This paper describes modernization of ports in Peru. With the sea so predominant in the life of the country, modern ports are vital in Peru. A program has been undertaken to abandon the numerous obsolete ports served by barges and to establish a few strategically situated ports—modern, mechanized, and with terminals having direct mooring facilities. At the same time, Callao, the country’s chief port, has been improved, and specially equipped ports are being planned for fishing products.

Abstract

This paper describes modernization of ports in Peru. With the sea so predominant in the life of the country, modern ports are vital in Peru. A program has been undertaken to abandon the numerous obsolete ports served by barges and to establish a few strategically situated ports—modern, mechanized, and with terminals having direct mooring facilities. At the same time, Callao, the country’s chief port, has been improved, and specially equipped ports are being planned for fishing products.

Ewing, David W. The Human Side of Planning: Tool or Tyrant?, New York, N.Y., U.S.A., The MacMillan Company, 1969, viii +216 pp., $5.95.

How can we bring the human factor into theoretical and organizational planning? This book gives some ideas on how to do it.

Its purpose is to raise questions as to where people fit into planning. The author thinks that too many planners, government and business, think in terms of numbers, structures, and systems; in his view this is because they are economists, business analysts, or similar professions. He holds that the human element is left out of the discussion although it is the one that counts. The planner can show that X men should go to place Y to do job Z, but the informal groups that really influence activity may see to it that the actual distribution and results are very different from what the planners intended. The author gives examples from business and government and shows how planners can become persuaders and join, not fight, the authorities.

The book should be read by all who have to propose alterations to systems and who are responsible for preparing plans and putting them into operation. What the author says is not new, but in the present stage of economic development what he has to say bears repeating. No government plan succeeds if it goes against the wishes of the politically strong. Every family man knows that his budget proposals get changed by his family without any formal discussions. What the author refers to as “the informal group” is usually more influential than the formal committee. In addition to the examples of the difficulty of getting people to work together given by the author, many others spring to the reader’s mind. We have all heard of army generals who refuse to talk to each other but are supposed to share equipment, of business executives whose main purpose in life is to get even with their colleagues, and of politicians whose horizon is purely personal.

Both the chapter headings and the contents are provocative. One great value of the book is that the author is not against planning but is against a limited view of how to make planning work. It is a very timely reminder that planners in the end are dealing with human beings and that the ability to persuade, make friends, and influence people is as important to good planning and implementation as knowledge of what the strategy should be.

C. J. Martin

Néme, Jacques and Colette, Economie européenne, Paris, France, Presses Universitaires de France, 1970, 560 pp., F 35; Swann, D., The Economics of the Common Market, New York, N.Y., U.S.A., Penguin Books, 200 pp., $1.95 (paperback); Priouret, Roger, Les Managers européens, 1970, Editions Denöel, Paris France, 413 pp., F 23.

French and British views on the Common Market and its evolution have often differed and it would have been hardly surprising if the authors of Economie européenne and The Economics of the Common Market had presented divergent pictures and pronounced conflicting judgments. It is proof of their serenity and objectivity that Profs. Jacques and Colette Nême and Prof. Donald Swann offer the same kind of balanced treatment with a great similarity in views.

The French work is the more ambitious one. The title covers not only the European Economic Community (EEC) but also the European Free Trade Association (EFTA) and COMECON, although 80 per cent of the contents is devoted to the first association. Its approach is extremely methodical and the EEC subject matter is divided under three main headings, subdivided in short, tightly organized chapters with numbered sections and subsections. The presentation is very much that of the typical (academic) textbook, down to the typography and the extensive bibliography at the end of each chapter. It is, in fact, probably meant to be used as such and is undoubtedly one of the best on the subject, deserving a readership well beyond French borders.

Under the first main heading, the authors discuss “the four freedoms” that are the pillars of the Common Market: the free movement of goods, of labor, of capital, and the freedom of establishment and provision of services. Progress or lack of progress in these domains is carefully analyzed. The second main heading treats the evolution of common policies, and the third reviews the external relations of the EEC. For lack of space, it must suffice to say that each major subject is pursued in all its ramifications with compact thoroughness and a keen eye for relevant detail. The book covers events up to the beginning of 1970 and includes a critical analysis of the Mansholt Plan for a revised agricultural policy. It does not include the more recent Werner Plan, but the pages on freedom of capital movement and on the coordination of economic, monetary, and fiscal policies provide a useful introduction to the situation and events that gave birth to this document.

Of the sections on EFTA and COMECON, the latter is the more interesting because the subject is too rarely treated in the same context as the other European regional groupings.

