Development Concepts with Shashank Priyadarshi

Some of the criticism of Rosenstein's theory of the Big Push method of balanced development is as follows: 1. Big Push Theory can not be effectively adopted in developing countries a lack sufficient funds, skilled labor, and dynamic entrepreneurship abilities. 2. Maintaining coordination between different sectors is a big challenge, According to H. Myint, It is very difficult to coordinate various plans in developing countries. 3. Developing economy is basically an agrarian economy whereas Rodan's theory of Big Push theory emphasizes on investment in industries which is troublesome in the first stage in many countries that lack basic infrastructure, skilled labor, and raw materials.  4. The theory of the big push method of balanced development is dependent on indivisibility. Too much indivisibility will pose practical problems in the process of globalization which lay stress on flexibility and reforms. 5. Rosenstein Rodan has given limited importance to the role of internationa...

 Rosenstein Rodan's Theory of Balanced Growth  Rosenstein Rodan advocates the "Big Push" theory which empathizes the concept of large comprehensive investment in an underdeveloped/ stagnant economy to boost the  the cycle of economic activities.  The theory states that investing in it by bit or piecemeal will not generate enough force that will push the economy to overcome the obstacles.  The key factor of the theory of Rodan is "indivisibility".  According to him, the indivisibility of inputs, outputs, or processes leads to increasing returns.  He considered social overhead capitals such as power transport and communication to have greater indivisibility features and are indirectly productive and have a long gestation period. They can not be imported rather than internally generated. Their installation requires a sizeable initial lump of investment. The social overhead capital is characterized by four indivisibility as follows: 1. It is irreversible i...