THE THEORY OF THE BIG PUSH BY P. ROSENSTEIN-RODAN
The relevance of the research topic is due to the fact that the study of Western theories is an indispensable element of the education of economists. But blindly following their recommendations often brings harm, not good. Created in specific conditions, Western theories are not able to answer many questions that are relevant to the economies of developing countries and countries of the former socialist bloc. Moreover, they can be the source of wrong decisions in carrying out economic reforms and developing economic policies. In this paper, the author reveals the basic idea of the theory of a large push. It is revealed that the theory is based on more realistic assumptions about a certain indivisibility and inconsistency of production functions. In addition to high risks and imperfections of the concept of investment, the market system in underdeveloped economies is even more imperfect than in developed ones. Mechanisms for establishing prices in such economies can not correctly signal a perfectly competitive economy that is striving for an optimum. In addition, the followers of this theory, their essence and realization were investigated.