The report is structured as follows.Section one examines the contribution of the rural economyto the national economy, the structure of the farm andnon-farm sectors and their relative importance. Section twodescribes policies and constraints affecting the wider ruraleconomy including, reforms in macro-economic management,recent external influences and financial services beforediscussing those which relate specifically to agricultureincluding, agricultural trade policy, land reform,agricultural machinery services , irrigation and drainage,seeds, sanitary and phytosanitary control and veterinaryservices, marketing and advisory services. Section threeassesses the outcomes of these policies on the structure andperformance of the rural economy. Section four describes theextent to which policy makers should prioritize the farm andnon-farm sectors in rural areas and then presentsrecommendations for reform. While it is recognized thatrural infrastructure (roads, potable water, and energy) andrural social services have a major impact on the ruraleconomy, the report does not attempt to address these issuesin detail. Rural Infrastructure issues are examined in'rural infrastructure in Georgia, improving servicedelivery' (World Bank, 2006) and key findings of thisreport are summarized at the end of section two.