The Role of Services in Rural Development Policies

stage in development programs. The most frequently quoted data in this respect show dramatic increases in nonbasic relative to basic employment over the past decade (Leven 1985, p. 584). Since nonbasic activities take the connotation of Services, that context is retained here for discussion purposes. If Services face derived regional demands, then they play an indirect role in economic development, subject to the definition of a region. Enhancing the source of that derived demand would automatically ensure increased Services (including import substitution) without direct action toward them. On the other hand, Services catering to demands from sources outside a region can serve as a staging point for stimulating development of a region. The subsidy decision rule for a region is whether the demand for a Service is from within or outside its trade area.