Again, to break the vicious circle of poverty on the demand
side of capital formation. Nurkse recommends the strategy of balanced growth.
According to him, if investment is made in one particular industry. But Nurkse
says if investment is made in several industries simultaneously, then the
persons employed in different industries become consumers of the foods produced
by one another since they have all acquired more purchasing power. That is the
industries in which investment has been made create demand for one another. In
this way, balanced growth, in which investment is made simultaneously in a
number of industries, creates its own demand. This is how , in Nurks’s opinion,
the vicious circle of poverty can be broken on the demand side by means of
balanced growth.
How can someone measure the balance growth strategy
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