Export Growth and Development to Poor Rural Regions: a Meso-Scale Analysis of the Upper Limari

Abstract — The aim of this article is to explore the recent social and economic evolution of a rural region that was formerly one of the poorest in Chile but has been transformed by a productive specialisation in table grapes for export markets. The region is that of the Upper Limari in Chile's semi-arid Norte Chico. The analysis focuses on changes in four interrelated variables: productive investments; land markets; labour markets; and population distribution. Rapid growth in investment, the emergence of dynamic land markets, dramatic increases in labour productivity have transformed the agricultural sector. Small-scale farming has survived poorly due to lack of capital, technical problems and lack of bargaining power with the international fruit companies. The large-scale farmers have enjoyed better conditions and a reconcentration of land has occurred. However, the emergence of new productive activities in an area where labour alternatives have been historically scarce has provided new sources of income. Population is increasing in rural settlements linked to irrigated agroexportation and quality of life indicators have improved. Rural depopulation is not a feature of the region as a whole.