SOCIAL AND POLITICAL OBSTACLES TO GROWTH
There are several other factors which have retarded the economic growth of under-developed countries. Among these we may mention the following:
Pellagra System. In the under-developed countries like India, agriculture has been carried on in a very inefficient manner. Lack of adequate irrigation facilities and fertilizers, primitive agricultural practices, proclivity the peasant, outmoded systems of tenure. uneconomic holdings arc some of the reasons for the backwardness of Indian agriculture. Excessive dependence on agriculture itself is a major cause of the economic backwardness of the e countries.
Lack of Technical Skunk-how. The use of modern techniques in the field of agriculture, trade and industry is indispensable for economic progress. But industrialists and businessmen in under-developed countries are blissfully ignorant of such techniques and thus Recife terribly handicapped in the economic race.
Lack of Technical Kuhn-how. The use of modern techniques in the field of agriculture, trade and industry is indispensable for economic progress. But industrialists and businessmen in under-developed countries are blissfully ignorant of such techniques and thus feci terribly handicapped in the economic race,
Social Structure, Not only have the economic factors handicapped economic progress of the underdeveloped countries but social factors, too, have played their part to keep them economically backward, Social structure has proved inimical to economic progress. Among the social forces impeding, for instance, India’s economic progress we may mention the following
Joint Family acts as another serious obstacle to economic progress. Tile system breeds drones, seriously imperils the will and the power to save, since cartloads to extravagance on the part of sonic members. It kills initiative and enterprise in the younger nonmembers of the family. for they expect to be comfortably looked after by Dickhead of the family, In short, the joint family system results in shortage of capital and low rate of capital formation which is a major cause of the tardy economic growth in India
But in 1975-76, owing to certain government measures and cooperation of the people putting in greater effort, there was a welcome hanger on the economic front. Consequently, the process of development picked up with amazing speed
with the advanced countries have also kept the under-developed countries in a state of under-development. In other words, international trade has worked to the disadvantage of the under-developed countries and perpetuated their poverty. As Prof. Raul Archbishop has observed, there has been a secular stagnation in the terms of trade of the under-developed countries. He says that “over the last seventy years. the peripheral under-developed countries have suffered with fatal effects of a continuous weakening in their capacity to . impact. It has led to the weakening of the capacity of their existing primary producing industries to support their growing population, it has resulted in a failure to transmit to them the benefit of technical progress; it has finally lowered their rates of capital formation and thus of their economic growth.
Foreign trade has a very limited ‘spread-effect’ on developing economics. That IS, developing economics arc not exposed to the beneficial effect of foreign trade in terms of economic development. On the other hand. developing economies are o~~n exposed to the cyclical effects of foreign trade chichi inevitably results in economic instability and impedes economic
unemployment on a large scale bringing economic growth to a stand still, if not negative growth rate. As Gunner Myrdal observes in his hook “Economic Theory and Under-developed Regions” foreign trade has only yielded ‘backwash’ effect in the economies of developing economies. We thus see how development of under-developed countries has been adversely affected by international economic relations.
Thus, various factors. economic and non economic. i.e.. social. political and international, have conspired to retard economic growth of lite under-developed countries,