BOOK REVIEWS

ALEXANDER GERSCHENKRON, Economic Backwardness in Historical

Perspective. A Book of Essays. Cambridge. Massachusetts, The Belknap
Press of Harvard University Press, 1 962, ii +456 p.

It is only since 1957-1959 that the concept of " mod rnization," of which
"industrialization" is the central constituent, became a dominant topic among
American economists and historians. It shows that American academic
circles have taken to heart such realistic and practical questions as the
challenge of the industrial might of Communist Russia exemplified by the
Sputnik, and the fate of the new developing countries of Asia, Africa and
Latin America, and their future courses. A. Gerschenkron, head of the
Institute of Economic History at Harvard University, is a renowned student
of European economic history, particularly the economic hist. ory of Soviet
Russia. Together with W. W. Rostow and his associates, he was one of the
first to raise these questions in the academic world and direct the efrorts
towards their answer. The present volume contains 14 essays pl blishecl
between 1952 and 1961, together with I postscript and 3 appendices. The
flrst eight essays are devoted to the development of Gerschenkron's theory of
industrialization and to case studies of Italy, Russia and Bulgaria based on
his theory ; the remaining six deal with socio-economic changes in Soviet
Russia. These latter include three remarkable eassays in which the author
treats of the attitude of' the Soviet people to industrialization by analysing
Soviet literary productions ; many problems worth further examination are
raised. In the present review, however, tlle reviewer intends to limit himself
to the first part of the book.
Gerschenkron's theory of industrialization is first set out in the essay
entitled "Economic Backwardness in Historical Perspective" (1952), developed
in "Reflections on the Concept of 'PrerequisiteS' of Modern Industrialization"
(1957) a id " Social Attitudes, Entrepreneurship, and Economic Development "
(1955), and summarized in "The Approach to European Industrialization : A
Postscript."
His theory starts from a criticism of the way of thinking' which regards
industrialization as " a uniform process " of a universal character, unaffected
by considerations of time and space. Although the author recognizes that
there are common features in all examples of industrialization and tllat to
pay attention to this aspect does have definite meaning, yet he thinks that
the discrepancies between actual examples of industrialization and the general
models which are intended to explain it are too important to be simply
dismrssed as "exceptions " In reJectmg the idea of a umform pattern, the
author is critical of the theory of W. W. Rostow (The Stages of Economic Growth,
Cambridge, Cambridge University Press, 1960) ; but, Iike Rostow, his main
430 The Developing Economies
criticism is aimed at "the gtand Marxian eheralization.'> He interprets the
content of this generalization as consisting in the belief that the backward
countries develop along the same path as the advanced industrial countries.
He criticizes Marx's concept of "original accumulation of capital." He holds
that we should appreciate Marx's inttiitive perception (revealed by his use of
this concept), of the fact that industrialization gets under way with a big
spurt after a certain preparatory peribd. But, as a matt r of history, this
concept is properly applicable only to England, and on a much smaller scale
than is usually supposed ; from the point of view of the6ry we cannot r gard
it as a universal precondition for industrialization. Certainly, it is only in
England that we flnd in the period, preceding' the beginning of capitalistic
accumulation the deprivation of the peaszints of their land, which Marx
considered to be the basis of the whole process of the origihal accumulation
of capital. However, Marx said in his Das I apital that such deprivation
differs in its order of occurrence from country to country, and passes through
different stages ih differing historical periods. At a later date, in a reply to
a question from V. I. Sassulit ch (1881) Marx stated that the historical neces-
sity of tllG deprivatioh of the peasants of their land was clearly confined to
the countries of Western Europe; and in his letter to N. K. Michailowski
(1877) he refused to have his historical sketch of the development of capital-
ism in Western Europe turned into a theory of the philosophy of history,
prescribing a uhiversal course of development which all nations must pa;ss
throug"h fatalistically.
Gerschenkron is justified in his criticism: of the confusion made by Soviet
historians on the subject of the original accumulation of capital, and their
tendency to take Marx's ideas a;s implying a lbelief in a universal course of
development.
For its part, the Getschenkron's theory rests on the fact that " every
historical event that takes place changes the course of all subsequent events"
(P･ 41). In concrete terms, " the Industrial Revolution in England, and for
that matter in other countries, affected the course of all subsequent industrial-
izations" (p.41). He holds that from the point of view of the underdeveloped
countries the advanced cauntries are " sources of technical assistance, skilled
labor, and capital goods" (p.47), and thinks that, because the underdeveloped
countries borrow these things (in particular, the latest forms of technology)
from the advanced countries, they may succeed in the process of industrial-
ization. The inore backward the underdeveloped countries are, the greater
the gap between them and the level of technology in advanced countrieS,
and Gerschenkron thinks that the patterns of industrialization ih advanced
countries change in accordance･ with the degree of backwardness in the
underdeveloped ones! In his Postscript, he sets out these changes under six
points, drawing attention to the fact that the m:ore backWard an under-
developed country is, (1) the more its industriali.zation starts " as a udden
great purt," (2) the clearer " the stress on bigness cif both plant - and enter-
prise," (3) the gr ater " the stress upon producer's goods as against tonsurridr's
 Book Reviews 43 1

goods," (4) the greater i' the pressure upon the' Ievels of consumption of the
population," (5) the more important the role of " special insti.tutional factors"
supplying capital and directing management, and the more coercive. and
comprehensive they become in character, and (6) the less important is the
role played by agriculture as a market for the products of industry (pp. 353-
354). Apart from this, t is also pointed out that the more backward a country
is, the stronger a " medicine " is needed by way of ideology for industrializa-
tion (p. 24). From these points of view, Gerschenkron drvides the countnes
of Europe into three groups, the " advanced " the " moderately backwar d "
and the "very backward,?' and he considers that their development patterns
take "the form of a series of stage constructs." Thus, under poin t (5) abo.ve
bc holds that IA'hereas in the advanced countries accumulation takes plaee
within industry in the course of development, in the moderately backward
countries the banks first undertz ke the leading role in industrializatiQn, and
at the next stage industry advi nces to a position independent of the banks.
In contra.st, ir the very backward countries it is the state which first under-
takes the leading role in industrialization, at the second stage the banks take
bvet this function, and at the third stage industry -attains independence of
the banks. England. Germ ny, and Russia are chosen as representatives of
the three groups of countries.
It is well-knoWn that the very surviv l of the advanced countries requires
the develQpment of the baQkward. ones, and the phenomena to I rhich Ger-
schenkron draws attention, at least in so far as these are to be observed, in
nglandj Genr any and Russia, show that trends of this kind exrst in fact.
Yet we must say that his view is very partial, since. he takes no account Qf
a. nother factor pushing the development of backward countries, namely the
historical characteristics of the pre-modern structures of these countries. He
limits his attention to the understanding of the relation between backward
and advanced countries. These relations, however, do not consist merely of
exchanges of industrial technology, experience and personnel. At the least,
it would be better to consider frst the relations of international cQmpetition
between the countries concerned. T. H: Von Laue, who ranks with Qe.r-
schenkron as an American student of industrialization in Russia, focuses on
"the sharp competition of the imperialist era" (' Of the Crisis in the Russi n
Polity," in J. S. Curtiss ed., 'Essays in Russian and Soviet Histov', New York.
Columbia University Press, 1963, p. 304), and, by doing so, prese rts an his-
torical analysis remarkably different from that of Gerschel kron. However,
the subject is not exhausted by a discussion of relations of competitior alone .
Advanced and backward countries, brought together, constitute a world
possessing a definite strueture, whereby a decisive distinction appe rs between
cQuntries exporting capital and goods, and cQuntries importing the same,
The special characteristic. s of the " imperial st era ' spoken of by VQn Laue
are to be found precisely at this point. Thus we may say that in Ge.rschen-
kron's scheme the influences of advance. d countries o. n backward ones re not
sufiiciently represented.
432 The Developing Economies

