Employment, Income Distribution and Development Strategy: by Alec, Sir. Mohinder Puri Cairncross

By Alec, Sir. Mohinder Puri Cairncross

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Additional info for Employment, Income Distribution and Development Strategy: Problems of the Developing Countries: Essays in honour of H. W. Singer

Example text

The government may itself keep and manage the a"Ssets; or, as sometimes in nationalising the mines, it may keep the assets but enter into management contracts with private enterprise; or, as in some land reform, it may transfer ownership of the assets to private persons, to manage on their own behalf individually or collectively. There is no intrinsic reason why a government ta king over a going Deve/opment and Distribution 37 concern should not be able to manage it as efficiently as private interests, but governments differ very widely in this respect.

The four approaches to increase the welfare of the poorest were: (i) Maximising GNP growth through raising savings and allocating resources more efficiently, with benefits to all groups in society. (ii) Redirecting investment to poverty groups in the form of education, access to credit, public facilities, and so on. (iii) Redistributing income (or consumption) to poverty groups through the fiscal system or through direct allocation of consumer goods. (iv) A transfer of existing assets lO to poverty groups, as in land reform.

Currently the most popular explanation focuses on the relationship between rural and urban earnings. However, the phenomenon was just as pronounced in the nineteenth century, when as many as a million people might leave Europe in one year to seek their fortunes in the new world. Excessive migration damages the enclave itself, by increasing its unemployment rate and its rate of slum formation. Whether it damages or benefits the rural areas wililargely depend on whether they are overpopulated. This is a formidable list of adverse possibilities.

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