Big Push Model

Published Mar 22, 2024

Definition of Big Push Model

The Big Push Model is a concept in development economics that argues substantial and coordinated efforts (a “big push”) are necessary across multiple sectors to overcome the barriers that keep economies from experiencing growth. This theory suggests that in order for underdeveloped economies to break out of poverty traps, a significant, simultaneous investment in various sectors, including infrastructure, education, and technology, is essential.

Example

Imagine a rural area where most people are engaged in subsistence farming due to the lack of access to markets, technology, and education. In this scenario, isolated investments in only one of these areas (e.g., education alone) might not lead to significant economic growth because the other barriers (market access and technology) still exist, preventing any real development.

However, if a comprehensive investment approach is undertaken—building roads (improving market access), introducing new agricultural technology (increasing productivity), and investing in education (enhancing human capital) simultaneously—this could catalyze a transformation. The whole economy could move to a self-sustained growth path, as these improvements feed into each other, leading to increased productivity, higher incomes, and the development of new industries.

Why Big Push Model Matters

The Big Push Model matters because it highlights the complex nature of economic development and the interconnectedness of various sectors. It addresses the inherent challenges in sparking economic growth in impoverished regions and provides a framework for understanding why piecemeal approaches may fail. Moreover, it underscores the importance of coordinated policy efforts and international assistance in development.

For policymakers and development practitioners, the Big Push Model serves as a reminder of the scale of intervention needed to achieve sustainable development. It prompts consideration of comprehensive strategies that encompass infrastructure development, human capital investment, technological innovation, and market access improvements.

Frequently Asked Questions (FAQ)

What are the main criticisms of the Big Push Model?

Critics of the Big Push Model often point to the difficulty of effectively coordinating large-scale investments across multiple sectors. They argue that such coordination requires significant resources, meticulous planning, and strong governance structures to avoid misallocation of funds or corruption. Furthermore, critics highlight the risk of creating economies that are dependent on continued external support, suggesting that a more market-driven approach might lead to more sustainable growth.

Can the Big Push Model be applied to all underdeveloped economies?

While the principles of the Big Push Model can be broadly applicable, the specific needs and capacities of underdeveloped economies vary greatly. Factors such as political stability, governance quality, availability of natural resources, and cultural aspects need to be taken into account. Therefore, any application of the Big Push Model must be tailored to the unique circumstances of each economy, with investments and interventions designed to address the specific barriers to growth present in that context.

How does the Big Push Model relate to modern economic development strategies?

Modern economic development strategies often incorporate elements of the Big Push Model, especially the emphasis on comprehensive, multisectoral approaches to overcoming barriers to growth. However, contemporary strategies also stress the importance of sustainability, inclusivity, and resilience. They aim not only for economic growth but also ensure that such growth benefits all segments of society, protects the environment, and can withstand economic shocks. Additionally, there is a growing recognition of the need for flexibility and adaptability in development plans to respond to changing circumstances and emerging challenges.

The Big Push Model provides a foundational concept in development economics, advocating for extensive, coordinated efforts to kickstart growth in stagnant economies. By understanding and applying its principles, in conjunction with modern approaches emphasizing sustainability and inclusivity, policymakers can design more effective development strategies that address the complex challenges facing underdeveloped economies.