Economic development helps in the creation of better quality of products and services at cheaper prices. D.W. Cheek, in International Encyclopedia of the Social & Behavioral Sciences, 2001. Thus with the increase in capital accumulation in such countries, the supply of other co-operant factors should be increased so as to enhance the capital absorption capacity of such countries. As per World Development Report, 1983, whereas about 45 to 66 per cent of the work force of developed countries was employed in the tertiary sector but India could absorb only 18 per cent of the total work force in this sector. Prof. A.K. By Lisa N. Sacco* On May 31, 2020, President Donald Trump announced via Twitter that the United States will be. T.W. Finally, social system has much impact on the economic phenomenon of the country. Thus in order to attain economic development at a suitable rate, the Government of the country should make a choice of suitable investment criteria for the betterment of the economy. But sometimes he parks at the side of the road and asks me to wait a few minutes. Countries like former U.S.S.R. and even U.S.A. and West Germany have achieved a rapid development through the adoption of economic planning. A whole hearted effort should be made to utilise its available limited resources in a most efficient and dynamic manner to its maximum extent. – from £6.99. Underdeveloped countries are facing peculiar problem in respect of adopting modern and latest technology. The following are economic factors affecting development. During the early years of modern regional science it attracted the attention of two more Nobel Laureates in Economics. Stressing a multidisciplinary and global perspective, she wrote on agriculture, population growth, informal work, rural–urban migration, polygamy, property rights, and urban employment. G. Summerfield, in International Encyclopedia of the Social & Behavioral Sciences, 2001. Physical labour and Human skill. During the early years of modern regional science it attracted the attention of two more Nobel Laureates in Economics. In order to arouse such peoples’ desire, people of the country must be certain and well assured about the achievement of economic development: If the development strategy of the country is to be efficacious then it should be preceded by a proper economic organisation promoting such development and not hindering it any way. Keep in mind that Rome had over one million inhabitants. Dr. Rajiv Kumar, a great Indian economist, Vice Chairman of NITI, the body in charge of restructuring the Indian economic machine whose chairman is Prime Minister N. Modi carried out the task assigned to him by the PM more than brilliantly. Prof. Lewis has rightly observed, “No nation is so poor that it could not save 12 per cent of its national income if it wanted to, poverty has never prevented nations from launching upon wars or from wasting their substance in other ways.”. The countries, which are rich in natural resources have more scope for high economic growth. Following are some of important economic and non-economic factors determining the pace of economic development in a country: Population is considered as an important determinant of economic growth. Moreover, in order to implement any developmental projects to the fullest extent and also to restrict the leakages involved in it, peoples’ participation and public co-operation are considered very important, especially in these under-developed countries. Non-economic factors refer to socio-political factors or even religious factors. Thus to attain a high level of economic development, the under-developed countries should try to achieve technological progress at a quicker pace. Different disciplinary paradigms provide a first basis for classifying major approaches to the studies of entrepreneurship and management. Vicious circle of poverty is considered as one of the major constraints or obstacles to the path of economic development of the underdeveloped countries. Moreover, Easterlin argued that population pressure may favourably affect individual motivation and this may again lead to changes in production techniques. Disclaimer Copyright, Share Your Knowledge
Normally, the rate of capital formation in underdeveloped countries is very poor. Thus in order to achieve fast economic progress, an underdeveloped country must attempt to introduce a rational reorganisation of its entire economy. Economic development of a country also demands existence of a strong, honest, efficient and competent administrative machinery for the successful implementation of government policies and programmes for development. Free market economists, such as Milton Friedman argue the openeness of an economy is important. Accordingly, higher rate of population growth can put serious hurdles on the path of economic development Moreover, growth of population at a higher rate usually eat up all the benefits of economic development leading to a slow growth of per capita income. Jacob Viner has rightly observed, “Population increase hovers like a menacing cloud over all poor countries.”. If the countries are rich in natural resources and adopted modern technology for its utilization, then they can attain higher level of development at a quicker pace. etc. Experimental outlook, necessary for economic development must grow with the spread of education. Buyers’ relationships with suppliers are largely affected by the perception and practice of such an independence. – OpEd, Malarkey Floating Around South China Sea – OpEd, Russia, Turkey Agree On Karabakh Monitoring Center, Noam Chomsky On The Jeremy Corbyn Controversy – OpEd. These countries suffer from surplus labour force but shortage of critical skills. ; (d) ethical standards and expectations; (e) the booklet should reflect the expertise and expectations of all stakeholders who are affected by the supply chain management; (f) areas of potential needs and collaboration other than the ones mentioned in (c) above should be delineated in fairly reasonable detail; (g) assurances of confidentiality for both current and future suppliers; and (h) the booklet should be attractive, well developed and written. This view elevates economic considerations as defined principally by economists who live in particular types of economies into a global standard against which all nations are measured. (1) Propensity to develop fundamental services. Cause and consequences of economic development are mostly determined by the time path and velocity of these aforesaid changes. 0000000979 00000 n
Prof. Raul Prebisch, Singer, Myrdal have formulated it “Theory of exploitation of poor countries”. They should show competence and a willingness to buy the supplier's materials. As underdeveloped countries have failed to fulfill these conditions thus their development process is neither self-sustaining nor cumulative. These vicious circles of poverty are mutually aggravating and it is really difficult to break such circles. Cicero, like all lawyers, did not charge for his lawyer’s activity, it would be the end of his political career, but he developed agricultural land and at the Forum those who wanted him as a lawyer obtained it without having to pay a sestertius. This equation shows that rate of growth of GNP is directly related to savings ratio and inversely related to capital-outlet ratio. Many of the western countries development is due to their abundant availability of natural resources. 2000). The key to development lies in men’s mind. and also increased volume of concessional aid from international institutions like I.M.F., I.B.R.D. Thus by the term economic development we mean a process so as to raise the per capita output with a scope for equitable distribution. There are three stages in the process of capital formation, i.e.. Widespread Losses Of Pollinating Insects In Britain, Are Antifa Members Domestic Terrorists? The economic organisation of the country should be of that type which can respond well to the requirements of planning for economic development. The process of development depends on a host of factors like natural resources, physical and human capital, technology, socio-politico-economic structure of the country. Foreign capitalists mostly invested their capital on mining, oil drilling and plantation industries where they exploited the domestic workers to the maximum extent and remitted their profit to their parent country. Only atmosphere could change that. The extent and pace of inter-sectoral transfer of work force depend very much on the rate of increase in productivity in the primary sector in relation to other sectors. When in a couple of months the biggest democracy in the world will have given its verdict on who will govern India for the next few years, we will know if the numbers have imposed their validity or not. The share of total labour force engaged in industrial sector varied between 40 to 58 per cent for almost all the countries excepting erstwhile USSR and Japan, as these countries entered lately in the field of industrialisation. Underdeveloped countries are also suffering from lack of adequate number of entrepreneurial ability.