Restricted flow of local economy


  • Limited local economy
  • Village economic isolation
  • Contained village economy

Incidence

Although small rural communities need to relate their market economies to those of the district, national and global economies, they frequently have no way of doing so. There is often no regular, inexpensive transport to the market; therefore little cash comes into the village economy. Services such as boat and house building, land cropping and fishing are often given free rather than as income earning ventures, leaving the village with an exchange of services, but no cash to transfer in the economy. Money which does enter the village is often circulated immediately outside the community for petrol, transport, groceries or luxury items, leaving a constant cash deficit.


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