Challenging human poVerty continued from page 'n require further capital inflows should Many Governors also emphasized the tion, and trade barrier-lowering concepts now be redefined. "I realize the tempta- potential development role of the private proposed at earlier meetings of the tion that exists to hold rates and charges sector in supporting a proposed $480 UNCTAD, the Conference on Inter- on Bank loans to a minimum, but in the million increase in the capital of the national Economic Cooperation, and the long run neither the interests of the Bank International Finance Corporation. IFC's Non-Aligned Nations as parts of the Third nor those of its borrowers, would be well increasing role as the Bank's primary World's new international economic order. served by such a policy," he added. facility for assisting semi-industrialized Several Governors spoke in favor of the In his concluding remarks, Mr. McNa- middle-income developing countries was representation of the People's Republic of mara recognized the Governors' concern stressed by 's Moshe Sanbar, who China in the Bank and the Fund. over this issue, and proposed a solution: suggested the Corporation give specific The Governors widely accepted a theme "once an adequate recapitalization of^the attention to helping developing countries sounded in the opening addresses of IBRD has been agreed upon, the condi- obtain export credit refinancing. Other Chairman Imady and President McNa- tions that have made this hardening Governors noted IFC's "multiplier effect" mara; that, as Mr. McNamara repeated in necessary will have been removed, and in drawing private capital to developing his closing remarks, "the primary devel- the terms can then be moderated." countries through its participation in proj- opment effort affecting a society must be A continuation of the Bank's middle- ects. made by the people of the society itself." priced Third Window—set up in 1976 for Other important sources of concern to At the meeting's end, both Mr. McNa- a limited term—was urged by a dozen the Governors included increasing the mara and Chairman Imady felt a common developing country Governors as a means disbursement rate of Bank and IDA ground had been reached. "It is clear that of easing the widening cost differential assistance, particularly through more pro- a broad consensus has emerged," the between conventional Bank lending and gram and sectoral lending to, as Jamaica's Bank President said. "To a casual observer, IDA credits. Philippine Governor Cesar Governor David H. Coore, speaking for it may seem that the collective views of E. A. Virata, also representing 19 Latin the Caribbean island nations said, "intro- our 127 member governments are divided. American countries, asked the Bank's duce a much-needed element of speed and They are over details—as one would member countries to "consider favorably flexibility into the ability of the Bank to expect. They are not over fundamentals." the extension of the Bank's Third Win- respond to the urgent needs of the devel- "No unanimity has emerged; none was dow, as well as additional contributions oping countries." to this facility," while Thailand's Amnuay Governors also focused on developing expected," Chairman Imady said in clos- Viravan felt the facility was gaining country trade and debt problems, with ing the Thirty-First Bank Annual Meeting. "great significance" and hoped it would many Governors urging that the Bank "I feel that we have, however, reached a become a "permanent feature of Bank take a leading role in implementing the broader and deeper understanding of the activities." debt rescheduling, commodity stabiliza- problems we must face together." PU

glected international financial affairs. This value system and of the pros and cons of book, with both its merits and its short- floating exchange rates are less com- comings, is a typical example of their work pelling than the analysis of political fac- in this field. tors. For example, the author makes much Brenner's analysis is focused on the of the expansion of the Eurocurrency emergence of a system of managed float- market as a major cause of world infla- ing rates among the major industrial tion, while most economists would place Book countries in 1973. He shows how the the blame squarely on expansionary national interests of the major countries, monetary policies; and he seems to be notices in conjunction with the institutional and arguing that price elasticities in foreign ideological predelictions of the officials trade have proved to be low, while taking and politicians responsible for the relevant into account neither the considerable time decisions, ruled out alternative responses lags involved nor the fact that much of the to the financial difficulties facing the exchange rate movement in recent years industrial world during this period. He simply offset differential rates of price gives plausible and interesting reasons for inflation. Mr. Brenner also fails