Economic Development in South Asia: Proceedings of a Conference held by the International Economic Association at Kandy, Ceylon

600 Pages·1970·61.964 MB·English

by  E. A. G. Robinson, Michael Kidron (eds.)

INTERNATIONAL ECONOMIC ASSOCIATION
CONFERENCE VOLUMES. Numbers 1-50
NUMBER 28
Economic Development in South
Asia
Economic Development
in South Asia
Proceedings of a Conference held by the
International Economic Association at
Kandy, Ceylon
EDITED BY
E. A. G. ROBINSON AND MICHAEL KIDRON
M
S
TOCKTON
PRESS
Y
© International Economic Association 1970
Softcover reprint of the hardcover 1st edition 1970 978-0-333-11540-4
All rights reserved. No reproduction, copy or transmission
of this publication may be made without written permission.
No paragraph of this publication may be reproduced, copied
or transmitted save with written permission or in accordance
with the provisions of the Copyright Act 1956 (as amended).
Any person who does any unauthorised act in relation to
this publication may be liable to criminal prosecution and
civil claims for damages.
First published 1970
This 50-volume set reprinted 1986 jointly by
THE MACMILLAN PRESS LT D
Houndmills, Basingstoke, Hampshire RG21 2XS
and London
Companies and representatives
throughout the world
and
YUSHODO CO. LT D
29 Saneicho, Shinjuku-ku
Tokyo 160 Japan. Tel: [phone]
Published in the United States and Canada by
STOCKTON PRESS
15 East 26th Street, New York, N.Y. 10010
ISBN 978-1-349-00966-4 ISBN 978-1-349-00964-0 (eBook)
DOI 10.1007/978-1-349-00964-0
Contents
Acknowledgements ix
List of Participants Xl
Introduction E. A. G. Robinson xiii
PART ONE: CONSTRAINTS ON DEVELOPMENT
1 Constraints in Economic Development: The Problem of 3
Population Growth in South Asia Sultan S. Hashmi
2 Population and Foodgrain Output in India: A Note on 21
Disparate Growth Rates Ashok Mitra
Discussion 29
PART TWO: PAST TRENDS OF GROWTH
3 The Rate of Growth of the Indian Economy Ashok Rudra 35
4 Growth of National and Per Capita Income in Pakistan 54
Taufiq M. Khan
Discussion 65
PART THREE: PROBLEMS OF INTERNAL DEVELOPMENT OF
INDIA AND PAKISTAN
5 The Role of the Public Sector in the Economic Development (9
of Pakistan M. Akhlaqur Rahman
6 The Public Sector in India R. K. Hazari and A. N. Oza 90
Discussion 98
7 Some Questions Concerning Growth, Transformation and 102
Planning of Agriculture in the Developing Countries
K. N. Raj
8 East-West Contrast in Pakistan's Agricultural Development 127
Swadesh R. Bose
Discussion 147
9 Patterns of Industrialisation in Pakistan Sayeedul Huq 153
10 Long-Term Constraints on India's Industrial Growth, 170
1951-1968 Amiya K. Bagchi
Discussion 193
VI Contents
11 Some Problems of Choice of Techniq ues in a Mixed Economy: 199
The Case of Pakistan Azizur Rahman Khan
12 Choice of Techniques T. N. Srinivasan 213
Discussion 222
13 On Human Resources Development Gautam Mathur 225
14 Planning Investment in Education: Some Problems and 245
Strategies Muhammad Shamsul Huq
Discussion 272
15 Some Issues Concerning Investment and Saving in the Indian 278
Economy K. N. Raj
16 Financing Economic Development in Pakistan 299
A. H. M. Nuruddin Chowdhury
Discussion 318
17 Inflationary Process and its Control in Less Developed 323
Countries Ziauddin Ahmad
18 On Inflation and its Control V. V. Bhatt 346
Discussion 363
19 Strategies of Economic Development: Feasibility Constraints 369
and Planning Amartya Sen
20 Maximal Growth with Wage-Dependent Production Function 379
Md. Anisur Rahman
Discussion 386
PART FOUR: PROBLEMS OF DEVELOPING CEYLON
21 Recent Approaches to Planning in Ceylon Lal Jayawardena 391
22 Choice of Techniques in Ceylon B. Hewavitharana 431
Discussion 449
PART FIVE: PROBLEMS OF TRADE AND EXTERNAL RELATIONS
23 Trade Policies and Economic Development 455
Manmohan Singh
24 The Manufactured Exports of Pakistan: Factor Intensity and 476
Related Economic Characteristics Nurul Islam
Discussion 499
25 The Foreign Capital Requirements and External 504
In debtedness of a Developing Country: A Case Study of
Pakistan Syed Nmvab Haider Naqvi
Contents vii
Discussion 521
26 Trade, Aid and Inter-Regional Development Wahidul Haque 525
Discussion 536
27 International and Regional Development 537
Jagdish N. Bhagwati
28 The International Development of India and Pakistan 549
Benjamin I. Cohen
Discussion 573
Index 579
Acknowledgements
The Conference which this volume records owes more than can be said to
the original inspiration of K. N. Raj and Nurul Islam, who had found
themselves working together in the World Bank in Washington and had
discovered the remarkable identity of the economic problems facing India
and Pakistan and the potential value of an exchange of ideas and experi
ences between economists of the two countries. Almost at the same time
the same thoughts impressed themselves on Amartya Sen and Wahidul
