The economic
development means the transformation from low income to high income society.
Let us see now the conditions which facilitate this transformation and maintain
a sustained and steady rate of growth . The process of economic development is
a highly complex phenomenon and in influenced by numerous and varied factors,
such as political , social and cultural factors. As such, economic analysis can
provide only a partial explanation of this process. To repeat here the remark
of Prof, Ragnar Nurkse in this condition .” Economic development has much to do
with human endowments, social attitudes, political condition and historical
accidents. Capital is necessary but not a sufficient condition of progress. The
most important factors determining the rate of economic development are:1) Availability of
natural resources
2) The rate of capital formation
3) Capital output ratio
4) Technological progress
5) Dynamic Entrepreneurship
6) Rate of growth of Population
7) Social overheads
like education and health.
8) Non- economic factors.
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