ABSTRACT
Village industry and commerce tend to grow the fastest in villages servicing surrounding villages. Villages with a longer history of electrification had a higher level of industry and commerce. Rural electrification has a significant impact on rural industry and commerce. The critics counter that the record to date of small-scale industrial and commercial development in rural areas with electricity has been poor; the growth of rural industries in developing countries simply may not parallel the experience of the United States or other developed nations. According to John W. Mellor, direct investment in public services that facilitate small-scale industrial and commercial growth should take precedence over the construction of large-scale factories. The chapter presents the conclusions from the 1980s surveys conducted in India, Colombia and Indonesia. Indonesia had a greater diversity of shops and manufacturing firms in the 1980s, reflecting the high level of development in the specific region sampled.
