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Industrialization has lured many underdeveloped countries as the fastest and surest method of economic development. But marketing problems are causing unexpected difficulties in many of these countries--difficulties that were not anticipated because production has been seen as almost the only problem. This article demonstrates the pivotal role of marketing. [ABSTRACT FROM AUTHOR]

The article comments on the article "Industrialization of Underdeveloped Countries: A Means to Peace," by P. C. Mahalanobis. He writes as if poverty of underdeveloped countries established a basic uniformity for analysis and policy, which is far from valid. Even within individual countries there is often regional diversity and the underdeveloped countries which compromise over one half of the world are extremely heterogeneous in resources and population density. He fails to mention the diversity of social attitudes and customs in underdeveloped countries and their relevance to economic development. The failure to recognize the heterogeneity of the underdeveloped world is accompanied by the failure to recognize an important characteristic common to underdeveloped countries.

The article addresses the problem faced by developing countries in applying scientific and technological innovation to achieve economic growth. It cites the problems of developing countries in meeting the requirements of such innovations, such as the number of people with technical skills and knowledge on science and technology. According to the author, developing countries can effectively use technology and science in achieving economic progress through the establishment of an institution that would formulate problems and organizational instrument to find applicable solution to the problem.

Recent government decisions to improve the economic health of North Norway have had significant spatial impact. This region is a continuing problem are because of the dearth of physical and human resources. Postwar capital investment loans, and other schemes to encourage industry have emphasized urban growth and depopulated many rural farming and fishing areas. Variations in regional growth are largely a result of investment decisions favoring industrial development, and the resultant migration of labor to manufacturing areas. The trend toward urbanization and the concentration of economic activity has been slowed by a recent shift in national planning to favor more marginal communities and activities such as farming and fishing, [ABSTRACT FROM AUTHOR]

Presents a case study which investigated the effect of industrialization on the rural poor in Ozarks Region. Effectiveness of policies for the rural poor; Theoretical considerations; Impact of the trickle-down theory on income distribution.

This article discusses industrialization of the Southwest in the U.S. The outstanding economic problem of the Southwest is to increase the productivity of its labor force. An appreciable part of our labor force is not effectively employed. Inefficiency in the allocation of resources is indicated by the extraordinarily low level of income of the people of the Southwest. One of the reasons for the existence of a surplus farm population has been the continued decline in the total demand for farm products during the last 20 years. The slowing down in the rate of growth of our population has exercised a retarding influence on the domestic demand for food and clothing. An American-British-Chinese-Russian victory would probably result in our regaining some of the lost foreign markets for our farm products although lower post-war tariffs might result in the South American neighbors offering more competition in some of the farm markets. The greatest gain from increased post-war foreign trade would result from the fact that such gain will increase non-farm employment opportunities and thus facilitate a transfer of workers from agriculture to non-farm jobs.

This article focuses on industrial diversification in the Southwest U.S. On any industrial map of the United States the Southwest is, vaguely, that far-flung, light area, with few thinly shaded spots. It is tragically apparent and generally agreed that the Southwest should seek to hasten that type of economic development which is likely to be most conducive to the realization of full employment, abundant production, and higher living standards. The dearth of manufacturing in this region in this industrial age is regarded by some as a rebuke to our lethargy. Whatever the cause, there is wide-spread agreement that it is now time to industrialize the Southwest. In fact, the entire Southland is on the march to locate new industries. However, it may be said that probably there are still those who are thankful that the Southwest has not yet been tarnished by great industry with its lock-step and deadening regimentation, and its cities with their slums. But those voices have grown faint and are now scarcely' audible. Industrialization has become a favorite panacea for the ills that afflict our economy in the agricultural areas.

