Government Measures to Promote Development

Government Measures to Promote Development In view of the peculiar circumstances in which politically, socially and economically the under-developed countries are placed, there is not only a great urgency about economic development but also an inf

Government Measures to Promote Development

In view of the strange conditions in which socially, politically and economically the developing nations are positioned, there is not merely a huge necessity about economic growth but also an substantially much better endeavor is necessary to produce the forces of economic development. This attempt is clearly past private venture in such nations. Due to unpleasant economic, political, and social aspects, these nations have been for long in a condition of economic dormancy. They are at present becoming painfully conscious of the broadening inequality, between their financial state and that of the developed nations, who are becoming wealthier each day while they are trapped up in the cruel circle of poverty. This requires a broad set of measures to be implemented by the management not only to wake them up from the condition of economic stagnancy but to see them rally rapidly on the road of growth

The following are the important measures which are required for the management of an under-developed nation to take in order to speed up the development of economic growth:

(i) Provision of Economic and Social Overheads

If economic development is to be stepped up, it is essential for the government to present in sufficient measure social as well as economic overhead amenities, also known as the overhead capital and services or infrastructure.

(ii) Provision of Financial Facilities

Finance is the bottom of the setback of growth. We know that a developing nation experience shortage of capital which is the utmost handicap in their economic development. No doubt that their savings are scanty but even the scanty savings are not accessible for economic growth.

 (iii) Institutional Changes

Out dated institutions and official and social arrangement too come in the path of economic growth of the developing nations. Plenty of improvement and restructuring is necessary to start and speed up the course of development.

(iv) Direct Participation

In addition to the measures mentioned above, the governments in underdeveloped countries directlv participate in economic enterprises to assist private enterprise or to set for them a model to followThe government mainly confines itself to basic, heavy and key industries which help other industries, whereas the private sector operates in manufacturing and consumption goods industries,

 (v) Indirect Measures

Besides promoting economic development directly as explained above, the governments of under-developed countries promote economic growth of their countries indirectly too. The indirect measures relate to the adoption of economic policies which may be conducive to economic growth. These policies mainly are: monetary policy, fiscal policy and commercial policy.

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