Since the end of World War II, the economists started taking lot of interest in economic development. The reason was that the capitalist countries like he U.S.A., the U.K. and European countries were keen on stabilizing the conditions of full employment. In this connection. economists like Sir Roy Harrods in England and Scythe. Dodoma in the USA, put forward models of steady economic growth. According to them, in order to maintain full employment planning to cross the hurdle of stationary equilibrium of under-development . Their aim is to catch up with the advanced and highly developed nations of the world in the shortest possible time. Poverty, hunger, disease, illiteracy, and lack of opportunity for self development have been the lot of a large majority of people in under-developed countries. Poverty there is old but the awareness of poverty and the hope that something can be done about it are new. In fact, a “revolution of is currently sweeping the under-developed countries. In these countries, many theories were propounded about; -vitiating and accelerating the process of economic growth.
The Indian Planning Commission defines an under- developed country as one “which is characterised by the co-existence, in greater or less degree, of unutilized or under-utilized manpower, on the one hand and of unexploited natural resources on the other.” The existence of idle resources as stressed by this definition, is undoubtedly an important characteristic of an under-developed economy. But there is a snag in it: It does not clearly indicate the causes of the existence of idle resources. Resources may and arc very often, idle even in the highly developed capitalist countries, particularly in times of depression. But such countries cannot he classed as ‘under-developed’ on that ground. As such. an acceptable definition of an under-developed country must pinpoint the main factors which Ie.ld to thc existence of idle or under-uuli/cd resources in such an economy. If the because they have not been properly explored developed, it indicates a sign,’ of under-development. Hence will considered underdeveloped:
(a) life its per capita income is how.
(b) If the natural resources and manpower