Friends, today I have brought with you another topic of Economics, in fact, a topic of Development Economics. And the name of the topic is Theory of Unbalanced Growth. Before this, I had made a video in which I had told you what the theory of balanced growth says. And what are the different views about it of Rosenstein-Dodden, NERCS and Lewis.
You will also get the link of that in the description. Now, in this, I will discuss what the long question of unbalanced growth theory says and how to attempt it. Without any useless talk, let's start. The theory of unbalanced growth, in simple words, I will tell you what it says and it will be in the whole theory. It says that investment should be done in the important sectors and in the other sectors simultaneously, there will be progress because it will create pressure on the other sectors.
For example, if we develop infrastructure, then the development of infrastructure will encourage that industries should come and set up there. So let's discuss how to write it officially. Let's discuss it.
Flaming, Singer, etc. and others have propounded the concept of unbalanced growth as a strategy for development of underdeveloped countries. Hitchman, Rostow, Flaming, etc. etc. They said that we can develop underdeveloped countries through unbalanced growth and unbalanced methods.
The theory stresses the need for investment in strategic sectors of the economy rather than all the sectors simultaneously. This theory says that there is no need to invest in all the sectors. The key sectors, important sectors, strategic sectors, invest only in them.
The other sectors would automatically be developed through linkage effect. So the other sectors will develop through pressures or linkage effect. How? I will explain it in a systematic way.
Then one definition, you know I try to add a definition in every theory. It gives a very good impression to the teachers when I wanted to check the paper. So I used to think that if the children write this definition, then their definition will be very high.
means there is a chance of getting good marks Development of a chain of equilibria I will say it again Development is a chain of disequilibria that must keep alive then eliminate the disequilibria of which profits and losses are symptoms in a competitive economy They say that development is a chain of disequilibrium that we have to create disequilibrium we have to create unbalance and not eliminate unbalance so unbalance and keep it alive so that other sectors can also be developed. This can lead to development. How?
I will tell you. If the economy is to be kept moving ahead, the task of development policy is to maintain tensions, disproportions and disequilibrium. So, Hitchman believed that if we have to keep developing the economy, then the main task of development policy should be to create tensions, disproportions or disequilibrium in the economy, only then can further move. How? Let's discuss it now.
Explanation of the theory. Explaining. I have written the spelling of explaining wrong here. I will write explaining here.
This happens in speed sometimes. There is pressure, there are online classes, offline classes. Along with that, I have to make notes too. So, I get half an hour in between. So, I write one part and then write the other part.
So, this happens in speed sometimes. Explaining the theory of unbalanced growth in his book Strategies of Economic Development, Professor Hirchman states that creating imbalances in the system is the best strategy for growth. He had written in his book that creating unbalance can lead to country's development. So unbalance is a good strategy.
Owing to the chronic scarcity of resources in less developed countries, LDCs means less developed countries, These must be economically utilized. So, the resources are in short supply, so the resources should be used well. Accordingly, strategic sectors of the economy should get priority in matter of investment. So, the limited money should be invested in strategic sectors only.
It should be invested in key sectors or important sectors only. Growth of these sectors will open new channels of growth in other sectors of the economy. If money is invested in these sectors, then the opportunities in other sectors will also increase. It can be discussed under two headings or two factors.
We will explain why. First of all, external economies. So this theory also, as the balance growth theory used to say, this theory also says that if one sector develops, then it will create opportunities for the other sector. It is called external economies.
If you still want to know more about external economies, then you can comment on me. I have made a detailed video on it. This is the topic of microeconomics.
Unbalanced growth, according to Professor Hitchman, generates externalities. They say that if we unbalance then externalities will be generated. Thus, the growth of industry A must stimulate the growth of industries B, C and so on.
If you develop one industry then the other will get raw material the third will get something the fourth will get something then the rest of the industries will also develop simultaneously. Subsequently, the growth of B and C will link itself to the growth of E and F and so on. If B and C will develop industries then other industries will be related to them and their development will happen.
Thus, existing externalities are explored and fresh once generated. externalities or positive externalities external economies are generated existing economies are explored and the fresh ones are generated more means factories will open some other factories will open on their own some other factories will open on their own understand? next is complementarity second important point growth of output of industry A may generate the demand for the products of industry B and C and also may reduce the cost of these industries if a factory or one industry develops, then it will buy goods from other industries, they will also get development, and will sell goods to other industries at a low cost. So, the cost of production will be reduced. These are the technical complementarities which stimulate the growth of related industries, following the strategy of unbalanced growth.
