scattered peasant holdings. This programme has made some headway, especial-ly in Bale, where it is anticipated that the entire rural population will soon inhabit specially set-up settlements. This will permit not only the state service and delivery systems to incorporate this population into their network but, as importantly, will provide some necessary preconditions for the emergence of collective units which can internalise the wide range of production and social externalities not reaped by individual peasants. With regard to the wider strategic issues concerning regional disparities, it has to be admitted that any headlong or dramatic attempt to 'solve' this historical problem is likely to prove an expensive failure. However, the policy framework developed in this article has inherent in it processes which would diminish the disparities through development at the periphery. Thus, in view of a high degree of economic fragmentation, a special if not overriding priority would have to be assigned to rural infrastructure based on four complimentary activities. First, through labour accumulation facilitated by the co-operative structure, rural roads should be developed linking co-operatives to feeder roads, and these to the main gravel highways. Second, local storage capacity for foodgrains should be constructed at critical supply points, widely dispersed. Over a period, these silos should begin to serve as the grain banks of the co-operatives of the region. Third, local rural industries located at the service-co-operative level should be initiated, at first on the basis of the demand of the members for simple consumer goods and farm implements, and subsequently for a wider range of products, including industrial ancillaries, and consumer goods for a wider market. Such industries, as also the infrastructural creation activities could have a strong seasonal dimension in the present phase of development. Lastly, and perhaps most significantly, concerted efforts should be made to harness the considerable small-scale irrigation potential of the country, but again through the institutional device of the producers' or service co-operatives. The great advantage of the former would be that such activities would be self-financed, and would be non-inflationary in the short run, and strongly anti-inflationary in the long run when their benefits come on stream. The objective should be through such schemes to integrate the economy, to develop rural diversification, and to provide food security. The key to achieving these is the extension of the area of stable grain yields through irrigation. Once again, the objectives of growth and equity appear to be harmonious within a 'boot-strap' strategy of local, self-financed, labour accumulation generated and organised within the emergent rural collective institutions. But critical to the success of these measures is the rapid expansion of the co-operative mode of organisation. In this respect, the experience thus far is extremely disappointing [Ghose, this volume].

DOI link for scattered peasant holdings. This programme has made some headway, especial-ly in Bale, where it is anticipated that the entire rural population will soon inhabit specially set-up settlements. This will permit not only the state service and delivery systems to incorporate this population into their network but, as importantly, will provide some necessary preconditions for the emergence of collective units which can internalise the wide range of production and social externalities not reaped by individual peasants. With regard to the wider strategic issues concerning regional disparities, it has to be admitted that any headlong or dramatic attempt to 'solve' this historical problem is likely to prove an expensive failure. However, the policy framework developed in this article has inherent in it processes which would diminish the disparities through development at the periphery. Thus, in view of a high degree of economic fragmentation, a special if not overriding priority would have to be assigned to rural infrastructure based on four complimentary activities. First, through labour accumulation facilitated by the co-operative structure, rural roads should be developed linking co-operatives to feeder roads, and these to the main gravel highways. Second, local storage capacity for foodgrains should be constructed at critical supply points, widely dispersed. Over a period, these silos should begin to serve as the grain banks of the co-operatives of the region. Third, local rural industries located at the service-co-operative level should be initiated, at first on the basis of the demand of the members for simple consumer goods and farm implements, and subsequently for a wider range of products, including industrial ancillaries, and consumer goods for a wider market. Such industries, as also the infrastructural creation activities could have a strong seasonal dimension in the present phase of development. Lastly, and perhaps most significantly, concerted efforts should be made to harness the considerable small-scale irrigation potential of the country, but again through the institutional device of the producers' or service co-operatives. The great advantage of the former would be that such activities would be self-financed, and would be non-inflationary in the short run, and strongly anti-inflationary in the long run when their benefits come on stream. The objective should be through such schemes to integrate the economy, to develop rural diversification, and to provide food security. The key to achieving these is the extension of the area of stable grain yields through irrigation. Once again, the objectives of growth and equity appear to be harmonious within a 'boot-strap' strategy of local, self-financed, labour accumulation generated and organised within the emergent rural collective institutions. But critical to the success of these measures is the rapid expansion of the co-operative mode of organisation. In this respect, the experience thus far is extremely disappointing [Ghose, this volume].

scattered peasant holdings. This programme has made some headway, especial-ly in Bale, where it is anticipated that the entire rural population will soon inhabit specially set-up settlements. This will permit not only the state service and delivery systems to incorporate this population into their network but, as importantly, will provide some necessary preconditions for the emergence of collective units which can internalise the wide range of production and social externalities not reaped by individual peasants. With regard to the wider strategic issues concerning regional disparities, it has to be admitted that any headlong or dramatic attempt to 'solve' this historical problem is likely to prove an expensive failure. However, the policy framework developed in this article has inherent in it processes which would diminish the disparities through development at the periphery. Thus, in view of a high degree of economic fragmentation, a special if not overriding priority would have to be assigned to rural infrastructure based on four complimentary activities. First, through labour accumulation facilitated by the co-operative structure, rural roads should be developed linking co-operatives to feeder roads, and these to the main gravel highways. Second, local storage capacity for foodgrains should be constructed at critical supply points, widely dispersed. Over a period, these silos should begin to serve as the grain banks of the co-operatives of the region. Third, local rural industries located at the service-co-operative level should be initiated, at first on the basis of the demand of the members for simple consumer goods and farm implements, and subsequently for a wider range of products, including industrial ancillaries, and consumer goods for a wider market. Such industries, as also the infrastructural creation activities could have a strong seasonal dimension in the present phase of development. Lastly, and perhaps most significantly, concerted efforts should be made to harness the considerable small-scale irrigation potential of the country, but again through the institutional device of the producers' or service co-operatives. The great advantage of the former would be that such activities would be self-financed, and would be non-inflationary in the short run, and strongly anti-inflationary in the long run when their benefits come on stream. The objective should be through such schemes to integrate the economy, to develop rural diversification, and to provide food security. The key to achieving these is the extension of the area of stable grain yields through irrigation. Once again, the objectives of growth and equity appear to be harmonious within a 'boot-strap' strategy of local, self-financed, labour accumulation generated and organised within the emergent rural collective institutions. But critical to the success of these measures is the rapid expansion of the co-operative mode of organisation. In this respect, the experience thus far is extremely disappointing [Ghose, this volume].