The balanced growth theory emphasized that all sectors of an economy should be developed simultaneously and no sector is discriminated against. In a way, it will promote balanced regional development.
Balanced development will create external economies. The benefits created in one sector will push the economy into another sector and will provide a boost to the new industries from existing industries.
The balance growth approach will create a social overhead capital. When different industry will develop simultaneously a social overhead capital will generate for the promotion of various sectors.
It will reduce the dependence of underdeveloped economies on external economies as this process leads to a self-generated less dependent economic structure.
Apart from the above merit mentioned by some economists, some development thinkers like Singer had a contrary view as he had stated that " Balance growth can neither solve the problem of underdeveloped countries nor do they have sufficient resources to achieve balance growth."
Some more criticism is as follows:
The balance growth theory is more suitable for developed countries than developing countries as developed countries can effectively implement a balanced growth process as they possess sufficient resources.
secondly, Disproportionation in the factor of production due to a deficiency of capital and surplus manpower. In many developing countries too much of manpower are employed against too little capital, these types of economic structure will be a hurdle in achieving development goals.
Comments
Post a Comment