to see that his thesis that neither freely floating rates independence of monetary policy resulting nor a complete reorganization of inter- from floating rates is not "illusory," as he A political view national monetary institutions and rules claims, but is simply greatly reduced when was politically feasible at that time, nor is rates are managed with the aim of main- likely to be in the foreseeable future. His taining orderly exchange markets. Brenner, Michael J., The Politics of descriptive material is drawn notonlyfrom This is a useful book to read for those International Monetary Reform—The published sources but also from personal interested in the future evolution of the Exchange Crisis, Cambridge, Mass., interviews with highly placed^ officials, international monetary system, since this U.S.A., Ballinger Publishing Company, bankers, and economists in the United will continue to be determined by political 1976, xiii + 144pp., $13.50. States and Europe, as well as the Inter- factors. However, the reader is warned The dramatic changes that have taken national Monetary Fund and the Bank for that the going is made heavy by a place in the international monetary system International Settlements. formidable combination of a turgid style since 1971 have attracted the attention of The discussions of the underlying eco- and social-scientific jargon. political scientists, who had hitherto ne- nomic causes of the breakdown of the par Anthony Lanyi

46 ©International Monetary Fund. Not for Redistribution Mr. Simha obviously reads extensively Subsequent chapters cover, inter alia, Oil and all that and has an uncanny ability to get to the revision, updating, and provisions for heart of the matter. Hence, the wheat has change in agreements, relinquishment of been thoroughly sorted from the chaff. His rights, expropriation, nationalization, in- Simha, S.L.N., and Hemalatha, D., Oil, personal views on many of the questions vestment .insurance schemes, penalties International Payments, and Reform, discussed—for example, that the official and sanctions in agreements, sovereign Madras, India, Institute for Financial price of gold should have been at least immunity and the act of state doctrine, Management and Research, 1975, vii + doubled long ago—also show through the and avoidance of nonenforceable provi- 271 pp., Rs 50. exposition, giving added interest to the sions. Abuses practiced by corporations book. The writing style is refreshing— and host countries alike are reviewed. candid, unpretentious, and, in places, The authors have categorized both the In the past decade, Mr. S.LN. Simha, an almost conversational. successful and the not-so-successful at- economist of considerable experience in temps to regulate markets for raw ma- international finance—previously with the Margaret Garritsen de Vries terials. Of interest is their analysis of the Reserve Bank of India and now Director of necessary ingredients for a successful the Institute for Financial Management Minerals, inter alia consortium of producing countries. The and Research in Madras—has been ex- authors conclude this manual with a ceedingly prolific, writing books entitled model agreement to illustrate and assist Gold and the International Monetary Sys- Smith, David N. and Louis T. Wells, Jr., those commissioned with negotiating and tem, International Monetary Reform, Eco- Negotiating Third World Mineral Agree- drafting mineral agreements. nomic and Social Change in India, Essays ments: Promises as Prologue, Cam- The subject matter of this book is of in Finance, and All the Bank's Men, as bridge, Massachusetts, U.S.A., 1975 immense importance at this time, in light well as editing other volumes. xiii + 267 pp., $17.50. of the 1973 oil embargo and the fear of a His latest work. Oil, International Pay- This is a perceptive and objective book future mineral shortage. The global min- ments, and Reform, written with Miss D. eral reserve balance is gradually shifting Hemalatha, is a small but comprehensive illuminating most of the major problems from the industrialized to the developing book giving some historical background surrounding the negotiation of min- and an analytical basis for understanding ing agreements. countries who do not have the means and three major contemporary economic prob- The analysis begins by describing indi- resources to support exploration and ex- lems: oil and energy, the current world vidual characteristics of these agree- ploitation on their own. They need the payments situation, and international mon- ments that cannot be isolated from the expertise and support of the multination- etary reform. The volume aims at readers economic, political, administrative, and als. Ways and means must therefore be interested in a general, but not superficial, social forces that comprise the environ- found to create a more stable and co- survey of these problems. It achieves its ment. No two minerals are alike nor are operative environment to permit