Problem
Individuals need not make the right-trade offs. And whereas in the past we thought the implication was that the economy would be slightly distorted, we now understand that the interaction between these slightly distorted behaviours may produce large distortions. The consequence is that there may be multiple equilibria and that each may be inefficient.
Evaluating the statement, discuss the challenges posed by complementarity and coordination failures for a country's development. Select any contemporary development theory and explain its policy prescription for supporting economic development.