What is low capital formation?
Low capital formation is the prevalence of having savings lower than your debts. This often occurs during recessions in the economy.
I thin that we can control of low capital formation in the under developing countries. control the poverty, decrease birth rate, saving into bank, decrease international demonstration effect, improve infra structure increase entrepreneurial abilities, decrease unproductive expenditures, decrease unequal income distribution, decrease inflation, problem of money marker and decrease market imperfections.