If a country is ready for balanced growth, then it is already developed. How fair was Hirschman in making this criticism of balanced growth?
Answers
That’s really a good question, As you guys know what is Balance growth theory, All sectors of the economy are growing at the same pace so that every sector of an economy is been helped equally by Govt.
But as you know every company is not the same, every company have a different amount of employees and different technology. So the capital and help needed by the company are not a same. So due to this many companies will have an advantage and disadvantage.
On the other hand, Unbalanced growth theory will only provide as per needed.
I would say I will support Unbalanced growth as it is more reliable and more realistic.
I will discuss it by points.
Growth is been needed more by developing countries and those are ones who don’t have enough capital so they cannot finance every sector. for e.g. If a country is needed transportation very badly and that country is dividing that with space exploration programs then it won’t help that countries situation.
unbalance growth is more systemic and strategically planned once.
Every sector will get attention as per needed.
Proper utilization of capital.
Above are some examples there are many examples which I didn’t mention.
In conclusion, I would say Balanced growth is good when you are talking about a small area or a small country or a single or couple of industries only. When you are talking into consideration of a whole economy or more industries or big countries like India you need to follow the unbalanced growth theory and Indian Govt. also use the unbalanced growth in the post-independence period. These are my personal thoughts you may have a different view than me.