A traditional paradigm in development economics assumes that the process of modern economic growth is associated with a major shift in labor from rural hinterlands to urban industrial centers. However, the logic of economic development does not dictate that industrialization and urbanization are intertwined and inseparable, as assumed in the traditional paradigm. The studies reported in this volume examine whether an alternative route of economic development might exist in which the modern production base also moves into the rural sector instead of the rural labor force alone moving into the urban sector. Part I focuses on historical experiences in Japan such as technical and institutional innovations in rice marketing, and the formation of Toyota's relationship with suppliers. Part II reports on current developments in East Asia including the rural garment and weaving industries in Northern Thailand, and rural entrepreneurship and industrial development in Korea.
