ABSTRACT
This Chapter deals with the aspects of control which can directly offset the benefits to be derived from borrowing from the international commercial banks. It examines the effects of direct controls on the use of foreign-exchange, on exports, and generally, on growth. In the post-war preoccupation with balance of payments problems, “gap analysis,” and import bottlenecks, the importance of appropriate domestic policy formulation may have become a neglected area in the field of development economics. In the post-war preoccupation with balance of payments problems, “gap analysis,” and import bottlenecks, the importance of appropriate domestic policy formulation may have become a neglected area in the field of development economics. In the burgeoning literature on the economics of developing countries, many theoretical and empirical writings have stressed that domestic policy initiatives and internal forces are more important than external factors in providing a framework conducive to growth.