This weakness reappears in the form of several defects in his concrete

analyses. Let us consider his case study of Russia, " Russia, Patterns ahd
Problems of Economic Development, 1861-1958" (1960). Gerschenkron believes
that the " great upsurge " in industrialization which took place in Russia in
the last ten years of the 19th century was carried through under government
leadership and took place under the impulse of railway construction, the
necessary sacrifices being laid upon the peasantry. In contrast, between the
Revolution of 1 905 and the outbreak of the First World War, the banks
upposedly took the place of the government in the development of industry,
while the oppression of the peasantry ceased, and some improvements in the
living conditions of the workers were obtained. Still many important weak-
nesses were found in Russia's society and political structure, but the country
was, by now, firmly set on " the way toward a westernization, or perhaps
more precisely, a Germanization of its industrial growth" (p. 142). He con-
cludes that the Russian Revolution was begotten in the midst of "the misery
of the war and the shame of defeats." In contrast to Gerschenkron, Von
Laue attributes the crisis in Russia to the " discrepancy between Russian
political ambition in the world, her Great-Power status on th one hand, and
her growing political, economic and cultural weakness on the other" (Cur-
tiss, p. 305). He holds that neither industrialization based on producer's
goods (which brought about a relative irnpoverishment of the masses), nor
industrialization based on consumer's goods (which was characterized by
economic backwardness) was able to surmount the crisis, and so a revolution
-and the Bolshevik revolution at that-became inevitable. A superiority in
methodology and a more concrete point of view have enabled Von Laue to
make a more penetrating analysis than Gerschenkron. However, to return
to our previous point of criticism, it is to be pointed out that on the eve of
the First World War Russia found herself in a state of increasing" financial
dependence on England and France, and was a market for the export of
French capitai ; on the other hand, she increasingly assumed the character of
a market for German goods, especially machinery, and her industry stoutly
resisted the Czarist government's proposed revision of the labour laws on the
grounds of competition with Germany. These facts demonstrate that the
contradictions of Russia were non6 other than the contradictions of the world
at the time.
The defects in Gerschehkron's theory are due to the practical interests
which inspired the formulation of his theory, and affect the consequent
recommendations to political decision-makers. The essay written in 1952
takes as point departure the fact that "the paramount lesson of the twentieth
century is that the problems o, f backward nations are not exclusively their
own" (pp. 29+30), that "great delays in industrialization tend to allow time
for social tensions to develop and to assume sinister proportion" (p.28). The
essay is characterized throughout by a desire to prevent the "underdeveloped
countries" of the present day from following the path of the Russian Revolu-
tion. The recommendations to political decision-makers seem sometimes to
 1

Bbok Reviews 433 .

contradict one another. In the essay written in 1955, he warns against
optimism, on the grounds that in underdeveloped countries " pre-industrial
values" are strong, and easily fused with " modern antrcaprtalist sentrments "
(pp. 70-71); but in the essay written in 1957 he concludes on an optimistic
note, believing that backward countries will develop their own creative
initiative in finding substitutes for the factors necessary for industrialization
lacking in their own countries, just as the advanced countries did in the past
(p. 50). In these two differing notes we perceive, not the personal feelings of
Gerschenkron himself, but the aggravated difliculty which American policy
faces in the world today. (Motosuke Udaka)

FRANK H. GOLEY, The Philippines : Public Policy and National Eco-

nomic Development, Ithaca, Cornell University Press, 1961, xviii+455 p.

The postwar economic development of the Philippines has been a brilliant

success in a number of respects.
First, the economic grow:th has been very speedy. Even during the
1950's, when the postwar process of rehabilitation had already been completed
to a large extent, the Philippines' economy continued to develop at an
annual growth rate of about 6 per cent. This is a case rarely seen in South-
east Asia.
Secondly, during the 1950's, the Philippines' economy, which in prewar
years depended heavily on the export of sugar and other primary products,
entered a stage of industrialization centring on imports-competing industries.
Thirdly, the Philippines still maintains the system of free enterprise
economy, with the ratio of the public sector accounting only for about lO
per cent of the national income. ,
The question of how public policy contributed to the Philippines' postwar
economic development deserves judicious scrutiny. The book under review
gives a systernatic analysis of this problem, backed up with meticulous prepa-
rations, and as such it will prove to be one of the standard works in the
field of research on the Philippines, along with J. Ralston Hayden's The
Philippines : A Siudy in National Development (New York, Macmillan, 1942).
Because of the nature of the problem treated therein, oley's book is
mainly descriptive, dwelling as it does on the record of progress and public
policy in regard to the respective spheres bearing on economic development.
The description deserves credence. The author, of course, gives his own
evaluation on such questions as why the Philippines' economic development
was successful and how public policy contributed to it. He also attempts a
prognostication about the future.
The author cites the following as major factors that brought about the
success of the Philippines' economic development : l) Tht, Filipixlos' " will to
economize " was fostered and strengthened, Ieading to the , emergence of
entrepreneurs ; 2) public economic policy was so carried out as tQ help create

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434 The Developing Economies

conditions conductive to the free play of private initiative ; and 3) on the

whole, public policies were " conservative " in nature, eschewing radical
changes. As for the future outlook, Goley takes an optimistic view, and
states that there is a strong possibility that the economic development will
cohtinue steadily.
Naturally, there can be differenc s of opinion on Goley's evaluation and
outlook. The reviewer wishes to state his views on the author's orientation.
Goley corisiders as an important factor the permeation df the " will･ to
economize " among the Filipinos. It is right to reckon with this factor, but
the reviewer cannot but doubt the wisdom of interrelating this, as the author
does, with the low incremental capital-output ratio. The Philippines' incre-
mental capital-output ratio is abnormally low, being 0.7 : I . Goley says this
ratio is not abnormal, maintaining that even if the capital input is low, a
large increment of production is pogsible provided the " will to economize "
is enhanced. The Philippines' capital formation ratio is very low, being 5-6
per cent, and yet an annual rate of economic growth around 6 per cent has
been maintained. How this was possible is a very challenging question for
economists to consider. The author's answer is that it became possible
bec use the " will to economize " was enhanced. The reviewer cannot but
suspect, however, that the low incremeht l capital-output ratio was due
largely to the fact that relative prices of capital goods wer undervalued
because of an overestimation of the peso. That is, the reviewer suspects that
capital goods; the bulk of which have been imported, have been remarkably
undervalued as coirlpared with indigenobs products because the peso is pegged
high by the control of the exchange tate, with the r sult that the incremental
capital-output ratio has been made abnormally low.
The author also makes much of the economic policy of giving preferential
treatment to " new and necessary industries." He points out that the Philip-
pines Government, while allocating dollar funds through a priority system,
has given high priority (and ailotted preferential import funds), for raw
materials for " new and necessary industries,?' and also given tax exemption
privilages to them in order to help promote imports-competing industries.
Goley evaluates this policy very highly, saying that it has served the dual
purpose of favouring F.ilipino nationalism on the one hand and creating a
field of operations for entrepreneurs on the other. No one will deny that
the policy contributed a great deal to the success of the Philippines' indus-
trialization, but the fact must not be lost sight of that a number of these
" new and necessary industries " are of the order of asseinbly industries with
a low degcrree of processing, and that 'their succ'ess was due largely to the fact
that domestic prices have been forced up by import restrictions on foreign
products. In short, the whole system is something" Iike the hothouse cultiva-
tion of plants. The reviewer cannot but ddubt that Filipino businessmen
who are dealing with a market protected by the Government's preferential
treatin nt will be able in the years ahead to lead the country's economic
growth energetically.
 Book Reviews 435
Under the Philippines' present foreign exchange policy, exporting is
isadvantageous and importing is advatageous. The author approves of this
policy on the ground that it has served to hold down the agricultural aristp.c-
racy. dependent on the export of primary products on the one hand, and, on
the other, has facilitated the emergence of businessmen engaged in proce.ssing
the imported raw n)aterials or semifinished products. This policy, however,
ha:s hampered the diversification of the Philippines' export market and has
stood in the way of her attaining a sound balance of international payments,
raising the country's degree of dependence on foreign aid. Is this policy not
exerting adverse effects on future development ?
Finally, it is true that the Philippines' " conservative " political climate
has proved effective in fostering a steady economic policy and in preven:ting
radical reforms, but the reviewer carinot but wonder if the policy has not
been " too ,conservative." Because of the strong influence of the agricultural
aristocracy, it may have been diflicult to carry out a land reform which
would have made changes in the cacique system, but is it not " too conserv-
ative " to depend mostly on indirect taxation, because the ,collection of the
land tax is too diflicult ? In a country like the Philippines, whe e the rate
of capital formation is low, flscal policy has a large role to play in accumu-
lating capital. If an adequate amount of land tax were collected, the
Government would be able to help the industrialization process in a more
positive'manner. The reviewer cannot help thinking that if the Gov, ernment
rem Lins so " conservative " as not to be able even to carry this out, o.ne. can
scarcely entertain a very optimistic view of the country's economic develop-
ment in the future. (K inosuke Baba)

P. C. MAHALANOBIS, The Approach of operational Research to Planning

in India, London. Asia Publishing House, 1963, vi+168 p.

