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International Monetary Fund. External Relations Dept.
Published Date:
December 1975
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Seeking cures

Solomon, Ezra, The Anxious Economy, San Francisco, California, U.S.A., W.H. Freeman and Company, 1975, 119 pp., $3.50 (paper).

Life is breathed into the tools of economic analysis when they are set to work interpreting recent economic history. This is especially true when that history is the turbulent one experienced by the developed countries over the past decade. I n The Anxious Economy, Professor Ezra Solomon, whose own history extends from command of a British navy gunboat to membership in the three-man Council of Economic Advisors to the President of the United States, interprets the economic events of the past 15 years and extends his analysis to the alternatives for getting through the present recession. While the analysis is concentrated on recent events in the United States, the international character of the problems faced by the United States and the impact of its problems on other economies should make the book appeal to a wider audience.

The author attributes the succession of economic problems experienced by the United States, including inflation, exchange depreciation, and recession, chiefly to the easy fiscal and monetary policies of the 1960s. The desire to improve social welfare, to attain fuller employment, and to block incipient increases in unemployment caused a cumulation of budget deficits. These deficits created an environment of excess money demand for goods and services, and led to the conviction that the inevitable episodes of rising prices would not be countered by any significant periods of price decline. Given the expansionist budgetary trends, a restrictive monetary policy of the required intensity was politically unattainable.

Excessive wage demands are, for the most part, ruled out by Professor Solomon as a cause of the inflation, although demands for wage increases to catch up with prices prolonged the inflation. The author also feels that wage/price controls, introduced in the economic recovery of the early 1970s, would have succeeded except for the world crop failures, the price increases due to the devaluations of the dollar, and the inevitable inflationary pressures as the recovery turned into a super-boom.

The U.S. inflation and associated weakening of its balance of payments is considered to have been a major factor in causing the inflation in other countries. This was partly because other countries were reluctant to make the appropriate upward valuations of their currencies for fear of losing the export advantages gained vis-á-vis the United States, and partly because their central banks could not [would not3 insulate their economies sufficiently from the expansionist effects of the associated large inflows of money from the United States.

The author explains that the current severe recession began in 1973 as demand for automobiles fell and high interest rates restricted demand for housing; but it went unrecognized and untreated because for nearly a year an unsustainably high rate of inventory hoarding in anticipation of rapid price rises was ignored by the available statistics. A noninflationary recovery from the recession is possible according to Solomon, but it depends on a slowing of the wage demands in order to catch up with past price increases, reinforced by the downward pressure on prices from rising productive capacity to meet insufficient money demand, and followed by a sufficiently prompt upturn in employment to forestall adoption of very strong expansionist policy measures. Resort to the last measure would prove inflationary and lead to pervasive wage/price controls.

Economists may find The Anxious Economy lacking in substance as far as Solomon’s positions on controversial issues are concerned. But for the non-economist who has some familiarity with economic concepts the authority given to the author’s views by his strategic position as an Economic Advisor, and the brevity in his survey of such broad scope, will justify the chosen approach.

William H. White

Basic banking

Mathis, F. John (editor). Offshore Lending by U.S. Commercial Banks, Bankers’ Association for Foreign Trade and Robert Morris Associates, Washington, D.C., and Philadelphia, Pa., U.S.A., 1975, viii + 311 pp., $16.

In the past six years, a rapidly increasing amount and proportion of external finance for developing countries has come from commercial banks. The commitments by these banks to lend to 86 developing countries, which report such figures to the World Bank, increased from $1.2 billion in 1967 to $8.3 billion in 1973. At the same time, the proportion of such lending commitments by commercial banks to the total commitments by all private lenders rose from 29.4 per cent to 70 per cent. U.S. commercial banks may be said to have directly and indirectly (through branches, subsidiaries, and affiliates overseas) played a very important part in this expansion of such private lending both in quantitative and qualitative terms.

