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A People's Bank publication
 
 
 

in ne இ ܠ ܐ ܀

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FONOM REVIEW
Wolшпе I
Published by The People's Research Department 48, Park Street, Colombo 2, SRI LANKA
RayїfД Gду;
Scienze Today
K. G. Agraria
NEXT ISS
 

Number 4 July Iց75
CONTENTS
TEATURES
25 Frantz Fanon -- On the National
Middle Class
28 Is India a test-house for biological
;טיlarfirי
I. Psychology or Adaptology?
COWER STORY MILK - Necessity and Self Sufficiency
COLUMNS
Diary of Events
15. The Economy
16 Banking and Finance
I 8 Industry
19 Foreign News Review
zz. Coğrılırılıq) dlı ities
2.4 Shipping
JE
pulation and resources: precept and practice in Sri
kill and the Third World.
e marketing of tea.
Flobal Reach", carried over from this issue due to lack SPACC.
over symbolises the present state of the vital nutrient in the y and its demand. The cover artist (who wishes to reritain Htttl L LHLLL T LLL LLTLLlL LLTT LLTLCLLLLLLL T TCLCHeT LLL as exhibited several tirnes locally ind abroad,

Page 4
June
보
I D
I
I
DARY O
ESCAP, Ad Hoc Intergovernmental Consultations on raw materials and development opened in Bangkok,
Bank of France reduced their official discount rate from Io to 9.5%. The 4th reduction this year.
Suez Canal was officially reopened to international traffic.
Bank of Japan reduced its discount rate from 8.5% to 8%.
Group of 24 of the IMF met i 1 Pri...
OPEC conference in Liber will agreed to put off to October the problem of adjusting oil prices from dollars to a system based on IMF Special Drawing Rights and any straight upward price adjustment to make good past inflation.
Economic Planning Agency announced that Japan for the first time since World War II recordeel a o.6% decline in GNP for 1974. In the Ist quarter of 1975, GNP fell by c.7%.
World Bank Development Committee decided to open a 'third window' for lending funds to the developing countries on a moderate ratic of intcrcist and for “micidiu II” duration. It will operatic from Ist July.
Two more countries-Wenezuela and Algeria-formally signed thic agreement for cstablishing an association of iron-ore exporting countries. The association is expected to come into existence by the middle of August.
Agreement signed by which the Government of Japan will provide the Government of Sri Lanka a loan of 45com. yen (approx. US $ I5 m.) for development. This is the ot loan in ful Filment of the pledge made by Japan at the Aid Consortium Meeting.

F EVENTS
IS Japan announced in third series of Anti-ric Celt55ion Time:::::L5L1Fc5 to 5 timulate business activity and encourage cconomic recovery as the previous two programınıcs crı farcel'in March and February had proved insufficient to pull the national economy out of the current recession.
I9 International Wölfel’5 Ycar Carl
ference opened in Mexico.
A mutual declaration to operate the Asian Clearing Union was signed at a meeting held in Iran by Sri Lanka, India, Iran, Pakistan, Barlgladesh and Nepal to link the trading accounts of these nations. The Clearing Union will essentially be a banking facility which makes for quicker and easier accounting to promote trade in their own currencies with the last reserves of foreign exchange.
25 ILO wound up its 60th session at Geneva with a declaration restressing equal rights for women workers who now Ilake up a third of the World's labout force. Wollen still are paid much less than men and run a higher risk of losing their jobs in times of recession.
2.5 Mozambique became the world's newest nation closing nearly five centuries of rule by Africa's oldest colonial power, Portugal.
구 Two agreements under which Sri Lanka will receive Rs. 52,000,oco maintenance and development aid as outright grants from Britain was signed in Colombo,
후7 U.S. House of Representatives voted against contribution of funds ta' the ILO. The: de:ision Et delete a Sı:4rtı, piyment froit'ı U.S. Incrimbership in the ILO came as a result of opposition to the admission of the Palestine Liberation Organisation (PLO) als an observer at the ILO.
EL CONOMIC PEYIBEYT, JULY I 5975

Page 5
SYLY uJTTTS LLLLL LLLL uHCCJS JSL S S LTSLLLLL S LLLCLCLTLLLLS
ipbold all creat rarer in the hi'n i werie.”
SLLLLLLSY GLGGLLT LLL LLS LLLL LCCT LLH LLJLLL LLLLLL LS L TuBS CLHGGLCL LT CJL S LJu uLCCCLSLCH LGG GGLL LLS TLGGS LCCGGL S TT G GGGL LGCC S TS CTT TC CC0S T T LTuu LLLLL The exception if rairier. Mile is the only food half contains a , S0LLLL HLGGLS LGG LLLLLL J LLLLLLuuu LTL LLLLL SYS LT S0S TCCCL L TT CH
HSSLLLL LCLLLL LLLLL HSH J J LLLLLLLT LLLLLL LLLLL uuuLCLCHTCLL LL JCLGGT S TGLGGD S TCLL S LLLS TLLLS LLLLuCT S LLLTTT L gry "Thc Price of Free World Victory” i May 8, 19.
M LK: Scarcity é
Public concern over availability of milik and milik products is a recurrent theme. A high level committee on nutrition has been appointed to investigate and report to the cabinet on a Food ind Nutrition Policy for Sri Lanka. The National Science Council had a panel examining this matter for nearly 2 years and has forwarded its report to the 6 overnment. Recently the Co-operative Wholesale Consumers' Union, Colombo North, alleged that the packed milk products of the National Milk Board was in short supply at co-operatives bc.cause the Milk Board was not supplying adcquate stocks.
During the last 7 or 8 years the milk supply to consumers specially in Colombo and its suburbs and more generally in the heavily populated areas of the Western Province and other principal urban areas in the country has fallen far short of minimum requirements.
In Colombo the consumer is almost totally dependent on the Milk Board and the few imports of special brands of infant milik food, (when the Milk Board was established in 1954 all dairies within the Colombo Municipal
ce DMC REVIEW, UL 1975
Council limits were the Council). In ot people have to brands of milk, t of the MIk Board: ing agencies. In the Milk Board hi. booths. But duet of these no milk p available several The supply posit Table II.
FRESH N
District Population .. Town Population .. Pasteurised Milk pts/
sterilised Milk pts/dy
TD Adr
Voiré:
Pasteuriscd Enill refrigeration and 48 hours is restric clientele on orde:
برای ایرانی - یاقی + - - - |
 
 
 

d herefra J hey
Mahabhar til
|ғing mғғdi-profғiп, kiirg af 14'ell bala Teed if r frow other foods.
· of it. That if iy!
refer'.
Benjamin Spock
fase 'órdad dá e Aye Tire iiir Ir addresrir
. . . . . . . . . . .
- Self Sufficiency
: closed by order of her areas wherever hurchase marketed ley are dependent ind the fewimport
the major towns is established milk shortages in many roduct is generally lays in the week. ion is shown in
cxcept the small amounts available at milk booth counters. Sterilised nilk appears to be the bettcr product for our co II dition 5. Sicc it is accessible to a larger cross-section of consumers because it needs no refrigeration and has a shelf-life of 6 months. But its production is restricted on account of the shortage of milk and the exclusive nature of the pasteurised inilik clientele. Products such as Yoghurt, milk pops and ice-cream have not
TABLE I ILR PRODUCTS SUPPLY OF THE NATIONAL
MILIK BOARD
Location of Dairy Factories Year Colombo Kandy Kuruine Fala Galle |- I,272,00- 769, осо. 36,685 Πατ. CEO ,85 607,000 ב197 ܧ ܧ . *。-· 1972 61, coo 8+55 8, so I
I973 .ם,6יןEG C T,0') 197과 1. - - TT2 Hւ9ճE 13200 - I975 3. T - = = T"과 5,900 5 Co - rtment of Census and Statistics "Pocket Book. 73' and inistration Reports of Milk Board,
because it needs been freely available since 1973.
is shelf-life is only ed to an exclusive is through agents
Lakspray, Witamilk, Vitamalt and condensed milk are restricted to Householders' Cards and quotas only
- ܐ - ܒ -- ܒ -- ܒ -
3.

