Economic Growth in the Third World, 1850-1980, and: The Poverty of "Development Economics" (review)

236 SAIS REVIEW degree of operational autonomy" to government and economic institutions) and the "four principles" (socialism, dictatorship of the proletariat, Party leadership , and Marxist-Leninist Mao Zedong thought). He concludes that the political system will become slightly more pluralistic and that the party will impose on itself a modicum of checks and balances, but that "the framework of the Leninist party-state. . .will not be altered." As China's leaders pursue this "middle course," Tsou expects to see a continued oscillation between repression and relaxation and the uneven application of centralized control to different spheres of political and economic activity. As for the future, both of these scholars of Chinese politics are relatively optimistic about the ability of the leadership to maintain a pragmatic, or "middle" course. As Tang Tsou puts it, in contrast to earlier periods, today "middle of the road forces in both the party leadership and society constitute the strongest political forces in China." Economic Growth in the Third World, 1850-1980. By Lloyd G. Reynolds. New Haven: Yale University Press, 1985. 480 pp. $35.00/cloth. The Poverty of "Development Economics." By Deepak LaI. Cambridge: Harvard University Press, 1985. 144 pp. $17.50/cloth, $6.95/paper. Reviewed by Carol Englar, SAIS M.A. 1986. Development economics is a field where consensus is often in short supply. Thus it is not surprising that two recent books in the field, Lloyd Reynolds's Economic Growth in the Third World, 1850-1980 and The Poverty of "Development Economics, " by Deepak LaI, provide two different approaches to the study of underdevelopment and its solutions. The titles of the books give an indication of the wide gulf separating the authors' views. Reynolds's work is a thorough and well-researched economic history of some of today's most important developing countries since 1850 coupled with a broad theory ofstages of development . Lai's book, as the quotation marks in the title suggest, questions the claim of development economics to being a distinct subfield within the broader discipline. Reynolds begins by discussing his analytical framework before applying it to the case studies. One of the most novel elements of his approach is his division of a nation's economic history into two distinct periods of growth, divided by what he labels a "turning point." He calls the one that occurs first the extensive period. While other development economists have labeled this phase the period of the subsistence economy, Reynolds describes it as a time of "household production." In this phase each household provides most of its needs, both for material goods like food, clothing, and shelter and for a variety of services like education and health. The distinction is important because it dispenses with the connection between subsistence and a purely agricultural economy. As Reynolds points out, only a little more than half of the time of the members of the household in this phase is spent in food production. BOOK REVIEWS 237 Reynolds uses this point to question the idea advanced by many development economists that development implies the abandonment of agriculture in favor of nonfood production. In Reynolds's model, this production always exists since "people always have clothes and they always have housing. . ." Below the placid surface of the system of household production, however, gradual changes take place that prepare nations for the more rapid changes associated with the turning point. These include increased agricultural efficiency, which creates a usable surplus, declining transport costs, and slowly increasing output. Unlike many other economists, Reynolds does not neglect the importance of political development. One of the key features in the preparation for the turning point is the rise of a national state. Reynolds cautions, however, that the progression from extensive growth to turning point is not inevitable, and includes several "nonstarters" among his case studies. He also stresses the role of chance in dividing the successful nations from the also-rans. For example, if the acceleration of the trends described above coincides with the expansion of export markets the nation stands a much better chance than if the international economic climate it faces at this critical juncture is less favorable. This argument is clearly aimed at First World protectionists...