Following, I will write it down. Following the strategy of unbalanced growth. Following the strategy of unbalanced growth.
So, if it continues in this way, then it will be able to grow So, while following the strategy of unbalanced growth, the growth will be stimulated in the industrial sector. Thus, it is through the externalities and technical complement trees that investment gets stimulated from one industry to another. From one industry to another industry, the growth will stimulate. Accordingly, the whole economy will develop faster than otherwise. So, the whole economy will simultaneously develop at a faster rate.
Otherwise, if it wouldn't have done it, then the speed would have been less. Richmond classifies investment in two parts. He said that investment can be done in two parts. Do it in any one part of them.
The other sector will develop on its own. First of all, social overhead capital, SOC. Basically, infrastructure comes in this.
SOC is termed as, in many places, social overhead costs are written. Social overhead capital is written. Don't get confused.
Those basic devices without which primary, secondary and tertiary activities cannot function. It says that all those things come in it without which primary, secondary and tertiary activities or sectors cannot work. This calls expenditure on roads, irrigation works, power transport, communication. Without them, which factory will be set up?
Which work will be done? The investment on these projects creates more economies than these projects appropriate. In simple words, by creating more projects, by investing in them, which will not help the other projects in simple words.
This is called Divergent Series of Investment. So, it is also called Divergent Series of Investment through Hitchman. These series are influenced by the objective of social desirability and such investments are undertaken by public agencies.
So, here it is said that investing in this type of sector, increasing this type of sector, Social desirability, our society's desire is to get all these basic facilities And this type of investments are basically done by public agencies or government Second point is direct productive activities, means opening companies here, direct production DPA, DPA are those activities which are a consequence of some investment Which is to produce some good service by investing Add to follow of final goods and services, add to flow, sorry I said follow Of Final goods and services. Whenever investment is made to make flow of goods and services, GDP is increased, then it is called DPA. That means opening a factory or doing some work. This type of investments are undertaken by private entrepreneurs. Who makes this type of investment?
Private entrepreneur does. Remember this. Private entrepreneur makes this type of investment.
Thus, investment in agriculture or industry. If investment is to be made in agriculture or industry, it would be deemed as that belong to If there is an investment in industry or some work is going on in the industrial sector, then we can assume that the investment in industries is called Direct Productive Activities or DPA. Now both SOC and DPA cannot be taken up simultaneously in less developed countries owing to the general lack of resources. Now in all underdeveloped countries, there is a lot of lack of resources. And if there is no resources, then money can be taken up simultaneously in both sectors.
can't be applied. Understand? Initially, we should concentrate on either of two. We have to concentrate on either of two. Understand?
Understand? Initially, we should concentrate on either of the two. The other one would automatically be stimulated through the externalities of complementarities. So, we have to invest in either of the two.
And when we invest in either of the two, then the other sector will automatically stimulate. Hitchman, Thus, suggests growth of the economy in two ways. What does Hitchman do? He thinks of developing his economy in two ways. One is to invest in infrastructure, invest in SOC, and the other is to invest in DPA.
There are two ways. So, the first way is unbalancing the economy through SOC. That means, invest in social overhead costs. That means, develop infrastructure. Growth of SOC, according to Hitchman, would stimulate the investment in DPA.
If infrastructure increases, So if SOC increases, then direct productive activities will increase All investments will be done on their own All investments will be done on their own Do you understand? For example, availability of cheap electricity is expected to encourage the growth of small industries So we can also say that The availability of cheap electricity or electricity or transport communication will be good So the small industries will get a lot of benefits Likewise Development of irrigation works is expected to stimulate the growth of agriculture So if we are continuously developing irrigation facilities and infrastructure Then it will have a positive effect on all other sectors And it will be very beneficial Understood? So if we develop infrastructure, then industries will develop themselves Okay? Next comes unbalancing the economy through DPA If we create unbalance through direct productive activities, then what will happen? Investment in direct productive activities would press for investment in SOC.
If we open industries, there will be demand for infrastructure. Demand for roads, irrigation, transport and communication would increase pressing for greater investment in these activities. If industries open, demand for infrastructure will ultimately increase.
So, infrastructure will be under pressure and it will develop itself. It is through the process of linkages that the economy will grow. So, develop one sector and on the other sector, there will be linkage and pressure and that other sector will develop automatically. This has been tried to explain with diagram.
