Question

''Based on historical experience, very poor countries should adopt central planning, or at least very heavy government involvement, for their economies"

Answer 1

Most of the government in the poor countries played an important role in proper policy formulation and its implementation. This will help to reduce the problems which the economy faced. This government intervention will be more reliable and valid and it will function on the basis of the current indicators. The government can efficiently functioned for the development of the state that a private enterprise. There should be equality was expected through this state intervention. The government will protect the natural rights and the human rights also. This will ensure long term development and growth in the nation. The poor countries were characterised with high rate of unemployment and poverty. The living standard of the people was very pathetic. Thus the government will form policies on the basis of these issues. Thus the economy will attain growth were gradually. State will protect the right to life, liberty and also to possess the property rights.

In socially, economically, politically and culturally the nation will tried to protect the rights of minute sector of the nation to ensure growth and development. Equal distribution of income, providing public utilities efficiently, prevention of externalities, management of economic conditions etc. is the major aspects of the nation to restore the development path. Effective planning and proper implementation of productivity in all economic sector will increase the overall development plan of the country.