This research seeks to conduct an evaluation study of the Rural Telephone Expansion Project that was initiated with the Saemaeul Loan granted by the International Bank for Reconstruction and Development (IBRD). The study examines the progress of the rural telephone business and evaluates the positive impacts that have been created as a result, focusing on 306,497 households from 3,579 areas that are part of the expansion project.
Electricity consumption is generally classified according to its nature of use – personal or production. In the case of the rural communities, however, power lines are not evenly installed while electricity consumption for production purposes use the same gauge power lines as household gauges. To address this issue, conditions for power consumption have been improved and the purpose of usage clearly distinguished.
In many aspects the expansion of telephone lines has brought positive results in the rural areas. Looking at the indirect effects, profit increased from the purchasing of electrical products as power consumption rose, leading to the development of a market for electrical appliances. On the other hand, the effect on employment in the rural area was disregarded as power lines were not installed.
In terms of business effects, once telephone services were made available, the telephone became a necessity in rural life. The telephone improved people’s everyday life and health, being used for convenience and ceremonial purposes such as the coming of age, weddings, funerals and ancestral rites. In particular, the gap in electricity consumption between the urban and rural areas was greatly reduced.
The development of the telephone line for the utilization of electricity in the agricultural and fishery industries is an issue that must be resolved. Development is taking momentum, with rural industries not being an exception in the scope of development. The demand for power will quickly rise for a long time in both the agricultural and the fishing industries, as the agricultural industry will need power for its farming technologies such as pumping, threshing, and utilizing the water supply system. Likewise, the fishing industry will need power to store and dry its marine products. In contrast to the fast increasing demand, there is a shortage of power with the capacity of the current transformers. As the demand is expected to rise continually, the consumption conditions will have to be met in order to support the industries’ production.
The FRR from the Rural Telephone Expansion Project under the IBRD Loan marked 11.99%, an IRR of 14.20%, and an ARR at 18.60%.
- IBRD 새마을 차관(Evaluation study on the rural telephone expansion project under the IBRD loan)
- 석배영; 황석고
IBRD 새마을 차관(Evaluation study on the rural telephone expansion project under the IBRD loan)
농어촌 전화사업 평가연구
|Series Title; No||사업별결과보고서|
|Subject Country||South Korea(Asia and Pacific)|
|Subject||Economy < Financial Policy
Industry and Technology < Science/Technology
Territorial Development < National Land Development