2.2.4.1 The requirements for economic development.
For a Country to be economically developed some requirements
must be combined in a logical and a meaningful relationship. These requirements
or core values are achieved through improved health status of the population
and this would be possible through the following core values for economic
development; An Indigenous Base, Structural Changes, Socio-Cultural
Requirements, Administration, Capital Accumulation, Infrastructure, Suitable
Investment Criterion, Development Of Human Resources, Control Of Population,
Development Of The Export Sector, Institutions (Schumpeter 2003:103).
i) An Indigenous Base: The general
requirements for development include the following: A major requirement for
economic development is that the growth progress must have the domestic base
within the under-developed economy.
The initiative in carrying out development by the indigenous
beneficiaries must arise from within the country. Development cannot be
implanted from outside. (Schneider et al. 2004:24).
ii) Structural Changes: Economic
development requires that LDCs make the structural transition
from being an agrarian economy to being manufacturing or industrial economy
there should be a transition from a traditional agricultural society to a
modern industrial economy involving a radical transformation of existing
institution; social attitudes, and motivations. This change would lead to
increasing employment opportunities; higher labor productivity and the stock of
capital, exploitation of new resources and improvements in technology.
(Schneider et al. 2004:24).
iii) Socio-Cultural Requirements: The
socio-cultural attitudes of the beneficiaries should be changed if development
is to take place .Social organizations like the extended families, religious
dogmas and the rural life should be modified so that they may be more favorable
to development .This is because education leads to enlightenment .It opens
beneficiaries' minds to new methods and new techniques of production .It
enables one to think rationally. (Schneider et al. 2004:24).
iv) Administration: To achieve economic
development, there should be strong competent and incorrupt administrations.
The government should be capable of maintaining internal law and order and
defending the country against external aggression .Insecurity and political
instability scare away investors both domestic and foreign so a good
administration is needed to stimulate economic development and the resources
should be properly allocated into productive projects. (Schneider et al.
2004:24).
vi) Capital Accumulation: Capital
formation is a very important factor in the process of economic development
.Savings should be increased and should be productively invested. There should
be an efficient banking system to mobilize savings and channel them into
productive projects so as to accumulate capital domestic resources need to be
supplemented by external resources and development of the basic infrastructure
is necessary for capital accumulation. (Schneider et al. 2004:24).
vii) Infrastructure: Industrialization cannot
occur in a vacuum. Factories require electricity and natural gas. They need
paved roads, reliable railroads and modern airport facilities to ship supplies
in and finished products out.
Business also needs modern telecommunication systems to stay
in contact in with customers and suppliers and it is difficult for businesses
to develop and prosper in the absence of such communications infrastructure.
(Schneider et al. 2004:24).
Viii) Suitable Investment Criterion: The
pattern of investment should be properly determined in order to achieve
development .Investment should be directed towards the most productive projects
and promote greater external economies. (Schneider et al. 2004:24).
ix) Development of Human Resources: For
economic development to be achieved there should be an increasing number of
person who have the skills, education and experience which are critical for the
economic the political development of a country. Human resources development is
associated with investment in human resources. Universal primary education
should be available to enable individuals to acquire the basic skills required
in the labor market. (Schneider et al. 2004:24).
x) Control of Population: Family planning
programme; marriage age law, economic incentives and disincentives, formal and
informal education, are some of the methods for controlling population.
(Schneider et al. 2004:24).
Xi) Development of the Export Sector: Foreign
exchange can be obtained to import capital for setting up industries that can
provide employment opportunities. (Schneider et al. 2004:24).
xii) Institutions: The most important
institutional reform necessary to generate sustained growth in the lesser
developed parts of our world is the institution of peace. The opportunity cost
of war include the reduced investment and actual destruction of physical
capital and human capital, the use of scarce resources to produce weapons of
war instead of computers, schools, and hospitals, and the security of
knowing that you are working for was there when you wake up tomorrow morning.
(Schneider et al. 2004:24).
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