Page 6
through co-operatives, but the quota supplicd is less than customer requirements.
The dried milk shortfall is aggritwatcd because of snags in the distribution system. In certain milik Producing rural areas milk foods remain on the shelves for long periods and move only slowly, if at all. The excess supply goes back to urban areas through traders and visitors. Of the other products 95,ooo | lbs. of Wita Milk (half cream) is packed and distributed every month. Of this, 85,500 lbs, go to Milk Feeding Centres of local authoritics and 9,500 lbs. are given to co-opcratives in Colombo. The supply of Vitamalt is Iz, coolbs. per month issued through co-operatives. The supply of condensed milk
Artificial Foods as Baby Kill
"Third World babies are dying because their Irothers bottle-feed them with Western style infant Imilk. Many that do not die are drawn into a vicious cycle of malnutrition and disease that will leave thern physically and intellectually stunted for life.
"The frightening fact is that this suffering is avoidable. The remedy is available to all but the small minority of mothers who cannot breast feed. Because mothers' milk is acceptcd by all to be the best food for any baby under six months.
Although even the baby food industry agrees that this is correct, morc ' Third World mothers arc turning to artificial foods during the first few months of their babies' lives. In the squalor and poverty of the new citics of Africa, Asia and Latin America the decision is often fatal.
"The baby food industry stands accused of promoting their products in communities which cannot use them properly; of using advertising, sales girls dressed up in nurses uniforms, give-away samples and free gift gimmicks that persuade mothers to give up breastfeeding . . .
is I.4.4 million ti quota of 2 tins f Card. In the cist there is also the ad to hotels, resthou:
restaurants and trade,
The imported b
are mul ikc Lactogen, P Gate, Lita, Oste But here again bict of this imported gadw crsic terms of times there is a ru specially on full they too become quently, since last too have been p distribution syster
". . . Where 1. but squalor, thc Etificial Sulistituti is in reality a choic and disease'.
Extrard froy her Killer' WAR ON
There is now Action Group. Organisation is the issue of the motion of artifici: bottle feeding, a of the expansio. nals, Particularly betwcel the indu societies and the world. It specific on the role of tl and thic collabora multinationals : and Incidical es promoting bott
The airls of the
To publicise nature of the trem feeding in the T the West; and t ions in the coln and distribution
Inilks,
AeAeAeAeLeLeeLeLeeLeALAeAeAeAeLALeLeeLeLeAeLALALALeLeLeLeAeAeAeLeAeAeAeLeAeeAeAeA AeAeeAeAekAeAMMAeeLeMeMeeAe eAeA

L5, 4, Tomlith On, a a Householders" of Candlerı5ed tı ilk itional distribution es, office cantecnos, the confection cry
ands of Infant Milk inational products largon, Cow and rmilk and SMA. ause of the scarcity
milik due to 3 : OLLT
trade at Warious 1 on these products, fiream brands, and navailable. Conseyear these brands it on a controlled som Hollsholders"
FFFFFF"#FFFFF**
eS
re is no choice
choice of an for reast milk cbetween health
ty rary, The Baby
WANT
a Baby Foods This British rampaigning on commercial proIl baby milks and 5 i cisc study of Illultinatiothe interaction Strialisecl "weste. Il - underdeveloped tally concentrates le multinationals Ein Ebert Will the ind guvernment tablishinlelts in le feeding.
2 campaign a re
the political l towards buttle Third World and initiate restrictnercial promotion of artificial baby
Cards and the birth and age identification through Birth Certificates and other documents. These brands are intended for weaned babics under one ycar of age. In 1974 infants under I year in the population were 340,000. Imports of infant milk powder in
1974 were 5.48 million lbs. at a cost of
Rs. 26 million. This year imports hay Ecci increased to 6 million lbs. at a cost of Rs. 52 millions.
The preferential demand for imported and packed milk products is another of these food habits inprinted on us by multinationals from colonial times (see box). Fortunately some middle class and low income group mothers and those in rural Testas Still bredst-Fi: tilltir babies. Mcdical opinion firmly supports this, as best for the baby and good for the Timother. Morc and IT CITE: urban mothers scem today troo Eo prefer tö breast-feed rither thill ruin the risk of milk shortages. Shortagcs too are therefore НепсHcial in one way in that even if it has not stimulated local production, at least breastfeeding has indirectly promoted inport substitution. To popularisc breast-feeding of infants as long as possible appears therefore to be eminently desirable,
Protein Calorie Malnutrition
The Medical Research Institute of Sri Lanka has repeatedly warned of the increasing incidence of first degree protein-caloric malnutrition specially among the most sensitive age groups in the population. Apart from syrup toms of emaciation and retarded growth in children, studics have shown the great danger of mental retardation due to this (see Table III.) The most sensitive age group is o -6 years followed by the next growth phase up to 15 or 6 years when the body frame develops, Milk is the only food which provides calcium and phospherous in the correct ratio for bone formation in An easily assimilable form, together with essential trace elements and Witamin D. With its protein content including vital amino acids and other qualities like energy value, and diges tibility, it is a complete food.
costoric REVIEW, JULY 1975.

Page 7
TABLE TI
SEWERITY OF PROTEIN CALORIE MALNUTRT
Age in Months)
II 로 I St.T.Degree ..., . 蒿 碧 ind Degree .. 14 . I 8 ... ze . . . . . . Bird Elegree .. 로 Normillringc .. IÉ: -
Sarre, Nutrition Department, Medical Research Institute,
When Malnutrition
LTGk kLkkLkT TT LLLLLLLLuTTL LmCLTLLGL S CCCC uCCLCLLuGG
ஆர்rே க்ர்ே : ரிசரின்கா i : சா.
I før
CLmkLLL T LLLTGTLTTumLCGS S LTuT TT LCHJuTLTL HHH LGGG LGL
J. Crayioto and E.R. de Licardie investigated the effect of deprivation mi, Mexic:ili children's Ephrawiour and ability to learn. They Conluded: "The data lead to : prediction that the shorter children, whose height is a reflection of earlier and sometimes continuing malnutrition, risk school failure stemming from an inability to master primary school subjects.'
M. Hertzig and her colleagues LLLLaLLLL S aLLLL S S LLLuLu S LLLa LLLLLLL horne and patental backgrounds when examining Jamaican children. All were agcd bctween seven and eleven Yers, from the Sanc ethnic group and similar low income homes, so that a long standing marginal food deficiency Finight be expected, Nadditionally some of the boys, before their second birthday, had suffered Fro||LI SLICH 5te War II litlurition1 that they had to gg' into hospital. The IQ's of these boys were lower İllirl tHıÜst Of tHıttir brüller5 yılıcı had not suffered so severely from malnutrition and were Illich liter thin those of boys of the sang age from other households. Behavia ur was poor, too, in the rialnourished groups: thicir telachers reported that they were less attentive and -- Timore casily disLLLLLLL LLLL LLLLLS LLLL LLLLLLLLS However, it was difficult to be sure that all the changes observed were due to early deficiency. To un ravel Such ingles, investigators
ECORrik II: REW LEV, JLITY 1971
HAVE ILI 5ed at illa effects of sing Severe food de Biafra and Bangl: airlifts which under-sized and many dital and failed to reproduc R. J. C. Stewar School of Hygier Medicing and his induced a Inilder trition by feeding: although adequate dilcing adults l: degrees of def growth, pregnant Опе colony of Tiilintained On th generations, equal y cairs in hul Iman ti spring of the dep very low average about 28 per cent for their gestation before weaning, grow slowly, and are short-legged AI They differ from being Intre active are only a day or during the sucklit le:Lyo. Elle: lost Il for longer periods
The Lilderlour IIlirkedly disturbec only arous: mild well-fed controls. i II.1 O tit 5:TETI SLTE: very excited. In

TION (%)
ಕ್ಲಿà: Еi; 64 효후 串
■ ■
Sri Till
About a million children in Sri Lanka are said to be suffering from various degrees of protein-calorie malnutrition. The incidence is more acute among the urban poor. In a large number of these, the nutritional deficiencies cil. Ele traced to ргеgIlirit Liothers ill thereafter to lactating mothers and through to the rest of childhood. For over 15 years
Handicaps Children
ஆfrg : deficie die tidier.
ls to study the Le cleficiellcit:5. privation (as in adesh) produced were apathetic, iry underweight; the survivors
t
of the London le ind Tropical Colleagles 畿 for of illurats a diet which, : for non-repro2d to varying iciency during y and lactation. rats has been is ration for IG | tri allt gic its. The FFrivel rats have birth weights: are very small al age; I Liany die: th: SuryiyoTS II, wherı kadult, ld underweight. 1 Elor|Thail Tats; even when they
ld; andם נt"היt Լg period, they lic often ind th:1Il is L15 Lial.
ished rāts are by noises that curiosity in the If subjected to is, they become Eestis Eisul
discriminatioill, 35 per cent fail to solve the problems and those that do require longer training than the well-fed rats, who all Pas 5.
They are very easily distracted işi ild oftenlı — re:Euse to [[Ti:ı ke: a choice Cor even tro exAtInime the problems. After several failures some becomic 5g discouraged and unco-opcrative that the tests have to be abandoned. In contrast-well-fed-animals, cyan after numerous failures, always appeared to be trying. Many of the efects observed among deprived children can therefore be produced in animals, concluded R. J. C. Stewart,

