ABSTRACT
Traditional and modern societies are linked by a process of structural transition. The crisis of transition is due to the fact that the stage of import substitution which necessarily precedes it has not been overcome. Because of their forceful exposition, two strategies of crisis management have arrived at a position of prominence. Paauw-Fei and Gustav Ranis had collaborated on an earlier work, Development of a Labor Surplus Economy: Survey and Critique, which stands as a landmark in American development studies. The strategy allows for redistribution from growth by investing in the formal sector and by sponsoring comprehensive rural development programmes that are complementary to the rapid expansion of the corporate sector in agriculture. The Export Substitution strategy is identified as appropriate to a specific phase in a general model of the modern transition. The alternative strategy of Redistribution with Growth follows the title of a collection of papers written by Chenery, Ahluwalia, Bell, Duloy, and Richard Jolly.
