DEVELOPMENT ECONOMICS

B.A. IIIYR (SEM – V)

DISCIPLINE SPECIFIC COURSE – PAPER-V
MODULE 2: FACTORS IN ECONOMIC DEVELOPMENT

FACTORS AFFECTING ECONOMIC DEVELOPMENT AND GROWTH

Economic development and growth are influenced by four factors: human resources, physical capital, natural resources
and technology. Highly developed countries have governments that focus on these areas. Less-developed countries,
even those with high amounts of natural resources, will lag behind when they fail to promote research in technology
and improve the skills and education of their workers.
1. Human Resources
The skills, education and training of the labor force have a direct effect on the growth of an economy. A skilled, well-
trained workforce is more productive and will produce a high-quality output that adds efficiency to an economy.
A shortage of skilled labor can be a deterrent to economic growth. An under-utilized, illiterate and unskilled
workforce will become a drag on an economy and may possibly lead to higher unemployment.
2. Physical Capital
Improvements and increased investment in physical capital - such as roadways, machinery and factories - will reduce
the cost and increase the efficiency of economic output. Factories and equipment that are modern and well-
maintained are more productive than physical labor. Higher productivity leads to increased output.
Labor becomes more productive as the ratio of capital expenditures per worker increases. An improvement in labor
productivity increases the growth rate of the economy.
3. Natural Resources
The quantity and availability of natural resources affect the rate of economic growth. The discovery of more natural
resources, such as oil or mineral deposits, will give a boost to the economy by increasing a country's production
capacity.
The effectiveness of a county at utilizing and exploiting its natural resources is a function of the skills of the labor
force, type of technology and the availability of capital. Skilled and educated workers are able to use these natural
resource to spur the growth of the economy.
4. Technology
Improvements in technology have a high impact on economic growth. As the scientific community makes more
discoveries, managers find ways to apply these innovations as more sophisticated production techniques.
The application of better technology means the same amount of labor will be more productive, and economic
growth will advance at a lower cost.
Countries that recognize the importance of the four factors that affect economic growth will have higher growth rates
and improved standards of living for their people. Technological innovation and more education for workers will
improve economic output which lead to a better living environment for everyone. Increases in labor productivity are
much easier to achieve when investments are made on better equipment that require less physical work from the labor
force.