Page 8
CARE skim med milik Powder has been distributed to these groups in addition to fresh milk at the Ministry of Health clinics under the National Milk Schemic. In 1973 about 1.9 million llis, of skirilmed mill: powdler was distributed through I 241 centres to 93,coo beneficiaries, The total number of centres uncler thic National Milk Scheme has been 26 go. In 1971 a Weaning Food Programme was introduced by CARF as an additional programme through these centres bc.cause of thc increasing difficulty to import skirin Fried milik powder. About 200,0cc benefitted from the "Wheat-Soyablend supplementary food”. This year thic supplementary food program Te is bicing extended to 400,000 pre-school children and In others with a targct of 5 co,000 by 1977.
The Ministry of Health together with CARE arc slow distributing "Thriposha', a fortified wheat-sorghum flour biscuit. UNICEF is coiltributing US $ 2.7 million for this programme including the cost of setting up a plant in Sri Lanka to Produce this sitt Pplementary food with local ingredients. Thriposht. will finally replace the imported supplementary food.
The immensity of the problem is that about 45 per cent of the population comprise the sensitive age groups, The per capita milk Collsumption was z oz5. liquid milk cquivalent (of milik products conVerted) or z grams of milk protein in 1963 on the basis of the Consumer Finances Survey of the Central Bank. Of this I oz. was imported. The National Milk Production therl wits 6oC, GGC, Points per day. By 197o the
per Capita Consurt, to 1.6 օZs of liզu of which roughly te Comitcm lcctor Economic Survey of Census and St: 1963 to 197 o thc dLLCtican Hac declin pints a day, the po having increased to 12.5 million. foods scen gross in terms of Prodi COMISLILIIPEI DI 1.
No doubt this tion his Eccl. fuit: the fact that acco Economic Survey Per cent of the | är inici Ille less month and 40 pe zcg. It is Ilgt : that specially in th large numbers to sell the milk quo olders' Ration ( fod gyd, which woul, feed their familie: Lirë: Of course the tions of the col1
Tilblic III ilust important milk pt milk, has beetlike Leyclwith subsidio relit this it? We have this sector durin economic climate
Requirements
Whittheil Steri requirements? the MRI and assessed Sri Lall
TABLE III
INCOM E ANTO PRICES
TD Per capita chinges in real in come
(卡)─°,-,... --- Price inflation (+)-(a) Index of Price Increase-(E)
All Infant Milk- (c) T Laksprity LC Condensed Milk Pasterised Milk
carrer:
I II 1972
-- -그 구
2')
1 : TE
7=ךTI
(n) Central Bank, Annual Reports.
(b) Department of Controller of Imports an
Milk Board,
(c) The prices have been kept constant with
Politic Price in Creascis,

tion had dropped id, Timilik cquivalent alf was the imporing to the Socioof the Department istic3. TL155 fro 11 National Milk prod by about 540,oog ulation mcan while rom Io. 58 Irillion The supply of milik y inadequate both cts and per capita
insatisfactory situ Alher aggravated by iding to the Socio
of тото 5 опс 8о opulation received than Rs. 400 per * Cent less than R8. urprising therefore c. Colombo district, the impoverished as on their Hillsards to buy bully go a long way to . The beneficiaries
more afflult SCC1ւInity.
tess thalt the lil St oduct, namely infant it at a constant price 2s. Thus it is appalmanaged to cushion g thic adwersic world
to be collit milimlum The nutritionists of praediitricials hawe za's Per capital milk
---
1973 19"|
—pಛಿ। --마
T# *8.4
o o I 후 1955 I 2-folio
ISIS
the National
subgiglies lc5
--ms
requirements (all products converted) to be 5.5 ozs. of standard liquid milk. l'hic distribution1 however, hücre should be weighted in favour of the sensitive age groups. For instance, a baby under one year of age would require on an average 26 ozs. of liquid milk a day. As the intake of solid foods increases thercifter a minimum of 10 ozs, or half Point of liquid milik is required every day. In practice this amount may be reduced a little as the child grows older provided other protein foods such as eggs, Fish ind meat are consumed. It milst be ICC(g- mised of ECLIrSc tiut thac MRI reCJI Tilmendations are only broad guide lines in relation to other sources of prótein and caloric nutrition in Sri Linki "I'liege areshown in Table IV Ởn the next Päge.
The in take will no doubt vary according to food habits and prefer cacus, income groups ethnic and religious groups and according to urban, rural and estate groups in the population.
Table IW shows that Wien the general picture of consumption in the country is reduced to per capita terms, Sri Lanka's consumption patterm is commendable, specially if it is contasted with other less developed Countries in Asia and Africa Wahl Erc:: basic food needs are more acute for millions of people,
In Sri Lanka the bulk of protein intake is through fish and food of vegetable origin including the chief die E CF cercials. It is well known that: pulses and dry fish have been important sources of proteins in rural areas with more fresh fish replacing dry fish in aircas closer to the coastline. The importance of fish in the diet of the people is shown in the SocioEconomic Survey 1969/7o. Considering the lowest income group of households with a monthly expenditure under Rs. zogs-, thc relatively high expenditure of Rs. 12.II is spent on fish of which Rs. 6.17 is on dry fish. In the comparable urban sector household, Rs. 16.17 is spent on fish while the larger portion i.e. Rs. 12.2.1 is spent on fresh fish. Dry fish generally and fresh fish in coastal towns have also had a stabilising effect on animal food prices. Beef consumption has shown a tendency to increase in
ECONOMIC FELVIEW, TITLT 1975

Page 9
T'''. IBLE. I W
PROTEIN NUTRITION IN SRI LANK
Protein grLins per Head per day
^Juri- Socio- M R, ltional Economic Dietary Require Survey Survey
rents 1970 All I7- (a) I MRI 1972, Island
All Istant Frii
Mik 1ish to. 7.Շ Eggs I. 그 . M: . 모-2 I.T c).ff; Total Animal Protein 9. 10.3. Sl Circials - 후r-를 "- LEIlut 호,: f OH. W.ಆನ್ಡ: Origin (Wegs, fruits, pulses, continents, etc.) . II. 1후 7,8 Total Protein of Wege
title Origin 다. -4 -대- Total Proteinig ճգ.o 3.7 6.-- Total Calries 주후 구 후 6 T
LLS L LLLL LL LLLC Cu uu LLLL L LLLLLL K LLLLLL L LaS LLaaLS
LL L aaaaLLL a LLLLLaaa KKK u EEL L L LS LL aa LLL 17, due to low level of certals and therefore depressed ave a relatively high consultiplin Frank fish and cereals.
է (ե)
KL G LLLLLL L L LLLLCCCL KLLTL0J LL L aaaaaLLL LaS LLLLLL
munit. Upathgaini had it relatively high milk consumptiot Raingani had a relatively high level of tank fish consump
c) Coincliningints oririi Etel.
LaLaaL LLLLLaL LLLLLa LaaLaL HLHHLH L HHaaL K u LuaaS spread even in rural areas becaust of the periodic shortage of dry fish at cheaper prices, the relative high price of fresh fish, the permanent shortage of pulses in recent times and because | other Luc. Es are: beyond the means IF the Inajority of people. For instance the Socio-Economic Survey IgG) a shows that no poultry and pork are consulted in the lirban sector in the income group of under Rs. 1 so- a month and the minimal expenditure in the comparable group in the rural sector arises only because of traditional poultry and pig raising in some of the areas surveyed, Coconut has always been an important but ulrecognised source of protein. During 1973 and 1974 consumption of Coconuts was reduced due to the poor crop and high price. All these add up to the nutrition deliciency problens in the country.
Although the overall consumption picture appears not unsatisfactory, shortages and high prices always hit the middle and low income groups in the population which comprisc So, whose income is under Rs. 400permanth. The consumption pattern on the basis of income in 1969 is shown in Table W.
그aptimr w, 1m
The triation let, els between Li shown in Tille page 9). The sig. specific items at İflic writtle are shownı
It is importin in the low incom the population wi
A yeage sTick Pro
Meill
(I ) Hicef (2) Mutton and
Cather IIleil. Il (3) Poultry (4) Tց:
Mill: Pruducts
渴 FrcsHM, [i Ll: Հյ Mill: Pavirt: 骰 Infurt Mik
(4) Condensed (5) Other Milk

