Observation

This question was popularly answered by the candidates. Many of the candidates were able to correctly define manufacturing industries, but some candidates mistook the measures which ought to be taken to encourage growth of manufacturing industries to mean factors of industrial location. The measures which should be taken to encourage the growth of manufacturing industries include:

• provision of credit facilities/Industrial Development Banks (IDBs)
• establishment of micro finance schemes
• provision of subsidies/reduction in import duties
• creation of industrial zones/estates
• provision of basic infrastructure/social amenities (e.g. water supply, health facilities, communication facilities)
• imposition of low taxes for industries at preferred areas/tax holidays
• improved technical education
• regular supply of electric power
• improved transport network
• training and retraining of manpower/management
• production of local raw materials/improvement in agriculture
• sensitization on the use of local products
• intensive research
• easy access to raw materials
• local fabrication of spare parts
• ban on importation of competing goods/high tariffs on imported goods
• good governance/political stability
• consistency in policy formulation and implementation
• active government participation
• encouragement of public private participation
• good maintenance culture
• improved purchasing power
• land use reforms
• diversification of the economy
• conservation of foreign exchange
• even distribution of industries
• development of infrastructure

The reasons for which industries should be located in rural areas include:

• improvement in standard of living
• development of rural areas
• implementation of government policy
• reduction of rural-urban migration
• encouragement of urban-rural migration
• employment opportunities
• provision of income
• skill acquisition/manpower development/transfer of technology
• increased provision of goods/GDP
• stimulation of other sectors of the economy
• encouraging the processing of agricultural raw materials
• reduced dependence on importation
• boosts internal trade/commercial activities
• diversification of the economy
• conservation of foreign exchange
• even distribution of industries
• development of infrastructure