Implications for development in kenya:
The shortage of capital is considered the only obstacle to development- The theory therefore suggests massive injections of capital as a solution to underdevelopment. This is valid but only to an extent since the shortage of capital is a serious obstacle but not the only obstacle to development.
Experience also refutes this claim. For instance, there are innumerable cases of individuals, groups and communities both in die rich and poor countries which have risen from glaring poverty to riches. Secondly, many nations started off poor. Thirdly, the model assumes a closed economic system and therefore excludes the important role played by international contact and the foreign exchange constraints.
Anganifelix answered the question on June 14, 2018 at 16:21
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