What are the predictions of balanced growth, Business Economics

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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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