(Adams .D 1988).
Bias of the policy environment against the Non-Farm Rural Sector. In most developing countries, the generally small-scale non-farm sector in rural areas faces a general policy environment that is biased against it. Some policies distort the relative costs of capital, such as subsidized credit and Interest rate ceilings, and others distort labor costs, such as minimum wage legislation, mandated benefits, and labor legislation.
Peter Lanjouw and Gershon Feder (2001).
Slow growth -Here is some statistics based on National Sample Survey five yearly surveys on employment and unemployment to examine the trends in Rural Non-Farm Employment. The percentage of Rural Non-Farm Employment in total rural employment increased from 16.6 per cent in 1977-78 to 18.4 percent in 1983, to 21.6 per cent in 1993-94 and to 23.8 per cent in 1999-2000. If we look at the yearly increase in the percentage share of Rural Non-Farm Employment in total employment it was 0.35 per cent per annum during the reform period (93-94 to 99-00), which is more or less similar to earlier periods. The number of workers in Rural Non-Farm Employment increased from 36.1 millions in 1977-78 to 44.9 millions in 1983 to 62.98 millions in 1993-94 to 71.52 millions in 1999-2000. The growth rate (compound) in Rural Non-Farm Employment during 1977-83 was 4.06 per cent per annum while it was 3.28 per cent per annum and 2.14 per cent per annum during 1983-94 and 1993-2000 respectively. In other words, during the reform period ('93-94 to '99-00) the growth rate of employment in Rural Non-Farm Employment was lower than the pre-reform period. This is a matter of concern. Thus we can conclude that as in the overall growth rate, the growth rate of workers in Rural Non-Farm Employment declined during the reform period. There is, however, not much change if we look at the annual increase in the share of Rural Non-Farm Employment in total rural employment.