Infrastructure and Poverty Reduction - What is the Connection?

Publication | January 2003

Rural infrastructure investments can lead to higher farm and nonfarm productivity, employment and income opportunities, and increased availability of wage goods, thereby reducing poverty by raising mean income and consumption.

Poverty reduction requires economic growth which, when accompanied by sound macroeconomic management and good governance, results in sustainable and socially inclusive development (ADB 1999). Greater access of the poor to education and health services, water and sanitation, employment, credit, and markets for produce is needed. Moreover, the vulnerability of the poor to economic shocks and natural disasters must be reduced to enhance their well-being and encourage investment in human capital and in higher-risk and higher-return activities. Public policy reforms and investment in physical infrastructure will significantly contribute to the pursuit of socially inclusive development.


  • Analytical Framework
  • Empirical Evidence
  • Roads
  • Irrigation
  • Electricity
  • Conclusion
  • References

Additional Details

  • Poverty
  • 1655-5260 (Print)

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