The main part of this book was originally written tQ explain the t.he0. ret-
ical･basis of the recommendations for the formulation of the. Second Five-
Year Plan submitted to the Prime Mihister of India on 17th Ma.rch, 1955.
This document was published in Sankhyd : The Indian J.ourual of Statistiqs (Vol.
16, Parts I & 2, Dec. 1955, pp. 3-62). The revised version is now publi hed
in book form in order to make it more easily available to all iho ar,e
interested in economic planning in India. The revised parts are mainly
concerned with present conditions in India (Chapter 2).
This book is now one of the cl ssics in the field of econor lic planning
in India. No problem of Indian ecqnomic planning, especially in. relation, tp
the Second Five-Year Plan, can be discussed without reference o this bopk.
However, for about ten years since the original publication of the document,
many comments and criticisms have been concentrated on the theoretical

In reviewing this book, we shall cpncentrate our attention on its pres nt

-J
r

436 The Developing Economies

meaning, namely on the process of development of the Mahalanobis model.
Prof. R. Komiya in "A Note on Professor Mahalanobis' Model of Indian
Econbmic Planning " (Review of Economics and Stetistics. Vol. 41, No: I , 1959,
pp. 29-35), pointed out that the model was not based on any maximization
principle. Prof. P.C. Mahalanobis and Prof. M. Mukherjee in " Operational
Research Models used for Plannin in India " (ISI. PD. WP1177 (253), Jan.
3, 1963) retorted that the model had an essentially operational character.
Prof. S, . Chakravarty in " The Mahalanobis Model of Development Plan
mng " (Arthamtt Vol I No I 1957, pp. 57-69), agreed that the Mahalanobis
model was operational in character in the sense of Prof. J. Tinbergen (Eco-
nomic Policy ' Principles and Designs, Amsterdam, North Holland Publishing
Co., 1956).
The theoretical model f.or constructing the frame Qf the Second Five-Year
Plan is developed in Chapter 4. Here Prof. Mahalanobis develops two kinds
of models : the two-sector model, a growth model, and the four-sector model,
an investment allocation model.
The two-sector growth model is composed of an investmen:t goods pro-
ducing sector (K-sector) and a consumer goods producing sector (C-sector).
In the four-sector investment allocation model, the C-sector is divided into
three sub-sectQrs : factory production of consumer goods (Ci-sector), production
of cousumer goods, including agricultural products, in small and household
industries (C2-sector), zind services such as health, education, etc. (C3-sector).
This classification follows the Keynesian aggregates. As Prof. S. Tsuru pointed
out in " Some Theoretical Doubts on the Plan Frame " (Economic Weekly,
Annual Number, Vol. IX, Nos. 3, 4 & 5, 1957, pp.77*79), even if this sectoral
classification is useful for the theoretical development of arguments, it may
prove troublesome in actual application, such as the practical use in planning-

Considering the ratio of increment of ihcome to investment in each

sector, Prof. Mahalanobis constructs his growth model. Let Yt be the national
income at time t, and Yo the gorresponding value in the initial period. Ih
and lc are fractions of investment allocated to the K-sector and C-sector
respectively ; Ih+1c = l. ph and pc ar the ratios of increment of income to
investment in the ' K-sector and C-sector respectively. And ao is the average
raie of savings in the initial period. The Mahalanobis' fundamental equation
of growth becomes
p ;1k { J J
(1) Yt=Yo[1+(roph k+p.2. (1+pkRh)t-1 .

The implication of this equatioh is as follows : the higher the fraction of

total investment allocated to the K-sector, the , higher the level of income in

The ratio of increment of incom. e to investment holds only for the supply
side of the system. Thus the growth model is one-sided in the sense that
the system does not treat the demand side. This was also criticized by Prof.
S. Tsuru (ibid.). However, it is nQt a fatal defect. Introducing the demand
 l

ook Reviews 437

side, the reviewer proposes the following relations :
_ phlk
(2) s-phRk+p.1*
(3) PkRh=sp p pk h+pcl,
where s stands for marginal rate of savings and p for global ratio of incre-
ment of income to investment. Thus the Mahalanobis' fundamental equation
of growth could be rewritten as follows :
(4) Yt=Yo[lHL
s (1+sp)t-1
{ }] .
This equation implies that the higher the marginal rate of savings, the higher
the level of income in the long run. In the relation (2), an increase of a
fraction of the total investment allocated to the K-sector (1k) brings about an
increase in the marginal rate of savings,
ds _ p.ph
(5) 2 >0.
dlk T p
Then the modifled Mahalanobis' growth model (4) implies that the higher
the fraction lk, the higher the marginal rate of savings ; and the higher the
marginal rate of savings, the higher the level of income in the long run.
R. F. Harrod (Towards a Dynamic Economics, London, Macmillan, 1952)
demonstrated that the rate of growth of income depends on the average rate
of savings in the economy and the productivity of investment (the global
ratio of increment of income to investment),
(6) G=aP,
where G stands for the rate of gTowth of income, a for the average rate of
savings, and p for the productivity of investment. The productivity of in-
vestment can be influenced only to a limited extent by appropriate policies,
because it is more or less technologically determined and thus cannot have
much operational significance in stepping up the rate of growth of income.
Therefore, the rate of growth of income can be increased only by raising the
average rate of savings. This average rate of savings can be increased only
if the marginal rate of savings is higher than the average rate of savings in
the relevant time per od. And the higher the marginal rate of Isaving in a
time period, the higher the average rate of savings in the following time
period. In the K, Ci, C2, and C3-sectors respectively, Iet (dYh. AY1' AY2, AY3)
be the sectoral increases in income, (ANk. AN1' AN2, AN3) the sectoral increases
in employment, (1k, 11' IB, IB) the fractions of total investment allocated, (ph,
pl' p2, ps) the ratios of increment of income to invcstment, and (ek. 61' 02, e3)
the net investment required per engaged person. AY and AN are the targets
of increases of total income and total employment which must be attained
within a finite time horizon (i.e., 5 years). And I stands for the total amount
of investment available for this planning. Then Prof. Mahalariobis' invest-
ment allocation model is composed of the following twelve equations :
(7) Ay =dY,
(8) 2;AIV =AN,
(9) 1i=1,