On X-axis, investment cost in social overhead capital means infrastructure and on the other side, investment cost in DPA means industries etc. So, unbalanced growth strategy can be explained with the help of diagram. Investment in SOC is shown on X-axis while investment in DPA is shown on Y-axis. According to this, you have to write in the paper.
And, BB and CC are called Equiproduct curve. Equiproduct means Equal product is being made on this whole curve. Did you understand? Indicating various combinations of SOC and DPA corresponding to a given level of output or national income.
That on a given level of output, All these curves are being made on a given level of output. Okay, then it is called Equiproduct curve. Higher the curve, greater the level of output. The higher it goes, B, C, the higher it goes, the higher the level of output will be. Growth process may be explained by initially making investment either by DPA or SOC.
So we can initiate the growth process, we can start. Either we invest in DPA or in SOC, by investing in them, we can take the growth process forward. It is because Hirschmann assumed that in underdeveloped countries, SOC and DPA cannot be expanded simultaneously. You know that underdeveloped countries don't have enough money to invest simultaneously in both the sectors. Therefore, underdeveloped countries may choose either to invest first in SOC and create unbalance in DPA or first to invest in DPA and create imbalance or unbalance in SOC.
So, either of these two sectors have to invest and create unbalance for the other sector. They have to create pressure on it so that it develops. The former method is known as development via excess capacity of SOC. means if we increase the investment in SOC then it is called development via excess capacity of SOC if we do it in DPA then later is known as development via shortage I have written the spelling of shortage wrong here I will write it again here I told you that sometimes it happens in speed so development via shortage of SOC, investment will be done in DPA thus the growth process can be explained in two ways so I have explained in both ways and the explanation of this diagram is connected to this explanation so let's start development via excess capacity of SOC If you invest a lot of money on social overhead capital or infrastructure, then what happens?
Under this, the development takes when the expansion of SOC reduces the cost of infrastructure in transport, power, etc. So when we invest money on this, then transport, communication, power etc. will become cheaper. This encourages the investment in DPA. If we make good infrastructure, then there will be pressure on industries that they work there and do something.
So this will develop a lot of direct productive activities. It becomes clear from the given figure if investment is made in social overhead capital, the economy will follow DEGHK. as its course of development. I will tell you what DEGHK is.
Now look at the diagram above. Here is SOC, here is DPA. If we invest in SOC, then what will be the course of development? Look carefully. First of all, we were at D point.
We increased investment in SOC, so it went from D to E point. Now due to investment in infrastructure, our pressure will create in the other sector, DPA. So the investment in DPA increased till here.
Did you understand? Till F. Then what happened? F. balance ke liye phir wapas idhar aay, phir humne SOC me investment ki to G se H pe chalegi, jab ispe investment ki phir se udhar investment badgiye aur balance hoke phir K pe aage, samajhi baat, to ye system aise hi chalta rahega, idhar investment ki phir unbalance hua, phir idhar investment wahi phir unbalance hua, to hum aise karte karte dusri curves pe shift hote jaare, higher higher curve pe, iss cheez ko explain kiya hua hai, to iss ko explain karte hain, increase in the investment in SOC from D to E will increase from D to E induce greater investment in dpa up to point f because transportation power etc will become cheap and are now easily available i will explain to you that we have increased from d to e point investment in social overhead capital now from e to e transport everything became cheap factories have invested up to here up to f so when it will increase we will go higher on the higher curve so the output increased now later when ultimately balance created so it came back to g from f again So once the investment increased and again it came to G from F. The investment increased again and increased here.
And it encouraged more investment. Where? In the other sector, in DPA.
So it went up more to J. And after the balance came down again to K. Did you understand?
This is how it is going. Investment in DPA increases until the balance is restored at point G. So what will happen?
You have gone to the point F. But again it will come to G. And the balance will be maintained.
In other words, the economy will be in the state of equilibrium at point G. However, G is located at a high equi-product curve. G is on the BB curve, which is above the AA curve. This is the B curve.
So, it is above the A curve. So, more output is being made above. Do you understand? And we will talk about C. This implies that increase in the level of output in the economy.
It means that it has been found that the output in the economy has increased. We further increase. Investment in SOC up to point H. If we go to H point, I will explain you first. If we go from G to H point, then encouragement will be on other side of H point and again it will come back to K.
