Discuss those factors which influence the economic development of the less developed countries? or What are the economic determinants or prerequisites

Factors of Economic Development :-
There are various factors which are responsible for economic development in any country. These vary from country to country. Anyhow following are the important factors which influence the social structure of any country. There are following :

1. Natural Resources :-
Natural resources play an important role in the economic development of any country. Land, rivers, forests, mountains minerals and climate is also included in natural resources. If any country is rich in natural resources, it can improve its economic condition more rapidly. On the other hand in the under developed countries, there is a shortage of natural resources. It is one of the cause for their backwardness. Another problem is that poor countries are unable to utilize these resources properly.

2. Capital Accumulation :-
Capital accumulation means to increase the real assets in the economic development. In advanced countries the rate of saving and investment is high, so it increases the rate of employment and rate of development in these countries. While in the poor countries due to low per capita income, saving and investment is low, which causes low production and unemployment. Another problem is that capital is less productive in the underdeveloped countries as compared to the advanced countries.

3. Power Resources Energy Resources :-
Energy resources like oil, gas, electricity, coal and nuclear energy play an important role in the economic development. The importance of these resources has been changing with the passage of time. Energy resources are very useful in increasing the production of various sectors like agriculture, industry and transport.

4. Labour or Manpower :-
Labour is an important factor for the economic development of any country. If any country birth rate is high and the size of resources it will be an obstacle in the way of development. On the other hand if country is under populated it is also not favorable for the economy. If the size of population is according to the size of natural resources, people are educated honest, efficient and skilled it will be helpful for economic development. The per capita income, rate of saving, rate of investment, rate of employment and rate of development will be high.

5. Education :-
Education plays very effective role in increasing the rate of development in the country. Today expenditure on education is considered an investment. In less developed countries the rate of literacy is very low which is the main cause of low production. Now the government of less developed countries have realized the importance of education and is allocating a sufficient amount every year for this sector. But unluckily our standard of education is not improving and rate of unemployment is increasing day by day due to many reasons. The Government of underdeveloped countries should take effective measures to promote the technical and professional education in the country.

6. Transport and Communication :-
According to modern economist transport and communication is a key to economic development. Transport means Railways, roads, Air and water transport. While post offices, telephone, telegraph, internet, radio and TV is included in the communication resources. This sector of the country increases the internal and external trade and reduces the cost of production. It expands the market. Cheap and quick means of transportation and communication create the sense of brotherhood and unity among the people.

7. Technology :-
Technology means the use of latest inventions in the production of goods. Technology plays an important role in the economic development. The less developing countries are poor because there is a lack of technology and capital. There is also a lack of technical skill and we are using old methods of production. So our national product is very low. Now our government and masses has given more importance to the technology. Now in various sectors we are using the latest machines to improve our production. We also paying special attention to information technology.

8. Social and Cultural Factors :-
If the attitude of the people is positive towards development then they can made rapid progress. For the economic development it is the necessary that people should leave the useless customs and they start thinking about their economic conditions.

9. Administrative Factor :-
An effective, honest, strong administration can give big push to the economic development. Corrupt , dishonest and inefficient administration is an obstacle in the way of economic development.

10. Political Stability :-
Stable government can play effective role in increasing the rate of development in the country. It can introduce many reforms and can prepare the development plans. In less developing countries political instability has also reduced the rate of development in the country. The political unrest is one of the main causes of low rate of development in the underdeveloped countries.