This article focuses on the effects of taxation on industrial and commercial development in the U.S. Data essential to a full exposition of the influence of taxation on industrial and commercial development are lacking. actually is true. It is important in the first place, to examine carefully the place of taxation among the factors which condition economic development and particularly plant location. Then it will be appropriate to turn to positive suggestions regarding the influence of tax policies on economic progress. It may be argued that, notwithstanding the showing for industry generally, certain classes of industrial enterprises may be predominantly influenced by such considerations. The study shows, however, that this is not the case. For each class, the eight most important industrial location influences as given by the manufacturers themselves are enumerated by rank; and taxation is not shown as one of the important considerations in a single instance. Studying typical letters from the Southern manufacturers, which are quoted in the report, one is constrained to think the quality of governmental services may exercise as much influence as the anticipated taxes on the particular plant or business.

This paper reviews the current state of knowledge about the effects of industrialization upon systems of social stratification. Taking societies as the unit of observation, we consider the relationships between level of industrialization and (I) the distribution of status characteristics in the population (the structure of stratification) ; (2) the pattern of interrelations among status characteristics (the process of stratification); and (3) the form of linkages between status characteristics and other aspects of social behavior (the consequences of stratification). A set of propositions is specified, a few of which are empirically well established but most of which yet require empirical testing. [ABSTRACT FROM AUTHOR]

An economically developed society is not like an undeveloped one. It will necessarily contain certain complicated institutions of production, labor specialization, capital use and formation, which will not be found in a society living on a subsistence economy. Or, looking at the difference from another angle, people living in an industrialized community do not face the same conditions and problems as those living in a peasant village. Correspondingly, different social and cultural practices will be needed to help the society's members adapt to industrialization. Some of the social and cultural developments which seem to be associated with societies which are economically highly developed. This exercise may suggest social and cultural changes which may either be necessary to achieve economic development, or which may take place in the process of economic development. Actually, sociologists do not know all the social and cultural prerequisites for an economically-developed society. But they can point out certain social and cultural features apparently associated with, and functionally related to economic development.

The article focuses on some aspects of industrialization and the convergence of contemporary Japan. Thus, this paper examines some of the aspects of change in Japan since the end of the Pacific War, specifically; changes associated with the ways men are managed in the modern sector of the Japanese economy. More recently, some writers have developed the relationship between technology and change. Their examination of the problems of labor and management in economic growth is rooted in the relatively common effects of common technologies in all developing economies. They emerge with a "convergence hypothesis" which argues that almost everywhere the world is in the grip of industrialization. This study takes technology as central in industrialization. Japan remains the only nonwestern nation which can be said to be industrialized. The streets of Japan's major cities are almost as choked with motor traffic as any American city of comparable size. Television antennas obstruct and mar the beauty of Japanese architecture. Yet, by no means can it be said that Japan is a western nation since many vestiges of pre-industrial Japan are readily apparent. Japanese tend to view themselves and their institutions as unique, a view that appears to be shared by many western scholars.

This article focuses on land reform and economic development in Middle East. The countries of the region share a common historical background. There are considerable variations in their stages of economic development and in population density in relation to land which gives rise to the markedly differential rates of economic growth. In all the countries of the region, 50-80 percent of the population are employed in agriculture and, with the exception of the major oil-producing countries and trade-oriented Lebanon, it represents 30-60 percent of the total gross national product. At the present rate of industrial development most of the population increase will have to be absorbed by agriculture. This population pressure on agriculture has increased with the advance in health services as death rate has declined and the population growth rate has risen from 1.5 percent until the World War II to 2 and almost 3 percent in the recent years. The problem of economic development in non-oil producing countries in the Middle East is essentially one of improving the present terms of trade for their export agricultural products, increasing the rate of savings in agriculture and harnessing the savings for greater investment so as to ensure.

The article discusses the role of organized labor in economic development in Africa. The following interpretations are analyzed: the interpretation of the Inter-University Study of Labor Problems in Economic Development; the political unionism viewpoint; and the interpretation of those who believe that the role of labor is to contribute to rapid economic growth. The author points that the role of organized labor to regulate conflict has been weakened in the developing areas. Thus, labor's contribution to industrialization and economic development remains an elusive one.

