---

Development economists consider structural transformation as a key process for the long-term progress in developing countries. The cluster concept, generally a geographic one, became dominant in the field of regional economics and economic geography since early 1990s. However, very little academic literature exists that directly tie promotion of structural transformation with rural cluster formation in developing economies. This book, therefore, tries to do so through exploratory case study, which dimensions are space (cluster concept), time (structural transformation) and levels of change (macro-meso-micro). Based on theoretical and methodological frameworks, the analysis reveals minimal production - ensured consumption livelihood strategy of rural households, as I named it. Livelihood diversification is of subsistence and defensive character, and rural clusters are viewed as a way to overcome the mini-economy effect (in the context of Armenia), driving structural change development of rural farm and non-farm economies. The book should be especially useful to students, development researchers and practitioners, or anyone else who is interested in rural/economic development.

---

Aleksey Hovakimyan, MSc in International Development and Management (LUMID, Lund University). Expert for Rural and Environmental Economy, GTZ Project Sustainable Management of Biodiversity in South Caucasus , Armenia. Professional Experience: Teaching, academic research, consultant/expert in development projects.

---