12 Advantages (merits) of balanced growth strategy
- It increases employment opportunities. This is because the strategy emphasizes massive investment in all sectors of the economy which increase production and other economic activities hence more employment opportunities.
- It increases government revenue through taxation. The balanced growth strategy widens the tax base in form of employment opportunities created and various production activities undertaken hence generating more tax revenue to the government. The revenue realized is used to construct social and economic infrastructure like hospitals, roads, schools, power plants, roads etc.
- It promotes economic diversification. Developing various sectors leads to the production of a variety of high quality goods and services in the economy. This widens the choice of consumers at reduced prices hence better standards of living.
- It improves the balance of payment position of the country. The wide economic base created increases the production of goods and services for the domestic market and for export. This helps the country to save the scarce foreign exchange earnings which would be used for import purposes hence improved balance of payments position.
- It leads to the development of social and economic infrastructure. The balanced growth strategy leads to the development of the social and economic infrastructures in form of roads, communication facilities, schools, hospitals, financial institutions etc. necessary for linking the
- It facilitates the exploitation and utilization of the idle local resources. This helps to improve on the productive capacities in the various sectors of the economy hence economic growth and development.
- It increases the rate of economic growth in the economy. This is due to increase in production and economic activities which increases trade in the economy hence high levels of national income.
- It promotes inter sectoral linkages among the various sectors of the economy. For example the agro-based industries provide factor inputs to the agricultural sector and market for the products from the agricultural sector in form of raw materials.
- It reduces the dependence of the economy on other economies. Due to investment in various sectors of the economy, a number of formally imported goods and services are locally produced. This leads to an increase in self-reliance and sustenance of the economy.
- It promotes balanced regional development. For example the simultaneous and harmonious development of the industrial sector and the agricultural sector is translated into development of urban and rural areas. This ensures balanced distribution of economic- opportunities and incomes.
- It increases capital inflow in the country. This is because most of the large scale investments are owned by foreign investors who bring in capital and efficient technology. This increases the level of investment in the country.
- It helps to control rural urban migration and its associated negative effects in form of slums, open urban unemployment, increased crime rate and poor living conditions in general. This is due to simultaneous development of both the urban and rural areas.
CATEGORIES Economics
TAGS Dr. Bbosa Science
Thanks for the information. its helpful although i need some more highlight on biology graphs and maths paper 2 work