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Question

For low-income countries, which of the following is not a basic infrastructure service?

The correct answer is

Telecommunication

Understanding Basic Infrastructure in Low-Income Countries

Basic infrastructure refers to the fundamental physical and organizational structures and facilities (e.g., buildings, roads, power supplies) needed for the operation of a society or enterprise. In low-income countries, the focus of basic infrastructure is often on services that are essential for immediate human needs, economic activity, and poverty reduction.

Analyzing Infrastructure Services in Low-Income Countries

Let's consider each option provided in the context of basic infrastructure for low-income countries:

  • Irrigation: For many low-income countries with significant agricultural sectors, irrigation is absolutely fundamental. It ensures reliable water supply for crops, increasing food security, improving rural livelihoods, and boosting agricultural productivity. It directly impacts the ability to feed the population and earn income, making it a basic necessity.
  • Transport: A functional transport network (roads, railways, ports) is crucial for connecting producers to markets, enabling access to education and healthcare, facilitating trade, and allowing the movement of people and goods. Without basic transport infrastructure, economic activity is severely limited, and access to essential services is restricted. It is a foundational element for development.
  • Power: Access to reliable electricity (power) is essential for modern life and economic development. It powers industries, schools, hospitals, and homes. It enables businesses to operate efficiently and improves the quality of life through lighting, refrigeration, and powering essential services. Lack of power is a major constraint on development and a basic requirement for many activities.
  • Telecommunication: Telecommunication services (like phone lines, mobile networks, internet) are increasingly important for communication, information access, and business. However, when considering the absolute "basic" needs in the initial stages of development for the poorest populations in low-income countries, telecommunication infrastructure, while beneficial, might be considered less immediately life-sustaining or foundational than water for crops (irrigation), movement of essential goods/people (transport), or basic energy for light/powering services (power). While its importance is growing rapidly, it is often considered a service that becomes more universally basic as a country moves beyond the very lowest income levels and most urgent infrastructure deficits.

Comparing these options, while all are important for development, telecommunication is often the one that is considered slightly less "basic" or less critical for the immediate, fundamental needs of the poorest populations compared to reliable water for agriculture, physical connectivity, and basic energy access.

Identifying the Non-Basic Service

Based on the typical priorities and definitions of basic infrastructure in low-income countries focusing on immediate human needs and foundational economic activity, telecommunication services are often considered less basic than irrigation, transport, and power infrastructure.

Revision Table: Basic Infrastructure Elements

Infrastructure Type Importance in Low-Income Countries Considered Basic?
Irrigation Crucial for agriculture, food security, rural livelihoods. Yes, fundamental.
Transport Essential for connectivity, markets, services, trade. Yes, foundational.
Power Necessary for industry, services, homes, quality of life. Yes, crucial.
Telecommunication Important for communication, information, business. Often considered less basic than the others in initial stages.

Additional Information: Infrastructure Development

Investing in infrastructure is a key component of economic development in low-income countries. Different types of infrastructure have different impacts:

  • Hard Infrastructure: Refers to the physical networks necessary for a modern economy, such as roads, bridges, railways, ports, airports, energy pipelines, power lines, water and sewage systems, and telecommunication lines.
  • Soft Infrastructure: Refers to the institutions and services that enable the operation of hard infrastructure and support economic activity, such as education systems, healthcare systems, financial institutions, and governance structures.

While telecommunication is part of hard infrastructure, its 'basic' status can be debated depending on the specific context and stage of a country's development compared to needs like access to clean water, reliable food sources, or fundamental connectivity.

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Important Questions from Government Budget and the Economy

  1. Arrange the sequence of events relating to the formulation of Goods and Services Tax in the correct sequence.

  2. Arrange the following events in a sequence of their occurrence:

    (A) Parliament passes Mahatma Gandhi National Rural Employment Guarantee Act

    (B) Demonetization

    (C) Jan-Dhan Yojana

    (D) Introduction of Goods and Services Tax

  3. Determine Fiscal deficit from following:
    Revenue Receipts = ₹20 Crores
    Revenue Expenditure = ₹30 Crores
    Capital Expenditure = ₹40 Crores
    Borrowings = ₹15 Crores

  4. Match List-I with List-II.

    List-I (Earning)List-II (Factor Income / Transfer Income)
    A. Salaries of Government staffI. Profit
    B. DividendII. Mixed Income
    C. Self-employed personIII. Compensation of Employees
    D. GiftsIV. Transfer Income

    Choose the correct answer from the options given below:

  5. A tax that acts as an automatic stabilizer - a shock absorber, because it makes disposable income spending less prone to fluctuation in GDP. That tax is:

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