Disguised Unemployment as a Saving Potential for LDCs

A funny thing happened on the way to economic utopia. The unemployment scenario is quite austere in underdeveloped economies. With every passing day, we are heading towards a more insecure situation. In such an economy the scope of employment is limited implying a large section of working population tends to remain unemployed, either disguisedly or openly. Theories are there who view these unproductive workers as a source of savings potential. Withdrawal of workers from agricultural sector to industrial sector can augment the production for the purpose of economic development. Consideration of these physically unemployed workers can boost the capital formation in under developed countries, enlarging the scope of economic development. Economists are putting forward various speculations for their proper utilization. Whatever be the precise interpretation of this concept, there should be no doubt that development policies must give a high priority to a fuller mobilization and utilization of their most abundant factor of production, i.e.; unskilled labour.