Bauer, P. T. and B. S. Yamey. The Economics of Under-developed Countries — Cambridge University Press, 1957, 271 pp.

The greater part of the world's population lives in underdeveloped countries, if by the latter we mean „regions with levels of real income and capital per head of population which are low by the standards of North America, Western Europe, and Australasia". With world interest focussed on these areas, some major issues of economic policy and also of international politics at once arise.

The author have done a creditable piece of work in developing the subject. Writtenin simple, non technical language, the book can be followed by the general lay readers as well as the professional economist.The first half is descriptive and analyticaland is concerned largely with the problems of economic resources and their measurement. The second part is an appraisalof

praisalofthe role of government and critically evaluates specific policy measuresrelating to such matters as capital formation, or the encouragement and assistanceof agriculture or industry.

Attention is called to conceptual and practical difficulties of estamating and measuring such variable as income and capital and the composition of the labor force. Interesting illustrative data are drawn from underdeveloped countries to show how institutional and demographic patterns might result in impressions substantially different from those commonly associated with more advanced economics. The productivity of resources and the growth of capital are examined in terms of production methods of the more backward areas. In several instances, where policy recommendations are examined, the author have taken a clear stand on important controversial issues._Its is a stimulating little volume and well worth the attion of the reader. :