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MORI DocID: 1451843
EES Re ides da (4) FI co. Noor
soni ERR a ey . iia
Prec se Ge 98 JES R. Scutzsinczs Hr
& Gal Sn nate based, no doubt, on an assessment of the record of thé Soviet RE
prise IE a ENE Lhe sie don e y AREER
EE nS GE SR en: regime, and an exaggerated notion of how much the Chinese frankie on
cae Lo nde HGR lee “Great Leap Forward” would accomplish. Perhaps the earlier sonata
En po ee a “pessimism” regmding the relative performance pofential of jit aa
Se ARS IAIN REEL GRAN CCl SY “free” and “controlled” economies was averdone, but have we Fee
BCE, ns Bi EE Bh ver Joi a be
5 Hh Fe Contin Be rtd 8 not gone toe far in the now prevailing “optimism” that any clash phoney
# Seniang RE eR VERS kA ER | between economic progress and the democratié institutions which had
SRA APT) BECHLER ALAIN | insure the dominance of the vox populi is minimal? Ea
SN I He A a) i The average citizen—particularly when he is il-housed, ill- J oe
TR EN | clothed, fLfed, snd lloducated—seems most Tikly to be ine fit ARES
Eb me terested in Lhe here and now, A government which is responsive fon
Boosie Bedard nL es RE to the desires of the public will continually be tempted to Fru tie
le at aa EER aber mortgage the future for the present. The “abstinence” or Koa
fe aba be een rn STG BRR “waiting” which classical and neoclassical economics stale to RECREL
| re Hemi T bn ea Le necessary ingredients in economic progress will be hard to pri
Dent ed | require, as will be the incentive schemes (and the accompanying Hse
fe Ene ee conspicuous consumption) which are likely to strike the average fe ey
SHE Be EG SE ER Lo nequitable, We muy reed] that the Perc regime was Hear
BE Le He, Te EA GI Me (and still may be?) the most popular regime in recent Latin feat Ree
NRE RCRA ns American history. Or we may observe the economic consequences Rasa eo
a of Brazilian democracy, and have our doubts. The inflow of Pisa
fo aR TR Dia a American resources may be able to make showpieces out of oats de
SEER iE BR SS dS several small, recently-democratized nations like the Dominican Resta
Perio n Shnl  n SEE Republic, bul we ought not assume either that democracy assists Bato Be
fs nein nad hater EEE pres nee in economic development, or that the Dominican example is REP PRA
foo Tn Le widely applicable. This is not to say that some judicions [ECENHIE
Rs iy hd prodding in the direction of democracy may not be a wise policy, ACEI TE RL
fried RE RERTIPIY S EP CLE but it must be judicions, and cannot be based on the assumption YEE
WR Re en that democracy necessarily fosters the political stability essential Fata
fic TE AER i a to growth, : SE
REET - ER DoE One of the criteria by which self-help can be judged as justify- aah
Plt Lr RR ST ing additional aid is an Improvement in the savings ratio. Some (nein
RE Lg Ae students of the aid program would put major emphasis on LRGs
prin Le ERE changes in the savings ratio in that it provides a relatively - rE
ERLE Tale sbjective standard by which an improvement in cconomic. per- fein
fol Eee formance can be judged. If we apply an objective standard, Eigdmbougn
foes So hie SEES He RE x wii P fra ayy
Ror RET Ea en SRT complaints about the distribution of aid and subjectivity in the [Esha
RC a Ta RE NR ne TER ) - ERNE
fone TED piped ee Edda tut * Charles Wolf, J5. of RAND has been dttempting to develop an econo- flo ss
FR SE duds SL CRA. metric model which will provide an oljective measure of the performance fre
fo LA Ee ST ARE A of aid recipiens in terms of self-help. The criterion is the savings ratio. eT
ps mn TR TRE Te In the“model the attempt is made to eliminate the infivence of other SER
EE AAR CE variables, such ms per capita income, income distribution, and degree of Bc
Pcgna -. Sat Te ed ucbanization, which account for a goad deal of the observed variation in Je Ea
| ATE . PE AS SEE crx the savings ratio as between nations and between different periods of time. Shad RT
i ery OTE J Esa
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