Balanced v. Unbalanced Growth: A Reconciliatory View

Abstract

The choice between ‘balanced’ and ‘unbalanced’ growth is one of the topics in the theory of economic development of underdeveloped countries which has evoked a vast amount of controversy. If one glances through the literature on the subject, one comes across a diversity in the interpretation, definitions and the framework of approach.¹ As one would expect, there is some substance in the points made by writers on both sides of the debate. In some of the recent writings one does find at least implicit suggestions that the two patterns of growth need not be mutually exclusive.² As a general rule, however, the authors advocate either a balanced or an unbalanced pattern of growth and the two continue to be viewed as mutually exclusive and polar paths of growth. This paper, on the other hand, presents the point of view that balanced and unbalanced growth need not be mutually conflicting and that an optimum strategy of development should combine some element of balance as well as imbalance.