Question

which factors determines the Nature of development class 12 ​

Answer 1

Answer:

Factors that Determine Economic Growth and Development of a Country!

The process of economic growth is a highly complex phenomenon and is influenced by numerous and varied factors such as economic, political, social and cultural factors. It is believed by some economists that the capital is the only requirement for growth and therefore the greatest emphasis is laid on capital formation to bring about economic development. But this is wrong. As Professor Nurkse rightly remarks, “Economic development has much to do with human en­dowments, social attitudes, political conditions and historical accidents. Capital is a necessary but not a sufficient condition of progress.”

The following are various factors which determine economic growth and development:

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(i) Supply of Natural Resources;

(ii) Capital form action which depends upon the rate of domestic saving and investment and inflow of foreign capital;

(iii) Growth of population;

(iv) Technological Progress; and We examine below each of these factors in turn.

(i) Supply of Natural Resources:

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The quantity and quality of natural resources play a vital role in the economic development of a country. Important natural resources are land, minerals and oil resources, water, forests, climate, etc. The quality of natural resources available in a country puts a limit on the level of output of goods which can be