Notices Other Countries

controls, introduced in the economic recovery report such figures to the World Bank, in- of the early 1970s, would have succeeded creased from $1.2 billion in 1967 to $8.3 except for the world crop failures, the price billion in 1973. At the same time, the propor- increases due to the devaluations of the dollar, tion of such lending commitments by com- and the inevitable inflationary pressures as the mercial banks to the total commitments by all recovery turned into a super-boom. private lenders rose from 29.4 per cent to 70 Book The U.S. inflation and associated weakenin per cent. U.S. commercial banks may be said to of its balance of payments is considered to have have directly and indirectly (through branches, been a major factor in causing the inflation in subsidiaries, and affiliates overseas) played a notices other countries. This was partly because other very important part in this expansion of such countries were reluctant to make the appro- private lending both in quantitative and qualita- priate upward valuations of their currencies for tive terms. fear of losing the export advantages gained This book, written by 12 U.S. commercial vis-a-vis the United States, and partly because bankers and one professor, is admirably edited their central banks could not [would not3 by another banker. It is advertised as "a basic insulate their economies sufficiently from the reference and training source," which is saying expansionist effects of the associated large a lot but maybe not enough. That the blurb inflows of money from the United States. says too much has nothing to do with the book Seeking cures The author explains that the current severe or these authors. It does lack a quantitative recession began in 1973 as demand for auto- dimension because statistics in any detail about mobiles fell and high interest rates restricted offshore lending by banks in the United States Solomon, Ezra, The Anxious Economy, San demand for housing; but it went unrecognized or their overseas branches, subsidiaries, and Francisco, California, U.S.A., W.H. Freeman and untreated because for nearly a year an affiliates do not exist. Although U.S. bankers and Company, 1975, 119 pp., $3.50 (paper). unsustainably high rate of inventory hoarding engaged in offshore lending are very interested in anticipation of rapid price rises was ignored in having a great deal of detailed information Life is breathed into the tools of economic by the available statistics. A noninflationary about the financial position of their clients, analysis when they are set to work interpreting recovery from the recession is possible ac- that interest does not seem to create much recent economic history. This is especially true cording to Solomon, but it depends on a enthusiasm for statistical reporting of their own when that history is the turbulent one ex- slowing of the wage demands in order to catch activities. This also seems to be true of bankers perienced by the developed countries over the up with past price increases, reinforced by the in other countries. The resulting ignorance past decade. I n The Anxious Economy, Profes- downward pressure on prices from rising pro- which can only partially be reduced by esti- sor Ezra Solomon, whose own history extends ductive capacity to meet insufficient money mates based on inadequate data may contribute from command of a British navy gu.nboat to demand, and followed by a sufficiently prompt to some of the uncertainties and difficulties of membership in the three-man Council of Eco- upturn in employment to forestall adoption of which the authors speak. nomic Advisors to the President of the United very strong expansionist policy measures. This important element aside, the adver- States, interprets the economic events of the Resort to the last measure would prove infla- tising blurb says too little because the book past 15 years and extends his analysis to the tionary and lead to pervasive wage/price con- contains some very interesting and in places alternatives for getting through the present trols. original analysis of problems in an area of recession. While the analysis is concentrated on Economists may find The Anxious Eco- international finance of which this is possibly recent events in the United States, the interna- nomy lacking in substance as far as Solomon's the first comprehensive account. Three chapters tional character of the problems faced by the positions on controversial issues are concerned. in particular deal with analytical problems United States and the impact of its problems on But for the non-economist who has some which are unfamiliar to most persons. They other economies should make the book appeal familiarity with economic concepts the deal with "Country Risk," "Foreign Credit to a wider audience. authority given to the author's views by his Analysis," and "Loans and Placements to For- The author attributes the succession of strategic position as an Economic Advisor, and eign Banks." The chapter on country risk economic problems experienced by the United the brevity in his survey of such broad scope, includes a section on "indicators of economic States, including inflation, exchange deprecia- will justify the chosen approach. growth and creditworthiness." It is a concise, tion, and recession, chiefly to the easy fiscal William H. White critical review of the validity and applicability and monetary policies of the 1960s. The desire of a number of indicators often used uncriti- to improve social welfare, to attain fuller cally. Here as elsewhere in the book it is clear employment, and to block incipient increases in that the authors are keenly aware of the unemployment caused a cumulation of budget Basic banking rewards (profits) and penalties (losses) to which deficits. These deficits created an environment they are subject. These induce an unusual of excess money demand for goods and serv- concern over the meaning of measurement and ices, and led to the conviction that the inevit- Mathis, F. John (editor). Offshore Lending by a sensible skepticism about the predictive able episodes of rising prices would not be U.S. Commercial Banks, Bankers' Association power of the results of quantitative analysis. countered by any significant periods of price for Foreign Trade and Robert Morris Asso- The chapter on foreign credit analysis is an decline. Given the expansionist budgetary ciates, Washington, D.C., and Philadelphia, Pa., extension of the discussion from country risk trends, a restrictive monetary policy of the U.S.A., 1975, viii + 311 pp., $16. to the apparently more familiar corporate required intensity was politically unattainable. financial analysis. But these corporations are Excessive wage demands are, for the most In the past six years, a rapidly increasing foreign to the U.S. banker. So the author takes part, ruled out by Professor Solomon as a cause amount and proportion of external finance for the reader through the unfamiliar area of alien of the inflation, although demands for wage developing countries has come from com- accounting concepts; inflation and departures increases to catch up with prices prolonged the mercial banks. The commitments by these in inventory accounting (although these are inflation. The author also feels that wage/price banks to lend to 86 developing countries, which getting more familiar by the day); and the

