s2fieldsofstudy: Economics Medicine

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Determinants of Household Willingness to Pay for Improved Water Supply: A Case Study of Baringo and Samburu Counties, Kenya

Background: In Sub-Saharan Africa, the supply of affordable, accessible and safe drinking water particularly in rural areas lags behind global progress. Achieving the universal and equitable access objectives warrants an understanding of household behavior in relation to water services. Purpose of the study: The aim of the study was to investigate the factors that influence willingness to pay for improved water service provision in a rural context in Kenya. Methods: A total of 601 households in Baringo and Samburu Counties were randomly selected using probability proportional to size technique. The data was analyzed using descriptive statistics and logit regression. Results: The empirical result shows that demographic characteristics of household, water source, quality and quantity, children responsible for fetching water, water access challenges and frequency of diarrhea are significant variables that explain willingness to pay. Conclusion: The findings conclude with important policy recommendations; (i) demand-driven approaches in the design of water supply projects, (ii) enhanced water quality management, and (iii) awareness creation to achieve social and health benefits which can facilitate long-term access and sustainability.

Inadequate water supply systems affect the effectiveness of sewerage systems which results in water contamination and expose people to water-borne diseases. To improve the water supply situation, demand-side information is a prerequisite for the design of sustainable water projects including the implementation of cost recovery measures, infrastructure management services and the involvement of consumers in establishing the choice of appropriate water supply systems (Gulyani et al., 2005a). Therefore, this case study adds to literature (Gulyani et al., 2005a;Onjala et al., 2014;Rotich et al., 2018;Wagner et al., 2019)on drivers and barriers that influence household willingness to pay for improved water in a rural setting context. These results are important since they inform our understanding of user perception and can be used to predict the household's willingness to pay improved water supply systems.

Materials and Methods
The study utilizes a baseline data collected by Kenya Red Cross Society (KRCS) conducted in its sites for the strengthening disaster risk reduction and emergency response project in Baringo and Samburu Counties of Kenya. The baseline survey was administered in November and December 2019through face-to-face interviews administered by trained research assistants. During the survey administration, informed verbal consent was obtained from the study participants following a detailed explanation of the study in local dialect before conducting the interviews. Participation was voluntary without any coercion or penalty for refusal to participate in the study. Probability-proportional-to-size sampling was used to randomly select the villages and households in each sub-county. In total, 65 villages and 601 households including 317 drawn from Baringo (North, South and Tiaty sub-counties) and 284 from Samburu (East and North sub-counties) were surveyed. A logit regression model was chosen because of the dichotomous nature of the dependent variable used to identify the factors that influence household's willingness to pay for water services. While the average marginal effects provide further analysis of the mechanism of the relationship estimated with regression. The dependent variable, willingness to pay for the water services was a binary response taking values of (0,1) that is household willing to pay or not for improved water supply. The response was regressed against household demographic characteristics, socio-economic factors and the water supply situation. Analyses were performed using STATA version 13 (Stata Corp, College Station, USA).

Socio-economic Profile of the Households
Summary statistics of selected variables for the surveyed households are presented in Table 1. Overall, majority of the household heads in the survey were male household heads (67%) and 33% were female household heads. Education levels were generally low with 49% having no formal education, while 30% had completed primary education and 7% having had post graduate qualification. The average age of the of the respondents was 36 years, with about 36% below 29 years, 32% between 30 and 39 years, while 4% accounted for those that were above 69 years of age. Regarding the main source of water, the results indicate that rivers, streams and rainwater are predominant (40%) sources of water in Baringo and Samburu counties, followed by communal boreholes and dams (15%), public taps (13%) while 11% fetched water from open public wells. Only a few households (5%) have access to 'in-house piped' water, implying that most of the water sources in the study area are not reliable or safe for consumption. With regards to the challenges experienced in accessing water, long distance to current water source (52%), competition with livestock and other wild animals (24%), costs (14%) and lack of availability of water (3%) were the main problem in accessing water. Other challenges experienced include; drying up of the water source especially during drought, poor water quality, long queues at the sources, and risks posed by snakes, crocodiles and other wild animals.

