Rural income in Gotland

The notion of farm and norm farm rural economies and their role in shaping rural development, livelihoods and household strategies continue to attract the attention of researchers, and dominate governments’ rural policy agendas (Reardon 2004; Barret et al 2001, Islam 1997). The most important aspect of these discussions has been how rural households generate their income and therefore the sources of their livelihoods. Previously it was assumed that most rural economies were dominated by households depending on farming (crop production and livestock rearing) as their main source of livelihoods but recent studies have shown that non-farm economic activities are increasingly forming a greater percentage of households’ economic activities. Islam (1997) and Reardon (2004) have illustrated that agriculture does not constitute the main source of economic activities in low income countries and that rural non-farm (RNF) activities contribute tremendously to household income. 
It is against this backdrop that this Gotland study is based. The study looks at how rurality, livelihoods and gender issues are addressed within the larger rural farm and non farm economy. Gotland is the largest island in the Baltic Sea. According to Swedish National Rural Development Agency (NRDA 2006) Gotland has about 57,297 inhabitants with 33,469 spread out in small rural communities while Visby the most urbanized town has about 23,828 inhabitants. Rurality in Sweden according to NRDA (2006) is defined based on people’s opportunities to access services and work. Therefore in Sweden rural areas are areas more than 45 minutes by car from the nearest urban area with more than 3,000 inhabitants, and islands with no permanent land connection. These figures and descriptions suggest that Gotland is more rural than urban.
The focus of the paper now is on the Gotland’s farm and non farm economies and how livelihoods, household strategies and gender shape these economies. According the US Department of Agriculture a farm economy is an economy in which agriculture serves as backbone providing both food and income to households. Such an economy is structured on size of farms, concentration of production, tenure, farm organization, business arrangements (including contractual agreements), and the characteristics of farmers and their households USDA (2009).  On the other hand rural non-farm economy is one in which economic activity is based on wage-paying activities and self-employment in commerce, manufacturing and other services Reardon (2004).

Livelihood according to Chambars and Conway (1992, p.7) comprises the capabilities, assets and activities required for a means of living.
According to Ellis (2000, p.18) the household is conceived as the social group which resides in the same place, shares the same meals, and makes joint or coordinated decisions over resource allocation and income pooling. However, a household strategy is defined as “those implicit principles that guide household members when seeking household goods, whether of survival or social mobility” Shahadat (2005). These household strategies are strongly linked to livelihood diversification which Ellis (2000, p.15) defines as “the process by which rural families construct a diverse portfolio activities and a social support capabilities in their struggle for survival and in order to improve their standard of living”. According to Mats Jansson of Gotland Tourism Association, the livelihoods of Gotlanders are based on agriculture (crop production, animal husbandry and forestry) and tourism however, it was also observed that small scale enterprises (manufacturing, food processing, and machine repairs) were also flourishing on the island. Tourism is a major non farm economic activity on the Island. The sector employs 1400 people during the lean season while about 6000 work in the tourism sector during summer.

That places emphasis on an ‘‘all-round’’ view of the livelihood circumstances of the poor, including their asset status, the activities in which they engage, and the encouraging or discouraging character of the institutional context within which their livelihood strategies unfold.

The future of farming in Gotland cannot be guaranteed. The youth in Gotland seem not be interested in farming a point well made by the households interviewed. For example Mr. and Mrs. Ben who has three children aged 17, 21 and 23 and each of them has indicated that they are not interested in farming.
Eco-village
Gender: Women who are into agriculture are very small but their role in other sectors is very significant. For example in Visby 15 women with their own fabric companies have come together to form a cooperative where they sell fabrics (mostly hand woven). The role of women as members of the household was highly visible. Some of them while forming partnership with their husbands in managing farms such as the Christine, others engage in non farm economic activities to bring further income to the household such as teaching, selling fabrics and operating restaurants and coffee bars.

Economic activities: tourism, farming (crop production, animal rearing and forestry), small scale businesses (Gotland Snus, Gotland Whisky, restaurants,) these analyzes show that the economy of Gotland is not based on agriculture alone but on a hybrid of activities.

Access to capital is crucial to all the entrepreneurs both in farming and non farming related activities. Access is defined by the rules and social norms that determine the differentiated ability of people in rural areas to own, control, otherwise claim or make use of resources such as land and common property Ellis (2000, p.9). Of these assets, Social capital is known to be playing key role in helping households to mobilize financial capital or gain access to information. For example the founder of Gotland Snus recounted his gratitude to people for sharing information with him while especially during the formative years in 2000 while the founder of the restaurant relied on the goodwill of the company to gain access to financial resources which enabled her to secure four million kroner credit from the bank.


Conclusion
In the light of the important role played by the RNF  economy it will be advantage to rural households if governments, donors and development agencies to focus on RNF activities and its importance for agricultural and rural development as well as poverty alleviation; and, with a view to furthering the harmonious growth of both the farm and RNF sectors,