{"id":2024,"date":"2025-09-01T10:42:30","date_gmt":"2025-09-01T03:42:30","guid":{"rendered":"https:\/\/appertani.org\/?p=2024"},"modified":"2025-09-01T11:08:55","modified_gmt":"2025-09-01T04:08:55","slug":"rural-transformation-masterclass-program","status":"publish","type":"post","link":"https:\/\/appertani.org\/?p=2024&lang=en","title":{"rendered":"RURAL TRANSFORMATION MASTERCLASS PROGRAM"},"content":{"rendered":"

The Economics of Rural Transformation and Public Policy<\/strong><\/h2>\n

Strategies and Methods for Successful Rural Transformation<\/p>\n

5-8 May 2025
\nBali, Indonesia<\/p>\n

Rural transformation is crucial for achieving overall economic growth, reducing poverty and bridging the gap between urban and rural areas. Worldwide, approximately 3.4 billion people reside in rural areas, with 90% of them living in developing countries. A significant portion of this population faces poverty. Hence, coordinated efforts from governments, businesses, non-governmental organisations (NGOs) and local communities are necessary to tackle various challenges in rural areas and seize opportunities for rural transformation.<\/p>\n

Rural transformation masterclass program will be held on May 5\u20138, 2025 which was divided into 3 days of classes and 1 day of field visits to the location of the rural transformation practice model. Participants in the classroom sessions received material from expert speakers on rural transformation, its analysis and the preparation of supporting policies. Furthermore, the field visit was filled with practitioners of rural transformation in Candi Kuning and Jatiluwih with different driving factors.<\/p>\n

\"\"<\/a><\/p>\n

Day 1 \u2013 Knowlage Day<\/strong><\/p>\n

Dr. Dong Wang<\/strong> from Australian National University, The University of Queensland explained about the urgency to promote the rural transformation started from the rural development that can be defined as making rural areas a better place to live and work. It means the term ‘quality of life\u2019 that is associated with an increase in real per capita incomes and beyond, poverty reduction, rural housing, public services, population distribution, employment opportunities, equity, social well-being, and economic efficiency. Thus the key feature of development is the portion of the population directly engaged in farming falls as standards of living rise (non-farm employment and income growth).<\/p>\n

The guest lecturer, Professor Justin Yifu Lin<\/strong>, the former Chief Economist and Senior Vice President of the World Bank, gave a lecture on \u201cNew Structural Economics for Rural Transformation\u201d. New Structural Economics (NSE), proposed by Justin Yifu Lin, represents the third generation of development economics. It argues that economic structure is endogenous to a country\u2019s evolving factor endowments, and successful development requires aligning policies with a country\u2019s comparative advantages<\/p>\n

In the guest lecture, Professor Lin<\/strong> highlighted that development success, according to NSE, depends on: (i) Following comparative advantage, (ii) A market economy; and (iii) aA facilitating state to resolve coordination failures and support infrastructure. Empirical evidence (e.g., China, Vietnam, Mauritius) supports this approach, contrasting sharply with the stagnation seen in Latin America and Africa. For rural transformation, NSE highlights agricultural modernization as vital. Agriculture not only reduces poverty but also provides capital, labor, and demand for industrial goods. Structural change in agriculture\u2014supported by the state\u2014is essential for broader development. In conclusion, NSE offers a pragmatic, country-specific framework for sustained growth, replacing ideological prescriptions with development grounded in reality. It calls for a mindset shift: from imitating rich countries to scaling up what developing countries can already do well.<\/p>\n

Day 2 \u2013 Methods Day<\/strong><\/p>\n

The reflection session on rural transformation and capacity building underscored the importance of both individual and institutional development\u2014a legacy that Asia has left behind, which now serves as a critical foundation for ACIAR\u2019s ongoing work. Dave, as the keynote speaker, emphasized the evolving role of government in policy-making and the necessity for institutions to develop their capacity to influence policy directions. This involves aligning policy solutions with broader political agendas, writing concise and evidence-based policy briefs, and engaging relevant stakeholders effectively.<\/p>\n

Session 1: Writing A Good Policy Brief<\/p>\n

In the session on writing policy briefs, participants reiterated that the primary purpose of a policy brief is to inform, persuade, and recommend actionable solutions to decision makers across sectors.<\/p>\n

\u00a0<\/strong><\/p>\n

David Shearer<\/strong> concluded by stating that although research often provides a wealth of evidence and topic ideas, the real challenge lies in narrowing the focus and shaping a message that can effectively influence specific stakeholders. He emphasized that writing policy briefs is not only a matter of presenting facts, but also about strategic communication\u2014aligning evidence with practical solutions and tailoring the brief to resonate with decision-makers.<\/p>\n

Session 2: \u00a0New Structural Economic Application<\/p>\n

Dr Zitong Zhang<\/strong> critically assessed previous development theories, noting that structuralist approaches such as import substitution led to short-lived growth followed by stagnation, while neoliberal approaches under the Washington Consensus triggered economic collapse and widened income inequality. In contrast, New Structural Economics (NSE) offers an alternative by emphasizing that a country\u2019s economic structure should align with its factor endowments. Markets are considered efficient in allocating resources, but the government has a vital role in addressing externalities, correcting coordination failures, and providing necessary infrastructure.<\/p>\n

Closing Remarks from Dong Wang<\/p>\n

One of the core hypotheses of New Structural Economics (NSE) is that a country’s economic structure at any given time is determined by its factor endowments, and that effective development strategies must align with these structural realities. NSE builds upon foundational economic assumptions while revisiting the methodological approach of Adam Smith. It emphasizes the importance of asking the right questions, understanding the specific context, and proposing practical, actionable solutions. This approach reflects a return to classical economic traditions\u2014not in terms of conclusions, but in terms of methodological rigor.<\/p>\n

\u00a0Three key features of NSE are particularly noteworthy: (1) markets should function efficiently, (2) the state should play a facilitative role, and (3) policies should be impactful and well-designed. NSE emphasizes that effective policymaking requires a deep understanding of a country\u2019s unique economic conditions. In the absence of such understanding, developing countries may adopt policies from advanced economies that are inappropriate or even counterproductive<\/p>\n

Session 3 – Analytical Skills (Rural Transformation Evaluation Method & Stage Segmentation Techniques)<\/p>\n

Professor Jikun Huang<\/strong> Segmentation of Rural Transformation (RT) is a conceptual framework that classifies the stages of rural transformation based on changes within the agricultural sector and shifts in employment from farm to non-farm activities. Huang divides rural transformation into four main stages:<\/p>\n