CHARACTERISTICS OF DEVELOPING COUNTRIES

According to the UN criteria, countries with less than $400 level of per capita income countries are designated as low
income countries and countries with less than $750 per capita income as called less developed economics. The following
are the main characteristics of developing countries:
India is at present an underdeveloped economy.
Low Income:
In India, the national income and per capita income is very low and it is considered as one of the basic features of
underdevelopment. As per World Bank estimates, the per capita income of India stood at only $ 720 in 2005 whereas it
was $1,180 in 2009 at current prices. Keeping aside a very few countries, this per capita income figure of India is the
lowest in the world and it is even lower than China and Pakistan.
In 2005, the per capita income figure in Switzerland was nearly 76 times, in U.S.A. about 61 times, in Germany about 48
times and in Japan about 54 times the per capita income figure in India. Thus the standard of living of Indian people
remained all along very low in comparison to that of developed countries of the world.This disparity in the per capita
income of India and other developed countries has registered a manifold increase during the last four decades (1960-
2005).
Roughly one third of the population is below the poverty line. India’s poverty was the legacy of the colonial rule.
However, India’s national income has been increasing at a slow but steady pace.
Excessive dependence of agriculture and primary producing:
Indian economy is characterised by too much dependence on agriculture and thus it is primary producing. Out of the
total working population of our country, a very high proportion of it is engaged in agriculture and allied activities, which
contributed a large share in the national income of our country. Population increases and the increased labor stick to
agriculture thereby over burdening the family. There is low output per head.
The heavy concentration in agriculture is a symptom of poverty. Agriculture in India is mostly unproductive and mainly
carried on in an old fashion way with obsolete methods of production. As a result, the yield from land is very low and the
peasants continue to live at a bare subsistence level.
In the recent past, attempts have been made to adopt modern agricultural technology which has increased agricultural
productivity. Even then yields for major food crops in India are much below those in the USA or Japan or UK.
In 2004, nearly 58 per cent of the total working population of our country was engaged in agriculture and allied activities
and was contributing about 21.0 per cent of the total national income.
Poor rate of capital formation:
Capital formation increases investment which effects economic development in two ways. Firstly, it increases the per
capita income and enhances the purchasing power which, in turn, creates more effective demand. Secondly, investment
leads to an increase in production.
Capital deficiency is one of the characteristic features of the Indian economy. Both, the amount of capital available per
head and the present rate of capital formation in India is very low. This low level of capital formation in India is also due
to weakness of the inducement of invest and also due to low propensity and capacity to save. 
Consumption of crude steel and energy are the two important indicators of low capital per head in the under-developed
countries like India.
To achieve a higher rate of economic growth and to improve the standard of living, a still higher rate of capital formation
is very much required in India. In India the rate of saving as percent of GDP has gradually increased from 14.2 per cent in
1965-66 to 30.6 per cent in 2013-14 which is moderately high in comparison to that of 23% in Germany, 15% in U.K. and
17% in USA. However, in 2019, the rate of saving as a percent of GDP in India was 27.99%.
But considering the heavy population pressure and the need for self-sustained growth, the present rate of saving is
inadequate and thus the enhancement of the rate of capital formation is badly needed. As per Colin Clark’s estimate, in
order to maintain the same standard of living, India requires at least 14 per cent level of gross capital formation. As per
RBI, Gross capital formation refers to the 'aggregate of gross additions to fixed assets (that is fixed capital formation)
plus change in stocks during the counting period. ' Fixed asset refers to the construction, machinery and equipment.
Inequality in the distribution of wealth:
Like most underdeveloped countries the distribution of income and wealth in India is inequitable. The gap between the
haves and the have-nots over the years has actually widened and there has been concentration of wealth and economic
power in the hands of a few to the detriment of the common people.
Maldistribution in income is the result of inequality in the distribution of assets in the rural areas. On the other hand, in
respect of industrial front there occurs a high degree of concentration of assets in the hands of very few big business
houses. 
In India bottom 40% of rural population possess only 5% of rural assets while 8% top households possess 46% of total
rural assets. This disparity is more intensive in urban areas.
High Rate of Population Growth:
Like all other underdeveloped countries, the population of India has been increasing at an alarmingly high rate. India’s
population was 85 crores in 1991 as against 68 crores in 1980 and the country has the second largest population in the
world next to China.
The country is passing through the second stage of demographic transition which is characterised by a falling death rate
without a corresponding decline in birth rate. At present the rate of increase of population in India is 2.5 per cent per
annum which comes to 15 million persons per annum.
This has resulted in population explosion which neutralises the small gains of development which the country has made
during the period of economic planning. An increase in population raises the ratio of people to land and other sources of
raw materials and as a result, production tends to decline per unit of variable cost in the concerned industries.
Unemployment and Underemployment:
Widespread unemployment and underemployment is an important feature of the Indian economy. Owing to huge
population, the supply of labour far exceeds the demand for labour. It is very difficult to provide gainful employment to
all.
The main reason is that there is a shortage of capital. India does not have sufficient amount of capital to expand
industries so that the entire labour force is absorbed.
The nature of unemployment in India is different from what it is in the developed countries. In a developed economy,
unemployment is of a cyclical nature and occurs due to lack of effective demand. In contrast, unemployment in India is
structural and has arisen due to lack of capital.
What is more serious is that the number of unemployed is on the increase. In agricultural sector there is widespread
disguised unemployment while in the urban areas there is open unemployment.
There are two reasons for urban unemployment. First, the failure of the industrial sector to expand at a fast enough
rates has resulted in industrial unemployment. Secondly, expansion of education has created demand for white collar
jobs which the country’s urban economy has failed to provide.
A Dualistic Economy:
All the underdeveloped countries including India have a dualistic economy. One is the market economy and the other is
the subsistence economy.
One is in the urban areas and the other is in the rural areas. One is developed and the other is undeveloped. The modern
or the developed part contains mainly the large scale industry, mines and plantations.
It is well organised and highly monetised. It uses the modern techniques of production. Workers and employers in this
sector are well organised. Monetary and fiscal measures of regulation are quite effective. This advanced sector of the
economy accounts for a small part of the whole economy.
The primitive part mainly comprises agriculture and is confined to rural areas. This is very backward and money does not
play an important part in this sector. There is a high degree of self-sufficiency and people do very little buying and selling
as most of the transactions are of a barter type.
A large part of the credit is supplied by the traditional money-lenders. Monetary and fiscal measures of regulation are
not very effective. Indian peasant is born in debt, lives in debt and dies in debt. Income of the people of this inorganised
sector is very low. Thus, the Indian economy is characterised by economic dualism.
Technical Backwardness:
The state of technology in the underdeveloped countries is backward. On account of the absence of technological
development, India has continued to use old, outdated and primitive methods of production which were discarded by
the developed countries long ago.
Deficiency of capital hinders the process of scrapping the old techniques and equipment and its replacement with
modern techniques, etc. Illiteracy and absence of skilled labour are the other major hurdles in the spread of techniques
in the backward economy.
However, it is gratifying to note that the level of technology is rapidly increasing in the country and India has the largest
number of technically qualified personnel in the third world countries.