Understood? So now we have to write the same thing in English as we had written earlier. This would further induce investment in DPA from G to J. This induces further investment in DPA until the equilibrium is reached.
to point k on the higher iso profit yeah sorry iso product curve I lost my words profit CC indicating a higher level of output so it will keep going like this we will keep going on higher level of output first it went from here then here then came back it will keep going like this okay so this was if we invest in infrastructure and invest in SOC sector and create unbalance second strategy is development via shortage of social overhead capital so in simple words now don't invest in SOC Now we have to invest in DPA. Under this, development takes place when investment is made first in DPA. If we invest in Direct Productive Activities then what will happen?
The expansion of DPA builds a pressure on SOC. What will happen with this? If we invest in Direct Productive Activities then the pressures created on Social Overhead Capital will be created automatically.
It becomes clear from the above figure if investment is made in DPA, the course of development would be DFG. Now let's go back. If we will invest on DPI, which is given on Y axis, then this course will remain.
First it increased in investment, then it came to the center, and it went here because SOC increased, then it came back here. Again from E to G, again invested here, investment was encouraged in the second, again came back to H. So now we have to do the reverse process. If you have made the diagram first, if you listen to it together, then you will understand it well. We begin by increasing direct productive activities from D to F.
So what we will do is, we will make these direct productive activities from D to F. Now, this will create pressure on SoC and it will go up to E. Do you understand? So this is explained.
This results in an increase in the production cost substantially and DPA producers would realize the possibility of making considerable economies through more investment in SoC facilities. So they will say, let's invest in SOC, let's develop infrastructure. This would force SOC to increase to point E and then where will the equilibrium come? Ultimately at the center point, at G, which is at the higher curve and this higher level of output shows.
We further increase the investment in DPA shifting G to J. So if we shift G point to J point, I will rub this from here. This G point we got.
If we do further investment, then it will increase the investment in SOC further and then it will come back to K point. Let's explain that. This creates pressure for more investment in SOC shifting from J to H.
The equilibrium will be stuck at point K on the higher ISO product curve CC. This shows that this path of growth is indicated by DGK. So this path of growth is indicated by DGK. This growth path is indicated by DGK. So this line indicates that the balance of growth will be created in SOC and DPA.
Now, in this theory, forward linkages and backward linkages come. I will explain this. And these can also come separately in two marks. Creating of unbalances are a prerequisite or precondition of economic growth according to Hirschman.
Hirschman says that the country will progress only by creating unbalance. However, the question arises how to identify the activities with which to create imbalance in the system. So, what are the things that create imbalance?
This necessitates the knowledge of interlinkages across different sectors of the economy. We should know which sectors are linked and how they are linked. We should know about the linkages.
Hitchman classifies these linkages as forward and backward linkages. So, what are these? Backward linkage, forward linkage. Let me tell you this.
Now, backward linkage. First, let me tell you in simple words. A factory opens. Whenever a factory opens, the factory giving its raw material will get encouragement. So, these will be backward linkages.
Growth of a set of industries. stimulates the growth of those industries which supply raw material If I open a restaurant, then I will get the raw material that I need for the restaurant Those businesses will get encouragement Do you understand? Setting up steel plant for example would stimulate the demand for steel, crap, coal and other related goods If you want to open a steel plant, then the demand for the raw material in steel will increase Production of these goods will accordingly increase These are backward linkages So what is called backward linkages? Whenever we industry to make that industry, to provide that industry, the raw material companies demand increases which are called backward linkages. Forward linkages are the opposite.
We opened a factory, now someone else is buying its goods, those factories are getting cheaper, they get encouraged. Forward linkages refers to the growth of certain industries owing to the initial growth of those which supply raw material. If one industry opens, that industry provides raw material, other industries will get encouragement from others. Expansion of steel industry for example will encourage the industries making machine tools etc. using steel as their basic input. Study of forward and backward linkage facilitates the choice of activities through which growth with imbalance should be generated in the system.
So in simple words backward linkage and forward linkage facilitates so that if imbalance is created in one place then investment will be done in another sector. Industries generating maximum linkages ought to be developed first. So those industries which have more linkages, they should first of all develop. According to Hirchman, what does he say?
The intermediate industries such as steel and coal are expected to generate maximum linkages. So they should develop so that development can be done in the overall country. Now, features of the theory of unbalanced growth.
