Application of the rule on efficiency cannot be considered enough in the attainment of good economic condition, though people knew how to allocate their scarce (limited) resources efficiently, still solutions of their economic problems are difficult to attain because of the non-economic factors that may hinder economic development. Economic problems are not purely economic in nature, therefore it cannot be solved with the economic solution alone. The success of any development endeavor human factor is still the key. Money and natural resources become useful and productive if they are properly utilized by the people. In order to become progressive, reform on the non-economic factors is needed to aid in the upliftment of economic condition in the case of poor countries. The specific examples of non-economic factors to be reformed are: (1) Negative attitude and values. Peoples with wrong attitude and values cannot hope to improve their own economic conditions likewise with their countries. This is one of the principal causes why they remained poor for many years. Attitudes such as: tardiness, individualism, resistance to change, lack of self-reliance, inefficient in their jobs, do not like to leave their close relatives for better job opportunities, dependent on their parents for support, colonial mentality, nepotism, extravagance, and other similar ingrained habits erode all plans and programs of development. Lavish and unnecessary expenditures and religious affairs like fiestas and weddings make the poor poorer. (2) Defective political, social, and economic institutions. Corruption is more prevalent now than in colonial times. It is generally assumed that public works department and government purchasing agencies are particularly corrupt, with officials who control export and import licenses, collect customs duties and taxes. High government officials, big landlords and business tycoons only serve the interest of the elite. We should not allow ourselves to be influenced by the influential because there might be an instant economic solution but political problem will last for long time. Education is important as a form of investment for future production. The level of man’s literacy will influence the efficiency of his daily endeavor. (3) Unjust distribution of wealth and income. The productive resources of the economy, which is land, belong to the very few privileged group because of the insincere implementation of land reform program. (4) High birth rate. Many poor families have not been receptive to the family planning due to economic, social, cultural and religious reasons. Poor families find it more an economic advantage to have many children. They expect their children to provide security to their old parents. (5) High illiteracy. . Literacy refers to the ability of the individuals to read and write in their own dialects. For economic reasons, peoples in less developed countries have generally low levels of literacy because of extreme poverty. When the children are starving they can not possibly appreciate the value of education.( .(6) Inefficient public administration. Public office is a public trust. Public administration has been generally inefficient in many less developed or developing countries. In spite of the presence of the civil service system, a high degree of nepotism and personal connections still prevail. (7) High rate of unemployment. The labor force is extremely underutilized in the less developed countries. Many are idle and others work only part of the year. When we succeed in the reform of the non-economic factors economic development is not difficult to attain.
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