GCEEconomicsEconomic Development2019

Which of the following development strategies emphasizes that developing countries should simultaneously invest in many industries rather than concentrating on a few sectors?

AUnbalanced growth strategy
BImport substitution strategy
CBalanced growth strategyCORRECT
DExport promotion strategy
AI
Toaster Teacher
Why the answer is C, and why the others tempt you.
The balanced growth strategy, associated with economists like Ragnar Nurkse and Arthur Lewis, advocates for simultaneous investment across many industries so that each sector creates demand for the output of other sectors, thereby breaking the vicious cycle of poverty. The unbalanced growth strategy, by contrast, advocates investing in selected leading sectors to create forward and backward linkages.
Want this in Pidgin, Yoruba, Igbo or Hausa? Sign up free →

Practice more Economics questions

GCE Economics has thousands more questions like this — with Worked answers on every one.