Small Towns, Rural Linkages, and Employment

Abstract

Despite the utility of both the urban functions approach and the location-allocation model, further research is required before methods to locate urban activities are widely applied. Both regional objectives and local effects must be recognized within the broad goals of decentralized development planning. In light of Indonesia's emphasis on employment creation, the processes supporting urban-rural linkages and the nature of nonfarm employment must be identified more clearly. Interaction between the formal and informal sectors and its effect on employment potential in small towns needs to be specified, and the impact of road access and improved transport services on population mobility, especially in connection with employment, must be more thoroughly researched.