Factors That Influence Household Willingness to Pay for Improved Water Supply
Majority of the households in the study area had relatively low willingness to pay, 63% indicated that they would not be willing to pay for improved water services. This behavior consistent with previous studies (Ahuja et al., 2010;Ashraf et al., 2010;Dupas, 2014;Null et al., 2012)and in Kenya Null, et al., 2012)have demonstrated a low willingness to pay for water treatment and quality. This has been attributed to households undervaluation of water services, behavioral preconceptions, limited resources and comprehension of water resource management (Ahuja et al., 2010;Foster & Hope, 2017;Olaerts et al., 2019).
The results from the binary logit model and the marginal effects are presented in Table 2.The results show that demographic (sex of the household head, household size),source of water, quantity of water used on a daily basis, children responsible for fetching water, water access challenges, need to improve water quality and frequency of diarrhea had a significant influence on the willingness to pay.
The coefficient of sex of household head was negative and significant at 1% level, implying that male household heads are less likely to pay for improved water services compared to their female counterparts. The marginal effect result shows that keeping other variables constant at their mean values, being male decreases the likelihood for households' willingness to pay for water service by 32%. This result lends credence to previous studies (Crow et al., 2012;Graham et al., 2016) that found that women carry the burden of water in most rural communities. Household size was found to have significant effect at the 1% level of significance with a negative parameter estimate which implies that willingness to pay for water services decreases as household size increases. This could be attributed to the higher demand for water by larger families and the availability of labour that can be used to fetch water from various sources. The marginal effects indicate that if family size increased by one person, it would result in a 5.8% decrease in the willingness of a household to pay for water services. Previous empirical studies have been reported in other studies (Islam et al., 2019;Rotich et al., 2018).
This study found that the primary water source substantially influenced households' willingness to pay for water services at the 1% level of significance. Households that reported that they had piped-water connection and those who accessed public taps were more likely to pay. The marginal effects show that households that use piped water supply connections and public tap water as their main source of drinking water are 66% and 45% more likely to pay for services as compared to those that use other sources such as borehole, lakes and rivers. A considerable proportion (12%) of the households in the study area indicated that they fetch water from the public taps hence they would be willing to pay to enhance accessibility. This may be because water from public taps maybe affordable as compared to private connections implying that affordability is an important determinant of whether people would pay for improved services. Furthermore informal water markets can improve public water supply thereby enhancing social welfare of poor households (Venkatachalam, 2015).
Water consumption also influenced willingness to pay at the 5% level of significance. The marginal effect of this variable reveals that a unit increase in water used by household on a daily basis increases the likelihood of payment for services by 0.1%.This is in line with previous studies, ( Gulyani et al., 2005b;Meunier et al., 2019;Olajuyigbe & Fasakin, 2010), who observed a positive relationship between households' inclination to pay for improved water supply and per capita water consumption for domestic and productive uses.
Households where children were reported to be the primary collector of waters, were more likely to pay for water supply improvements by 58% than those households where adults had main responsibility for fetching water. This implies that concerns about children wellbeing and the potential benefit of free-up time for schooling, household chores, amongst other productive activities positively influenced the decision to pay. Our findings are congruent with previous studies (Tussupova et al., 2015).
The regression results also indicate that barriers to accessing water had a positive and significant influence at 1% level. The marginal effects show that households who experienced intermittent water supply and periods they were unable to access alternative water sources were more likely to pay for reliable water services by 34%.The result agrees with the findings of (Balana & Catacutan, 2012).
Furthermore, awareness of the importance of consuming clean water positively influenced willingness to pay. The marginal effects on water quality indicates that perception of poor water quality would increase likelihood of paying for quality water services by 20% as compared to those than those who regard the water as safe, ceteris paribus. Some of the measures undertaken by the household included boiling, use of chlorine, water filters amongst other purification practices. Several studies have shown a strong correlation between averting behavior, hygiene practices and willingness to pay for safe drinking water among rural communities (Brouwer et al., 2015;Nauges & Berg, 2009;Onjala et al., 2014b).
Similarly, the results also revealed a positive relationship between the diarrheal disease and willingness to pay. The marginal effects indicate that an increase in the frequency of diarrhea would increase the likelihood for households' willingness to pay to avert diarrhea. This finding suggests that households aware of the adverse health effects of contaminated water such as waterborne ailments such as diarrhea which would result in health expenditures on treatment of these diseases. Past studies have also found an association between water-related diseases and willingness to pay for improved water supply systems (Dhungana & Baral, 2017;Kremer, et al., 2012).
Education, income and time required to fetch water were some of the other variables which were expected to have a significant relationship with willingness to pay, though the study found that they did not influence households' decision in Baringo and Samburu counties. It was expected that education would increase level of awareness and desire for improved services (Haq et al., 2007;Mezgebo & Ewnetu, 2015). However, our results could not establish a statistically significant relationship this insignificant finding is consistent with (Gulyani et al., 2005b). Several studies have shown a correlation between the between income and payment for water services, wealthier households are more likely to pay for connection to piped water supply and other social services while poorer households rely on alternative sources such as boreholes, dams, rivers, streams and rain water (Kanyoka et al., 2008;Makwinja et al., 2019;Rotich et al., 2018). Other studies have also found an insignificant relationships associated with underreporting of actual household income (Rahman et al., 2017).
With regards to time, as an indicator of the distance households have to travel to fetch water could limit water access and consumption. According to the WHO and UNICEF, access to improved drinking water is determined by access to a source that is less than one kilometer from dwelling and requires a total fetching time of 30 minutes or less (Gulyani et al., 2005b;Nygren et al., 2016;Unicef, 2017).

Conclusion and Recommendations
Water scarcity is more pronounced in ASALs due to climate change and variability which has led to an increase in drought frequency and intensity. Accordingly, improving access to safe and affordable water for affected communities will enhance resilience of rural communities to climate variability. The results of the study indicate that despite the reliance on unreliable water supply sources, most of the households are still unwilling to pay for water supply services. An important policy implication of these results is the need to consider centralized water improvements strategies as they may be more feasible as compared to individual connections, cost-sharing and retail interventions. Therefore, establishment of safe shared/communal drinking water sources may increase the rate of returns and sustainability of water supply projects. The case study further showed that demographic characteristics, prevailing water situation such as source, quality and quantity, children's role of fetching water, water access challenges and incidences of diarrhea affected willingness to pay, which suggests that water resources management in ASALs must aim at balancing demand and climate-induced water stress. The study recommends that stakeholders and policy makers in Baringo and Samburu Counties should consider these traits in designing demand driven water supply projects. Additionally, emphasis on awareness building activities regarding water quality and the associated health benefits can generate demand for more efficient and sustainable improved water supply which would result in enhanced long-term outcomes in the future.

Conflict of Interest
The authors declare that they have no competing interests.


Assessment of Public Compliance with Development Control Regulations in Auchi, Edo State, Nigeria

The spatial structure of modern settlements is organized based on development control. The compliance of urban residents with development control regulations makes it possible for cities to be well structured for physical, aesthetic, and economic developments. The study aims to assess public compliance with development control in Auchi. A sample of 378 residents of Auchi was used in the study. The study area was divided into six strata, and samples were selected from the strata based on their population sizes. The instrument was a 5-point Likert-type option, which was administered to the respondents. The findings revealed that there was low compliance with development control standards in Auchi. There was awareness of developers on compliance but did not translate into compliance. The building coverage specified by development control regulations was grossly violated. There was a medium correlation (0.55) between education and level of non-compliance; the variability of development control non-compliance in the six quarters of Auchi was statistically significant, and the eta squared effect was also large. It was recommended that the town planning regulations be reassessed for a better practical effect; monitoring of developments to encourage compliance should be strengthened; and town planning manuals should be used to monitor and control developments.

