Poverty Reduction, Pro-Poor Service Delivery & Improved Livelihoods

Infrastructure improvements have an important role to play in contributing to pro-poor growth and poverty reduction.

The mechanism for this can be direct, through for example wages paid in public works schemes, in particular where efficient use is made of labour-intensive techniques. Improvements in local infrastructure can reduce the daily costs of the poor, both in terms of unit costs for energy, or time costs of fetching water or firewood.

As well as this, infrastructure improvements can help to enhance the productivity of the poor, by reducing the costs of doing business and enabling people to access markets. It is crucial to advances in agriculture, is a key enabler of trade and integration, and is fundamental to human development, including the delivery of health and education services to poor people.