Balanced growth and big push
The above arguments for and against agriculture and industry lead to a compromise, which in some ways has become a new conventional wisdom on the subject referred; balanced diet by China. The approach should be balanced growth.
- The expansion of agricultural incomes above the subsistence level provides the greatly needed demand for the output of manufacturing industries.
- Since the expansion of incomes in the industrial sector on the international demand affects agricultural production, it is an effective stimulant to the expansion of production both in agriculture and industry.
Therefore, development can be achieved simultaneously by using both sectors as a source of income saved. According to Barran, there can be no modernization without industrialization and no industrialization without an increase in agricultural output. The movement of labour from agriculture to industry requires an increase in agricultural productivity to feed the ever increasing numbers of industrial workers.
There is need to balance between the production of capital and consumer goods.
There must be a balance between exports and imports, such that export earnings have to meet the imports (in terms of foreign exchange).
A balance between the directly domestic ventures e.g agriculture, industry, etc and the social economic overheads e.g roads, health, education, telecommunications, etc.
A balance between income distribution in the country and attainment of economic growth.
There is an urgent need to clarify whether the country is producing for domestic or foreign markets.