POPULATION GROWTH AND ECONOMIC DEVELOPMENT

Population growth plays a conflicting role in the development process of a country. It helps economic development and
it retards economic development.
Several thinkers over the centuries have favoured population growth as the basis of a country’s economic development.
According to them, there is no conflict between population growth and economic development but also an increase in
population is necessary for increase in wealth and development. But, antithesis to this is the Malthusian version which
regards population growth as the number one barrier to economic development.
Thus, there is a conflicting role between population growth and economic development. It can act both as a stimulus and
as an impediment to growth and development. Such conflicting roles suggest that the relationship between population
and economic development is intricate, complex and interesting.
The relationship between population growth and economic development appears to have changed over time.
It is a recurrent theme in economic analysis since at least 1798 when Thomas Malthus famously argued that  population
growth would depress living standards in the long run.
The theory was simple: given that there is a fixed quantity of land, population growth will eventually reduce the amount
of resources that each individual can consume, ultimately resulting in disease, starvation, and war. The way to avoid
such unfortunate outcomes was ‘moral restraint’ (i.e. refraining from having too many children). He didn’t foresee the
technological advances that would raise agricultural productivity and reduce the toll of infectious diseases—advances
that have enabled the world’s population to grow from 1 billion in 1798 to 7.4 billion today.
Nevertheless, his essential insight that population growth constitutes a potential threat to economic development
remained influential and informed international development policy agendas, especially in the 1950s and 1960s—a
period marked by unprecedentedly rapid rates of population growth in many developing countries.
But if economic development can slow population growth, it can also increase it. One of the first gains a developing
nation can achieve is improvements in such basics as the provision of clean drinking water, improved sanitation, and
public health measures such as vaccination against childhood diseases. Such gains can dramatically reduce disease and
death rates. As desirable as such gains are, they also boost the rate of population growth. Nations are likely to enjoy
sharp reductions in death rates before they achieve gains in per capita income. That can accelerate population growth
early in the development process. Demographers have identified a process of demographic transition in which
population growth rises with a fall in death rates and then falls with a reduction in birth rates.

Quantity vs Quality: How family sizes affect investment

At that time, the general view of economists was that high birth rates and rapid population growth in poor countries
would divert scarce capital away from savings and investment, thereby placing a drag on economic development. They
hypothesized that larger families have fewer aggregate resources and fewer resources per child. Larger families
therefore spread their resources more thinly to support more children. This leaves less for saving and investing in
growth-enhancing activities. It also reduces spending on enhancing the economic potential of each child (e.g. through
education and health expenditures).
In the aggregate, these household level consequences of high birth rates were believed to exert a significant negative
effect on per capita income growth.
This view underpinned the major rise in international funding for family planning in the 1960s and 1970s, with the aim of
reducing birth rates and hence rates of population growth.

Was Malthus wrong?

In the 1970s numerous empirical studies, utilising the growing volume of comparable international data, failed to detect
a robust relationship between national population growth rates and per capita income growth.
In 1980, Julian Simon summarised this research, emphasising that “empirical studies find no statistical correlation
between countries’ population growth and their per capita economic growth”. Instead, he stated that long run effects
were positive. This view influenced the policy position of the US government at the World Population Conference in
Mexico City in 1984—namely that “population growth is, by itself, a neutral phenomenon with respect to economic
growth”. This view contributed to a major fall in international funding for family planning programs, beginning in the
1990s.

