Full text : 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 unexhausted
 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 voluntarily
 through cooperative, or by legislation, or both. Redistribution
 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 barriers:
 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 national
 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 productive.
 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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