Object: Study week on the econometric approach to development planning

1074 PONTIFICIAE ACADEMIAE SCIENTIARVM SCRIPTA VARIA 
he is using the land efficiently, and to secure to him the right 
of fair compensation upon termination of the lease for all unex- 
hausted improvements made by him. It is also necessary to 
eliminate the unproductive consumption of the surplus from 
land by intermediaries and landlords, who have no productive 
functions, by abolishing their rights. 
5-4. The question of economy of scale of production may, 
admittedly, introduce difficulties. The breaking up of large 
farms may lead to a reduction of the surplus; however, the 
beneficial effects of greater equality of income and wealth may 
compensate for the other loss. Also, in countries where there 
are too many cultivators, often with scattered plots, further 
breaking up of the holdings may easily have adverse effects 
on the efficiency of production. In such a situation it may be 
necessary to promote consolidation of holdings either volun- 
tarily through cooperative, or by legislation, or both. Redi- 
stribution of land has limits and is a complicated question. It 
is wise to recognize that steps taken at one stage may have to 
be reversed at a later stage. Appropriate measures must be 
devised to suit the needs of each country at any particular stage 
of development. The basic aim would always remain the same, 
namely, to increase the agricultural surplus, and to use it for 
productive purposes, as effectively as possible, in speeding up 
the growth of the economy as a whole. 
5.5 Removal of social, economic, legal and political bar- 
riers: The underdeveloped countries have the very difficult 
task of achieving a far faster rate of growth than had been 
achieved by the most advanced countries during and after the 
industrial revolution. It is indispensable that every one in the 
working age-group should be fully utilized to increase the na- 
tional product. It is necessary, therefore, to remove all social, 
economic, legal and political barriers which prevent individuals, 
or groups and sections of individuals, to become fully produc- 
tive. Conditions are worst in a country stratified by caste, 
colour, creed or language. and where whole sections of people 
[14] Mahalanobis I - pag. 6
	        
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