What Developing Countries Can Learn from the Asian Experience: Selected Aspects of the Significance of Outgrower Schemes for Economic Development

The article provides a study of the most important literature on the rural development in Asian developing countries in terms of arrangements between a farmer and a company. The review of the theoretical aspects of outgrower schemes is the background to comparative analysis of smallholders’ contract in Eastern and Southern Asian developing countries. The paper discusses the potential results of these schemes, especially in relation to the economic development. The article addresses the significance of outgrower schemes in the light of increasing welfare of participants as well as potential disadvantages and barriers.