BOOK REVIEWS Precursors to an Economic of ? J Krishnamurty The Economic Development of South-, edited by C D Cowan; George Allen and Unwin, 1964; pp 192. 32s,. The Economic Development of and Japan edited by C D Cowan; George Allen and Unwin, 1964; pp 255. 35s. HE two books under review re­ nature of the contributions should not the twentieth century is a good case T present efforts to bring together be underrated. This is particularly study of the problems created by the the considerable work that his gone true of the volume on China and lack of an industrial tradition among into the study of Fast and South-East Japan. The study of the over kind workers in underdeveloped societies. Asia, in order TO assess the economic, trade between Russia and China by Alexander Eckstein in his paper on historical and political factors rele- Mark Macnall is certainly a com­ Sino-Soviet economic relations coun­ vant to a study of economic growth mendable effort. He not merely studies ters the Galenson hypothesis that and economic backwardness in a re­ the qualitative and quantitative impact these relations were disadvantageous to gion where both exist side by side. of this trade-—known as the Kiakhta the Russians. He suggests, instead Such an undertaking is certainly an trade—but also compares it with the that it led in mutual benefit and that ambitious one and success or failure trade at Canton. This comparison is perhaps the benefited should be judged in relation to the certainly instructive. The Kiakhta more. magnitude of the problems involved. trade, which began in 1689 and con­ The final paper on China by K R Fortunately, or unfortunately, eco­ tinued right down to 1838, was of Walker is more a study in the history nomic history especially of the mutual benefit to both Russia and of economic thought in modern China, underdeveloped countries of today — China, unlike the trade through the He studies the views of Ma Yin-Chu has tended to so into certain limited treaty ports, between Western Europe a leading economist and political lines of enquiry. There has teen a and China which was an unjust im­ thinker in China. Ma stands nut as tendency to concentrate on the study position. an advocate of balanced growth, birth of foreign trade and to a lesser extent, Kwang-Ching Liu's paper on "Bri­ control, and of more economic incen­ of extractive and plan fat ion industries tish-Chinese Steamship Rivalry, 1873- tives in planning. and of institutional aspects of agri­ 85" presents a comprehensive account Allen's paper on Japanese economic culture. To a large extent this stems, of the superiority of the British steam­ growth is far too general, and is not not from the adoption of the view ship companies, due largely to their in keeping with the specialist nature point of colonial rulers, but from the enterprise and initiative compared to of the other papers. Professor Rosov- limitations of the availability of data. the inertia of the Chinese companies, sky's paper on capital formation in To some extent the two volumes under subjected to continuous intervention Japan is an excellent piece of quanti- review reflect this problem. by an incompetent State bureaucracy. talive analysis and he succeeds in Out of the seventeen papers collect­ The gross inefficiency of the State showing that Japanese economic ed in "The Economic Development comes out even more vividly in Feur- growth was remarkable in the way of South-East Asia", no less than six werker's account of the attempt to tradition and modernity were inte- deal with foreign trade, and a good develop steel production in nineteenth grated to keep capital-output satios many more deal with the impact of century China. The failure of Kuan-tu low at the initial stages of industriali­ the West on export, industries. Partly, Shang-pan (government supervision sation. The last paper by Professor this is due to the fact that all these and merchant operation) to provide Shinohara carefully analyses changes papers were read at a conference held proper industrial leadership, sound in foreign trade in pre-war Japan. He in July 1961 at the London School of economic judgement and manoeuvr­ highlights the close correlation between Oriental and African Studies, and re­ ability in operation, and the belief of rapid industrial growth and foreign flect the orientation of western thought government officials in their omni­ trade. on the problems of Fast and South-Fast potence led to a tragic series of deve­ The volume on South-East Asia is Asia. In fact only three out of the lopments, whereby an ironworks was not us good as the one on China and seventeen papers are Asian contribu­ developed at a wrong location, was Japan. Leigh ton Boyce discusses Bri­ tions. The western orientation is ob­ manifestly uneconomic and was ope­ tish exchange banking; Hyde. British vious in the introduction — which is rated through chaotic financial meth­ shipping companies; Charles Fisher, common to both books—by C D Cowan, ods. Large parts of Feurwerker's population growth; Caldwell. Indo­ He says: "Many current problems... nesian exports under colonial rule: hark back to the growth of trading accounts read like reports on Indian Ingram, 's rice trade; Won?; ports and export crops, the importa­ public and private enterprise. For ins­ Lin Ken, Malaya's tin industry: Nor­ tion of western colonial regimes and tance: In the company's three livi­ man Parmer, unrest among Malayan western funds and skills, the related sions. ..there are at least 1,200 officials plantation workers and T E Smith. development of indigenous trading and executives. Most of them are immigration in Malaya. communities and the economic baves Sheng-Hsuan-huai's proteges and the relatives of his concubines. Their only of unrest underlying the nationalist Some general comments on some of movements of the late nineteenth and forte is enriching themselves...". This is certainly a paper which should be these papers seem to he in order. twentieth centuries." The result is a Francis Hyde's paper on British Shin- read by all persons concerned with number of case studies of Asia versus ping Companies and East and South policy-making in . the West, written largely from the East Asia, 1860-1939, covers much me western standpoint. Jean Chesneaux's paper on the Chi­ same ground as Liu's paper on British- At the same time, the scholarly nese labour force in the first Dart of Chinese Steamship rivalry, 1873-85, 1295 1296 THE ECONOMIC WEEKLY August 21, 1965 but Liu's work seems to be much of agriculture, forestry and the two The