Prerequisites Of Economic Development

Economic development is a socio-economic process. Before starting this process some pre-conditions and positive environment is needed. The preconditions of economic development are called the elements of economic development. The pre-conditions are as follows –

1. Natural resources:

One of the important pre-requisite is natural resource. The country which have more natural resources there is more favourable condition for development. The country which has no natural resources cannot think of rapid economic development.

2. Human resources:

Rapidly growing population is an obstacle in the way of development but controlled, educated and skilled population can increase the development process, because skilled and educated population is called human capital. And it can ensure the proper utilization of natural resources.

3. Capital formation:

Scarcity of formation of capital is an important hindrance for economic development of any country. Savings and formation of capital are inadequate because of per capital income is too poor. When income and savings increase capital also increase.

4. Entrepreneurship class:

The role of entrepreneurs is great in private sector for economic development. The main role of entrepreneurs is establishing mills and workshops, especially in large industry in public sector, and to bear the risk and uncertainty.

5. Technology:

Economic development is greatly depends on production, and much production fully depends on technological development. It technology society. The amount of production is very limited and scarce in this stage. Modern science and technology is not applied in production sector in this stage. As a result per-capital income is very low. In this stage savings, investment and capitalization rate is tremendously low. Social disorder and political uncertainty is existed in the country. For that above reasons in the traditional society, the rate of economic development is very low.

6. Pre-take off stage:

Pre-take off stage is the starting point of economic development. The knowledge of science and technology spread out and rate of literacy increased in this stage. A group of entrepreneurs are ready to take any types of risk for capital investment. In pre-take of stage 5% of national income is applied in capitalization. Totally economic development is occurred here but not in satisfactory stage. Kenya, Thailand, Cambodia are in the pre-take-off stage.

7. Take of stage:

Take of stage is the fighting stage of economic development. In this stage employment and newly invented industries are increased. For greater employment and savings as well as capital are increased. 5-10% of total national income is applied in this stage. Generally one country stays in this stage for 20-30 years. India, Philippine, Chile is the models of this stage.

8. Self Sustaining Stage:

Self sustain stage is the highest stage in the optimum level of economic development. In this stage one country fully stops its import and produces it. They don’t take any loan. Here production rate is faster than population growth rate. 10-20% national income is applied for capitalization. It takes 60 years for one country to reach this stage.

9. Mass consumption:

When the consumption is more than optimum level is called mass consumption. In this stage many industrial institutions are engaged in luxurious product. Here over consumption of foods, cloths, and commodities are noticeable. USA, UK, Canada, China, Japan has reached in this stage.

How to Use the Six Thinking Hats Part Sixteen

Now that you simply have a transparent and comprehensive understanding of the Six Thinking Hat drawback resolution thought method, it\'s necessary to concisely signifies however these hats integrate and work along to formulate solutions and new ideas.

The social control blue hat (Director) more and more allocates thinking time to every of the six hats together with itself. usually the order of thinking would transition within the following way:

Blue Hat: Defines and descriptions the matter beneath question and guides the opposite hats through the thinking method.

White Hat: Collects all the facts, knowledge and statistics relevant to the matter. it\'ll then use this data to achieve a group of attainable logical neutral solutions.

Red Hat: Intuitively reflect on the solution and select the most effective course of action supported its feelings and hunches.

Black Hat: Pessimistically and the realistically confronts the solutions pinpointing holes, dangers, flaws and inadequacies within the planned plans.

Yellow Hat: appearance on the far side the black hat’s pessimism and brings to lightweight logical optimistic ideas and plans of action which will facilitate counteract these dangers.

Green Hat: Take solution and idea brought forward by the yellow hat and enhances them during a artistic, distinctive and original method that helps make sure that they succeed as planned.

Blue Hat: on balance hats have had their say, the blue hat continues to flow into between the hats during a logical method. it should for example focus its attention on the red hat for additional intuitive insights supported the inexperienced hat’s artistic ideas. Or it should raise the white hat to collect additional facts and data regarding the risks that the black hat delivered to mind. once that it should raise the yellow hat to motivate some logical positive solutions supported this new found information and data.

No matter however the blue hat decides to synchronize the thinking method between the hats, it\'s necessary to recollect that the blue hat is often seeking to get a world perspective and understanding of the matter — serving to to wake up lightweight the foremost ideal answer attainable.

By being presently attentive to this objective in your mind’s-eye, can assist you to cycle through the Six Thinking Hats additional effectively.

Final Thoughts


The Six Thinking Hats area unit a multi-dimensional tool which will dramatically improve the potency and effectiveness of your thinking strategies.

Whether for drawback resolution, overcoming challenges, creating higher business choices or thinking additional effectively regarding your tutorial subjects, the Six Thinking Hats can assist you realize the solutions, answers and opportunities you wish to stay you previous the sport.

Now the selection is yours. you\'ll either simply leave your hats hanging there on the coat-hanger grouping dirt, otherwise you will systematically and persistently use them to boost the standard of your life.

I hope you enjoyed this post. If you\'ve got had expertise utilizing the vi Thinking Hats in life or business, than please share your experiences within the comments section below.

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