Use of Foreign Capital

The vicious circle of poverty can be broken and economic development accelerated by raising foreign capital also to supplement domestic resources. The developed countries of today were once poor and they developed themselves with the help of foreign capital in one form or another . The under developed countries too can make up the deficiency of domestic savings by getting capital from abroad. It is gratifying that the rich countries of the world like the U.S.A , Canada, the U,K western Germany, France and Japan are generously helping the under developed countries to promote their economic development . There is a regular aid helping the poor peoples of those countries. The under developed countries take this aid as loan but they cannot use it properly. It is much better, therefore for the under developed countries to rely as much as possible on their own resources and avoid being burdened with heavy repayments abroad and thus retain their independent policy and action.