State and explain the need for economic planning in underdeveloped countries.

      

State and explain the need for economic planning in underdeveloped countries.

  

Answers


John
1. Inequalities of income.
Inequalities of income and wealth exist in underdeveloped economies. Private enterprise system does not secure equal distribution of benefits of economic development among different classes of the community. The developing social conscience of people cannot tolerate the existence of such grave inequalities. This would secure a better distribution of national income among all classes of people in a country.

2. Weak private sector.
In an underdeveloped country, private enterprise is weak and may fail to take necessary risks of pioneering those industries which are necessary for rapid economic development of the country. Therefore, the state must come to the forefront action.

3. Change of attitude.
All underdeveloped countries have become development - minded. Now they want to pack the development of centuries in a few years. They like to raise the standard of living of their people.
Jonmhumble answered the question on November 8, 2017 at 10:34


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