This volume presents historical, contemporary, and theoretical perspectives on the role of local communities and social norms in the economic development process. Using historical evidence combined with recent developments in institutional economics involving game theory and contracts, it establishes that communities can enhance the development of a market economy under certain circumstances -- and sheds light on what those circumstances are.

The rice belt of Laguna Province, Philippines (popularly known as the heartland of the Green Revolution for its early adoption of modern rice varieties), has experienced dramatic economic and social changes in the last quarter of the twentieth century. Besides the major advances in new rice technology, four major forces have prompted change: increasing population pressure on limited land; implementation of land reform programs; developments in infrastructure such as irrigation and roads; and penetration of urban economic activities. A unique data set generated from many surveys during the...

Waves of modernizing forces, such as the commercialization of new technology, have been pressing major change upon rural communities in the Third World. But has modernization created greater poverty and inequality? The authors present the results of 30 years of empirical research.

This study challenges the traditional image of peasants in developing economies as always passive to market forces. In this study of marketing upland crops in Indonesia the authors demonstrate active peasant participation and entrepreneurship in commercial and industrial activities. The peasant marketing system not only works as an effective bridge between farm producers and consumers but also produces significant employment and income in the rural sector. The Indonesian case suggests a genuine possibility of rural-based economic development in the third world.