Ⅰ. Introduction.
In this thesis, some ideas for the possible economic progress in the under-developed countries are proposed. An under-developed country is generally defined as a country with low national income not capable of deciding its course t...
Ⅰ. Introduction.
In this thesis, some ideas for the possible economic progress in the under-developed countries are proposed. An under-developed country is generally defined as a country with low national income not capable of deciding its course toward development. Though remitted from cultural backwardness, their economical structure is westernized.
Approach to the problems of the under-developed countries is to be divided by comparison with the historical study, econometric study, and study on the economic policy. This thesis is based upon the latter.
Ⅱ. Political View of Economy.
It is dangerous to use history as guidence for development. Nothing common is found between matters of process of the advanced countries' economical growth and the present problems of the under-developed countries. The major difference is the fact that Europe of the 19th century was the precursor of the world and penetrated first into the world market while the under-developed countries of today are under the unbalanced internal economic situation and unfavorable conditions among the world markets, which are not organized in democracy.
Ⅲ. On the Agricultural Problems.
The agricultural structure of the under-developed countries is characterized by the limited mobility of funds which are formed of incomes from agricultural production, and the low proportion of agricultral investment.
Ⅳ. On the Commercial Problems.
One of the basic characteristics of under-developed economics is the strong tendency to commercialization. Entrepreneurs' income does not depend upon the formation of productive capital, but upon the exchange of merchandise. The split into innumerable small capitals makes participation of the innumberable agents on each commercial operation. The appearable realization of intermediate gains decreases the productive willingness and the commercial capital accumulation does not serve on economical construction.
Ⅴ. On the Industrial Problems.
Not only the accumulation of capital is important, but judicious utilization of this accumulated capital in accordance with the established programme is rather more important. It is necessary also to devise the methods permitting for the increase of the labor factor and the economization of natural resources and capital of the production factors.
Ⅵ. On Financing Economic Growth.
1. First Aspect.
The monopoly is formed, in under-developed economy, by legislative measure such as loose rhythm of economic growth, rarefaction of capital, insufficiency of demands; a group formed by a number of entrepreneurs, as that of pressure. Therefore, the monopoly is not the result of strict concurrence. It is far from advanced economics that the enterpreneurs' profit does not provoke the additional production factors and the decrease of prices. The familiar enterprises contribute negatively toward an important part of economics in underdeveloped countries. Such enterprises are financed mostly by auto-financement. The banks mostly utilize the commercial method and aim at researching customers' solvability and high rate of interest, inclination toward short-term loans which favor speculation and monopoly situation of import-export. The infra-structure is impossible to build by the minor size of private spontaneous saving which could be considered as a by-product of consumption. This matter shows the necessity of appeal for enforced saving.
2. Second Aspect.
The transmission of capital from personal possession to that of the state through impositions of taxes makes efficient utilization of it possible, especially, heavy taxes on luxuries, for example, with the aim of controlling the consumation of imported merchandize besides other necessaries.
Ⅶ. Conclusion.
The inferiority of under-developed countries can not be covered by opportunism of economic policy, but recovery could be achieved through the political policy. Unless an international equality is assured, it is natural that a consciousne