The Problems of Developing Countries

The relationship between geographical area, population size, and the level of economic efficiency and the rate of development is one of the leading topics of current economic discussion. The issue has gained considerable political and practical importance because of the various efforts being made among both the developed and the under-developed countries to work out new patterns of market alignment. This paper concentrates attention upon the analysis of the way in which the factor of size in respect of both population and area can affect the nature and rate of development. Section I differentiates between the economic and political concepts of ‘nationhood’. Section II examines the nature of the supposed links in the relationship between size and the level of economic efficiency. Section III works out the concept of optimum size of a nation, taking into account the crucial economic factors. Section IV examines the various possible types of effects which differences in size along with other factors can exert upon the dynamic processes. Section V examines the special problems of under-developed countries vis-à-vis size. It briefly deals with the possibilities and implications of market expansion programmes. Section VI draws attention to the economic consequences of the pursuit of a policy of aggressive ‘nationhood’.