This book, written by 12 U.S. commercial bankers and one professor, is admirably edited by another banker. It is advertised as “a basic reference and training source,” which is saying a lot but maybe not enough. That the blurb says too much has nothing to do with the book or these authors. It does lack a quantitative dimension because statistics in any detail about offshore lending by banks in the United States or their overseas branches, subsidiaries, and affiliates do not exist. Although U.S. bankers engaged in offshore lending are very interested in having a great deal of detailed information about the financial position of their clients, that interest does not seem to create much enthusiasm for statistical reporting of their own activities. This also seems to be true of bankers in other countries. The resulting ignorance which can only partially be reduced by estimates based on inadequate data may contribute to some of the uncertainties and difficulties of which the authors speak.

This important element aside, the advertising blurb says too little because the book contains some very interesting and in places original analysis of problems in an area of international finance of which this is possibly the first comprehensive account. Three chapters in particular deal with analytical problems which are unfamiliar to most persons. They deal with “Country Risk,” “Foreign Credit Analysis,” and “Loans and Placements to Foreign Banks.” The chapter on country risk includes a section on “indicators of economic growth and creditworthiness.” It is a concise, critical review of the validity and applicability of a number of indicators often used uncritically. Here as elsewhere in the book it is clear that the authors are keenly aware of the rewards (profits) and penalties (losses) to which they are subject. These induce an unusual concern over the meaning of measurement and a sensible skepticism about the predictive power of the results of quantitative analysis.

The chapter on foreign credit analysis is an extension of the discussion from country risk to the apparently more familiar corporate financial analysis. But these corporations are foreign to the U.S. banker. So the author takes the reader through the unfamiliar area of alien accounting concepts; inflation and departures in inventory accounting (although these are getting more familiar by the day); and the problems which arise from changes in the rate of exchange. His concluding remark that “an undue appearance of analytical precision is dangerous” in dealing with a corporation (let alone a country) bears restating. The chapter on “Loans and Placements to Foreign Banks” sets out the problems of interbank loans. Some of them, like country risk and the analysis of foreign firms are already familiar, but the growth of international banking and of the size and multiplicity of transactions among banks require a broader framework of analysis than may be necessary in dealing with a single enterprise or even a single country.

Some other subjects covered by the book which may be unfamiliar to students of finance and development, and even to those working in the field are legal aspects; the financing of trade; and financing multinational corporations. There are also detailed chapters on the problems of lending to foreign local governments. They deal at length with institutional problems and contain an interesting aside about the legacy of the “overexuberant sales efforts” of bond issuers in the earlier years of this century.

Two chapters deal with very new problems in international finance and together give an account of the liabilities side of the business. One deals directly with liability management in an unstable environment. This is a treatment of international financial flows from the point of view of the banker who needs them. This micro-financial point of view gives some new insights into the widely discussed problems of international liquidity, floating exchange rates and the Euro-currency market.

Another aspect of the Euro-currency market is dealt with in a detailed account of a new intricate and powerful institution, the lenders’ syndicate. This gives an anatomy of an arrangement which is relatively new on the international scene and which now plays a major role in international lending. The concluding chapter is a more conventional examination of prospects which describe the international environment in early 1975.

The reviewer can only be largely descriptive because this is not a book with a single closely knit argument or simple set of conclusions. Very little about the subject is to be found in print within the range between specialized texts in finance or law and rather broad theoretical discussion of matters which are dealt with here pragmatically. Its interest lies in its location on the borders of theory and practice and among a number of academic disciplines and professional skills. The book should be useful to borrowers because of the frank statement of the lenders’ preferences and point of view. It suggests a number of avenues to the analyst and reminds him that he should go to the marketplace from time to time, while mapping out the international marketplace for him.

Jo W. Saxe

Meade—radical?

Meade, James E., The Intelligent Radical’s Guide to Economic Policy: The Mixed Economy, London, England, George Allen & Unwin, Ltd., and New York, N.Y., U.S.A., Crane, Russak & Company, Inc. (distributors in U.S.A.), 1975, 160 pp., $6.75 (paperback).

The title of this book when seen with the author’s name is startling enough to require that one read it. Although the title is thoroughly misleading since both the approach and objectives of the book are not at all radical but entirely reformist, it is indeed a stimulating and important book. In a slim volume, James Meade has managed to set out a comprehensive policy program, which he feels can achieve an optimum combination of economic efficiency and income redistribution. Its particular purpose is to deal with the faltering U.K. economy but it is generally useful for the problems of any developed country.