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r*

438 The Developing Economies

(lO) AYi=1ipil (i k, l, 2, 3),
(ll) ANi=1il/ei (i=k, l, 2, 3).
(12) Ik=1/3-
According to Prof. Mahalanobis' explanations, these twelve equations
uniquely detertnine the twelve unknowns (A Yi, dlVi i). These values depend
on both the targets and the data (1, Ih).
Again, in this investment allocation model, the demand side is excluded.
This was pointed out by Prof. A. K. Sen in "A Note on the Mahalanobis
Model of Se.ctoral Planning," (Arthaniti, Vol. I , No. 2, 1 958, pp.26-33), where
he wtote that in the ;uodel, increases in sectoral income were not linked
with increas.es in sectoral demand. Completing the system, Sen suggested to
give up the equation (12) and introduce three sectoral demand equations,
(13) AYi=fi (AY. AN) (i=1, 2, 3),
in which are linked the increases in demand for three kinds of consumer
goods and the increase in total income and/or total employment. We now
have 14. equations and only 12 unknowns (AYi. ANi, Ii). The system is
overdetermined. When, however, AY and AN are made variables rather than
targets, the ,system becomes onc6 again rightly determined. This mean that
if p's and e's are given, and if demands fof consumer goods are linked
uniquely with total income and/or total employment, only a certain rise in
income and a certain increase in employment are possible for the given total
amount of investment. Then we cannot start with given A Y and dN as our
target ; they will emerge as parts of the solution of the system.
The reviewer assutnes, for sitn plicity, that those three sectoral demand
equations ate linked only with an increase in total income,
(13*) AYi=ceAY,
where ci stands for the matginal propensity to consume for i:th consumer
goods. Using these equations, the reduced for.m to determine the fractions
of total investment allocated to the respective sectors (1i) is
(14) Ijpj=cj ;1ipi (i=k, 1, 2, 3; j--1, 2, 3),
1= i (i k, l, 2, 3).
With this simult.aneous equations system, we establish the fractions to be
determined as a function of the productivity of investment and the marginal
ptbpensity to consutne,
(15)_ Ii=ci (pi, ci).
This implies that the fractions aie not affected by the level of total amount
of investment.
In this mo.dified Mahalanobis model (7), (8)., (9), (10), (ll) and (13*), the
growth path of the national incotn is
(16) Yt=Yo[ 1+as
J 2L{ IJ]
(1+sP)t-
where
Pklh
s = phlk+ plll + p212+ p313

As mentioned above, all 1's are determined by parameters (pi, ci), which are
 l

Book Reviews 439

independent df the level of investment. So the grc,wth p th of the nat onal
income is d termined only by the initial conditions (Yo, ao)'
Thus, ih a corriplete systel:n with a demand side as well as a supply side,
for the "tsiven valties of parameters (pi, ci), no planner can select the growih
path of the national income. The selection can be done only through changes

We have shown above the characteristics and significance of the modified

Mahalanobis model. We can expebt some new developments of this inodel.
FQr example, the planning model for the Third Five-Year Plan (cf. S.
Chakravarty, " The Mathematical Framework of the Third Five-Year Plan,"
Chapter I (pp. I 1-22) of Capita,1 Formation and Economic Development, ed. by P. N.
R0Senstein-Rodan, London, George Allen & Unwin, 1964) follows, the reviewer
thinks, Prof. Mahalanobis' ideas on planning-models.
This book has thus played its role in stimulating the development of
planning models in the Mahalanobis' Iine. (Hihoji Katano)

HSt) TI-HSIN, Chungkuo ICuotu Shihch'i I(uomin Chingchi ti Fenhsi,

lg49-1g57 (An Analysis of the Chinese National Economy in the
Transition Period, 1949-1957), Peking , The People's Publishing
Company, 1962, 287 p.

The first edition of his book was published under the title of Wo Kuo
Kuotu Shihch'i Kuomin Chingchi ti Fenhsi (An Analysis of the National Economy
of Our Country in the Transition Period)? and has' undergone two revisions
since then. We may describe the process of revision in some detail as follows.
The writing of the first edition was completed in January, 1957, and it was
published in July of that year by the Soientific Publishing Company. In
1959 the first revised edition was published by the same comphny, the title
being changed to Chungkuo Kuotu Shihch'i Kuomin Chingchi ti Fenhsi (An Analysis
of the Chines National Economy in the Transition Peribd) and sub-titled
" Revised Edition, 1959."
In the preface to this work, written in January, 1959, the author says
that the book has been revised and supplemented because it had become out
of date in some respects, both in content and in: point of view, as a result of
such rapid developments and changes in the national econonty as " the great
leap forward " and the People's Communes. However, in 1962 a second
revision was embt;died in a third edition (the preface to which is dated " the
end of Octobet, 1961"), and this work, the subject of this review, Ilyas published
by The People's Publishing Company. It ould seem to be exceptional that
such a work as this an outline account of the development of the Chinese
economy should have undergone two revisions in this comparatively short
space of time. Perhaps the great upheavals which have taken place in the
Chiriese economy itself, particularly in the period since 1958, Iie in the back-
ground of these revisions. In his preface to the third edition the author says

J
r

440 The Developing Economies

that the book deals witll the period up to 1957, and states that he has left
the analysis of the period after 1958 to a second volume, to be published
later. We may take this as meaning that the author has limited his task of
analysis to the period ending in 1957, and that the analysis of the period
since 195, 8 with its many problems is a task which remains to be accom-
plished.
As for the contents of this work (3rd edition), the first chapter is entitled
" The Character of Chinese Society after the Liberation, and the General
Line in the Transition Period," and consists of an explanation of the "general
line in the transition periQd," being principally concerned with the socialist
reconstruction of the national economy and the effectuation of the first stages
of socialist industrialization. Chapters 2 to 6 contain analyses of the processes
by which the " general line " was put into effect in practice. In Chapter 7
and the following chapters an outline account is given of theoretical prescrip-
tions and policies (as well as of the various institutions concerned), in con-
nection with a number of specific problems such as labour and wages,
commodity production and currency, commerce, the national budget and
credit, and reproduction and natibnal income. The last two chapters, that
is, Chapter 12, " Socialist Institutions have Promoted the Development of the
Social Productive Forces of Our Country," and Chapter 13, " The Class
Struggle in Our Country during the Transition Period," may be considered
to sum up the whole.
Considered as a whole, this work consists of an outline account of the
development of the Chinese economy in the period of the socialist transforma-
tion of the national economy (corrbsponding roughly to the period of the
first Five-Year Plan), but the maifi emphasis in the book may be re*'arded
as being placed more on the analy' is and explanation of the policics which formed
tlle driving force in effecting devqlopment, ratller than on the actual process
of development itself. We may say that this point is one of the special
features of this work.
We will do well to note that in the course of the explanation of these
policies particular emphasis is placed on the original policics which China
has created in her socialist transformation and socialist construction, n(r on
the theoretical viewpoints upon which they are based. As examples of such
points we may cite the question of the application of the principle of " dis-
tribution according to labour," the question of the relation between mecha-
nization and collectivization in introducing co-operatives into agriculture, and
the sigriificance of the role of the elass struggle in the transition period. The
reviewer feels that we might wish that this book had dealt with these ques-
tions = more concretely and clearly. These are important questions to be
considered when we address ourselv-es to the theoretical elucidation of gener-
ality and particularity in Chinese socialist construction in connection with
the recent Sino-Soviet dispute.
For example, this work has the following to say about the principle of
" distribution according to labour."
 1

