Unlimited Supply of Labour and the Concept of Balanced Growth

Abstract

It is the purpose of this paper to construct an economic model
which, we hope, will serve as a point of departure for the study of
certain key policy issues in the long-run economic development of less
developed countries like Pakistan. As we see it, the key issue of
developmental policy centres about the question of balanced growth of
the two main sectors: the industrial sector and the agricultural sector.
The identification of this as the key issue is not at variance with the
Pakistan Government's official position which aims at a "substantial
increase in industrial production" over the next five years, while, at
the same time, attaching the "highest priority to increasing
agricultural production".1 In view of this dual aim, a consistent
theore¬tical framework is needed to facilitate rational planning by
pointing up the various facets of the balanced growth
problem