Introduction
Physical planning over the years had evolved several strategies aimed at achieving its goals, and fundamental to these strategies is the concept of development control. Development control is simply the pattern and way by which physical or land use development is controlled (Osinbajo, 2004). In physical planning, development control regulations provide the guiding instrument. During construction, they prevent builders/ developers from deviating from the permit that has been granted them (Ogundele, Ayo, Odewumi, & Aigbe, 2011). Development control is a must for both the public and private sectors. The imposition of development control on both private and public developments is to achieve safety and healthy living and the betterment of all (Dissanayake, 1987).
Development control regulates various land uses in an urban area to ensure convenience. It optimally promotes resources to secure the most significant improvements, promote the segregation of incompatible uses, and associate compatible land uses (Ngetich, Opata, & Mulongo, 2014). Moreover, development control has been the platform on which urban planning professionals regulate and implement a design on the ground via the arts and science that tend to arrange and order living and nonliving things to achieve harmony (Ogundele et al., 2011). Mechanisms of enforcement compel developers to implement and comply with development regulations. Specific tasks during enforcement may include inspecting buildings during construction for adherence to the building standards, assessing building plans for compliance with the standards, detecting buildings without permits, and prescribing appropriate corrections for noncompliance (Boamah, 2013). In non-compliance, sanctions such as fines, stop-work orders, and demolition notices are sometimes used to enforce compliance. In Auchi, two primary legal documents are used to guide the development and enforcement of development control regulations. The legal documents are the Urban and Regional Planning Law Cap 138 LFN2004 (Act 1992) and Edo State Urban Development and Physical Planning Regulations Gazette, 2014. These tools ought to have been able to regulate the space of Auchi, which is about 123,896 persons and can be described as a mesoscale in settlement distribution in Nigeria. However, the use of development control standards has not fostered well-ordered physical development (Ahmed & Dinye, 2011). The problems of spatial disorder found in large cities like Lagos and Kano are also found in Auchi, which dispels that not much has been achieved by compliance with development control standards even at a small scale. Stressing further the apartheid of no concern in addressing development control problems at a small scale, Avogo, Wedam, & Attakora-Amaniampong (2018) claimed that developing countries wait for building collapse, flooding, and other disasters to happen before they respond. In their study conducted in a low-income estate of Madina, North-West Accra, the majority of the survey respondents were aware of building regulations, but they developed based on their resources and not regulations. Thus, the demand for total compliance to development control and building regulations among poverty-stricken developers would be an uphill task.
Jimoh, Al-Hasan, Imimole, & Ahmed (2017) worked on the contravention of development control measures in Auchi. The study established that developers contravened development control regulations in areas such as the construction of buildings without approval, exceeding plot coverage, violation of setback regulation. The absence of planning schemes and inadequate planning staff in the Auchi office accounted for these contraventions. Ogundele et al. (2011) explained that his interaction with the planning officials established such obstacles as lack of equipment and planning tools, inadequate financing, shortage of qualified staff, inefficiency in the control of development, unavailability of a medium of enlightenment, and the act of collecting bribe from developers by planning official as serious. The study recommended adequate financing of the control department and disciplining of erring staff members to address some of the challenges caused by non-compliance. Olajuyigbe & Rotowa (2011) identified some challenges in controlling development, including an unavailable urban development policy, ineffective control of development, unavailable spatial data and information, and lack of a master plan to regulate settlements growth. The study advocated for the dire evolvement of urban development policy coupled with a series of legislations and regulations to facilitate development control. The study on the problems of development control in urban centers in Kenya by Koech (2001) established that laxity in approving plans, poor policy implementation, inadequate council capacities (finances, technical and human), political interference, inadequate enforcement machinery, and lack of public awareness of the existence of planning and development control regulations were among the factors militating against development control. Osinbajo (2004) stated three significant ways the problems of development control non-compliance could arise. First, it could be a consequence of insufficient laws or inadequate development control regulations, which leaves landowners some room to do with the land as they wish. The second possibility is for two different authorities attempting to regulate the physical development of land within the same territory. The two may be working at cross-purposes, enabling individual landowners to play one against the other. The third cause of development control problems could arise from the non-enforcement of relevant laws. Omuta & Onokerhoraye (1985) stated that development control operates in two levels, the macro and micro levels. At the macro level, its primary goal is to control the subdivision of land as new sites are brought under the urban influence and use; they form an essential part of the present overall urban setting and fit into the future setting. At the micro-level, its primary goal is to regulate the development of the individual plot and structure within the subdivision (Okosun, 2000). Land subdivision regulations are used to plan at the micro level to secure socially desirable minimum development standards for the community. Eapen (2007) stressed that the primary aim of this control is to promote community development by avoiding defects in land subdivisions such as awkward shape and size of plots, narrow streets, and insufficient community services and facilities. He further claimed that development control became more important in the present context due to advancements in technology and science and increasing urbanization. The growth of urban centers has made it vital to convert more rural land into urban uses and intensify existing urban sites. It is worthy of note that cities are more shaped by the enforcement of regulations that control development instead of implementing development plans within their framework. Adedibu (1995) identified reasons why there is always resistance in development control exercise. According to Adedibu (1995), human beings are homocentric, ethnocentric, egocentric and anthropocentric. He asserted that as a result of these features, developers are often self-centered rather than pubic-centered. In other words, the tendency for people to carry out developments to satisfy their present personal needs and ego is more likely than those that will satisfy the public interest.
Non-compliance with development control regulations is a common phenomenon in Nigerian towns and cities. Fekade (2000) asserted that the primary cause of non-compliance with development control exercise is unplanned demographic factors. It involves in-migration, rural-urban drift, and high birth rate, which are signs of population growth. He explained that the challenges had been worsened by environmental degradation, social and political instability, and poor economic performance in many world developing nations. These made people move from rural to urban areas for greener pasture, social facilities, and employment. He stated that hoarding and land speculations can lead to illegal subdivisions and land fragmentation, making it difficult for the developer to comply with plot area standards. Fekade (2000) focused more on demographical factors, which measure the growth rate in the number of people that live in a particular area concerning the pattern and capacity of the habitable settlement. Rakodi (2003) stated that for compliance with development control, such factors as personnel training, public awareness, and commitment are needed. He also claimed that good governance is an essential factor that ensures compliance with development control standards. This will make possible an efficient and effective urban development control. The work of Kombe (2005) showed that people's low standards of living and continuous increase in penury promote the increase of informal developments. According to him, penury is the leading cause of non-compliance with development control standards in most third-world nations. Alnsour & Meaton (2009) asserted that compliance with development control standards varies due to the socioeconomic attributes of the housing developers. They classified the factors that affect compliance with development control standards into socioeconomic features, including awareness of the public, household size, and household income. Sarkheyli, Sharifi, Rafieian, Bemanian, & Murayama (2012) established the root causes or factors that affect compliance and then developed a model using awareness level, level of income, and economic reasons and as significant factors of non-compliance. The study revealed that the most crucial factors for non-compliance with control regulations are level of awareness, income level, and economic reasons.
Baffour Awuah & Hammond (2014) examined ignorance or lack of public awareness concerning the profit of compliance with development control regulations and the destructive effects of non-compliance, using information from a community in Ghana. The result of the study discredited the hypothesis that noncompliance with development control regulations was found generally to be intentional in the study area. It revealed that the high level of compliance among the elites was because the approval documents can serve as collateral for obtaining loans. Moreover, the research proved that development regulations and policies should entail effective strategies to actualize a high level of compliance. Vivan, Kyom, & Balasom (2013) made a significant observation that development control exercise should not be oriented only towards revenue generation, but its proceeds should be channeled towards improving the physical conditions of settlements.
Developing countries' development control is partial because the law exempts some violators because of their status. Many un-awesome developments have been ignored because some politicians have the status of a sacred cow that cannot be touched. This challenge was amply demonstrated by Kio-Lawson, Duru Marcus, John, & Eebee (2016) in four capital cities of the Niger Delta Region in Nigeria. Do the following questions demand an explanation in this study: (1) What are the reasons for non-compliance with development control in Auchi? (2) Is there variability in compliance with development control among the quarters in Auchi? (3) what measures can be put in place to address the non-compliance with development control regulations? The study will address the issues related to non-compliance with development control regulations using a survey design. .