Professor Swann discusses only the EEC and in less than half the number of pages. He goes into far less detail but his more smoothly flowing narrative provides sufficient factual information for his audience of economics students, businessmen, and general readers. And—as do his French colleagues—he makes a consistent effort to relate economic theory to the results of a politico-economic process. In so doing the author focuses more sharply on the political factors influencing the decision makers, against the background of theoretical economic concepts. At the same time, he offers his readers an occasion to reappraise some popular notions, such as those concerning the relative merits of customs unions and industrial concentrations.

Both books have a final chapter on Britain and the Common Market, carefully weigh the pros and cons, and come out cautiously—and conditionally—in favor of U.K. membership. Prof. Swann feels that membership could become “a good deal more attractive in economic terms” if it permitted a permanent solution to the sterling balance problem within the general framework of further Fund evolution and the more particular context of EEC monetary unification.

In Les Managers européens, Mr. Roger Priouret, an editor of the French weekly l’Express, has interviewed some 15 industrialists in the EEC countries and presents their views with a hard-hitting introduction reminiscent of Le Défi Américain, the best seller of his “grand patron,” M. Jean-Jacques Servan-Schreiber.

Jan-Maarten Zegers

Arkhipoff, Oleg, La comptabilité nationale et ses applications aux pays du Tiers Monde, 1969, Paris, France, Cujas Press, published with the cooperation of the University of Madagascar, 602 pp. (price not available).

This book is part of the lecture and textbook series of the University of Madagascar’s School of Law and Economics. The author is well acquainted with the problems facing developing countries; he is at present the Director of the National Cameroonian Institute on Statistics and Economic Research, and previously taught in Tananarive.

The opening chapter outlines the subject, sketches its origins, and defines the terms of the art. The author then gives a brief and concrete example of accountancy. This is followed by several chapters which systematically examine problems of all kinds which may arise when implementing this accounting method (questions concerning economic units, economic operations, and the accountancy presentation of data). The next chapter reviews the various national accounts systems, each of which incorporates to a varying degree three major “approaches”: the production approach particularly used in France and the French-speaking African and Malagasy States; the income approach which could be termed the Anglo-Saxon approach, since its use is particularly favored in the United Kingdom, in many Commonwealth countries, in the United States, and also in the OECD and UN; and lastly, the expenditure approach favored by such countries as Sweden and Ghana. After analyzing several factors (including time, space, and wealth) which play an important role in economic accounting, the book elaborates on the various balance of payments concepts and techniques, then on the input-output table, and ends with an outline of the numerous practical applications of economic accounting. The final chapter is devoted to the particular problems of the Third World countries, which in fact, are brought up throughout the book whenever a particular question is being discussed.

Mr. Arkhipoff does not hide his preference for the production approach to national accounting, but hopes for the emergency of a universally applicable accounting structure. He considers that the “hope of seeing a single minimum system established and adopted by all is not utopian.”

A fundamental question arises in connection with the Third World. There are some who have wondered whether the national accounts methodology, more often than not designed for developed countries, is wholly “transposable,” along with all its complexities, to the developing countries, and even whether, in fact, both sets of countries are faced with the same kind of problems. The author is categorical on this point: “There is nothing in the accounting rigor which cannot be applied to overseas countries. The only sensitive point… is the problem of movements in kind (such as barter)… Another problem stems from the breakdown between ‘modern’ and ‘traditional’ sectors, a distinction common to overseas countries. All this, however, is only a matter of terminology…. All problems relating to these countries (the Third World) are to be found, albeit marginally or to a lesser degree, in the accounting systems of the more developed countries…. The characteristics peculiar to overseas accounting are thus a matter of degree; it covers too large a volume of transactions (and especially non-transactions) which escape the market criterion in the broad sense, and presents too many vast disparities.”

The book contains a detailed alphabetical index and a number of annexes dealing in particular with the use of matrices, aggregate indices, and inter-sector analysis.

Mr. Arkhipoff’s book occasionally runs counter to widely held views, but his clear and cogent presentation of the subject should prove stimulating even to readers who remain unswayed by his arguments.

Pierre de Fontnouvelle

Bunting, A.H. (Editor), Change in Agriculture, New York, N.Y., U.S.A., Praeger, 1970, xiv + 813 pp., $27.50.

Some of the major factors that are promoting, inhibiting, or otherwise influencing efforts to improve food production are discussed in Change in Agriculture. The collection of articles, designed as a source book for those interested in agricultural development, is from the International Seminar on Change in Agriculture held at the University of Reading, England, in September 1968.

The editor, a botanist, notes that the book does not deal much with population curbs, but is mainly concerned with putting agricultural science and technology to work “to fill bellies and help diminish poverty. To do this, far more than technical innovation and education is needed: many social, economic, historical and political factors are involved, about which most agricultural scientists know very little.”

