Question

The Big Push theory was formulated in 1943 by-

• A. Paul N. Rosenstein-Rodan
• B. Harvey Leibenstein
• C. R. R. Nelson
• D. J.H. Boeke

Hint:

Associate key development economics theories with their main proponents: Big Push $\rightarrow$ Rosenstein-Rodan; Vicious Circle of Poverty $\rightarrow$ Nurkse; Critical Minimum Effort $\rightarrow$ Leibenstein; Stages of Growth $\rightarrow$ Rostow.

Answer 1

The Correct Option is A

Step 1: Understanding the Concept:
The "Big Push" model is a concept in development economics. It argues that a firm's decision to industrialize or not depends on its expectation of what other firms will do. It emphasizes that for an underdeveloped country to break out of poverty, it requires a large, comprehensive, and coordinated investment program (a "big push") to industrialize and create a sustainable growth path.

Step 2: Identifying the Proponent:
This theory was first proposed by Paul N. Rosenstein-Rodan in his 1943 article, "Problems of Industrialisation of Eastern and South-Eastern Europe." He argued that isolated investment projects would likely fail due to the lack of a market, whereas a large-scale, coordinated push across many sectors could create mutual demand and make industrialization profitable.
Other economists listed are associated with different theories: Harvey Leibenstein (Critical Minimum Effort Thesis), R.R. Nelson (Low-Level Equilibrium Trap), and J.H. Boeke (Dualistic Economy).

Step 3: Final Answer:
The Big Push theory was formulated by Paul N. Rosenstein-Rodan.