Socially Desirable Income Distribution Criterion

Another important investment criterion is the socially desirable income distribution. It means that in vestment should be so planned as to achieve equitable distribution of benefits. This criterion may be regarded very important because economic development in under-developed countries tends to accentuate disparities of income and wealth district  union in the country. Such dis-incs cause grocer discontent and great threat to political Employment probabilistic criterion stability. Such desirability invest-prescribes labor intensive technology men may be in the Inonu  public euthenics, education, public health. improving means of transport and communications. In this type of investment benefits arc evenly distributed, may be more in favor of the poor than the rich.

Socially Desirable Income Distribution Criterion

Socially Desirable Income Distribution Criterion


From the above analysis of the various investment criteria and the choice of techniques, it is clear that we cannot lay down dogmatically the criterion or criteria which should guide us in investment. Nor can we make a categorical choice of any pal titular technique.

Thus, there is no single, simple, precise and objective criterion for planning investments. The best that the planners can do is to strike a balance among the various considerations we have discussed above. It is clear that miscount criteria should not he linked with any one of the objectives. For, promoting economic growth, output, profits, savings and employment all must be increased. To use Prof. Stows’ terminology, the leading sectors of the economy should be developed or investment should create increase infrastructural facilities.

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