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Abstract:The paper examines how rural road investment projects should be selected when the specific objective is taken to be poverty reduction. After critically reviewing past and current practices, an attempt is made to develop an operational approach that is grounded to a public economics framework in which efficiency and equity concerns are inseparable, information is incomplete in important ways, and resources are limited. A key problem addressed is that an important share of the benefits to the poor from rural roads cannot be measured in monetary terms. The proposed selection formula aims to identify places where poverty is high, economic potential is high and access is low. The method is illustrated using data and project experience for Viet Nam. References, graphs, 33 p.
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