After the World War II, modern capitalistic economy is shifting from "laissez faire" economy to projecting. In our country, the reconstruction planning has been projected, and now area planning has been promoted. Hokkaido may be developed to attract the surplus population in the interior of the country. At 1953 the personal income per head in Hokkaido is \69028 and 1115 per cent of average income at whole country. This is higher than one of many district. The economic undevelopment of Hokkaido is illustrated such as follows-First sparse population, secondly capitalistic dependency to Honshu. For the economic development of this district, we should not endeavour to attract the surplus population simply, but to increase labor productivity by reinvestment. The Cold Climate is not the fatal obstacle to develop the industry. The personal income per head of Switzerland and North-European Countries are higher than one of the South-European Countries. These countries do not depend upon agriculture and mining but upon manufacturing industry and commerce. The industrial structure of Hokkaido is similar to one of the Switzerland. Tomakomai and Muroran district is most blessed with climate and transportation, so that chemical and iron industry has developed. At Asahikawa and Kitami district, the climate is more cold than Muroran, and the industry like as sugar-industry has been developed to help the agriculture. These industry has been operated seasonally and so the labor productivity is comparatively low as a year. Still more, as the other less developed district the laborer do not work very hard and has been contended with low standard of living. To develop this district, we should promote the minute industry by small firms to satisfy the domestic demand in Hokkaido. Thirdly Kushiro and Obihiro district is subject to very bad condition in view of climate and transportation, so that this area will be developed most behind. The aim of development should be to increase the national income, so that the industrialization is most important, because the sightseeing is nothing but the removal of national income. To increase the labor productivity we should not invest to agriculture but to industry. To complete the harbor equipment and road, we should depend on government investment, But the development of industry proper should be entrusted to private industry in view of capital efficiency. To stop the escape of capital, we should decrease the tax for fixed capital and provide the capital with low rate of interest. Thus, the effective demand will be increased, the industrial structure will be developed along with the theory of national income growth. The foreign trade is relatively small scale and the inter-communication with Honshu is relatively large Hokkido imports the industrial product and exports the raw materials. The agricultural population do not increase since 1945, the industrial population has increased steady rate of growth, the commercial population has increased rapidly, the personal income per head of agriculture has remained unchange since 1948, the industrial income has showed steadily growth, the commercial income increased rapidly. Comparing the labor productivity of manufacturing industry, Hokkaido is superior to Honshu, at paper-manufacturing, lumbering, metal-industry, glass-manufacturing and provision, industry. Oil manufacturing, rubber-manufacturing and machinary industry are inferior than one in Honshu. These industry need the enormous fixed capital, so that will not develop without protective policy. In view of transportation, Hokkaido is to be developed as an independent economic district, and after that we should consider the inter-communication with Honshu. And the investment to agriculture should increase the agricultural productivity. For instance, the rice-cultivation is to be stopped in view, of bad climate and special crops should be increased. Our analysis has reached this conclusion by travelling each district and considering the state statistically. The analysis for each industry will be achieved near, future. This analysis is writtened with scientific research expense by the Department of Education.