Community Development: Theories and Application

Wednesday, November 18, 2015

Theory of Coordination Failure

1.       Theory of Coordination Failure

Define: The theory of coordination failure is an economic development theory which describes when the market fails to coordinate complementary activities.

Source: file:///C:/Users/aalbers/Downloads/9789812872470-c2.pdf

Apply: In the case of development activities, activities must be coordinated and timed to occur in a sequence which makes the actions the most productive. This same principle is important outside of economic development activities; for example, planning availability of human capital, weather, communications, and so on when planning an important community event. 

Adapt: This theory could also be applied to larger corporate business, in which investments are coordinated based on market movement for the purposes of generating the largest return. 
Posted by Alex A. at 12:19 AM
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