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The Role Of Rural Industries In Under-Developed Areas

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Chapter Summary

The present article, based on the authors' personal experience, describes certain procedures that should be observed in the development of new and the extension of established small rural industries, and examines the condition and prospects of such industries in underdeveloped areas, with particular reference to Asia. In India large industries employ only one per cent of the total labor force. The economic and social factors are shaped by political developments. Political stability is necessary for constructive, long-range economic and social change. Where there is less stability but some government interest in the basic reforms required for increased agricultural and industrial production, as in the United States of Indonesia, it should still be possible to render Point Four aid effectively. The amount of foreign aid and the size of any programs undertaken should be small initially, and should be increased slowly, in direct proportion to the stability achieved.

Keywords: India; Point Four aid; political stability; rural industries; underdeveloped areas; United States of Indonesia



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