Strategy of unbalanced growth

Unbalanced growth is a natural path of economic development. Undeveloped countries start from a position that reflects their previous investment decisions and development. Accordingly, at any point in time desirable investment programs that are not in themselves balanced investment packages may still advance welfare. Unbalanced investment can complement or correct existing imbalances. Once such an investment is made, a new imbalance is likely to appear, requiring further compensating investments. Therefore, growth need not take place in a balanced way. Supporters of the unbalanced growth doctrine include Albert O. Hirschman, Hans Singer, Paul Streeten and Marcus Fleming.