Planning can break the vicious circle of poverty.

Question

State with reasons whether you agree or disagree with the following statement:

Planning can break the vicious circle of poverty.

Answer 1

Yes, I do agree with the statement. 

• In a developing country, poverty becomes both, the cause and effect of poverty. 
• In poor or developing countries people earn less, save less, productive investment is low and so their earnings are low. 
• This is called the vicious circle of poverty. 
• Through economic planning, this vicious circle of poverty can be broken. The government through planning raises the rate of investment. 
• This leads to a rise in profit, a rise in incomes and savings, and then again more investment. 
• Hence, Planning can break the vicious circle of poverty.