Latin American and Caribbean welfare and beyond -- Notes -- Chapter 4: The Promise of the Spatial Approach -- 4.1 The spatial approach: A new fad or old concerns? -- 4.2 The extensive menu of concepts that justify spatial development programs -- 4.3 The spatial approach complements the sectoral approach -- 4.4 The spatial approach is promising: New evidence -- 4.5 Summary of analytical findings -- Notes -- Part II: The Rural Contribution to Development: Policy Issues -- Chapter 5: Public Expenditures, RNR Productivity, and Development -- 5.1 National welfare and the allocation of public expenditures -- 5.2 Are there policy biases in Latin American and Caribbean countries against rural development? -- 5.3 Disparities in the per capita spending level in urban and rural areas.

5.4 Does excessive urban concentration harm RNR activities and the rural economy? -- 5.5 Sources of RNR productivity growth in Latin American and Caribbean countries -- Notes -- Chapter 6: Policy and the Competitiveness of Agriculture: Trade, Research & Development, and Land Markets -- 6.1 The international trade regime, country trade policies, and the RNR sector -- 6.2 Latin American and Caribbean public provision of agricultural R&D -- 6.3 Identifying socially desirable public policies for rural land markets -- Notes -- Chapter 7: Enhancing the Contribution of Rural Economic Activities to National Development: Rural Finance and Infrastructure Services -- 7.1 What role should the government play in rural finance and development? -- 7.2 Infrastructure investments for regional development and the poor -- Notes -- Chapter 8: Promoting Economic and Social Development in Poor Regions: Direct Income Supports, Environmental Services, and Tourism -- 8.1 Compensation for trade liberalization and targeted anti-poverty support -- 8.2 Policies to enhance the contribution of rural environmental services -- 8.3 Rural tourism and public support -- Notes -- Chapter 9: Policy Challenges of the Spatial Approach: From Promise to Reality -- 9.1 Introduction -- 9.2 Government and community roles in enhancing the rural contribution to development -- 9.3 Policy evaluation -- 9.4 The promising future of Latin American and Caribbean regional development policies -- Notes -- Bibliography -- Boxes -- Chapter 1 -- 1.1 Five critical policy questions for Latin American and Caribbean economic authorities -- 1.2 Main findings -- Chapter 3 -- 3.1 Beyond GDP: Accounting for the effect of RNR activities on national welfare -- 3.2 The relationship between RNR GDP share and development -- 3.3 Rural-urban migration in Bolivia.

3.4 The sectorial approach to illicit crop eradication in Andean countries, 1980-2002 -- Chapter 4 -- 4.1 The territorial approach to illicit crop eradication -- Chapter 5 -- 5.1 Empirical translog production functions -- 5.2 Empirical farm-level production functions -- Chapter 6 -- 6.1 Welfare effects of the introduction of genetically modified organisms in Argentina and Mexico -- 6.2 Genetically modified organism generation options in tropical Latin American and Caribbean countries -- Chapter 7 -- 7.1 What market failures are relevant to rural finance? -- 7.2 Governance criteria for public rural financial services -- 7.3 Risk management approaches of farmers and other rural producers -- 7.4 Weather indices and area yield for crop insurance programs -- Chapter 8 -- 8.1 Direct payments to producers -- 8.2 CCT programs in Latin America -- 8.3 Agricultural tourism in Colombia -- Chapter 9 -- 9.1 Macro models used to evaluate EU cohesion funds -- Figures -- Chapter 1 -- 1.1 Official and consistent estimates of the Latin America and Caribbean rural population share -- 1.2 Cumulative population distributions by distance to major Latin American and Caribbean cities -- 1.3 Agriculture's GDP share diminishes as countries develop (RNR sectors' GDP share and income per capita, 1960-2002) -- 1.4 RNR growth has positive effects on the overall economy in developing countries (impact of a 1 percent increase in RNR GDP on the rest of the national economy the following year) -- 1.5 Geographic distances to major cities relative to wages after economic reforms in Brazil -- 1.6 Mexican state GDP per capita relative to the federal district, 1940-2000 -- 1.7 Regional GDP per capita in Colombia as a share of Bogota's, 1960-96 -- Chapter 2 -- 2.1 RNR exports per rural person and agricultural labor productivity, 22 Latin American and Caribbean countries, 2001.

