World Bank Says ‘Local Economic Development’ Is Need Of Hour; Lists Out These 3 Focus Areas

While large size economic reforms may help India to recover from the woes induced by the coronavirus pandemic, transforming local economies is likely to be a game-changer in economic revival. There is now a need to focus on comprehensive support to transform local economies during and after the pandemic for long-term economic recovery and resilience, said a World Bank blog. The piece further said that the local economic development approach in the rural context can have three focus areas — a territorial focus to capitalize on the strengths of a specific region or area, linking poor people to value chains with potential, and investments that promote the local business environment with improvements in internet access, electricity, and core infrastructure. 

It also hailed the initiative taken by India towards women’s self-help groups (SHGs) through the World Bank-supported National Rural Livelihoods Mission for the production of masks and hand sanitizer, dissemination of vital public health information, and preparation of food for distribution in community kitchens. Local economic development is considered to be the most critical determinant in improving the quality of economic growth both in terms of offering inclusion as well as resilience and sustainability.

Source: Financial Express

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