,*APT] #ah 
,ECONOMIC ,DEVELOPM5T 

,PEOPLE 3 

,AU?OR 3 ,PAUL ,MATTICK 

,TEXT 3 

,KEYNES' !ORY DEALT ) 0MATURE0 CAPITALISM & ITS 
APP>5T 9CAPACITY = FUR!R 0AUTOMATIC0 DEVELOPM5T4 ,?IS 
PREOCCUPATION ) 0MATURE0 CAPITALISM REFLECT$ A RA!R G5]AL 
DISREG>D = ! DEVELOPM5T ( ! WORLD'S 9DU/RIALLY BACKW>D 
REGIONS4 ,9 ,KEYNES' VIEW1 TO RECALL1 IT IS ! DIM9I%+ SC>CITY ( 
CAPITAL1 A CONSEQU5CE ( ! DIM9I%+ PROP5SITY TO CONSUME1 :I* EXPLA9S 
9SUFFICI5T DEM& & UNEMPLOYM5T 9 ! DEVELOP$ CAPITALI/ NATIONS4 ,9 
C\NTRIES :]E CAPITAL IS SC>CE & ! PROP5SITY TO CONSUME CONSEQU5TLY 
HI<1 ?IS PROBLEM DOES NOT EXI/1 = A 0POOR C\NTRY WILL BE PRONE TO 
CONSUME BY F> A GREAT] P>T ( ITS \TPUT1 SO ?AT A V]Y MODE/ MEASURE ( 
9VE/M5T WILL SUFFICE TO PROVIDE FULL EMPLOYM5T40.<#a.> ,HE ALSO SAID ?AT !RE HAS 0BE5 A 
*RONIC T5D5CY ?R\<\T HUMAN HI/ORY = ! PROP5SITY TO SAVE TO BE 
/RONG] ?AN ! 9DUCEM5T TO 9VE/10 & ?AT 0! WEAKNESS ( 
! 9DUCEM5T TO 9VE/ HAS BE5 AT ALL TIMES ! KEY TO ! ECONOMIC 
PROBLEM40.<#b.> 
,APP>5TLY1 !N1 ! PROP5SITY TO SAVE IS NOT ONLY A CONSEQU5CE ( ! 
DIM9I%+ PROP5SITY TO CONSUME BUT EXI/S QUITE 9DEP5D5TLY ( ! 
SC>CITY1 OR DIM9I%+ SC>CITY1 ( CAPITAL4 ,H[EV]1 ALL 9 ALL1 ,KEYNES GAVE 
SLI<T ATT5TION TO BACKW>D NATIONS1 = HE 0LOOK$ UPON 9T]NATIONAL 
ECONOMIC HOMOG5IZATION AS A PA? TO UNIV]SAL PROSP]ITY & LA/+ WORLD 
PEACE40.<#c.> 

,A FULLY-DEVELOP$ CAPITALISM IMPLIES COMMODITY PRODUCTION & EX*ANGE ON A 
WORLD-WIDE SCALE - ! WORLD M>KET4 ,:5 ,M>X PICTUR$ ! FUTURE ( 
CAPITALISM BY CIT+ ! EXAMPLE ( ,BRITI% CAPITALISM1 IT WAS NOT TO IMPLY 
?AT ALL O!R NATIONS W\LD COPY ,5GL&'S DEVELOPM5T1 BUT ?AT ! 
WORLD M>KET W\LD BE AN EXT5SION ( ! BASIC SOCIAL & ECONOMIC RELATIONS 
DOM9ANT 9 ! !N MO/ ADVANC$ CAPITALI/ NATION4 ,COMPETITION & 
ACCUMULATION W\LD *>ACT]IZE WORLD ECONOMY AS !Y *>ACT]IZ$ ,5GL&4 
,! ,5GLI% PICTURE WAS ?AT ( LAISSEZ-FAIRE1 SUPPORT$ BY COLONIAL 
EXPLOITATION & A MONOPOLI/IC POSITION 9 9T]NATIONAL F9ANCE & COMM]CE4 
,EV5 ?\< CAPITALI/ICALLY-DEVELOP+ NATIONS OBJECT$ TO ! LAISSEZ-FAIRE 
PR9CIPLE1 !Y DID SO ONLY 9 ORD] TO GA9 COMPETITIVE /R5G? TO OP]ATE 
MORE SUCCESS FULLY UND] ITS CONDITIONS4 ,!Y ALSO /ROVE = MONOPOLI/IC 
POSITIONS 9 ONE OR ANO!R SPH]E ( WORLD PRODUCTION & TRADE & VI$ = 
! POSSESSION ( COLONIES SO AS TO GA9 & SECURE SPECIAL PRIVILEGES4 ,ALL 
?IS IMPLI$ 9T]NATIONAL HET]OG5EITY RA!R ?AN 
0HOMOG5IZATION10 AS IT 9VOLV$ ! CONC5TRATION ( CAPITAL 9 
MORE ADVANC$ NATIONS & ! EXPLOITATION ( ! POOR] C\NTRIES BY !SE 
NATIONS4 

,BUT AS ,KEYNES IGNOR$ ! FACT ( EXPLOITATION AT HOME1 SO HE IGNOR$ ! 
EXPLOITATION ( UND]DEVELOP$ BY DEVELOP$ NATIONS4 ,& JU/ AS HE BELIEV$ 
?AT 0UNJU/IFI$0 EXPLOITATION 7EXCESS YIELDS7 C\LD BE ELIM9AT$ 
)\T ALT]+ EXI/+ SOCIAL RELATION%IPS1 SO HE HELD ?AT ! 9T]E/S 
( ! CAPITALI/ICALLY-DOM9AT+ NATIONS C\LD BE H>MONIZ$ ) ?OSE ( 
! UND]DEVELOP$ C\NTRIES )\T *ANG+ ANY?+ BASIC 9 ! SOCIAL 
/RUCTURES ( EI!R ! UND]DEVELOP$ OR ! DEVELOP$ NATIONS4 ,IT WAS JU/ A 
QUE/ION ( 0MAK+ ! SAV+ PROP5SITIES ( ! WORLD'S RI*] 
MEMB]S COMPATIBLE ) ! DEVELOPM5T NE$S ( ITS POOR] MEMB]S40.<#d.> 

,SE5 FROM ! /&PO9T ( ,WE/]N CAPITALISM1 ,KEYNESIAN POLICY ) REG>D 
TO UND]DEVELOP$ NATIONS EXHAU/S ITSELF 9 AID+ !IR ECONOMIC DEVELOPM5T 
BY WAY ( GRANTS1 LOANS1 & 9VE/M5TS4 ,AL?\< (T5 CONSID]$ AID1 
PRIVATE BUS9ESS 9VE/M5TS HAVE1 ( C\RSE1 NO?+ TO DO ) HELP+ 
=EIGN NATIONS2 !Y >E UND]TAK5 PURELY = PURPOSES ( EXPLOITATION4 
,LOANS1 TOO1 :E!R FROM PRIVATE OR PUBLIC FUNDS1 DO NOT CON/ITUTE AID BUT >E 
SUPPOS$ TO YIELD 9T]E/ & >E ?US 9/RUM5TALITIES TO P>TAKE 9 ! 
EXPLOITATION ( ! PRODUCTION !Y F9ANCE4 ,CAPITAL IS 9VE/$ :]E IT CAN 
OBTA9 PR(ITS & 9T]E/1 & IT IS M]ELY ! HEI<T ( !SE RETURNS ?AT 
DET]M9ES :E!R CAPITAL WILL FL[ TO DEVELOP$ OR UND]DEVELOP$ C\NTRIES4 
,!RE IS !N NO?+ SPECIFICALLY 0,KEYNESIAN10 OR 
0NEW10 AB\T =EIGN CAPITAL 9VE/M5TS OR LOANS2 :AT IS NEW IS 
! DEM& ?AT !Y %\LD BE 0COMPATIBLE0 ) ! DEVELOPM5T 
NE$S ( ! POOR] NATIONS1 I4E41 ) !IR CAPITALI/IC DEVELOPM5T4 

,ON ! ASSUMPTION ?AT ,WE/]N CAPITALISM HAS SOLV$ ITS [N PROBLEMS VIA 
! ,KEYNESIAN TE*NIQUES ?AT L$ TO A /ATE ( G5]AL 
0AFFLU5CE10 & ASIDE FROM ! ?REAT ( NUCLE> W>1 ! PROBLEM 
( UND]DEVELOPM5T IS N[ CONSID]$ TO BE ( FIR/ IMPORTANCE4 ,H[ DID ?IS 
PROBLEM >ISE8 ,TO ALL APPE>ANCES1 IT DID NOT EXI/ 9 ! N9ETE5? C5TURY4 
,AS 9 ! TIME ( ,RIC>DO1 SOME ECONOMI/S /ILL ?9K ?AT 0IT IS 9 ! 
NATURE ( LESS-DEVELOP$ C\NTRIES ?AT !Y >E MA9LY PRODUC]S ( PRIM>Y 
GOODS1 I4E41 AGRICULTURAL OR M9+ PRODUCTS4 ,) A L[ LEVEL ( HUMAN SKILL 
& CAPITAL1 ! TYPE ( PRODUCTION 9 :I* !Y WILL HAVE A COMP>ATIVE 
ADVANTAGE WILL USUALLY BE ?OSE DEP5D5T ON NATURAL RES\RCES4 ,NOT ONLY ! 
'SUPPLY SIDE' BUT ALSO ! DEM& SIDE IS GE>$ ?IS WAY1 = ! 
POOR] NATIONS' GREATE/ NE$ IS FOOD4 ,TO F9ANCE !IR IMPORTS 
UND]DEVELOP$ C\NTRIES WILL HAVE TO EXPORT PRIM>Y COMMODITIES4 ,! M>KETS 
= SU* GOODS >E (T5 NOT SU* AS TO /IMULATE !IR DEVELOPM5T40.<#e.> ,A SOLUTION TO ?IS DILEMMA 9 !ORY W\LD BE AN 
9CREAS+ WORLD DEM& = PRIM>Y PRODUCTS1 SUFFICI5T TO RAISE !IR PRICES 
& TO N>R[ ! GAP BETWE5 IMPORTS & EXPORTS 9 UND]DEVELOP$ NATIONS4 ,AN 
O!R SOLUTION W\LD BE TO 9CREASE FOOD PRODUCTION AT ! EXP5SE ( EXPORTS4 
,AN 9CREAS$ FOOD PRODUCTION1 GE>$ TO AN 9CREAS$ PRODUCTION ( MANUFACTUR$ 
GOODS1 W\LD 5ABLE !SE C\NTRIES TO R$UCE IMPORTS FROM DEVELOP$ NATIONS4 
,AN 9CREAS$ WORLD DEM& = PRIM>Y PRODUCTS PRESUPPOSES A MU* HI<] RATE 
( CAPITAL =MATION 9 ! DEVELOP$ NATIONS ?AN ! PREVAIL+ ONE4 ,SU* A 
HI< RATE ( EXPANSION 9 TURN PRESUPPOSES1 AMONG O!R ?+S1 L>G] EXPORT 
M>KETS = ! DEVELOP$ NATIONS &1 TO ?AT 5D1 *EAP IMPORTATION ( 
PRIM>Y PRODUCTS4 ,CAPITALI/ NATIONS :I* DEP5D ON OV]SEAS SUPPLIES ( 
PRIM>Y PRODUCTS CANNOT %[ ANY REAL 5?USIASM = ! 9DU/RIAL DEVELOPM5T 
( BACKW>D NATIONS1 = ?IS W\LD 5DANG] !IR [N FAVORABLE POSITIONS ON 
! WORLD M>KET4 

,BY %R9K+ ! WORLD M>KET1 A SL[+ D[N ( ! RATE CAPITAL EXPANSION 
9 ! DEVELOP$ C\NTRIES HITS ! LEA/ 9DU/RIALIZ$ T]RITORIES H>DE/4 
,IT DIM9I%ES ! DEM& = PRIM>Y PRODUCTS & R$UCES !IR PRICES )\T 
LESS5+ IMPORTATION NE$S4 ,BUT EV5 A RAPID ECONOMIC EXPANSION ( ! 
DEVELOP$ NATIONS R>ELY B5EFITS ! UND]DEVELOP$ ECONOMIES4 ,! FA/ PACE 
( 9VE/M5TS 9 ! CAPITAL-RI* NATIONS 9 ! WAKE ( ! ,SECOND ,WORLD ,W>1 
= 9/ANCE1 SOAK$ UP MO/ ( ! WORLD'S AVAILABLE CAPITAL1 LEAV+ 
LITTLE = ! DEVELOPM5T ( POOR] REGIONS4 ,?IS ,WE/]N 
0PROSP]ITY0 L$ TO L>GE PRICE RAISES = MA*9]Y & O!R 
F9I%$ GOODS1 :I* WORS5$ ! T]MS ( TRADE = ! UND]DEVELOP$ 
C\NTRIES4 ,:E!R !RE IS PROSP]ITY OR DEPRESSION1 ! POOR] C\NTRIES JU/ 
CANNOT W9 9 ! COMPETITIVE GAME4 ,!IR HELPLESS DEP5D5CY ON *ANG+ 
M>KET CONDITIONS COMES TO LI<T 9 VIOL5T *ANGES 9 !IR EXPORT M>KETS & 
9 EXPORT-PRICES = PRIM>Y GOODS4 ,IT HAS BE5 E/IMAT$ ?AT = ! P]IOD 
FROM #aia TO #aie EXPORT E>N+S FROM PRIM>Y COMMODITY PRODUC]S FLUCTUAT$ 
AN AV]AGE ( #bc P]C5T A YE>4.<#f.> ,! PRICE FALL = PRIM>Y PRODUCTS AFT] #aief 
ACTUALLY CANCEL$ \T ALL ! AID P\R$ 9TO ! UND]DEVELOP$ C\NTRIES BY 
,WE/]N NATIONS UP TO ?AT TIME4 ,PRACTICALLY SPEAK+1 ?IS 0AID0 
WAS M]ELY A P>TIAL COMP5SATION = !IR LOSSES 9 9T]NATIONAL TRADE1 
:I* W]E SO MANY GA9S TO ! IMPORT]S 9 ! DEVELOP$ NATIONS4 ,DATA 
PUBLI%$ BY ! ,/ATI/ICAL ,DIVISION ( ! ,UNIT$ ,NATIONS .<#g.> %[ ?AT 9 #aifd ! 
PRICE LEVEL ( PRIM>Y COMMODITIES AS RELAT$ TO ?AT ( MANUFACTUR$ GOODS WAS 
#bb P] C5T LESS ?AN 9 #a#i#e4 ,! T]MS ( TRADE HAVE CO/ ! UNDEVELOP$ 
C\NTRIES A VALUE LOSS ( @s#d BILLION 9 COMP>ISON ) !IR REV5UES #ae YE>S 
AGO4 

