Page 18 - DECO501_ECONOMICS_OF_GROWTH_AND_DEVELPOMENT_ENGLISH

Economics of Growth and Development

Notes It, thus, advises to adopt an evolutionary change in social and cultural factors rather than
revolutionary ones. Myrdal in his book Asian Drama also advocates the adoption of
“modernisation values” or “modernisation ideals” for the rapid economic development of
underdeveloped countries.
3. Education: It is now fairly recognised that education is the main vehicle of development.
Greater progress has been achieved in those countries, where education is wide spread. J.K.
Garlbraith in his book “Economic Development” has rightly stressed the role of education as
an engine of economic growth.
4. Urbanisation: Another noneconomic factor promoting development is the process of
urbanisation. In poor agrarian economies, the structural change must begin with the change in
the size of population in rural and urban sectors.
5. Religious Factors: Religion plays a great role in economic growth. It may give rise to a
peculiar sense of self-satisfaction. For example, the Hindu religion encourages faith in fate and
prevents people from working hard. They are educated to remain satisfied with their lot and
to hate risk and enterprise. Then our religion gives a higher place to spirit than matter.
In short economic growth is the result of concerted efforts of both economic and non economic
factors. However, the mere presence of one or more or all of these factors may not ensure that
the economy will be in a position to generate forces that bring about a fast economic growth.
Some further factors may also be required that may work as a catalyst for growth. This function
can well be performed by the state.
1.9.3 Obstacles to Economic Development
Broadly speaking, the features of an under developed economy create obstacles in the way of
economic development, and hamper economic progress. These features emerge out of economic,
social, political, religious and institutional factors. It would be wrong to conclude that only economic
factors are responsible for poverty or economic backwardness of a country. Non-economic factors
are equally responsible for the under development of an economy. The factors discouraging economic
development may be classified into economic and noneconomic factors which are as under.

Obstacles to Economic Development

Economic Factors Non-Economic Factors
1. Vicious Circle of Poverty 1. Undeveloped Human Resources
2. Deficiency of Capital 2. Political Instability
3. Market Imperfections 3. Socio-cultural Constraints
4. International Forces 4. Religious Factors
5. Difficulty of Adoption Western
Technology
6. Low Agricultural Productivity
7. Lack of Entrepreneurs

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