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Regional economic analysis for practitioners
BOOK
Regional Economic Analysis for Practitioners. A. BFWAVIII. Pracger Special Studtes m International Economtcs and Development. Praeger, New York (1977) 102 pp. 3-1hp. Prtcc US13 50.
This publicatton represents the cumulattve rxpertence of the .tuthor 1~htlc Iccturtng on regional analysts These Iccturoa were gtven III connectton wtth the Internattonal Post-Graduate Courses m Comprehrnstvc Regtonal Development Plannmg sponsored by the L[nrted Nattons and conducted by ths Settlement Study Centre m Rehovot Addtttonally. Mr Bendavtd was a regtonal economtst wtth t.1N ,IDP and was prtmartly concerned with staff trammg m rcgtonal proJccts. The obtectivc of the book 1s to asstst rcgtonal development held aorkers utth Itttle background knowledge of development cconomtcs and spattal analysts in such a v\ay that they can understand dcstgn. and Integrate regronal proJects Into ovcrah development et??nt~ The text presents a ‘package program’ K tth a break-down by self contamed destgned chapters Conscqucntly. the reader can acquire very valuable mformatton whtlr proccedmg gradually or by subjccttvcfy uclectmg the most relevant sections However, readers already acquamtrd with the hteraturc on regtonal studtrs will hardly apprcctatc the absence of dtscusstona on theorrcs of regronal cconomtc development and plannmg models Thrrc IS no attempt to solve problems of how to improve extsttng techntques 01 regtonal economtc analyses Thts means that the book 1s not too far reachmg an analysts at all, although the author clearly pomts out that rt IS hts mtentton “‘to present stmplttied means of performing the more common and most widely useful deacrtpttvr methods of regtonvl economic analysts” Vartous simple numertcal cxamplrs sktllfully present the essence of each techmyue. and the cxerctses appended to each chapter are meant to sttmulate reader mvolvemsnt. The first chapter mtroduccs thmkmg regional, wtthm the setting of nattonaf aggregate vart‘rbles and ohJect1L.c functtons The followmg chapter deals with the mrttal phase of the plannmg process tphasc of dtagnosts); namely. collecttng and collating stattsttcal data m order to ohtatn “regtonal protiles m the form of a stattsttcal compendtum” The chapter concludes wtth some suggesttons on ho\\ practtoners should organizr data Chapter 3 shoas ho\\ social accountmg should he appltrd to regtons Non-economtsts wtll ccrtamly benefit from the conceptual scheme for rrgtonal mcome computatton and the constructton of rcgtonul mcomc and product accounts In Chapter 1 there is a dtscussion of fundamental aspects of How. In&age analyses and balance-of-payments studtes Furthermore. dtdactttally well presented informatton 1s provtded on practtcal problems of constructmg mputtoutput tables. The subsequent chapter IS dedtcated to commonly used mtx-undshare analyses. However, dtscussron on rogtonally relevant cocffictcnts IS confined to the locatton coeflictent only. thus neglecting not only coeftictents of localtzatton. specialtzatron and shaft analysts. but also some mdrcattons as to then apectfic defictenctes to reflect regtonal drspartttes and
REVIEWS
properttes. Chapter 5 refers to Ttebout’s work m the early 1960s and parttcularly shows how the concept of economtc base theory can be apphed to regional economics Baste features and fundamental transformation practtces m regional mput-output analysts are sattsfactortly discussed and clearly tllustrated by various numertcal examples in Chapter 6 However. techniques to handle shortcommgs in data and organnatton are not discussed too acttvely. Also tt would have bcrn an advantage tf even a brief descrtptton of matrtx trrangulizatton and interrelated operattonal LP-practtces uere mcluded as well as mdtcattons to mputtoutput analgSIS as an mstrument to tdenttfy opttmal patterns of regional mvestmcnts There IS little doubt. that thts would have rounded off the presentatton. Actually. the attempt to assist readers to increase thenknowledge on modern operattonal devtces should not have been left entncly to the appended. fairly comprehenstvr btbItography on regtonal economtc analysts. It has become apparent almost evrrywhcre that there is a growmg concern wtth mcasurmg ecologtcal and envtronmental variables m order to atm at an opttmal allocatton of resources accordmg to soctally desnablc and articulated objective functions Readers mould have gamed very useful mstght into these