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INTRODUCTION
Throughout the developing world, access to formal education, health services,
transportation (roads/vehicles), water supply and other utilities is inequitable and of
poor quality. This report attempts to explain how development assistance, economic
policy, and institution building can help to mitigate these inequities in the distribution
of infrastructure. It will explore the role of governance in the provisioning of
infrastructure and the reduction of poverty in small communities. The goal of this
study is to strengthen the linkages between governance, infrastructure and poverty
reduction. Under what conditions do these linkages become weaker and when do they
break down? What policy instruments, strategies and institutional changes can be
identified to strengthen these linkages? And what approaches and strategies, from the
governance perspectives, can be identified for further investments in infrastructure
and for providing more infrastructure services at the country level?
It has been established that infrastructure is important for economic growth.
However, infrastructural investment has had limited direct effect on poverty. The
supply of infrastructure does not guarantee that poor people are able to use it. The
benefits to the poor from additional infrastructure have been significantly less than
anticipated. Due to weak governance, institutions, distorted public investment choices
and inadequate maintenance, the contribution of infrastructure to growth are