The remedial measures mean removing the obstacles or barriers to economic development. Removing these barriers is a difficult task for economic planners. The following are the steps should be followed for economic development.
Increase in Per Capita Income:
Per capita income should be increased to increase saving, capital, and the rate of investment and capital accumulation which will increase capital resources. The agriculture sector and the industrial sector must be developed to increase the per capita income and to raise the standard of living.
Equitable Distribution of Wealth:
There is unfair distribution of wealth in LDCs which has created two classes rich and poor. So there is need to reduce income disparities to overcome economic backwardness.
Expansion of Technology:
Use of modern technology is necessary for rapid increase in agriculture; industrial, and mineral production land, therefore, for rapid economic development.
More attention should be paid to import industrial raw material and industrial machinery. The commercial policy of the country should be so evolved that it raises foreign There is a need for training of labour and entrepreneurs which will increase the production efficiency.
Control Over Population:
There must be effective control over population which is becoming burden on productive resources.
The secret of industrial development of Japan’s economy is high education rate which helps in abandoning unnecessary traditions and customs.
Stable Monetary and Fiscal Policies:
Stable monetary and fiscal policies bring rapid increase in economic development There is a need to control inflation.
Human capital refers to the productive qualities embodied in the labour force. The productive qualities are education, training, health, skill and nourishment. It is said to have more human capital and greater is the productivity. Having more human capital is similar to have more material capital to work with them.
Capital accumulation or capital formation refers to the process adding to the stock of capital. Most theories of economic development emphasize that capital accumulation is a fundamental part of the development. Economists agree that a major requirement for development is accumulation of real capital.
Social Overhead Capital:
Social overhead capital is also called infrastructure. It may be defined as “Capital goods used directly or indirectly in the production of goods and services e.g., Roads, Railways, Highways, Communications, Transport, Electric power and Research centers Improved Social Overhead Capital increases economic growth. It provides incentives to the organization for investment.
Social and Religious Institutions:
The favorable social and religious institutions promote the economic development of the country. If these institutions preach contentment with the existing state of poverty and ignorance, the people will not participate in any new program of development. Similarly, if the social set up of the society looks down upon certain professions, it will lead to the wastage of material talent.
Political stability plays an important role in economic development. There should be a stable government to implement development programs. Political instability shatters the confidence of the people and those persons concerned with industrialization.
Efficient and intelligent organization can coordinate factors of production and noble, honest, hardworking management and administration cannot only minimize cost of production but also increase quality and quantity of production.
Keeping in view the above discussion we can conclude that the process of economic development is directly influenced by economic, social, political and administrative factors, to raise the rate of economic growth. Government should take serious steps by making and implementing the sound economic plans, according to Ragnar Nurkse, “economic development has much to do with human endowment, social attitudes, political conditions and historical accidents. Capital is necessary but not a sufficient condition of progress”.