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What are the predictions of balanced growth?
When government can co-ordinate immediate investment in several industries one firm gives a market for another. It needs state planning and intervention to as:
• Train labour
• Organize and plan the huge-scale investment programme
• Mobilise the essential finance
• Nationalisation of strategic industries as well as undertake infrastructure investments for example, builds roads
• Protect infant industries by tariff (tax onto imports) and quota (restrict onto quantity of imports) policies.
• State owned development banks finance precedence investment projects selected for their contribution to growth and development quite than commercial profit maximisation criteria.
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