The role of informal sector in rural development: A case study of wood-carving industry in Wamunyu location, Machakos district

Abstract

Most developing countries have recently recognized the informal sector as a viable sector in their economic progress. The small-scale industries and handicrafts have hitherto received very little attention from policy markers and as a result little government assistance. The colonial"governments in most developing countries had pursued strategies of growth which neglected the development of such activities in favour of heavy industrial establishments and consequently, the activities remained unexploited. Recent evidence shows increased awareness of the need to encourage their exploitation. In Kenya, the recognition of the sector is provoked by the increasing problem of unemployment, the need to improve on the life of the rural people and the need to moderate the growth rate of the major towns. This study examines the contributions of handicraft component of the informal sector. The study has found out that the activity has a Signle to play in the development of Wamunyu location in terms of provision of employment, income generation and growth and expansion of Wamunyu market centre and thus should be encouraged as part of the broader policy of promoting rural development and raising rural incomes. The study further examined the factors hampering the development of this form of informal sector and found the major problems being lack of raw materials, lack of appropriate marketing organizations, and lack of suitable working places. Towards these problems, the study has proposed measures that will help create an appropriate environment for the operation of the activity which include - strengthening of the existing handicraft cooperative societies and formation of a central marketing organization to facilitate marketing of the products research on alternative wood species for the industry to reduce over-dependency on the depleted species, establishment of a small forest reserve to ensure long-term supply of raw material; expansion of the operations of the institutions charged with promotion of small scale enterprises to cater for handicraft sector, and provision of sites for informal sector activities in the up coming urban centres.