APPLICABILITY OF UNBALANCED
          GROWTH
        STRATEGY TO
UNDERDEVELOPED COUNTRIES


                             BY:
                   Piyush Khanna
INTRODUCTION
   Meaning and Features of Underdeveloped
    Countries

   Concept of Balanced Growth

   Concept of Unbalanced Growth
HIRSCHMAN’S STRATEGY
   Unbalancing the Economy with Social Overhead
    Capital

   Unbalancing the Economy with Directly
    Productive Activities.

   Linkages
      Forward Linkages
      Backward Linkages
STRATEGY TO
UNDERDEVELOPED COUNTRIES
      APPLACABILITY                NON-APPLACABILITY

   Utilization of Resources      Inadequate Attention to
   Within the Capability of       the Direction
    Underdeveloped Countries      Emergence of Inflationary
   Reduction in Costs             Pressure
   Consider Planning             Lack of Basic facilities
                                  Lack of Factor Mobility
UNBALANCED
           GROWTH….WHY?
   State Plays an Important Role in Encouraging
    SOC

   Consider Scarcity of Resources in
    Underdeveloped Countries

   Inducement of Investment
CONCLUSION

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Applicability of unbalanced growth

  • 1. APPLICABILITY OF UNBALANCED GROWTH STRATEGY TO UNDERDEVELOPED COUNTRIES BY: Piyush Khanna
  • 2. INTRODUCTION  Meaning and Features of Underdeveloped Countries  Concept of Balanced Growth  Concept of Unbalanced Growth
  • 3. HIRSCHMAN’S STRATEGY  Unbalancing the Economy with Social Overhead Capital  Unbalancing the Economy with Directly Productive Activities.  Linkages Forward Linkages Backward Linkages
  • 4. STRATEGY TO UNDERDEVELOPED COUNTRIES APPLACABILITY NON-APPLACABILITY  Utilization of Resources  Inadequate Attention to  Within the Capability of the Direction Underdeveloped Countries  Emergence of Inflationary  Reduction in Costs Pressure  Consider Planning  Lack of Basic facilities  Lack of Factor Mobility
  • 5. UNBALANCED GROWTH….WHY?  State Plays an Important Role in Encouraging SOC  Consider Scarcity of Resources in Underdeveloped Countries  Inducement of Investment