©International Monetary Fund. Not for Redistribution problems which arise from changes in the rate Income determination by birthright, labor of exchange. His concluding remark that "an Meade—radical? market conditions or profit-making is attacked undue appearance of analytical precision is with thoroughness almost uncharacteristic of a dangerous" in dealing with a corporation (let neoclassical economist. Meade proposes several alone a country) bears restating. The chapter on revisions to inheritance taxes, which would vary "Loans and Placements to Foreign Banks" sets Meade, James E., The Intelligent Radical's with the age differentials between bequeather out the problems of interbank loans. Some of Guide to Economic Policy: The Mixed Econ- and bequeathed, and encourage the dispersion them, like country risk and the analysis of omy, London, England, George Allen & Unwin, of large estates. Of prime importance for foreign firms are already familiar, but the Ltd., and New York, N.Y., U.S.A., Crane, immediately effective redistribution is a pro- growth of international banking and of the size Russak & Company, Inc. (distributors in posed "social dividend scheme" closely resem- and multiplicity of transactions among banks U.S.A.), 1975, 160 pp., $6.75 (paperback). bling a negative income tax. Although a require a broader framework of analysis than minimum income tax and a progressive tax on may be necessary in dealing with a single The title of this book when seen with the consumption are advocated, specific qualitative enterprise or even a single country. author's name is startling enough to require and quantitative goals of the redistribution Some other subjects covered by the book that one read it. Although the title is thor- scheme are left vague. Indirect measures, such which may be unfamiliar to students of finance oughly misleading since both the approach as provision of more equal educational and and development, and even to those working in and objectives of the book are not at all radical professional opportunities, are also an impor- the field are legal aspects; the financing of but entirely reformist, it is indeed a stimulating tant part of Meade's program. trade; and financing multinational corporations. and important book. In a slim volume, James Finally, Meade makes the long-standing and There are also detailed chapters on the prob- Meade has managed to set out a comprehensive obvious case for government intervention super- lems of lending to foreign local governments. policy program, which he feels can achieve an seding the price mechanism, in order to provide They deal at length with institutional problems optimum combination of economic efficiency public goods, plan for structural change of the and contain an interesting aside about the and income redistribution. Its particular pur- economy, and regulate the external costs and legacy of the "overexuberant sales efforts" of pose is to deal with the faltering U.K. economy benefits produced by the private sector. bond issuers in the earlier years of this century. but it is generally useful for the problems of Meade's presentation, though lucid, is often Two chapters deal with very new problems any developed country. tedious—at times no more than an annotated in international finance and together give an Written as a sequel to Planning and the Price outline. Still, in a short book many useful ideas account of the liabilities side of the business. Mechanism (published in 1974), the book are conveyed to both the layman trying to One deals directly with liability management in carries the general message that the market understand problems plaguing most developed an unstable environment. This is a treatment of price mechanism must be preserved and ex- economies, and the policymaker, seeking pro- international financial flows from the point of tended under a reinforced regulatory govern- vocative ideas on institutional and policy review of the banker who needs them. This