the equi- purposes well, and should be of great any two countries or corporations, and table and orderly development of new value not only in India but throughout the each transaction depends on the particu- sources of supply. This book contributes world. lar surrounding factors. Comparisons are toward an understanding of the issues The portion of the book dealing with oil drawn between past and recent trends in facing host countries and private corpora- and energy (mainly written by Miss mining agreements. tions alike and thus performs a timely Hemalatha) includes a brief review of the The authors outline the various issues public service of great value. that negotiators must address and re- growth of the oil industry since the Rita R. Capon and David M. Sassoon nineteenth century and a longish chapter solve—such as royalties, income and ex- describing the impact of the 1973 oil price port taxes, equity sharing, management hikes on India's balance of payments and control, land and mineral rights, allowable Is it worth it? the strategy adopted by the Indian Govern- deductions, depreciation, amortization ment to deal with the resulting payments and depletion, debt financing, tax incen- difficulties. There is also a short account of tives and holidays—and what these provi- Mishan, E.J., Cost-Be,nef it Analysis, New how the international monetary system sions, and the ways in which they may be York, N.Y., U.S.A., Praeger Publishers, functioned from 1945 to 1973 and a fuller implemented, may mean over the short 1976, xx + 454 pp., $25.00, $8.95 (paper- exposition of the issues involved in mone- and long term for both parties. They have back). tary reform and the results of the nego- classified agreements under: traditional tiations conducted through 1975. The concessions; modern concessions; pro- Dr. Mishan's new book is an expanded and chapter on world payments gives a sum- duction-sharing, service, and work con- partially revised edition of his 1971 contri- mary of the recent developments in the tracts, describing the evolution from one bution, and is offered as an introductory balance of payments of several industrial stage to the other. The authors point out text on cost-benefit analysis. The topics countries and of the prospects of their that the bargaining power of the corpora- covered include concepts of economic lending to the developing nations. Many tion is strongest at the exploration stage costs and benefits, external effects, invest- statistical tables are included, and appen- and weakest at the production stage after ment criteria, and uncertainty. In addition, dices contain the Committee of Twenty's it has invested its resources. They note the volume contains several simplified Outline of Reform and describe the that traditionally companies were unwill- case studies, a section on particular prob- "snake in the tunnel" exchange rate ing to undertake the high risk of explora- lems (such as the valuation of time arrangements of the European Economic tion without agreeing in advance on the savings), and a series of appendant notes Community, the swap arrangements of the regime that will govern exploitation should which refine and expand arguments pre- central banks of the industrial countries, this prove feasible, a linkthat may in future sented more simply in the main text. and the nature of the Indian exchange rate be broken by the U.N. Mineral Exploration The book represents a logically consis- system. Revolving Fund. tent statement of Dr. Mishan's views on

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©International Monetary Fund. Not for Redistribution cost-benefit analysis, many of which have by trade tariffs and other restrictions. issue in international circles everywhere, appeared previously in various economic Once all the costs and benefits have in particular in a soul-searching Europe. journals. The logical consistency stems been identified, the author recommends Looking for a new role on the international from the author's careful and precise that the project be judged against an scene, the Community decided many years definition of cost-benefit analysis as an investment criterion based on a "normali- ago to expand its relations with some key exercise in welfare economics designed to zation" procedure, which involves, among groups of developing countries. Oppor- determine whether or not any given other things, establishing a common tunity was provided by the Nine's ties with project leads to a potential Pareto improve- capital outlay and common terminal period its ex-colonial countries, and by the bounty ment (a situation in which gainers can for all projects under review. The objective of common interests created by centuries more than compensate losers, although in using this procedure is to ensure that of human migrations and trade all around compensation is not actually effected). the net-present-value criterion and the the European continent. These ancient Such a