Rural Infrastructure and Agricultural Development

Abstract

Agricultural development is essential for economic growth, rural development, and poverty alleviation in low-income developing countries. Increasing agricultural productivity is an effective driver of economic growth and poverty reduction, both within and outside agricultural sectors. Increasing productivity requires good rural infrastructure, well-functioning domestic markets, appropriate institutions, and access to appropriate technology. Despite the well-documented importance of rural infrastructure to promote growth and reduce poverty, the high economic rates of return on investment in rural infrastructure, and significant deficiencies of rural infrastructure in most developing countries, neither national governments nor international aid agencies seem to prioritize investment in the construction of new infrastructure or in the maintenance of existing infrastructure. Failure to accelerate investment in rural infrastructure will make a mockery of efforts to achieve the Millennium Development Goals in poor developing countries and severely limit their ability to benefit from trade liberalization, international capital markets, and other potential gains from globalization.

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