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The Nature of Rural Infrastructure: Problems and Prospects

Author

Listed:
  • Suman Bery
  • D.B. Gupta
  • Reeta Krishna
  • Siddhartha Mitra

    (National Council of Applied Economic Research)

Abstract

This paper looks at rural infrastructure facilities in India, the lack of which is demonstrated to be an impediment to sustained economic development. We argue that problems of rural infrastructure provision are different from those of the urban, given the smaller size, density and per capita incomes of rural agglomerations. While privatisation is now being considered as the giver of increasing efficiency in the provision of urban infrastructure, this policy recommendation has to be modified in the case of rural infrastructure. Private investors will tend to shun rural areas, especially the ones remote or those that have low incomes or low population density, because of low expected rates of return. Thus, social equity might be endangered. It is necessary, therefore, to have a public–private partnership where subsidies or incentives provided by the government would help to direct private investment towards these disadvantaged areas.

Suggested Citation

  • Suman Bery & D.B. Gupta & Reeta Krishna & Siddhartha Mitra, 2004. "The Nature of Rural Infrastructure: Problems and Prospects," NCAER Working Papers 94, National Council of Applied Economic Research.
    • Handle: RePEc:nca:ncaerw:94
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    References listed on IDEAS

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    1. Lars-Hendrik Roller & Leonard Waverman, 2001. "Telecommunications Infrastructure and Economic Development: A Simultaneous Approach," American Economic Review, American Economic Association, vol. 91(4), pages 909-923, September.
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    3. Fink, Carsten & Mattoo, Aaditya & Rathindran, Randeep, 2003. "An assessment of telecommunications reform in developing countries," Information Economics and Policy, Elsevier, vol. 15(4), pages 443-466, December.
    4. Songco, Jocelyn A., 2002. "Do rural infrastructure investments benefit the poor? Evaluating linkages : a global view, a focus on Vietnam," Policy Research Working Paper Series 2796, The World Bank.
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