The shortage of capital has always been viewed as one of the crucial bottlenecks in the process of economic development, although recently the emphasis seems to have shifted to the shortage of skilled manpower. Whether it is defined to be only physical or also human – i.e. training, education, and health – capital formation still constitutes the cornerstone of the theory of, and plans for, economic development. Almost by definition, underdeveloped countries are short of capital.
Problems of Capital Formation in Underdeveloped Countries (1953)