SSSMSSSLSSSSSSiSDD DSLL
MR. I. Flod Balance Dietary Shers Lept.
Survey of Census & g7: (b) Siltistics I7+ (Previsional
.ே T-8
구 다. f ...: C-9 ஒ: :#ւն I
4.86
7.6 գ.tt (e)
... 8
로 후T『
Aria and kրելոiէart:. 39; III15. Tid - cilities rigo. Finlali Inn. El
gana Willige and Balk:- Elevel at . I gms. End til.
Erasmium in the constiinption rban and rural are WI (appearing on hificant vi:L (rial tio for the Sırtıc Heyel of in Täle WI.
- to recognise that grouP Fr 8c% of hirucomes under Ris.
400 a month, up to 70% of total monthly expenditure is on food,
While 36%, is on cereals, notwith
standing the frce ration of rice and the cheit P price of Flour. The rela tively low expenditure on till is a significant consideration in the light of the prevailing protein-calorie malnutrition problem in the Colintry.
Fresh Mill.
What is the pattern of Production, supply and distribution of fresh milk?
There is no homogenous Pilt:Tr. in the country. Besides, ás shown earlier, the national production has declincd from Goc, Oodi pints a day to 540,0co pints between the Consumer Finance Survey, 1563 of the Central Balık and the Socio Economic Survey of 1970 of the Department of Census and Statistics, while the population had ir circa sed by fleirly z million. This population component contains the sensitive group of children. It is necessary therefore to focus atten tion on the production pattern, causes of decline and the effect of the setting up of the Mill. Board.
Before the National Milk Board errnin:Lited milik production in Colom bo City in the middle 1950's, it used to be fashionable for the Colombo clite and a section of the middle class to keep a cow at home. The term Flatton Cow arose fill the practice of moving UWS in milk with their calves whe lactation contrilenced to Colombo
TABLE. W."
Expenditure per Household so one Month on all Liveiucts by Income Groups (Socio-Economic Stiгуey т969-7е)
(All Island)
Lirider F5, R-5. Ikki. Ris. Rs. Risi.
T°°/- Ic9/T49 l 5o/Ig9 zog/59g 6cc/7gg Io-59 ev.
LÉ g:87 I-57 1후 3. Park LIII
- ಛಿ: . 47
Littlէ: է, քf: D.E. I-7 3.
... I 구 구다. Ital 5. is 13:54
TE 二、 8. 5.
o:37 TE (구 Iճ.55 c.f. 7. 93.ם I. 후-II בפיל 구.구
C.35 L=77 T. TT Mill: , . I 학. 후 Prillit. .P.ליים C. : 1. C.I. Total is as . . 9 T75, 그63

Page 10
THE MILK BoA
The Milk Bird his becil in operation since 1957. The Milk Board Act Providcs for the pronotion of milik production, but the Boardos activitic5 hitherto llave been mainly directed towards the collection of milk wherever it is available as opposed to basic milk development. The table below gives milk collections by the Milk Board for the last three years.
This recent i bc.cn helped by роопас іргices fi year which fell by with thic 1974, hi Maha paddy Harw started coming Further frequent duced enough fo Also with the initiative of the
m
MILK coLLECTIONS BY THE MILK Bo
I97. - 1 Number of Milk Collecting Centres 후 Installed Collecting Capacity (pts.) II, 488 y: Collectioris per day (pts.) . . III, BIS if Percentage of installed capacity 72.
The Milk Board has established Unit and the P.
47 Milk Collecting Centres with a farm tank capacity of 339,192 pints and carries a milk bowser flect of 37 vehicles with farm tank capacities amounting to 364,000 pints. It is seen from thic table that milik Collections Which av CTaged 52,818 pints per day in 1972 fell to 143, ió3 pints in 1974 largely as a result of the contriction of the dairy industry caused by the mounting prices of fecdstock. In December 1974 there were 28 centres collecting less milk than 50% of installed farm tank capacity. The higher producer prices have also resulted in higher prices of liquid milk to Consumcris making it almost i finpossible for the lower income groups to purchase liquid milk The drop in the Milk Board's liquid milk collections has also led to a continued dependence on imports and to a lower overall availability of milk supplied by thic Board.
However, this year there has been a marked rise of mill production reaching now an all-time record averaging zoo.oco pints a day. This is due to previously idle cow resources being mobilised into production with the transfer of cows from remote areas into milk collecting areas and with higher production due to better feeding.
Lindler the Sri I Development Pr apparently a rer dairying as cvide էOAn application:
A record OF business activiti dency for moun
Milk Spray Dyi Cordes liry, Pol Pallekele-Pasti
Sri Polgahn welai-P (labi = Gill-Påligt Eris Milk Collect 3 Mill. Trins
opcrations since I 97o when a pri was, rmiade, Thıc loss before pr Rs, IIo Tilliol Rਬ..)ill and duty on r packing Tlateri Milk Bård is
Cömmercial Col duct prices are Government, b) rial Prices. The

RD
crease has also the slu. Tmp in Im January this soo9 compared ke aldi - algo the 5 trice: braill which nto the market. rains have prolider Arld Pastu C.C. stablishi Erment Lindl Project Technical
ARTI)
1974. 5דל 8 T
구 T
roject Committee Lanka II DA Dairy ogramme there is Lewel inlitcrcist in nced by a flood of
Miks 35 šiluw" tille: Stellting losses in its
written recognition of milik bicing an essential commodity, although such a Policy has not been explicitly stipulated by the Government, as for instance in the case of rice. The Government decided last year to give the Board an annual grant of Rs. 40 million amounting to the Board's FEECs component at 1974 prices.
The Board's dairy factorics are placed in 醬 milik produetion and high dairying potential areas. Thc dairy factorics are at Colombo, Polga hawela, Tamankaduwa, Pallekelle and Amb cwela. The World Bank loan for Dairy Development too will cover these arcas. The Project Technical Unit which has been formed to implicment this Progra II is expected to co-ordinate milk collectionı activities of the Milk Board, thic services of the Department of Agriculture specially veterinary as: sistance and activities of Co-operatives and Commercial Banks in respect of this programline.
±ܕ
Tłuc table Below gives the capacity utilisation of the plants belonging to the Milk Board.
UNDER-UT LISED CAPACITY
IğFactory, Arnbergla
TITELLT'' Fi3 r. iser sistLirisë.
irg Četni tres ort R. Girl Turkers
criser, Steriliser & products
Percut Instilled Average milk in take in
capacity pints/day
pints) 172 (7, 1974
32CCCC Bo-9 27. I - I. I8. 8. - - 1.
懿 I. 41구 5.I. T IO, COMO
2. FTuá 후 I 4.1 41 41 6.4.co. +1. 0. 59.
1957 cxcept in ofit of Rs. 8II, coo : biggest cstimated * TT" ISIT TWA'S in 1974, of which on was oil FEECs nik products and al. Although the supposed to be a Poration its procontrolled by the Loti ES TIL "ay" lite= tre is in this im Lill
It is seen that thcre is a high level of under-utilisition in all the plants and this must nccessarily create serious diseconomies of scalc and high production costs, It is apparent that production of milk is not sufficient to kccp the plants operating at full capacity. The programme of expansion of the Milk Board factorics was planned in the Agricultural Development
EEL:li. It ELVII, IIIIT 137'