Study Area
The study area is Auchi, the administrative headquarters of Etsako West Local Government Area of Edo State, Nigeria. It lies between latitudes 7 0 14' North and 7 0 34' North of the equator and longitudes 6 0 14' East and 6 0 43' East of the Greenwich Meridian. Auchi is bounded on the East by South Ibie, on the North-East by Jattu, on the North by Ayua, Iyuku, and Imeke, and on the North West by Ikpeshi Ihievbe Ogben, on the South Ivbiaro and Warrake and the South-East by Aviele. Figure 1 is Auchi showing its quarters.

Data
The target population for this study is property owners in the six significant quarters in Auchi. Google earth was used to determine the number of houses in the different strata because it captures the number of houses. The distribution is as follows: Akpekpe (1151), Iyekhei (1093), Utsogun (1035), Igbei (920), Abotse (805) and GRA (748). The total number of houses is 5,752.

Sample Size
In determining the sample size for this study, the sample size formulae of the Institute of Food and Agricultural Sciences, University of Florida, by Israel (2008) was adopted. The computed sample size is 378. The sample sizes for the different strata were based on the different number of houses in them.

Sampling Technique and Administration
Stratified random sampling was used to select respondents in each of the six quarters in Auchi, including Igbei, Akpekpe, Iyekhai, Abotse Utsogun, and GRA. This is because the elements exist in the spatial framework. Questionnaires were administered to landlords or caretakers, and six trained field assistants were used to administer the questionnaires. A respondent was interviewed in every 5 th house.

Method of Data Analysis
The data collected for this research were subjected to descriptive and inferential statistical analyses. Tables of frequencies and percentages were used to analyse the data obtained from the field. Spearman correlation was used to test the relationship between the level of awareness of residents to development control and compliance; and ANOVA was used to test the variability of compliance among the stratified quarters in Auchi. .

Reasons for Non-compliance
The reasons for non-compliance were based on the conditions that existed that were perceived by the respondents. The income earned by urban residents has been adduced by many researchers as an essential variable influencing non-compliance with development control (Alnsour & Meaton, 2009). Table 1 presents the views of respondents. About 2.1 percent of the respondents earned less than N20,000.00 a month. The majority of the respondents claimed that they earned between N20,001.00 and N60,000.00 every month. The other categories of income are indicated in Table 1. Judging by these relatively low levels of income, meeting the requirements of compliance with development control regulations may be challenging. The low-income level of some developers was confirmed by Avogo et al. (2018) as a potential factor in non-compliance.

Approved Building Plans of Respondents
The possession of an approved building plan is a significant indicator of a developer's compliance with development control. On the aggregate, 31.5 percent had approved building plans, while 68.5 did not have approved building plans. This indicates a high level of non-compliance because building plans are needed and used during construction and for ownership purposes. Table 2 shows how the various quarters in Auchi fared in terms of possession of building plans. The absence of approved building plans means that such developers built out of control of town planning regulations. The study confirmed the assertion of Jimoh et al. (2017) that the lack of approved building plans by many developers is an essential aspect of non-compliance in Auchi. The absence of approval plans may be due to the high cost of processing as advanced by some experts like Balogun, Adeyewa, Balogun, & Morakinyo (2011).

Awareness of Respondents on Development Control
An essential prerequisite for the compliance of residents with development control practice is the issue of awareness. Awareness of development control counts if residents of a settlement are to comply or not with development control. Table 3 indicates residents' awareness of development control practice in Auchi. On an aggregate basis, 60.6 percent of the sample agreed that they knew development control practice in Auchi. Based on disaggregation, it is in the GRA that the highest number of aware people were found, which is 20.9 percent of the total respondents. In the GRA, nearly all the residents, that is, 97.9 percent of the respondents, claimed that they were aware of development control, and the quarters of least awareness was Igbei (7.9%). The awareness levels of the other quarters are shown in Table 3. Many researchers confirmed that many developers are aware of development control regulations, but they deliberately do not follow them because of their self-interest (Adedibu, 1995). However, Sarkheyli et al. (2012) found awareness level on the part of developers as a decisive factor in non-compliance.

Monitoring of Development
A vital aspect of compliance with development control is the monitoring of developments. The respondents were asked if they have experienced monitoring of developments by Physical Planning and Urban Development officials. Table 4 indicates their responses. About 69.0 percent of the respondents said that they have witnessed it. On a disaggregated basis, Akpekpe had 12.9 percent followed by GRA with 12.2 percent of the respondents who experienced monitoring during development. On a relative basis, 46 out of the 49 (94.0%) respondents claimed that developments were monitored in GRA. The least monitored quarter was Igbei, which is 8.4 percent.
The monitoring of development ought to be systematic at the foundation, lintel, and roofing levels. Monitoring ought to reduce non-compliance, but it is not so because of the ulterior motive of planning officials in charge of monitoring. There is a growing consciousness among the public that monitoring is mainly used to amass wealth by some planning officials (see Ogundele et al., 2011). This connivance encourages non-compliance because non-complying developers have been officially endorsed to go along with whatever things they are doing.

Non-Compliance with Development Control
The survey's thrust is on compliance with development control by developers in Auchi. The respondents were presented with various aspects of standards to evaluate, and the results are shown in Table 5. After the general considerations of the extent of compliance with development control, a sub topical analysis of aspects of development control at especially micro-level is followed. Table 5 shows the variation of the degree of compliance with development control at the quarters of Auchi. About 54.4 percent of the developments did not comply with development control on cumulative basis. In terms of disaggregation, the variation in compliance is low except in the GRA, where noncompliance is not a marked characteristic. The level of compliance of developers with development control was relatively low, as indicated in the quarters. There was no stratum of the study where compliance was total.

Setbacks of Buildings
Setbacks measure the distance between property boundaries from either the road or other boundaries. These can be used to indicate part of spatial density, which is essential in operationalizing development control. The interviewees were asked to perceive these in where they live in. Table 6 indicates the setbacks. However, these responses constitute a nonexpert view. The respondents believed that the setbacks are adequate. On an aggregate basis, 75.9 percent affirmed that there were adequate setbacks. In terms of variability, Akpekpe (15.6%) and Iyekhei (15.3%) experienced the highest degree of setbacks, and the lowest affirmation of setbacks was found in Igbei (10.4%), and Aibotse (10.4%). Variability in setbacks was also observed by Ngetich, Opata, and Mulongo (2016) in the Kenyan city of Eldoret.

Setback from Road to Building
The setback of the building from the road to the boundary line is also known as the front setback. This setback is very important in the operationalization of development control. It helps in shielding the residents of the house from vehicular accidents. The estimation of the length of the setbacks are in Table  7. The minimum setback from the house to the road is 5.0 meters, and in the survey, about 83.8 percent of the houses had less than the minimum setback. Thus, the regulation on minimum road setback is seriously violated in Auchi. However, only in the GRA that a substantial number of houses had above the minimum setback of 5.0 meters.