Haque when they met in Canada. Both these groups approached Austin
Robinson, known to all of them, with the suggestion that a joint con
ference should be held to carry into effect their ideas. Held in the neutral
and attractive setting of the Hotel Suisse in Kandy in Ceylon, the Con
ference greatly justified their conceptions of it.
Its holding was made possible by the grants given to the International
Economic Association and UNESCO. The encouragement given to the
Association in their enterprise went, however, far beyond financial support.
The Association would wish to thank David Bell and the representatives
of the Ford Foundation both in India and Pakistan for their help.
To the Government of Ceylon and some of its senior officials who took
an active part in the Conference, we would wish to express our sincere
gratitude for helping us to solve many local problems and to create an
atmosphere favourable to relaxed academic discussion. To Professor
Gunasekera and Mr Samarasinghe of the University of Ceylon at Pera
deniya we were infinitely indebted for assistance in things both small and
great that are necessary to the running of a conference.
Finally we think that all participants in the Conference would feel that
on this occasion it is proper to break the tradition of anonymity and
record our gratitude to Mary Crook, Administrative Secretary of the
International Economic Association. The running for the first time of a
conference in a country so remote from headquarters, beset by innumerable
problems of the currency restrictions of three countries, of the multipli
cation and conveyance of papers, and the individual transport problems
of reaching Kandy, presented a challenge which only she could have over
come. To those who helped her, Mrs Elizabeth Krishna in Delhi, Taufiq
Khan in Karachi and Mrs Mathur at the Conference itself, we are also
greatly indebted, and also to those who helped Michael Kidron with the
recording of our discussions.
A2
List of Participants
Dr J. J. Anjaria, Reserve Bank of India, Bombay
Professor A. K. Bagchi, Department of Economics, Presidency College, Calcutta
Mr J. Baneth, LB.R.D., New Delhi
Professor J. Bhagwati, Department of Economics, M.I.T., Cambridge, Mass.
Dr V. V. Bhatt, Reserve Bank of India, Bombay
Dr S. R. Bose, P.I.D.E., Karachi
Professor Benjamin I. Cohen, Department of Economics, Economic Growth Center,
Yale University, U.S.A.
Dr G. Corea, Permanent Secretary, Ministry of Planning and Economic Affairs,
Colombo
Professor H. A. de S. Gunasekera, Department of Economics, University of Ceylon
Professor Wahidul Haque, Department of Economics, University of Islamabad,
Rawalpindi, and Department of Political Economy, University of Toronto
Dr Sultan S. Hashmi, P.LD.E., Karachi
Dr B. Hewavitharana, Department of Economics, University of Ceylon
Dr Mazharul Huq, State Bank of Pakistan, Dacca
Professor Shamsul Huq, Vice-Chancellor, Rajshahi University, East Pakistan
Dr Sayeedul Huq, Research Department, United Bank Ltd, Karachi
Professor A. F. A. Hussein, Planning Commission, Islamabad
Professor Nurul Islam, Director, P.I.D.E., Karachi
Dr L. Jayawardena, Economic Adviser, Ministry of Planning and Economic Affairs,
Colombo
Dr Azizur Rahman Khan, P.I.D.E., Karachi
Professor Mark Leiserson, Economic Growth Center, Yale University
Professor Gautam Mathur, Department of Economics, Osmania University, Hyderabad
Dr Ashok Mitra, Agricultural Prices Commission, Government of India, New Delhi
Dr Syed Nawab Heider Naqvi, P.I.D.E., Karachi
Dr. Nuruddin Chowdhury, P.I.D.E., Karachi
Mr Pitambar Pant, Member, Planning Commission, Government of India, New Delhi
Dr Akhlaqur Rahman, Chief Economic Adviser, United Bank Ltd, Karachi
Professor Anisur Rahman, Department of Economics, University of Islamabad,
Rawalpindi
Professor K. N. Raj, Delhi School of Economics, University of Delhi
Mr V. K. Ramaswami, Ministry of Finance, New Delhi
Mr Peter Richards, Development Centre, O.E.C.D., Paris
Professor Austin Robinson, Cambridge University
Professor A. Rudra, Visva-Bharati University, Santiniketan, Bengal
Mr S. W. R. de A. Samarasinghe, Department of Economics, University of Ceylon
Professor A. K. Sen, Delhi School of Economics, Delhi
Dr T. N. Srinivasan, Indian Statistical Institute, Delhi
Dr G. Uswatte-Aratchi, Ministry of Planning and Economic Affairs, Colombo
Dr Ziauddin Ahmad, Director of Research, State Bank of Pakistan, Karachi
Secretariat and Editorial Stall
Miss Mary Crook Mr T. Nulty
Mr Michael Kidron Mrs L. Nulty
Mrs Elizabeth Krishna Mrs D. Jain
Mrs Mathur
Programme Committee
Austin Robinson (Chairman)
K. N. Raj, Indian Economic Association
J. J. Anjaria, Indian Economic Association
Nurul Islam, Pakistan Economic Association
Mazharul Huq, Pakistan Economic Association
H. A. de S. Gunasekera, Ceylon