A developing nation decides to channel most of its public investment into heavy infrastructure and energy sectors in order to generate strong forward and backward linkages across the economy, rather than attempting simultaneous development in all sectors. Which development planning strategy is best illustrated by this approach?
- Unbalanced growth strategyCevap
- BBalanced growth strategy
- CPerspective planning model
- DHarrod-Domar growth model
Cevap
Unbalanced growth strategy
The correct answer is the unbalanced growth strategy. Formulated by Albert Hirschman, this approach recognizes that developing countries lack sufficient capital and technical capacity to develop all sectors simultaneously. Therefore, investments are concentrated in key lead sectors with strong backward and forward linkages to stimulate growth across the rest of the economy.
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Unbalanced Growth Strategy vs. Balanced Growth Strategy