Different Scenarios

In developing countries, marginal areas show substantial income diversity. Achieving intra-regional balance requires an optimal #development #vision. This vision involves expanding markets and investments, globalizing production, maximizing the private sector's efficiency, implementing financial and monetary policies, fostering regional trade cooperation, and advancing technologically.

Three Different Alternatives

- The first alternative: public participation and low integration into the economic system. Key points include:

- Expansion of local technological capabilities

- Coordination across various sectors

- Balance between urban and rural economies

- Growth of small, labor-oriented industries and technologies

- Stronger links between education and employment

This approach supports national self-sufficiency policy through mass production of consumer goods, reduced reliance on foreign capital, decentralized oversight, and rural development.

- Second alternative: Import substitution, support for domestic production, focus on employment, infrastructure development, workforce training, private sector capabilities, emphasis on small and medium enterprises.

- The third alternative: engaging with the global economy by exporting goods, attracting foreign investment, and developing new technologies. It also includes expanding infrastructure, enhancing research and development, and promoting territorial cluster development and technology parks.

Technology should match local characteristics. Using capital-intensive technology reduces employment opportunities, while worker-oriented technology maximizes both employment and production. Consequently, increased production leads to higher investment. (Jan Tinbergen)