ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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For Expatriate Economists

to report that such exercises achieved 'good fits', that is inevitable with so few degrees of freedom; nor is it very surprising that few of the explanatory variables showed any "statistically significant' relationship with the wage level. These variables were characteristics of the firm such as its size, growth, cutput-per-man, wage-output ratio, fixed capital per worker and the rate of return on capital which were likely to be correlated with one another. In any case, where grouped data were used in regressions the significance tests apparently used are not strictly applicable. There is no indication of any attempt to correct the hetcroskeda- sticity, and in any case it seems rather a shame to have thrown information away by averaging over industry. This sort of description and analysis of wage variation ideally requires a more precise definition of the variable under consideration and a greater concentration of the sample on industries with large numbers of firms in the city. Nevertheless, some interesting points emerge. The authors seem somewhat surprised that size of firm is positively associated with wage level. Two explanations suggest themselves to this reader; THIS is the maiden publication of the newly formed Association of Indian Economic Studies consisting of Indian economists in the Americas. About the Association the Editor's Introduction says: "Indian economists in America as elsewhere, have both an emotional at id intellectual involvement with India; with its civilisation, its culture and not least, its economy. Their training and professional work have related to the analysis of the economic problems of India, and similarly situated countries. They have, thus, yearned and searched for a forum where such professional concerns can be articulated. A conference of these concerned economists provides such a forum/' There need be no doubt that our men in America are emotionally involved with India, especially with her "millions and millions and millions of poor people". But, alas, the collection does not give much evidence of their intellectual involvement with Indian problems. In the opening essay (a) It is larger firms which establish the exclusive internal labour markets. This hypothesis is not fully explored in the text, but it is not contradicted by data on the industrial distribution of internal promotions among sampled employees presented in Chapter III.

Abstract Generalisations

plained and the accumulation process is examined. The expository device used in Chapters 1 to 4 and the numerical examples in terms of which the pro- cesses and relationships arc brought out are indeed commendable. The substantive part, of the book is in Chapter 5, "Merchant Capital and Underdevelopment" and Chapter 6, "Industrial Capital and Underdevelopment". The thesis is that underdevelopment arose from the fact that in the countries which are now underdeveloped capitalism did not, till about the third decade of the twentieth century go beyond the stage of merchant capitalism. Merchant capitalism destroyed pre-capitalist structures, but was essentially dependent on them and hence could not bring about any radical change in production relations. But when the process of Industrialisation was started it was forced to operate in the conditions of underdevelopment. Hence industrialisation was only partial in the sensethat it offered employment only to a limited section of the proletariat. Here are the key passages The crisis of merchant capital can be posed in different terms... On the one hand it tried to secure profits for itself, on the other profits for industrial capital. So long as the rate of exploitation in the underdeveloped world increased, and the profits at the disposal of merchant capital went up, the contradiction between these two forms could be held in check. But as the rate of exploitation ceased to grow merchant capital faced a crisis. Initially it sponsored an increase in productivity by encouraging commodity production, and with it an extension of the division of labour; but subsequently it was unable from its situation in the sphere of circulation to increase it any further. As its profits dwindled merchant capital began to lose the last remnants of independence and was forced to act simply as the agent of industrial capital. But even here it ceased to serve either its own interests or those of industrial capital. To survive as capital it was forced to act as productive capital openly. At the same time productive capital which had previously restricted its activities to the developed world, finding its rate of profit from the underdeveloped countries ceasing to grow if not actually decline, was obliged to intervene directly. The result was a new phase in the history of underdevelopment: the inception of a capitalist mode of production proper in the underdeveloped world. ''But capital could not wipe out its own history and begin as though nothing had happened previously: it was forced , to operate in the conditions of un-

Vindication of Growth with Redistribution

question is: are they willing or able to set in motion forces which will actually fight prejudice and fear. A lot in Indo-Pak relations is going to depend upon that. We have so far little evidence that either government is willing or able to do that. It is not easy to live down fifty years of history. But that is precisely the reason why a gigantic effort is called for. Unless it is forthcoming, the latest normalisation of relations between India and Pakistan might prove to be one more period of relaxation before the tensions build up again. Till then one cannot take this normalisation very seriously. A few academics, a few journalists, a few poets may be able to visit the other country. An Indian sitar recital may occasionally be heard in rapt attention by the Pakistani ambassadors. High- flown poetry would be exchanged. Nothing else would have changed. Underneath the brittle superstructure of 'normalisation', a far harder and unpleasant base would have survived.

Economics and Political Economy

women in Andrea Menefee King's methodological approach to the "Study of Women in India'' ("Women in Contemporary India", p 206). Implied in this formulation is a deep-seated resistance to change, an assumption that social mobility will always have to operate within the existing framework of caste structure, not to mention the somewhat sentimental notion of freedom in society. Fortunately, one does not have to go very far to look for the triviality of the level of generalisation that can be brought about by micro-studies in sociology, which this Beteille model tends to inspire. In the 'methodology' essay, just mentioned, King refers to Olivia Stokes' essay on "Women of Rural Bihar'' ("Indian Women", pp 215 ff) in order to conic to an important conclusion:

Urbanisation and Economic Change-A Pre-Theoretic Investigation of Tamil Nadu

A Pre-Theoretic Investigation of Tamil Nadu C T Kurien Josef James The purpose of this paper is to seek an insight into economic change in Tamil Nadu during the sixties through a study of the urbanisation that has taken place in the state during this period. In brief, the main features of urbanisation in Tamil Nadu during the decade have been: (a) a rapid increase in the urban population; (ii) a striking growth in the number of towns; and, (iii) an increase in the concentration of the urban population in the bigger towns. What kind of economic changes do these trends in urbanisation reflect?

What Is Growth-Some Thoughts on the Economics of Garibi Hatao

What Is Growth ? Some Thoughts on the Economics of 'Garibi Hatao' C T Kurien How commodities are valued in an economic system is at the basis of the concept of growth.

Planning in India-A Theoretical Critique

Planning in India A Theoretical Critique C T Kurien To suggest that the present crisis of planning in our country is essentially the result of deficiencies in the theoretical formulation of the plan may appear naive or, worse, irresponsible.


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