,=EIGN LOANS & CAPITAL IMPORTS 0AID$0 TO SOME EXT5T ! 
CAPITALIZATION & 9DU/RIALIZATION ( UND]DEVELOP$ C\NTRY & HA/5$ 
!IR *ANGE FROM FEUDAL TO SEMI-CAPITALI/ CONDITIONAL BY 9CREAS+ COMMODITY 
PRODUCTION4 ,!SE 9VE/M5TS S]V$ L>GELY TO FACILITATE ! EXTRACTION ( 
PRIM>Y PRODUCTS4 ,CAPITAL HAS BE5 US$ TO DEVELOP ! PLANTATION SY/EM & TO 
9CREASE EFFICI5CY 9 ! M9+ & OIL 9DU/RIES4 ,?IS BASIC PATT]N HAS 
NOT *ANG$4 ,AM]ICAN 9VE/M5TS 9 ,AFRICA1 = 9/ANCE1 :I* BY #aifd HAD 
GR[N TO A TOTAL ( @s#a4#f BILLION1 HAVE 0GONE 9TO EXTRACTIVE 5T]PRISES 
TO TAKE NATURAL RES\RCES \T ( ,AFRICA2 ONLY A RELATIVELY SMALL PROPORTION HAS 
GONE 9TO LOCAL MANUFACTUR+ & COMM]CIAL 5T]PRISES40 .<#h.> ,OV]-ALL CAPITAL EXPORTS 
TO UND]DEVELOP$ C\NTRIES HAVE BE5 GREATLY R$UC$ & = SOME ( !SE 
NATIONS HAVE COME TO AN 5D ALTOGE!R4 ,9 BRIEF1 !RE IS NOT 5\< CAPITAL 
9 VE/M5T TO FACILITATE ECONOMIC GR[? 9 UND]DEVELOP$ NATIONS1 &1 MORE 
(T5 ?AN NOT1 MORE IS TAK5 \T ( !M 9 ! =M ( PR(ITS ?AN IS P\R$ 
9TO !M BY NEW 9VE/M5TS4 0,PR(ITS D]IV$ FROM OP]ATIONS 9 
UND]DEVELOP$ C\NTRIES HAVE GONE TO A L>GE EXT5T TO F9ANCE 9VE/M5TS 9 
HI<LY DEVELOP$ P>TS ( ! WORLD20.<#i.> SO ?AT1 AT LEA/ 9 P>T1 ! ADVANCE ( ONE P>T 
( ! WORLD WAS MADE AT ! EXP5SE ( ANO!R4 

,! MA9 RESULTS ( ,AM]ICAN P5ETRATION 9TO UND]DEVELOP$ C\NTRIES W]E 
NOT DIFF]5T FROM ?OSE A*IEV$ BY ,EUROPEAN COLONIAL CONTROL4 ,! C\NTRIES 
9 ,S\? ,AM]ICA1 = 9/ANCE1 >E US$ AS RAW-MAT]IAL S\RCES & AS M>KETS 
= F9I%$ PRODUCTS4 ,AM]ICA GA9$ ! B5EFITS ( IMP]IAL CONTROL BY WAY 
( ! 0OP5 DOOR0 POLICY BAS$ ON PRODUCTIVITY SUP]IORITY1 BY 
MEANS ( CAPITAL EXPORTS1 &1 :5 CONV5I5T1 BY MILIT>Y 9T]V5TION4 
,H[EV]1 ! ,LAT9 ,AM]ICAN C\NTRIES >E NOT 9 ! SAME CATEGORY ( 
UND]DEVELOPM5T AS >E ?OSE ( ,AFRICA & ,ASIA4 ,MEXICO & ,BRAZIL1 = 
9/ANCE1 EXP]I5C$ A RAPID RATE ( NATIVE CAPITAL =MATION4 ,9 ,MEXICO1 ?IS 
AM\NT$ TO AB\T #ae P] C5T ( TOTAL NATIONAL PRODUCTION 9 REC5T YE>S4 
,NE>LY TWO-?IRDS ( ?IS CAPITAL 9VE/M5T BELONGS TO PRIVATE 5T]PRISE4 
,AM]ICAN PRIVATE 9VE/M5TS H]E 9CLUDE NOT ONLY ! TRADITIONAL RAW MAT]IAL 
,S\RCES BUT ALSO ! NEW] 9DU/RIES SU* AS *EMICALS1 ELECTRICITY1 
TELEPHONES1 AVIATION1 AUTOMOBILES1 BANKS1 & 9SURANCE COMPANIES1 :I* CAUSES 
SOME POLITICAL RES5TM5T BECAUSE 0! ECONOMIC ,P[] ( ! L>GE 
=EIGN 5T]PRISES CON/ITUTES A S]I\S ?REAT TO ! 9TEGRITY ( ! NATION 
& TO ! LIB]TY ( ! C\NTRY TO PLAN ITS [N ECONOMIC 
DEVELOPM5T40.<#a.> ,H[EV]1 PR(ITS >E HI<2 ! RATE ( E>N+S ON 
=EIGN 9VE/M5TS RANGES FROM AB\T #a P] C5T TO OV] #b P] C5T1 ( :I* 
R\<LY HALF IS RE9VE/ & ! O!R HALF REPATRIAT$4 

,BY DIVID+ ! WORLD'S NATIONS 9TO ?REE DIFF]5T GR\PS 9 
ACCORDANCE ) ! WORLD'S 9COME DI/RIBUTION 9 #aidi WE GET ! 
FOLL[+ PICTURE3.<#a#a.> 

  
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,ON ! ,NOR? ,AM]ICAN ,CONT95T1 9CLUD+ ,CANADA1 !RE >E 0A M]E 
#a P] C5T ( ! WORLD'S POPULATION4 ,BUT WE HAVE H]E AB\T #ge P] C5T 
( ! WORLD'S 9COME4 ,BY CONTRA/1 ! #ge P] C5T ( ! WORLD'S 
POPULATION :OSE 9COME IS BEL[ @s#a#b#e P] P]SON A YE> RECEIVES ALTOGE!R 
P]HAPS NO MORE ?AN #a P] C5T ( ! WORLD'S 9COME40.<#a#b.> ,:ATEV] ! 
LIMITATIONS ( !SE & SIMIL> COMP>ISONS1 !Y REVEAL NONE!LESS ?AT 
0ON ! 9T]NATIONAL SC5E1 A DRAMA IS N[ /AG$1 :I* C\LD 5D 9 A 
,M>XIAN CATA/ROPHE ON A VA/LY L>G] SCALE ?AN ,M>X EV] 5VISAG$4 ,!RE IS 
A TREM5D\S 9COME GAP BETWE5 RI* & POOR NATIONS1 & ! POOR] NATIONS 
REPRES5T ! MASSES4 ,! GAP IS WID5+4 ,! POOR NATIONS BECOME CLASS 
CONSCI\S BUT IT IS POSSIBLE ?AT1 ONCE MORE1 CONCESSIONS BY ! PRIVILEG$1 AS 
! UND]PRIVILEG$3 GR[ /RONG]1 MAY CREATE A NEW H>MONY40.<#a#c.> 

,IT IS A QUE/ION ( CONCESSIONS AS ! PROCESS ITSELF CANNOT BE REV]S$4 
,& !SE CONCESSIONS IMPLY ! SACRIFICE ( AT LEA/ P>T ( ! PRIVILEGES 
:I* ! DEVELOP$ NATIONS D]IV$ FROM ! PROCESS4 ,?IS MEANS L>G] CAPITAL 
9VE/M5TS & MORE =EIGN AID TO HA/5 9DU/RIAL DEVELOPM5T 9 ! POOR 
NATIONS4 ,PRIVATE CAPITAL IS PREF]R$ BUT GOV]NM5T AID IS ALSO NECESS>Y1 AS 
!RE >E MANY UND]TAK+S 9 :I* PRIVATE CAPITAL R>ELY1 IF EV]1 9VE/S4 
,!SE UND]TAK+S BELONG TO :AT IS CALL$ ! 9DU/RIAL 9FRA/RUCTURE1 
I4E41 ROADS1 DAMS1 CANALS1 H>BORS1 $UCATION1 HEAL?1 & (T5 TRANSPORTATION 
& 5]GY - ! S]VICES ( :I* >E US$ BY ALMO/ ALL O!R 
9DU/RIES4 ,IT IS N[ G5]ALLY ACKN[L$G$ ?AT ! 9FRA/RUCTURE IS BE/ 
TAK5 C>E ( BY PUBLIC AU?ORITIES1 EV5 ?\< ITS DEVELOPM5T IS ALSO A 
CONDITION ( PRIVATE CAPITAL DEVELOPM5T4 ,BECAUSE CAPITALI/S 9 BO? 
UND]DEVELOP$ & DEVELOP$ NATIONS >E EQUALLY 9T]E/$ 9 ?IS 
9FRA/RUCTURE1 ITS CON/RUCTION IS NOT SO MU* A =M ( AID TO UND]DEVELOP$ 
AS ONE ( AID TO PRIVATE CAPITAL 9 G5]AL4 ,& :]E ALL O!R ECONOMIC 
RELATIONS BETWE5 ! DEVELOP$ & UND]DEVELOP$ C\NTRIES REMA9 :AT !Y 
HAD BE5 PRIOR TO ! DEVELOPM5T1 ! 9FRA/RUCTURE WILL AID ! =M] EV5 
MORE ?AN ! LATT]4 ,?IS =M ( AID SUBSIDIZES PRIVATE BUS9ESS AT PUBLIC 
EXP5SE 9 BO? ! GIV+ & ! RECEIV+ C\NTRIES4 

,ANY O!R L>GE-SCALE AID1 SU* AS CONSUMPTION GOODS & FOOD /UFFS = ! 
IMM$IATE RELIEF ( SUFF]+ POPULATIONS1 W\LD 9T]F]E ) ! EXI/+ 
M>KET RELATIONS & ! SPECIAL 9T]E/S VE/$ 9 !M4 ,:]EAS 9 ! 
0MATURE0 NATIONS ?IS M]ELY MEANS ?AT ! *RONIC OV]PRODUCTION 
WILL BE RESOLV$ BY WA/E-PRODUCTION RA!R ?AN BY ! PROVISION ( HI<] 
LIV+ /&>DS1 9 BACKW>D C\NTRIES IT (T5 MEANS ACTUAL />VATION 9 ! 
MID/ ( V>I\S ATTEMPTS TO CREATE ! PRECONDITIONS = CAPITAL 
DEVELOPM5T4 

,! OV]:ELM+ P>T ( AID ACTUALLY RECEIV$ BY UND]DEVELOP$ NATIONS HAS 
CONSI/$ ( MILIT>Y ASSI/ANCE4 ,9 ?IS =M AID IS LEA/ DETRIM5TAL TO 
PRIVATE 9T]E/S4 ,BY RELIEV+ ! GOV]NM5TS ( UND]DEVELOP$ NATIONS ( 
P>T ( !IR 0DEF5SE0 EXP5DITURES1 FUNDS >E FRE$ 
7!ORETICALLY BUT NOT NECESS>ILY ACTUALLY7 = PURPOSES ( DEVELOPM5T4 
,MILIT>Y ASSI/ANCE S]VES TO %ORE-UP GOV]NM5TS SYMPA!TIC TO ,WE/]N 
POLICIES3 IT IS GIV5 TO GOV]NM5TS :I* REPRES5T SOCIAL CLASSES DET]M9$ 
TO MA9TA9 DOME/IC PROP]TY RELATIONS AS WELL AS 9T]NATIONAL ECONOMIC 
RELATION%IPS UN*ANG$4 0,NOT )\T ECONOMIC SIGNIFICANCE10 IT IS 
SAID1 0IS ! CAPABILITY DEMON/RAT$ BY SPECIALIZ$ UNITS ( ! >M$ 
=CES ( ,P]U1 ,COLUMBIA & ,V5EZUELA TO DE/ROY OR CONTROL ,COMMUNI/-L$ 
GU]RILLA GR\PS ATTEMPT+ TO M\NT L>GE-SCALE LIB]ATION FRONT OP]ATIONS4 
,SU* EF=TS HAVE FAIL$ TO DISRUPT NATIONAL CONFID5CE40.<#a#d.> ,A M9OR P>T ( 
=EIGN AID IS ( A NONMILIT>Y NATURE4 ,BE+ A K9D ( AUXILI>Y MILIT>Y 
ASSI/ANCE1 IT IS DET]M9$ BY ! POLITICAL-MILIT>Y NE$S ( ! AID-GIV+ 
NATIONS1 NOT BY ! DEVELOPM5T-NE$S ( ! AID-RECEIV+ C\NTRIES4 ,TO 
PROVIDE AID ( GREAT] SIGNIFICANCE C\LD LEAD TO RADICAL *ANGES 9 ! SOCIAL 
& ECONOMIC /RUCTURE ( ! UND]DEVELOP$ C\NTRIES1 :I* C\LD AFFECT ! 
ECONOMIC & POLITICAL-MILIT>Y 9T]E/S ( ! AID-DISP5S+ P[]S4 ,= ! 
NEW SOCIAL =CES RELEAS$ BY ! DEVELOPM5TAL PROCESS MAY WELL UPSET & 
OV]?R[ CU/OM>Y TRADE RELATIONS AS WELL AS POLITICAL ALLIANCES2 
P>TICUL>LY BE CAUSE UND] PRES5T DAY WORLD CONDITIONS RAPID SOCIAL & 
ECONOMIC DEVELOPM5T IMPLIES GOV]NM5T CONTROL T5D+ T[>DS 
/ATE-CAPITALISM4 ,=EIGN AID IS GIV+ TO CONTA91 NOT TO EXT5D1 ! 
/ATE-CAPITALI/ TR5D4 

,A REAL CONC]N = 0BACKW>D0 NATIONS W\LD BE /RANGE 9DE$3 
NOT SO LONG AGO 5ORM\S 5]GIES W]E RELEAS$1 9 TWO WORLD W>S1 TO TURN 
9DU/RIALLY-DEVELOP$ NATIONS 9TO SO MANY UND]-DEVELOP$ >EAS2 & /ILL 
GREAT] 5]GIES >E TODAY /OR$-UP TO TRANS=M ! :OLE WORLD 9TO SO MU* 
UND]DEVELOP$ T]RITORY &1 P]HAPS1 9TO T]RITORY 9CAPABLE ( ANY K9D ( 
DEVELOPM5T4 ,! IMP]IALI/ P[] /RUGGLES ALONE PREV5T ANY MEAN+FUL 
ASSI/ANCE TO =EIGN DEVELOPM5T4 ,! BOMB+ ( ! ,YALU P[] /ATIONS 9 
! ,KOREAN ,W>1 = 9/ANCE1 0DE/ROY$ MORE CAPITAL EQUIPM5T 9 A 
S+LE NI<T ?AN ! ,UNIT$ ,/ATES IS 9VE/+ 9 ! :OLE UND]DEVELOP$ 
>EAS 9 A :OLE YE>40 .<#a#e.> ,?IS 0POLICY0 IS N[ REPEAT$ ON A F> 
L>G] SCALE 9 ,VIETNAM1 & WILL MO/ PROBABLY BE EXT5D$ TO ! DEVELOP$ 
P>TS ( ,*9A & ! :OLE ( ,S\!A/ ,ASIA4 