ment superstructure. It begins by describing form. micro-financial point of view gives some new conditions under which the price mechanism Susan Schadler insights into the widely discussed problems of can function effectively, proceeds to considera- international liquidity, floating exchange rates tion of methods of income redistribution, and and the Euro-currency market. finally outlines the areas in which government Another aspect of the Euro-currency market intervention must supersede the price mecha- Speaking of health .. . is dealt with in a detailed account of a new nism. intricate and powerful institution, the lenders' In the least disputable part of the book Bainbridge, J. and S. Sapirie, Health Project syndicate. This gives an anatomy of an arrange- Meade recognizes the control of inflation as a Management: A Manual for Formulating and ment which is relatively new on the interna- primary prerequisite to using the price mecha- Implementing Health Projects, Geneva, Switzer- tional scene and which now plays a major role nism efficiently. He answers the age-old ques- land, World Health Organization, 1974, 280 in international lending. The concluding chap- tion "What's wrong with inflation?" with con- pp., Sw F 38. ter is a more conventional examination of cise numerical examples of the most obvious prospects which describe the international en- distortions easily grasped by any layman. Well over a quarter century after it came into vironment in early 1975. Meade analyzes well and prescribes a combina- being, the World Health Organization has pro- The reviewer can only be largely descriptive tion of fiscal and monetary policy to be duced a basic, informative, and useful book on because this is not a book with a single closely administered by an independent board with the systematic planning and implementing of knit argument or simple set of conclusions. extensive short-run powers in order to stem health projects, a book which WHO hopes will Very little about the subject is to be found in inflation, either by stabilizing money prices or fulfill the needs of health planners and adminis- print within the range between specialized texts maintaining a steady growth of money expendi- trators in developing countries. in finance or law and rather broad theoretical ture. The publication of this book marks what discussion of matters which are dealt with here To facilitate the response of price and costs can be called the growing-up phase of WHO, pragmatically. Its interest lies in its location on to conditions of supply and demand, Meade one which shows a change from the pious the borders of theory and practice and among a argues with intuitive appeal for a restoration of idealism to the practical, problem-oriented number of academic disciplines and profes- more competitive market conditions. Still one approach toward the many and varied health sional skills. The book should be useful to wonders if the great emphasis put on fostering problems of billions in the developing world. borrowers because of the frank statement of small enterprises via the structure of taxation The step-by-step, almost workbook approach of the lenders' preferences and point of view. It takes sufficient account of the implicit loss of this book will make it an essential tool for suggests a number of avenues to the analyst and economies of scale, especially in an economy health policymakers in those countries which reminds him that he should go to the market- plagued by inefficiencies such as the United have embarked on a search for alternatives to place from time to time, while mapping out the Kingdom. Meade also advocates and welcomes the health policies which they have been international marketplace for him. the competition associated with complete inter- blindly importing from both the developed national free trade as well as freely floating world and WHO till now. This book will Jo W. Saxe exchange rates. certainly complement those efforts and the

