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INCOME DISTRIBUTION AND GROWTH IN LDC8217S

ic and quantitative goals in these fields and not in terms of average per capita income. Also, government should put more concerns on production and better distribution should be brought together and not treated separately. This invariably means that employment should be treated as a primary, not secondary, objective of development since it is the most powerful means of redistributing income in a poor society. “Capital should not be concentrated in a small modern sector, enjoying high productivity and savings, but spread thinly over a wide segment of the economy-through public works programs, if necessary, and even at the risk of lowering the average productivity of labour and lowering the future rate of growth.” The poor societies have to face this choice squarely. They have a limited amount of capital. They can either raise substantially the productivity of a small part of the labour force in the modern sector while leaving a large part unemployed or settle for a lower average productivity but full employment. Although relatively slow, but these definitely can lead to a continuous economic growth to the country.CONCLUSTION In conclusion, there are lots of possible government policies which can help to improve the economy in developing countries. The government in LDC’s should put the strategies on lowering the inequality of income distribution and also lowering the unemployment and underemployment rate within the country. A relatively equal income distribution can lead to many positive notes such as increase in productions, employments, and indirectly increase the local investments. Increase in productions, employments and capitals in the country thus enable a growth in the economy and therefore, the government should make careful decisions keeping in mind that of the impact these factors have on the societies. ...

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