,9 #aiei GOV]NM5T GRANTS & LOANS BY ! 9DU/RIAL C\NTRIES ( ! 
0FREE WORLD0 TO ! LESS-DEVELOP$ NATIONS W]E R\<LY E/IMAT$ 
AT @s#d BILLION1 ( :I* ! ,UNIT$ ,/ATES SUPPLI$ AB\T TWO ?IRDS & ,FRANCE 
& ! ,UNIT$ ,K+DOM MO/ ( ! REMA9D]4 ,?IS WAS F> LESS ?AN #a P] C5T 
( !SE NATIONS' GROSS NATIONAL PRODUCT4 ,9 FACT1 9 #a#i#f#a1 :5 A 
R5EW$ EF=T TO ASSI/ ! POOR] L&S WAS PROPOS$1 ! #a P] C5T FIGURE 
WAS PROCLAIM$ A DESIRABLE GOAL = AID EXP5DITURES4 ,! TOTAL FL[ ( 
GOV]NM5T & PRIVATE FUNDS FROM ,EUROPE & ,NOR? ,AM]ICA TO ! UND] 
DEVELOP$ C\NTRIES AV]AG$ JU/ UND] #g BILLION DOLL>S A YE> FROM #aief 
?R\< #a#i#e#i4 ,( ?IS ANNUAL AV]AGE1 GOV]NM5T GRANTS & LOANS ACC\NT$ = 
@s#c #f BILLION V>I\S =MS ( PRIVATE L5D+ & 9VE/M5T = @s#b4#g BILLION2 
& CONTRIBUTIONS TO 9T]NATIONAL AG5CIES = HELP+ UND]DEVELOP$ 
C\NTRIES = @s#f MILLION4 ,!SE COMPILATIONS 9CLUD$ ELEV5 DIFF]5T =MS 
( 0AID1 RANG+ FROM GOV]NM5T GRANTS TO PRIVATE PUR*ASES ( ,WORLD 
,BANK NOTES1 & 9CLUD+ GU>ANTE$ EXPORT CR$ITS1 PL[$-BACK E>N+ ( 
PRIVATE COMPANIES 9 UND]DEVELOP$ C\NTRIES1 REP>ATION PAYM5TS & SO =? 
- ALL ( !SE CATEGORIES BE+ CONSID]$ 0=EIGN AID0 
BECAUSE ALL ( !M REPRES5T$ A FL[ ( MONEY TO UND]DEVELOP$ 
C\NTRIES4 

,! 0AID0 ?US F> PROVID$ = ! BACKW>D C\NTRIES HAS BE5 
TOO SLI<T TO AFFECT LIV+ CONDITIONS & NOT ( A K9D TO 5HANCE ECONOMIC 
DEVELOPM5T4 ,CONSEQU5TLY1 IT HAS ONLY WID5$ ! 9COME GAP BETWE5 ! RI* 
& ! POOR NATIONS1 RA!R ?AN N>R[+ IT4 ,9 ! ,KEYNESIAN VIEW IT MU/ 
!N BE 5L>G$ & P]HAPS DIFF]5TLY DI/RIBUT$ OR QUALITATIVELY ALT]$4 
,JU/ AS ADDITIONAL GOV]NM5T-9DUC$ PRODUCTION IS ! ,KEYNESIANS' 
SOLUTION TO ! PROBLEM ( CAPITAL /AGNATION 9 ! ADVANC$ C\NTRIES1 SO 
MORE =EIGN AID IS !IR PROGRAM = SPE$+-UP DEVELOPM5T 9 UND]DEVELOP$ 
C\NTRIES4 ,HAV+ REA*$ ?IS CONCLUSION1 ! ,KEYNESIANS %ELVE ! ISSUE1 = 
! IMPLEM5TATION ( !IR !ORIES IS NOT )9 !IR COMPET5CE4 

,= ! DEVELOPM5T ( BACKW>D >EAS1 H[EV]1 ! ,KEYNESIAN G5]OSITY IS 
AS 9APPLICABLE AS ! MIS]LY REALITY ( =EIGN AID IS MEAN+LESS4 ,AS 
PO9T$ \T BE=E1 GOV]NM5T-9DUC$ WA/E-PRODUCTION 9 ! DEVELOP$ 
NATIONS IS NOT CONSID]$ SUP]FLU\S BY !IR GOV]NM5TS OR1 = ?AT MATT]1 
BY !IR POPULATIONS2 IT IS SE5 AS NECESS>Y = ! 9T]NAL & EXT]NAL 
SECURITY ( ! NATION & ( ,WE/]N CAPITALISM4 ,MOREOV]1 %ORT ( VIOLAT+ 
FREE-5T]PRISE PR9CIPLES1 !RE IS NO WAY TO TRANSF] FUNDS FROM ! SPH]E 
( WA/E-PRODUCTION TO ?AT ( =EIGN AID1 UNLESS ?IS =EIGN AID IS A P>T 
( ! DEF5SE ME*ANISM ( ,WE/]N CAPITALISM2 9 :I* CASE1 IT IS ITSELF 
ANO!R =M ( WA/E-PRODUCTION4 ,9 VIEW ( ?IS SITUATION1 GOV]NM5T FUNDS 
= ANY & ALL PURPOSES >E ALWAYS SC>CE4 ,) AN 9T]NATIONAL >MAM5TS 
RACE 9 PROGRESS1 !RE IS LITTLE *ANCE = AN 9CREASE ( =EIGN AID 
EXP5DITURES CAPABLE ( MAK+ A DIFF]5CE 9 ! ECONOMIC GR[? ( 
UND]DEVELOP$ C\NTRIES4 ,BUT EV5 A SUB/ANTIAL R$UCTION ( WA/E-PRODUCTION 
VIA DIS>MAM5T POLICIES W\LD NOT LEAD TO A SIGNIFICANT 5L>GEM5T ( =EIGN 
AID UNLESS SU* AID S]V$ ! PR(IT REQUIREM5TS ( ! 9DU/RIAL 
NATIONS4 

,IT IS HELD1 ( C\RSE1 ?AT =EIGN AID WILL PROVE A BOON TO ! DEVELOP$ 
NATIONS AS ! 9DU/RIAL GR[? ( HI!RTO UND]DEVELOP$ C\NTRIES BECOMES 
! IMPETUS = A G5]AL CAPITALI/ ADVANCE4 ,9/EAD ( MAK+ ! RI* 
C\NTRIES POOR]1 ! DEVELOPM5T ( POOR] C\NTRIES CAN MAKE ALL NATIONS 
RI*]4 ,! IDEA F9DS SUPPORT 9 ,KEYNESIAN !ORY1 ACCORD+ TO :I* ALL 
CAPITALI/ NATIONS CAN REA* A PO9T ( 0MATURITY0 :]E 
CAPITAL-DEM& FALLS BEL[ SAV+S PROP5SITIES4 ,IT IS !N JU/ A QUE/ION AS 
TO H[ ! LATT] CAN BE MADE COMPATIBLE ) ! DEVELOPM5T NE$S ( ! 
POOR] NATIONS4 ,! ANSW] IS ! SIMPLE REQUE/ TO MAKE !M COMPATIBLE BY 
APPROPRIATE GOV]NM5T MEASURES4 ,BUT IT IS PRECISELY BECAUSE ! SAV+ 
PROP5SITIES ( ! RI*] NATIONS >E 9COMPATIBLE ) ! 
DEVELOPM5T NE$S ( ! POOR] NATIONS ?AT NEI!R PRIVATE CAPITAL1 NOR 
GOV]NM5TS REPRES5T+ PRIVATE CAPITAL1 CAN ACCEPT ! ,KEYNESIAN 
SUGGE/IONS4 

,ECONOMIC /AGNATION 9 ! ADVANC$ CAPITALI/ NATIONS IS ACCOMPANI$ BY 
/AGNATION 9 ! UND]DEVELOP$ C\NTRIES BECAUSE 9 BO? FUR!R 9VE/M5TS 
APPE> AS UNPR(ITABLE UND] ! EXI/+ CONDITIONS ( PRODUCTION4 ,OBVI\SLY1 
/AGNATION IS NOT A CAPITALI/ POLICY BUT IS SUFF]$ BY ! CAPITALI/S1 AS BY 
ANYONE ELSE1 = REASONS BEYOND !IR CONTROL & EV5 BEYOND !IR KN[L$GE4 
,= !M ! PROBLEM IS NOT :AT TO DO ) 0SAV+S0 ?AT CANNOT 
PR(ITABLY BE 9VE/$1 BUT RA!R H[ TO 9CREASE ! PR(ITABILITY ( CAPITAL 
SO AS TO EMPLOY !SE 0SAV+S0 CAPITALI/ICALLY4 ,BUT 
0SAV+S0 LOOK+ = 9VE/M5T OPPORTUNITIES WILL F9D !M1 IF 
AT ALL1 FIR/ 9 ! DEVELOP$ & NOT 9 ! UND]DEVELOP$ C\NTRIES4 ,EV5 IF 
9DU/RIAL DEVELOPM5T %\LD GET UND] WAY 9 ! LATT]1 ! FACT ?AT !Y 
>E LESS-DEVELOP$ MAKES !IR PRODUCTIVITY1 & ?US !IR PR(ITABILITY1 
L[] ?AN ?AT 9 ! OLD] CAPITALI/ NATIONS4 ,?US1 EV5 !IR DEVELOPM5T 
WILL 9CREASE ! DISP>ITY BETWE5 DEVELOP$ & UND]DEVELOP$ NATIONS4 

,AL?\< IT IS FREQU5TLY ASS]T$ ?AT BACKW>D C\NTRIES 0HAVE ! 
ADVANTAGE ( BE+ ABLE TO ADAPT ! LATE/ EQUIPM5T )\T HAV+ TO SCRAP 
EXI/+ EQUIPM5T & )\T BE+ H&ICAPP$ BY ! EXI/5CE ( OBSOLETE 
BUILD+S10.<#a#f.> 
?IS ADVANTAGE DOES NOT REALLY EXI/4 ,RA!R1 ! SL[LY 9CREAS+ 
9DU/RIALIZATION ( UND]DEVELOP$ C\NTRIES WID5S ! PRODUCTIVITY GAP 
BETWE5 0RI*0 & 0POOR0 C\NTRIES = ! V]Y REASON 
?AT ! DEVELOP$ NATIONS 5JOY ALL ! ADVANTAGES ( MOD]N TE*NOLOGY4 ,IT IS 
TRUE1 ( C\RSE1 ?AT SOME ( ! NEW TE*NOLOGICAL 9NOVATIONS F9D 
APPLICATION 9 UND]DEVELOP$ C\NTRIES - 9 ! EXTRACTION 9DU/RIES1 
= 9/ANCE - BUT H]E !Y SUPPORT =EIGN CAPITAL RA!R ?AN NATIVE 
DEVELOPM5T4 

,! PR(ITABILITY ( CAPITAL 9 UND]DEVELOP$ C\NTRIES IS1 ( C\RSE1 V]Y 
HI< 9 ! EXTRACTION 9DU/RIES4 ,OP]AT$ ) ! MO/ MOD]N EQUIPM5T & 
S]V$ BY TE*NICIANS FROM ABROAD1 !Y >E CAPABLE ( COMPET+ ) SIMIL> 
9DU/RIES 9 ! DEVELOP$ NATIONS4 ,9 FACT1 SU* 9DU/RIES >E (T5 
5ORM\SLY PR(IT ABLE4 ,?IS IS NOT ONLY BECAUSE !Y >E COMPETITIVE1 BUT ALSO 
BECAUSE !RE IS NO NE$ = COMPETITION4 ,! WORLD PRICE = CRUDE OIL1 = 
EXAMPLE1 IS FIX$ SO ?AT ITS EXTRACTION FROM ! RELATIVELY HI< CO/ 
OILFIELDS 9 ! ,UNIT$ ,/ATES WILL BE PR(ITABLE4 ,?IS PRICE HAS NO RELATION 
TO ! CO/ ( PRODUCTION 9 ! L[ CO/ OILFIELDS 9 ! UND]DEVELOP$ 
C\NTRIES4 0,TO SELL = AB\T #a %ILL+S A TON SOME?+ :I* CO/S 
#ac %ILL+S A TON TO PRODUCE 79 ! ,P]SIAN ,GULF1 = 9/ANCE7 IS A 
REM>KABLE A*IEVEM5T4 ,SU* A M>G9 ( PR(ITABILITY MAKES IT F> FROM 
RU9\S TO HAVE TO GIVE BACK TO ! ,>AB ,/ATES HALF 7OR MORE7 ( ! 
PR(IT40.<#a#g.> ,IT 
IS = ?IS REASON1 !N1 ?AT ! BULK ( =EIGN PRIVATE 9VE/M5TS HAS BE5 
CONC5TRAT$ 9 ! EXTRACTION 9DU/RIES4 ,PRIVATE 5T]PRISE SECURES 
PR(ITABILITY = =EIGN 9VE/M5TS BY CREAT+ MONOPOLIES 9 P>TICUL> 
9DU/RIES & ALL[+ !M TO *>GE PRICES 9DEP5D5T ( PRODUCTION CO/S4 
,BUT EV5 SO1 EXCEPT = P>TICUL> BUS9ESSES1 G5]AL BACKW>DNESS IMPLIES L[ 
PR(ITABILITY & = ?AT REASON DOES NOT ATTRACT =EIGN CAPITAL4 

,9S(> AS ! UND]DEVELOP$ NATIONS C\LD BE DEVELOP$ ?R\< =EIGN 
PRIVATE 9VE/M5TS !Y >E ALREADY 0DEVELOP$02 & 9S(> AS 
!Y CAN BE FUR!R DEVELOP$ BY PRIVATE CAPITAL !Y WILL BE - QUITE 
AP>T FROM ALL GOV]NM5T URG+S4 ,IF !Y >E /ILL 9 A MO/ FRI<TFUL /ATE 
( UND]DEVELOPM5T1 ?IS M]ELY 9DICATES ?AT ! CAPITALI/ MODE ( 
PRODUCTION - P>TICUL>LY 9 ITS FREE-5T]PRISE =M - IS NOT ABLE 
TO DEVELOP AN 9TEGRAT$ WORLD ECONOMY & A RATIONAL DIVISION ( LABOR :I* 
ASSURE ! EXI/5CE & WELL-BE+ ( ! WORLD'S POPULATION4 ,= JU/ 
AS 9 ANY P>TICUL> CAPITALI/ NATION 9VE/M5TS /OP AT ! PO9T :]E !Y 
CEASE TO BE PR(ITABLE1 REG>DLESS ( ACTUAL SOCIAL NE$S1 SO 9 ! WORLD AT 
L>GE1 ! EXI/+ 9VE/M5TS 9DICATE ! BORD]S SET BY !IR 
PR(ITABILITY4 ,?IS SITUATION TE/IFIES TO CAPITALISM'S 9ABILITY TO 
EXT5D ITS MODE ( PRODUCTION 9TO A WORLD SY/EM4 ,ALL CAPITALISM HAS BE5 ABLE 
TO DO IS TO CREATE ! WORLD M>KET2 & IT WAS ?IS CREATION ITSELF :I* 
DIVID$ ! WORLD 9TO 0POOR0 & 0RI*0 NATIONS4 

