Definition Of Unbalanced Growth

The doctrine of balanced growth and unbalanced growth have two common problems on relating to role of state and the role of supply limitations and supply inelasticity s.

Definition of unbalanced growth. Unbalanced growth is a situation in which the various sectors of a given economy are not growing at a rate similar to one another. For example banking may be growing rapidly while manufacturing may be growing more slowly or even declining. Translation and definition unbalanced growth dictionary english english online. And criticizes albert hirschman s views on the false problem of balanced growth unbalanced growth that in the author s opinion wasted a lot of time and effort.

Some of the debate was semantic as the meaning of balance can vary from the abrupt requirement that all sectors grow simultaneously and at the same rate to the more simple plea that same attention be given to all major sectors industry agriculture and services. Hirschman the leading exponent of the theory of unbalanced growth argues that a deliberate unbalancing of the economy in accordance with predesigned strategy is the best way to achieve economic growth. A situation in which economic growth is significantly faster in some segments of the economy than in others. Specific sectors of the economy will be growing at a rapid rate while other sectors are either stagnant or experiencing a significantly reduced rate of growth.

Accordingly at any point in time desirable investment programs that are not balanced investment packages may still advance welfare. A similar disequilibrium and soon. Unbalanced growth is a natural path of economic development situations that countries are in at any one point in time reflect their previous investment decisions and development. Unbalanced growth is a better development strategy to concentrate available resources on types of investment which help to make the economic system more elastic more capable of expansion under the stimulus of expanded market and expanding demand h w singer.

But the unbalanced growth is a short term strategy as the development of few leading sectors is possible in short span of period. A situation in which economic growth is significantly higher in some sectors than others. A major development debate from the 1940s to the 1960s concerned balanced growth versus unbalanced growth.