Modeling Integrated Development Investments in Rural Areas: An Indonesian Illustration

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Abstract
Rural development continues to receive the attention of Third World governments and development agencies. Despite substantial funding, progress remains slow, partly as a result of the lack of sound planning. Too frequently, programs are duplicative, and the need for a systems approach is not recognized. This article demonstrates the utility of a goal programming method for coordinating investments in rural areas. The method recognizes the importance of a hierarchy of service centers through which public goods may be delivered. A rural setting in Indonesia is used to show how the approach can be implemented.