©International Monetary Fund. Not for Redistribution moves of WHO itself toward alternative and in the future, which makes the book worth The authors find what they term the "uni- meaningful health policies, which demand reading. modal" strategy as one "designed to raise the simple and inexpensive implementation meth- The third part of the book entitled "Agri- productivity of a large and increasing fraction ods. business in Developing Nations" gives a general of a nation's farm units as an effective means of Using systems analysis techniques, in which overview of the role of agribusiness and two fostering rapid economic growth and structural the two authors are trained experts. Health case studies based on experiences in Brazil and transformation while simultaneously con- Project Management constructs a 16-step theo- Iran. The relative patchiness of this section tributing to the social goals of expanding retical stairway toward the goal of a successful bears excellent testimony to the need and employment opportunities and reducing in- health project. The steps, outlined in separate possible role for the Council. It is instructive equalities in income distribution." They chapters, range from the birth and preparation but not illuminating. The fourth section, "In- postulate that the very fact of being late in of a health project to its termination, and the ternational Financial and Development Institu- embarking on this path places the LDCs in the reassignment of project personnel to other tions and Agribusiness" reveals the.changing advantageous position of being able to draw on tasks. policy directions of international financial insti- an enormous backlog of technological change. The emphasis throughout is on detailed data tutions and outlines part of the institutional Removal of the purchasing power constraints collection and analysis, two aspects of policy framework in which agribusiness must work in on the impoverished small farms subsector planning and implementation, which have serving developing countries. It is notable for would generate activity all over the economy, often gone by the board in developing coun- the omission of any discussion on the country owing to interdependence between agriculture tries in their hurried search for solutions to level of institutional arrangements within which and the other sectors. An historical analysis of health and other problems. A profusion of flow agribusiness must function. agricultural development in several countries, charts and diagrams—a few of which are quite Finally, "The Emerging Policy Issues" are including Japan and Taiwan, is used to demon- cluttered and confusing—have been supplied by discussed by two of the best known agricultural strate that small ness of farm size does not the authors to assist decisionmakers in their policy pundits, Lester Brown and David impede productivity, but that size distribution adoption of the project systems analysis ap- Hopper. They are also worth reading, providing and the pattern of technologies adopted are proach. as they do a touchstone for what agricultural important. An absence of jargon, which quite often is policymakers will be worrying about soon, if International and bilateral lending agencies more readily adopted than the systems analysis they are not doing so already. which emphasize a "project" oriented approach approach itself, is welcome. The authors also The papers have been well edited and so are are accused by the authors of failing to consider note that efforts must be made to utilize concise and readable. In contrast to the papers, strategies which take in the totality of the currently available sources and resources in the link sections are rather arid, and in the case agricultural sector. They contend that the developing countries, and the manual is geared of the postscript reveal value judgments that do agricultural sector analysis and development toward that end. not compliment the contributors nor comple- model building ignore many important factors The search for effective alternative systems ment their contributions—so grit your teeth for influencing agricultural development. While this of health care which will work well in develop- that. Otherwise, this is a good book for the may be so, the authors fail to mention the ing countries is not yet ended. WHO has general reader. continuing search that is going on in many certainly embarked on that search; even the places for strategies which go to meet the very World Bank has brought out a policy paper on Graham F. Donaldson factors which inhibit small farmer development health policy. And, although this manual ap- as identified by them. In fact, more and more pears before clearly viable policy alternatives attention is now being given to sectoral implica- have been presented to health planners in the tions and to specific aspects like training, Think farming; think small developing world, it will go a long way in infrastructure creation, and building administra- making those policies effective, when they are tive capacities in developing countries. finally selected. Only then will this systems Johnston, Bruce F., and Peter Kilby, Agricul- The book focuses attention on many issues analysis approach prove its real worth. ture and Structural Transformation, New York, confronting small farmer development. Al- N.Y., U.S.A., Oxford University Press, 1975, though the conclusions tend to be somewhat Shu/a Nawaz xxi + 474 pp., $6.95 (paper). generalized, there is plenty of material which should be useful in formulating rural Population explosion, food shortages, and development policies in the "late developing" Food for thought droughts, followed by hunger and misery world. among the poverty-stricken masses living in the Tudor M. Kulatilaka rural areas of the underdeveloped countries, The Agribusiness Council, Agricultural Initia- have created a world-wide awareness of the tive in the Third World: A Report on the need to do something about them, and soon. Land reform boon Conference: Science and Agribusiness in the This awareness has also led to much rethinking 70's, Lexington, Massachusetts, U.S.A., Lexing- on the current theories of economic develop- ton Books, 1975, xv + 210 pp., $16.50. ment. Serious gaps have appeared in theories Lippit, Victor D., Land Reform and Economic which advocate massive-scale industrialization Development in China: A Study of Institutional This is a five-part volume of papers presented to and agricultural production based on large Change and Development Finance, White a conference in London in February 1974. The farms, with a trickling down of benefits to the Plains, New York, U.S.A., International Arts first is an introductory section which sets the smaller and less significant partners in society. and Sciences Press, 1975, xi + 181 pp., $15. scene. The second, entitled "Science and Agri- Alternative theories which advocate the reverse cultural Development," taking up nearly half process now seem to make greater sense. Victor Lippit, an Assistant Professor of the volume, includes six papers by eminent Professors Johnston and Kilby, in their work Economics and China Scholar at the University scientists working in international agricultural which attempts to crystalize these alternative of California in Riverside, has made a thorough research. These papers give a well-documented opinions, have brought out a timely and valu- investigation of land tenure in China. This impression of cautious hope for food supplies able addition to development literature. concise and well-written book on the subject