Book Reviews 44 1

" The consistent application of the principle of distribution according to

labour has an important significance in dist.ributing the products of labour.
However, if preference is given to int llectual ¥vorkers and skilled workers to
an excessive degree, placing excessive emphasis on differences in the quality
of labour performed by the producers, this will also result in evils arising in
the course of developing pioduction in society and raising the productivity of
labour (p. 143).
" These distinctions are tlle material basis of unequal (<bourgeois rights>>-
If these distinctions are stressed to m excessive degree, this will cause the
remnants of these unequal <(bour'j)eois rights>> to develop and harden in the
ideolog'ic,al consciousness of the people" (pp. 14･3-144, reviewer's quotation).
As need hardly be said, this is a criticism of the view that material
interests are omnipotent, a view wllicll, China maintains, characterizes the
present policies of the Soviet Union. We may do well to note that such
points received scarcely any emphasis in the first edition published in 1957.
A similar work to the book under review is Chungkuo Kuomin Chingchi ii
Shehuichuyi Kaitsao (.The Socialist Transformation of the Chinese National
Economy) by Hsieh Mu-ch'iao, Su Hsing, and Lih Tzu-li (Peking. The
People's Publishing Cornpany, 1959), of which English and Japanese versions
have been published by the Peking Foreign Languages Publishing Company.
Hsieh Mu-ch'iao's book, too, is very convenient in providing a general view
of economic policy in the period of China's socialist transformation. In
comparison with this book, the special features which characterize Hsu Ti-
hsin's book are to be found in the second half of the work especially, in the
inclusion of outline accounts of the institutions c, onnected with wages, com-
modity production, currency, banking, budgetary final:Lce, etc. It is very
convenient- to have an outline account of Chinese economic institutions of
the wage system, flscal system, banking institutions and financial institutions,
etc. set out under these heads.
At the same time, however, we find ourselves unable to say that this
book tells us students of the Chinese economy everything IAre should like to
know about the Chinese economy. Let us list a few problematical points.
Firstly, the main emphasis of the work is definitely placed on the explana-
tion of government policy, and although this is very necessary, at the same
time one would like the author to say a little more by way of description of
the actual economic process and its problems. Further, we feel that an
analysis of such descriptive material, if set out with more rich and concrete
source material and actual examples, would have produced, as a whole, a
more lively outline account of the subject.
Secondly, there is the question of the author's almost complete silenc on
the subject of economic relations witll foreign countries. For example, he
deals with foreign trade only in a simple account which makes up the first
section of Chapter 9, the chapter devoted to Commerce, and during the
period in question there must have been many points well worthy of discus-
sion in connectiou with Sino-Soviet trade and its problems. It leaves the
442 The Developing Economies
reader very unsa:tisfied when he finds that in spite of this the author does
not merition this aspect of economic relations with foreig"n countries. Again,
in connection with the policy of "self-teliance " vhich is emphasized as being
dne of the principal causes of the present ecbnomic expansion, must it not
be impossible to give a suf icient explanation of the matter without making
an analysis of economic relations with foreign countries in the period up to
1957 ?
Thirdly; the reader is left with doubts, in that the description of the
variou economic institutions does not appear to give overall coverage. This
is so in the case of the descriptions of the taxation system and financial
institutions. We would like an account of these matters which would be a
little more persuasive and concrete. If these matters cannot all be dealt
with in a book which is only an outline account designed as an introduction
to the subject, references to the relevant literature should be provided in
order to facilitate research.
Lastly, we hope that a properly synthesized analytic and descriptive
account of the period since 1 958, a new stage rich in change, will be under-
taken by the Chinese students of the subject at the earliest opportunity. As
need hardly be said this new period, although beset with natural disasters
and other economic difliculties, is a most interesting period hl the course of
which, on the other hand, a new line of socialist construction peculiar to
China and extremely original has been produced and put into effect, Ieaving
in its train a large number of problems which still remain to be solved.
(Ka uo Yamanouchi)

PAUL BOHANNAN & GEORG DALTON eds., Markets in Africa

(Northwestern University African Studies, Nc;. 9), Evanston, North-
western University Press, 1962, xxivf762 p.

This book owes its origin to study-reports of field tutveys conducted on

the socio-economic structure of the tribal societies in Africa, particularly those
south of the Sahara. With a foreword by the late M. J. Herskovits (1895-
1963) who headed the Programme of African Studies at Northwestern Uni-
versity, it opens with a rather prolix Introduction in which the editors set
but the many problems dealt with. Then come the main part of the book,
28 articles contri,buted by 30 research scholars dealing IATith the market
structure of 9_8 tribal societies or districts sptead over 6 area , viz., " The
Guinea Coast and the Congo," " The Western Sudan," " The Horn of Aftica,"
" East Africa," " Central Africa " and " Cities ahd Industrial Complexes."
This book is the product of a well co-ordinated team of specialists on African
societies belong'ing to a single university, a fact which, of itself, is worthy of
attentidn.
In this book the editors do not use the term " market " in its accepted
sense as a place where people gather to buy and sell, but rather use the
 1

Book Reviews 443

terms " market-place " and " principle of market exchange " (or " market-
principle "). The, " market-place " is defined a: the specific place where buyer
and seller trade, IArhilst tlle " principle of market excha ge " is set by "p ice
formation by impersonal forces of supply and demand" (pi l), irrespective of
the place of exchange.
The market-principle can function, as it frequently does, even when tllere
is ho market.place. The tribal societies or districts under study in this boo,k
are divided by the editors into three categories in accordance with the func-
tioning of both " market-place " and " market-principle," as follo¥vs :
(1) Societies without market-place :
Here the market-principle, if it works at all, assumes, more or less, the
form of a temporary exchange of goods among individuals. Societies
belonging to this pattern have captured the academic interest of many
anthropologists.
(2) Societies with peripheral market :
Market-places do exist in these societies or districts but they do so
only in the area peripheral to the zone where the market-principle is
actually functioning. Their economic structure shares the same degree
of simplicity as those 'e societies without market-place." Land and
labqur are not disposed of on the market-principle. The. market-prin-
ciple is not dominant here.
(3) Societies ruled by the market-principle :
Market:places do exist, but these are solely for the direct convenience
of buyers in obtaining their daily necessities, and of the sellers and
producers in obtaining an income on the principle of exch nge.
The tribal society dealt witll in this book falls under any of the above
three categories and it is claimed that the last two categories, the " peripheral
market " pattern and " market-principle-dominant " pattern, both having
market-places more or less, are not exclusive of each other and can develop
simultaneouly in a single society. The economic side of the tribal market is
thus deeply explored in these study-reports. In particular, the editors take
note of the fact that the " sQcieties without market-places" include a number
of different transactional spheres, each having different items of goods with
different princ.iples of means-of-exchange and correspondincg cultural values.
'c societies without a market-place " have thus been defined as bclonging to
" multicentric economies." Further, the cc societies with a peripheral market "
are alsp regarded as " multicentric ecQnomies," for in these cases the majority
of the people also get their subsistence from the spheres of socio-economic
life without market.places. In other vords, both are still on " pocket-money
levels " and ,nlarket-prices cannot be determined without the help of various
socio-cultural terms and conditions such as kinship, Iineage or clan systems
and/or magico-spiritual factors.
The economic structure as opposed to a 'emulticentric economy" is found
in those societies which are ruled by the market-principle. Kampara in
Uganda (A. M. Mukwaya), Koforidua market in Ghana (D. F. McCall) and

=J
rt

444 The Developing Economies

Copperbelt (M. P. Miracle), etc. are cited as examples in this book. These
areas have been under strong Etiropean influences and are equally charac-
terized by tlle existence of a price-mechanism integrating all the economic
sectors nd by the cortiplexity of the markets.
The above three categories or patterns projected from the editors' analysis
based on the functional division of " market-place " and " market-principle "
are stated by Herskovits in the Preface to follow the formula : " barter -
barter and money - money." Herskovits, while admitting that the old
means of exchange known as face-to-face barter co-exists with the completely
monetized economy of an impersonal nature, seems to suggest a broad direc-
tion of development through the above-mentioned stages. The actual stages
of development are not set down clearly, but the reader might well interpret
it as a general course of development from a "natural economy" to a "money
economy." Briefly speaking, tbc common angle of approach shared by the
contributors of these study-articles compiled in the book seems to be the
exploration of various phases appearing and dis ppearing in the course of
development while the tribal societies move from " multicentric economy " to
" unicentric economy."
Speaking in general, the market-places found in the societies belonging
to " multicentric economy ': are those established as the common place in the
village community (as in the case of the Hausa society of northern Nigeria)
where the basic means of distribution or exchange can be divided into those
centring on the market-place and the ceremonial giving and receiving of
gifts. Accord'ingly, the administrative area or Emirate fails to offer any
impbrtant economic zone to the inhabitants.1 Similar characteristics have
already been noted by J. Boeke in regard to " the village market " in Java.2
On the other hand, it is interesting to know in the case of " market-
principle-domihant " societies for instance, Koforidua Market that the
market-place is located in central part of the "town," in each case embracing
a considerably extensive marketing area (see McCall, esp. Figure 17). Such
might be the phenomenon explained on Page 9 : " ' the market-principle '
which is, seen from one point of view, the economic aspect of the social
principle of contract vastly supersedes in importance the actual, physical
market-place." The mode of existence of " money " in each of the above
three different patterns of societies or districts is also introduced in the book,
but space does not. permit detailed description.
The economic aspects of " the market," involving the concepts of both
" the market-place " and " the market-principle," have thus been minutely
studied in this book. This is definitely one of the big contributions it has
l Seiichi Muratake, " Kindai Keizai to Shuzoku Shakai Naijeria to Kamertin no
Baai (Modern Economy and Tribal Societies The Cases of Nigeria and the Came-
roons )," in Seiichi lzumi ed., Burakku Afuriha no Dent6teki Shakai to sono Heny (The
Traditional Society of Black Africa and its Transformation), Research Materials No. 46,
r
Tokyo, The Institute of Asian Economic Affairs, 1963 (Mimeographed).
2 J. H. Boeke, Dorp en Desa. Leiden-Amsterdam, 1934.
 l