definition, although firmly bedded internal-rate-of-return criterion yield iden- relationships have been transformed into a in traditional welfare economics, does not tical rankings of a number of alternative series of freely negotiated development allow for a direct consideration of interper- investment projects. Since, however, all cooperation and trade agreements. The sonal income distribution effects within normalized costs and benefits are com- Lome Convention of 1975 is the main the cost-benefit framework and conse- pounded forward to the terminal period, element of this cooperation—linking the quently may be viewed as rather narrow. A the net-present-value criterion is actually EEC to 46 African, Caribbean, and Pacific number of reasons are advanced for a net-terminal-value criterion, and the (ACP) countries. The recent Maghreb excluding income distribution weights (for relevant internal rate of return is that rate Agreements and existing or prospective example, their use mayentailtheselection which equates normalized terminal bene- agreements with several Mediterranean of projects which do not represent a fits and the normalized capital outlay. countries constitute the other element of potential Pareto improvement), none of A numerical example involving three the EEC's North-South connection. which, however, are convincing to this projects is used to illustrate that the The literature of the Lom£ Convention is reviewer, especially in view of Dr. Mish- adoption of this procedure does ensure already abundant. Drawing largely on the an's explicit recognition that in the final that project ranking is independent of the submissions made by the Commission, the analysis projects which meet the potential choice of investment criteria. This is an central administrative body of the EEC, Pareto criterion may, nevertheless, have to interesting point: but is it necessary to use to the Council of Ministers, Mr. Bourrinet's be rejected if they entail adverse income the normalization procedure in practice? book provides a good review of the history distribution effects. For example, exactly the same ranking of and of the political motivations behind the Whatever one's views on income distri- the three projects can be obtained using Lome Convention, followed by an analysis bution weights. Dr. Mishan's contribution the more usual net-present-value criterion of the trade and financial cooperation be- is, nevertheless, still of interest, given the with all costs and benefits discounted at tween the two groups of countries par- author's own demarcation of cost-benefit the social yield on private investment, this ticipating in the Lome agreement. The analysis. From this point of view, the being the relevant alternative use of material is exhaustive and well presented author's sole concern with potential capital in Dr. Mishan's example. If, in fact, and, in spite of some diplomatic euphe- Pareto improvements is an advantage, the computationally simpler, net-present- misms and concessions to the institutional since he is able to clarify a number of value criterion is generally equivalent to rhetoric of the Community, it would pro- issues relating to the evaluation of project any of the normalized criteria, it is not clear vide a good source of information to benefits or costs which are not adequately why these latter are to be preferred. students. In the concluding remarks the captured by a straightforward appeal to In summary, the author's attempt to author mentions that the Lom6 Conven- market prices. In particular, considerable write an introductory text on cost-benefit tion may be just a step toward a new insight is brought to bear on a variety of analysis is only partially successful: while international economic order. This point conceptual problems ranging from the some sections (especially that on external can be readily conceded if it simply means appropriate treatment of environmental effects) are to be recommended, others to remind the reader of the need to con- spillovers to the measurement of the cost (especially that on investment criteria) are sider the EEC-ACP relations in a broader, associated with the loss of life or presented more clearly elsewhere. worldwide, and long-term perspective. But disablement. many readers would disagree with its Lyn Squire Externalities aside, the author's ap- literal implications since many of the sup- proach involves the use of domestic prices, porters of the Lom6 Convention favor re- consumer surplus, and factor rents as the gional cooperation agreements just be- basis on which to measure costs and Quo vadis EEC? cause they are skeptical about the practical benefits. With regard to tradable commod- value of universal arrangements of the ities, the reader is advised, for example, to type proposed at UNCTAD. measure the benefit of additional exports Shlaim, Avi, and G.N. Yannopoulos, The The Mediterranean Basin is the other by observing the domestic value of the EEC and the