©International Monetary Fund. Not for Redistribution treats the relationship of land tenure and the Government for nonproductive purposes, a availability of resources to finance develop- total of 19 per cent of net domestic product is ment. The analysis concentrates on the tradi- defined, which could have been redirected for tional China of the early 1930s and the development finance at zero opportunity cost postrevolutionary China of the 1950s, the data in terms of investment foregone. being based on an extensive land utilization By 1952, in the wake of the land reform, net study for the first period and the excellent data domestic investment equalled 15.8 per cent of provided by the Chinese Government until the net domestic product. Although it is true that statistical blackout that followed the failure of much of what would have formerly been the Great Leap Forward in 1959. expropriated surplus had gone as expected into For the earlier period, the explanation of the increased consumption by the poor, Lippit is zero level of net rural investment rests on the able to attribute 44.8 per cent of net invest- need of the poor peasants to consume their ment to the redirection of surplus made pos- entire income (they actually lived below sub- sible by the land reform. The extraction of this sistence because their children on the average surplus for investment purposes occurred were not expected to survive), and the pro- through the manipulation of urban-rural terms pensity of the wealthy to spend almost all of of trade and agricultural taxation. their income on conspicuous consumption and The implications of Mr. Lippit's book are protection. Within this system Mr. Lippit was obvious. Land reform and the improvement in able to identify the surplus expropriated by the income distribution which accompanies it can- wealthy from the poor. not be rejected on the grounds that they will Delaume, Georges, Transnational Contracts: In 1933, this surplus amounted to 16.9 per eliminate the surplus resources needed for Applicable Law and Settlement of Disputes, cent of net domestic product, 10.7 per cent of development. On the contrary, in situations Dobbs Ferry, N.Y., U.S.A., Oceana Publica- which accrued to the wealthy in the form of where the surplus expropriated by the rich is tions, Inc., 1975, 2 vols., $125. rent, 3.4 per cent in the form of profits from large and used almost exclusively for con- hired labor, and 2.8 per cent in interest income. sumptive purposes, land reform can assist rather This is an expert's book for those When this surplus is combined with the 2.1 per than impede development. concerned with the legal aspects of interna- cent of net domestic product that took the tional transactions. form of tax revenue invariably used by the Judith Graves Published for the Parker School of Foreign and Comparative Law, it is one of several recent loose-leaf service treaties dealing with the legal aspects of international trade and economic relations. Delaume, a senior counsel for the World Bank and author of Legal Aspects of Other books received International Lending and Economic Develop- ment Financing, in which the contracts of the major international lending agencies were first Jalan, Bimal, Essays in Development Policy, Lai I, Sanjaya, Foreign Private Manufacturing analyzed, has now extended his research to New Delhi, India, The Macmillan Company Investment and Multinational Corporations: cover the entire field of transnational economic of India Limited, 1975, 156pp., Rs. 45. An Annotated Bibliography Mew York, or commercial transactions and the conflict of N.Y., USA., Praeger Publishers, 1975, ix + law issues they raise for the private, public, state or international enterprises which may Klaassen, Leo H. and Jean H. P. Paelinck, 196 pp., $16.50 become parties thereto. Integration of Socio-Economic and Physical The primary aim of the book is to explain Planning, Rotterdam, The Netherlands, Rot- Bates, Robin and Neil Fraser, Investment the conflict avoidance and solution problem terdam University Press, 1974, vi + 69 pp., Decisions in the Nationalised Fuel Indus- from all its angles. The author has included $7.80. trie*. New York, N.Y., U.S.A., Cambridge many typical provisions of actual contracts, and University Press, 1975, ix + 192 pp., an analysis of the case law and literature on the Makhijani, Arjun and Alan Poole, Energy $14.95. subject. Where traditional norms fail to provide and Agriculture in the Third World, Phila- an adequate remedy or are found to be wanting delphia, Pa., U.S.A., Ballinger Publishing for some other reason, new and original ap- Company, 1975, xv + 168 pp. Maurice, Nelson R. and Richard U. Miller (compiled by), The Management of Public proaches are offered for consideration. Enterprise: A Bibliography, Madison, Wis- Johnson, D. Gale, World Food Problems and consin, U.S.A., University of Wisconsin, Prospects, Washington, D.C., U.S.A., Ameri- 1975, xtii + 166 pp., $7.50 (paperback). can Enterprise Institute for Public Policy Research, 197S, 83 pp., $3.00 (paperback). Letters to the Editor should be Silk, Leonard S., Contemporary Economics: addressed to the Editor, Finance & Howe, James W., The US. and World Principles and Issues, New York, N.Y., Development, IMF Building, Washing- Development: Agenda for Action 1975, U.S.A., McGraw-Hill Book Company, 1975 ton, D.C., 20431. Please be brief. The New York, N.Y., U.S.A., Praeger Publishers, (second edition), xiii + 591 pp.. $9.95 Editor reserves the right to edit letters 1975, viii + 278 pp., $4.50 (paperback). (paperback). for reasons of space and clarity.

