Rapid population growth and widespread unemployment are twin dilemmas in all the South-east Asian nations. In other more developed countries, increases in population have coincided with the growth of industry and towns. Consequently serious rural unemployment has been avoided. However, the pace of industrialization in South-east Asia has not been able to cope with the natural growth of the cities, let alone to absorb immigrants from the countryside. Yet, even the very limited opportunities for employment in the towns has attracted people to them with concomitant spreading of slums, poverty and squalor. It can be argued that ‘urban growth in the underdeveloped areas is not a feature of the expansion of the industrial base but an expression of the severity of the agrarian crises’. Further, it seems unlikely that the current rate of urbanization and industrialization in South-east Asia will solve the unemployment problem in the region. A solution must be found within a rural context.