Questions & Answers
Explain the effect of secession of industrial development
- Conflict and instability arising due to secession are major hindrances to industrial development and progress.
- Industrial development plays a crucial role in tempering secessionist movements.
- Industrial growth is severely stifled due to secession. As a result, there is less industry for job creation, leading to a swelling population of unemployed individuals.
- Hence the markets do not achieve maximum efficiency in production.
- Due to this resources are used inefficiently and without long-term vision.
- This results in the steeper cost of providing public goods.
- The lack of domestic industry forces the particular state to depend upon central government funding.
- Secession is economically very costly.