Page 11
proposals 1965-70 of thic Ministry of Agriculture. These were completed with the Ambcwela Milk Spray Drying Factory being commissioned il 1974, BuEmany of the dairy development projects given in this document and subsequently revised and cnlarged in the Draft Agricultural Plan. 197177, as well as thosc brought forward into the Five Year Medillril Term Plan of 1972-76 have not yet been implement.cd. The World Bank Loan for Dairy Development signed last year has committed the implementation of dairy development projects to the Coconut Triangle and Mid-Country. The Condensary Region is also likely to be included.
On occasions the Milk Board has assisted producers as for instance six years ago by offering a subsidy on concentrated feeds. Another of its programmes is the Dairy Management Course of lectures which has been conducted for several years. But there has been no significant large scale Dairy Development Projects which the Milk Board his uincertai kecil except for the small addition of unmiked cows and transfer CF some cows from inacc;ssible distances whicn a narketing outlet was established. The Milk Board has generally continued to play its historical role of collector of existing milik su Pplies.
Apart from the supply situation the other important consideration is the price factor. The Milk Board (and the Government) todly subsidiscs thic consumer of milk, whilst there are supportive services for the producer. Yet subsidics for the consumer can clearly be lessened by Inaximising existing capacity utilisation of the Milk Board plants. This of course calls for increased attention on the milk production sidlc.
ECONCA AMIC REVIEW, JULY I 975
from the upcount back to the estat dry. Indian Tami the bulk of the lCombo in as illu dairies of the Co. Milk "Union wyer them. They were the estate sector they were the bat industry which Fl COl ntry estate Se thic in centive of Production Act o were the Indian group and the cSt cious and good but also the favourel Continu tion ırıdl the raisiii cows of Europca their crosses (the cow).
To il Milk Infant Mille Beef
With the esta National Milk Bo: tion facilitics in 1: ded rapidly in th until 1972 supplie fresh milk intake
This sac cthnic by the Ceylon Ta Cünsciữt18ntess_ăm Of bovine anima Hindu religious s to thic Clow" Fälld til: eclinic ulse, is the arca in La most efficient a crops and livesto: of the harsh dry of green feed, European dairy ing rinost efficien good managemen locally consumet a ni Illals are: brcd.
Il te Trinco areas too milkcattle raising are

y and sending them is when they went. labout comprised airy labout in Coch as the so odd Ombo Co-operative ; also operated by the dairy labout in oo. Consciquently, kbone of the dairy Jurished in the uptor as a result of the "Estates Food 1942'. Not only Tamils as an ethnic lite staff milk consdairy-husbandmen, lirimatic concilitions Colus grilliss produc1g of high yielding 1 dairy breeds and Hatton and Cape
same reasons. Besides, the Ceylon
Moor communitics in these arcas rect sonic of the sinc5 draft cattle of Indian origin. This traditional cattle husbaudry sprica d to thic hinterland into Tatlantialliwa because of the availability of good grazing along the Mailhı:1Wyreli. T"htiıs Polon t"LrLi"Wt to Welikande is well known for Cud and ghee production. The Milk Board's condensary located in the heart of this area has not changed the traditional practices although the condensary his operated for 7 years. The condensary depends more on imported skimmed milik powder and butter oil, excess butter fat from thic Colombo and Anbewela dairy factories and fresh milk from distant places such as Kotagala and Kalmunai, while paradoxically, fresh milk from the vicinity of the condensary move inti) local Curd Lindghcic production.
TABLE WI
ITURE PER HOUSEHOLD FOR ONE MONTH
URBAN RURAL
R3 R5, C) var Rs. Ris. Ris () yr er: TRE, TC-L99 ADC-9 ICJ 11-Igg Jig
3. 16: 36 .1.96 דם D-9-C) 1. 3.29. Ճ-35 I-35 PF
후코 I8.05 I-19 5.20 Tog
blishment of the ird and milk collec}56 dairying espan. - estate sector and d over 70% of the if the Board.
feature is displayed mil. Perhaps milk I good husbandry is stem from the gnificance attached e recognition of its hus, Jaffna district ika, which ha 5 the ld best integrated l, firming. In spite ionditions and lack ven high yielding reeds are Perform= ly, due entirely to All the milk is and very good
ace and Batticaloa sonsciousness and important for the
An identical situation exists in the cxtrictime South of Sri Länka Wilhere : traditional curd industry flourishes. The di Herence is that buffaloes and buffalo milk are Timore popular in the South. The only other area where cattle and buffalo raising has bc.cn traditional and thic detaild for milk and beef has also been high is along the Westcrin periphery, in the Wet Zone Coconut Triangle. The origin of this tradition is two fold, First, coconut is the only crop which permits perel nial grazing on the land. When the standard regulation spacing is given for coconut, 86% of the land carrics grazing. In the Wet Zone good grazing is avaible all the year round in a normal rainfall ycar, The Scicondrëa'i) ilis CCOLONIEC. Raising animals puts this idle land to good use without any cogt and incrc:15c5 incolnc From Salcio Emill: 1 nel animals apart from the value of cattle manure. Estates bred large herds primintily for Inature, to keep downlı weeds and grass, sale of bred animals
Ğarifidi, guyği gerir:,

Page 12
IO
Our goal towards achieving self-sufficiency in
duction; raising the average yield of local cow: creasing the number of milk cows in the cou been proposed in five successive plans coverii years from 1952. Unfortunately many of thcse still stay in the plan stage. The extracts that follow the 6 year plan (1953-1959) the Io year plan (I-59 3 year plan (I-62-1964), the Agricultural Plan (, and the 5 year plan (1972-1976), show that our have had an understanding of the problem. It in reveals that there were no lack of methods of milik problem' sh Guld be tackled but also th FC light on the problem itself,
The Economic Development Platı 1953-59
Until fuller and bettcr infor Illatiom is available on the liwic:stock potentialitics of the country and on the reaction of the different breeds of livestork in the various regioni, it would be Wise to contimile the general lines of policy alread being followed by the Division of Animal Husbandry in Weterinary Services on the govern ment stations and firms. However, the (IBRD) Mission Cautions again it thic understandable but unplubtedly perilous aspiration of the Department of Agriculture to bring about a very rap'dir.Tıprovement añd ni Tillerical increase in the island's livestock, without taking diac account of the rigors of the various regions or the inexperienic, natural approach and poverty of the people concerncd. To produce livestock beyond thic immediate possibilitics of the food supplics and management experience of farmers has produlced dirc results in other landsan outstanding example for many years being the Union of South Africa.
Among the subjects requiring early attention are: (1) provision of a supply of good cross-bred cattle For the urban diries, pending the development of Zebu milk breeds; (2) development of the milking properties of water buffaloes, tward encouraging the use of buffa
Io-curch in Furil lementing urbanı by more intensive d: districts, through Inc. methods; and (4)
istri l-multipli of siries li: progeny of good su economic response gions,
The Ten Year Pla 1959 - 1968
A IIMajor field of ag lopment in the Futuri husbandy. Despit sources in which soil. quite Well adı pEcd ! livestock, almost Rs. spent in 1957 on the and milik products, would have incriscid milion Limless Ilcts II i lopment of this indu: effect straightaway.
Local production o to 15 million pint cows which gives an production of 453 p. L dily yield of II. z E This is, of course, in quantity coli su II led which arc invariably
The low yield of fed oli poor P:stute milk production LI rlt average yield hard feeding of Concentra crease in the price C. Tı ilk production pro:

milik pro3, :iiidli 1Intry have 1g the 25 proposals , from the -1968) the (סדעי t-966ד o platers | lot i Therely | lj || 11t it=hורדg T"הינ
areas: (3) supp
milk supply lifying in urban dern large-scale production and ikely to produce vill ratic and Ili particular Ico
gricultural devee"Will b:: :1iiiirial Cllr liäill fcAnd climati: Te for pasture and Ĝo iiiiiiilliajn "Waš import of milk By 1968 this to nearly Rs. Igg es for the clevestry are Fullt into
FITı ilk fırtıcılın tel s from 338, coo average annual ints Fer COW or intir Fier inimal. additicoil EC), the by the calves 311 kl.
lle average Cow
terlds tij Lnike conflic. The ly justifies the tes al incl liny inEF EITI: ET T1 ke Ritable puts milk
Planning Dairy
Out of Teach of the average Colimer. There is consequently a great demand for imported milk. The solution must ultimately lic in the ill provement of cittle Population, the improvement of pastures, better standards of concentrate feeding and improved management all of which are long-terEll projects.
The postulated increase in local production will be obtained both by an increase in the average yield of it milk cow, and also by an incrcisc in the number milked. In this period considerable emphasis will bic placed om increasing the average vield. The present let yield of 1.2 pints let InitTal per dily is sy low thilt in ilcrease is quite feasible. At thic crld of the to year period it is planned to raise the yield to 3.2 pints per animal per daity of 1, 13o pint5 a years. This is a relatively modest target since the Departinent of Agriculture is of the opinion that "a cow can be made to yield 5 pints of milk a day.
Self-sufficiency in milk thus de Perilds on achiewing Ewo things. The first is to raise the average annual yield per cow from 453 pints to I, I too pints, and secondly to ensure that II zooc cow's more are Imilkied. LLLLS SLLLLa LLLLLLL LLLL LLLLLLa LLLS LLL LLLLLL the target the other has to be inCreased; thus if thic yield does mot rise to I, too pints, the number of Cows in milk has to be greater. Sintlarly, if one target is exceeded the Cotter cal Eoc Himilish.c.
Thc Short-term Implementation Programme 1962-64
Anı içiyarıEc to Wii di; the ilçhir- yement of self-sufficiency in milk And milik Products and an increase in the supply of meat, is cnvisaged on the following limes: —
(i) Raising the average yield of
local cows from I... pints per animal Per dily to at lcast 3.2 Pilts; (ii) Incircasing the carcass weight
of cattle; and
(iii) Increasing the number of cows
milked from existing herdi.
TECHNO32- TE LEWE'W JULY ITT

