ABSTRACT
This chapter attempts to describe the growth of savings, the sources of investment finance and the present state of the financial system. The principle of planning was written in to the 1961 Constitution, of which Article 129 stated that ‘economic, social and cultural development is based on a plan. The planners then estimated a plausible rate of domestic savings and, by subtracting this from the required investment, calculated the foreign capital requirement. During the 1960s a crucial subject of dispute between the politicians and planners was the degree to which the plans should direct the investments of the private sector, and the relative roles of public and private enterprise in the development process. A crucial assumption which was made in the five-year plans was that as GNP rose an increasing proportion of it could be devoted to investment.
