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 engag- 
ing 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 in- 
creasingly 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 im- 
prove 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.