Planning for rural industrialization: a review of developing country programmes

Sinha, S.

Occasional Papers, Intermediate Technology Development Group, UK 8: 62

1983


Document Number: 400246
For the purpose of this study, rural industry is defined as all manufacturing or machinery servicing activity located in villages or in small towns (excepting those which are centres of national or provincial administration). This definition is based on the observation that small towns act primarily as marketing and service centres for the surrounding hinterland and are, thus, inextricably linked with the rural economy. In order to promote rural industrialization, government policy must operate on the factors affecting the investment climate or economic environment in developing countries: this environment is described in Section II of the paper. In Section III, the results are presented of a review of the latest available development plans of 41 developing countries. A categorization of the legislative and administrative instruments employed for rural industry promotion in 13 of these countries is undertaken in Section IV. In Section V, the institutional arrangements for the implementation of rural industrialization in these countries are discussed. Section VI presents a preliminary assessment of the factors affecting the efficacy of strategies and specific policy measures for rural industrialization.

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