What are the features and characteristics of the theory of unbalanced growth? The main features of the theory of unbalanced growth are discussed as under number one, the theory propagates with a view that accelerating the process of growth for with a view to accelerate accelerating the process of growth investment should be first made should first be made on the key sectors. Main main sectors or main main factories should invest in key sectors or strategic sectors.
Invest in the rest of the sectors. The theory is based on the principle of inducement and pressure. I have already told you this.
it is the inducement or pressure generated by some initial investment that calls for subsequent investment in the other activities or production so it means create pressure by investing in key sectors and create pressure for other sectors third point is the theory of the theory corroborates the hypothesis of big push so it says that big push should be done, it corroborates it so corroborate basically says that don't do bulk investment take care The actual meaning of corporate is taken in different ways in different places. But what it basically says in corporate is that we should basically support that do big investment but in key sectors. Only in important sectors. It is not like the theory of big push that invest money in every sector like balance growth. It is not like that.
Only investment in key sectors. on real life observations. Real life observation is based on that underdeveloped countries don't have so much money that they invest everywhere. The theory recognizes the significance of public sector with regard to SOC activities.
So this is what the government's role in infrastructure should be. Now what are the merits of this theory? Merits of unbalanced growth theory.
Number one, following are some of the notable merits. First comes realistic theory. The theory of unbalanced growth is realistic theory.
The theory suggests appropriate utilization of scarce resources and resources. in less developed countries. LDCs means in less developed countries recognize the scarce resources and tell them that the resources are scarce and they should fully utilize the resources. The considers It considers all aspects of growth planning. It takes all aspects of growth planning.
Develop one sector in a planned manner so that it can ultimately pressurize its development. It is rightly recommended that priority of investment should be accorded to those sectors of the economy which generate maximum linkages. And it is also said here that give priority to those sectors which have more linkages. Second point is more importance to basic industries.
In this, the importance of basic industries is to invest more. The theory underlines the significance of basic industries in the process of growth. This will automatically press for the growth of consumer goods industries.
Encourage steel and coal so that other consumer goods industries get encouragement. Economies of large scale production. The strategy of unbalanced growth generates economies of large scale production.
It says that large scale production will happen on its own. Invest in bulk at one place. Establishing Key industries call for establishment of ancillary generating all round increase in income and employment So this is what they say that we should invest in key industries So the ancillary industries and related industries will start investing in them So the income employment output will increase automatically Also size of the market expands, volume of trade will also increase Benefiting all the industries simultaneously All the industries will benefit from this Next point, encouragement to new inventions Unbalanced growth generates pulls and pressures in the system calling for new inventions and innovations is in any invention the innovation of the is self-reliance is the undercurrent of the theory of under uh unbalanced growth it starts with the realistic assumption of the chronic scarcity of resources in less developed countries and contemplates to initiate the initiate and accelerate the process of growth in accordance with the needs and means of the country concerned.
So in simple words, it says that invest in the main sectors, pressure will be created in other sectors, they will develop themselves. So our country will come into self-reliance. Means that we will stand on our feet and the things that we were ordering from outside, those things will also start to be made within the country. Next comes economic surplus.
The strategy of unbalanced growth is expected to generate greater surplus in the system. This will increase the surplus. This is because of its emphasis upon capital goods industries so more emphasis on capital goods industries will create linkages this strategy is also expected to produce a very strong multiplier effect, this will generate multiplier effect in the system and income output will increase because if we do investment then investment multiplier will come next is short term strategy this is a short term strategy theory of unbalanced growth holds in short run in short run it remains good therefore as a result of it production and employment increases in the short run then in the short run, production and employment can be increased.
Now what is the criticism of this theory? Criticism of the theory of unbalanced growth. The theory of unbalanced growth have been criticized on the following grounds.
Number one, inflation. Very important. The theory gives undue emphasis to development through industrialization not withstanding the significance of agriculture.
It is saying develop the industrial sector, develop agriculture. It is not talking about agriculture. Because of long gestation lags in industries.
flow of goods is expected to be restricted due to during the short period causing inflation industrial lag means if one factory opens then it will take time for the other factory to open it will not increase overnight but if the demand of the other factory increases suddenly then inflation will be created because at the opening of a factory pressure will not be created overnight that a new factory will open to the other one. Do you understand? This will reduce the resources and inflation will come.
