To Increase the Rate of Economic Development
In underdeveloped countries increase in the rate of economic development is the basic objective of planning. Income, saving and investment should be increased, to enhance the level of capital formation which helps in raising the rate of economic development. People in underdeveloped countries are poor. Their income level is low which reduces the capacity of the people to save. Low saving results in lower level of capital formation. Due to scarcity of capital and lower productivity the rate of investment is low. In this situation, two methods can be used: one is ....