regtotrally relevant problem-complextttes by a uell balanced mtroductron mto new techniques which are necessary to such a new approach The booh IS exclustvely based on tradtttonally approved methods and may gave the student the Impresston that the techmyues presented arc beyond crtttcism. The author runs the risk of causmg the student to believe there 15 httle need for tmprovmg and adJustmg the techmques Assummg that m the medtum- and long-run an mcrease m problem-solvmg capactty would yteld better results than a mere growth in rectpe-rccetvmg ahthtv. what at first seems to be most desnable at lower levels of the plannmg hrerarchy. tf some exphcttcly offered assistance would have increased m effecttve atd to practtonera to assess fruttful new approaches to operattonal problem-solving devices. Smce obtammg approprtatr data will stall be a major problem m regtonal studtes. the reader would have apprecrated tt tf the author. prmctpally embarkmg on manpower. financtal and orgamrattonal constramts. would have been more sprcttic about alternattves to cope wtth thts problem Gtvrn these restrtcttons. readers benefiting most from the vohtmc are in tvvo groups The first consists of members who are already generally famtltar wtth the hterature on rcgtonal sctencrs. hut sometimes may find themselves consuittng such a book for quack confirmatton of proccdurea m mmd and wtsh to obtnm haste mformatton on the most pressmg practical problems charactertzmg regtonal analyses m deve!opmg areas The much more numerous group comprtamg partrcul,trly rcgronal dcvelopmrnt field worksrs vvelcomes the suhstanttal tnstght mto practrcal problems ofconstructmf mputoutput tables and mcomr and productron accounts, the trrmmology of regtonal economtc studtea and most relevant components of “regtonal profiles”. Hence. the book can be recommended to all those to he tramed m regional plannmg or generally concerned wtth regtonal
310
Book reviews
analysis as. for mstance. admmlstrators. non-economists partlclpatmg m reglonal plan formulation and Implemcntat~on,nnddrvelopmentlicldworkers Tocrrtamextent.~ as outhned above, they can make full use of the whole “package”.
1V1(/1’1X!17 Imtfrllrc
RegIonal Analysis of KOSI Zone/Eastern Nepal. Workmg Method for RegIonal Planning m Nepal by D Weiss. D. P OJha. W Hlllebrand. H. D. Sauer. .I. Kenneweg, B Langen. C. Wilmasen. G. Thoma. German Development Institute. Berlm, and Centre for Economic Development and Admmlstratlon, Kathmandu [SOCII~-ELV~IPlm SCI 7, 3 13282 (1973)].
state level Such an approach to development plannmg. of mogt however. presupposes a thorough knowledge -. appropriate plannmg zones or regions. Ylanners are well advlsed. therefore. to exammc not onI) the defined terratorlul zone but also the larger envn-onment of which It 1s a part. If this IS done. the exlstmg level of domestlc economic mtegratlon can bc assessed by pomtmg out the number and nature of Imks between Tones and their ultimate impact on the region considered. So. time I> rcallj ripe to thmk ‘rcglonal’. and quite a number of models have been constructed to depict mtraand mterrcglonal mteractions and to guide policy-makers Given rudlmentarq data on certam territories only and lack of quahlied personnel to conduct a country-wide survey, workmg methods are urgently needed that ~111 yxld quick and sultablc Icsults for rcglonal planning purposes wlttlm the prc\nllmg exccutlve capaclt) In this connection, It IS referred to a study group of clght members which has undertaken quite an mterestmg survey on an Eastern zone of Nepal The opcratlonal approach chosen proves that through aellco-ordmated and geographlcallq concentrated efforts. a reglonal survey can qleld substantial result? for plannm, (7 at the regional and natlonal or state te>el. Wlthm a three month field survey. data were collected through qucstlonnalres which gave needed mformation for constructmg an Input-output table (40 x 41) The esaentlal prerequlsltes for doing so have been welt stated and particular emphasis has been placed on operational approacheb to data collecting and procesbmy. Moreover, the study group succeeded m estabhshmg regional accountmg for the KOSI Zone m Eastern Nepal. from which Nepalcse plannmg authorities are benefitmg greatI> The advantage of this approach. undoubtedly. 1s that the reader IS presented with a well orgamzed workmg method Thus. reader7 concerned with conductmg rcglonal surveys and constructmg input output tables may easllq follow that orgam7atlon The study provides an approach to practloner’s cconomlc analysis of predommantly agrarxm regions However. It should be noted that this study 1s not meant for those who are not adequately famlllnr with mputoutput technique and Ita hmltatlonb