Right Set-back
Next, the interviewers estimated the right setbacks of building in the different strata. The observed setbacks are shown the Table 8. The minimum side setback operationalized by Edo State Government is 2.0m. From the sample, about 76.5 percent of the buildings fell short of this standard. The effect of this deficiency is that most of the buildings seem to be joined together and do not have readily identifiable space separating them.
Regarding disaggregation, the setbacks in the quarters are shallow except the GRA that is excluded from these categories. Thus, in terms of side setbacks, the level of compliance in Auchi is about 25.5 percent, which is relatively low.

Building Coverage on Plot
Building coverage on a plot is a measure of urban density and on how spaces are covered. Urban occupancy of buildings is significant in a city's level of congestion and liveability. Table 9 describes how individual buildings occupy plots. In terms of aggregate basis, about 73.6 percent of the buildings occupied more than 50 percent of their plots. In the town planning regulation of Edo State 2014, the maximum coverage of buildings is 45 percent. If this is followed, it means about 90 percent of the plots were over-built in Auchi. This implies a gross violation of space standards. It is only in the GRA that appreciable compliance was achieved inbuilding coverage on plots.

Correlation of Awareness with Non-Compliance
The link between awareness and compliance with development control was tested. The nonparametric correlation of Spearman (rho) was 0.55, indicating an average positive correlation between awareness and compliance with development control. The coefficient of determination is 0.55 x 0.55(0.3025) 30.25%, which indicates the extent to compliance with development control can be explained with awareness. Table 10 showed the coefficient of correlation and was significant at 0.001 alpha level. Awareness is not a strong determinant of compliance with development control regulation in Auchi.

Variability of Building Coverage on Plots in Quarters
A one-way between-groups analysis of variance was conducted to find the variation of building coverage area in the six strata in Auchi. There was a statistically significant difference at the p < .05 level in the building areas among the strata: F(5,377) = 66.791, p=.001 (Table 11). To confirm whether this significance has any substantive, practical value, the eta squared statistic (i.e., a statistic that measures the magnitude and practical meaning of significance) was calculated.
Eta squared = sum of squares between groups/Total sum of squares = 262.248/554.370 = 0.47 The value of 0.47 indicates a substantial effect. Thus, there is really substantive difference in the variability of building coverage among the quarters of Auchi.

Conclusion
The first major conclusion is that development control compliance among the residents of Auchi is generally weak, except at the GRA. Although awareness of the residents on development control was reasonably high, this has not been translated into high compliance. The plot sizes were small, and building coverage was high, far above the 45 percent specified by Edo State Government. Thus, there is the need to address these lapses in compliance with development control in Auchi in order to channel the physical development of Auchi as it grows appropriately.
The town planning regulations in Edo State need to be reassessed to reflect reality because certain aspects of the regulations cannot be implemented. For example, the building coverage on a maximum of 45.0 percent on the plot is impracticable. Urban land is expensive, and no developer will buy a plot at an exorbitant rate and develop at a very low density. This provision of approval is presently grossly trivialized.
The prospective developers should be educated on the essential fact that town planning regulations on development control are for convenience and economic growth. Practical issues should be introduced into such enlightenment on development control that touches on the residents' compliance emotions. Government should regulate the design of layouts as a starting point for regulating space.
The developers have to be monitored and supervised to comply with regulations. The monitoring of development has not been regular and systematic as was observed in Auchi. The use of red-letter 'X' to mark contravening developments has not much bearing on compliance. There is a need for the provision of vehicles, equipment, and staffing for monitoring development. Also, the development control unit staff should have a manual for controlling development and be adequately trained to do so. When these are done, urban planning will not be seen as a corrupt and opportunistic practice but rather a practice addressing Nigerian cities' physical developmental and environmental ills.


s2fieldsofstudy: Economics Business

text:
Consumer demographics and the attitude towards mutual fund

Indian mutual fund industry is in upward trend as the assets are increasing under management of various fund houses. It is found that mutual investment is less risky than investments in stocks which are therefore a safer option for investors who avoid risk. It has been observes from the market that most of the investors ae not aware of the benefits of mutual funds. This research paper has given emphasis on the awareness level of respondents towards mutual fund and also an attempt has made to identify various variables responsible for investors to invest in mutual funds. Findings of the research will help the companies to identify the areas of improvement required to create more awareness among mutual fund investors. A sample size of 250 comprising of different profile investors considered for the survey and for that judgment sampling procedure followed. The sixteen variables considered for the study that influences the attitude towards mutual fund has taken and analyzed with the help of factor analysis through SPSS and four factors generated which are risk, belief, terminal value and self-concept. These ae the few factors like risk, belief, terminal value and self-concept which has considered by the customers during their investment in mutual funds.

Introduction
Investment is like giving sacrifice of present value amount for the uncertain future reward. Investment is an activity that is engaged in by people who have savings. Savings directed into investment. With the savings invested in various options available to the people, the money act as the driver for the growth of the country. Indian financial scene too presents a plethora of avenues to the investors. The main objective of the investor is to minimize the risk and maximize the return. Mutual funds represent the most appropriate investment opportunity for most investors.
As financial markets become more sophisticated and complex, investors need a financial intermediary who provides the required knowledge and professional expertise on successful investing. Here mutual funds act as an intermediary. In a modern economy financial institutions are the intermediaries between lenders and borrowers. Financial markets are the backbone of an economic system and aid collection of scarce capital across the productive sectors of the economy. The Indian financial system has always had a well-defined institutional structure. A Mutual fund is a trust that pools the savings of a number of investors' who share a common financial goal. The money collected from investors' is invested in capital market instrument such as shares, debentures and other securities. The income earned through these investments and the capital appreciations realized are shared by its unit's holder in proportion to the number of units owned by them. Thus a Mutual Fund is the most suitable investment to the common man as it offers an opportunity, to invest in a diversified, professionally managed basket of securities at relatively low cost. The Mutual Fund Industry is a fast growing sector of the Indian Financial Markets. They have become major vehicle for mobilization of savings, especially from the small and household savers for investment in the capital market. Mutual Funds entered the Indian Capital Market in 1964 with a view to provide the benefit of diversification of risk, assured returns, and professional management. Mutual Fund industries have already entered into a world of exciting innovative products. These products are now tailor made to suit specific needs of investors. Intensified competition and involvement of private players in the race of MFs have forced professional managers to bring innovation in mutual funds. Thus, mutual funds industry has moved from offering a handful of schemes like equity, debt or balanced funds to liquid, money market, sector specific funds, index funds and gilt edged funds.