Book Reviews 445

made towards enlightened scholastic work in this field. This book is also
important for the way it presents various interestino )' problems of the non-
economic aspects of " the market " as well. Obviously, this is the sphere
which claims the rriaximum condern of the social (cultural) anthropologist
and, in fact many articles in this book excell preceding work of this kind for
their quality of researcll and analysis. The non-economic side can never be
isolated from the economic side of the tribal market in Africa. The family,
kinship system and magico-spiritual customs play an important role in the
market and serve an integrating economic as well as non-economic purpose
in the tribal societies. A pioneer work in this field is the analysis by B.
Malinowski, the social anthropologist, of a particular exchange system called
kula which has been maintained among the Trobriand Islanders. Melanesia.
Kula is really a form of ritual exchange, although it also serves economic or
trade purposes. It is an " intra-zonal " exchange system maintained among
the people of the islands lying to the north and east of the eastern tip of
New Guinea and expeditions are sent out every other year frorrL each one
of the islands, and yet it is " international " in the sense that it involves five
different language-areas extending along,-O the main route of their excursion.
It is ,not a type of temporary exchange but has been established as a specific
ritual system having deep roots in the people's mythology and magic lore.
In the Introduction to this book, frequent references are made to non-
economic matters in connection with the.ir communications, beliefs, and
political, administrative or legal aspects. Yet these are not satisfactorily
analysed. Various study-reports in the book could be more extensively
examined from this point of view but this IArould require much effort and
greate. r space. After ll, the market is not Ln economic institution by itself
but is an arena where news is exchanged, social life enjoyed and all sorts of
entertainments and pastimes indulged in by the tribal people, as pointed out
by Boeke in his book previously cited. In Africa, too, as many study-reports
in this book reveal, much of the market trading is carried out by women,
and these women, particularly the married women, are eager to maintain
close contacts with the people from their natal vill tge or with their descent
group under the circumstances of virilocal residehce in spite of the matrilineal
system there. Another important point to note is that the market is often a
religious centre enclosing a sacred grov. e-shrine, and market membership and
initiation in that particular belief go hand hl hand (as in the case of the
Mossi tribes of the western Sudan).
The problem of shifting labour, the recruiting of migrant labour and/or
wage-labourers, assumes importance when and 1!vhere economic chango'e and
socio-cultural change come into direct contact in tribal society. This subject
has been a significant object of study sljnce I. Schapera's Migrant Labour and
Tribal Ltfe (London, Oxford University Press, 1947) and A. I. Richard ed.,
Economic Development alid Tribal Change (Cambridge, W. Heffer & Sons Ltd., i

1954). Adnilttedly it is not an easy task but it is regretted that this aspect
was neither positively nor theoretically pursued in this book. Another point

J
446 The Developing Economies

is that the analysis of the traditional " regional market-sphere " and " distant
commerce " has not been given due attention nor fully studied.
There is an abundance of casual refeirences to the qualitative change of
the market-place itself resulting from the development of the market-principle,
as is the case of selling and buying labour and property as well as offering
credit and capital-investment. Their minute examination will raise some
very interesting issues such as the comparison of different forms of " capital "
(for instance, between " commercial capital " and " usufy capital ") and the
definition of the characteristics of each form of " capital " in the tribal eco-
nomy.
Nevertheless, the comparative studies and analyses of the African "market"
brought out in this book must highly be appireciated. It is comparable to
M. Fortes and E. E. Evans-Pritchard eds.. African Political Systems (London,
Oxford University Press, 1940), a pioneer work in the comparative study of
the political systems in the African tribal societies ; A. R. Radcliffe-Brown and
D. Forde eds., African Systems of Kinship and Marriage (London, Oxford Uni-
versity Press, 1950), and to D. Forde, African T 710rld (London, Oxford Uni-
versity Press, 1954) which treated the cosmological ideas and social values
among the African tribes. (Seiichi Muratake) '

STEPHEN H. ROBERTS, The History of French Colonial Policy 1870-

lg25. London, Frank Cass, 1963, xvi+741 p.

It is indeed astonishing to find that the Histo , of French Col,onial Policy

1870-1g25 written in 1929 (new impression 1963) has lost none of its raison (r tre
after thirty-five years. The colonial history of the three republics bet A'een
tbc book's flrst date of publication and the present is contained in a short
appendix, which is not really essential for a reader who has already discovered
in statu ,2ascendi in the work all that has occurred in the French Empire from
19_99 down to the period of decolonization we are witnessing today. This is
why we are even better situated to evaluate the worth of this study, the first
edition of which was called by M. M. Knight in The Journal of Modern Histov'
(March, 1930) " the first serious academic work on the second French colonial
ernpire as a whole in the Englisll language."
Although the ,author insists th.at he had ;, no preconceived ideas to warp
his facts," it is of great interest to glimpse between the lines of his analysis
the tradition of British Imperialism 1'vhich enabled him to discern the positive
side of French colonial administration from its apparent unrealistic aspect.
In this respect, IA'e are more attracted by the chapters in which general
principles are discussed and conclusions drawh. Nevertheless, we hasten to
say that the regional surveys containing all kinds of raw material from whic.h
the author draws his conclusions constitute a precious repository of data.
Let us begin with the chapters on regional surveys. These chapters,
con ai;led in the second part of the book, eTrtitled :' French Colonial Theory
 1

Book Reviews 447

in Practice," cover all the French colonies, namely, Algeria (Chap. VI),
Tunisia (Chap. VII), French West Africa (Chap. VIII), French Equatorial
Africa '(The Congo) (Chap. IX), Madagascar (Chap. X), Indo-China (Chap.
XI), the Anciennes Colonies (Qhap. XII). France in the Pacific (Chap. XIII),
Morocco. (Chap. XIV) and Syria (Chap. XV).
_ The author follows the same pattern of description for all of the colonies.
He starts by giving a historical survey of their conquest and subsequent
growth. In his description of the French colonial venturb, the author ,displays
his talent. as a historiaTl a well as his depth of sociological and etonomic
knowledge of the colonized societies.
Following the historical aspect, the author analyses the structure and
organization of the colonies. He discusses some of the main characteristics
of the colonization which are embodied in great figures of French colonial
history such as Galli6ni nd Lyautey. He then turns to evaluating the
partictilar problems of each colony, col: centrating mainly upon economic
development.
In his concluding chapters, we find such lapidary remarks as " Indo-
China i the most conspicuous triumph of French colonization, just as it was
the 'most obvious failure in the years before 1897" (p. 496). Or again, "Algeria
occupied a peculiar place in the French colonial system : . . . that of a
central training-school in an educational system, in connection with which it
would be absurd to judge the success of the school in question simply by
the scholarship of the pupils" (p. 254). In -this way, the author ponders the
pros and cons, the success and the failure of French colonization in the '
respective territories. It is interesting to meditate about the vanity of colonial
glory, by tracing the consequences of what the author terms " French success."
The most conspicuous triumph of French colonization in Indo-China ended
in the disaster of Dien-Bien-Phu I Despite " the present French difflculties "
(p. 300.), Tunisia was a Fre,nch success in 1929, and, yet France could not resist
the Tunisian will to independence. Nevertheless it is of greater interest to
find that among the three Maghreb countries the author is most optimistic
about Tunisia and most. pessimistic about Algeria which " all in all . . . c an
not be taken. as a successful instance of French colonization", (p. 258). As to
Morocco, the author expresses his uncertainty in the following way : " It ' is
as yet too early to sum up the experience of the French in Morocco" (p. 587).
In this way* it appears that there exists a parallelism between the success of
the three as colonies and the peacefulness Qf their transition from colQny to
independent state. In this connection we may also mention the fact that
French West Africa, which is now on good terms with France after a rela-
tively smooth process of decolonization, is evaluated by the author in: very
high terms. According to him, " in every way, it ranks high in the list of
French colonial successes, especially for its native policy and its programmes
of agricultural specializationf' (p. 3,37).
Of course, the author is Tlot a prophet. His merits lie more in the variety
of the data he is taking into account as he evaluates French colonies of his
f -

