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The study proceeded by broadly categorizing the various defects of the economy as manifestations of two disequilibria in the system. The first disequilibrium pertains to the internal imbalances as reflected mainly by the stagnation in economic growth, the decline in the per capita output of food and related items, and the growing budget deficits of the public sector. The other disequilibrium is the external imbalances and is chiefly reflected in the system's inability to eliminate the balance of payment deficits. This latter disequilibrium was the subject matter of this paper.


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