Page 13
Development
The first two are: long-term Processes which the government sccks to carry out by a programme of rescarch in animal genetics, by providing facil litics for Artificial inscrmination, imProwing animal husbandy and veterinary services, en forcing relevant provisions of the Animals Act, and approving marketing facilitics for milk and meat. In regard to the third, in which results can bc achicved in a relatively short time, thic government proposes to cstablish specific projects to increase production of milk in specific arcas with a view to meeting existing demand.
The improvement of animal husbandry is, however, in extricably bound up with the problem of Illarketing its producc. With a per capita consumption of the order of only 1.5 pints of milk per day, we do not have much of a demand for fresh milk and a large number of cows are not being milled. The real solution has thus to be found by a utilisation of the existing resources and creating a demand for frcsh milk. This will provide the riccessary incentive for the development of the dairy industry.
The Milk Board was set up to provide these facilities. It has expanded its activities and has now line collecting and four processing centres in operation. The activities of the Milk Board are, however, restricted by the relatively limited demand for fresh milk. The country at the same tin The continues to import largc quantities of processed milik Products.
There seem to be three Ways out of this vicious circle:
(i) Á demand for fresh milk can be created by a restriction of imports of mill products.
The purchase of all milk offered to the Milk Board for ຊ້:
The cstablishment of factorics for the production of Condensed milk and powdered milk which will absorb the present milk surpluses and provide a ready market for
(ii)
(iii)
future p Present C tricts are until suff ,Coming
PPt다.
The last of most acceptable.
Agricultural D. Proposals 1966The potentiali tion in Ceylon a hill country zor for temperate b offers excellent farming. This intensive incthod ELLfficielt land is enough milk to ports of powder
In order to ex the Government an estimated Rs the last 25 yea grat Times. As a inentation of th necessary techn skills have bec years. The farm. in the different Country, carrying typics of animal valuable training of animal and However, self-su be achieved in it tersificatio CF || can ber geen from: ple. In IgG4 Cc Tillion worth of order to achie, this commodity, 8,500 cows, in a able fått Tailänka ler here are o natural grassland billi ffalo towrks rari diate purchảse i tan at Rs. 1,75. fore an investIT Inillion in Foreig Ceylon self-suft milk and imne amount in foreig
ECONOMIE REVIEW, JULT I975

adutiful. Under inditions, these facikely to run at a loss client Illi is Forthto enable thcIll to
full capacity.
a tilternatives is the
velopment
970 ies for milik produce considerable. The c is ideally suitable reeds of cattle and avenues for dairy area lends itself to s of cattle rearing and available to produce off-sct Present im
di Ilmilk.
ploit these resources, has already invested . So million during Ts on several proresult of the implecsc programmes the cal and II lanagerial acquired over the is already established limatic zones of the various breeds and , have served as a ground in the fields Sasture 1714 nageritent. fficiency in milli canı short title by an inhese programmes as the following examlon imported Rs. It conden scd milk. Inı e self-sufficiency in we need only about Edition to those availHillwal. As stated earer 2ge,200 acres of in this arca. Sullitable
yailablic for in IlleIndia and in Pakisper animal. ThereEnt of about Rs. 11 1 cxchange can Imake Licnt in condensed iately save a similar in exchange annually.
The Five Year Plan. 1972-1976
Meat, eggs and milk are food items which are very sensitive to income increases among the lower and middle income groups. The production of solle: of these ite: Ils has not kept pace with demand, aid hither to there has bc.cn in sustained Programme to dicyclop animal husbaudry.
In the programme of imDortsubstitution as well as in the diversification of peasant agriculture, the expansion of animal husbandry is assigned very high priority in the Plan.
During the Plan period the increases in dollestic production of milk will be sufficient to replace all imports of full cream milk powder as well as butter Fiat an skiui Lucid mill: for the condensary. Programmes will be implemented to increase the output of butter, cheese and other milik Products.
The main programmes required to achteve the output targets in this sector arc as follows:-
(a) The development of new pastureland. The developed pasture and grassland in Ceylon are estimated at approximately 30,000 acres. During the Plan period another 6oooo acres will be developed for pas turc, in coconut lands and in the II lid-country. Improvements and additions to stock by imports of stud bulls and heifers, for improving and expanding the mill herds. Parlilt stock for poultry will also be imported. Expansion of the network of milk collecting centres under the Milk Board, victerinary extension units, and a greatly accelerated and improved artificial inscrimination programme for the systematic upgrading of the herd for milk and beef.
(b)
(c)
11

Page 14
NAMATIKONAL METLIKECOARD TOTAL MILK COLLECTION
17F-I-57과
Mgr Pryf
g
1973
파97 םךםT
and draft power needs for transport and paddy work. Dairying has been popular in and around urban areas where milik sille was Possible. This until 1972 this zonic carried about Io, Cao or 3rd of the cite national dairy herd which were amongst the best Indian dairy breeds and their crosses in this country.
The position then is that there are a number of traditional milik producing arcas in this country. The Milk. Bird collections show that an av CEage 72.6% of the milik Produced is locally consumed. This consumption amounts to only 0.66 oz8. per person per day.
Major Constraits
The impression is sometimes held that dairy development will be automatic wheir milk collecting centres are opciled, a pasture subsidy is given, producer prices are improved, animals arc imported chiefly for State Farms, and foreign coperts are called im. The issues however are flot as simple as that. Some major constraints not in the above categories are su ITT1ised bloW.
(a) Lack of land for grazing and fodder and its increasing shortage with the up5urge of food crops which receives priority, becausc of the apparent inability to integrate crops and livestock at thic level of district agricultural programming.
(b) Lack of replacement of cows
and quality female stock, because there has not been a
12
consistent p. ding, multi servation oi The major Farms cam · tively smal animals scq by farmers and wastiny in. Thic. Ei the estatic dilli Flighligidli (c) The pricch feed, special and the Emineral III titles have on producti dairying.
(d) The inacce:
availability vices at all specially to
(e) The cxploit mers by mic ing thc DInil closure of F:
(f) The isolatio lopilert an the main str developmen in thic distri
Thus the declirt collections betwet as demonstrated i page despite the : collecting CCITTT: LTCroises. Il 1973 importation of evident that nil; ällone will not aut dairy developinch the present situ; appears to be a se placement vacuu Farmers find it di uneCOnomic Coy Besides, when a isrıʼL anOEhcr real Most new dairy back for want of COwys, The citcd 25,000 according Census of 1962 Ilmated to have ris by the Ministry o no Illic: A Hilirs. A by the Milk Bo roughly 3rd of Indian dairy bre
 