Development plannmg m emergent nations must ldentlfy a number of features that characterxe the economy Expertence has shown that with a shaky or even non-eslstent statlstlcal basis. planners are much more concerned with estabhshmg the general framework for development eflorts at the natlonal level. mcludmg orgamzatlon of general statIstIcal services. than startmg at the grass roots of economx act]vity. Adrmttedly, estimates of natlonal variables have to be given special emphasis m view of the need to attract donors of development ald. In addltlon, planners were prImal-11) concerned with formulation of plan$. thus leaving the Implementatlon of the programme to the admmistratlve sector Recognlzed unsatisfactory results m development planning brought a growmg demand for more detallcd and reliable data. Furthermore. extension of modern admmlstratlve and pohtlcal control to rural arcas has resulted m an mcreasmg concern with sub-state or sub-ndtlonal features. There IS also good economx reasons for analqzmg absolute or comparatlve productton advantages of certam areas wlthm a nation. Such a studq could she\\ how to make full and ratlonal use of natural resources. or any other seal-cc. Immobile factors so that there will be a greater volume of mcome generatmg domestlc trade. These notea can serve ah a foundation for reglonallratlon of economic activltles as these are spelt out m macro-economlc development plans. Taking mto account that income m a region 1s determmed no less bq what IS gomg on beyond its borders than bq what happens wlthm It. It becomes clear that natlonal planning ought to be baxd on sohd regIona development efforts as formulated m Integrated and comprehensive regional plans It should be acknowledged as well that the “propensity to partxlpate” m development efforts among the people concerned IS bellcveJ to be strongly and posltlvely correlated with vlslble achle\ements at the local level. In addition. glvcn hmltcd manpower m plannmg and lmplcmentmg umts. a reglonalizatlon of dc\elopment efforts should surely be given preference to a more or less anonymous planmng machmery at the natlonal or
II/ sol~lultrd
D. K. DII
HI
E~~onomrc KCSW).CII.
L’rmwty
of Ihudm.
~V’ryrmi
Regional Economic Analysis for Practitioners. A. BFWAVIII. Pracger Special Studtes m International Economtcs and Development. Praeger, New York (1977) 102 pp. 3-1hp. Prtcc US13 50.
This publicatton represents the cumulattve rxpertence of the .tuthor 1~htlc Iccturtng on regional analysts These Iccturoa were gtven III connectton wtth the Internattonal Post-Graduate Courses m Comprehrnstvc Regtonal Development Plannmg sponsored by the L[nrted Nattons and conducted by ths Settlement Study Centre m Rehovot Addtttonally. Mr Bendavtd was a regtonal economtst wtth t.1N ,IDP and was prtmartly concerned with staff trammg m rcgtonal proJccts. The obtectivc of the book 1s to asstst rcgtonal development held aorkers utth Itttle background knowledge of development cconomtcs and spattal analysts in such a v\ay that they can understand dcstgn. and Integrate regronal proJects Into ovcrah development et??nt~ The text presents a ‘package program’ K tth a break-down by self contamed destgned chapters Conscqucntly. the reader can acquire very valuable mformatton whtlr proccedmg gradually or by subjccttvcfy uclectmg the most relevant sections However, readers already acquamtrd with the hteraturc on regtonal studtrs will hardly apprcctatc the absence of dtscusstona on theorrcs of regronal cconomtc development and plannmg models Thrrc IS no attempt to solve problems of how to improve extsttng techntques 01 regtonal economtc analyses Thts means that the book 1s not too far reachmg an analysts at all, although the author clearly pomts out that rt IS hts mtentton “‘to present stmplttied means of performing the more common and most widely useful deacrtpttvr methods of regtonvl economic analysts” Vartous simple numertcal cxamplrs sktllfully present the essence of each techmyue. and the cxerctses appended to each chapter are meant to sttmulate reader mvolvemsnt. The first chapter mtroduccs thmkmg regional, wtthm the setting of nattonaf aggregate vart‘rbles and ohJect1L.c functtons The followmg chapter deals with the mrttal phase of the plannmg process tphasc