Review: Money and Capital in Economic Development
| Published date | 01 December 1974 |
| Author | H.C. Eastman |
| Date | 01 December 1974 |
| DOI | 10.1177/002070207402900410 |
| Subject Matter | Review |
REVIEWS/INTERNATIONAL
ECONOMICS
649
Many
of
the
insights
based
on
personal contacts
and
experience
add
considerably
to
an
outsider's
knowledge
of
the
Bank
Group.
In
his
discussion
of
the
Bank
Group
professional
staff,
Reid
notes
that
staff
members
are
provided
with
little
or
no
training
in
the
art
of
'deve-
lopment
diplomacy.'
Reid
believes
that
more people from
less-
developed
countries
(LDcs)
are
needed
in
top
professional
staff
posi-
tions,
but
he
adds the
important
qualification
that
some
upper-class
LDc
people
from
highly stratified
societies
are
less
aware of
the
problems
of
LDcs
than
many
officers
from
rich countries.
Both
Reid
and
Mason
and
Asher
could
have
dealt
more
fully with
the
relationship
between
the
World
Bank
Group
and
its
member
governments.
More
details
concerning
the
pressures
exerted
by
power-
ful
states
on
Bank
Group
policy
would be
of
particular
value:
in
view
of
such
politically
sensitive
issues
as
the
expropriation
of foreign-held
property,
the
nature
of
this
relationship
calls
for
closer
examination.
Theodore
H.
Cohn/University
of
Western
Ontario
MONEY
AND
CAPITAL
IN
ECONOMIC
DEVELOPMENT
Ronald
I.
McKinnon
Washington,
DC:
The
Brookings
Institution
[Montreal: McGill-Queen's
University
Press],
1973,
xii,
18
4pp
,
$2.95
This
book
makes
a
major
contribution
to
the
analysis
of
economic
development.
Professor
McKinnon
both
establishes
that
the
main
causes
of
underdevelopment
reside
in
what he
calls
economic
'repres-
sion'
by
restricted,
uncompetitive
money,
goods,
and
foreign
exchange
markets
and
explains
why some
'orthodox'
measures
of
reform
have
failed
to
bring
economic
efficiency
and
growth.
The
case
is
so
per-
suasive
that
it
will
undoubtedly
have
a
powerful
effect
on
policy.
It
will
direct
the
attention
of
economists
and
policy-makers
to
the
monetary
and
financial
conditions
for
growth
chiefly
in
less
developed
countries,
but
some
lessons
are
applicable
to
the
advanced
world
as
well.
McKinnon
defines
the
process
of
economic
development
as
the
reduction
of
dispersion
of
social
rates
of
return
on
different
invest-
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