Question

For centuries, rural development was ignored by economists and intellectuals-- it was thought that industrialization and urban development were the key to economic growth. Today most development economists see rural development as a key component.

a). Why did economists change their mind?

b). Design a strategy for rural development. If you want to pick a specific country that is fine, or just come up with a general plan.

Answer 1

A. a. There is always limit to urban development and urban resources in the form of land, water and all basic needs.

b. Urban areas have geographic limits and cannot go beyond a certain limit.

c. Industrialization is increasing all over the world and cost based competition is limiting incomes whereas increasing migration towards urban areas is high which creates problems of unemployment, lack of affordable housing etc.

d. Primary sector is still relevant as changing food needs encourages experiments and also pays well.

e. Primary sectors and rural area has huge employment potential.

Due to all these factors economists had to change their mind forced come up with a policy that focusses on both riral ad urban development.

Q. B. In India, there are many schemes aimed towards rural welfare. Eg. Scheme to connect all villages through good roads, making sure that potable drinking water is available all the times, electricity is available round the clock. In terms of health and education new schools and primary health care centers are increasing.

To maintain rural labor force in rural ares only govt. is giving vocational training and micro credit institutions are promoted.Women are empowered through self help groups.

In short, a policy to reduce rural-urban divide and make sure that development reaches to all levels of economy.