The Role of Markets in Rural Development-a Case of Funyula Market in Funyula Town, Funyula Sub-county, Busia County

Abstract

Rural markets have had a strong potential that could initiate an increasing growth course, which culminates in continuous and sustainable development. However, instances of poor market integration due to poor polices; and poor market conditions such as inaccessible roads, lack of innovation and dilapidated market infrastructures have always hampered growth especially within the surrounding environments and other regions of interest. This research aimed at finding out the role of markets on the hinterlands, to identifying the challenges affecting development of linkages between markets and the hinterland and to recommending solutions for improving the linkages between the markets and the hinterland to enhance rural livelihoods. The research narrowed down to Funyula market in Funyula rural centre. The research reviewed the regional development theories and concepts and their application in rural development processes and the role Funyula market had played in developing Funyula sub-county. The research also provided an analysis of the policy directions to the development of Funyula market in Funyula sub-county. The research involved observation of the facilities and services in Funyula market and the surrounding hinterland. Key resource persons provided information on the development, management and challenges in the market and the hinterlands. A household sample was picked to answer questionnaires within the hinterland. The research showed that Funyula market had both visible and invisible socio and economic impacts on the people of Funyula sub-county. Positively, the market provided readily accessible outlets for farm produce from the hinterland. The main hindrance to hinterland development was the lack of capital resources within the sub-county as identified by 63percent of the rural household respondents. Other hindrances included poor accessibility, lack of research and innovation and lack of infrastructure to support the production and sale of agricultural produce. Solutions to challenges faced at the market and in the hinterland included coordination of programmes for both urban and rural development by with wider consultations from different players.