Financing economics development

Abstract

The process of economic development has many aspects and on each one of these there is considerable amount of controversy among economists. From the concept of economic development to the suitable indicators for its measurement and from factors of economic growth to the models of development there is a wide spectrum of opinions. However, whatever indicators of development one might choose to emphasize and whatever importance one might attach to one factor or the other, finance remains an underlying requirement. Plant and machinery must be paid for, and so should the development of managerial and technical expertise. Similarly, the need for finance may be seen as essential for the task of altering or adapting cultural attitudes and creating environment and creating a general economic conducive to sustained economic development. The rate of economic development, however measured, is constrained by the availability of financial resources. The process of economic development involves mobilization of adequate financial resources, their conversion into the requisite factors and efficient deployment of those factors. All these require a supporting institutional set up.