Hypothesis
The Indian psychology of investment has changed in dramatic way where majority of customers are planning for a short term investments with risk for better return. Mutual fund investment is one of those areas on investment where the return is varying with comparison to other investments. Hypothesis can be formulated to study the relationship of investors' age and income with the amount of mutual fund investment. Hypothesis-I: 1. H0 = Investors age affects the selection of mutual fund as investment 2. H1 = Investors age does not affect the selection of mutual fund as investment Hypothesis-II: 1. H0 = Investors income affects the selection of mutual fund as investment 2. H1 = Investors income does not affect the selection of mutual fund as investment Objectives 1. To study the profile of customers preferring mutual funds 2. To know the variables considered by the customer to select mutual funds 3. To study relationship between demographic variables of investors with preference of mutual funds

Methodology (Research Design)
The study is basically an analytical study based on primary research as well as also related to the analysis of the attitude of investors' ' towards mutual funds. In order to conduct this study, 250 investors' in Bhubaneswar region have been selected by sampling method and mainly questionnaire has been used for collecting the data. The data collection method used to obtain the desired information from primary sources has been through direct interview and questionnaire has been used as an instrument. Chi-Square test has been used for testing the significance of the differences between theory and experiment. The deviation of the experiment from the theory has analyzed through the observed data and expected data. Factor analysis conducted with the help of sixteen statements by using Like t scale.

Literature Review
Singh and Jha (2009) examined that consumers would prefer mutual fund on the basis of return scheme, liquidity and safety and they have limited knowledge about the systematic investment plan. Desigan et al. (2006) explained in their paper that women investors are mostly indecisive in investing mutual funds because of the limited knowledge about the protection in investment and they are also having limited knowledge on investment procedures, market fluctuations, investment risks, investment assessment and grievances.
Sahadevan and Thiripalraju (1997) explained the performance of private sector funds has gained highest mileage in the market during the period of comparison which shows that performance of a fund is never associated with its size. Gupta and Sehgal (1998), has examined the performance in terms of fund diversification and consistency of performance. They also explained the good performance of diversified portfolio of mutual fund industry which has supported by the consistence performance. Ippolito (1992) observed that investors are ready to invest in those funds or schemes which are associated with good rewards and are performing better over the worst. Goetzman (1997) explained that investor's psychology is the major factor in mutual fund selection for investment or withdraw from the fund. Gupta (1994) observed that majority household investor has given more preferences to invest in mutual funds and other available financial assets. Shanmugham (2000) conducted a survey to find out the information source required by the investor which explained that the investors are controlled by economical, sociological and psychological factors for investment decisions. Ippolito (1992) found that the selection of different schemes by investors is based on past performance of the funds and money flows into winning funds than the flow out of losing funds. Shiller (1993) reported that many investors do not have data analysis and interpretation skills. This is because, data from the market supports the merits of index investing, passive investors are more likely to base their investment choices on information received from objective or scientific sources. Phillip (1995) reported that there is a change in financial decision-making and investor behaviour as a result of participating in investor education programmes sponsored by employees.
Berhein and Garnette (1996) observed that an eefective national campaign can able to promote savings through education and information and could have a measurable impact on financial behavior of investors. Jambodekar (1996) studied among all other investments that investors preferred Income Schemes and Open Ended Schemes than Growth Schemes and Close Ended Schemes during the prevalent market conditions. Sikidar and Singh (1996) observed that the salaried and self-employed employees are the major investors in mutual funds primarily to get tax concessions. Shanmugham (2000) examined that among the various factors considered by the investors but psychological and sociological factors dominates the economic factors in share investment decisions. Chakarabarti and Rungta (2000) examined that brand image factor cannot be easily captured by computable performance measures but it influences the investor's perception and his fund or scheme selection. Hirshleifer (2001) in his research work identified different types of cognitive errors that investors make like self-deception and it occurs because people think they are better than they really are. Another cognitive error is heuristic simplification, which occurs because of limited attention, memory and processing capabilities. Finally disposition effect is another cognitive error that individuals are prone to sell their winners too quickly and hold on their losers too long.
Walia and Kiran (2009) studied to identify the critical gaps in existing framework of mutual funds and further extend the research on need of redesigning existing mutual fund services by acknowledging Investor Oriented Service Quality Arrangements (IOSQA) in order to comprehend investor's behavior while introducing any financial innovations. Jain (2012) concluded that common investors invest their savings into the different assets as they are not very much aware about the mutual funds. Rathnamani (2013) observed that most investors preferred to invest in mutual fund to get high return with low level of risk, safety and liquidity. Dhume and Ramesh (2011) explained that funds of all sector have performed better in the market except infrastructure funds. Prajapati and Patel (2012) examined the performance of mutual funds by using the relative performance index and risk-return analysis.

Analysis and Findings
Demographic Profile: This study mostly considered the respondent's whose income is above Rs. 25 are coming under more than 45. The people who are very much aware of mutual funds are taking into consideration because the questions can be solved by the highly aware respondents only. The above information is available in the exhibit-1 available in annexure. The exhibit-2 in annexure explains the positive correlation between age and attitude of respondents towards the mutual funds. As the calculated value is less than tabulated value hence the null hypothesis is accepted at 5% level of significance. It is concluded that there is no association between age and the attitude towards mutual funds.
In exhibit-3 there is the association between gender and attitude towards the mutual funds. The calculated value is greater than tabulated value of chi-square and hence the null hypothesis is rejected at 5% level of significance which implies the association between gender and the attitude towards mutual funds. About 86 male respondents and 24 female respondents which shows there is a highest positive attitude towards the mutual funds in male against the female. The calculated value of is greater than tabulated value and the null hypothesis is rejected at 5% level of significance which implies there is association between income and the attitude towards mutual funds. The exhibit-4 in annexure explains that there is a highest positive attitude towards the mutual funds having monthly income above Rs.50, 000 against the others. From the exhibit-5 the calculated value is greater than tabulated value of chi-square and the null hypothesis is rejected at 5% level of significance which implies there is association between level of education and the attitude towards mutual funds and hence there exist a highest positive attitude towards the mutual funds among the graduate respondents against the others. From the exhibit-6 the calculated value is less than tabulated value and the null hypothesis is accepted at 5% level of significance which implies there is no association between occupation and the attitude towards mutual funds and hence there exist a highest positive attitude towards the mutual funds among the respondents whose occupation is salaried employee against the others as highest percentage of respondents were salaried employee.
Factor Analysis: This data has Cronbach's Alpha value of 0.674 which is more significant for the reliability of data. The study has been made to know the preference and perception of customers towards the mutual funds offered by the different companies. Sixteen statements are generated for measuring respondents' opinion on a 5-point Likert scale for preferring a particular brand of mutual fund. The exhibit-5 in annexure measures the data adequacy for the factor analysis. This factor analysis measure for sampling adequacy is greater than 0.7 (0.723) which is mediocre.
The exhibit-6 in annexure represents the grouping of factors. The total factor loadings for factor 1(F1) is 3.55 and for factor 2(F2) is 4.19 and for factor 3(F3) is 2.35 and for factor 4(F4) is 1.40. The exhibit-10 in annexure depicts the variables under each of the three desired factors. The first factor identified with risk associated with the mutual fund company which has been grouped under F1 and termed as "Risk" factor. The second factor explains the pat performance and dividend history of the mutual fund company. The second factor F2 is termed as "Belief" factor. The third factor F3 explains the rating and sustainability of the mutual fund in market in future. The factor F3 is termed as "Terminal Value" factor. The fourth factor F4 explains the individual risk taking capacity and prevailed market condition and termed as "Selfconcept". The priority given by the respondents depicted through the ranking of factors which is shown in exhibit-7 in annexure. Respondents have given high priority to the factor F2 "Belief" followed by factor F1 "Risk", followed by factor F3 "Terminal Value" and followed by factor F4 "Self-concept".     Sig. .000

