This article aims to contribute to the understanding of the links among conceptual, empirical and policy issues relating to agricultural growth, rural development and overall Philippine economic growth. It discusses the nature of interaction between agriculture and rural nonfarm enterprises (RNEs) focusing on the demand stimulus generated by agricultural growth. Description of the critical role of RNEs in rural development draws heavily from the contrasting development experiences of Taiwan and the Philippines. Discussion that focuses on agrarian reform and how it might induce the expansion of rural nonagricultural activities are also provided.
