Meaning of Economic Development and Factor Obstructing Economic Growth
Meaning of economic development and factor obstructing economic growth
Meaning of Economic Development
Economic development, as the converse of under-development, means that a nation has an extremely urbanized economic organization. This, in turn, implies that it has an extremely resourceful organisation both of industry and of agriculture, an extremely urbanized credit and banking system and a sufficient growth of transport and communications. Extensive institutional, social and organisational alterations are obscured in the course of economic growth. It implies, in short, an adaptation of a primarily agrarian economy into an extremely industrialized one, bringing on an increase in national as well as per capita income. This is attended by an increased tempo of capital formation and a high level of technological expansions.
Determinants of Economic Growth
The soul of economic growth comprises in the development of productivity or real income per individual. The procedure of such expansion is a extremely difficult experience and is effected by several and wide-ranging political, ethnic and cultural aspects. As such, economic examination can offer just an incomplete enlightenment of this development. In the words of Ragnar Nurkse, Economic growth had a lot to do with human gifts, social approaches, political forms and chronological misfortunes. Capital is a required but not a adequate provision of development. The contribution of natural reserves, the development of scientific and technical information all these too have a well-built attitude on the development of economic development.
Factors obstructing economic growth
Social Factors obstructing economic development
Unfavorable social organization is in addition a big set back on economic development. The joint family system, the caste system, and the strange laws of legacy and the ancient spiritual beliefs widespread in India are to no petite amount liable for her economic under-development.
Political Factors obstructing economic development
Along with social factors, the political factor can as well be accountable for holding back economic development. If a nation has been under the unfamiliar rule, its economic development has got to remain ignored. Even if the nation is liberated, a dishonest and incompetent political organization can play chaos with economic development. No surprise that more than a few African as well as Asian nations are on the economically under-developed list.