Economics(Paper-4) - Shivaji University

7) “ Economic development is a process by which an economy is transformed
from whose rate of growth of per capita income is small or negative to one in
which a significant Self-Sustained rate of increase per capita income is a
permanent long term feature.” – Prof Irma Adelman.
8) “ Development Concerns not only man’s material needs but also the
improvement of social conditions of his life. Development is therefore, not
only economic growth plus change. Social, Cultural and institutional as well
as economic.” – UNO
9) “ Economic development may be defined as a sustained improvement in well
being. Which may be considered to be reflected in an increasing flow of goods
and services.” – Bernard Okun and W. Richardson.
All these definitions emphasis different aspects involved in the process of economic
development. Economic development implies progressive changes in the socioeconomic
structure of country.The concepted economic development is more
Comprehensive.
1.2.2. Characteristics of Underdeveloped economy :
The term underdeveloped country is not easy to define. We shall briefly analyse
here a few definitions :
According to the United Nations Experts, an under-developed country is one in
which per capita real income is low as compared with the per capita real income of the
U.S.A., Canada, Australia and Western Europe.’
The modified definition of the planning commission might run as follows – “An
under-developed country is one which is characterized by the co-existence , in greater
or less degree, of unutilised or under-utilised manpower on the one hand, and of
unexploited natural resources on the other, on account of a low rate of capital formation.”
Prof Colin Clark, who is the pioneer in the studies of underdeveloped economies,
also described, “Underdeveloped economies are such in which primary occupations
like agriculture predominate, the economic development consists in the progressive
enlargement of the proportion of tertiary occupation in the economy.
B Characteristics of under-Developed Countries :
While it would be very difficult to locate a representative under developed country,
it is much easier to bring out some fundamental characteristics common to underdeveloped
countries, which are considered as below :-
1) Primary production : An under developed economy is either exclusively or
predominantly is primary producing economy. It is mainly dependent upon the production
of raw materials and food grains or on non-agricultural primary production, viz. minerals.
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