,! V]Y NOTION ( =EIGN 9VE/M5TS IMPLIES ?AT !IR [N]S RESIDE 
SOME:]E O!R ?AN :]E ! 9VE/M5TS >E MADE4 ,!Y MAY TAKE ALL1 OR 
P>T1 ( ! PR(ITS MADE ABROAD 9TO ! C\NTRY ( !IR RESID5CE4 ,9 ?IS 
WAY1 CAPITALI/S EXPLOIT ! LABOR ( O!R NATIONS )\T ACCUMULAT+ MU* 
CAPITAL 9 !SE NATIONS4 ,IT IS TRUE ?AT 9 SO DO+ !Y PROVIDE SOME PEOPLE 
) WORK1 PEOPLE :O O!RWISE MI<T BE IDLE OR OCCUPI$ 9 LESS-REMUN]ATIVE 
OCCUPATIONS2 BUT !Y >E NOT FO/]+ ECONOMIC DEVELOPM5T TO ! EXT5T MADE 
POSSIBLE BY ! EXPLOITATION ( ?IS LABOR4 ,NATIVE CAPITALI/S TOO1 = REASONS 
( EI!R PR(ITABILITY OR SECURITY1 MAY & USUALLY DO S5D P>T1 OR ALL1 ( 
!IR PR(ITS ABROAD4 ,ALL ?IS IS QUITE LEGITIMATE UNTIL IT IS \TLAW$1 = IT 
CORRESPONDS TO ! CAPITALI/ IDEAL ( ! 0FREE0 MOVEM5T ( 
CAPITAL 9 A 0FREE0 WORLD M>KET4 ,! SE>* = MAXIMUM PR(ITS 
& MAXIMUM SECURITY IS PRECISELY ! ME*ANISM SUPPOS$ TO DI/RIBUTE CAPITAL 
9 ! MO/ 0ECONOMICAL0 WAY1 :I* IS SUPPOS$LY ALSO ! WAY MO/ 
B5EFICIAL = ! WORLD'S POPULATION4 ,:AT IT ACTUALLY DOES IS TO 
P]PETUATE & ACC5TUATE ! 9COME GAP BETWE5 ! RI* & ! POOR NATIONS4 
,MORE MONEY LEAVES ! BACKW>D NATIONS ?AN IS 9VE/$ 9 !M BY ! 
DEVELOP$ C\NTRIES4 ,ACCORD+ TO ! ,UNIT$ ,/ATES ,DEP>TM5T ( ,COMM]CE1 = 
9/ANCE1 9VE/M5TS BY ,UNIT$ ,/ATES 9VE/ORS 9 ,LAT9 ,AM]ICAN C\NTRIES1 
9CLUD+ BO? NEW CAPITAL & UNRETURN$ E>N+S1 AM\NT$ 9 #aieh TO @s#c#a#g 
MILLION1 :ILE E>N+S RETURN$ TO ! ,UNIT$ ,/ATES W]E @s#f#e#c MILLION4 ,! 
RESPECTIVE FIGURES = ! FOLL[+ YE>S W]E3 

  
  ,9,V,E,/,$ ,R,E,P,A,T,R,I,A,T,$ #aiei @s#c#d#g ,M,I,L,L,I,O,N @s#f ,M,I,L,L,I,O,N #aif  @s#b#f#g ,M,I,L,L,I,O,N @s#f#d#a ,M,I,L,L,I,O,N  

,OR TO TAKE A S+LE C\NTRY3 0,FROM #aidc TO #aieh PRIVATE =EIGN 
CITIZ5S 9VE/$ NE>LY @s#b#e MILLION 9 ,*ILI4 ,OV] ! SAME #ae YE> P]IOD 
!SE =EIGN]S TOOK NE>LY @s#f MILLION 9 ! =M ( REPATRIAT$ PR(ITS4 
,?IS \TFL[1 MA9LY TO ! ,UNIT$ ,/ATES1 REPRES5T$ A GIFT ( @s#e FROM EV]Y 
MAN1 WOMAN & *ILD 9 ,*ILI4 ,! C\NTRY DESP]ATELY NE$S TO RECEIVE AID1 
NOT GIVE IT40.<#a#h.> ,BUT ?IS COMPLA9T RE/S ON A MISUND]/&+1 
= CAPITALISM HAS NO?+ TO DO ) *>ITY1 EXCEPT AS ANO!R PR(ITABLE 
BUS9ESS4 

,9 SPITE ( ! FACT ?AT MO/ ( ! PR(ITS MADE 5RI* ! DEVELOP$ 
NATIONS MORE ?AN ! UND]DEVELOP$1 ! LATT] CLAMOR NONE!LESS = MORE 
=EIGN CAPITAL 9VE/M5TS TO BUTTRESS ! EXI/+ PROP]TY RELATIONS 9 
!IR [N C\NTRIES4 ,BUT CAPITAL IS NOT EAG] TO 9VE/1 NOT ONLY BECAUSE ( 
! COMPET+ DEM& = CAPITAL 9 ! DEVELOP$ C\NTRIES1 BUT ALSO BECAUSE 
9VE/M5TS 9 MANY UND]DEVELOP$ C\NTRIES - :I* >E NATIONS 9 
P]MAN5T CRISIS CONDITIONS - >E NO LONG] SECURE4 ,9T]E/$ MA9LY 9 
NATURAL RES\RCES SU* AS OIL & METALS1 =EIGN 9VE/ORS FO/] A ONE-SID$ 
DEVELOPM5T :I* P]PETUATES ! POOR C\NTRIES' DEP5D5CE ON ! RI* 
NATIONS & PREV5TS !IR MORE G5]AL DEVELOPM5T4 ,!RE >E EXCEPTIONS1 ( 
C\RSE1 F9D+ !IR CAUSE 9 A GEOGRAPHICAL PROXIMITY BETWE5 DEVELOP$ & 
UND]DEVELOP$ NATIONS4 ,9 ,MEXICO & ,CUBA1 = 9/ANCE1 ,AM]ICAN CAPITAL HAS 
TRI$ TO 5T] ALL /RATEGIC 9DU/RIES4 ,AM]ICAN BUS9ESSES [N$ #f P] C5T 
( ALL ,CUBAN 9DU/RIES FROM COSMETICS TO SUG> CANE4 ,BUT ?IS PROXIMITY DID 
NOT PREV5T ! RISE ( REVOLUTION>Y SOCIAL MOVEM5TS & GOV]NM5TS4 ,!Y 
RE/RICT$ & EV5 EXPROPRIAT$ =EIGN CAPITAL 9 ! NAME ( A FREE NATIONAL 
DEVELOPM5T1 & SET !MSELVES AGA9/ ! SPECIFIC PR(IT NE$S ( ! GREAT 
9DU/RIAL & F9ANCIAL EMPIRES4 ,BECAUSE SU* MOVEM5TS HAVE BE5 WIDESPREAD 
& ?REAT5 TO RAISE !IR HEADS AGA91 PRIVATE CAPITAL HAS NO GREAT DESIRE TO 
9VE/ 9 UND]DEVELOP$ >EAS1 :]E IT FACES NOT ONLY ECONOMIC BUT ALSO 
POLITICAL RISKS4 

,BECAUSE ONLY A LIMIT$ AM\NT ( CAPITAL IS AVAILABLE = 
GOV]NM5T-TO-GOV]NM5T AID TRANSACTIONS1 & BECAUSE ALL GOV]NM5T AID IS 
DESIGN$ TO /R5G!N & SECURE AS MU* AS POSSIBLE ( ! FREE WORLD1 ?IS 
AID HAS ! TW(OLD FUNCTION ( ! EXI/+ PROP]TY RELATIONS 9 ! 
AID-RECEIV+ C\NTRIES & ( ASSUR+ WID] FIELDS ( OP]ATION = ! 
CAPITALI/S ( ! AID-DISP5S+ NATIONS4 ,) FEW EXCEPTIONS1 BAS$ ON PURELY 
POLITICAL CONSID]ATIONS AID IS NOT PROVID$ = ! DEVELOPM5T ( /ATE-[N$ 
9DU/RIES EXCEPT ?OSE ?AT FALL 9TO ! CATEGORY 
09FRA/RUCTURE40 ,TO 5C\RAGE CAPITAL EXPORTS TO ! 
UND]DEVELOP$ NATIONS1 GOV]NM5TS (T5 UND]WRITE & GU>ANTEE SU* 
9VE/M5TS AGA9/ CURR5CY DISORD]S1 EX*ANGE CONTROLS1 CONFISCATORY 
TAXATION1 & EXPROPRIATION4 ,BUT EV5 ! ELIM9ATION ( RISK AT ! EXP5SE ( 
! PUBLIC PURSE DOES NOT GREATLY /IMULATE =EIGN 9VE/M5TS2 :AT NE$S TO 
BE ASSUR$ >E L>G] PR(ITS ?AN ?OSE AVAILABLE AT HOME4 

,CAPITALISM'S 9ABILITY & UNWILL+NESS TO EXT5D ! 
9DU/RIALIZATION PROCESS TO ! UND]DEVELOP$ >EAS ( ! WORLD HAS L$ TO 
NATIONAL-REVOLUTION>Y MOVEM5TS :I* EMPHASIZE ! ROLE ( ! /ATE 9 ! 
G5]AL PROCESS ( ECONOMIC DEVELOPM5T4 ,?IS CONVICTION IS H]E NOT ! RESULT 
( A LONG PROCESS ( 9CREAS+ GOV]NM5T CONTROL AS EXP]I5C$ 9 ! 
ADVANC$ CAPITALI/ NATIONS4 ,RA!R IT IS ! />T+-PO9T = 
NATIONALLY-DET]M9$ CAPITAL DEVELOPM5T DIRECT$ AGA9/ BO? NATIVE 
BACKW>DNESS & =EIGN CONTROL1 & (T5 IS ACCOMPANI$ BY A P>TIAL1 OR 
TOTAL1 EXPROPRIATION ( =EIGN & NATIVE CAPITAL4 ,! ORD9>Y BUS9ESS ( 
PR(IT-MAK+ BECOMES ?US A MATT] ( NATIONAL CONC]N & P[] POLITICS4 
,BECAUSE SOME ,WE/]N FIRMS LOSE \T TO 0NATIONALIZATION0 9 ,IRAN OR 
,GUATEMALA1 = 9/ANCE1 !Y GET !IR GOV]NM5TS TO RE/ORE & SECURE !IR 
PRIVILEGES4 ,& BECAUSE ! BUS9ESSES ( !SE 5T]PRISES - AS ( ALL 
5T]PRISES - >E 9 SOME WAYS ALREADY AN 9TEGRAL P>T ( GOV]NM5T 
POLICY1 !IR GOV]NM5TS WILL 9T]V5E ON !IR [N ACCORD4 ,=EIGN BUS9ESS 
9VOLVES ! 9T]E/S & ! PRE/IGE ( GOV]NM5TS4 ,IT IS FUR!R$ & 
PROTECT$ BY POLITICAL MEANS4 ,! ATTEMPTS ( NATIONS TO ESCAPE ! DETRIM5TAL 
ECONOMIC CONSEQU5CES ( BE+ RAW-MAT]IAL PRODUC+ T]RITORIES = ! GREAT 
CAPITALI/ P[]S1 !IR 9SI/5CE UPON PRICE & PR(IT POLICIES MORE 
FAVORABLE TO !MSELVES1 >E TREAT$ AS 0CONSPIRACIES0 NOT ONLY 
AGA9/ SPECIAL BUS9ESS 9T]E/S BUT AGA9/ ,WE/]N CIVILIZATION ITSELF4 

,:ILE POLITICAL1 MILIT>Y1 & /RATEGIC CONSID]ATIONS /EM FROM ECONOMIC 
9T]E/S & FROM NECESSITIES 9H]5T 9 CAPITAL ACCUMULATION1 & :ILE ?IS 
IS (T5 QUITE OBVI\S - AS1 = 9/ANCE1 9 ! GREAT 9T]E/ 
DISPLAY$ 9 ,S\!A/ ,ASIA AS A RI* RAW MAT]IAL-PRODUC+ >EA & 9 ! 
OIL-PRODUC+ ,MIDDLE ,EA/ - ! NATIONAL =M ( COMPETITION OBSCURES ! 
CLOSE RELATION%IP BETWE5 POLITICAL & ECONOMIC 9T]E/S4 ,! LATT]1 TO BE 
SURE1 HAVE ALWAYS 9CLUD$ MORE ?AN JU/ ! IMM$IATE OR EXPECT$ PR(IT 
ABILITY ( SPECIFIC CORPORATIONS4 ,BUT NEV] BE=E HAS CAPITAL ACCUMULATION 
BE5 SO CLOSELY ASSOCIAT$ ) EI!R IMP]IALISM OR NATIONALISM4 ,?IS IS 
/ILL ANO!R 9DICATION ( ! G5]AL DECL9E ( ! M>KET ECONOMY & ITS 
SL[ TRANS=MATION 9TO A GOV]NM5T-DIRECT$ ECONOMY :I* OP]ATES1 FIR/ ( 
ALL1 9 T]MS ( T]RITORIES ACTUALLY CONTROLL$1 ( RAW MAT]IAL S\RCES & 
MANP[] ACTUALLY SECUR$1 & ( L9ES ( COMMUNICATION ACTUALLY MONOPOLIZ$1 
9/EAD ( 9 T]MS ( SUPPLY & DEM& 9 A WORLD REG>D$ AS AN OP5 M>KET 
PLACE4 ,& ?US1 ?\< NATIONAL & IMP]IALI/ 9T]E/S >E /ILL ECONOMIC 
9T]E/S1 SELDOM OR NOT AT ALL >E !Y EXPRESS$ 9 BUS9ESS T]MS4 

,EV5 9 ! PA/ 9DU/RIAL DEVELOPM5T REQUIR$ A GREAT EF=T ON ! P>T 
( ! /ATE4 ,9 ,JAPAN1 = EXAMPLE1 FE> ( COLONIZATION & =EIGN 
EXPLOITATION L$ TO ! DELIB]ATE 9TRODUCTION ( CAPITALISM BY GOV]NM5T4 
,ALREADY 9 ITS FIR/ /AGES ! ,JAPANESE DEVELOPM5T %[$ ELEM5TS ( 
0,KEYNESIANISM0 :I* W]E LAT] TO BECOME *>ACT]I/IC ( MOD]N 
CAPITALISM4 ,BY LIMIT+ ! IMPORT ( =EIGN CAPITAL1 ,JAPAN RETA9$ A L>GE 
DEGREE ( ECONOMIC 9DEP5D5CE1 & ?\< ?IS REQUIR$ AN EXTRAORD9>Y 
DEGREE ( EXPLOITATION IT A*IEV$ ITS GOAL - A ,JAPANESE CAPITALISM 
CAPABLE ( COMPET+ ) O!R CAPITALI/ NATIONS4 ,BACK$ BY POLITICALLY 
FAVOR$ F9ANCIAL H\SES1 MOD]N 9DU/RY WAS 9TRODUC$ BO? ) RESPECT TO 
ECONOMIC-COMPETITIVE & MILIT>Y NE$S4 0,!SE 9DU/RIES MO/ HI<LY 
DEVELOP$ 9 ! TE*NICAL S5SE & FA%ION$ AFT] ! MO/ UP-TO-DATE 
,WE/]N MODEL1 W]E ! PRIDE ( ! /ATE BUREAUCRACY :I* JEAL\SLY GU>D$ 
!M EV5 AFT] L>GE P>TS W]E ACQUIR$ BY PRIVATE CAPITAL40.<#a#i.> ,BUT ,JAPAN WAS ! 
EXCEPTION4 ,H] RAPID *ANGE 9TO AN 9DU/RIAL P[] TOOK PLACE >\ND ! TURN 
( ! C5TURY1 AT A HI< PO9T ( 9T]NATIONAL CAPITAL EXPANSION1 & UND] 
! FAVORABLE POLITICAL CONDITIONS OCCASION$ BY ,AM]ICA'S *ALL5GE TO 
,EUROPEAN COLONIALISM 9 ! ,F> ,EA/4 ,:AT ! ,EUROPEAN P[]S HAD REA*$ BY 
9T]V5TION1 ,AM]ICA WAS \T TO REA* BY TRADE1 & ! 0OP5 
DOOR0 POLICY WAS TO OP]ATE AGA9/ BO? ! COLONIZ]S & ! 
LESS-DEVELOP$ NATION 