Written as a sequel to Planning and the Price Mechanism (published in 1974), the book carries the general message that the market price mechanism must be preserved and extended under a reinforced regulatory government superstructure. It begins by describing conditions under which the price mechanism can function effectively, proceeds to consideration of methods of income redistribution, and finally outlines the areas in which government intervention must supersede the price mechanism.

In the least disputable part of the book Meade recognizes the control of inflation as a primary prerequisite to using the price mechanism efficiently. He answers the age-old question “What’s wrong with inflation?” with concise numerical examples of the most obvious distortions easily grasped by any layman. Meade analyzes well and prescribes a combination of fiscal and monetary policy to be administered by an independent board with extensive short-run powers in order to stem inflation, either by stabilizing money prices or maintaining a steady growth of money expenditure.

To facilitate the response of price and costs to conditions of supply and demand, Meade argues with intuitive appeal for a restoration of more competitive market conditions. Still one wonders if the great emphasis put on fostering small enterprises via the structure of taxation takes sufficient account of the implicit loss of economies of scale, especially in an economy plagued by inefficiencies such as the United Kingdom. Meade also advocates and welcomes the competition associated with complete international free trade as well as freely floating exchange rates.

Income determination by birthright, labor market conditions or profit-making is attacked with thoroughness almost uncharacteristic of a neoclassical economist. Meade proposes several revisions to inheritance taxes, which would vary with the age differentials between bequeather and bequeathed, and encourage the dispersion of large estates. Of prime importance for immediately effective redistribution is a proposed “social dividend scheme” closely resembling a negative income tax. Although a minimum income tax and a progressive tax on consumption are advocated, specific qualitative and quantitative goals of the redistribution scheme are left vague. Indirect measures, such as provision of more equal educational and professional opportunities, are also an important part of Meade’s program.

Finally, Meade makes the long-standing and obvious case for government intervention superseding the price mechanism, in order to provide public goods, plan for structural change of the economy, and regulate the external costs and benefits produced by the private sector.

Meade’s presentation, though lucid, is often tedious—at times no more than an annotated outline. Still, in a short book many useful ideas are conveyed to both the layman trying to understand problems plaguing most developed economies, and the policymaker, seeking provocative ideas on institutional and policy reform.

Susan Schadler

Speaking of health …

Bainbridge, J. and S. Sapirie, Health Project Management: A Manual for Formulating and Implementing Health Projects, Geneva, Switzerland, World Health Organization, 1974, 280 pp., Sw F 38.

Well over a quarter century after it came into being, the World Health Organization has produced a basic, informative, and useful book on the systematic planning and implementing of health projects, a book which WHO hopes will fulfill the needs of health planners and administrators in developing countries.

The publication of this book marks what can be called the growing-up phase of WHO, one which shows a change from the pious idealism to the practical, problem-oriented approach toward the many and varied health problems of billions in the developing world. The step-by-step, almost workbook approach of this book will make it an essential tool for health policymakers in those countries which have embarked on a search for alternatives to the health policies which they have been blindly importing from both the developed world and WHO till now. This book will certainly complement those efforts and the moves of WHO itself toward alternative and meaningful health policies, which demand simple and inexpensive implementation methods.

Using systems analysis techniques, in which the two authors are trained experts. Health Project Management constructs a 16-step theoretical stairway toward the goal of a successful health project. The steps, outlined in separate chapters, range from the birth and preparation of a health project to its termination, and the reassignment of project personnel to other tasks.

The emphasis throughout is on detailed data collection and analysis, two aspects of policy planning and implementation, which have often gone by the board in developing countries in their hurried search for solutions to health and other problems. A profusion of flow charts and diagrams—a few of which are quite cluttered and confusing—have been supplied by the authors to assist decisionmakers in their adoption of the project systems analysis approach.

An absence of jargon, which quite often is more readily adopted than the systems analysis approach itself, is welcome. The authors also note that efforts must be made to utilize currently available sources and resources in developing countries, and the manual is geared toward that end.

