Integrated rural development projects : the Bank's experience

With the growing emphasis that the Bank is placing on the rural sector, especially on efforts to raise the productivity and income levels of the rural poor, it has become involved in a number of integrated rural development projects. Although rural populations are largely dependent on agriculture, rural development is not synonymous with agricultural development. The focus of rural development projects should be on rural poverty, and objectives should include increased productivity and higher incomes for the rural poor. In addition, benefits derived from these projects should reach large numbers of low-income producers, should be financially viable and able to raise incomes of this group, and should be replicable. Bank experience has led to several conclusions: (i) new technology will be used only when it is profitable; (ii) development and sustaining of low-cost delivery systems for support services is difficult; (iii) low-cost, effective credit programs are urgently needed; (iv) assistance to small farmers will require subsidization; (v) the degree of acceptance of new technology and of taking advantage of new opportunities varies; and (vi) maximization of local financing and maintenance of investments are essential from the onset.