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This paper addresses a neglected complementary theme: the determinants of rural income. Understanding the determinants of rural income can be a powerful guide to designing effective interventions to accelerate rural income growth and reduce the incidence of poverty in the future. The analysis is therefore directly relevant to the implementation of the government’s national poverty reduction strategy (PARPA), and especially the second phase of the national agricultural development program (PROAGRI 2) due to start in early 2005. From a perspective of “determinants,” we also examine income sources, income poverty, and perceived change in economic condition. The raw material for our analysis is the TIA 2002, designed for rural income and intensively supervised on a nationally representative sample.


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