Facilitating Inclusive Rural Transformation in the Asian Developing Countries

Rural economy has experienced significant transformation in Asia, although the transformation differs largely among the countries. This paper examines the path, major driving forces and the likely consequences of rural transformation (RT) in China and other developing countries in Asia. We argue that: 1) There is a general path and trend of rural transformation in Asia; 2) In each stage of rural transformation, there are specific institutions, policies and investments (IPIs), which can stimulate and speed up the transformation; 3) Rural transformation and structural transformation (ST) are interconnected, successful RT can stimulate economic growth and ST, and ST can enhance rural transformation through labor‐intensive industrialization; 4) The speed of RT is positively associated with rural poverty reduction and therefore more inclusive RT. The paper concludes with several policy implications for inclusive rural transformation in Asia in general and in different categories of countries in particular.