Question

Discuss the importance of basic infrastructure for the growth and the spread of rural enterprise and small industries

Answer 1

Agricultural development is essential for economic growth, rural development, and poverty
alleviation in low-income developing countries. Productivity increase in agriculture is an effective
driver of economic growth and poverty reduction both within and outside agricultural sectors. Such
productivity increase depends on good rural infrastructure, well functioning domestic markets,
appropriate institutions, and access to appropriate technology. While the state of rural infrastructure
varies widely among developing countries, most lower-income developing countries suffer severe
rural infrastructure deficiencies. Deficiencies in transportation, energy, telecommunication, and
related infrastructure translate into poorly functioning domestic markets with little spatial and
temporal integration, low price transmission, and weak international competitiveness.
In spite of the well documented importance of rural infrastructure to promote growth and
poverty alleviation, high economic rates of return to investments in rural infrastructure, and
significant deficiencies of rural infrastructure in most developing countries, neither national
governments nor international aid agencies seem to prioritize investments in the construction of new
infrastructure and maintenance of existing infrastructure. Much of the required investment is of a
public goods nature and thus most of the infrastructure investments must come from public sources,
while public-private partnership should be pursued when appropriate. Failure to accelerate
investments in rural infrastructure will make a mockery of efforts to achieve the Millennium
Development Goals in poor developing countries while at the same time severely limit opportunities
for these countries to benefit from trade liberalization, international capital markets, and other
potential benefits offered by globalization.

Answer 2

basic infrastructure means transport ,sanitation,dinking water,healthcare facility, electricity and employment etc.

Basic structure is work as chain which help in the development from initial stage to the final
rural enterprises and small industries are playing a vital role in the devlopment of dular areas becoz it provides employment opportunity as well as transportation too