Mediterranean Countries, area of the developing world on which the specific goods that will be imported as a New York, N.Y., U.S.A., Cambridge Uni- European Community has concentrated its result of the additional foreigh exchange versity Press, 1976, vii + 350 pp., $27.50. efforts and established a network of thus made available. No advice, however, preferential agreements. A review of the is offered on how this is to be achieved. In Bourrinet, Jacques, La cooperation eco- situation is presented by Messrs. Shlaim practice, some form of averaging over a nomique eurafricaine, Paris, France, and Yannopoulos in their collection of brief number of commodities will almost cer- Presses Universitaires de France, 1976, essays. The contributions are from 16 tainly be required, in which event the 189pp. authors of different background, although author's recommendation amounts to the with a prevalence of academics—5 from use of a shadow exchange rate designed to The place the European Economic Com- the University of Reading—relying on di- allow for approximate distortions caused munity occupies in the world is a current verse sources of information and there-

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©International Monetary Fund. Not for Redistribution fore providing a welcome variety of views the Community. For one thing, the atti- does not present us with a basis for on the subject. After touching on the tudes of the Nine about the scale of the attributing these intangibles with values general trade aspects with articles by Community's effort in the Mediterranean which can be used on a par with costs and M. McQueen, M.E. Kreinin, and D. are far from uniform. For another, the prices, but each chapter does provide a Kebschull, the book deals with agricul- superpowers are apt to ponder more and rigorous examination of one aspect of the tural development (J.S. Marsh) and with more closely the political effects that problem. immigrant labor (G.N. Yannopoulos)—the really substantial economic cooperation The first, "Failures of Discourse," dis- latter contribution including a vast bibli- can have in such a sensitive and delicately cusses what a technology responsive to ography; then it offers some country balanced area as the Mediterranean. intangible values would look like. The studies by G.J. Kalamotousakis on Greece, second chapter analyzes the failure of the J.N. Bridge on Turkey, J.B. Donges^on Vittorio Masoni specific technical studies relating to the Spain, and Sergio Minerbi on Israel Tocks Island project, and this is followed by (Portugal was left out but many references Changing values an examination of why our society places are made to it in various parts of the book). so much value on human wants and There are two regional studies: one by R. outlines an alternative ethic. Then comes a Aliboni on the Maghreb and one by G.V. Tribe, Laurence H., Corinne S. Schelling, chapter on the "rights" of the environ- Vassiliou on the Arab countries of the and John Voss (Editors), When Values ment, which detracts from the analysis Eastern Mediterranean. The editors have Conflict: Essays on Environmental Anal- rather than adds to it. This is followed by dealt with the Mediterranean Basin ac- ysis, Discourse, and Decision, Cam- two chapters on the political functions of cording to a geographically precise defini- bridge, Mass., U.S.A., Ballinger Publishing analysis, and how intangible values can be tion which leaves out the Arab oil Company, 1976, xv + 178 pp. incorporated into systems analysis, and producing countries. Thus only the non- two on empirical analysis. explosive olive oil is mentioned at any A cost-benefit analysis of a factory or an oil There are problems with the book; the length in the book while the OPEC is refinery has to assume a general agree- lack of overall cohesion leads to a lack of referred to only once. The book ends on a ment on certain basic values—how to conclusiveness at the end. There is a global note with an article on Medi- define and therefore measure the costs tendency to romanticism which detracts terranean policy and the Community's and benefits of the project to the various from the attempt of the book to be external relations by S.Nenig and another groups affected. Otherwise, obviously, the philosophically rigorous. There is some one by D. Robertson also dealing with the analysis loses its usefulness as a tool to overlapping and repetition, and some Mediterranean policy in a worldwide help shape policy. Today, for various points are overemphasized—a lot is made context. reasons, basic values are changing. Profit of the difficulty of defining the values Neither the introduction nor the final is not seen as having so much importance under discussion (they are described vari- notes attempt to provide a unifying theme for determining policy, people are no ously as "fragile," "soft," and so on). And or a single conclusion to the book, which, longer always sure that immediate human although