The promotion of forestry activities is seen as a means by which to reduce poverty while protecting the environment. But if clearing of forests for agricultural activities can prove more profitable, will such efforts be effective?
"Like many developing countries, China and India followed development strategies biased in favor of the urban sector over the last several decades. These development schemes have led to overall efficiency losses due to misallocation of resources among rural and urban sectors. It also led to large income gaps between rural and urban areas. The urban bias was greater in China than in India. Indeed, official data show that both the income gap and the difference in poverty rates between rural and urban areas are much larger in China than in India.
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