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“On the one hand, there arc positive economic incentives to induce the farmers to expand their marketable surplus. This requires that an expanding stream of manufactured consumers’ goods should be available, on attractive term , for exchange with the agricultural produce. Thus, the crucial balanced growth relationship in this context will be between the agricultural sector and the consumers gooda manufacturing sector. This approximates to the version (a) of the balanced growth theory in the last chapter. On the other hand, wc may rely mainly on the provision of capital goods such as irrigation, power and machinery, and of other Inputs such at fertilizers and improved seeds to expand agricultural output. Depending on the type of technical complementarity wc strew, (he crucial balanced growth relationship will be either between agriculture and social overhead investment (as in the version (b or between agriculture and the capital goods sector approximating to what I termed the ‘communist’ model in the last chapter.

“Formally, the difference between the two approaches appear to be that the first stresses the interdependence oo the demand side and the second stresses the interdependence on the supply side. But more fundamental differences are involved in empha-siring the balanced growth between agriculture and the consumers’ foods scctor as contrasted with that between agriculture and the capital goods sector. They involve different attitudes towards the use of positive economic incentives or the use of compulsive economic pressures; and towards present consumption or the future rate of economic growth.

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