 
 

gramme for breecation and cilvaluable animals. State Livestockily supply a relinumber of thic fired for projects despite their size stments ploughed 1ւrate 1յr:ttlers inլ ictor lly E. TO W ı importarıç: ke and scarcity of cocoillt, PCOrlac on-availability of ture it wirious had repercussions in and viability of
sibility and nonof veterinary Serarts of the island small failer3.
tion of dairy farld lencil in Tirket, resulting in the TT15
in of livestock deve1 production FEDITו eam of agricultural t and production
ES
- in aggregate inill. in 1972 and 1974 In the chart om this addition of 15 new 3, producer price and 1974 and the animals, makes it collecting centres tomatically generatic it in this country in tion. There also :rious dairy cow ICm in Sri Lanki. Fficult to replace an for Comic which dies. cow goes dry there ily to calve down. projects are held ature heifers and airy herd which was to the Agricultural was empirically esti en to cood by 1968 FPlanning and Ecosurvey in 196768 ard established that the elitcherd were lds and their crosses
India.
The main Constraints on growth of livestock in India are the poor genetic constitution of the large majority of farm animals and acute shortage of feeds and fødder. Unfavourable environniental CCIlliLit}F15 im ščfile F}{{TI8 of the country, inadequatic animal health cover and an insufficient ITärketing system forlivestock and livestock products have also Contributed to slow progress in this sector.
Milk is nature's perfect food everyone knows it. Still the total milik production has continued to remain far short of the requirement over the last few decades. According to India's Fourth Plan the production of milk increased From za million Eon mes in 1966-67 to 21.2 million tonnes in 1968-69. It was anticipated that milk production would reach a level of 25.86 million tonnes by the end of the Fourth Plan period. The draft Fifth Five Yeat Plan estimatics milik production in 1973-74 at 23.20 million toll nes. According to an earlier estimate the availability of milk during the Fourth Plan period was only around Io8 grams per head per day while the Nutrition Expert Group for the ICMR recommended 555 grams of milk för pre-school children, 2.5) grams for school children and zoo grams for adult man and woman and an additional Iso grams for expectant mothers. (I gram = ,055 274 oz.S.)
Demand and Supply of Milk
A demand projection for milk has been at tempted by the Nationi al Commission on Agriculture based on income elasticity. This project in quantitative terms
ELFILLIC REWIEW ILILr, IT

Page 15
Milk Production Pro
(1971-1cc) has been worked out to bc II 3.6 in 1975, I 33.4 in 1980 and 156.3 I in 1985 in rural areas and for urbium arcas the Corresponding figures are III,94, 128,09 and 146.16 respectively. On the basis of certain assumptions on population increase in the near future in rural and urban areas it has becil estimated that the average demand I 98 I thic country will have to Produce 36,42 milion tonnes of milik per ycar. One can Well'imagine the gap that will exist between dc Tand and production even in the coming decade or so.
Improved Methods
In ordet to effect improvement in milik production quickly India will
of variation in transmitted thro
The 5econd Im sively used in : and low produc up of stock thi of superior, bu genous breeds. yielded results scheles such as and other cit grammes, But ! about 25 years t 6 generations increase il mill limitedl to thc :ay, breeds of bulls
have to make significant progress simultaneously at severall.cvels: breeding, feeding, management and disease control. Genictic improvement can be achieved through three methods: firstly thc conventional system of intensive selection of breeding animals based on individual milik production and supported by a system of progeny testing: selection adopted till recently in our country in areas where purc bred cattle existed. The use of progeny tested bulls has so far not been possible. Systematic attempts arc now being made for progeny testing of bulls and genetic improvement of selected herds under Government management. The drawback in this system is that only a small percentage
SCTTTCTLL S S TTTT TSLL LLLLLLTTS LCCCLLkLCLLLLS S S S S LHS #ரங்க : : ) fri gigர். 4: : red to be r la raரண்ாது I: a 'Pap017 foi fight fợvery”. YoJANA
The third inci of indigenous dairy breeds. Progressively at: cattle develop where includin NCA has recoi number of silal and agricultura produced cro: should be ext tance in the loan, preferabl chilse of cor hcifer calves up зll projects | must provide plants, the fe procured at
ECONOMIC REVIEW, JULY 1975

graтте
milk production is Igh imh crita thce.
thod which is extelreas of non-descript ing cattle is grading ough successiv C tilse Ils of selccted indi
This syste 11 h 45 in areas CD vered by Key Willage Schemes e development Prohis system also takes to grade up over 5 of and even then the : production will be erage of the superior
sed.
trial hillialdry, rg gfrr Η Μέιμπέρτέ τητα
thuod is cross-bocciding cattle using exotic This system is being opted under intensive ment projects cweryg, hilly arcas. Thic minended that a large land marginal farmers | labourers who have is bred heifer calves ended Financial Assisorm of Subsidy and in kind for the purcentrates for rearing to Calving stage. So, For milk production for feed mixing ed ingredicnts being reasonable prices,
The ready mixed balanced feed would then have to be distributed to farmers engaged in milk production. Thc crossbred animals demand a better regime of feeding, health cover and Ilanagement, The higher the level of cxotic inheritance the greater would be the need of this requirement. In each arch where crossbreeding in cattle is introduced there should be a clear cut objective laid dwin in advance as to the level at which exotic inheritance is proposed to be established in the crossbred population and to take simultaneously measures to produce suitable crossbred bulls formating Among the exotic breeds to be used, jersey has been adviscd to be the Ecst. The hcalier exotic breeds with high milik Prodiliction such as Holsteinlı Çarlı be introduced only in areas where suitable feeding and management conditions could be provided for maintenance of crossbreds with high milk production and heavier body Weight.
Another important support för the success of the crossbreeding programme in cattle will be the provision of an intensive and cfficient animal health cover. Crossbred animals arc highly susceptible to foot and Tiouth discase, Already the production of this vaccine has been taken up by the Indian Weterinary Research Institute and a private pharmaceutical firm in the country. The Government of India will have to give high priority to adequate production and proper distribution of this vaccine as the demand for it is growing very fast,
Sirr, YOJANA June 1974
13

Page 16
with European breeds in the Coconut Triangle and the Mid-Country. The pattern of Milk Board mill. collections support these findings.
Every indication is that the elite herd has declined significantly, Records show that 1813 purc and Cross bred European and Indian cows and heifers were brought in and passed through the Colombo Municipal Slaughter House alone during the year 1973 to May 1974. Much larger numbers would have been slaughtered in the areas the animals originate.
During 1965-1974 imports by purchase of cattle were 4005 and by gifts 2,462. Of this 3388 were Eurgpean dairy breed including male animals for stud, On a modest estimate of herd multiplication these should have added to the clite dairy herd in the country. But there is evidence to indicate that the herd has decreased. It seems that the relevent authorities should make a fuller assessment of the recipicnts COnpetence to utilise such valulle imports for development.
The problems have becn apparently appreciated by most televent authoriLLLlLS LLL LLaaD S LaaL LLLLLaaLLL focussing on these issues and solutions put forward over the last 25 years by out planners (see Box on pages 10 and II) but the goal of self-sufficiency still docs mot appear in sight. Thesc same problems seem to afflict most of the developing countries. In India the situition is al clicar casc in point, as thic box on page II, 3, illustratics, where milik production has continued to remain far short of requirements, though possible solutions to the problem are always very readily for thcoming. It is apparent that there is a clear gap in the record of the last twenty-five years between formulation of the problem and its fulfilment,
The Challenge
It is mot necessary to over emphalsize: the importance of Tilk in the dict of the people but it is unfortunate that not many realise its true value. It has been clearly established that the lack of the necessary minimum amount of any nutrient leads to a state of malnutrition, the six types of nutrients being fits, cirbohydrates,
14
proteins, water, mini yitirilirls, These: n three basic function: cncrgy, growth and trol of body proces: in all three function viding the six nutri able milk Tully rie: necessary, but when is indispensable.
But at prices that prevailed in Sri Lan beyond the reach person. Milk c. only be more wides reach those of seer fj fjalls. This cal be the pace of develop conditions in gene. industry in particul
The development gramme illust keep nomic development much as develtiple lthy economy milk c. nation. Conversely to bring milk Withi AWCLage person We T bring oso Diliany othe his gras P. SIJI Inte: e taken the defeatist almost impossible to prices and if this g. us we light as we မျိုး ချိုဒိုဇွိုးနှဲ ir
The picture that general situation of is that in s Politic of: good pasture land, tively little consuri the non-filmiddle clas is apparently no E ness through all reg of the need for mi or even parts of Sri The present effect : the Milk Board emphasis on Colle in effect to drain. In loyer income ATe:15 urban classes.
There is, for exa nut triangle a large pasture land and in exist herds of und although not of Clearly fully utilisi