,! CRISES & W>S ( ! TW5TIE? C5TURY DE/ROY$ MO/ ( ! ,EUROPEAN 
COLONIALISM4 ,BUT ! POLITICAL 9DEP5D5CE GA9$ BY =M] COLONIES WAS NO 
LONG] A SUFFICI5T CONDITION = !IR ECONOMIC DEVELOPM5T4 ,!Y W]E ALREADY 
TOO IMPOV]I%$ FROM ! /AGNATION ( PREVI\S DECADES4 ,!IR SITUATION HAS 
BE5 DESCRIB$ AS A VICI\S CIRCLE A L[ CAPITAL /OCK IMPLIES A L[ LEVEL ( 
PRODUCTION1 & SO ( 9COME4 ,BUT A L[ 9COME DOES NOT P]MIT L>GE SAV+S 
& H5CE ! CAPITAL /OCK CANNOT EASILY BE 9CREAS$4.<#b.> ,! LEVEL ( 9COME CANNOT BE RAIS$ 
)\T 9DU/RIALIZATION & 9DU/RIALIZATION CANNOT BE DEVELOP$4 ,)\T 
HI<] 9COMES BUT HI<] 9COMES CANNOT BE GA9$ BY WAY ( TRADE 9 NON 
9DU/RIAL PRODUCTS4 ,IT MU/ BE GA9$ 9T]NALLY ?R\< A /ILL MORE RU?LESS 
EXPLOITATION TO YIELD SURPLUSES L>GE 5\< TO SET LABOR FREE TO CON/RUCT AN 
9DU/RIAL BASE1 )\T !REBY DIM9I%+ ! EXPORTS REQUIR$ TO PAY = 
IMPORTS NECESS>Y TO ! 9DU/RIALIZATION PROCESS4 

,ASIDE FROM COLONIAL CONTROL & TRADE DISCRIM9ATION1 A C\NTRY OR >EA MAY 
/AY UND]DEVELOP$ BECAUSE ( A DEFICI5CY ( NATURAL RES\RCES SU* AS >ABLE 
L& & M9]AL DEPOSITS4 ,SURPLUSES MAY BE UNATTA9ABLE2 & ?US 9DU/RIAL 
DEVELOPM5T WILL BE IMPOSSIBLE1 EXCEPT SU* AS IS 9TRODUC$ FROM )\T1 
:I* AFFECTS ONLY P>TICUL> RES\RCES - OIL & GAS 9 ! ,SAH>A = 
9/ANCE4 ,H[EV]1 UND]DEVELOPM5T EXI/S 9 C\NTRIES OR T]RITORIES :E!R 
OR NOT !Y HAVE ADEQUATE NATURAL RES\RCES4 ,IT EV5 EXI/S )9 CAPITALI/ 
NATIONS AS1 = EXAMPLE1 9 ,ITALY1 :OSE HI<LY 9DU/RIALIZ$ ,NOR? & V]Y 
BACKW>D1 AGRICULTURAL ,S\? REPEATS ON A NATIONAL SCALE ! 9T]NATIONAL 
DIVISION ( POOR & RI* T]RITORIES4 ,:ILE !RE >E SOME P>TS ( ! WORLD 
?AT CANNOT 9 ANY MEAN+FUL WAY BE 9DU/RIALLY DEVELOP$1 ?IS HAS NO?+ 
TO DO ) ! PROBLEM ( UND]DEVELOPM5T 9 NATIONS POT5TIALLY CAPABLE ( 
ECONOMIC GR[?4 

,9 ECONOMIC P>LANCE A C\NTRY IS CONSID]$ TO BE PROGRESSIVE IF IT 
CONSUMES LESS ?AN ITS NET PRODUCTION1 SO AS TO P]MIT A NET ADDITION TO ! 
EXI/+ /OCK ( CAPITAL4 ,IT HAS BE5 E/IMAT$ ?AT 9 REC5T YE>S 
UND]DEVELOP$ ECONOMIES' NET 9VE/M5TS HAVE BE5 BETWE5 #c P] C5T 
& #e P] C5T ( NATIONAL PRODUCTS 9 CONTRA/ TO DEVELOP$ NATIONS1 :]E ! 
RATES HAVE BE5 BETWE5 #a P] C5T & #ae P] C5T4 ,BUT ! 9CREASE ( 
PRODUCTION 9 UND]DEVELOP$ C\NTRIES HAS BE5 L>GELY (FSET BY AN EQUIVAL5T 
POPULATION 9CREASE4 ,IT IS SAID ?AT !SE NATIONS CONSUME AS MU* AS !Y 
PRODUCE2 ?IS1 ( C\RSE1 IS TRUE ONLY :5 ONE DISREG>DS ! UNCAPITALIZ$ 
SAV+S ( ! RI* AS WELL AS ?OSE SURPLUSES :I* DISAPPE> BY WAY ( TRADE 
TO REAPPE> AS CAPITAL 9 ! DEVELOP$ NATIONS4 

,BECAUSE ! UND]DEVELOP$ C\NTRIES >E HI<-CO/ PRODUC]S !RE IS A 
GREAT AM\NT ( UNEMPLOYM5T 9 BO? AGRICULTURE & 9DU/RY4 ,ACCORD+ TO 
,KEYNES1 UNEMPLOYM5T 9 0MATURE0 CAPITALISM F9DS ITS CAUSE 9 A 
DEFICI5CY ( EFFECTIVE DEM& BECAUSE ( OV]SAV+S DUE TO A RELATIVE 
ABUNDANCE ( CAPITAL4 ,?IS DOES NOT APPLY TO UND]DEVELOP$ NATIONS4 ,!RE >E 
SURPLUSES1 ( C\RSE1 BUT !Y >E NOT PRODUCTIVELY APPLI$4 ,! RI* ( ! 
UND]DEVELOP$ C\NTRIES T5D TO AMASS =TUNES 9 ! =M ( HO>DS RA!R 
?AN 9 ! =M ( PRODUCTIVE CAPITAL4 ,9COME DISP>ITIES BETWE5 ! RI* & 
! POOR 9 ! UND]DEVELOP$ C\NTRIES >E EV5 L>G] ?AN 9 ! DEVELOP$ 
NATIONS OR1 AT ANY RATE1 APPE> TO BE L>G] BECAUSE ( ! EXTREMELY L[ 
LIV+ /&>DS ( ! GREAT BULK ( !IR POPULATIONS4 ,BE+ QUITE SATISFI$ 
) ! EXI/+ /ATE ( AFFAIRS1 ! RI* RUL+ CLASSES F9D NO REASON TO 
ALT] ! CONDITIONS :I* GRANT !M !IR PRIVILEGES4 

,9 B\RGEOIS ECONOMIC !ORY1 9CLUD+ ! ,KEYNESIAN V]SION 9COME 
9EQUALITIES >E JU/IFI$ AS A S\RCE ( CAPITAL =MATION4 ,ONLY ! WEAL?Y 
CAN SAVE ON A SIGNIFICANT SCALE2 & ! MORE !Y 0SAVE0 ! MORE 
RAPID ! DEVELOPM5T WILL BE4 ,ONLY UND] CONDITIONS :]E TOO MU* HAS ALREADY 
BE5 0SAV$10 I4E41 9 0MATURE0 CAPITALISM1 MAY AN 
9CREAS$ DEM& REQUIRE GREAT] 9COME EQUALITY4 ,AS !SE CONDITIONS >E ! 
OPPOSITE ( ?OSE PREVAIL+ UND]DEVELOP$ C\NTRIES1 ,KEYNESIAN !ORY CAN 
ONLY SUGGE/ :AT ALL O!R B\RGEOIS ECONOMIC !ORY ALSO PROPOSES & :AT1 
9 FACT1 IS ! CAPITALI/IC PRACTICE - NAMELY1 ! 9CREASE ( 
0SAV+S0 ?R\< 9CREAS$ EXPLOITATION & !IR APPLICATION 9 
9DU/RIAL DEVELOPM5T4 

,TO REIT]ATE1 ,KEYNES ?\<T ?AT ?R\<\T HI/ORY ! 9DUCEM5T TO 
9VE/ HAS ALWAYS BE5 WEAK] ?AN ! PROP5SITY TO SAVE4 ,HE WROTE ?AT 
0! DESIRE ( ! 9DIVIDUAL TO AUGM5T HIS P]SONAL WEAL? BY 
AB/A9+ FROM CONSUMPTION HAS USUALLY BE5 /RONG] ?AN ! 9DUCEM5T TO 
! 5TREPR5EUR TO AUGM5T ! NATIONAL WEAL? BY EMPLOY+ LABOR ON ! 
CON/RUCTION ( DURABLE ASSETS40.<#b#a.> ,H[EV]1 ?\< ! POOR CANNOT HELP BUT AB/A9 
FROM CONSUMPTION !Y AUGM5T NO?+ BUT !IR MIS]Y4 ,& ?\< ! RI* 
CONSUME 9 A QUITE FANTA/IC FA%ION !Y GET RI*] NONE!LESS4 

,KEYNES SPEAKS ONLY AB\T ! RI* 9 BO? DEVELOP$ & UND] DEVELOP$ 
C\NTRIES1 UND] CAPITALI/ & UND] PRE-CAPITALI/ CONDITIONS4 ,9 
0MATURE0 CAPITALISM1 ! 9DUCEM5T TO 9VE/ IS BECAUSE 
0MATURITY0 DE/ROYS PR(ITABILITY2 :]EAS 9 
0IMMATURE0 CAPITALISM1 PEOPLE CAN GET RI*1 & /AY RI*1 JU/ 
BECAUSE !RE IS NO CAPITALI/ DEVELOPM5T4 0,NON-CONSUMPTION10 
WRITES A DISCIPLE ( ,KEYNES1 0DOES NOT NECESS>ILY C>RY ) IT ! 
IMPLICATION ?AT IT !REBY RELEASES JU/ ! K9D ( HUMAN & MAT]IAL 
RES\RCE :I* CAN BE US$ TO PRODUCE CAPITAL GOODS & ) NON*ALANT EASE AT 
?AT4.<#b#b.> ,! RI* ( 
! POOR NATIONS MU/ NOT ONLY AB/A9 FROM CONSUMPTION BUT MU/ AB/A9 9 
ORD] TO 9VE/ 9 ! CON/RUCTION ( DURABLE ASSETS 9 %ORT ! ,KEYNESIAN 
PROGRAM = 9DU/RIAL DEVELOPM5T IS CAPITALISM4 ,& ?IS COMPRISES AB\T ! 
:OLE ( ,KEYNES' CONTRIBUTION TO ! 0!ORY ( ECONOMIC 
GR[?40 

,! MEAG]NESS ( ,KEYNES' CONTRIBUTION TO ! 0!ORY ( 
GR[?0 DID NOT PREV5T ! FACT ?AT ! ACTUAL1 OR ANTICIPAT$1 
9DU/RIAL DEVELOPM5T ( BACKW>D ECONOMIES IS N[ L>GELY RECOGNIZ$ AS 
EI!R A 0,KEYNESIAN0 OR A 0SOCIALI/0 DEVELOPM5T1 
DEP5D+ ON ! EXT5T ( /ATE-P>TICIPATION 9 ! CAPITAL =MATION 
PROCESS4 ,AL?\< /ATE 9T]V5TIONS UND] PRE-CAPITALI/ CONDITIONS HAVE AN 
ALTOGE!R DIFF]5T FUNCTION FROM ?OSE ADVOCAT$ BY ,KEYNES TO SOLVE ! 
PROBLEMS ( ! ADVANC$ CAPITALI/ NATIONS1 IT IS POSSIBLE TO APPLY ! 
,KEYNESIAN TE*NIQUES = SPE$+ UP ! PROCESS ( CAPITAL =MATION 9 
UND]DEVELOP$ C\NTRIES4 ,/ATE CONTROL ( ECONOMIC DEVELOPM5T PREC$$ ,KEYNES 
!ORY NOT ONLY 9 ! LIMIT$ ,KEYNESIAN S5SE ( /ATE CONTROL1 AS EXP]I5C$ 
9 ,JAPAN1 BUT ALSO 9 ! WID] & MORE CONSI/5T NON S5SE ( 
/ATE-[N]%IP ( ! MEANS ( PRODUCTION1 FIR/ REALIZ$ 9 ,RUSSIA4 

,NATIONAL REVOLUTIONS TOOK ON A V>IETY ( =MS & *>ACT]I/ICS )9 
!IR BASICALLY CAPITALI/ NATURE1 9 ACCORDANCE ) ! 9DIVIDUAL HI/ORIES 
( ! C\NTRIES :]E !Y OCCURR$ & ! WORLD SITUATION !Y FAC$4 
,RUSSIA'S PROXIMITY TO ! ,WE/]N WORLD1 ! AM\NT ( =EIGN CAPITAL 
?AT HAD BE5 9VE/$ 9 HI<LY-ADVANC$ 9DU/RIES 7H[EV] SMALL 9 RELATION 
TO ! SIZE & ! NE$S ( ! NATION71 ! WEAKNESS ( H] B\RGEOISIE 
)9 ! RUL+ SOCIAL GR\PS & H] PEASANT POPULATION :I* /ROVE TO 
ESCAPE ! P]SI/5T SEMI-FEUDAL CONDITIONS - ALL ?IS GAVE H] 
REVOLUTION ! *>ACT] ( A 0REVOLUTION FROM BEL[10 AN UPRIS+ 
( WORK]S & POOR PEASANTS & !IR MIDDLE-CLASS ALLIES AGA9/ ALL 
EXP]I5C$ =MS ( EXPLOITATION1 :E!R ( L&LORDS OR ( NATIVE OR =EIGN 
CAPITAL4 ,BAS$ ON ,M>XIAN IDEOLOGY1 ! GOAL WAS SOCIALISM & ITS REALIZATION 
?R\< ! AG5CY ( A REVOLUTION>Y /ATE4 ,9 ,9DIA ! REVOLUTION>Y F]M5T 
WAS ( A DIFF]5T NATURE4 ,)9 ! COLONIAL CONDITIONS1 !RE SL[LY EM]G$ 
9 ID5TITY ( 9T]E/S BETWE5 ! NATIVE & =EIGN B\RGEOISIE4 ,FO/]$ 
BY ! CIRCUM/ANCES ( TWO WORLD W>S1 !RE WAS A M]G] ( =EIGN & 
NATIVE CAPITAL & A RAPID EXPANSION ( ! LATT]4 ,YET ! GREAT] 
PRIMITIV5ESS ( H] 9DU/RIAL & AGRICULTURAL PRODUCTION & ! CONSEQU5T 
LACK ( SOCIAL AW>5ESS 9 ! L[] CLASSES GAVE H] REVOLUTION>Y 
ASPIRATIONS ! *>ACT] ( A NATIONAL MOVEM5T = POLITICAL 9DEP5D5CE1 
AWAIT+ DELIV]ANCE ?R\< ! DECL9E ( ,BRITI% IMP]IALISM4 ,:]EAS ,RUSSIA 
IS CONSID]$ A /ATE-SOCIALI/1 OR /ATE-CAPITALI/1 SY/EM 9 ! 
NON-,KEYNESIAN S5SE ( /ATE-[N]%IP ( ! MEANS ( PRODUCTION1 ,9DIA1 
CONSID]+ H]SELF A SOCIALI/ WELF>E-/ATE1 REPRES5TS1 AT LEA/ 
IDEOLOGICALLY1 A 0,KEYNESIAN SY/EM0 :I* LIMITS ITSELF TO /ATE 
CONTROL ( ! ECONOMY4 ,= 9 0SOCIALI/ ,9DIA10 AS ( #a#i#e#h1 
0IT WAS E/IMAT$ ?AT #i P] C5T ( ! C\NTRY'S 5T]PRISES1 
9CLUD+ AGRICULTURE :I* IS 5TIRELY 9 ! H&S ( 9DIVIDUAL [N]S1 W]E 
9 PRIVATE H&S1 & FURNI%$ #ib P] C5T ( ! C\NTRY'S TOTAL 
9COME1 ) ONLY #h P] C5T ( TOTAL 9COME COM+ FROM GOV]NM5T [N$ 
5T]PRISES40.<#b#c.> 