As the option of developing new crop lands is rapidly disappearing, the agricultural emphasis must shift to increasing yields. Technology of many disciplines will have to be used on a massive scale. A paper by W. A. Wapenhans, Deputy Director of the World Bank’s Agriculture Projects Department, suggests that the amount of capital required to change traditional farming in the developing countries is “far beyond the ability of the countries concerned to mobilize themselves. But capital alone is not enough. To become a catalyst of development it requires technical, scientific, administrative, and organizational support on an unprecedented scale. It requires the entrepreneurial skills of private agribusiness as well.”

D. W. Townson

Finance and Development does not attempt to evaluate books or contributions thereto by members of the staff of the International Monetary Fund or the World Bank Group, but notes them as likely to be of interest to its readers.

King, Timothy, Mexico: Industrialization and Trade Policies since 1940, 1970, New York, N.Y., U.S.A., Oxford University Press, x + 160 pp., $2.50 (paperback).

Mr. King notes that the recent performance of the Mexican economy has been impressive, with a growth rate averaging over 6 per cent a year for the past 30 years. Since the mid-1950s, Mexico has managed to avoid serious inflation, while maintaining a stable exchange rate and complete currency convertibility. The growth in total output has been spearheaded by the growth of manufacturing industry, producing mainly for a highly protected domestic market. The book describes and analyzes this industrial growth, and particularly the foreign and domestic economic policies which have deliberately fostered it. Although the focus of this discussion is economic, the analysis should be comprehensible to the non-specialist; and the unique configuration of past and present political forces and institutions that have largely shaped Mexican policies is also described.

Similar policies of import-substitution have been followed elsewhere in Latin America but have been less consistently successful. Toward the end of the book, the author discusses whether Mexico has overcome or merely postponed the difficulties inherent in this pattern of development.

The author is an economist in the Population Studies Division of the World Bank.

Other volumes in the same series, edited by Ian Little, Tibor Scitovsky, and Maurice Scott, cover Brazil, Pakistan, India, and Taiwan and the Philippines (the last two in one volume). The publication of the series was sponsored by the Development Centre of the Organization for Economic Cooperation and Development.

Stubenitsky, Frank, American Direct Investment in the Netherlands Industry, Rotterdam, Rotterdam University Press, 1970, xii + 191 pp., f. 35.

This book analyzes the magnitude of U.S. direct investment in 1966 in the Netherlands’ industry, the criteria being (1) annual investments, (2) employment and scale of operations, and (3) production, imports, and exports. The author concludes that U.S. investments have contributed significantly to the country’s economic growth.

One chapter deals with the Netherlands’ direct investments in the United States which in value exceed the U.S. investments in the Netherlands. Mr. Stubenitsky formulates a theory of direct investment, using the concept of a multinational organization guided at home and abroad by the objective of sales maximization, subject to a profit constraint.

The author, an economist in the South Asia Department of the World Bank, wrote this book before joining the staff.

OTHER BOOKS RECEIVED

Kidron, Michael, Western Capitalism Since the War (Revised Edition), Baltimore, Maryland, U.S.A., Penguin Books, 1970, 196 pp., $1.45 (paperback).

Caire, Guy, Théorie et Pratique de la Politique des Revenus, Paris, France, Presses Universitaires de France, 1970, 220 pp., F 12 (paperback).

Furtado, Celso, Théorie du Développement Economique, Paris, France, Presses Universitaires de France, 1970, 264 pp., F 15 (paperback).

Arkhurst, Frederick S. (Editor), Africa in the Seventies and Eighties: Issues in Development, New York, N.Y., U.S.A., Praeger Publishers, 1970, xiii + 405 pp., $15.00.

Munier, Bertrand, Le Cambisme et le Jeu Monétaire International: Technique et Théorie des Mouvements de Capitaux à Court Terme, Paris, France, Presses Universitaires de France, 1970, 383 pp., F 55 (paperback).

Hedberg, Hakan, Le Défi Japonais, Paris, France, Denoël, 1970, 304 pp., F 23,00 (paperback).

Pisar, Samuel, Coexistence and Commerce: Guidelines for Transactions Between East and West, New York, N.Y., U.S.A., McGraw-Hill Book Company, 1970, xv + 558 pp., $17.50 (hardbound).

Delion, André, Administrative Problems of Co-ordination in Economic and Social Development, Brussels, Belgium, International Institute of Administrative Sciences, 1970, 148 pp., BF 175 or $3.50 (paperback).

Schloss, Henry H., The Bank for International Settlements, New York, N.Y., U.S.A., New York University, Graduate School of Business Administration, 1970, 55 pp., $2.00 (paperback).

quoting or reprinting Finance and Development articles…

No permission is required to quote or reproduce material appearing in Finance and Development. A credit line or other acknowledgment is requested.

The Editor would be glad to receive two copies of publications containing reprints or quotations.