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How does economic system influence the development process?
The development experience of free market or capitalist and command as socialist/communist countries is extremely different. The evidence considered clearly that:
• Command economies have been not capable to deliver sustained economic democracy and development.
• Just Cuba and North Korea manage a command economy and North-Korea standard of living (SoL) is far lower than its free market neighbour, South-Korea
• The former soviet block of countries are currently transitional economies moving by a command to free market system.
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What are Rostowís policy implications? • LDCs (Less Developed Countries) require aid. The development procedure can stall at the Take Off stage for be short of savings. 15
Explain the concept of scarcity, and the role it plays in decision making
Is industrialisation significant in the process of development? Industrialisation is considered as a major driver of LDC development. Industrialisation arises while a predomin
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