©International Monetary Fund. Not for Redistribution Vevl&Rgi INDGX1975 Volume 12

The MTN and tariff reduction Articles S.J. Anjaria December 25

New tools for measuring government Issue Page Jonathan Levin . June 14 Budgetary reforms in developing countries A. Premchand March 25 Petroleum taxes: how high and why? Katrine W. Saito December 17 Changes in emphasis in rural sector lending David J. Bates and Graham F. Donaldson . June 23 Population: exploring the food-fertility link Shahid Javed Burki andShahid Yusuf .... December 29 The development of the Euro-currency market Paul de Grauwe September 14 Procurement under World Bank projects John A. King June 6 Domestic construction industries in developing countries Restoring the momentum of development Edward V.K. Jaycox and Clifford Hardy . March 21 The World Bank Annual Meeting-1975 H-Joost Polak December 9 Enough of everything for everyone, forever? Bension Varon September 17 The road to plan implementation C.P. Cacho . . December 42 The Euro-currency market in perspective EisukeSakakibara September 10 The role and structure of sales tax and excise systems Financing the mining sector: the Bank's role Sijbren Cnossen March 29 David M. Sassoon . September 21 Self-help housing in El Salvador March 4 Fiscal versus trade incentives for industrialization Sharing the oil deficit Michele Guerard .June 19 Andrew D. Crockett and Duncan M. Ripley. .December 12

Forward exchange facilities in developing Slow sailing at Law of the Sea countries Bension Varon March 38 Richard H. Miller .March 12 Some economic; concepts and policy issues The Generalized System of Preferences examined in developing countries Zubair Iqbal September 34 U Tun Wai June 27

"Indexing" versus discretionary action—Brazil's Toward a new framework for international fight against inflation resource transfers Jack D. Cuenther September 24 Mahbub ul Haq September 6

India's energy problems Toward functional government accounting systems P.O. Henderson . December 21 A. Premtharid December 33

Introducing the extended Fund Toward monetary stability facility—the Kenyan case The Fund Annual Meeting— 1975 < Ft.J. Bhatia and Saul L. Rothman December 38 Robert S. Franklin and Kenneth S. Friedman . December 6

Land speculation Urban land taxes and land planning John W. Lowe September 30 Orville F. Grimes, Jr. March 16

