Rural-urban Working Papers No 9 A high proportion of the urban population in most nations live in small and intermediate urban centres. These centres also play an important role for rural households and rural producers and enterprises. But the potential contribution of small and intermediate urban centres to local (rural and urban) economic development and to poverty reduction is all too often ignored by sectoral policies. This paper reviews what can be learnt from the role of small and intermediate urban centres in supporting more prosperous and often diverse local economies, including supporting rural non-farm employment and agricultural production, and in widening the role of ‘good governance’ in reducing urban and rural poverty

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