UN BALANCED GROWTH THEORY—HIRSCHMAN It is his contention that deliberate unbalancing the eocnomy, according to a pre-designed strategy, is the best way to achieve economic growth in under developed economies. Investment should be made in selected sectors rather the simultaneously in all sectors of the economy. No under developed economy posssesses capital and other resources in such quantities as to invest simulteneously in all sectors. He maintains that “development has of course proceeded in this way, with growth being communicated from the leading sectors of the economy to the followers, from one industry to another industry.” He regards “ development as a chain of diseuilibria that must keep alive rather than eliminate the disequilibria” Development can be possible only through unbalancing the economy. This is possible by investing either in Social Over head Capital (SOC) or in Directly Productive Activities (DPA). The former creates external exonomies while the later appropriates external exonomics.

Un Balanced Growth Theory—Hirschman

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UN BALANCED GROWTH THEORY—HIRSCHMAN

It is his contention that deliberate unbalancing the eocnomy, according to a pre-designed strategy, is the best way to achieve economic growth in under developed economies.Investment should be made in selected sectors rather the simultaneously in all sectors of the economy.

No under developed economy posssesses capital and other resources in such quantities as to invest simulteneously in all sectors.

He maintains that “development has of course proceeded in this way, with growth being communicated from the leading sectors of the economy to the followers, from one industry to another industry.”

He regards “ development as a chain of diseuilibria that must keep alive rather than eliminate the disequilibria”

Development can be possible only through unbalancing the economy. This is possible by investing either in Social Over head Capital (SOC) or in Directly Productive Activities (DPA). The former creates external exonomies while the later appropriates external exonomics.