ABSTRACT
The energy crisis of 1973-74 erupted during the middle of the Third Plan, causing serious repercussions. The gradual adjustments in domestic fuel prices delayed the effect on the overall economy in spite of quantum leaps in imported fuel cost. Economic demand and consumption grew excessively, contributing to a high inflation rate, while foreign borrowing and investment loans increased to offset the growing deficit in the balance of trade. Commercial energy consumption is highly concentrated in the developed, heavily concentrated industrial, and heavily populated urban areas. Small-scale rural industry answers local needs for goods and provides both permanent and seasonal employment to rural communities, thereby reducing migration to already crowded cities. Rural electrification is regarded as important by development authorities for increasing economic productivity and living standards. Serious disparity exists in the distribution of development benefits as indicated by various economic and social conditions.