Membership of the Fund . . . March 42 What is incomes policy, and what can it achieve? AnneRomanisBraun March 34 Monitoring the procurement process David M. Sassoon .June 11 World economic indicators: looking toward 1978 . . . March 2

©International Monetary Fund. Not for Redistribution Meade, James E., The Intelligent Radical's Guide Book Notices to Economic Policy: The Mixed Economy Reviewed by Susan Schadler December 48

Mitra, Ash ok (editor). Economic Theory and Planning: The Agribusiness Council, Agricultural Initiative Essays in Honour ofA.K. Das Gupta in the Third World: A Report on the Conference: Reviewed by Deena R. Khatkhate June 32 Science and Agribusiness in the 70's Reviewed by Graham F. Donaldson December 49 Monroe, Wilbur F., International Trade Policy in Transition Bainbridge, J. and S. Sapirie, Health Project Management: Reviewed by Margaret Garritsen de Vries . . September 42 A Manual for Formulating and Implementing Health Projects Morowetz, David, The A ndean Group: A Case Study in Reviewed by Shuja Nawaz December 48 Economic Integration Among Developing Countries Reviewed by Mario Artaza March 47 Barnet, Richard H. and Ronald E. Muller, Global Reach: The Power of the Multinational Corporations OdelI, Peter R., Oil and World Power: Background Reviewed by Jack Baranson March 11 to the Oil Crisis Reviewed by Ian Bowen June 32 Bergsten, C. Fred, Toward a New International Economic Order: Selected Papers of C. Fred Bergsten Okochi, Kazuo, Bernard Karsh, and Solomon B. Levine (editors), Reviewed by Arthur H. House September 43 Workers and Employers in Japan: The Japanese Employment Relations System Bergsten, C. Fred (editor). Toward a New World Trade Reviewed by Eisuke Sakakibara March 47 Policy: The Maidenhead Papers Reviewed by Arthur H. House September 43 Readman, Peter, Jonathan Davies, Michael Hoare, and David Poole, The European Money Puzzle Connelly, Philip and Robert Perlman, Reviewed by Ian S. McDonald June 33 The Politics of Scarcity: Resource Conflicts in International Relations Sassoon, David M..C.I.F. and F.O.B. Reviewed by Bahram Nowzad September 43 Contracts (second edition) June 33

Delaume, Georges, Transnational Contracts: Scammell, W.M., International Monetary Policy: Applicable Law and Settlement of Disputes . . December 50 Bretton Woods and A fter Reviewed by Margaret Garritsen de Vries . . September 42 Denton, Geoffrey (editor). Economic and Monetary Union in Europe Solomon, Ezra, The Anxious Economy Reviewed by Ian S. McDonald June 33 Reviewed by William H. White December 47

Fisher, John C., Energy Crises in Perspective Swidrowski, Jozef, Exchange and Trade Controls September 43 Reviewed by Ian Bo wen .June 32 United Nations Department of Economic Goulet, Denis, A New Moral Order: Studies in and Social Affairs, Multinational Corporations Development Ethics and Liberation Theology in World Development Reviewed by Donald J. Casey March 48 Reviewed by John W. Lowe March 10

Halm, George N.,A Guide to International Vaitsos, Constantino V., Inter-Country Income Monetary Reform Distribution and Transnational Enterprise Reviewed by Margaret Garritsen de Vries September 42 Reviewed by John W. Lowe March 10

Harrison, A.J., The Economics of Transport Appraisal Wallace, Don, Jr. (editor). International Control Reviewed by Anthony Churchill March 47 of Investment: The DussoMorf Conference on Multinational Corporations Hewson, John and Eisuke Sakakibara, Reviewed by John W. Lowe March 10 The Euro-Currency Markets and Their Implications . March 49

Hicks, John, The Crisis in Keynesian Economics Reviewed by Desmond Lachman March 48