,) ,RUSSIA'S DEVELOPM5T 9TO AN 9DU/RIAL P[] & ) ! RISE 
( ! ,EA/]N BLOC AFT] ! ,SECOND ,WORLD ,W>1 ! WORLD'S NATIONAL 
ECONOMIES 9 BO? DEVELOP$ & UND]DEVELOP$ C\NTRIES DIVID$ 9TO SY/EMS 
( /ATE-[N]%IP & SY/EMS ( LIMIT$ /ATE CONTROL4 ,! DIVISION IS NOT 
ABSOLUTE2 ! V>I\S NATIONS ADH]+ TO ONE OR ! O!R PR9CIPLE ( SOCIAL 
ORGANIZATION DISPLAY V>I\S DEGREES ( EI!R /ATE-[N]%IP OR 
/ATE-CONTROL4 

,!RE >E NO TWO C\NTRIES EXACTLY ALIKE 9 ?IS RESPECT EI!R AMONG ! 
SO-CALL$ COMMUNI/ NATIONS OR AMONG ! NATIONS BELONG+ TO ! 0FREE 
WORLD10 OR AMONG ?OSE :I* >E CONSID]$ UNCOMMITT$0 TO EI!R 
ONE ( ! EXI/+ P[] BLOCS4 ,BUT 9 A ,I NATIONS GOV]NM5TS 9T]V5E TO 
SOME EXT5T 9TO ! ECONOMIC ME*ANISM4 ,9 ! 0COMMUNI/0 NATIONS 
9VE/M5TS >E PRESUMABLY DIRECTLY DET]M9$ BY GOV]NM5T DECISIONS4 ,9 ! 
CON ,I TROLL$1 OR MIX$1 ECONOMIES1 DEVELOP$ & UND]DEVELOP$1 9VE/M5TS 
>E ! RESULT ( M>KET =CES :I* ! GOV]NM5TS SEEK TO 9FLU5CE BY 
MONET>Y & FISCAL MEANS1 & :I* !Y SUPPLEM5T BY DIRECTLY-DET]M9$ 
9VE/M5TS 9 PUBLIC 5T]PRISES & GOV]NM5T-9DUC$ PRODUCTION4 ,! FISCAL 
& MONET>Y POLICIES :I* HAVE COME TO BE ASSOCIAT$ ) ! NAME ( ,KEYNES 
>E APPLICABLE 9 ALL EXI/+ ECONOMIC SY/EMS REG>DLESS ( !IR SPECIFIC 
*>ACT] OR !IR P>TICUL> /AGE ( DEVELOPM5T4 

,:]EAS 9 ! 0MATURE0 NATIONS ,KEYNESIAN POLICIES S]VE TO 
/ABILIZE ! ECONOMY1 UND]DEVELOP$ C\NTRIES CAN USE !M TO ORGANIZE & 
COORD9ATE ECONOMIC GR[?4 ,FISCAL & MONET>Y POLICIES MAY DI/RIBUTE 9COME 
9 SU* A WAY AS TO 9CREASE ! ACCUMULATION FUND4 ,! GOV]NM5T MAY ITSELF 
UND]TAKE ! TASK ( SAV+S & 9VE/M5TS1 5ACT+ :AT ,KEYNES CONCEIV$ 
AS A SOME:AT COMPREH5SIVE SOCIALIZATION ( 9VE/M5TS ?R\< ! COLLECTION 
( COMMUNAL SAV+S4 ,IF ,KEYNES HIMSELF SAW ?IS ONLY AS A POSSIBILITY ( ! 
FUTURE1 HE WAS NONE!LESS CONV9C$1 OR SO HE SAID1 ( ITS DESIRABILITY1 NOT 
ONLY BECAUSE ( ! DECL9+ PROP5SITY TO CONSUME BUT ALSO BECAUSE HE 
BELIEV$ 9 ! /ATE'S SUP]IOR CAPACITY TO CALCULATE ! PR(ITABILITY 
OR M>G9AL EFFICI5CY ( CAPITAL 9 ! LONG-RUN & TO GIVE DUE CONSID]ATION 
TO ! 0G5]AL SOCIAL ADVANTAGE40 

,ALL ! ,KEYNESIAN SUGGE/IONS AS TO H[ TO OV]COME CAPITALI/ /AGNATION 
& DECL9E 9 ! DEVELOP$ NATIONS REF] TO GOV]NM5T ACTIVITIES :I* BR+ 
A MEASURE ( 0PLANN+0 9TO ! M>KET ME*ANISM4 ,BUT IF P>TIAL 
0PLANN+0 IS POSSIBLE1 SO IS TOTAL PLANN+2 !RE IS NO?+ 9 
! ,KEYNESIAN SY/EM :I* W\LD EXCLUDE ITS APPLICATION 9 A /ATE-CAPITALI/1 
OR /ATE-SOCIALI/ SY/EM ADVOCATES ( ! /ATE-CAPITALI/ SY/EM OBJECT TO 
,KEYNESIANISM NOT BECAUSE IT SUGGE/S MANIPULAT+ 9COME DI/RIBUTION TO CREATE 
! DESIR$ RELATION%IP BETWE5 9VE/M5T & CONSUMPTION BUT BECAUSE ,KEYNES 
WI%$ TO MAKE ONLY LIMIT$ USE ( SU* MANIPULATIVE TE*NIQUES4 

,AL?\< ,KEYNESIAN MANIPULATIVE TE*NIQUES >E APPLICABLE 9 ALL CAPITALI/ 
SY/EMS REG>DLESS ( !IR /AGE ( DEVELOPM5T1 ,KEYNES' 0G5]AL 
!ORY ( EMPLOYM5T0 LOSES ITS 0G5]ALITY0 BY A 
CONSID]ATION ( UNEMPLOYM5T 9 UND]DEVELOP$ C\NTRIES4 ,9 !SE C\NTRIES1 
UNEMPLOYM5T IS ! RESULT NOT ( AN ABUNDANCE BUT ( A LACK ( CAPITAL4 ,?IS 
UNEMPLOYM5T1 DISGUIS$ AS OV] POPULATION RELATIVE TO ! EXI/+ MEANS ( 
PRODUCTION & TO !IR PRODUCTIVITY1 IS ITSELF A H9DRANCE TO CAPITAL 
=MATION1 NOT ONLY BECAUSE ( ! *EAPNESS ( LABOR COMPET+ ) CAPITAL1 
BUT ALSO BECAUSE PLANN$ DEVELOPM5T MU/ H]E NECESS>ILY BE ( AN 
EMPLOYM5T-G5]AT+ 9/EAD ( A CAPITAL-9CREAS+ NATURE4 ,! PLANN+ 
AU?ORITY MU/ />T \T ) A K9D ( SOCIAL PLANN+ NOT CONDUCIVE TO RAPID 
CAPITAL =MATION1 OR DE/ROY A L>GE P>T ( ! POPULATION4 ,UND] SU* 
CONDITIONS ! ,KEYNESIAN TE*NIQUES WILL NOT SUFFICE TO YIELD ! SURPLUSES 
NECESS>Y TO 9ITIATE CAPITAL DEVELOPM5T4 

,A C\NTRY MAY BE SO IMPOV]I%$ ?AT NEI!R FISCAL NOR MONET>Y POLICIES 
CAN SUCCESSFULLY *ANNEL FUNDS FROM CONSUMPTION TO 9VE/M5TS4 ,IT MAY !N BE 
F\ND NECESS>Y TO ORGANIZE PRODUCTION & CONSUMPTION BY PURELY POLITICAL 
MEANS & TO =CE POPULATIONS 9TO BEHAVIOR PATT]NS ?AT WILL YIELD SURPLUSES 
NOT O!R WISE ATTA9ABLE4 ,! COLLECTIVIZATION ( ,RUSSIAN AGRICULTURE1 AS WELL 
AS ! :OLE ( ! ,/AL9I/ T]ROR SY/EM1 WAS SU* AN UND]TAK+4 ,IT F9DS 
A MODIFI$ REPETITION 9 PRES5T-DAY ,*9A BECAUSE !RE IS NO O!R WAY TO 
CAPITAL =MATION4 0,GIV5 A BACKW>D & OV] POPULAT$ AGR>IAN SOCIETY 
AS A />T+ PO9T10 IT HAS BE5 SAID1 0ANY EMOTIONLESS 
PRACTITION] ( ECONOMICS MI<T HAVE PRESCRIB$ MO/ ( :AT IS BE+ DONE 9 
,*9A TODAY EV5 IF HE HAD NEV] HE>D ! WORD ,COMMUNISM40.<#b#d.> 

,BUT NOT ALL UND]DEVELOP$ C\NTRIES >E 9 SU* AN IMPOV]I%$ /ATE1 & 
EV5 IF !Y W]E1 SOME ( !M W\LD /ILL NOT BE ABLE TO SOLVE !IR 
DEVELOPM5TAL PROBLEMS 9 ! AU?ORIT>IAN WAYS ( /ATE-CAPITALISM4 ,9 SOME 
CASES1 A DEVELOP$ CAPITALI/ NATION MAY PREV5T AN UND]DEVELOP$ NATION FROM 
FOLL[+ ! /ATE CAPITALI/ MODEL2 OR ! UND]DEVELOP$ NATION MAY BE TOO 
DEP5D5T ON CAPITALI/ C\NTRIES TO CONSID] SU* A MOVE4 ,/ATE-CAPITALI/ 
SY/EMS MU/ TO SOME EXT5T FREE !MSELVES FROM TRADITIONAL WORLD M>KET 
RELATIONS4 ,!Y MU/ BE ABLE TO EXI/ UND] PR$OM9ANTLY AUT>*IC CONDITIONS1 
& !Y MU/ BE CAPABLE ( ) /&+ IMP]IALI/ PRESSURE4 ,!Y MU/ 
!RE=E BE L>GE ) L>GE POPULATIONS1 WELL 5D[$ ) NATURAL RES\RCES4 
,S9CE ! 5D ( ! ,SECOND ,WORLD ,W>1 H[EV]1 /ATE-CAPITALI/ NATIONS HAVE 
BE5 COMB9$ 9TO AN ,EA/]N P[] BLOC :I*1 9 ITS ECONOMIC RELATIONS1 
REPRES5TS A K9D ( 0SECOND WORLD0 M>KET4 ,?IS ALL[S EV5 WEAK 
OR SMALL NATIONS TO BREAK \T ( !IR PREVI\S DEP5D5CE ON ! PRIVATE WORLD 
M>KET & TO ORGANIZE !IR ECONOMIC LIFE ON /ATE-CAPITALI/ PR9CIPLES4 

,! SYN*RONIZATION ( V>I\S NATIONAL ECONOMIES APPE>S TO BE LESS 
DIFFICULT ?AN ECONOMIC 09TEGRATION0 BY WAY ( PRIVATE TRADE ON A 
MONOPOLI/IC WORLD M>KET4 ,& JU/ AS ! ,WE/]N P[]S DI/RIBUTE SOME 
0AID0 TO UND]DEVELOP$ C\NTRIES )9 !IR SPH]ES ( 9T]E/1 
SO ! /RONG] C\NTRIES ( ! ,EA/]N BLOC COME TO ! 0AID0 ( 
!IR UND]DEVELOP$ ALLIES OR POT5TIAL ALLIES4 ,ECONOMIC 0AID0 BY 
! ,SOVIET BLOC TO UND]DEVELOP$ NATIONS HAD REA*$ ! EQUIVAL5T ( @s#c 
BILLION BY #a#i#f4 ,MO/ ( ?IS 0AID0 WAS 9 ! =M ( LOANS & 
CR$ITS1 SOME ( IT COMPRIS+ MILIT>Y EQUIPM5T4 ,?IS 0AID0 HAS 
BE5 REG>D$ 9 ! ,WE/]N WORLD AS 0AID COMPETITION02 & SO IT 
IS LIKE ! 0AID0 ( ! ,WE/]N NATIONS1 IT IS GIV5 TO FUR!R 
! POLITICAL & ECONOMIC 9T]E/S ( ! DOM9AT+ P[]S ) ! ,EA/]N 
BLOC4 ,! DIRECT OR 9DIRECT CONTROL ( UND]DEVELOP$ C\NTRIES ADDS IMPORTANT 
S\RCES ( RAW MAT]IALS TO ! P[] BASE ( ! /ATE-CAPITALI/ SY/EMS & 
SUBTRACTS !SE RAW FROM ! 0FREE WORLD'S0 RES\RCES4 

