Pilot exercise in the selected areas of Syria (two pilot study areas) Study Objective: Assess the relevance of Non-agricultural Activities in Rural Areas (NARA) for agricultural and rural development and their contribution to policy relevant issues (such as the rural households' income, the resilience of rural households to exogenous and endogenous shocks, and the reduction of migration flows). NARA Methodology (a territorial asset-based approach) Rural house-holds (HH) resource endowment within a given context determining the opportunity set of options for livelihood strategies (behaviors), which in turn determine HH well-being outcome. Major Findings of the Study NARA characteristics and relevance * NARAs are heterogeneous (various types, sectors, sizes). * Linkages (backward and forward) to agriculture were important (supply chains analysis). * NARAs play an effective role in employment creation in rural areas. * They have a crucial role in the emergence of small and intermediate urban centres (in rural areas). NARA effects on rural HHs Income generation * Income from NARA sources is larger than that from (Agricultural Rural Activities) ARA; * Waged employment constitutes the major portion of NARA sources of income (government, commerce, construction); * On-farm originated income represents most of agricultural income. NARA effects on income distribution among Rural HH (Y decomposition analysis) * Agricultural rural activities sources of income tend to reduce income distribution inequality; *NARA sources of income tend to increase income distribution inequality; * Poor and Non-Poor Rural HH don't benefit equally from NARA (push & pull dynamics).