Question

What in your opinion are the bad effects of the strategy of industrial growth between 1950 - 1990

Answer 1

Answer:

The bad effect of strategy of industrial growth b/w the period 1947-90 are :- 1 ) public sector monopolies started causing 'dead social weight '. 2 ) protection shielded the domestic industry , but rendered it inefficient to cope with international competition .

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Answer 2

Answer:

:

Explanation:

(i) - Public sector monopolies gradually turned out to be a 'dead social weight'. Ineffeciency, corruption, leakage and pilferage emerged as their principal characteristics. By incurring huge losses, public sector enterprises led to ineffecient use of scarce national resources.

(ii) - Protection of industry stimulated it's growth.But it failed to achieve international standards of product quality.Lack of competition prompted the domestic entrepreneurs to focus upon monopoly-control of the market.Growth through competition and diversification was conveniently avoided.

(iii) - Relying upon import substitutions,the forex (foreign exchange) reserve started dwindling.

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