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'''''The Strategy of Economic Development''''' is a 1958 book on [[economic development]] by [[Albert O. Hirschman]]. Hirschman critiques the theories of [[Ragnar Nurkse's balanced growth theory|balanced growth]] put forward by [[Ragnar Nurkse]] and [[Paul Rosenstein-Rodan]], which call for simultaneous, large-scale increases in investment across multiple sectors to spur economic growth.<ref>((Cite book|last=Hirschman, Albert Otto.|url=https://www.worldcat.org/oclc/265036663|title=The strategy of economic development|date=1958|publisher=Yale Univ. Press|isbn=0-300-00117-7|location=New Haven, Conn|oclc=265036663))</ref><ref>((Cite book|last=Adelman, Jeremy.|url=https://www.worldcat.org/oclc/820123478|title=Worldly philosopher : the odyssey of Albert O. Hirschman|year=2013|isbn=978-0-691-15567-8|location=Princeton, NJ|oclc=820123478))</ref> Hirschman argues that such strategies are unrealistic and often infeasible in underdeveloped countries. In place of balanced growth, Hirschman proposes a theory of ''[[Strategy of unbalanced growth|unbalanced growth]]'', where "imbalances" and "pressure points" created by the growth process can be used to identify areas where policymakers can intervene. In addition, Hirschman introduces the notions of backward linkages---the demand created by a new industry for intermediate goods---and forward ones---the knock-on effects on industries who use the present industry's goods as inputs.<ref name=":0">((Cite web|last=Krugman|first=Paul|title=The Fall and Rise of Development Economics|url=https://web.mit.edu/krugman/www/dishpan.html))</ref>

Along with [[W. Arthur Lewis|Arthur Lewis]]'s ''Theory of Economic Growth,'' and [[Walt Whitman Rostow|Walt Rostow]]'s ''[[Walt Whitman Rostow#The Stages of Economic Growth|Stages of Economic Growth]]'', the ''Strategy'' is often considered one of the seminal works of [[development economics]].<ref name=":0" /><ref>((Cite journal|last=Rodrik|first=Dani|date=2005|title=Growth Strategies|url=https://drodrik.scholar.harvard.edu/files/dani-rodrik/files/growth-strategies.pdf|journal=Handbook of Economic Growth|doi=10.1016/S1574-0684(05)01014-2))</ref>

== References ==
((reflist))

((DEFAULTSORT:Strategy of Economic Development))
[[Category:Books about economic growth]]
[[Category:Economic theories]]
[[Category:Economic development]]
[[Category:Development economics]]


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