Agua, industria y crecimiento económico

Abstract

Water is the keystone of economic progress. While water supplies in themselves are not necessarily sufficient cause for economic progress and expansion, in conjunction with other raw resources, rapid and profitable expansion can occur. As a matter of fact, water supplies are so important to the public and economic welfare that almost universally they are granted by statute the power of eminent domain. Water acts as a catalyst for production. Ever-increasing amounts of water are used as civilization and population levels rise. Industry follows water supply, and thereby attracts population and wealth

In underdeveloped countries the agricultural economy is high on labor and low on capital, resulting in low marginal productivity of labor. As industry develops, income increases; demand for industrial goods expands, and is followed by further industrial development. A reversal then takes place as a high level of production efficiencies is attained. Personal income increases, service industries multiply and Rostow's age of high mass consumption is reached

The most important sources of capital are internal or local. In developed countries savings and investment average 10 to 20 percent of gross national product annually, while in underdeveloped countries they average 2 to 6 percent

The growth of per capita income is associated with five major factors: 1) population growth, 2) capital accumulation ...(AU)