DEVELOPMENT EQUILIBRIUM AND INTEGRATION 3من اصل6

DEVELOPMENT EQUILIBRIUM AND INTEGRATION 3من اصل6

WHAT’S NXt\DEVELOPMENT EQUILIBRIUM AND INTEGRATION  3من اصل6

Thus, true development should aim to strike a balance on various levels;
sectoral equilibrium ensures that development must reach different
economic sectors for everyone to reap its rewards; while size (scale)
equilibrium guarantees the distribution of revenues among different
segments and classes of society. In the absence of Sectoral equilibrium, the
sectors that have rapid development would grow in higher rates, attract
more investments and become stronger, but these temporary manifestations
should not fool us, as they are bound to becoming disasters. When that
artificial boost vanishes, which is sure to happen, other sectors will catch up
as in Communicating Vessels, these sectors would start suffering from
recession, a large portion of the accelerated development will come to a halt
when boosted capacities and investment turn very hard to allocate and
digest.
The current Egyptian case could clarify this concept; the state chose in this
phase to concentrate its investments on infrastructure projects and social
housing. This trend caused a fast growth in companies working in these
fields resulting in their investments in equipments and human resources.
Once this boom ends after completing those projects, a large portion of this
growth will turn into a burden that would be subtracted from their gains and
success. At this point, these inflated companies would shrink or go
bankrupt; their sole outlet would be to expand their activities regionally, and
here rises the question if they are capable of doing so. Would political
circumstances allow that? Is there a regional demand of such activities? Are
these companies able to compete in those markets? All these questions
remain unanswered because the decision maker did not ask them before
directing the majority of his investments towards such specific fields and
sector,

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