Question

To improve resource mobilisation in rural areas, a government should focus on:

• A. Increasing subsidies for large-scale agricultural projects.
• B. Implementing strict price controls on agricultural produce.
• C. Developing micro-credit schemes and improving access to financial services.
• D. Reducing government investment in rural infrastructure.

Answer 1

Answer:

C. Developing micro-credit schemes and improving access to financial services.

• Micro-credit and better access to financial services empower rural populations to engage in economic activities, which in turn can lead to higher savings and a broader tax base.