39th Annual Meeting

Policy and Institutional Frameworks for Improving Rural Infrastructure

(Organized in cooperation with IDFC Ltd.)

3 May 2006 (12:00 p.m. - 2:00 p.m.)

Although there have been investments in infrastructure by countries in Asia and the Pacific region during the last decade, the rural population remains poorly served. Many countries have not succeeded in providing the infrastructure necessary for the development of private, efficient, and competitive supply chains for food and agricultural products. Rural productivity, employment, and growth are critical drivers for lifting a national economy. However, gains from agriculture, forestry, and off-farm income generating activities cannot be achieved and sustained in the absence of basic and appropriate rural infrastructure. This infrastructure ranges from roads, communication, electricity, and energy to social infrastructure such as education, health, sanitation facilities, and drinking water.

Infrastructure has the potential to influence rural economic performance through three avenues: expanding the use of existing resources (e.g., labor and capital), attracting additional resources to rural areas, and making rural economies more productive. Several studies have demonstrated that investment in rural infrastructure significantly contributes to reductions in rural poverty. Infrastructure facilitates access to input and product markets and to value-added processing. It lowers transaction costs. On the other hand, limited rural transportation and communication networks result in higher transaction costs and low returns for agricultural producers, greatly hindering their chances of benefiting from economic growth. Water and sanitation services also have a positive impact on rural household productivity by improving health and earning potential in the long run.

The seminar aims to answer the following questions.

• How can adequate levels of investment be ascertained? How can subsidies that do not reach the targeted beneficiaries be reduced or eliminated?
• How can reforms be promoted, management and administration of public institutions be improved, transparency and accountability of public sector activities be increased, the delivery of services be diversified, and prudential regulations be established?
• How can an enabling policy environment be created at various levels to provide universal infrastructure services?

Contact Us

For further information, contact Mr. Anupam Rastogi, anupam@idfc.com