| dc.description.abstract | Developing countries are characterized by weak production structures and an imbalance between capital and consumer industries, with the latter prevailing. This consumer orientation is evidenced by a high marginal propensity to consume, increased marginal propensity to import, and a low marginal propensity to save. There is also a lack of resources and investment opportunities in the industrial sector, leading to heavy reliance on agriculture, where most of the population lives, resulting in seasonal and disguised unemployment. Additionally, these countries suffer from imbalances in utilizing production factors, reflected in underemployment and insufficient capital equipment, which lowers productivity. Compounding these issues are social, financial, and tax system deficiencies, a balance of payments deficit, and high population growth rates.These developmental obstacles, combined with the strong desire of the populations and governments of these countries for economic progress, necessitate the adoption of accelerated economic development strategies through economic planning. This planning should set achievable goals and include mechanisms to mobilize resources, enhance agricultural productivity, and reinvest economic surpluses, with a significant portion of consumption resources allocated to capital goods production. Arthur Lewis emphasizes that planning in developing countries requires much greater government engagement than in developed nations, as appropriate planning methods are essential for guiding long-term development. | |
