GENERAL KNOWLEDGE

Detailed explanation-1: -The theory of ‘big push ‘ first put forward by P.N. Rosenstein-Rodan is actually a stringent variant of the theory of ‘balanced growth’. The crux of this theory is that the obstacles of development are formidable and pervasive. The development process by its very nature is not a smooth and uninterrupted process.

Detailed explanation-2: -Rosenstein-Rodan’s famous 1943 article was the progenitor of the “Big Push” theory of economic development. His thesis, based on Young’s famous 1928 paper, argued that given increasing returns to scale, government-induced industrialization was possible to break the poverty traps in underdeveloped countries.

Detailed explanation-3: -Big Push is a programme of comprehensive industrialization. It lays more stress on the heavy dose of investment in different industries such as capital goods industries, consumer goods industries and social overhead capital etc., but it ignores the development of agricultural sector.

Detailed explanation-4: -The theory of the big push asserts that underdeveloped countries require large amounts of investments to come out of the problem of backwardness and launch policies for economic development.