448 The Developing Economies

own time, rather than in his predictive powers. We can use the index as a
tangible proof of the variety of subjects. For example, we find in the index
that he treats 53 different topics concerning Indo-China, 47 on Tunisia, 45
on Algeria, 34 on West Africa, 32 each on Madagascar and the French
Congo, and 28 on Morocco. There are less topics mentioned for the other
colonies, but this may give a general idea of the variety and the order of
interest concerning each colony. As for the great color ial figures, we find
that Jules Ferry, ME rshal Lyautey and Albert Sarraut are most often referred
to, within a list of about fifty names. Another interesting feature of the
book reflected in the index is the number of items related to colonial admin-
istration such as colonial budgets, centralization, councils in colonies, func-
tionaries, indirect rule, Iegislation for colonies, representation in Parliament,
etc., etc.
This leads us to the second part of the work, i.e., the chapters in which
generai principles and conclusions are treated. The first part of the book :
" French colonial policy in theory," and the last chapter of the second part :
"A comparative study " (Chap. XVII) are, in a way, self-explanatory. We
find in them a detailed analysis of the French colonial, economic political
and native policies, plus an especially interesting description of the central
organization. Thcse are used later as basic information from which the
author goes into the comparative study of French colonization crowning the
whole book.
The later chapters contain a detailed history of French colbnial theories
a_nd ideas. In connection with these theories, we find a description of the
ris and fall of colonial institutions and systems which were experimented
with more of less successfully.
To sum up the author's verdict on French colonialism, we may say that
a fundamental quality which he finds in the French system, in contrast to
the British, is the fact that " the French come more into contact with native
life," while the English " stand aloof' (p. 653). This remark seems to be of
great importante to the author, who mentions it in various contexts time
and again. For example, the author's sympathy for Lyautey is based orL the
fact that he was " imbued with a deep respect for the ordered plan and
rapid execution of British colonial methods" (p. 558). But, " on the other hand,
he noticed that the English method implies an aloofness from the native and
left only a very narrow scope for native co-operation" (p. 558). On the other
hand, Roberts' m0 t serious condemnation of French colonial methods is
directed toward the ideological and rationalistic trend underlying its colonial
theory, as in the idea of assimilotion or, again, in the artificiality of French
colonial legislation.
It is im:possible to summarize here all of the various topics and trends
of the intricate cross-currents of French colonial policies disentangled by the
author. But we should at least mention here his expertness in explainin
how different ideas and special experiences in colonial matters were combined
to make a particular figure play a determined role in a given situation. In
 1

Book Revlews 449

this respect it is an exciting experience to read the author's narration of the
deeds of such great c610nials as Marshal Lyautey or such great political
figures as Jules Ferry. But the author does not limit himself to a mere
historical account of French colonial theories and institutions. He proceeds
to an analysis of the dynamics underlying the views and actions taken by
those historical figures. Thus, the oppositioh between assimilation and associa-
tian which is mentioned in every book on French colonialism takes on a
particularly vivid outlook in this work. We learn, for example, that this
opposition is not self-contained and that historically there was another pair
of contradictory concepts preceding it : that of cantonnement and refoulement.
It is also helpful for the reader's understanding of these dynamics to trace
the various anthropological and sociological theories, such as Bastian's theory
of Elementargedanken and Le Bon's Lois psychologiques de l' volution des peuples.
It is interesting to encounter the problem of the French attitude towards the
natives. We read that " French native policy has thus crystallized in the
direction of associatian or ' protectorate ' policy, tendencies assisted by the
' human ' spirit in that policy, and by a certain curious sympathy with the
native soul, at least for the negroes, if not so noticeably for the Moham-
medans" (p. 121). This remark is particularly suggestive to a contemporary
reader who is interested in finding out some clues to the fact that at present,
as we mentioned before, African-French relations seem to be very friendly.
Over and above the other traits, whether economic or political, this one
seems to continue to work even at the present stage of decolonization.
Among the various conclusions we might have drawn from the book, we
quite arbitrarily chose to ment,ion the problem of the attitude toward the
natives. There are other interesting conQlusion contained in the book, such
as the author's evaluation of French economic policy. But we were attracted
by the problem of French native policy for the simple reason that the de-
velopment of mutual understanding between the ex-colonizing peoples and
the ex-c610nized peoples constitutes one of the most crucial problems of our
time. In this sense, it is profitable for everyone on both sides, whether in the
North or in the South, to try to understand the reasons which lead the
French colonial Empire to take the shape it took and to follow the course it
followed. (Kinhide Mushako ,ji)

YOICHI ITAGAKI. Ajia no Min oku-shugi to A'e ai Hatteu To nan

Ajia Kindaika no Kiten (Asian Nationalism and Economic Develop-
meht The Star,ting-Point for Modernization in Southeast Asia),
Tokyo, Toy Keizai Shimp6-sha, 1962, xii+328 p.

Since the war, studies of international affairs in Japan have developed

to ,a marked degree, but it must be admitted that as far as systematic studies
of international relations (considered as a field of study in the soeial sciences)
are concerned, this department of study is one in which methodology is stilr
450 The Developing Ebbnomies

lacking. The author of the work under r6view has maintained in his earlier'
publications, Sekai Setji Keizai Ron (World Politics ahd Econdmics); l:951,
Kokusai Kankei-ron no I :ihon Mondai (Basic Problems of the ThedrY of Inter-
national Relations), 1963, etc.; that a new department of bademic study
dealing with the substance of international relatiori as unified olitico-eco'
nomic phenomena must be established in order to make possible the cientific
investigation of the total reality of living international society. Th'e book
under review ljs a scholarly work=in which the authoir dmploys this 'method
of systematic study of international relations by presenting to the public the
accumulated results of many years of work in Asian studies.
The author's intention is " to make clear what it- is that prescribes the
essential nature of nationalism in the countries of South ast Asia and in this
connection to make clear the basic points at issue in economic development,
to elicit the points at which problems ' exist in the directions, fortrrs, scale,
and speed of the political, economic and cultural modernization of Asia, and
thereby to proffer sbme suggestions as to co-ordinates of observation to be
employed in etting up theoretical'Lframeworks or laying dowh policies for
the development of the backward countries" (Foreword, p.iv). This basic
way of thinking pervades the IArhole book. The author finds the prescriptioh
of the essential nature of Asian nationalism to consist in its character of
being " colonial nationalism," and he treats the special charaeteristics and
structtirb of the economies of Asia in the light of their colonial and backward
nature.
In Section I, "Asian Nationalism," - the atithor first gives a historical
analysis of the various types of dolonial policies employed by the countries
of Europe and America and their processes of d.evelopment. He then deals
with Asian nationalism as being something that exists in opposition to these
policies, having come int6 being and developed as colonial nationalism.
Further, the author finds the basic tasks of Asia;n nationalisin at this stage to
be reducible to two the establishment of political stability and the bring-
ing about of economic development and he arrives at the judgemcht that
whether Asian nationalism will be able to hold its own in its resistance to
Communism or not ¥ 'ill depend on the ways in which these basic tasks are
solved.
As difficult problems connected with the task of attaining political stability,
the author discusses religious authority and charismatic authority, the opposi-
tion between linguistic nationalism and provincialism, the question of minority
races ,and its relation to federalismj the crisis of parli2 mentary democracy,
and Communism. In connection with the tasks of econoinic development, he
points out the existence of a laige number of dilemmas, such ls those exist-
ing between polico-economic independence and dependence on foreign aid,
and between the development of capital accumulation for increasing produc-
tive capacity and the equalization of incomes in the interests of ocia,1 justice.
In. Section II, " The Theory o.f the Develdpment of, the Asian Economy,,,
the author first discusse the meanhag of ' economic backwardness,' and then
 Book Revie vs 451