A population’s age composition matters for economic growth

When fertility rates decline over a sustained period of time the proportion of the working age population (i.e. over 15)
grows relative to the economically dependent youth population. This change in age composition creates a window of
opportunity during which a country can potentially raise its level of savings and investment—a phenomenon now known
as the ‘demographic dividend’. This finding prompted a subsequent reconsideration of the potential importance of
reducing fertility in pursuit of growth.
In 1990s, new research suggested that there was in fact a negative association between population growth and
economic performance.
In short, rapid population growth in developing countries was thought to be a problem in the 1950s and 1960s, irrelevant (or even
positive) in the 1970s and 1980s, and again an obstacle to robust economic growth from the mid-1990s up until today.
There is currently no consensus on the matter. Thus, economic growth performance depends on a wide range of
factors beyond population dynamics, such as investment, trade, education, and the quality of political and economic
institutions. 

POPULATION GROWTH AND ECONOMIC DEVELOPMENT OF INDIA

By economic development we mean not only increase in national income (GNP) or per capita income, but also reduction
in unemployment as a result of the growth of employment opportunities and reduction in poverty and inequalities of
income.
When population grows faster than GNP, the standard of living of the people does not improve. In fact rapid
population growth has been obstructing economic growth in developing countries like India where since 1951
population has been growing at a relatively high rate.
In India, it will be seen that since 1951, population has been growing at about 2 per cent or more. In other developing
countries such as Pakistan Bangladesh, rate of population has been greater than that of India.
Over-population and rapid the population rate is especially an Asian problem.
In case of India, population growth has to be checked if gains of development are not be nullified by it. (Note that only
China has brought population growth rate quite well under control by adopting one child per family norm.)
Population Growth in India since 1951:

In India where supplies of other economic resources, especially capital equipment, are relatively scarce, the increase
in population or labour force does not lead to the employment of all due to scarcity of capital resources. Because,
unemployed people do not add to national output. Further, population growth does not lead to increase in demand or
market for goods because the demand or market for goods increases if the real purchasing power in the hands of the
people increases. The mere growth of unemployed or paupers cannot lead to greater demand for goods or expansion in
their markets. 
With reference to India, we can see how population growth in India retards economic development.

THEORIES OF POPULATION GROWTH

MALTHUS’ THEORY OF POPULATION GROWTH
Malthus believed that if a population is allowed to grow unchecked, people will begin to starve and will go to war over
increasingly scarce resources.
Key Points
 Thomas Malthus warned that without any checks, population would theoretically grow at an exponential rate,
rapidly exceeding its ability to produce resources to support itself.
 Malthus argued that an exponentially growing population will self-correct through war, famine, and disease.
 Malthus cautioned that in order to avoid catastrophe such as famine and war, people should enact deliberate
population control, such as birth control and celibacy.
 Malthusian catastrophes refer to naturally occurring checks on population growth such as famine, disease, or
war.
 These Malthusian catastrophes have not taken place on a global scale due to progress in agricultural
technology. However, many argue that future pressures on food production, combined with threats such as
global warming, make overpopulation a still more serious threat in the future.
Early in the 19th century, the English scholar Reverend Thomas Malthus published “An Essay on the Principle of
Population.” He wrote that overpopulation was the root of many problems industrial European society suffered from
— poverty, malnutrition, and disease could all be attributed to overpopulation. According to Malthus, this was a
mathematical inevitability. Malthus observed that, while resources tended to grow arithmetically, populations exhibit
exponential growth. Thus, if left unrestricted, human populations would continue to grow until they would become too
large to be supported by the food grown on available agricultural land. In other words, humans would outpace their
local carrying capacity, the capacity of ecosystems or societies to support the local population.
As a solution, Malthus urged “moral restraint”. That is, he declared that people must practice abstinence before
marriage, forced sterilization where necessary, and institute criminal punishments for so-called unprepared parents
who had more children than they could support. Even in his time, this solution was controversial.
According to Malthus, the only alternative to moral restraint was certain disaster: if allowed to grow unchecked,
population would outstrip available resources, resulting in what came to be known as Malthusian catastrophes:
naturally occurring checks on population growth such as famine, disease, or war.
Over the two hundred years following Malthus’s projections, famine has overtaken numerous individual regions.
Proponents of this theory, Neo-Malthusians, state that these famines were examples of Malthusian catastrophes. On a
global scale, however, food production has grown faster than population due to transformational advances in
agricultural technology. It has often been argued that future pressures on food production, combined with threats to
other aspects of the earth’s habitat such as global warming, make overpopulation a still more serious threat in the
future.

