Population growth, labour absorption and income distribution

The purpose of this paper is to explore the main qualitative relationships between population growth, employment expansion and changes in income distribution. These relationships are extremely complex with an intricate pattern of links and feedbacks not only among these variables, but between them and a host of other economic, sociological, political and institutional variables. The first part of the paper reviews the findings of the quantitative economic-demographic models with respect to the impact of differential rates of population increase on the rate and structure of economic growth. Most of these models ignore the employment and income distribution effects of differential rates of population growth. An attempt is then made to specify the ways in which variations in population growth affect the supply and demand for labour and hence net labour absorption. The usual conclusion that a faster rate of population growth exacerbates the employment problem on the supply side is qualified by considerations of participation rates and quality of labour force under different rates of population increase. On the demand side, the impact of variations in population growth is assessed on capital accumulation, composition of output , pattern of growth and changes in productivity induced by such factors as technical change, nutrition, education and training. The impact on income distribution is evaluated by assessing the effects of differential rates of population growth on the main determinants of income distribution by size. Among the factors considered are: ratio of labour to reproducible capital, distribution of assets, change in the structure of the economy, technical change and the skill composition of labour force. A theme running through the paper is that reduced fertility can create the potential for greater net labour absorption and more favourable income distribution. But this potential can only be realized by the pursuit of an appropriate strategy of development to further these objectives. In its absence, it is not at all clear that reduced fertility will make a decisive difference to income distribution and labour absorption

State trading and regional economic integration: the East African experience

The paper examines the impact of state trading on the operation of the East African Common Market. The first part of the paper develops a general framework for the analysis of this question. After setting out the alternative concepts of integration corresponding to the principles of integration in market economies and centrally planned economies and the role of state trading therein, the paper contrasts them with the situation in integration attempts among developing countries with different economic systems. This is followed by a discussion of the definition, functions, structure and operation of state trading enterprises. An attempt is then made to explore the impact of state trading systems on intra-regional trade in the light of various obstacles to the expansion of such trade. The second part of the paper traces the evolution and structure of state trading enterprises in the East African countries. The characteristics of state trading enterprises are then related to their impact on the growth of East African trade in recent years. Consideration is also given to other developments such as the increasing foreign exchange difficulties being experienced by the Partner States, especially Uganda and Tanzania, and the growth of the system of foreign trade planning in Tanzania. The implications of these developments for the East African Common Market are spelled out. In conclusion, the paper considers various recommendations to overcome obstacles to trade expansion posed by state trading enterprises, increasing foreign exchange difficulties and foreign trade planning

Concept and strategies of economic independence in African countries

The purpose of this paper is to review the various concepts of economic independence and to apply them to the African context. The two classical concepts of economic independence embodied in the capitalist and socialist systems are considered and contrasted with the notion of economic independence as expressed in the developing countries. An attempt is made to lend some precision to the latter concept. The paper then surveys the historical roots of economic dependence in the Third World, and relates various aspects of such dependence to the diverse attempts being made to attain economic independence, The second part of the paper is concerned with an analysis of the various strategies for economic independence being pursued in African countries. Although these cannot be categorised into any neat labels imported from the industrialized countries, the main thrust of policies being pursued by African countries to move towards economic independence can be described as predominantly capitalistic or socialistic. The paper considers the strengths and weaknesses of these strategies in the African context, given the objectives of economic independence, rapid and sustained growth, and equitable distribution of income and wealth

The implications of EEC enlargement for the Asian Commonwealth countries

For over a decade it has been obvious that the entry of Britain into the EEC would be likely to call for adjustments in the trading patterns of all her Commonwealth partners, but only comparatively recently have the lines heen clearly drawn for the period of intense negotiations which will shape the future trading relations of developing Commonwealth countries with the EEC. In a Joint Declaration of Intent relating to the independent Commonwealth countries in Asia, the signatories to the Treaty of Enlargement declared their readiness, from the date of accession of the new member states to the EEC, to examine with the above countries in Asia such problems as might arise in the field of trade, with a view to seeking appropriate solutions. In this paper, the trends and patterns of trade of the Asian Commonwealth countries, India, Bangladesh, Singapore, Malaysia and Sri Lanka, are examined, and then the different treaties and trade agreements which will determine the implications of the EEC enlargement. The impact of the harmonisation of British commercial policy with the EEC is discussed in general, and the specific problems of each country described. Finally some alternative approaches to the solution of the problems arising from EEC enlargement are suggested, and the implications for development assistance are described