Help to PM: (Prof. A. O. Hirschman) Without denying the capital as - TopicsExpress

Help to PM: (Prof. A. O. Hirschman) Without denying the capital as a scarce resource in an underdeveloped economy, he contends that the real scarcity or the ultimate bottleneck is not the physical resources themselves 'but the ability to bring them into play'. It is the limited ability to effectively utilise resources or the lack of fundamental decision-making ability which represents the real constraint on economic development. The aim of the development effort or policy should, therefore, be to follow the sequence of expansion that will maximise induced decision-making and hence induced investment in the economy.

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