Discuss elobortely various obstacles to economic development
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Obstacle # 1. Interlocking Various Circle:
Rapid economic growth is an historical abnormality. Therefore, any overall approach to development must take note of the reality, i.e., the various obstacles to growth as also the persistence of secular stagnation emphasised
Obstacle # 2. Population Problems:
Rapid population growth creates serious problems for poor countries in which the rate of capital formation is low. This scarce capital simply goes into spreading a larger quantity of tools over a larger number of people without raising per capita productivity.
Obstacle # 3. The Difficult of Adapting Western Technology:
The LDCs of the world often face certain difficulties in adapting western technology. It is so because such technology is not ideally suited to their own conditions. Such technology is mainly of capital-using type. But LDCs are basically capital-scarce.
So, they cannot utilise this technology effectively due to the use of such technology is also not possible due to shortage of entrepreneurs and skilled personnel which characterise most LDCs. At the same time, their own technology is out-dated.
Obstacle # 4. Lack of Preparation for an Industrial Revolution:
For industrial development to take place the social and economic groundwork must be laid first. But, in today’s LDCs attempts are being made to accomplish simultaneously both the industrial revolution and the preparations for such a revolution.
In fact, in such countries agricultural and commercial sectors have not sufficiently developed so as to sustain rapid industrial progress. Moreover, the existing institutions and value systems are hardly conducive to material progress.
Obstacle # 5. The International Context:
Most developed countries of today grew with the help of foreign capital in the past. But now the climate for investment in LDCs is not encouraging due to colonial abuses and a strong upsurge of nationalistic feeling and various restrictions imposed by capital- importing countries on the kinds and the terms of foreign investment.
Rapid economic growth is an historical abnormality. Therefore, any overall approach to development must take note of the reality, i.e., the various obstacles to growth as also the persistence of secular stagnation emphasised
Obstacle # 2. Population Problems:
Rapid population growth creates serious problems for poor countries in which the rate of capital formation is low. This scarce capital simply goes into spreading a larger quantity of tools over a larger number of people without raising per capita productivity.
Obstacle # 3. The Difficult of Adapting Western Technology:
The LDCs of the world often face certain difficulties in adapting western technology. It is so because such technology is not ideally suited to their own conditions. Such technology is mainly of capital-using type. But LDCs are basically capital-scarce.
So, they cannot utilise this technology effectively due to the use of such technology is also not possible due to shortage of entrepreneurs and skilled personnel which characterise most LDCs. At the same time, their own technology is out-dated.
Obstacle # 4. Lack of Preparation for an Industrial Revolution:
For industrial development to take place the social and economic groundwork must be laid first. But, in today’s LDCs attempts are being made to accomplish simultaneously both the industrial revolution and the preparations for such a revolution.
In fact, in such countries agricultural and commercial sectors have not sufficiently developed so as to sustain rapid industrial progress. Moreover, the existing institutions and value systems are hardly conducive to material progress.
Obstacle # 5. The International Context:
Most developed countries of today grew with the help of foreign capital in the past. But now the climate for investment in LDCs is not encouraging due to colonial abuses and a strong upsurge of nationalistic feeling and various restrictions imposed by capital- importing countries on the kinds and the terms of foreign investment.
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