Concluding Observation
The study has given a vague idea about the attitude of respondents towards mutual fund. As majority of customers are unable to take decisions for mutual fund investments. It has observed that the awareness level of respondents towards mutual fund is very low. From the study it was observed that the demographic variables like gender, income and level of education have significant influence upon the investors' attitude towards mutual funds whereas the other two demographic variables like age and occupation do not have influence on the attitude of investors' towards mutual funds. As far as the benefits provided by mutual funds are concerned less risk investments and most believed investments have been perceived to be most attractive by the invertors' followed by terminal value and self-concept of the investments. Apart from the above, in India there is a lot of scope for the growth of mutual fund companies provided that the funds satisfy everybody's needs and sharp improvements in service standards and disclosure.

Limitations and Directions for Future Research
Sample data is limited to Bhubaneswar territory and prediction is on the basis of Bhubaneswar territory only. However consumer buying is a complex process in which number of factors like economic factors, social status and psychographic factors influence the buying of the consumer. The changing demographic profile of the population like education, income, size of family are necessary by what's going to be changed in days to come regarding understanding psychographics of customers as to how they feel, assume or behave.


Ensuring sustainable rural development

Working out new management decisions for ensuring rural areas development, standards of life quality and livelihoods of the population is one of the priorities of state impact on the production and social development of rural areas. The study presents the principal directions of theoretical and methodological background for assessing and forecasting the effective development of territorial socio-economic systems of rural areas. The authors outline the target of the production and social infrastructure functioning, local government and civil society institutions activities, and social responsibility of business. As a tool for assessing rural territories sustainable development, the authors propose the following approaches: indicative, institutional, economic-legal, functional, system-functional, synergistic, resource-functional, and criterial. The indicative management of rural development is a system of relations based on indicators of innovative, investment and motivational activities of agriculture and its social environment.

Introduction
Ensuring rural areas sustainable socio-economic development, high standards of living is possible provided that an effective agricultural policy and institutional reforms in the agricultural sector are carried out.
The stability of rural development trends in the long-term prospects requires new models to be implemented in order to organize and manage agricultural production, which is based on introspecting, comprehensive analyzing and assessing organizational and economic potential effectiveness.
The purpose of the study is to work out theoretical and methodological background of assessing and forecasting the effective development of territorial socio-economic systems in order to justify management decisions in a particular agricultural territory.
The scientific hypothesis of the study presumes that ensuring sustainable rural development is impossible without improving theoretical and methodological approaches to studying trends in the rural territories economic development (study the components of the territorial economic and spatial development) and to develop conceptual vectors, indicators of economic and spatial development.
The results of the study are obtained from using such general scientific methods as the comparative, system, functional, and time-series analysis, the index method, and the project management approach.