draws attention to two problems faced by backward countries in their eco-

nomic development the problem of the structural changes ocdasioned by
cdntact between imPorted modern elements and indigehous pi6-modern ele-
ments, and the problem of those factors creating inequalities which have their
origin in the colonial relations of dependence of former days. In regard to
the first of these problems, the author examines Boeke's concept of ' dual
society,' Furnival's concept of ' plural sQciety,' and Frankel;s concept of ' multi-
racial society.' He emphasiz s that in such heterogeneotis backward societies
progress does not nece sarily create social welfare, and that consequently the
attainment of economic progress demands simult neous development of social
welfare. In regard to the second of these problems, the author mainfains
that the solution: is dependent on the nature of the efforts which are made
towards the organization of economic nationalism.
The author then goes on to survey the recent theories of the development
of the backward countries prbposed by such scholars as Rosenstein-Rodan,
Leibenstein, Nurkse, Hirschman, Myint and Myrdal. He notes a marked
tendehcy to rhove from a ' typological approach ' to a ' stage approach,'
considering this to be an index of progress in these writers ' consciousnes of
the - problems and methods of approach. The typological approach is one in
which greatest emphasis is placed on the question of hol'v the structural
features or character of a particular region are to be conceptualized, the
manner in which this' conceptualization is carried out prescribing the char-
acter of the theory of development. Ac.cording to the author, if the features
and character of a region are conceived as coming under the category of
' underdevelopment,' the resulting theory of development will be a ' pure
ecdnomics ' theory, while if they are conceived as coming under the category
of ' backwardne s,' the resulting theory of deyelopnient will be a ' sociolo gical
ecohomics ' theory. Further, if the features of a region are conQeived as
coming under the category of ' colonial baokwardness,' and not merely ' back-
wardness,' the resulting theory of developr?ent IA'ill be a ' politic l economids '
theory. In the case of such a typological approach, the deepening awareness
of the problem of the transition from ' underdevelopment ' to ' back !Vardness '
is accompanied by the conceptualization of the problems of ebonomic de-
velopment. This conceptualization is seen in terms of a ' transition period '
between' a static, traditional form of society and an autonomously developing
modern society, and not merely in terms of capital formation or industriali-
zatiori. Further, the author demonstrates how an increased consciousness of
the transition from ' backwardness ' to ' colonial backwardness ' result in the
problems of he ' transition period" being conceived as the problems of a .
non-continuous , structural change, a ' systein transformation ' Ieading away
from ' colonial backwardness.' He does not see these merely as problems of
a continuous evolutionary process of change consisting of the breakdown of
traditiorial 0ciety under the impact of an external shock and its reorganiza-
tion as a result of the 'reactions to this expbrience. The author ar ties that
herein lies the nec. essity for moving frorrf a typological approach in develop'

L
r"r- - -

4 52 The Developing Economies

ment theory to a stage approach. The author further suggests that as an

accompaniment to sucll a change in ap roach it is also necessaty for us to
change our co-ordinates of observation in the realm of policy theory in
economic development. Development policy thus begiris with the ' pure
economics ' approach and proceeds first (as in the theory of the Big Push) to
the conception of the problem of the ' development･ start ' (the problem of
hol'v to create the impulse which will break through th inertia of a static
economy and generate development). It next develops into the ' theory of
the strategy of take-off.' HolArever, ifwe adopt the standpoint of the ' political
economics ' approach, in which a region is designated 2 s a colonial back vard
territory, we are called upon to establish a ' stage policy theory.'
The author takes up Rostow's theory of stages of economic growth from
the above point of view, and while evaluating it highly as a policy theory
for the development of backward countries, attacks it for the reason that
the ' traditional society ' which Rostow takes as his point of departure is
reg.arded as indentical in character to a homogeneous backward society of
the Western European type. He goes on to point Qut that under colonialism
the traditional societies of Asia are heterogeneous, plural societies, an that
the factors making for inequality IA'hich are inherent in these societies con-
stitute a restricting condition in the course of the change from traditional-
society to transitional society, and later in the course of the change from the
transitional stage to the take-off stage. Consequently the author holds that
the provision of the preconditions for Asian transitional society cannot, as
Rostow maintains, be satisfactorily accomplished merely by means of social
overhead capital and the provision of facilities in the external econ:omy.
The author holds that in addition to these it is necessary to remove the
factors making for inequality which lie concealed in the colonial socio-eco-
nomic structure. This necessity leads to the question of a ' system transfor-
mation ' from a colonial system to a national system, and in many cases
raising the question of the ' system revolution,' the choice betweeli the
capitalistic nd socialistic systems of society.
In Section 111, " Religion and the Modernization of Asia," the problems
of the spiritual basis for the modernization of the societies and economies of
Asia are taken up in a manner similar to that in which certain problems
were raised by Max Weber in " Die Protestantische Ethik und der Geist des
Kapitalismus " (in Gesammelte Aufsdtze zur Religionssoziologie [Tubingen, 1920]).
In this way the author examines the present-day significante of the religious
reform movement in India 1 Hinduism, Egyptian Wahhabtya-ism; and the
Indonesian Muhanimadijah movement. He questions whether Asian religious
consciousness is capable or nbt of transcending traditionalism by self-regenera-
tion and of producing a new rational economic spirit. which will be distinct
from the rationalism of Western Europe.
The work under review is thus a very wide-ranging scholarly study which
attempts to approach Asian nationalism from three sides, from the points of
view of politics, economics and culture. The book contains an abund ncd of
 1

Book Revietvs 453

references to published material and reports of studies both in Japanese and

in foreign languages, and may be said to be of most valuable significance in
that it offers an overall view of the academic work on this subject.
The author is certainly correct in his basic assumption that the new
department of academic study 1'vhich is to treat international relations from
a systematic point of view can be developed only on the basis of positivistic
area studies undertaken within a certain frame of reference. In this sense
much profit is to. be gained from detailed omparative studies of past policies
for the control of colonial territories. On the other hand, however, positivistic
studies designed to enable the reader to grasp th socio-economic structure
of present-day Asia can scarcely be called adequate. The elucidation of
prewar colonialism and the problems of dual economies are of course indis-
pensable if we are to seek out the starting-point of Asian modernization.
But so long as there are no analyses of the present state of affairs, based on
positivistic studies of individual countries whi,ch go further and explore how
the static and rigid condition of Asian society which is a product of these
factors actually constitutes an obstacle to economic development at the present
time, it will prove difEcult to elicit concrete policies for development from
the study of this area. In this sense, too, such opinions as the author's
conclusion that " the stronger the rigidities left behind by colonial capitalism,
the greater is the possibility of a ' system revolution ' Ieading to a socialistic
system " (p. 205) must be recognized as mere products of abstract conceptual
reasoning, deflcient in persuasiveness as nece'.sary logical conclusions.
In connection with this lack of analyses of the present state of affairs,
we may add that it is unfortunate that the author's examination of the
international environment in which Asian nationalism. is placed is restricted
to the problem Qf Communism. Political alo:d economic pressure from the
advanced countries has continued to affect the countries of Asia even after
they have attained independence. Penetrating into the interior of the back-
ward countries, this pressure has produced more complicated effects than any
in the past. Leaving aside the question of whether this is to be characterized
as ' neo-colonialism ' or not, we may believe that the external factors in the
modernization of the economies and societie.', of Asia are not to be ignored.
It is precisely for this reason that there is a need to establish clearly the
position of Asian nationalism in relation to the question of the disparity ip
income between the countries of the Northern and Southern Hemispheres.
This may be said to be one of the important tasks left for Asian studies in
the future, along with comparative studies of the economies and societies of
the various countries of Asia. However, there is no doubt that the present
work is a worthy milestone in the development of Asian studies and the
theory of international relations in Japan, (.Yukinori It )