Balanced and Unbalanced growth: The balanced growth can be defined as the systematic and equal prioritization for all sectors and regions of the economy. It focuses on balanced type of investment and capital mobilization to make the growth more balanced and distributed. Thus, the main objectives of balanced growth are to make the growth of all sectors in a balanced way at the same time. This approach has been proposed by Ragnor Nurkse and Roseitein Radan.
According to Ragnor Nurkse and Roseitein Radan(1943). There are two approaches of balanced growth.
In the view of Roseitein Radan:
• Investment in all sectors.
• Interdependency in the industry.
‘Big push’ theory is the theory discovered by Roseitein Radan for balanced growth to develop the developing countries.
In the view of Ragnor Nurkse: Ragnor Nurkse explained for developing countries, why these countries are in backwardness?
• Balanced growth is like a balanced diet.
• Vicious circle of poverty.
• Focus on capital formation and enlargement of market.
According to Ragnor Nurkse poverty is explained, a country is poor because it is poor.
The unbalanced growth approaches seems to be the alternative of balanced growth approaches. It is pro-founded or supported by Dr. Singer, Hirschman, Paul Streeten, Rostow etc.
The meaning of unbalanced growth strategy can be meant as by:
a) Philosophy of disequilibrium (unbalance): philosophy of disequilibrium which creates equilibrium (balance).
b) Induced investment system: the induced investment should be made for only the high potential (productive) and not for all sectors.
• The best way of development to achieve in developing countries is the unbalanced growth. This means the unbalancing the economy makes the growth faster and easier.
• The unbalance of economy is made by the unequal investment patterns. This means the investment is concentrated at the potential and selective sector only.
• The developing countries do not have the adequate capital to invest in all sectors of economy. So, if they invest in the sectors advantage. They can get the economy with better growth.
• The unbalance condition of economy creates the balanced condition which further makes the economy unbalance and finally economy is balanced. It is a non- ending process.