Does itperformance solve the capital scarcity problem of less developed countries?
Answers
Explanation:
1)Population Growth-:
Among all the developing countries, population growth remains one of the reasons for these countries to remain poor. To take specific examples, both India and China have historically been among the poorer countries because of their huge populations. It was only after the economic liberalisation and opening up of their respective economies that these countries began on a growth trajectory similar to that of the developed countries.
2) Governmental Efforts to Combat Population Growth-:
Ever since India became independent from the erstwhile colonial rule of the British in 1947, one of the cornerstones of its policy has been to reduce population. The efforts of the Indian government in this regard have been mixed due to a combination of ignorance, tradition and other factors that are largely due to the lack of economic growth. The deadly combination of low income coupled with large families makes for social instability and poor human development.