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Why was the public sector considered a tool of development in newly independent countries?

Answer and explanation

Correct answer: To build basic industries and infrastructure under state leadership

The direct answer is C: the state-led public sector could build basic industries and infrastructure. Newly independent countries often inherited weak industries, limited capital and colonial economies designed mainly to export raw materials. Step by step: the government identifies essential needs such as power, transport, steel, irrigation or communications; private investors may not be willing or able to fund them; the state invests through public enterprises and planning; these foundations support wider industrialisation and economic self-reliance. Option C is correct because it states the development purpose. Option A is wrong because public-sector policy was not meant to hand all industries to foreign companies. Option B is wrong because it aimed to promote, not stop, industrialisation. Option D is wrong because industrial development did not require ending agriculture; both sectors could be planned together. Public ownership was a strategy, not a guarantee of success. Exam cue: newly independent states often linked public sector with planning, infrastructure and self-reliance.

Related tags

Public-SectorEconomic-PlanningDevelopment

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