ABSTRACT
According to the orthodox view, industrialization, with the help of global capital, apparently endeavors toward economic prosperity for a developing country. At first glance, there is nothing too out of the ordinary in it, because mainstream development arguments suggest that prosperity simply “happens” as a consequence of capitalist accumulation. But recent socioeconomic facts and figures of different developing countries reveal that economic growth in its present form ensures the opulence of a few instead of the majority and eventually leads the economy toward job losses. Modern capitalist sectors of developing economies expand by transferring only economic resources, not labor, leading to huge unemployment. The need for containment and the controlled use of this large segment of underemployed people has compelled the governments of the developing world to take up a variety of employment-generating and livelihood-ensuring development management programs. However, we have identified a dearth of theoretical work dealing with the real macroeconomic inconsistencies that may arise out of such programs and the determination of optimum levels of expenditure for these development management projects.
The modus operandi of this study is three-fold: first, to show the exact nature of macroeconomic inconsistency (demand/supply-side); second, to determine a macroeconomically consistent optimum size of developmental expenditure (given the constraints); and finally, to design policy supports to resolve this inconsistency. The results show that government’s budget allocation on development management programs have an optimum level.