2.2 Relationships between remoteness, population density, and poverty in Nicaragua -- 2.3 Population density in Latin America and the Caribbean -- 2.4 Cumulative population distribution in Latin America and the Caribbean relative to distance from a major city -- 2.5 Cumulative population distribution in Brazil relative to distance from a major city -- 2.6 Proportion of population that have more than one hour travel time to a city of 100,000 people and that are below the specified population density thresholds -- 2.7 Census rurality measures compared to definition of 1 hour travel time criteria -- Chapter 3 -- 3.1 RNR sector's GDP share and GDP growth, 1960-2002 -- 3.2 RNR sector's GDP share and income per capita (annual data from 1960-2002) -- 3.3 Impact of a 1 percent increase in RNR GDP on the rest of the national economy the following year -- 3.4 Impact of a 1 percent increase in non-RNR GDP on the RNR sector -- 3.5 Impact of a 1 percent increase in RNR plus food industries' GDP on the rest of the national economy the following year -- 3.6 CO2 emissions and RNR activities around the world, 1971-2000 -- 3.7 Freshwater withdrawals and RNR activities around the world, 2000 -- 3.8 Deforestation and RNR activities around the world, 2000 -- 3.9 RNR activities and deforestation sources in Latin American and Caribbean countries between 1990 and 2000 -- 3.10 Deforestation and potential agricultural lands in Latin American and Caribbean countries, 2000 -- 3.11 The ecological footprints of South American agriculture, 2000 -- Chapter 4 -- 4.1 Path dependency in Brazilian frontier settlements: Econometric evidence -- Chapter 5 -- 5.1 Urban primacy levels in the Americas, 1960-2000 -- 5.2 Illiteracy and fertilizer use per worker -- Chapter 7 -- 7.1 Assessing the performance of rural financial institutions -- Tables.

Chapter 1 -- 1.1 Commodity agricultural production values in Latin American and Caribbean (LAC) countries (percent of national GDP) -- 1.2 Nonagricultural income in rural Latin American and Caribbean households -- 1.3 Agricultural and nonagricultural GDP growth rates (annual averages for 1970-99, data at constant 1995 dollar exchange rate) -- 1.4 Direct and indirect effects of a one-percent agricultural output increase -- 1.5 The effect of public goods on agricultural sector productivity -- 1.6 Estimated R&D rates of return to the agricultural sector -- 1.7 Urban and rural student language attainment by education level (percent of all students with satisfactory attainment) -- 1.8 Latin American and Caribbean differentials in access to safe water -- 1.9 Composition of rural public expenditures -- 1.10 Latin American and Caribbean countries are net agricultural exporters, but many are net food importers -- 1.11 Average MFN tariffs are as high in agriculture as in manufacturing -- 1.12 MFN tariff peaks (above 15 percent) are as common in agriculture as in manufacturing -- 1.13 Public rural expenditures compared with agriculture/GDP ratios -- Chapter 2 -- 2.1 Evolution of agriculture GDP in the Latin American and Caribbean region, 1990-2002 -- 2.2 Agriculture, forestry, and fisheries as a percent of national GDP -- 2.3 Sum of sectoral GDPs of agriculture-related industries according to IICA, 1997 ( billions) -- 2.4 Summary of expanded agricultural GDP share estimates -- 2.5 Main forward linkages for Chile, 1996 -- 2.6 Export and import shares and trade balance of rural natural resource sectors (agriculture, forestry, and fisheries) in Latin America and the Caribbean, 1999-2001 averages -- 2.7 Average value of RNR and total exports per person, 1999-2001 -- 2.8 RNR export and import shares by subsectors, 2000-02.

2.9 Net trade position in food and agricultural products (excluding forestry and fisheries), 2000-02 averages ( millions).