Growth Strategies 


Strategy III - even faster growth

of sector 1



The target growth rate set to 10%

Target rate of growth:

gp = .1


"Isn't it fantastic? Just a few years of sacrifice at the beginning and soon everything growth so fast that you can hardly believe your eyes. And what was needed? Nothing much, just preferential investment into sector 1. Industrialization increased growth potential of the economy!" This is how the enthusiastic planners must have felt in 1930's in the USSR or in 1950's in Eastern Europe, after they were given a lesson in Marxist theory of reproduction. They lost any doubts about the policy of forced industrialization with preferential treatment of heavy industry.






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