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Published online by Cambridge University Press: 23 March 2011
In the area under consideration in this paper, eight countries with a population of 600 million people or about 30% of the world's total population have acquired their independence since the end of World War II. National governments in this area are faced with serious economic, social and other problems, many of them long-standing but of more compelling current importance because of the raised expectations of the Asian peoples. The technical and financial resources of these governments for meeting their problems are limited and, in some cases, ineffectively and inefficiently used. Their ability to develop, in the short-term future, solutions to these problems judged effective by their people will determine the survival of these or similarly-oriented governments, or their replacement by chaos or extremism.
3 India, Indonesia, Pakistan, Burma, the Philippines, and the Associated States of Indochina (Viet Nam, Cambodia, and Laos.)
4 The fact that underdeveloped economies are characterized by a lower ratio of capital, entrepreneurship and skilled labor than developed economies does not necessarily imply that all economies so characterized are underdeveloped. Underdevelopment implies an unutilized capacity for productive employment of these factors. A low ratio of these factors to output may mean simply that no or little physical capacity exists for their productive employment.
5 Survey of Current Business, Supplement, National Income, 1951, U. S. Dept. of Commerce, p. 150.
6 However, in Jamaica and Puerto Rico the share of national income reported as profits and interest is higher than in the U. S., which is at variance with the hypothesis offered above—cf. National Income Statistics 1938–48 Statistical Office of the U. N.
7 Singer, H. W., Development Projects as Part oj National Development Programmes, U. N. Technical Assistance Administration, Volume I, p. 2, Lahore, 1951Google Scholar.
8 For various reasons a discussion of which would be outside the scope of this paper, it is frequently characteristic of underdeveloped economies that they must obtain major tax revenues through foreign trade taxes (e.g. exchange taxes and certificates, duties, etc.) rather than through internal taxes. In this connection, cf. Schlesinger, E. R., Multiple Exchange Rates and Economic Development, Princeton, 1952, pp. 20, 23–27Google Scholar.
9 N. Y. Times, Thursday, January 3, 1952.
