13Advantages (Merits) of big push growth strategy
- It increases employment opportunities. The strategy emphasizes the creation of labour intensive industries. This promotes employment and raises effective aggregate demand for goods and services in the economy.
- It promotes economic diversification. The strategy emphasizes setting up of industries producing 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 leads to the development of social and economic infrastructure. The big push growth strategy leads to the development of the social and economic infrastructures in form of roads, communication facilities, schools, hospitals, financial institutions etc. so as to facilitate production and distribution of goods and services in the economy.
- It increases government revenue through taxation. The big push 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 improves the balance of payment position of the country. The strategy increases the country’s export potential in terms of increased production of better quality goods and services through value addition. This enables the country to earn more foreign exchange hence improved balance of payments position.
- It facilitates the exploitation and utilization of the idle local resources. Planned industrialization helps to make use of the available local resources. This helps to improve on the productive capacities in the economy hence economic growth and development.
- It increases the rate of GDP growth in the economy. This is due to increased production and economic activities which increase trade in the economy hence high levels of national income.
- It promotes inter industrial linkages in the economy. The setting up of complementary industries creates market for goods and services produced through the backward and forward linkages created. This promotes trade in the economy
- It reduces the dependence of the economy on other economies. Due to investment in various industries, 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 increases capital inflow in the country. This is because most of the large scale investments in industries are owned by foreign investors who bring in capital and efficient technology. This increases the level of investment in the country.
- It facilitates technological development in the country. The big push strategy involves setting up of industries and this encourages the use of modem production techniques through inventions, innovations and technology transfer. This increases efficiency hence production of better quality goods and services.
- The strategy emphasizes planned industrialization. This acts as a training ground for labour which leads to development of skills in the long run,
- It leads to social cultural transformation. The big push strategy brings about social transformation and equitable distribution of income in the process of economic development.
CATEGORIES Economics
TAGS Dr. Bbosa Science
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