The Importance of Road Components in IFAD Projects

The inclusion of roads in IFAD projects has been known to provide great social benefits to the poor, e.g. improving rapid and emergency access to hospitals, increasing the attendance of children in schools, etc. Roads have also been know to greatly stimulate agricultural production by providing access to markets, helping also in the transition from pure subsistence to market-oriented production. However, more recent evaluations have also shown the importance of roads in stimulating and expanding non-farm activities. This has been achieved within the context of area and rural development projects, where the inclusion of road components has helped to accelerate and enhance the production and consumption linkages within the concerned project areas, thus multiplying non-farm activities and employment opportunities for the poor.

This lesson has been confirmed by many evaluation in Asia: in Sri Lanka (179-SR) the evaluation of the project showed that land values had quadrupled in four years along a particular new feeder road (which linked a rural area to a main road). The road had led to the mushrooming of constructions, small retail shops and tea kiosks, providing employment to the poor in the construction and service industries. The Sri Lanka Country Strategy Mission stressed the importance of roads from the point of view of: " enhancing the effects of production and consumption linkages generated by other area and rural development activities, with resulting spin-off effects in terms of multiplying non-farm activities and employment."

Farm to market roads have been included in most of the "second generation" projects in Pakistan, including 162-PA, 209-PA, 234-PA and 257-PA. The Pakistan CPE, commented that "there is no doubt that rural infrastructure is a major determinant of development, particularly in remote rural areas. The demand for can be expected to grow as IFAD continues to develop village-based initiatives....."

Rural roads are of importance in most types of projects, from social, agricultural and rural industrial points of view. They are of special importance in multiplying the opportunities for non-farm employment. They should, therefore, be included in most area development projects, and especially those with a strong non-farm or rural industrial component.

 

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