The search for effective alternative systems of health care which will work well in developing countries is not yet ended. WHO has certainly embarked on that search; even the World Bank has brought out a policy paper on health policy. And, although this manual appears before clearly viable policy alternatives have been presented to health planners in the developing world, it will go a long way in making those policies effective, when they are finally selected. Only then will this systems analysis approach prove its real worth.

Shuja Nawaz

Food for thought

The Agribusiness Council, Agricultural Initiative in the Third World: A Report on the Conference: Science and Agribusiness in the 70’s, Lexington, Massachusetts, U.S.A., Lexington Books, 1975, xv + 210 pp., $16.50.

This is a five-part volume of papers presented to a conference in London in February 1974. The first is an introductory section which sets the scene. The second, entitled “Science and Agricultural Development,” taking up nearly half the volume, includes six papers by eminent scientists working in international agricultural research. These papers give a well-documented impression of cautious hope for food supplies in the future, which makes the book worth reading.

The third part of the book entitled “Agribusiness in Developing Nations” gives a general overview of the role of agribusiness and two case studies based on experiences in Brazil and Iran. The relative patchiness of this section bears excellent testimony to the need and possible role for the Council. It is instructive but not illuminating. The fourth section, “International Financial and Development Institutions and Agribusiness” reveals the changing policy directions of international financial institutions and outlines part of the institutional framework in which agribusiness must work in serving developing countries. It is notable for the omission of any discussion on the country level of institutional arrangements within which agribusiness must function.

Finally, “The Emerging Policy Issues” are discussed by two of the best known agricultural policy pundits, Lester Brown and David Hopper. They are also worth reading, providing as they do a touchstone for what agricultural policymakers will be worrying about soon, if they are not doing so already.

The papers have been well edited and so are concise and readable. In contrast to the papers, the link sections are rather arid, and in the case of the postscript reveal value judgments that do not compliment the contributors nor complement their contributions—so grit your teeth for that. Otherwise, this is a good book for the general reader.

Graham F. Donaldson

Think farming; think small

Johnston, Bruce F., and Peter Kilby, Agriculture and Structural Transformation, New York, N.Y., U.S.A., Oxford University Press, 1975, xxi + 474 pp., $6.95 (paper).

Population explosion, food shortages, and droughts, followed by hunger and misery among the poverty-stricken masses living in the rural areas of the underdeveloped countries, have created a world-wide awareness of the need to do something about them, and soon. This awareness has also led to much rethinking on the current theories of economic development. Serious gaps have appeared in theories which advocate massive-scale industrialization and agricultural production based on large farms, with a trickling down of benefits to the smaller and less significant partners in society. Alternative theories which advocate the reverse process now seem to make greater sense. Professors Johnston and Kilby, in their work which attempts to crystalize these alternative opinions, have brought out a timely and valuable addition to development literature.

The authors find what they term the “uni-modal” strategy as one “designed to raise the productivity of a large and increasing fraction of a nation’s farm units as an effective means of fostering rapid economic growth and structural transformation while simultaneously contributing to the social goals of expanding employment opportunities and reducing inequalities in income distribution.” They postulate that the very fact of being late in embarking on this path places the LDCs in the advantageous position of being able to draw on an enormous backlog of technological change. Removal of the purchasing power constraints on the impoverished small farms subsector would generate activity all over the economy, owing to interdependence between agriculture and the other sectors. An historical analysis of agricultural development in several countries, including Japan and Taiwan, is used to demonstrate that smallness of farm size does not impede productivity, but that size distribution and the pattern of technologies adopted are important.

International and bilateral lending agencies which emphasize a “project” oriented approach are accused by the authors of failing to consider strategies which take in the totality of the agricultural sector. They contend that the agricultural sector analysis and development model building ignore many important factors influencing agricultural development. While this may be so, the authors fail to mention the continuing search that is going on in many places for strategies which go to meet the very factors which inhibit small farmer development as identified by them. In fact, more and more attention is now being given to sectoral implications and to specific aspects like training, infrastructure creation, and building administrative capacities in developing countries.