DEMOGRAPHIC TRANSITION THEORY

The demographic transition theory is a generalised description of the changing pattern of mortality, fertility and growth
rates as societies move from one demographic regime to another. The term was first coined by the American
demographer Frank W. Notestein in the mid-twentieth century, but it has since been elaborated and expanded upon by
many others.
Demographic transition theory suggests that future population growth will develop along a predictable four-stage model
following patterns that connect birth and death rates with stages of industrial development.
 In stage 1, pre-industrial society, death rates and birth rates are high and roughly in balance, and population
growth is typically very slow and constrained by the available food supply.
 In stage 2, that of a developing country, the death rates drop rapidly due to improvements in food supply and
sanitation, which increase life spans and reduce disease.
 In stage 3, birth rates fall due to access to contraception, increases in wages, urbanization, increase in the status
and education of women, and increase in investment in education. Population growth begins to level off.
 In stage 4, birth rates and death rates are both low. The large group born during stage two ages and creates an
economic burden on the shrinking working population.

The four stages of demographic transition are explained as follows:

First Stage:
This stage has been called high population growth potential stage. It is characterised by high and fluctuating birth and
death rates which will almost neutralize each other. People mostly live in rural areas and their main occupation is
agriculture which is in the stage of backwardness. The tertiary sector consisting of transport, commerce banking and
insurance is underdeveloped.
All these factors are responsible for low income and poverty of the masses. Social beliefs and customs play an important
role in keeping birth rate high. Death rate is also high because of primitive sanitation and absence of medical facilities.
People live in dirty and unhealthy surroundings.
As a result, they are disease ridden and the absence of proper medical care results in large deaths. The mortality rate is
highest among the poor. Thus, high birth rates and death rates remain approximately equal over time so that a static
equilibrium with zero population growth prevails.
Second Stage:
It is called the stage of Population Explosion. In this stage the death rate is decreasing while the birth rate remains
constant at a high level. Agricultural and industrial productivity increases, means of transport and communication
develops. There is great mobility of labour. Education expands. Income also increases. People get more and better
quality of food products. Medical and health facilities are expanded.

During the stage economic development is speeded up due to individual and government efforts. Increased use of better
technology, mechanization and urbanisation takes place. But there is no substantial change in the men, attitude of the
people and hence birth rate stays high i.e., economic development has not yet started affecting the birth rate.
Due to the widening gap between the birth and death rates, population grows at an exceptionally high rate and that is
why it has been called the population explosion stage. This is an “Expanding” stage in population development where
population grows at an increasing rate, as shown in figure, with the decline in death rate and no change in birth rate.
Third Stage:
It is also characterised as a population stage because the population continues to grow at a fast rate. In this stage, birth
rate as compared to the death rate declines more rapidly. As a result, population grows at a diminishing rate. This stage
witnesses a fall in the birth rate while the death rate stays constant because it has already declined to the lowest
minimum. Birth rate declines due to the impact of economic development, changed social attitudes and increased
facilities for family planning. Population continues to grow fast because death rate stops falling whereas birth rate
though declining but remains higher than death rate.
Fourth Stage:
It is called the stage of stationary population. Birch rate and death rate are both at a low level and they are again near
balance. Birth rate is approximately equal to death rate and there is little growth in population. It becomes more or less
stationary at a low level.

These stages of demographic transition can be explained with the help of diagram given:
Stage I is characterised by high birth rate, death rate and low rate of population growth.
Stage II is characterised by high and stationary birth rate, rapidly declining death rate and very rapid increase in
population.
Stage III is characterised by a falling birth rate, low and stationary death rate and rapidly rising population.
Stage IV is characterised by low birth rate and low death rate with stationary population at a low level.

