ABSTRACT
The policy problem under consideration is the economic development of underdeveloped countries, a large order. Most of the other policies discussed or experimented with in decades have been bootless and offer little prospect for ever being useful. The recommendation concerning qualitative credit control is occasioned by the impression that enough bank credit can be created in underdeveloped countries to finance all of the development the countries are physically capable of implementing. In fact the special nature of the role of bankers can stand reappraising in both developed and underdeveloped countries. “Second generation” Poles, Irish, Scots, Italians, and Greeks, working in the automobile industry in Michigan, are hardly on very firm ground in demanding tariffs and immigration restrictions to protect their artificially high wages from Indonesians, Mexicans, Africans, and Indians from India, willing to do better quality work for less money.
