Unbalanced theories are based on the principal that it is not possible especially in a developing country that all sectors can grow simultaneously at the same rate. Therefore, developing nations must look to invest more heavily in strategic sectors. The growth in specialized sectors will transfer to other sectors of the economy later. Since developing countries face deficiency of capital, they can not simultaneously invest in all sectors of the economy. Therefore, it is necessary that they choose few strategic sectors in which they can specialize.
These theories also suggest strong relationship between private sector and government. They have been criticized for giving way to inflation in the economy.
0 comments:
Post a Comment