ROLE OF HUMAN RESOURCE IN ECONOMIC DEVELOPMENT

Modern economists are of the view that natural resources (i.e. forest minerals, climate, accessibility to water, energy
sources, etc.) play an important role in the economic development of a country. A country which has abundant natural
resources is in a position to develop more rapidly than a country that is deficient in such resources. However, the
presence of abundant resources is not a sufficient enough condition to explain all aspects of economic growth.
Economies are created and managed by people. These people must be capable of performing the duties required to
create such an economy. Matters of economic growth and decline hinge on the population. This is called human capital,
and to truly understand the world, we must understand the role that populations play in an economy's growth or
decline.
What Is the Role of Human Capital in Economic Development?
Human capital is the fundamental source of economic growth. It is a source of both increased productivity and
technological advancement. In fact, the major difference between the developed and developing countries is the rate of
progress in human capital. The underdeveloped countries need human capital to staff new and expanding government
services to introduce new systems of land use and new methods of agriculture, to develop new means of
communication to carry forward industrialization and to build the education system. Prof. Galbraith is right in saying that
''we now get a larger part of economic growth from investment in men and improvements brought about by improved
men.''
How Is Human Capital Formed?
Definition of human capital formation: Human capital formation is the act of increasing the productive qualities of the
labor force by providing more education and increasing the skills, health, and notarization level of the working
population.
According to T.W. Schultz, there are five ways of developing human capital:
1. Provision of health facilities which affect the life expectancy, strength, vigor, and vitality of the people
2. Provision of on the job training, which enhances the skill of the labor force
3. Arranging education at the primary, secondary, and higher levels
4. Study and extension programs for adults
5. Provision of adequate migration facilities for families to adjust to changing job opportunities
What Are the Problems of Human Capital Formation in LDCs?
While there are many benefits to investing in the formation of human capital in LDCs (less developed countries), it is not
an easy process. Large populations deal with large issues.
Problems of human capital formation in LDCs include:
1. Faster increase in population: The population of almost all developing countries in the world (including India) is
increasing faster than the rate of accumulation of human capital. As a result, these countries are not making satisfactory
use of sector expenditure on education (which has accounted for 2.5% of LDC GDP over the last five years).
2. Defective patterns of investment in education: In the developing countries of the world, the governments are giving
priority to primary education for increasing their literacy rates. Secondary education, which provides critical skills
needed for economic development, remains neglected. Another problem related to investment in education is that in
the public and private sectors there is a mushroom growth of universities. These universities are a major cost to these
countries. There are also mass failures at primary, secondary, and higher levels of education that result in the wasting of
scarce resources that the country needs for other kinds of development.
3. More stress on the provision of buildings and equipments: Another major problem countries run into when investing
in human capital in developing countries is that politicians and administrators lay more stress on the construction of
buildings and the provision of equipments than on the provision of qualified staff. It has been observed that foreign
qualified teachers and doctors are appointed in rural areas, where there is little use for them. This misallocation of
educational resources can negatively affect economic growth.
4. Shortage of health and nutrition facilities: In less developed countries there is a shortage of trained nurses, qualified
doctors, medical equipment, medicines, etc. Having less availability to health facilities poses a threat to millions of the
people. The people are faced with unsatisfactory sanitary conditions, polluted water, high fertility and death rates,
urban slums, illiteracy, etc. All of these deficiencies affect the health of the people and reduce their life expectancy. This
reduces the growth of human capital.
5. No facilities for on the job training: On the job training (in service training) is essential for improving or acquiring new
skills. The result is that the efficiency of the workers and the knowledge held by the workers causes a growth in human
capital. The competence of the workers is of the utmost importance for the efficient use of human resources.
6. Study programs for adults: Study programs for adults can also be introduced in order to improve a country's literacy
rate. Study programs for adults have been introduced in many under developed countries around the world (including
Pakistan). They provide basic education, which increases the skills of farmers and small industrialists. Unfortunately, this
scheme failed miserably, as the adults showed no interest in getting such training.
7. Halfhearted measures for promotion of employment: Throughout most of the world, the ratio of unemployed or
underemployed persons is very large. To increase employment and reduce under employment, proper investment in
human capital is required. This is visibly lacking in LDCs. 
8. Failure to plan for the best use of manpower: Due to the nonavailability of reliable data, there is little manpower
planning in less developed countries. As a result, the demand for certain skills and the supply of those skills do not
match. The result is that large numbers of skilled and highly qualified workers remain underemployed. The frustration
and discontent among the unemployed and underemployed graduate and post graduates results in "brain drain." This is
when skilled workers leave the country for better opportunities abroad. It is a huge loss in human resources for these
developing countries.
9. Neglect of agriculture education: In LDCs where agriculture is the main sector of the economy, very little attention is
paid to educating the farmers on how to use modern agricultural practices. Unless the farmers are provided agricultural
education and training, they will not be able to raise the agricultural output and balance supply and demand.