THE SOCIAL TRANSFORMATION
FOR NATIONAL DEVELOPMENT

P. C. pMAHALANOBIS
Indian Statistical Institute Calcutta - India

. INTRODUCTIG

1.1. The problem of improving the material and cultural
conditions of the poorer countries of the world has been engaging
 serious attention during the post-war period. The desire for
political independence is rapidly increasing and will continue
to grow in the countries still under colonial rule. Also, more
and more countries are becoming and will become politically
independent. With the gaining of independence, it is being increasingly
 realized that political freedom is necessary, but is
not enough. In most of the underdeveloped areas, attention
is being given increasingly to economic development to improve
 the level of living, by increasing the flow of goods and
services and by expanding facilities for gultural amenities. It is
also being increasingly appreciated that rapid economic growth
can be brought about only by an increasing accumulation of
capital to supply modern tools and machinery for new and
expanding productive activities which would, in time, solve
problems of unemployment or under-employment, and would
also continually improve the level of living. Such accumulation
of capital would call for increasing domestic savings, and the
utilization of such savings for productive purposes. The choice
of productive activities (that is, of investments) must also be

14} Mahalancbis I - pag.