moral of the two volumes richer in detail especially statistical main mining exports, to the value of seems to be that it is high time spe­ evidence. This perhaps ' is one of the all exports was never below 93.9 per cialists in area studies got together advantages of taking up a more speci­ cent. and did more comprehensive work. fic problem and period, The final paper by Smith on immi­ Instead of a number of very scho­ Caldwell's paper on Indonesian ex­ gration and settlement of Chinese and larly works on different countries, on ports presents very interesting data. Indians in Malaya is in some ways an very specialised problems, a more He shows very clearly how in a colo­ indictment of the approach embodied comprehensive economic history of nial economy foreign trade has had a in almost all the papers presented in. Asia may thus come to be written. certain type of dynamism within spe­ the two volumes. Smith only considers One earnestly hopes that the specia. cified boundaries. Throughout the the pull factors operating on migra­ lists who met in the London School period 1865-1939, different products tion into Malaya, and their demo­ of Oriental and African Studies in predominate in the export market, yet graphic consequences. No attempt is July 1961 have by now got down to all these products really belong to the made to consider the push factors this vital task. It is rather a pity that same economic type—either plantation which led to migration out of China the editor of these volumes could not products, or the products of extractive and India and to the impact' of all provide a summary of the discussion industries. Table V (page 78) illustrates these factors on the economic attitudes among; these experts, and, therefore, this point well. During the period 1865- of these migrants. This would surely we are left without a clue as to its 1914, the percentage share of the value be a fascinating line of study. outcome. Power Politics in World Affairs Philip G Altbach Undercurrents in American Foreign Relations by M S Venkataramani; Asia Publishing House, 1965; Pp 218, Rs 14. HERE is certainly a need for in­ Crisis of 1956, and the U-2 incident of however, China was the keystone of T creased understanding of the 1960. The essays are very different in American Asian policy. It would seem background and basis of American nature, and stress different aspects of that the American policy makers have foreign policy. Venkataramani has per. American foreign policy. It would seem always had a difficult time understand­ formed a valuable service by analyzing that the author has committed diffe­ ing India and Indians. Indian reality several recent events in rent sins in each of his essays, thus just does not seem to fit into the well- policy from the point of view of an making it necessary to criticise each defined categories of American prag- outside observer. All too often foreign one and detracting from their value. mat ism, and Americana are hard pres­ observers try to understand American The first two essays, dealing with sed not to throw up their hands in policy without considering vital do­ the Great Indian famine of 1943, and despair at India's problems and lack mestic issues facing the decision makers the food crisis of 1946 respectively of discipline. in Washington. The present volume show that the author has an admirable is guilty of this fault, although this These essays correctly point out grasp of the facts of the situation and that the United States turned a deaf is somewhat offset by it providing a presents a competent presentation of reasonably well researched and docu­ ear to India's needs in 1943 and in 1946 the relation of the Urn red States to and documents the various manoeuv. mented analysis unbiased by undue these important events in India. Ven­ closeness to events as they took place res of the American government in kataramani neglects, however, to take dealing with this matter. It is particu­ in the United States. Perhaps most American domestic politics into ac­ important, however, is the fact that larly embarrassing for the United count. Indeed, throughout the two States, since it was at this time giving this book shows the possibility and essays runs the unspoken assumption the value of outside research into huge amounts of food and other mate. that India has, until very recently, rial to the Soviet Union, and by 1946 American foreign and domestic' policy. played a very minor role in American to the devastated nations of Europe. The United States is a complex society, foreign policy considerations. If this The author correctly states that the and the more understanding that can clear fact would have been stated at U S officials were more interested in be shed on its affairs, by Indians as the outset, the two events which are keeping Winston Churchill happy than well as by Americans, the better off under discussion would be easier to in feeding three hundred million stary. both countries will be. Furthermore, examine. it is only fair that since many Ameri­ ing people in India. But this is simply Probably the key elements in under­ the way that power politics works, and can scholars have come to India to standing America's reaction to India dissect its social and political the, the Allies were at this time involved during the past three decades have been in a life-or-death struggle with Nazi competent Indians should return the its ignorance of the country and its compliment in the United States, Germany; therefore, the needs of the people, and a basic unconcern for the Indian people, however legitimate, were This book consists of four separate subcontinent. Only since the Chinese passed over in the rush of events. To essays concerning America's foreign revolution of 1948 has the emphasis be fair to the United States, one should relations. These studies stand by them­ of the United States shifted from China state that any other great power in a selves, and are, in fact, unrelated to to other parts of Asia. India is now similar position would have chosen each other. The first two deal with seen as a counterweight to the grow­ the same response, America's relations with India prior to ing threat of China, and vast amounts India's independence and specifically of American funds have been poured Power politics does not excuse Ame­ concern India's recurring food problems. into India, although with varying re­ rican indifference to India's needs, The other two essays deal with the Suez sults. Prior to the Communist takeover, particularly, as Venkataranani points 1297