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a) Development planning contribution to increased economic development.
>Increase national income
>Better utilization of resources
>Reduces on wastage
>Increased balance of payments
>Enhances recognition of flaws and problems in development process
b)Vicious cycle of poverty for economies.
>Low capital brings about low productivity which means low incomes, low demands and low savings, which in turn brings about low investment which result to low capital.
>Limitations: Not applicable for all economies, not only capital can be the cause of under development.
Anganifelix answered the question on June 12, 2018 at 12:44
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