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KMID : 0615219740010010059
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Journal of Kwangju Health
1974 Volume.1 No. 1 p.59 ~ p.87
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THE FUNDAMENTAL STRATEGY FOR THE ECONOMIC STRUCTURAL IMPROVEMENT ON UNDERDEVELOPED CONTRIES.
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류시명
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Abstract
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It is difficult for underdeveloped countries to generate motive po-wer of growth through the structural change of their economic constitution at the stage of their development, as they have been buried for ages the structural stagnation and accumulative vice circulation. And the poorer, underdeveloped countries, which on the average are develop-ing more slowly, form, however, much the larger part of the world; again on the average, the population growth has been increased explosivera-pid.
The population reproduction rate is of cruciaI importance for the economic planning in underdeveloped countries, If fertility does not decrease simultaneously, the rate of natural population increase will be to rise. Arapid increase of the population, by requiring increased investment merely in order to maintain the standard of living at present levels, will tend to hamper and slow down economic development. This implies that a given rate of development will require greater sacrifices.
The plan of the economic development should, therefore, include population policy, aimed at controlling fertility. A successsful birth control campaign will be needed already to prevent the rate of natural population increase from rising.
The system into underdeveloped countries is by itself not moving towards any sort of balance between forces, but is constantly on the more away from such a situation In the normal case a change does not call forth countervailing changes but, instead, supporting changes, which move the system in the same direction as the first change but much further. Because of such circular causation a social process tends to become cumulative and often to gather speed a t an accerlerating rate.
The planning of the development is, therefore, required so as to show the national strategic theory the phaseshift on the point of development start and theoretical-policy for the stage shift. For this purpose investment ratio, accordingly, is required ger than the guaranteed "Big-push" and "Critical Minimum Effort" and it must be impregnated into their ecoconomic system. In general there are periods when opposing forces balances once another so that the system remains in rest until1 a "Big-push" is applied at one point or on another. When the whole system starts moving after such a shock the changes in the forces work in the same direction. And this is a cha-nge in anyone induces the others to changes in such a way that these seoondary changes support the first change, with similar tertiary effects upon the variable first affected, and so on.
To these accordingly, the investment on the part of the agriculture, simultaneously, have their significance in the plan of the economic not only as a precondition for raising productivity in agriculture. But as means of shattering the foundations of the old class st-ructure of a stagnating society. Then clearly the economy Would have to increase capital accumulation a t a faster rate by its own efforts or else import the required capital unless the deeds of a growing populastion could be supposed to decline somehow. In order to realize such that underdeveloped countries, are unavoidable foreign capital and loan from foreign countries.
What is the most important that the role of the state in their countries. And the most important in state policics in their countries that they should each and all have a national economic de-velopment policy. Indeed, they should have an overall, integrated national plan, Be-cause theistate must be responsible both for initiating the overall plan and seeing that it is carried out.
It should be cleaan that, if underdeveloped countries really succeed in starting, and sustaining by its policy interferences, and upward cumulative process of economic development, this will provide more and not less space for what of private enterprise such a country possesses or is able to foster.
A main purpose of every national development plan should be to in-crease the total amount of investment aimed as raising the productivity powers of PY, and to define the means by which this can be done.
This plan should be recognize that national integration and regional economic equality is conducive to rapid and sus ed economic growth in the country as a whole. A main purpose of the state policies in the plan, therefore, must be to increase the strength of the spread effects of the development impulses as between regions and between industries.
In the investment plan additional economic effects have to be accounted for. ´There are necessary for determining, in a scheme of rationally motivated priorities, the level of investment, the distribution of investment between different industries and between industry and agriculture as a whole, and so on, and the means by which the required re-sults have to be achieved.
Indeed, a major purpose of the economic plan is to effect the stri-ctest economy with the available resources. Rational economic behaviour is always concerned with allocating scarce resources among alternative uses; this is the same the reality behind the notion of "opportunity cost" If underdeveIoped countries demonstrate a shocking waste of soarce resources in showpiece public work and for investment and production along blind alleys, this is the ,bring out a faiIure on the economic structural inprovement in underdeveloped country.
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