Wastage of resources second point is being concentrated upon a couple of industries Resources may not be appropriately utilized. If we invest only in specific industries, then who knows if resources will not be used properly. Some sectors of the economy will grow at a faster rate while others remain neglected. Some sectors will develop, rest will be neglected. Like in India, IT sector has developed a lot, there are few industries, rest agriculture is going in neglect.
No mention of obstacles. Paul Stratton, Paul Stratton observed that only this It is saying create unbalance, create unbalance, create unbalance, but we haven't talked about the hurdles in creating unbalance. Paul Stritten observes that the theory only mentions that establishing key industries presses for the establishment of other industries.
It says set up main main industries, pressure will be created on the rest. But the theory is oblivious, oblivious means it ignores the possibility of difficulties in establishing key industries to begin with. This theory does not tell us that when we start developing key industries, what problems we will have to face. It is not easy task to establish key industries right in the beginning of the development program. All the main industries, develop them in the beginning and develop them immediately.
It is important but it is a very difficult task. Establishing key industries involves several social, economic as well as institutional constraints. So whatever obstacles are there, they have not discussed them. The theory does not account for these constraints. That there must be some obstacles in making the main industries, right?
Those obstacles have not been discussed. Next is increase in uncertainty. The theory inherently assumes that The success of the growth process depends upon external trade and foreign aid. Basically, this theory assumes that the growth process will remain good only when the external trade, i.e. export-import, is going well and foreign aid will also come from outside.
This increases uncertainties of the growth process as external aid may not be available in time or in sufficient quantity. That the external aid that is to be received from outside, may not come when it is needed. Or it can be that we don't get the quantity we want. Next point is that unbalance is not necessary.
Some people think that it is necessary to take a step by unbalancing the country's progress. The critics are of the opinion that deliberately introducing unbalances in the system is not so much needed in less developed countries. Why? These unbalances or imbalances are caused on their own due to technical indivisibility and uncertainty. Uncertain behavior of demand and supply forces.
So they say that in underdeveloped countries, there is already so much imbalance. If you do more imbalance, then it will be a mess. There will be tension.
Do you understand? Neglect of the degree of unbalance. Unbalance. So how much unbalance do you have to do? How much unbalance do you have to do?
I didn't tell you that. How much unbalance do you have to do? I didn't discuss.
How much to imbalance or unbalance and where to imbalance, are not known according to the theory of unbalanced growth. Unbalanced growth doesn't tell you where to imbalance and how much to do. It only tells about the need of imbalance. It only tells you that you need imbalance, you have to do this, you have to do that.
It doesn't tell you how much to do and how to do it. Understood? Next comes lack of basic facilities. If there are no basic facilities in any country, that is also a problem.
Unbalanced growth theory assumes the availability of certain basic facilities in terms of necessary raw materials, technical know-how and developed means of transport. So basically this theory assumes that something or the other Basic facilities toh honi chahiye naun countries mein. However, in less developed countries, generally these facilities are not available.
Ya, kam hoti hain. Toh basic facilities ye available nahi hain, toh kahaan se ye theory apply ho jayegi. Next, disadvantages of localization.
Toh inno ne kaata externalities create kro. Ek factory kholayegi, doozri ko fayda degi. Externalities being the basic or basis of industrialization, according to the unbalanced growth hypothesis, there may be regional concentration of industries, which impedes mobility of the factors.
Agar... If in one region, many industries are opening up and doing good work and profit, then it creates regional inequality. In India, there is no progress.
Where is it happening? In the main places where industries are open, like Gujarat, Pune, Delhi, NCR etc. Companies are open here, not in the whole of India.
So, there is an imbalance. So, mobility of factors is very restricted. Now, one factor will not be able to work anywhere else after leaving there. Because jobs are available only in those places.
In short, the theory of unbalanced growth does not offer convincing solution to the problem of growth of less developed countries. Paul Stratton believes that there is no convincing solution for growth of underdeveloped countries or less developed countries. Paul Stratton opines that before adopting the strategy of unbalanced growth, it would be essential to know why do we need to generate imbalances in the system.
Why we have to do imbalance in system? We should know this thing Where to imbalance? In which sectors we have to do imbalance?
We should know this How much to imbalance? How much imbalance we have to do? We should know this And what are the optimum limits of imbalance? Which level of imbalance our economy can digest? We should also know that Okay So this was Unbalanced Growth Theory If you like this video Then please like, share and subscribe You will also find the links of other models related to this topic in the description and next topic I will discuss balance growth versus unbalance growth till then take care bye