Two mimeographed papers were circulated through the mails before the meeting to a selected list of persons interested in the subject of economic nationalism, one by P. H. Knight on, "The Implications of Nationalism to Economic Theory," and the other by Max Handman on "Nationalism and the Industrial Revolution." This article analyzes these papers. In introducing the discussion of his paper, Knight stressed its constructive import against an impression reported that it seemed to try to close the door against any hope for liberty. It did aim to bring out the seriousness of the situation, but less on the ground of historical inevitability in the abstract than of inference from the ordinary behavior of men in group relations today, and the motives manifested. Professor Handman presented a brief outline of his paper with an enumeration of the forms of nationalism and particularly of nationalism as shown in protectionism and imperialism. The effects of the Industrial Revolution were described with particular reference to India, Germany, Italy and Spain. He concluded that wherever nationalism strives to obtain the advantage in productive technique which is a characteristic of the Revolution, the reason is not to be sought in the economic advantages, which such an increase in production might give, but rather in the increase of international power and prestige which an effective productive system brings with it.

The article analyzes certain aspects of the industrialization problems faced by cod-fishery in North Norway. The authorities have tried to promote fishing all the year round with large boats (trawlers and big longliners), particularly out of consideration to the processing factories ashore, which cannot be effectively, continuously and profitably run merely on the raw-material supplied by the small boats. The authorities have been subjected to a series of disappointments. For a long time the fishermen's organizations employed all their political power in order to obstruct and blockade all attempts at rationalization. Moreover, it has been very difficult to recruit stable and qualified crews for cod-fishing in its modern big-boat form, among other things because of the extremely high turnover of the crews, which is characteristic of the trawler-companies. Among the most important concomitants of economic growth most people list is the introduction of new and better production-equipment. The concept of growth as a more or less automatic result of capital investment has probably something to do with the place occupied in people's imagination by new and better machinery when they are dealing with economic development.

Analyzes historical features of Brazilian economic development in order to gain insight into the process of long-term growth. Discussion on the timing of Brazilian industrialization; Conditions in which the industrialization took place; Economic implications.

Examines Russian government policies toward the country's industrialization in the late 19th century. Features of Russian economic policies selected for discussion; Factors and problems of Russian industrialization; Conditions with which the process of industrialization accelerates.

This paper argues that a country seeking industrial development should strive to export manufactures very early in the process, and should orient its industrial complex outward from the start. Both exports and import-substitution should be encouraged by the choice of exchange rate and by subsidies and tax-exemptions, with only moderate recourse to differential tariffs. A major effort should be made to absorb and catch up with foreign technology. An outward-looking strategy emphasises the quality and direction rather than the absolute magnitude of industrial development. Human resources and other investments generated early in the process will exert a lasting influence over the character of subsequent growth. New high-quality human resources will be created through industrial experience that could not be obtained under heavy protection. Outside competition will spur adoption of new technology and efficient methods. A more rational and efficient allocation of scarce resources will emerge than under inward-looking policies, and gross errors will be avoided. Foreign-exchange constraints on growth will be eased. The result will be to sow the seeds for a flourishing growth of industry that will soon far outstrip the blighted product of an inward-looking strategy. [ABSTRACT FROM AUTHOR]

The extent and nature of industrialization in the South has been an important subject for public discussion for more than a century. Henry Grady was one of the first southern statesmen to put the problem clearly before the public. Since that time the economic problems of the South have been widely discussed, especially so since the first World War. As time passes more and more people are recognizing the true elements of this phase of the social problem and are earnestly trying to do something about it. Yet, as late as 1938, the South was referred to as America's first economic problem. Recently, however, southern leaders have sounded a more optimistic note and have called attention to the South as a region of economic opportunity. Public discussion of this sort invariably results in action-sometimes slowly and sometimes rapidly, depending partly upon the clarity with which the issues are presented to the people. The purpose of this discussion is to measure the rate at which industry has been developing in a particular subregion of the Southeast. The industrial trends in the subregion will be analyzed and compared with the trends in seven southeastern states and in the nation.