,AL?\< ,SOVIET 0AID0 S]VES ! SAME PURPOSES AS 
0AID0 EXT5D$ BY ! ,WE/]N NATIONS1 IT IS (T5 PROVID$ UND] 
CONDITIONS MORE FAVORABLE TO ! UND]DEVELOP$ C\NTRIES4 ,RUSSIA'S RATE 
( 9T]E/ ON =EIGN LOANS1 = 9/ANCE1 IS #b #a_/#b  P] C5T AS AGA9/ A 
,WE/]N 9T]E/-RATE ( BETWE5 #d #a_/#b  & #e #a_/#b  P] C5T4 ,RUSSIAN 
9VE/M5TS 9 ! OIL-9DU/RY ( ,9DIA DEM& #a P] C5T ( ! RETURNS AS 
AGA9/ ! #e P] C5T ASK$ = BY ,BRITI% & ,AM]ICAN COMPANIES4 ,&1 MO/ 
IMPORTANT1 9DU/RIAL E/ABLI%M5TS ]ECT$ ?R\< ,SOVIET AID MEASURES BECOME 
! PROP]TY ( ! RECEIV+ C\NTRIES1 :]EAS ,WE/]N PRIVATE 9VE/M5T 9 
UND]DEVELOP$ NATIONS CONT9UE TO BE [N$ & OP]AT$ BY =EIGN COMPANIES4 
,!RE IS MU* B>T] DEAL+ & GOV]NM5T-TO-GOV]NM5T TRAD+1 :I* IS 
FAVORABLE TO UND]DEVELOP$ ,C,\ TRIES S9CE IT BY-PASSES 9T]NATIONAL PAYM5TS 
PROBLEMS4 ,!RE >E ALSO NO RE/RICTIONS OR PREF]5CES ) REG>D TO TYPES ( 
9DU/RIAL DEVELOPM5T2 COMPLETE FACTORY 9/ALLATIONS ( ALL DESCRIPTIONS 
(F]$ & DELIV]$4 ,EXT5SIVE USE IS MADE ( EXP]TS WORK+ 9 ! 
UND]DEVELOP$ C\NTRIES4 ,= ALL !SE REASONS1 TRADE TOO EXP&+ BETWE5 
! ,SOVIET BLOC & ! UND]DEVELOP$ NATIONS1 ?\< NOT ON A SCALE ?AT WILL 
MAKE A REAL DIFF]5CE 9 ! CONDITION ( ! BACKW>D NATIONS = SOME TIME 
TO COME4 

,! ,SOVIET BLOC'S POLICY ( EXP&+ TRADE ) UND]DEVELOP$ 
C\NTRIES BEGAN ON AN EXTREMELY SMALL BASE ( =EIGN TRADE4 0,= ! 
UND]DEVELOP$ C\NTRIES AS A GR\P1 ,SOVIET BLOC TRADE CAN BE EXPECT$ TO MAKE 
A POSITIVE ?\< DI/9CTLY M>G9AL CONTRIBUTION4 ,BUT EV5 A MANIFOLD 
9CREASE ( TRADE W\LD NOT ALT] ! FACT ?AT ! ECONOMIC FUTURE ( !SE 
C\NTRIES WILL CONT9UE TO BE 9T]WOV5 ) ! TRADE ( ! FREE 
WORLD40.<#b#e.> 
,TRADE ) ! 0FREE WORLD10 H[EV]1 IS TRADE = PRIVATE PR(IT 
& AS SU* IS DET]M9$ BY ! CONDITIONS PREVAIL+ 9 ! DEVELOP$1 NOT 
! UND]DEVELOP$1 C\NTRIES4 ,IF ?IS TRADE HAS HI!RTO NOT MU* PR(IT$ ! 
BACKW>D NATIONS1 IT CAN H>DLY BE EXPECT$ TO DO SO 9 ! FUTURE - A 
FUTURE ALREADY RE/RICT$ BY ! EXI/5CE & ! GR[? ( COMPETITIVE 
/ATE-CAPITALI/ SY/EMS4 

,! ALIGNM5T ( NATIONS 9 ,EA/]N & ,WE/]N P[] BLOCS IS NOT BAS$ ON 
! EXI/5CE ( ! 0TWO WORLD M>KETS40 ,RA!R IS ! OPPOSITE 
TRUE3 ! 0TWO WORLD M>KETS0 HAVE SOME REALITY ONLY BECAUSE 
9T]NATIONAL COMPETITION 7& COOP]ATION7 N[ HAS A POLITICAL-MILIT>Y 
*>ACT]4 ,! ,WE/]N P[]S DESIRE ! MA9T5ANCE ( CAPITALI/IC PROP]TY 
RELATIONS1 & FAVOR GOV]NM5T CONTROLS ONLY TO ?AT EXT5T :I* APPE>S 
NECESS>Y TO SECURE !SE RELATIONS & TO ALL[ !M TO DEVELOP 9 C\NTRIES 
ON ! V]GE ( CAPITALIZATION4 ,ALL =EIGN POLICY IS DESIGN$ TO /R5G!N 
PRIVATE 5T]PRISE :]EV] POSSIBLE & TO SABOTAGE /ATE-CAPITALI/ 
ASPIRATIONS :]EV] !Y >ISE4 ,ECONOMIC RELATIONS ) /ATE-CAPITALI/ 
SY/EMS >E HELD TO A M9IMUM1 OR >E DONE AWAY ) ALTOGE!R1 BY ! ,WE/]N 
NATIONS1 ?\< SOME >E MORE CONSI/5T 9 ?IS POLICY ?AN >E O!RS4 ,TRADE 
) ,*9A1 ,NOR? ,KOREA & ,CUBA1 = 9/ANCE1 HAS BECOME A CRIME UND] ! 
,AM]ICAN 0,TRADE ) ! ,5EMY ,ACT40 ,= ! /ATE-CAPITALI/ 
NATIONS1 ! 9T] NATIONAL M>KET IS ?US L>GELY RE/RICT$ TO O!R 
/ATE-CAPITALI/ NATIONS & TO NATIONS NOT AS YET COMMITT$ TO EI!R ( ! 
DOM9AT+ & COMPET+ P[] C5T]S4 

,MO/ ( ! UND]DEVELOP$ C\NTRIES SUFF]$1 & >E /ILL SUFF]+1 
UND] ! D\BLE YOKE ( NATIVE & =EIGN EXPLOITATION4 

,! SOCIAL /RUGGLES 9 !SE NATIONS >E /ILL F\<T AGA9/ BO? NATIVE 
RUL+ CLASSES & =EIGN CAPITAL4 ,BO? /RUGGLES 9VOLVE QUE/IONS ( 
PROP]TY EXPROPRIATION = ! RE>RANGEM5T ( NOTIONAL PRODUCTION & 
DI/RIBUTION 9 GREAT] CON=MITY ) NATIONAL 9T]E/S1 EV5 IF !SE 
0NATIONAL 9T]E/S0 BECOME ONCE MORE ! BASIS ( NEW SPECIAL 
9T]E/S VE/$ 9 ! POLITICAL CONTROL ( ! /ATE4 0,MIDDLE-CLASS 
GR\PS10 IT IS (T5 PO9T$ \T1 >E ! ,PROME!AN ELEM5TS 9 ! 
UND]DEVELOP$ SOCIETIES TODAY - ! ONLY CONSCI\S1 ACTIVE & CAPABLE 
AG5TS ( SOCIAL *ANGE4 ,! COMMUNI/S HAVE LONG RECOGNIZ$ ! CRUCIAL ROLE 
( ! MIDDLE CLASSES & HAVE BE5 MAK+ MAJOR EF=TS TO REA* & 9FLU5CE 
!M4 ,9 CONTRA/1 ! ,WE/ HAS DONE F> TOO LITTLE TO REAP ! B5EFITS ( ITS 
[N ADVANTAGES OV] ! COMMUNI/S40.<#b#f.> ,) REG>D TO SOCIAL *ANGE ! ,WE/ HAS NO SU* 
ADVANTAGES4 ,! *ANGE REQUIR$ 9 !SE NATIONS CAN ONLY BE DISADVANTAGE\S TO 
! ,WE/]N CAPITALI/ NATIONS4 ,IT IS PRECISELY BECAUSE ( SOCIAL *ANGE1 OR 
! DESIRE = *ANGE1 ?AT ! UND]DEVELOP$ NATIONS F9D !MSELVES 9 OP5 
OR LAT5T REBELLION NOT ONLY AGA9/ !IR [N RUL+ CLASSES BUT ALSO AGA9/ 
! LATT]S' SUPPORT]S 9 ! ADVANC$ C\NTRIES4 ,!SE REBELLIONS CAN 
HAVE NO O!R OBJECTIVE ?AN ! *ANGE ( EXI/+ CONDITIONS & !RE) ( 
! PROP]TY RELATIONS AT ! BASE ( !SE CONDITIONS4 ,IT IS BECAUSE ! 
0MIDDLE CLASSES0 F9D NO PROSPECT = ADVANCEM5T 9 UND]DEVELOP$ 
C\NTRIES1 & !SE C\NTRIES F9D NO PROSPECTS = DEVELOPM5T 9 ! 
MONOPOLI/ICALLY CONTROLL$ CAPITALI/ WORLD ?AT ANY S]I\S ATTEMPT AT 
DEVELOPM5T WILL BASE ITSELF ON /ATE CAPITALI/ IDEOLOGY & A /ATE 
CAPITALI/ PROGRAM EV5 :]E = ! TIME BE+ IT MU/ ACTUALLY BE SATISFI$ 
) /ATE-CONTROL 9 ! ,KEYNESIAN S5SE4 

,! DEVELOPM5T ( CAPITALISM 9 POOR C\NTRIES PRESUPPOSES SOCIAL MOVEM5TS 
AGA9/ ! SOCIAL =CES FAVOR+ ! /ATUS QUO2 IT IS ?US FIR/ ( 
ALL A POLITICAL PROBLEM4 ,BECAUSE ! NATION IS ! L>GE/ HI/ORICALLY EVOLV$ 
UNIT = COH]5T SOCIAL ORGANIZATION & BECAUSE CONDITIONS 9 ALL C\NTRIES 
V>Y1 DEVELOPM5T APPE>S AS A NATIONAL PROGRAM4 ,9 SOME WAYS IT MU/ BE 
COORD9AT$ ) SIMIL> PROGRAMS ( O!R NATIONS2 BUT ?IS L>G] UNIT ( 
ORGANIZATION WILL BE COMPOS$ ( A NUMB] ( NATIONAL UNITS & WILL HAVE NO 
P]MAN5T BASIS UNTIL ! 9/ITUTION ( ! NATION-/ATE IS ALTOGE!R 
ABOLI%$4 ,! DEVELOPM5T ( CAPITALISM & ! RISE ( ! NATION-/ATE W]E 
ONE & ! SAME PROCESS4 ,IT WAS ! FUNCTION ( ! /ATE TO ASSURE & SECURE 
! GR[? ( ! NATIONAL CAPITALI/ ECONOMY1 AS IT IS ITS FUNCTION N[ 
- BUT 9 F> GREAT] MEASURE - TO /ABILIZE ! CAPITALI/ SY/EM 
SO AS TO ASSURE ITS CONT9U$ EXI/5CE4 ,DEVELOPM5T UND] PRES5T WORLD 
CONDITIONS IS F> MORE DIFFICULT ?AN ! /ABILIZATION ( ADVANC$ CAPITALI/ 
SY/EMS & REQUIRES EV5 MORE GOV]NM5T CONTROLS4 ,AS !SE CONTROLS AFFECT 
V>I\S SOCIAL GR\P+S DIFF]5TLY1 !Y >E E/ABLI%$ BY WAY ( POLITICAL 
/RUGGLES1 :I* >E NOT CONF9$ TO ! NATIONAL SC5E BUT 9VOLVE O!R 
NATIONS BY AFFECT+ !IR POLITICAL & ECONOMIC 9T]E/S4 

,TO DO JU/ICE TO ! PROBLEMS ( UND]DEVELOP$ C\NTRIES1 IT W\LD BE 
NECESS>Y TO DEAL ) EA* NATION SEP>ATELY1 = EA* IS UNIQUE NOT ONLY 9 
ITS PHYSICAL & SOCIAL /RUCTURE BUT ALSO 9 ITS CONNECTIONS ) O!R 
NATIONS & ) ! WORLD AT L>GE4 ,MEASUR$ 9 T]MS ( NATIONAL 9COME P] 
HEAD1 ,S\!A/ ,ASIA APPE>S TO BE ! WORLD'S POORE/ >EA2 BUT IT IS 
ALSO ONE ( ! >EAS MO/ CONTE/$ BY ! IMP]IALI/ P[]S REPRES5T+ ! 
TWO COMPET+ SOCIAL SY/EMS4 ,*9A & ,9DIA FOLL[ CLOSELY1 ! ONE 
ATTEMPT+ ! /ATE-CAPITALI/ PA? ( DEVELOPM5T1 ! O!R ?AT ( 
/ATE-AID$ PRIVATE CAPITAL DEVELOPM5T4 ,! NATIONS ( TROPICAL ,AFRICA1 ?\< 
EV5 LESS DEVELOP$1 FALL 9TO AN 5TIRELY DIFF]5T CATEGORY4 ,NO ATTEMPTS AS 
YET >E MADE H]E1 EI!R BY =EIGN CAPITAL1 OR BY ! ,AFRICANS !MSELVES1 TO 
DIV]SIFY PRODUCTION4 ,L>GELY SELF-SUFFICI5T 9 FOOD PRODUCTION & 9 
RELATIVE ISOLATION FROM ONE ANO!R1 ! V>I\S ,AFRICAN /ATES RE/RICT !IR 
PRODUCTION & TRADE TO PRIM>Y GOODS 9T5D$ = ! ,WE/]N1 PR$OM9ANTLY 
,EUROPEAN1 M>KETS4 ,! CAPITAL 9 EVID5CE IS =EIGN CAPITAL 9VE/$ 9 
EXTRACTION 9DU/RIES4 ,NONE!LESS1 SOME ,AFRICAN GOV]NM5TS1 ,<ANA & ,S5EGAL 
= 9/ANCE1 CALL !MSELVES 0SOCIALI/0 OR 0WELF>E 
/ATES0 BECAUSE !Y HAVE TRANS=M$ EXI/+ PRIVATE M>KET+ 
ORGANIZATIONS 9TO MONOPOLI/IC GOV]NM5T AG5CIES4 ,! V>I\S NATIONS ( ! 
,MIDDLE ,EA/ DISPLAY DIFF]5T DEGREES ( /ATE-CONTROL1 FROM GOV]NM5T 
P>TICIPATION 9 PRIVATE 5T]PRISE & SOME =M ( GOV]NM5T REGULATION = 
ALMO/ ALL ECONOMIC ACTIVITIES1 AS 9 ,EGYPT1 TO AN ALMO/ COMPLETE ABS5CE ( 
GOV]NM5T 9T]V5TION 9 BUS9ESS1 AS 9 ,LEBANON4 ,ISRAEL1 BE+ 5TIRELY DE 
P5D5T ON =EIGN SUPPORT1 ASSUMES ! *>ACT] ( A MIX$ ECONOMY M]ELY 
BECAUSE ASSI/ANCE FROM ABROAD IS DI/RIBUT$ BY ! GOV]NM5T & *ANNEL$ 
9TO GOV]NM5T & SEMI-GOV]NM5T UND]TAK+S4 ,AS ?IS ASSI/ANCE HAS BE5 
T5 & TW5TY TIMES AS L>GE AS PRIVATE CAPITAL 9VE/M5TS1 IT IS ! 
GOV]NM5T NOT PRIVATE CAPITAL1 :I* DET]M9ES ECONOMIC ACTIVITY4 ,SOME ( ! 
POORE/ C\NTRIES 9 T]MS ( P] CAPITA 9COME >E F\ND 9 ,LAT9 ,AM]ICA2 
,BOLIVIA1 ,P>AGUAY1 & ,ECUADOR >E EXAMPLES ,LAT9 ,AM]ICA ALSO CONTA9S SOME ( 
! MO/ RAPIDLY DEVELOP+ NATIONS1 SU* AS ,MEXICO & ,BRAZIL4 ,YET ALL !SE 
NATIONS F9D !MSELVES 9 P]MAN5T CRISIS CONDITIONS2 SOME BECAUSE NO 
DEVELOPM5T TAKES PLACE1 O!RS BECAUSE !RE IS DEVELOPM5T1 & ALSO BECAUSE 
( ! 9T]NATIONAL REP]CUSSIONS ( ONE OR ! O!R ( !SE SITUATIONS4 

