Rural Poor in Rich Rural Areas: Poverty in Rural Argentina

Abstract

Rural poverty remains a crucial part of the poverty picture in Argentina. This paper used a rural dataset collected by the World Bank in 2003. Findings show that extreme income poverty in rural areas reached 39 percent of the people or 200,000-250,000 indigent families. These families tend to: be large, and young, and to escape from poverty as they mature and children leave the household (life cycle); live largely in dispersed areas where basic service provision is often weak and delivery is difficult (in particular school attendance beyond 11 years of age falls off very rapidly compared with grouped rural or urban areas); and be more likely to be small landholders than landless laborers. The structure of poverty in rural Argentina shows that larger households are poorer than smaller households, female-headed households are poorer than male-headed households, young households/household heads are poorer than older households/household heads, the poor tend to work more in the informal sector, and a greater share of those engaged in agriculture are poor. However, poverty is by no means strictly an agricultural problem. Furthermore, the deepest poverty is among the poorly educated and young household heads with children. Without interventions to improve their opportunities and assets, their plight is likely to worsen.

Keywords: Rural Poverty Reduction, Population Policies, Pro-Poor Growth and Inequality, Services & Transfers to Poor