of dtagnosts); namely. collecttng and collating stattsttcal data m order to ohtatn “regtonal protiles m the form of a stattsttcal compendtum” The chapter concludes wtth some suggesttons on ho\\ practtoners should organizr data Chapter 3 shoas ho\\ social accountmg should he appltrd to regtons Non-economtsts wtll ccrtamly benefit from the conceptual scheme for rrgtonal mcome computatton and the constructton of rcgtonul mcomc and product accounts In Chapter 1 there is a dtscussion of fundamental aspects of How. In&age analyses and balance-of-payments studtes Furthermore. dtdactttally well presented informatton 1s provtded on practtcal problems of constructmg mputtoutput tables. The subsequent chapter IS dedtcated to commonly used mtx-undshare analyses. However, dtscussron on rogtonally relevant cocffictcnts IS confined to the locatton coeflictent only. thus neglecting not only coeftictents of localtzatton. specialtzatron and shaft analysts. but also some mdrcattons as to then apectfic defictenctes to reflect regtonal drspartttes and
REVIEWS
properttes. Chapter 5 refers to Ttebout’s work m the early 1960s and parttcularly shows how the concept of economtc base theory can be apphed to regional economics Baste features and fundamental transformation practtces m regional mput-output analysts are sattsfactortly discussed and clearly tllustrated by various numertcal examples in Chapter 6 However. techniques to handle shortcommgs in data and organnatton are not discussed too acttvely. Also tt would have bcrn an advantage tf even a brief descrtptton of matrtx trrangulizatton and interrelated operattonal LP-practtces uere mcluded as well as mdtcattons to mputtoutput analgSIS as an mstrument to tdenttfy opttmal patterns of regional mvestmcnts There IS little doubt. that thts would have rounded off the presentatton. Actually. the attempt to assist readers to increase thenknowledge on modern operattonal devtces should not have been left entncly to the appended. fairly comprehenstvr btbItography on regtonal economtc analysts. It has become apparent almost evrrywhcre that there is a growmg concern wtth mcasurmg ecologtcal and envtronmental variables m order to atm at an opttmal allocatton of resources accordmg to soctally desnablc and articulated objective functions Readers mould have gamed very useful mstght into these regtotrally relevant problem-complextttes by a uell balanced mtroductron mto new techniques which are necessary to such a new approach The booh IS exclustvely based on tradtttonally approved methods and may gave the student the Impresston that the techmyues presented arc beyond crtttcism. The author runs the risk of causmg the student to believe there 15 httle need for tmprovmg and adJustmg the techmques Assummg that m the medtum- and long-run an mcrease m problem-solvmg capactty would yteld better results than a mere growth in rectpe-rccetvmg ahthtv. what at first seems to be most desnable at lower levels of the plannmg hrerarchy. tf some exphcttcly offered assistance would have increased m effecttve atd to practtonera to assess fruttful new approaches to operattonal problem-solving devices. Smce obtammg approprtatr data will stall be a major problem m regtonal studtes. the reader would have apprecrated tt tf the author. prmctpally embarkmg on manpower. financtal and orgamrattonal constramts. would have been more sprcttic about alternattves to cope wtth thts problem Gtvrn these restrtcttons. readers benefiting most from the vohtmc are in tvvo groups The first consists of members who are already generally famtltar wtth the hterature on rcgtonal sctencrs. hut sometimes may find themselves consuittng such a book for quack confirmatton of proccdurea m mmd and wtsh to obtnm haste mformatton on the most pressmg practical problems charactertzmg regtonal analyses m deve!opmg areas The much more numerous group comprtamg partrcul,trly rcgronal dcvelopmrnt field worksrs vvelcomes the suhstanttal tnstght mto practrcal problems ofconstructmf mputoutput tables and mcomr and productron accounts, the trrmmology of regtonal economtc studtea and most relevant components of “regtonal profiles”. Hence. the book can be recommended to all those to he tramed m regional plannmg or generally concerned wtth regtonal
310
Book reviews
analysis as. for mstance. admmlstrators. non-economists partlclpatmg m reglonal plan formulation and Implemcntat~on,nnddrvelopmentlicldworkers Tocrrtamextent.~ as outhned above, they can make full use of the whole “package”.