The book focuses attention on many issues confronting small farmer development. Although the conclusions tend to be somewhat generalized, there is plenty of material which should be useful in formulating rural development policies in the “late developing” world.

Tudor M. Kulatilaka

Land reform boon

Lippit, Victor D., Land Reform and Economic Development in China: A Study of Institutional Change and Development Finance, White Plains, New York, U.S.A., International Arts and Sciences Press, 1975, xi + 181 pp., $15.

Victor Lippit, an Assistant Professor of Economics and China Scholar at the University of California in Riverside, has made a thorough investigation of land tenure in China. This concise and well-written book on the subject treats the relationship of land tenure and the availability of resources to finance development. The analysis concentrates on the traditional China of the early 1930s and the postrevolutionary China of the 1950s, the data being based on an extensive land utilization study for the first period and the excellent data provided by the Chinese Government until the statistical blackout that followed the failure of the Great Leap Forward in 1959.

For the earlier period, the explanation of the zero level of net rural investment rests on the need of the poor peasants to consume their entire income (they actually lived below subsistence because their children on the average were not expected to survive), and the propensity of the wealthy to spend almost all of their income on conspicuous consumption and protection. Within this system Mr. Lippit was able to identify the surplus expropriated by the wealthy from the poor.

In 1933, this surplus amounted to 16.9 per cent of net domestic product, 10.7 per cent of which accrued to the wealthy in the form of rent, 3.4 per cent in the form of profits from hired labor, and 2.8 per cent in interest income. When this surplus is combined with the 2.1 per cent of net domestic product that took the form of tax revenue invariably used by the Government for nonproductive purposes, a total of 19 per cent of net domestic product is defined, which could have been redirected for development finance at zero opportunity cost in terms of investment foregone.

By 1952, in the wake of the land reform, net domestic investment equalled 15.8 per cent of net domestic product. Although it is true that much of what would have formerly been expropriated surplus had gone as expected into increased consumption by the poor, Lippit is able to attribute 44.8 per cent of net investment to the redirection of surplus made possible by the land reform. The extraction of this surplus for investment purposes occurred through the manipulation of urban-rural terms of trade and agricultural taxation.

The implications of Mr. Lippit’s book are obvious. Land reform and the improvement in income distribution which accompanies it cannot be rejected on the grounds that they will eliminate the surplus resources needed for development. On the contrary, in situations where the surplus expropriated by the rich is large and used almost exclusively for consumptive purposes, land reform can assist rather than impede development.

Judith Graves

Other books received

Jalan, Bimal, Essays in Development Policy, New Delhi, India, The Macmillan Company of India Limited, 1975, 156 pp., Rs. 45.

Klaassen, Leo H. and Jean H. P. Paelinck, Integration of Socio-Economic and Physical Planning, Rotterdam, The Netherlands, Rotterdam University Press, 1974, vi + 69 pp., $7.80.

Makhijani, Arjun and Alan Poole, Energy and Agriculture in the Third World, Philadelphia, Pa., U.S.A., Ballinger Publishing Company, 1975, xv + 168 pp.

Johnson, D. Gale, World Food Problems and Prospects, Washington, D.C., U.S.A., American Enterprise Institute for Public Policy Research, 1975, 83 pp., $3.00 (paperback).

Howe, James W., The U.S. and World Development: Agenda for Action 1975, New York, N.Y., U.S.A., Praeger Publishers, 1975, viii + 278 pp., $4.50 (paperback).

Lall, Sanjaya, Foreign Private Manufacturing Investment and Multinational Corporations: An Annotated Bibliography New York, N.Y., U.S.A., Praeger Publishers, 1975, ix + 196 pp., $16.50

Bates, Robin and Neil Fraser, Investment Decisions in the Nationalised Fuel Industries, New York, N.Y., U.S.A., Cambridge University Press, 1975, ix + 192 pp., $14.95.

Maurice, Nelson R. and Richard U. Miller (compiled by), The Management of Public Enterprise: A Bibliography, Madison, Wisconsin, U.S.A., University of Wisconsin, 1975, xiii + 166 pp., $7.50 (paperback).

