1. Human Resource
2. Technical Know – how
3. Political Freedom
4. Social Organization
5. Corruption free administration
6. Desire for Development
7. Moral, ethical and social values (viii) Casino Capitalism
8. Patrimonial Capitalism
Non – Economic Factors: ‘Economic Development has much to do with human endowments, social attitudes, political conditions and historical accidents. Capital is a necessary but not a sufficient condition of progress.’
(I) Human Resources:
1. Human resource is named as human capital because of its power to increase productivity and thereby national income.
2. There is a circular relationship between human development and economic growth.
3. A healthy, educated and skilled labour force is the most important productive asset.
4. Human capital formation is the process of increasing knowledge, skills and the productive capacity of people.
(II) Technical Know – how: As the scientific and technological knowledge advances, more and more sophisticated techniques steadily raise the productivity levels in all sectors.
(III) Political Freedom: The process of development is linked with the political freedom.
(IV) Social Organization: People show interest in the development activity only when they feel that the fruits of development will be fairly distributed.
(V) Corruption free administration:
1. Corruption is a negative factor in the growth process.
2. Unless the countries root-out corruption in their administrative system, the crony capitalists and traders will continue to exploit national resources.
(VI) Desire for development: The pace of economic growth in any country depends to a great extent on people’s desire for development.
(VII) Moral, ethical and social values:
1. These determine the efficiency of the market, according to Douglas C. North.
2. If people are not honest, market cannot function.
(VIII) Casino Capitalism: If People spend larger propotion of their income and time on entertainment liquor and other illegal activities, productive activities may suffer, according to Thomas Piketty.
(IX) Patrimonial Capitalism: If the assets are simply passed on to children from their parents, the children would not work hard, because the children do not know the value of the assets.
