ABSTRACT
This chapter considers certain problems of development in underdeveloped areas in Yugoslavia which have imposed themselves for solution as a result of the country's post-war economic growth. A dynamic economy with a considerable rate of economic growth appears to create much sharper inequalities in regional development than a quasi-stationary economy or an economy with a slower pace of growth. Experience has shown that a certain degree of centralized economic development is of great importance for the proper spatial distribution of productive forces. The development of economic science and the possibilities of quantitatively recording and expressing economic dynamics have reached a level which makes it unjustifiable to allow uncontrolled forces to determine the distribution of productive forces in time and space. The economy of an underdeveloped country is composed, as a rule, of the three above-mentioned economic sectors which differ in level of technology and hence in level of productivity.
