chapter  III
Levels and Composition of National Income
Pages 12

The use of national income data for the analysis of problems of economic development and in particular for the comparison of conditions in underdeveloped and developed countries pre-supposes an agreement on the general meaning and commensurability of such data. No serious student of problems of underdeveloped countries can therefore afford to neglect the arguments Professor Frankel advanced in his important essay on 'Concepts of Income and Welfare and the Intercomparability of National Income Aggregates' against the common practice of such comparisons.2 Professor Frankel's intentions go in fact much beyond the question of the comparability of certain income concepts. His doubts start from the basic difference in the objectives and ideals which consciously and unconsciously dominate the communities whose individual and social economic activities are being compared. According to him historical and traditional factors and not merely the state of technique and organisation are the basic causes of differences in the nature and form of the income produced by these activities.