Silk, Leonard S., Contemporary Economics: Principles and Issues, New York, N.Y., U.S.A., McGraw-Hill Book Company, 1975 (second edition), xiii + 591 pp., $9.95 (paperback).

Delaume, Georges, Transnational Contracts: Applicable Law and Settlement of Disputes, Dobbs Ferry, N.Y., U.S.A., Oceana Publications, Inc., 1975, 2 vols., $125.

This is an expert’s book for those concerned with the legal aspects of international transactions.

Published for the Parker School of Foreign and Comparative Law, it is one of several recent loose-leaf service treaties dealing with the legal aspects of international trade and economic relations. Delaume, a senior counsel for the World Bank and author of Legal Aspects of International Lending and Economic Development Financing, in which the contracts of the major international lending agencies were first analyzed, has now extended his research to cover the entire field of transnational economic or commercial transactions and the conflict of law issues they raise for the private, public, state or international enterprises which may become parties thereto.

The primary aim of the book is to explain the conflict avoidance and solution problem from all its angles. The author has included many typical provisions of actual contracts, and an analysis of the case law and literature on the subject. Where traditional norms fail to provide an adequate remedy or are found to be wanting for some other reason, new and original approaches are offered for consideration.

Letters to the Editor should be addressed to the Editor, Finance & Development, IMF Building, Washington, D.C., 20431. Please be brief. The Editor reserves the right to edit letters for reasons of space and clarity.