,AS REG>DS ,LAT9 ,AM]ICA ANY 9T5SIVE DEVELOPM5T REQUIRES OPPOSITION TO 
BO? ! EXI/+ SEMI-FEUDAL 9T]NAL RELATIONS TO ! EX*ANGE RELATIONS 
BETWE5 ! ,S\? ,AM]ICAN & ! DEVELOP$ =EIGN NATIONS4 ,ONLY AB\T #a P] 
C5T ( ,LAT9 ,AM]ICAN TRADE IS 9T]NAL1 #i P] C5T CONSI/+ ( TRADE ) 
! ,UNIT$ ,/ATES & ,WE/]N ,EUROPE1 :I* IS TRADE 9 PRIM>Y PRODUCTS SU* 
AS C(FEE1 BANANAS1 COCOA1 WOOL1 MEAT1 OIL SUG> COPP]1 ETC4 ,?IS SITUATION 
SUITS ! 9DU/RIAL NATIONS1 ! H]$IT>Y RUL+ CLASSES 9 ,LAT9 ,AM]ICA1 
& ! =EIGN 9VE/ORS 9 PRIM>Y 9DU/RIES4 ,! NATIVE HACI5DAS & 
LATIFUNDIA OP]ATE UND] A PEON SY/EM ( OBLIGATORY LABOR4 ,AL?\< NATIVE 
LABOR IS ?US EXTREMELY *EAP1 =EIGN 9VE/ORS 9 L>GE COMM]CIAL 
PLANTATIONS HAVE F\ND IT MORE PR(ITABLE TO REPLACE LABOR BY MA*9]Y1 A 
POLICY SOON ADOPT$ BY NATIVE PLANTATION [N]S4 ,!RE >OSE A RURAL 
PROLET>IAT1 L&LESS & UNEMPLOY$1 :I* HAS BE5 HELD D[N BY MILIT>Y 
DICTATOR%IPS SUBS]VI5T TO ! NATIVE & =EIGN RUL+ CLASSES4 ,=EIGN1 
P>TICUL>LY ,AM]ICAN1 EXPLOITATION HAS ALLI$ ITSELF1 IF NOT ALWAYS 
IDEOLOGICALLY AT ANY RATE FACTUALLY1 ) ! SEMI-FEUDAL 9T]E/S CONTROLL+ 
! ,LAT9 ,AM]ICAN NATIONS4 

,) ! EXCEPTION ( ,CUBA1 ! COMB9$ P[]S ( ! ,AM]ICAN & ,LAT9 
,AM]ICAN RUL+ CLASSES HAVE UNTIL N[ PROV$ CAPABLE ( MA9TA9+ ! BASIC 
SOCIAL RELATION%IPS 9 ! ,LAT9 ,AM]ICAN NATIONS DESPITE A S]IES ( SOCIAL 
UPHEAVALS4 ,! ,MEXICAN ,REVOLUTION WAS HALT$ MIDWAY & TURN$ 9TO AN 
9/RUM5T ( PRIVATE CAPITAL =MATION4 ,H[EV]1 NEW SOCIAL MOVEM5TS CONFRONT 
! ,MEXICAN GOV]NM5T ) FRE% DEM&S = ! COMPLETION ( ! 9T]RUPT$ 
NATIONALIZATION PROCESS4 ,! SOCIAL RE/IV5ESS 9 ! ,LAT9 ,AM]ICAN NATIONS 
=CES !IR GOV]NM5TS1 AT TIMES1 TO ASSUME GREAT] CONTROLS OV] ! 
NATIONAL ECONOMY4 ,MEXICO HAS BE5 JO9$ BY ,BOLIVIA & ,BRAZIL 9 ! DIVISION 
( SOME L>GE E/ATES & ! NATIONALIZATION ( NATURAL RES\RCES & SELECT$ 
9DU/RIES4 ,! *RONIC 9/ABILITY ( MO/ ( ! ,LAT9 ,AM]ICAN C\NTRIES1 
& ! 9CREAS+ MIS]Y AT ! BASE ( ?IS 9/ABILITY1 9DUC$ ! ,UNIT$ 
,/ATES TO (F] MORE 0AID0 )9 ! FRAMEWORK ( A NEW ,LAT9 
,AM]ICAN 0,ALLIANCE = ,PROGRESS40 ,BUT ?IS 0PROGRESS0 
IS /ILL 5VISION$ 9 T]MS ( ! M>KET ECONOMY & PRIVATE CAPITAL 
ACCUMULATION4 

,UNAVOIDABLE GOV]NM5T 9T]V5TIONS 9 ! ECONOMIC ACTIVITIES ( !SE 
NATIONS MODIFY !IR CAPITAL DEVELOPM5T TO SU* AN EXT5T ?AT !SE 
0DEVELOP+0 NATIONS MAY BE CONSID]$ 0DEVELOP+ MIX$ 
ECONOMIES40 ,:]EAS 9 ! DEVELOP$ NATIONS ! 0MIX$ 
ECONOMY0 FE$S ON ! CAPACITY ( PRIVATE 5T]PRISE TO PRODUCE MORE ?AN 
IT CAN CAPITALIZE1 9 ! LESS-DEVELOP$ NATIONS ! 0MIX$ 
ECONOMY0 MU/ CREATE ! CONDITIONS ( CAPITAL DEVELOPM5T4 ,AGRICULTURAL 
\TPUT MU/ RISE BUT LESS MU/ BE CONSUM$ 9 ORD] TO GA9 9VE/M5T CAPITAL4 
,TO BR+ CONSUMPTION D[N 9 SPITE ( ! 9CREAS$ ECONOMIC ACTIVITY !RE 
MU/ BE MONET>Y 9FLATION4 ,& ?US ! MORE & ! H>D] PEOPLE WORK ! 
LESS !Y >E REW>D$4 ,IT IS ?IS PREF]5CE ( 9FLATION TO O!R ME?ODS ( 
CAPITAL =MATION :I* GIVES !SE 0MIX$ ECONOMIES0 !IR 
0,KEYNESIAN0 CONNOTATION4 ,BUT BE+ ALREADY NE> />VATION LEVELS1 
?IS ME?OD WILL NOT SUFFICE TO BR+ =? ! CAPITAL NECESS>Y TO TURN ! 
UND]DEVELOP$ 9TO COMPETITIVE 9DU/RIAL ECONOMIES4 ,RA!R1 IT WILL 9CREASE 
SOCIAL UNRE/ & BR+ =? SOCIAL MOVEM5TS = MORE EFFICI5T & LESS 
HORRIBLE WAYS ( OV]COM+ !IR PRES5T ECONOMIC IMPASSE4 

,P>TLY BY *OICE & P>TLY BY NECESSITY1 PRIVATE 5T]PRISE & GOV]NM5T 
CONTROL OP]ATE SIMULTANE\SLY 9 EA* CAPITALI/ C\NTRY & ALSO AS COMPET+ 
SOCIAL SY/EMS 9 ! WORLD AT L>GE4 ,SIDE BY SIDE !RE EXI/1 !N1 ! MO/ 
RU?LESS G5]AL COMPETITION1 ! SUBORD9ATION ( PRIVATE TO NATIONAL 
COMPETITION 7OR VICE V]SA71 & ! SUBORD9ATION ( NATIONAL COMPETITION TO 
SUPRA-NATIONAL REQUIREM5TS 9T5D$ TO S]VE NATIONAL 5DS & !RE) ! 
( PRIVATE CAPITAL =MATION4 ,?IS SITUATION MAKES CONSI/5CY & P]SI/5CE 
9 ANY & EV]Y =M ( COMPETITION & COOP]ATION IMPOSSIBLE2 & ! 
V>I\S & *ANG+ ATTEMPTS AT ORGANIZATION & COLLABORATION :I* RESULT 
FROM IT ONLY 9CREASE ! AN>*IC *>ACT] ( CAPITAL PRODUCTION4 ,NATIONALISM 
AS IMP]IALISM1 & NATIONALISM 9 OPPOSITION TO IMP]IALISM1 LEAD TO AN 
ALWAYS-GREAT] 9T]NATIONAL ECONOMIC DIS9TEGRATION4 ,& ?IS AT A TIME :5 
WORLD CONDITIONS & PHYSICAL PRODUCTION PROCESSES MAKE ! SATISFACTION ( ! 
MO/ IMM$IATE NE$S ( ! WORLD'S POPULATION DEP5D5T ON ! CLOSE/ 
ECONOMIC 9TEGRATION4 

,9/EAD ( WORK+ = SU* 9TEGRATION1 9DU/RIAL C\NTRIES 9CREASE !IR 
AGRICULTURAL PRODUCTION TO REA* A HI< DEGREE ( SELF-SUFFICI5CY 9 
EXPECTATION ( W>1 OR M]ELY TO SATISFY !IR [N AGRICULTURAL PRODUC]S AS A 
MEASURE ( 0WELF>E ECONOMICS40 ,!Y PROTECT BO? !IR 
AGRICULTURAL & !IR 9DU/RIAL M>KETS FROM ALL POSSIBLE COMPETITORS ) A 
GREAT V>IETY ( T>IFFS & IMPORT RE/RICTIONS4 ,:ILE 9CREAS+ !IR 
AGRICULTURAL SURPLUSES1 !Y H9D] ! PRIM>Y PRODUC]S TO DIV]SIFY !IR 
PRODUCTION1 ?US =C+ !M TO CONTRACT !IR AGRICULTURAL PRODUCTION :I* 
IS ALREADY 9SUFFICI5T TO FE$ !IR POPULATIONS4 ,! GREAT MASS ( ! 
WORLD'S POPULATION /AYS HUNGRY1 :ILE SURPLUSES >E PIL$ UP 9 NATIONS 
UNABLE TO SELL !M & UNWILL+ TO GIVE !M AWAY4 ,!SE PEOPLE >E SUPPOS$ 
TO />VE !MSELVES /ILL FUR!R SO AS TO RAISE ! CAPITAL :I* WILL MAKE 
!IR WORK MORE PRODUCTIVE1 :ILE 9DU/RIAL LABOR 9 ! DEVELOP$ NATIONS IS 
IDLE1 OR PRODUC+ WA/E1 9/EAD ( PRODUC+ = WORLD-WIDE USE4 ,!SE 
IRRATIONAL ECONOMIC CONTRADICTIONS MANIFE/ !MSELVES 9 POLITICAL T5SION & 
! DIV]SION ( AN ALWAYS GREAT] P>T ( WORLD PRODUCTION 9TO >MS 
PRODUCTION4 ,! NATION-/ATE1 9 ITS GOV]NM5T-CONTROLL$ OR GOV]NM5T-[N$ 
AVAT>1 PROVES TO BE NO LESS IRRATIONAL A SOCIAL =M ?AN PRIVATE CAPITAL 
PRODUCTION ON A SUPPOS$LY FREE WORLD M>KET4 ,! DIFFICULTIES ( CAPITAL 
ACCUMULATION 9 BO? ! DEVELOP$ & UND]DEVELOP$ NATIONS DEFY NOT ONLY 
M>KET BUT ALSO NATIONAL SOLUTIONS4 

#a4 ,J4,M4 ,KEYNES1 ,! ,G5]AL ,!ORY1 P4 #c#a4 

#b4 ,IBID41 P4 #c#d#g4 

#c4 ,K4 ,K4 ,KURIH>A1 ,! ,KEYNESIAN ,!ORY ( ,ECONOMIC ,DEVELOPM5T1 ,NEW ,YORK1 #a#i#e#i1 P4 #b#b4 

#d4 ,IBID4 

#e4 ,J4 ,T9B]G51 ,%AP+ ! ,WORLD ,ECONOMY1 P4 #a#e4 

#f4 ,UNIT$ ,NATIONS1 ,DEP>TM5T ( ,ECONOMIC ,AFFAIRS1 ,9/ABILITY 9 ,E,X,P,O ,M>KETS ( ,UND]DEVELOP$ ,C\NTRIES1 ,NEW ,YORK1 #a#i#e#b1 ,I,I1 P4 #a 

#g4 ,NOVEMB]1 #a#i#f#e4 

#h4 ,! ,NEW ,YORK ,TIMES1 ,JANU>Y #c#a1 #aiff 

#i4 ,P4 ,A4 ,B>AN1 ,! ,POLITICAL ,ECONOMY ( ,GR[?1 ,NEW ,YORK1 #a#i#f1 P4 #a#h#d4 

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#a#a4 ,NURSKE1 ,PROBLEMS ( ,CAPITAL ,=MATION 9 ,UND]DEVELOP$ ,C\NTRIES ,LONDON1 #a#i#e#c1 P4 #f#c4 

#a#b4 ,P4 ,F4 ,DRUCK]1 ,L&M>KS ( ,TOMORR[1 ,NEW ,YORK1 #a#i#e#i1 P4 #a#f#d4 

#a#c4 ,G4 ,MYRDAL1 ,BEYOND ! ,WELF>E ,/ATE1 ,NEW ,HAV51 #a#i#f1 P4 #b#b#b4 

#a#d4 ,! ,NEW ,YORK ,TIMES1 ,JANU>Y #c#a1 #a#i#f#f4 

#a#e4 ,! ,NEW ,YORK ,TIMES1 ,SEPTEMB] #e1 #a#i#e#b4 

#a#f4 ,P4 ,E9ZIG1 ,! ,ECONOMIC ,CONSEQU5CE ( ,AUTOMATION1 ,NEW ,YORK1 #aieg P4 #f#e4 

#a#g4 ,J4 ,/RA*EY1 ,! ,5D ( ,EMPIRE1 ,NEW ,YORK1 #a#i#f1 P4 

#a#h4 ,J4 ,BECKET & ,K4 ,GRIFF91 ,! ,NEW ,REPUBLIC1 ,DECEMB] #b#i1 #a#i#f#b4 

#a#i4 ,H4 ,NORMAN1 ,JAPAN'S ,EM]G5CE AS A ,MOD]N ,/ATE1 ,NEW ,YORK1 #a#i#d#f1 

#b4 ,J4 ,T9B]G51 ,%AP+ ! ,WORLD ,ECONOMY1 P4 #a#d4 

#b#a4 ,! ,G5]AL ,!ORY1 P4 #c#d#h4 

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#b#c4 ,V4 ,M4 ,DEANS1 ,NEW ,PATT]NS ( ,DEMOCRACY 9 ,9DIA1 ,CAMBRIDGE1 #a#i#e#i1 P4 #a#f4 

#b#d4 ,T4 ,M5DE1 ,*9A & ,H] ,%AD[1 ,NEW ,YORK1 #a#i#f#b1 4 #a#f4 

#b#e4 ,B]L9]1 ,SOVIET ,ECONOMIC ,AID1 ,NEW ,YORK1 #a#i#e#h1 ,P4 

#b#f4 ,! ,NATIONAL ,PLANN+ ,ASSOCIATION1 ,! ,POLITICAL ,ECONOMY ( ,AM]ICAN ,=EIGN ,POLICY1 ,NEW ,YORK1 #a#i#e#e1 P4 #a#f#a4 

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,*RONOLOGY 3 
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