The article discusses the accelerated investment as a force in economic development. A comment by the author which states that an increase in investment characterizes all economic development and that aside from the rise of income per capita, it is probably the most central phenomenon . The author also provides an introduction, the demographic argument, the role of the propensity to consume and savings, the importance of external economies, overtones for policy of the doctrine of accelerated rates of investment and a conclusion.

The article discuses the concepts of left wing opposition spokesman Evgeni Preobrazhenski regarding industrialization of Soviet Union. Referring to the famous "goods famine" of 1925, Preobrazhenski says that it was an accentuated expression of deep-seated maladjustments in the structure of the Soviet economy. In his view, the shortages of the present were, to a large extent, the results of the enforced prodigality of the past. to reveal themselves. While the possibility of securing output increases by more intensive utilization of available equipment was diminishing as capacity limits were approached, the deterioration of equipment was progressing. The situation as Preobrazhenski saw it, however, called for something much more far-reaching. This was due in part to the fact that such a complete renewal of equipment provided the best opportunity for a wide-scale application of the technological improvements which had accumulated in previous years and which he viewed as uniformly capital-using.

The article examines market structures in undeveloped economies. Such an analysis, necessarily couched in very general terms, seems to be needed on three grounds. First, there appears to be little knowledge of what the actual market structure in the backward regions is. Factual statements are confined to brief descriptions of marketing practices, incidental to a discussion of agricultural production. Theoretical statements are confined to a trotting out of the ancient precepts of locational theory which prove that markets are local, rather than national, when transportation is bad. Neither deals with market structure. A second objective is to throw some light on the generally held assumption that increasing industrialization necessarily involves a growth of the monopolistic and imperfectly competitive elements in the economy, while less advanced economies characterized by smaller production units approach more closely the classical norms of perfect competition.

The article presents a letter that deals with the movement of economy in Germany. In recent years, economic questions have been discussed in Germany more than at any other time. Until within fifteen years, controversy turned on the powers and influence of the representatives of the people, the position of the states in the Empire, the division of the field of Church and State, questions which, as compared to those concerning social and economic policy, have since gone into the background. Political parties have become economic parties, and the vigorous discussion in public life has exercised a stimulating influence on scientific research. Important differences of principle have appeared in the course of this movement; and controversy has arisen, not only on the merits of particular measures, but as to the scope of economic policy as well as of economic research. In most civilized countries, a reaction has set in, in recent times, against the industrial individualism which had for centuries advanced with powerful strides; but nowhere has the reaction been so strong as in Germany.

Discusses the ideology of industrialization in the Soviet Union. Details on the Soviet concept of industrial priority; Beneficiaries of industrialization; Information on the form and control of industrialization.

World War II put to the test the strength of the U.S. industrial society. This strength rests upon a foundation of well-adjusted, co-operative, and productive individuals. The wartime mobilization of manpower drew into the industrial life many people often unprepared to meet its exacting demands. Each of these individuals had to find his place in the productive processes of the nation. This widespread individual readjustment intensified the social problems inherent in industrialization and had its effect on the experienced as well as on the inexperienced worker. In the navy department an employee counseling service was established to assist its civilian employees in making the adjustments demanded by wartime conditions. The basic assumption in this program was that a normal adult finds socially significant participation in society through his work, and that in industrial society this participation is of primary importance for his personality integration. An individual's cultural conditioning was recognized as having an important bearing on the effectiveness of his participation, measured either by his own welfare or by the efficiency standards of the job.

In recent years economists have recognized that historical experience can be a valuable guide for both economic theory and policy. Nevertheless, many economists and policy-makers, especially in developing nations, persist in believing that the historical experience of modern industrial nations is irrelevant to the problems faced by developing nations. The purpose of this article is to argue the contrary proposition. This is not to say that contemporary developing nations will inevitably follow the same pattern of development as the highly industrialized nations, much less that the policies of the nineteenth century are appropriate in the vastly different circumstances of the second half of the twentieth century. Historians would be the last to deny that there are alternative routes to economic development, or that different conditions require different policies. Even Marxist economists no longer believe Marx's dictum that underdeveloped nations can see in the history of the developed ones the mirror image of their own future.