INDEX 1975

Volume 12

Articles
IssuePage
Budgetary reforms in developing countries
A. PremchandMarch25
Changes in emphasis in rural sector lending
David J. Bates and Graham F. DonaldsonJune23
The development of the Euro-currency market
Paul de GrauweSeptember14
Domestic construction industries in developing countries
Edward V.K. Jaycox and Clifford HardyMarch21
Enough of everything for everyone, forever?
Bension VaronSeptember17
The Euro-currency market in perspective
Eisuke SakakibaraSeptember10
Financing the mining sector: the Bank’s role
David M. SassoonSeptember21
Fiscal versus trade incentives for industrialization
Michèle GuerardJune19
Forward exchange facilities in developing countries
Richard H. MillerMarch12
The Generalized System of Preferences examined
Zubair IqbalSeptember34
“Indexing” versus discretionary action—Brazil’s fight against inflation
Jack D. GuentherSeptember24
India’s energy problems
P.D. HendersonDecember21
Introducing the extended Fund facility—the Kenyan case
R.J. Bhatia and Saul L. RothmanDecember38
Land speculation
John W. LoweSeptember30
Membership of the FundMarch42
Monitoring the procurement process
David M. SassoonJune11
The MTN and tariff reduction
S.J. AnjariaDecember25
New tools for measuring government
Jonathan LevinJune14
Petroleum taxes: how high and why?
Katrine W. SaitoDecember17
Population: exploring the food-fertility link
Shahid Javed Burki and Shahid YusufDecember29
Procurement under World Bank projects
John A. KingJune6
Restoring the momentum of development The World Bank Annual Meeting–1975
H-Joost PolakDecember9
The road to plan implementation
C.P. CachoDecember42
The role and structure of sales tax and excise systems
Sijbren CnossenMarch29
Self-help housing in El SalvadorMarch4
Sharing the oil deficit
Andrew D. Crockett and Duncan M. Ripley.December12
Slow sailing at Law of the Sea
Bension VaronMarch38
Some economic concepts and policy issues in developing countries
U Tun WaiJune27
Toward a new framework for international resource transfers
Mahbub ul HaqSeptember6
Toward functional government accounting systems
A. PremchandDecember33
Toward monetary stability The Fund Annual Meeting—1975
Robert S. Franklin and Kenneth S. FriedmanDecember6
Urban land taxes and land planning
Orville F. Grimes, Jr.March16
What is incomes policy, and what can it achieve?
Anne Romanis BraunMarch34
World economic indicators: looking toward 1978March2
Book Notices
The Agribusiness Council, Agricultural Initiative in the Third World: A Report on the Conference: Science and Agribusiness in the 70’s
Reviewed by Graham F. DonaldsonDecember49
Bainbridge, J. and S. Sapirie, Health Project Management: A Manual for Formulating and Implementing Health Projects
Reviewed by Shuja NawazDecember48
Barnet, Richard H. and Ronald E. Müller, Global Reach: The Power of the Multinational Corporations
Reviewed by Jack BaransonMarch11
Bergsten, C. Fred, Toward a New International Economic Order: Selected Papers of C. Fred Bergsten
Reviewed by Arthur H. HouseSeptember43
Bergsten, C. Fred (editor). Toward a New World Trade Policy: The Maidenhead Papers
Reviewed by Arthur H. HouseSeptember43
Connelly, Philip and Robert Perlman, The Politics of Scarcity: Resource Conflicts in International Relations
Reviewed by Bahram NowzadSeptember43
Delaume, Georges, Transnational Contracts: Applicable Law and Settlement of DisputesDecember50
Denton, Geoffrey (editor). Economic and Monetary Union in Europe
Reviewed by Ian S. McDonaldJune33
Fisher, John C., Energy Crises in Perspective
Reviewed by Ian BowenJune32
Goulet, Denis, A New Moral Order: Studies in Development Ethics and Liberation Theology
Reviewed by Donald J. CaseyMarch48
Halm, George N., A Guide to International Monetary Reform
Reviewed by Margaret Garritsen de VriesSeptember42
Harrison, A.J., The Economics of Transport Appraisal
Reviewed by Anthony ChurchillMarch47
Hewson, John and Eisuke Sakakibara, The Euro-Currency Markets and Their ImplicationsMarch49
Hicks, John, The Crisis in Keynesian Economics
Reviewed by Desmond LachmanMarch48
Johnston, Bruce F. and Peter Kilby,/lffr/ct//fure and Structural Transformation
Reviewed by Tudor M. KulatilakaDecember49
Lippit, Victor D., Land Reform and Economic Development in China: A Study of Institutional Change and Development Finance
Reviewed by Judith GravesDecember49
Mathis, F. John (editor), Offshore Lending by U.S. Commercial Banks
Reviewed by Jo W. SaxeDecember47
Meade, James E., The Intelligent Radical’s Guide to Economic Policy: The Mixed Economy
Reviewed by Susan SchadlerDecember48
Mitra, Ashok (editor). Economic Theory and Planning: Essays in Honour of A.K. Das Gupta
Reviewed by Deena R. KhatkhateJune32
Monroe, Wilbur F., International Trade Policy in Transition
Reviewed by Margaret Garritsen de VriesSeptember42
Morowetz, David, The Andean Group: A Case Study in Economic Integration Among Developing Countries
Reviewed by Mario ArtazaMarch47
Odell, Peter R., Oil and World Power: Background to the Oil Crisis
Reviewed by Ian BowenJune32
Okochi, Kazuo, Bernard Karsh, and Solomon B. Levine (editors); Workers and Employers in Japan: The Japanese Employment Relations System
Reviewed by Eisuke SakakibaraMarch47
Readman, Peter, Jonathan Davies, Michael Hoare, and David Poole, The European Money Puzzle
Reviewed by Ian S. McDonaldJune33
Sassoon, David M., C.I.F. and F.O.B. Contracts (second edition)June33
Scammell, W.M., International Monetary Policy: Bretton Woods and After
Reviewed by Margaret Garritsen de VriesSeptember42
Solomon, Ezra, The Anxious Economy
Reviewed by William H. WhiteDecember47
Swidrowski, Jozef, Exchange and Trade ControlsSeptember43
United Nations Department of Economic and Social Affairs, Multinational Corporations in World Development
Reviewed by John W. LoweMarch10
Vaitsos, Constantino V., Inter-Country Income Distribution and Transnational Enterprise
Reviewed by John W. LoweMarch10
Wallace, Don, Jr. (editor). International Control of Investment: The Düsseldorf Conference on Multinational Corporations
Reviewed by John W. LoweMarch10

Habitat Issue

The theme of the March 1976 issue of Finance & Development will be Human Settlements—as a prelude to the UN Conference on Human Settlements, which is scheduled to be held in Vancouver, B.C., in May 1976.

