Question

'The role of the State is important in developing the economic infrastructure of a developing economy'. Give two reasons to support your answer.

Why is government support necessary to build up economic infrastructure in a developing economy?

Answer 1

1. Investment in infrastructure is crucial as it promoters investment both in private as well as public sectors.
2. Infrastructural facilities are quite inadequate in a developing economy. Private investors do not like to invest in their development. So state's role is considered indispensable.