“The whole question depends to a large extent on the assumption we male about the responsiveness of private enterprise in the oadcrdrvdoped countries lo a disequilibrium situation with profitable opportunities of increasing investment. Hie balanced growth theorists are thinking of a situation when the complementary Industrie ore new industries requiring a considerable initial outlay of cupital and technical experience on the part of the new entrants into them. They feel that it Is beyond the capacity of unaided private enterprise in the underdeveloped countries to respond effectively to this situation so that the government must take the initiative in launching a balanced growth programme. There are, however, considerable differences among tbe balanced growth theorists themselves over tbc question how much of the programme should be directly carried by the government planning authority. Some are content merely to point out the theoretical advantages of the balanced growth approach without specifying the exact proportion of the ‘mixed economy . Others are contemptuous about ‘patching up the market’ and imply that the bulk of the balanced growth programme, not only in the social overhead capital but also in the capital and the consumers goods sectors, should be carried out by state enterprise.
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