One way to determine the answer to the question of Soviet Union's success in matching the industrial achievements of the U.S. is to make an industry-by-industry comparison of growth in physical output of both the countries, in each case confining the comparison to periods in which the U.S. and Soviet industries were of equivalent size. Soviet industry seems still to be roughly three and a half decades behind its counterpart in levels of output and about five and a half decades in levels of per capita output. This is a generalization about average performance rather crudely defined, in some areas the Soviet Union is much closer to The U.S. historically, in others much further behind. The development of Soviet industry is roughly equivalent to what took place in The U.S. in four decades bracketing the turn of this century, in per capita terms, in an even earlier period ending around the turn of the century. Third, over the Soviet era as a whole, Soviet industries have generally lost historical ground to their American counterparts, the lags have generally increased, in terms of both total and per capita output. That is, growth from the same level of output, total or per capita, has been slower in Soviet than in American industries.

The economic development of underdeveloped countries is contingent upon the introduction of industry. Industrialization is associated with urban growth and the relationship of the two processes is usually assumed to be so close that some writers speak of industrialization and urbanization as two facets of one and the same process. The evidence for the need for industrialization and urbanization is found in the historical experience of the economically more advanced countries and in general considerations on the economic situation of the farm populations in many under-developed countries. The advanced countries contain the most heavily industrialized and at the same time most densely urbanized regions of the world and to the extent to which industrial cities have grown up in underdeveloped countries, they have been patterned after British, German and American models. The improvement in the economic position of subsistence farmers who make up two-thirds or more of the people in many underdeveloped countries is dependent upon industrialization. There are scarcely any under-developed countries in which there is not a large surplus of un-employed agricultural labor. Although industrialization and urbanization go usually hand in hand, there is no necessary connection between the two processes. Industries can be and have been established in rural districts and cities have grown up without large industrial plants. The introduction of new technology may sometimes change existing social relations very little and sometimes subvert them completely.

In the literature on economic development a certain notable division between optimists and pessimists is apparent. This division is highly predictive of disciplinary origin. Economists-representatives of the dismal science are customarily optimistic about economic growth and its social consequences. Anthropologists and sociologists are customarily pessimistic about the possibilities of economic growth and particularly about its consequences. Although possibly these fields attract different personality types, the manic and the depressed, it seems more likely that conventional theory and habits of thought explain the differences. Traditional economic theory has not been strongly concerned with attitudes and motives. Human attitudes and motives are simply assumed to be appropriate to rational choice of means effective for maximizing satisfactions as economically defined and measured. Human wants are thought to be essentially unlimited and human nature pretty much the same wherever encountered. A monetary market system co-ordinates the factors of production and allocates rewards and financial incentives are assumed to be effective in allocating labor. The movement of labor between sectors of the economy is regarded as a function of its differential marginal productivity, which is principally determined by relative states of capitalization, technique and, possibly, enterprise.

Industrialization is the main hope of most poor countries trying to increase their levels of income. It is also the most controversial aspect of the problem of economic development. Attempts to apply general economic principles to this field have usually proven in-conclusive. This result has been due to an incomplete theoretical formulation of the problem as well as to inadequate data. In most cases there remains a wide margin of disagreement between the advocates of international specialization and investment in primary production on the one hand and the proponents of balanced growth and industrialization on the other. Most of the participants in this controversy would probably accept the proposition that the primary aim of a developing country is to secure the greatest increase in its income total or per capita from its available resources in the long run. The main problem lies in evaluating the amount of scarce resources, which will actually be required by alternative types of production. For a number of reasons, the price system, which makes this evaluation fairly accurate in more highly developed economies, is often a rather unreliable guide to the desirability of investment in an underdeveloped economy.