the language is generally clear therefore, remains a collection of studies wants should have priority in the face of and free of jargon, there are some lapses— by scholars of different persuasions. The ever decreasing quantities of resources to a process "legitimates" an outcome, and book was meant to outline and discuss be squandered. This book arose out of the facilities are "factored into" studies. current policy developments and the edi- failure of technical analysis to resolve one Nevertheless, this is a serious attempt at tors have fully accomplished their pur- particular conflict involving major envi- a systematic analysis of a problem which pose. Each article provides the essential ronmental issues, but it has a philo- all of us encounter with varying degrees of information on the topic it deals with, sophical relevance to analysis and policy- urgency in our daily lives. How do we which makes the book recommended making everywhere. choose between the "rights" of people to reading in the academic sector as well as In 1962 the U.S. Congress authorized change the environment, and the "rights" in the political "think tanks" and inter- the construction of a major dam on the of the environment to remain intact, national circles. In this way, the book Delaware River at locks Island to create a between the "rights" of man today and provides an excellent introduction to, and 37-mile-long lake along the New Jersey- those of future generations? This book whets the appetite for, a series of ques- Pennsylvania state border. In spite of the does not provide the answer (perhaps one tions that have a strong bearing on the authorization, the decision to build the is not possible in the sense that we expect), Community's future stance toward the dam got stuck, and is likely so to remain. but it does provide a stimulating discussion Mediterranean countries. As Robertson Like many other decisions involving envi- of the issues involved. rightly inquires at the end: what are the ronmental issues, it proved impossible to Joslin Landell-Mills real costs and benefits of the EEC- resolve the conflict over whether there Mediterranean policy in economic and should be flood control, increased water political terms? Is there any danger that the supply, electric power, and a new recrea- Toward better accounting system of multiple trade agreements the tion facility, at the expense of destroying Community is evolving may upset the the local communities and the scenic international order so painfully achieved beauty of the area, and at the very least Davidson, Sidney, Clyde P. Stickney, and by means of the GATT? interfering with its ecological balance. Rowal L. Weil, Inflation Accounting, New The book was conceived in the domain of When Values Conflict is a collection of York, N.Y., U.S.A., McGraw-Hill Book Com- "low" politics, the affairs delegated by the essays about present-day decisions involv- pany, 1976, viii + 241 pp., $12.50. Nine to the Community. However, an ing the environment, or any other "intan- answer to the questions the book poses at gible" values. These values are funda- A significant problem that arises in the the end would quickly lead to the realm of mentally unquantifiable and have never preparation of accounts is that with infla- "high" politics, including defense and been systematically included in the tech- tion conventional units of measurement cultural rayonnement, jealously guarded nical analyses which are produced as a become unstable and change in value too by each of the Nine sovereign partners of background to policy decisions. The book quickly to be useful. Although this aspect

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©International Monetary Fund. Not for Redistribution was recognized as early as 1936 and some attempts made to evolve new concepts of accounting to reflect the changes in the Other books received purchasing power of the units of mea- surement, the issue has come to receive McKenzie, George W., The Economics of Benecke, 'Dieter W., Wolfgang Frank, greater attention recently. the Euro-Currency System, New York, Estanislao Galofre', Juan Carlos de la Jara, Most of the suggested improvements in N.Y., U.S.A., Halsted Press, 141 pp., 1976, Carlos Mario Londofio, and Carlos Vil- the system are still in an evolutionary form S 15.95. larroel. Das Genossenschaftswesen in Lateinamerika, Munster, Fed. Rep. of and much, however, remains to be done. Bhattacharya, Anindya K., Foreign Trade Essentially, the recent proposals envisage and International Development, Lexing- , Westfalische Wilhelms-Uni- versitat, Institut fur Genossenschaftswe- the introduction of current value account- ton, Mass., U.S.A., Lexington Books, 1976, sen, 1976, 332 pp. ing or a system of general price level xvi + 107 pp., $13.50. adjusted accounting (GPLA). The latter Simha, S.L.N., Development Banking in Huq, Muhammad Shamsui, Education, system has been adopted by the Financial India, Madras, India, Institute