1V1(/1’1X!17 Imtfrllrc
RegIonal Analysis of KOSI Zone/Eastern Nepal. Workmg Method for RegIonal Planning m Nepal by D Weiss. D. P OJha. W Hlllebrand. H. D. Sauer. .I. Kenneweg, B Langen. C. Wilmasen. G. Thoma. German Development Institute. Berlm, and Centre for Economic Development and Admmlstratlon, Kathmandu [SOCII~-ELV~IPlm SCI 7, 3 13282 (1973)].
state level Such an approach to development plannmg. of mogt however. presupposes a thorough knowledge -. appropriate plannmg zones or regions. Ylanners are well advlsed. therefore. to exammc not onI) the defined terratorlul zone but also the larger envn-onment of which It 1s a part. If this IS done. the exlstmg level of domestlc economic mtegratlon can bc assessed by pomtmg out the number and nature of Imks between Tones and their ultimate impact on the region considered. So. time I> rcallj ripe to thmk ‘rcglonal’. and quite a number of models have been constructed to depict mtraand mterrcglonal mteractions and to guide policy-makers Given rudlmentarq data on certam territories only and lack of quahlied personnel to conduct a country-wide survey, workmg methods are urgently needed that ~111 yxld quick and sultablc Icsults for rcglonal planning purposes wlttlm the prc\nllmg exccutlve capaclt) In this connection, It IS referred to a study group of clght members which has undertaken quite an mterestmg survey on an Eastern zone of Nepal The opcratlonal approach chosen proves that through aellco-ordmated and geographlcallq concentrated efforts. a reglonal survey can qleld substantial result? for plannm, (7 at the regional and natlonal or state te>el. Wlthm a three month field survey. data were collected through qucstlonnalres which gave needed mformation for constructmg an Input-output table (40 x 41) The esaentlal prerequlsltes for doing so have been welt stated and particular emphasis has been placed on operational approacheb to data collecting and procesbmy. Moreover, the study group succeeded m estabhshmg regional accountmg for the KOSI Zone m Eastern Nepal. from which Nepalcse plannmg authorities are benefitmg greatI> The advantage of this approach. undoubtedly. 1s that the reader IS presented with a well orgamzed workmg method Thus. reader7 concerned with conductmg rcglonal surveys and constructmg input output tables may easllq follow that orgam7atlon The study provides an approach to practloner’s cconomlc analysis of predommantly agrarxm regions However. It should be noted that this study 1s not meant for those who are not adequately famlllnr with mputoutput technique and Ita hmltatlonb
Development plannmg m emergent nations must ldentlfy a number of features that characterxe the economy Expertence has shown that with a shaky or even non-eslstent statlstlcal basis. planners are much more concerned with estabhshmg the general framework for development eflorts at the natlonal level. mcludmg orgamzatlon of general statIstIcal services. than startmg at the grass roots of economx act]vity. Adrmttedly, estimates of natlonal variables have to be given special emphasis m view of the need to attract donors of development ald. In addltlon, planners were prImal-11) concerned with formulation of plan$. thus leaving the Implementatlon of the programme to the admmistratlve sector Recognlzed unsatisfactory results m development planning brought a growmg demand for more detallcd and reliable data. Furthermore. extension of modern admmlstratlve and pohtlcal control to rural arcas has resulted m an mcreasmg concern with sub-state or sub-ndtlonal features. There IS also good economx reasons for analqzmg absolute or comparatlve productton advantages of certam areas wlthm a nation. Such a studq could she\\ how to make full and ratlonal use of natural resources. or any other seal-cc. Immobile factors so that there will be a greater volume of mcome generatmg domestlc trade. These notea can serve ah a foundation for reglonallratlon of economic activltles as these are spelt out m macro-economlc development plans. Taking mto account that income m a region 1s determmed no less bq what IS gomg on beyond its borders than bq what happens wlthm It. It becomes clear that natlonal planning ought to be baxd on sohd regIona development efforts as formulated m Integrated and comprehensive regional plans It should be acknowledged as well that the “propensity to partxlpate” m development efforts among the people concerned IS bellcveJ to be strongly and posltlvely correlated with vlslble achle\ements at the local level. In addition. glvcn hmltcd manpower m plannmg and lmplcmentmg umts. a reglonalizatlon of dc\elopment efforts should surely be given preference to a more or less anonymous planmng machmery at the natlonal or
II/ sol~lultrd
D. K. DII
HI
E~~onomrc KCSW).CII.
L’rmwty
of Ihudm.
~V’ryrmi