New from The World Bank

A WORLD BANK COUNTRY ECONOMIC REPORT

Kenya: Into the Second Decade

by John Burrows and others

With a macroeconomic focus, this new report examines the operation of Kenya’s economy since independence in 1963, identifying emerging issues and exploring options open to Kenya in its second development decade. Separate sections discuss major issues in detail and extend the technical arguments. The recent World Bank agricultural survey of Kenya has been incorporated to address problems and prospects in this vital sector.

The Johns Hopkins University Press. 7 x 10. xiv + 533 pages. 4-color maps. Index. Cloth, ISBN 0-8018-1754-4, US$18.50 (£10.15); paperback ISBN 0-8018-1755-2, US$6.95 (£3.50).

A WORLD BANK RESEARCH PUBLICATION

Economic Analysis of Projects

by Lyn Squire and Herman G. van der Tak

This up-to-date account of recent developments in project evaluation discusses the basic concepts of cost-benefit analysis, especially the role of shadow prices and how they may be estimated. Particular attention is paid to the incorporation of income distribution criteria into the standard cost-benefit framework.

Forthcoming from The Johns Hopkins University Press. Cloth, $10.00; paperback, $4.00.

WORLD BANK STAFF OCCASIONAL PAPERS NUMBER 20

A Development Model for the Agricultural Sector of Portugal

by Alvin C. Egbert and Hyung M. Kim

Are models able to produce insight into the development of an entire economic sector that is more attuned to a country’s resource endowment than those recommendations which arise out of conventional methods of sector and project analysis? This question was analyzed in a Bank research project in which one team used conventional methodology, another used a series of spatial equilibrium programming models. The alternative methods are explained, the programming models are tested and analyzed, and the differences in the recommendations are highlighted. Suggestions are also made for broader application of the programming technique.

The Johns Hopkins University Press. 6x9. xii + 97 pages. Map. Paperback only, ISBN 0-8018-1793-5, US$6.50.

The third edition of the World Bank Catalog, which lists all free and sale publications of the Bank, is available without charge to any individual or institution having a serious interest in economic and social development.

Address requests for the Catalog to Publications Office, World Bank, 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. or World Bank European Office, 66, avenue d’lena, 75116 Paris, France.

STAFF PAPERS

Staff Papers, a journal of the International Monetary Fund, makes available to the public selected studies on monetary and financial problems prepared by Fund staff members. It is issued in March, July, and November—each issue of about 300 pages.

Studies published in Staff Papers cover international and national economic problems, such as international trade and payments, exchange rates and currency arrangements, international liquidity, inflation, fiscal and monetary policy, monetary analyses, public finance, and wages and prices. Summaries of the papers in English, French, and Spanish appear at the end of each issue.

Papers published in the latest issue of Staff Papers (November 1975) are as follows:

  • ■ The 1967 Devaluation of the Pound Sterling, by Jacques R. Artus

  • ■ Adjustment of Taxable Profits for Inflation, by George E. Lent

  • ■ Wage Indexation, Inflation, and the Labor Market, by Morris Goldstein

  • ■ Separate Exchange Markets for Capital and Current Transactions, by Anthony M. Lanyi

  • ■ Inflation in an Open Economy: A Case Study of the Philippines, by Ichiro Otani

  • ■ Inflationary Expectations arid the Trade-Off Between Unemployment and Inflation in the United States, by Erich Spitäller

  • ■ An Econometric Model of U.S. Merchandise Imports Under Fixed and Fluctuating Exchange Rates, 1959-73, by Isher J. Ahluwalia and Ernesto Hernández-Catá

  • ■ Fiscal Analysis in the Federal Republic of Germany: The Cyclically Neutral Budget, by Thomas F. Dernburg

Subscription: $6.00 a year ($2.50 a copy for a single issue). The price for university libraries, faculty members, and students is $3.00 a year ($1.00 a copy for a single issue). Payment may be made in currencies other than the U.S. dollar upon inquiry.

Address orders and inquiries to The Secretary, International Monetary Fund, Washington, D.C. 20431, U.S.A.

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