9. Exogenous and endogenous development models Diverse service economies Food & primary products for expanding urban economies Functions of rural areas Capacity-building (skills, institutions, infrastructure); overcoming exclusion Ag. Modernisation; encourage labour & capital mobility Focus of rural development Ltd capacity of areas/groups to participate in economic activity Low productivity & peripherality Major rural dev problems Local initiative & enterprise Urban growth poles (drivers exogenous to rural areas) Dynamic force Harnessing local (natural, human & cultural) resources for sustainable development Economies of scale & concentration Key principle Endogenous development Exogenous development