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

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POONA-Problems of Contact Capitalism

in much better shape. The American decision to withdraw from Vietnam, therefore, may not necessitate any change in the present Thai policy and attitude. Nor should it lead to any adverse effect on Thailand's economy. Thailand's prosperity in the past decade was not mainly due to American assistance. Other things being equal, therefore, withdrawal of the 40-thou- sand-odd American forces will not affect the present high rate of growth of 7 per cent to any considerable extent. According to the latest available data, the rate of gross investment is 23-7 per cent and that of domestic savings 21.8 per cent. Foreign assistance accounted for only 1.9 per cent of the total investment. True, this is only economic aid and much might depend upon the military assistance for which no reliable information is available. But judged from the balance of payments figures and the mounting foreign exchange reserves, it appears that the annual flow of funds was of the order of US $60-70 million during 1960-65, and that it sharply increased to US $ 150 million in 1966. This flow of funds enabled the country to import IS Poona fast becoming a 'Bombay in the making'? This question is agitating all those who watch the industrial development in and around the city. The Gadgil Committee's recommendation that industrialisation of the Poona- Pimpri-Loni-Kalbhor region should not be allowed to proceed beyond a point has met with stiff opposition from Poona industrialists. A local trade body has undertaken an opinion survey with the declared purpose of countering the Committee's report.

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