The study results
The fundamental principles of the strategies for rural territories socio-economic development formulated in the work are largely determined by particular characteristics of the territory, the sectorial structure nature of agricultural production and the approaches used in organizing and managing the development efficiency of rural territories, resource base, etc.
Key approaches to solving the problems of rural territories social and economic development, development management methods, incentive measures determine the spatial, production, organizational, technological and managerial aspects of choosing development strategy options.
The choice of areas for developing the territory is determined by the results of analyzing the territory organizational and economic potential and the development opportunities identified in the work.
Studying the rural territories development potential is of strategic importance, since the result is to understand possibilities and proposed ways of the territory socio-economic development, to select the most effective mechanisms for organizing the management of the agricultural economy, and rural infrastructure.
To use the rural areas potential effectively, it is necessary to ensure sustainable development keynote on the basis of using their own resources and competitive advantages [1].
Strategically important for the state is to strengthen the effectiveness of territorial mechanisms aimed at providing conditions for self-regulation of the agricultural economy, organizational and economic potential of each rural territory.
The economic and spatial development of municipalities is complicated by the fact that, under the influence of technological progress, they have significantly less financial, organizational and managerial capabilities not only to resist the negative consequences, but also to use the strengths of economic and spatial development.
These problems determine the necessity to study theoretical, methodological and applied aspects of the scientific problem as regards developing municipal economic and spatial formations, concentrating mainly on rural settlements, which presupposes the following priority areas [2]:  growth of economically significant results and economic activity in the context of fast moving production relations in the territory;  preserving and improving qualitative characteristics of the technical basis, the degree of its development, and personnel potential;  balanced development of relations of the settlement level. Taking into account the necessity to work out a clear algorithm sequence of actions and increase the validity of managerial decisions, the entities when acting and making decisions should anticipate and consider many factors of external and internal environment of the territories [3].
Implementing the strategy for the territory sustainable development provides for a number of necessary conditions: forming economic toolkit for sustainable development; legal support, financing activities, considering innovative aspects of the agricultural economy development, organizing management, coordination and control.
Achieving a favorable situation in implementing conditions of a decent life quality and health of the rural population is possible only with coordinated interactions of government, business and public.
The initial stage in implementing the strategic approach to organizing and managing the rural territories socio-economic development is to analyze the territories economic potential, which makes it possible to determine its potential capabilities, considering which the management decision becomes more reasonable [3].
Analysis of the territories economic potential as a way of determining potential opportunities, considering which the management decision becomes more justified, is considered to be the initial stage of implementing the strategic approach in organizing and managing the rural territories socioeconomic development [3].
The economic potential of rural development should be considered in its entirety. Its assessment should include:  a set of resources, means and production items (resource approach);  assessing profitability, degree of business activity, assessing financial stability (financial approach);  assessing corporate culture, level of education and other factors of the internal environment. As a tool for obtaining information in order to make reasonable strategic management decisions in the field of territories sustainable development, the authors suggest working out a program approach and an economic-mathematical apparatus [4].
A comprehensive methodology for multifactor research of the rural territory socio-economic development is based on the main assessing indicators, the constituent elements of organizational and economic potential, social infrastructure, which makes it possible to monitor the competitiveness of rural areas and forecasting the prospects for their development.
The choice of indicators for the methodology of assessing the rural entities socio-economic development is determined by their ability to reflect the following criteria:  the specific character of the object in the region's economic space, with its significant economic and spatial characteristics;  developing rural territories as a specific object in regional economic space that has certain economic and spatial characteristics;  developing rural territories as a space for the agrarian economy functioning and a territory for the rural population concentration;  assessing the dynamics of indicators should provide conclusions about constructive and destructive trends in the economic space development. Various approaches can be used as assessment tools: indicative, institutional, economic-legal, functional, system-functional, synergetic, resource-functional, and program-targeted methods.
To improve the program-targeted regulation of developing the agro-industrial complex and rural territories, the following steps are necessary [5]: a) analyzing and assessing the current organizationaleconomic potential and forecasting organizational-economic, and organizational-managerial impacts on the level of its development; b) identifying priority goals in developing individual elements of potential, calculating the parameters of the necessary resource support, methods and timing of their achievement; c) applying variable approaches in order to achieve program goals (choosing the best option); d) substantiating financial security of program goals implementation; e) assessing the effectiveness of the implemented territorial programs.
The need to study systematization of factors, criteria, and indicators of changes in rural areas from scientific and practical point of view is determined by lack of sufficient formulations that reveal the content of the methods and orientation of sustainable growth strategies, principles of forming and implementing organizational and economic potential of their development.
Classification of factors is necessary to determine the most characteristic technical and economic relationships, which are the basis for factor forecasting the impact of changes in the resulting and indicative indicators while working out forms, methods and tools for managing the development of the system.
In order to build a model for assessing the level of rural territories development, in addition to the factors of socio-economic development, vectors and conditions for ensuring the territory economic growth should be determined, which is possible as a result of the current diagnosis of the state and adjustment of the processes for realizing the tasks of ensuring external and internal competitiveness.
At the heart of the methodology for assessing the rural development organizational and economic potential, a structurally oriented approach to justifying and selecting development alternatives is determined.
The main factors, which affect the change in the organizational and economic potential of the rural territories development in the framework of the systematic analysis establish the most characteristic technical-economic relationships not only to monitor the factors influence on changing the resulting indicators of rural territories, but also to develop forms, methods and tools of the current and future managing "prosperous", "medium" and "lagging" rural areas.
The problem-oriented analysis of the rural territories development makes it possible to determine a set of measures for effective rational distribution and efficient use of rural resources; interaction of local governments, employers, vocational schools; for effective functioning of social facilities and industrial infrastructure; for developing all types and forms of organizing and managing the territory economic activity and mutually beneficial cooperation of the population, and the business environment [5].
The comprehensive approach to forecasting the rural territory development is based on using a system of methods that take into account the specifics of the spatial, production, organizationaltechnological and managerial aspects of the situation in a specific rural territory [4].
The optimal scenario for changes in the organizational-economic potential of rural territories is based on forecasting assessment of rural territories social infrastructure development (production and social).
The choice of strategic vectors for developing the organizational-economic potential of rural territories is presented in the form of a five-block model: natural-resource, material and technical, labor, financial and economic, information and innovation elements.
The functional elements of the proposed technology can be considered in the logic of the analytical actions algorithm to assess the influence of factors on the level of changes in the organizational and economic potential of rural areas.
Analytical studies of rural territories in the framework of the methodological approach used in the work make it possible to assess the potential and priority sectors for its development, and to establish resource opportunities and limitations of the rural territory of a separate climatic zone.
Approaches to forming a scheme of organizational and economic potential differentiate the system of assessing indicators, and in some cases, specify it. The indicative approach to assessing the development potential of territories includes the following types of territories development potentials:  natural-resource potential (amount of forests, mining, fuel and energy complex);  ecological potential (environmental protection costs, forest reproduction);  socio-demographic potential (population, birth rate, mortality rate);  economic potential (number of enterprises and organizations, number of small enterprises, volume of investments into capital assets);  labor potential (labor force; level of employment; level of labor costs);  production potential (average annual value of capital assets, the degree of deterioration of capital assets, output);  agricultural potential (crop production area; cattle stock pig stock);  recreational potential (number of hotels; catering turnover; number of sports facilities);  information potential (the number of Internet subscribers per 100 people; the volume of communication services per 1 person);  organizational capacity (number of public servants and local authorities; number of executive bodies);  innovational potential (innovative activity of organizations; costs of technological innovations, the volume of innovative goods, works and services). The methodology of indicative managing rural development presents a logical scheme of managerial activity, which includes a set of goals, indicators of their achievement, methods and tools. [5].
The present-day evolutionary concept of indicative management in the current context should be formed by combining the principles of three management types -state, market and indicative management with their specific approaches, principles, tools and methods [6].
All external changes and internal processes of rural development in accordance with S.G.Chernova should be considered not as random situations, but as interrelated elements of general economic evolution [6].
The indicative management of rural development is a system of relations based on indicators of innovative, investment and motivational activities of agriculture and its social environment [5].
The component analysis with an expanded set of indicators and an integrated assessment of their territorial comparison by natural-climatic zones in the spatial-temporal dynamics makes it possible to study the processes of level interaction using economic-mathematical tools.
Prospective characteristics of the territory development should be determined on the basis of modeling the recommended generalizing indicative indicators of the economic, social and cognitive components [5].
Under the influence of a large number of negative environmental factors that create problems for effective development, the role of government will increase as a basis for ensuring the stability of the development of the socio-economic system and improving the population living standards.
On the basis of generalizing the existing approaches, the following groups of interaction development factors are distinguished: formative, stimulating, and providing ones.
The historically established nature of relations between the entities, the legal framework, regulation of law enforcement, traditions of resolving conflicts in business, the prevailing types of behavior in citizens' economic activities, levels of political culture are the formative factors of the territorial development of the entities interaction and contribute to further development.
The stimulating factors of development (favorable conditions that accelerate the development of subjects' interaction) are active participation of public associations of entrepreneurs and local communities in creating and developing a regional encouragement infrastructure, favorable institutional environment, special economic zones.
The providing factors are considered as special conditions necessary for maintaining a successfully functioning system of entities interaction: support infrastructure (the operation of information portals on the principle of "one window", etc.), lending institutions' and insurance company's activities [7].
The process of rural territories socio-economic development is considered as a balanced system of interaction between the state and the subject in political, economic, social and institutional aspects to achieve strategic goals in the context of effective parity functioning of interregional relations.
In order to regulate the agrarian economy of the Russian Federation effectively, the state must create an effective system for developing indicators [5].
In our opinion, it is objectively necessary to introduce a management system on the basis of diversifying goals and priorities for the rural territory functioning as a socio-economic system, which provides an increase in the socio-economic development effectiveness.