The war brought many problems to Brazil. It brought also a great deal of industrial progress as traditional sources of supply were eliminated and as incomes and effective demand rose. Postwar adjustments are called for and are proving difficult to make. The cost of living is too high and the monetary unit is overvalued. Price control measures have been at best only partially effective. The year 1947 brought at least a beginning of necessary readjustments. The trend in the cost of living is tapering off and some prices have softened. Nevertheless, there would appear to be no immediate prospect of a sharp deflation or break in industrial activity, in spite of some troubles in the textile industry. Real trouble will not come until or unless the staple exports--coffee and cotton--begin to suffer. After some uncertainty in this area, the international markets for these items appear to be quite firm. The welfare of the nation is irrevocably bound up with continued high incomes in the rest of the world, particularly the United States, which is now both the largest seller to and buyer from Brazil. The Brazilian balance of payments is all-important, the export surplus performing the role customarily reserved to investment in more advanced countries. Fiscal policy is inextricably tied to this factor, even the volume of money in circulation being generally a function of it. The Brazilian's international interest, therefore, is in expanding trade at high incomes; with a continuance of such a situation, exchange stability (following the initial adjustment) will follow as a matter of course. Without it, exchange stability will be almost impossible to retain. In a very real sense, the Brazilian has a personal interest in the adoption of wise and sound economic policies in Washington and London. [ABSTRACT FROM AUTHOR]

SUMMARY In the Soviet Union there has been for some years a passionate discussion on the improvement of economic planning. It deals particularly with the adaption of planning to the degree of industrialisation which has been achieved within few decades. The Soviet economy can be looked at as a huge entity with many branches and enterprises whose direction is in the hands of the party and of the state. While the party decides the guiding principles, the particular leading functions are fulfilled by organs of the state. The economic administration of the state has been organised in the course of time according to three points of view: Economic sectors, functions and regions. The structure of administration has been changed many times after Stalin's death, the preliminary result of which is a centralisation after an attempt at regional decentralisation. For ideological reasons planning methods changed relatively little compared to pre-war time. The most important planning instruments are the balance of materials and the norms. Both instruments reveal in their traditional forms increasing inadequacies, and problems which result out of the present stage of industrialisation cannot be solved in a satisfactory way with their help. Newly there have been taken steps towards the introduction of more modern methods and towards the overcoming of ideological barriers. RÉSUMÉ Depuis quelques annees, une discussion violente est en cours dans l'Union sovi6-tique au sujet de l'amelioration de la planification economique. II s'agit prin-cipalement d'une adaption de la planification au haut degre d'industrialisation, atteint au courant de quelques dizaines d'annees. L'economie sovietique peut etre concue comme une combination gigantesque avec de nombreuses branches et entreprises, dont la direction est effectuee par le parti et l'etat. Tandis que le parti determina les directives générates, les chargées de l'etat detiennent les fonctions directives particulieres. L'appareil d'adminis-tration economique de l'etat a ete specific selon trois points de vue: secteurs eco-nomiques, fonctions et regions. Depuis la mort de Stalin, la structure d'adminis-tration avait subi de nombreux changements et de reorganisation, qui apres l'essai d'installer une decentralisation regionale, ont abouti pour le moment a une nouvelle centralisation. Les methodes de planification ont peu change vis-a-vis de la periode d'avant-guerre, et ceci pour des raisons ideologiques. Les principaux instruments de planification sont les bilans du materiels et les normes. Les deux instruments sont insuffisants dans leurs formes arrierees et ne peuvent resoudre d'une facon satisfaisante les problemes, issus du stade actuel de l'industrialisation. Pour cette raison, on essaie a present d'introduire des procedes modernes et de surmonter les barrières idéologiques. [ABSTRACT FROM AUTHOR]

The article presents information about the Brazilian stabilization program, 1964-66. As in other developing countries, the attitude of government and the public toward inflation has changed in Brazil in the course of the postwar period. Gradually, strong inflation was recognized to be detrimental rather than advantageous to growth and to a more equal distribution of income. The author defines inflation as strong if it produces major distortions in the structure of the economy. This depends on the rate and continuity of the inflation, on feasible rates of increase of the stickiest among the important prices and on the permissible maximum rates for different assets including checking deposits.