Johnston, Bruce F. and Peter Kilby, Agriculture Habitat Issue and Structural Transformation Reviewed by Tudor M. Kulatilaka December 49 The theme of the March 1976 issue of Finance & Development will be Human Lippit, Victor D., Land Reform and Economic Settlements—as a prelude to the UN Development in China: A Study of Institutional Change and Development Finance Conference on Human Settlements, Reviewed by Judith Graves December 49 which is scheduled to be held in

Mathis, F. John (editor), Offshore Lending Vancouver, B.C., in May 1976. by U.S. Commercial Banks Reviewed by Jo W. Saxe December 47

©International Monetary Fund. Not for Redistribution NEW from The World Bank

A WORLD BANK COUNTRY ECONOMIC REPORT Kenya: Into the Second Decade by John Burrows and others With a macroeconomic focus, this new report examines the operation of Kenya's economy since independence in 1963, identifying emerging issues and exploring options open to Kenya in its second development decade. Separate sections discuss major issues in detail and extend the technical arguments. The recent World Bank agricultural survey of Kenya has been incorporated to address problems and prospects in this vital sector. The Johns Hopkins University Press. 7 x 10. xiv + 533 pages. 4-color maps. Index. Cloth, ISBN 0-8018-1754-4, US$18.50 (£10.15); paperback ISBN 0-8018-1755-2, US$6.95 (£3.50).

A WORLD BANK RESEARCH PUBLICATION Economic Analysis of Projects by Lyn Squire and Herman G. van der Tak This up-to-date account of recent developments in project evaluation discusses the basic concepts of cost-benefit analysis, especially the role of shadow prices and how they may be estimated. Particular attention is paid to the incorporation of income distribution criteria into the standard cost-benefit framework. Forthcoming from The Johns Hopkins University Press. Cloth, $10.00; paperback, $4.00.

WORLD BANK STAFF OCCASION/^ PAPERS NUMBER 2O A Development Model for the Agricultural Sector of Portugal by Alvin C, Egbert and Hyung M, Kim Are models able to produce insight into the development of an entire economic sector that is more attuned to a country's resource endowment than those recommendations which arise out of conventional methods of sector and project analysis? This question was analyzed in a Bank research project in which one team used conventional methodology, another used a series of spatial equilibrium programming models. The alternative methods are explained, the programming models are tested and analyzed, and the differences in the recommendations are highlighted. Suggestions are also made for broader application of the programming technique. The Johns Hopkins University Press. 6x9. xii + 97 pages. Map. Paperback only, ISBN 0-8018-1793-5, US$6.50.

The third edition of the World Bank Catalog, which lists all free and sale publications of the Bank, is available without charge to any individual or institution having a serious interest in economic and social development. Address requests for the Catalog to Publications Office, World Bank, 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. or World Bank European Office, 66, avenue d'lena, 75116 Paris, France.

©International Monetary Fund. Not for Redistribution Staff Papers, a journal of the International Monetary Fund, makes available to the public selected studies on monetary and financial problems prepared by Fund staff members. It is issued in March, July, and STAFF November—each issue of about 300 pages. Studies published in Staff Papers cover international and national economic problems, such as international trade and payments, exchange rates and currency arrangements, international liquidity, inflation, FHPFJiS fiscal and monetary policy, monetary analyses, public finance, and wages and prices. Summaries of the papers in English, French, and Spanish appear at the end of each issue.

Papers published in the latest issue of Staff Papers (November 1975) are as follows:

• The 1967 Devaluation of the Pound Sterling, by Jacques ft. Anus

• Adjustment of Taxable Profits for Inflation, by George E. Lent

• Wage Indexation, Inflation, and the Labor Market, by Morris Goldstein

• Separate Exchange Markets for Capital and Current Transactions, by Anthony M. Lanyi

• Inflation in an Open Economy: A Case Study of the Philippines, by Ichiro Otani

• Inflationary Expectations arid the Trade-Off Between Unemployment and Inflation in the United States, by Erich Spitaller

• An Econometric Model of U.S. Merchandise Imports Under Fixed and Fluctuating Exchange Rates, 1959-73, by IsherJ. Ahluwalia and Ernesto Hernandez-Cat^

• Fiscal Analysis in the Federal Republic of Germany: The Cyclically Neutral Budget, by Thomas F. Dernburg

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