Development Concepts with Shashank Priyadarshi

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 suffici...

W. A. Lewis believed that in underdeveloped countries supply of labour is unlimited at a subsistence wage rate. Economic development takes place when this surplus labour is withdrawn from subsistence sectors and placed in the capitalist sector through capital accumulation. In other words, the transfer of labour from the labour surplus agriculture sector to the industry sector will promote the balanced development of both sectors.  Lewis' model divided the economy into two major sectors i.e. the capitalist sector and the subsistence sector. The capitalist sector is defined as " the part of the economy which uses reproducible capital, and pays capitalists for the use thereof." In the capitalist sector, the use of capital is controlled by capitalists, who hire the service of the labour. On the other hand, the subsistence sector doesn't use reproducible capital hence total productivity is lower than the capitalist sector.  However, industries require skilled labour, accor...

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...