for Financial Manpower and Development in South Accounting Standards Board (U.S.A.), and Management and Research, 1976, xvi + and South-East Asia, New Delhi, India, this book seeks to furnish a practical guide 340 pp., Rs 55. Sterling Publishers Private Limited, 1975, on the new method to those engaged in xvi + 221 pp., Rs 50. Sherbiny, Naiem A., and Mark A. Tessler the compilation, analysis, and audit of (Editors), Arab Oil, Impact on the Arab accounts. The GPLA system implies a Pyatt, Graham, and Erik Thorbecke, Countries and Global Implications, New change not merely in the units of mea- Planning Techniques for a Batter Future, York, N.Y., U.S.A., Praeger Publishers, surement but a change covering a wide Washington, D.C., U.S.A., International 1976, xi +327 pp., $21.50. range of accounting practices, which are Labour Off ice, 1976,ix+91 pp., SwF 17.50 examined in considerable, detail in the (paperback). 'Fontaine, Roger W., and James D. book. Theberge (Editors), Latin America's New Hansen, Roger D., The U.S. and World The very fact that it is written primarily Internationalism: The End of Hemi- Development: Agenda for Action 1976, as a guide also severely limits the scope of spheric Isolation, New York, N.Y., U.S.A., New York, N.Y., U.S.A., Praeger Publishers, the book. Presumably for this reason, it Praeger Publishers, 1976, xvi + 327 pp., 1976, x + 222 pp., $4.25 (paperback). makes no attempt to provide either an in- $21.50. depth analysis of the conceptual issues, American Enterprise Institute for Public Buchholz, Edwin H., Heinz Schim- nor the public policy implications of the Policy Research, The Japan-U.S. As- meibusch, and Manfred Wulff, Grenzen proposed system for taxation) price con- sembly; Proceedings of a Conference on der Planung, Zurich, Switzerland, J.C.B. trols, etc. Nor does it cover any discussion the Threat to the World Economic Order, Mohr (Paul Siebeck), 1976, 185 pp., of the experiences of other countries in Washington, D.C., U.S.A., 1976, xiv+151 DM50. this regard. pp., $8.00 (cloth), $3.50 (paperback). Apter, David E., and Louis Wolf Goodman While the authors recognize that the Hellinger, Stephen H., and Douglas A. (Editors), The Multinational Corporation ideal system would be a combination of Hellinger, Unemployment and the Multi- and Social Change, New York, N.Y., current value accounting and GPLA nationals; A Strategy for Technological U.S.A., Praeger Publishers, 1976, xiii + 234 (which in their view, may not be accepted Change in Latin America, Port Washing- pp., $16.50 (cloth), $5.95 (paperback). in the foreseeable future), they fail to ton, N.Y., U.S.A., Kennikat Press Corp., consider the implications of the recent 1976, 158pp., $12.50. Horvath, Janos, Chinese Technology advocacy by the Sandilands Committee Transfer to the Third World: A Grants (U.K.) of a system of current cost account- Benecke, Dieter W., Cooperaci6n y Economy Analysis, New York, N.Y., ing which aims precisely at such a combi- Desarrollo" Santiago, Chile, Ediciones U.S.A., Praeger Publishers, 1976, x+ 101 nation. Nueva Universidad, 1973, 280 pp. pp., $12.50.

A. Premchand

Vedavalli, R. Private Foreign Investment information not previously available. The and Economic Development: A Case book covers the history of foreign invest- Study of Petroleum in India, Cambridge, ment in oil, and analyzes at length pricing Finance & Development England, Cambridge University Press, policies regarding crude oil, petroleum does noi attempt to evaluate 1976, xv+ 219 pp., £7.00. products, and tanker freights. The agree- books or contributions (hereto ments between the foreign investors and by Executive Directors or This book by Miss Vedavalli traces the the government on joint-refinery ventures members or former members of Ihe staff of the economic effects of direct private foreign in the 1960s are examined, as is invest- International Monetary Fund investment in petroleum in India. ment in exploration, and the impact of total or the . The example of India is particularly in- petroleum investment on the economy, but notes Ihem as likely teresting; it has the second largest popula- particularly the implications on balance of to be of interest to its readers. tion in the world, and its growth in income payments. There is a chapter on the per head has kept pace with population growth of the State sector and the role of growth. Petroleum is fundamental for its the Soviet Union in the Indian petroleum development, and this account of the often industry. The book in its concluding controversial roles of the major oil com- chapter also analyzes the prospective role panies and the government in the fields of of private foreign investment in petroleum, oil exploration, production, refining and especially in oil exploration and production distribution in India is extensive, and uses in India in the post energy crisis period.

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©International Monetary Fund. Not for Redistribution