Answer to Question #125731 in Economics for Awinira Patricia

Question

Rural communities in Ghana are scattered,have smaller population and population densities and therefore it is economically unwise to provide them with social amenities to the expense of densely populated urban communities. In the light of the above
a.explained two reasons to agree with the above statement
b.explain three reasons in support of rural development

Answer 1

a. If social services are provided at the expense of densely populated communities, this will mean that the share of funds per member of a densely populated community will decrease.

The provision of social services has different costs depending on the number of services provided, therefore, in areas of low population density, these services will be much more expensive than the cost of similar services in densely populated areas.

b. For the planned development of the village, it is necessary to properly organize the marketing of agricultural products, which will attract cash flows to the village.

It is also necessary to attract investments for the organization of primary processing of products, which will create additional jobs and reduce the cost of production falling to the consumer by reducing the share of the cost of transporting primary raw materials to processing points. In addition, agricultural products are often limited in the initial processing time, as these periods seriously affect the quality of the products.

The government needs to pursue a policy of social equalization, that is, equalize living conditions in the city and in the village.