veriall cleTicenits and utrients perform s for the body
repair, and conscs. Mill assists 5. If foods proints are all availE loc absolutely they aren't milk
have historically ki milk is clearly
of the average Pils LITT PTIOil Call pread when prices mingly equivalent : achieved only if 11t:rit tյք էtronomit: Eal and the milik at is stepped up.
l of a milik propace with our ecoL as il milition, Als ilt will build alcaan build a healthy if we are Lumable Il the Te:Lich Of thic may mot be able to E55 ciltilīlli: 'Witlil :Xperts have even
view hill it is bring down milk Jal keeps alluding ll giye up aliming
milk.
cmcrges of thc milik in Sri Lankai the availability of tillerc is Comparaliption of milik in 5 Section15, Th Cre general consciousgions of Sri Lanka ik asin Say India Lanka like Jafna. if the working of by its historical tion secms to be ilk from the Tural to feed the upper
mple, in the cocoalim junt: Cf. LI ILLISCd other årets there: cr-utilised calittlic— Elic Ecst brccd. ng this cattle, as
well as the pasture and would lead to relieving existing protein deficiencies.
In this a need exists for raising the GHHGLL0 LLLLLL aLLL LLaaLL aLaL LLLLLLY tlaGLa tt campaign is called for to this end. Examples of such campaigns cxist in countries as wried as those of India and France. Such attacless will have to go hand in hand with clicmythologising some of the propagated falsehoods around powdered milk together with a campaign to emphasizc breast feeding. In the case of infants such demythologising in face of decades of propaganda would be very urgent to save the mental and physical health OF Future citizens.
A popular image of 20th century IIilk production is that of vast acres of wide open land, as in the United Stilte 3 or Australial with thousands of cattle frccly grazing in pastures. The future for milik Production in Sri Lanka a Piparently docs mot lie in the directions evoked by this image. There are a very few pasture lands and wide open spaccs left in Sri Lanka except in relative pockets like Tanmankaduwa area. The struggle between rail and animal for the available land is growing acute and consequently the way forward for Sri Lanka’s future in milik would probably lic in intensive dairying with cows feeding on small family Plots or on grasses inter grown with existing crops like coconut plantations. This would also imply that milk production becomes spread over larger areas of the island with consequent consumption also occurring as much as possible locally. This tied together with an increased consciousness for milk in the rural areas will mean that consumption will occur also in the rural regions with only a surplus obtained from increased production being made available to the town based upper classes. The bigger farms and dairy projects in any case will continue to feed the collecting centres of the Milk Board. TH relevant agencies must, however, gear themselves to an intensive pasture-land, cattle raising and milk collecting programme if the efforts that have gone into all our previous plans are to be given a meaning.
ECONOMIC REVIEW JULr 1975

Page 17
THE ECONOMY
External Indebtedness
Sri LaLinkiä”:S total external delt outstanding (excluding short-terril trade credits) has recorded an increase of almost 75% during the last five years. It rose from nearly Rs. 2500 million in 1970 to Rs. 4334 million in 1974. In 1974 alone, the outstanding debt rose by ower Rs. Goo illion. The external indebtedness his grown at an average annual rate of around 15% during the last five years. The magnitude of the ildebtedness is seen in the fict that throughout the last five years, the total debt outstanding has becn far higher than the annual export earnings. In 1974, despite the sharp increase in the export carnings, the external debt outstanding represent cd II.4% of the export earnings.
An important feature of thc structure of Sri Lanka's external debt in recent years has been thic growing importance of short-term credit within the total debt-suppliers' credit, I.M.F. borrowings and bank borrowings all of which nature in relatively short periods of time. In recent years, suppliers' credit, in particular, has become an important method of borrowing. The amount of suppliers' credit outstanding has increased by over five-fold during the last three years and at the end of 1974 his Fort of Cricci ilicoulted for 2% of the total outstanding debt,
The existence of an external dicit of such composition and magnitude and the progressive growth of the indebtedness over time has certain far reaching implications for the econony, Firstly, there is the problem of service payments on the debt. Repayment of the principal and the interest are a first charge on the export e:Armings... By 1973, the debt service payment had relched 23% of the export carnings. Although the Service payment rose in 1974, owing to the high level of export carnings the debt service ratio fell to 18%.
The indications are that in 1975 the cbt service Tätilo W"COLld Cirisiderably exceed 20%. The interest Paynents oil the debt aloncillounted
ECONOMIG REVIEW, JULY 1975
to Rs. 54 millio: incidentally repre: much higher than earned from gem c.
ExTERNAL DEB
AND SER WIC (Rs. Mi
3 3
டி 3
출 ཐོབློ་ ཐེབ་ 1970 2498 453 1971 2775 4) 197고 4:1 1973 3725 (529 174 534
" Armortization plus i Fire el fill Barı: for IT.
The growing det is one aspect of th external debt has economy. By coin fifth of the export debt servicing, an his been introduce of payments and policies since thes first charge on the Morenver, the ci caught in a "debt limited foreign c. and the lett til II level of consumptic Cricis: in d:bit servi inevitably Ilean a f borrowing. More E. in order to repay and the debt probl riding attention of to the neglect of
ČIO 11 HILT ISS LIES
Debt servicing y a heavy burder in a forcign loans are: substa Iltial I:CIIIII. to enhanced export ing on imports the Capacity to repay. Lanka, however, til of Foreign loans ha pose of partially of quences of a deter trade (and the res capacity to ir import) tion levels and e: activity (The ter fallen by over 30%

|inhill CIl t:5 # Il :LTT101111t. what the country ports in that year.
ouTSTANDING E PAYMENTS lions)
སྤྲོད་ཀྱི་སྤྱི་ 隷書 ミミs Ավ Լվ 본 2253 {{l}, 1 2244 21. 2.206 21:9 2733 3. 382) 17.3
lettest
Annual Report
yt service payment e burden that the
imposed on the 111tting Over C}IICcarnings to fleet lcment of rigidity d into the balace foreign exchange e Payments Are A : export earnings, puntry has been trap. Given the :Change resources intain a minimum bn imports, an inrepayments would uirther riccollir Sic to Las to be bico TrDWedl the earlier debts, en receives Overthe policy makers
other important
would not impose In economy where
accompanied by ic growth leading capacity and savreby creating the In the case of Sri ac i Cressed flow is served the pursetting the conseiorating terrills of ultant fall in the
on the consurlıpSential Coloiic Ils of tridc hive during the last
five years.). The progressive rise in the external debt has not been accompanied by any marked economic growth.
Such thinking positively inhibits policy makers from actively looking for alternative strategies of development which would minimise the need for dependence on imported capital. The emphasis on foreign exchange as a limiting factor on development represents a subtle attempt to perpetuate the economic dependence and to continue the ex POIT-Im P-Ort CCC)nOmy III a. neocolonial form, in this form of export-import economy, exports will not finance all imports; imports arc increasingly financed by foreign loans and a growing portion of the export earnings is devoted to debt servicing. FEEC SCHEMIE
The FEEC scherne, ever since its introduction in May 1968, has Continued to be a buoyant source of government Tevenue, While it contributedl R.s. 28; TTiillion1 or roʻ%, of the total government revenue in the financial year 1968/69, in 1974 it has become the biggest single source of government reveniuc With a contribution of Rs. 96.4 million or 20% of the total goverlinent revenue. Thus, the income from FEECs has increased by over 250% during the last five year period. The growth in thic revenue from FEECS is a result of thc progressive increase in rate of premium from 44% to 65% over the years, the increase in the list of importditcIlls that cane Linder the FEECs and the rise in the value of imports.
In 1974, owing to the sharp increase in the value of rice, flour, Fertilizer and other FEEC exempt imports, the proportion of the total imports of goods and services that came under the FEECs recorded a declinc to 59% as against 70% in 1973. The I.M.F. has repeatedly advised the government to extend the FEEC Sclerine to cover all imports and exports-in other words, to bring about a straight devaluation of the Rupee by the FEEC rate of 65% in place of the existing selective devaluation. However, for a developing economy, a multiple exchange rate system offers much more scope for flexible action in regard to specific categorics of imports and exports than a rigid uniForm exchange ratic policy.
15

Page 18
Banking
(Third Window' at the World Banէ -
On Ist July a Third Window was opened at the World Bank. This is the result of a decision made by the Development Committee of the International Monetary Fund (IMF) ånd the World Bank at their mecting in Paris last month. The Committee, which is made up of Ministerial represeititives (In the Board of Governrs of the I.M.F. and the World Bank, had becn considering various means by which the Bank could increase its assistance to the most needy if the developing countries, and their agreement to open this Third Window has been described is the only encouriing result to energe from the othicriwise disappointing Paris deliberations.
The World Bank will make available through this Third Window special loans to countries with in annua per capita incomic of below $375. The interest charged will be 4.5%, and the repayment period will be spread over 25 years. Most of the developing countrics of Asia, including Sri Lanka, Arc a Ilong the CC) u Iltries who will be cligible for these loans.
This facility has been aained the Third Window because, until now, the World Bank lent monics through only two "windows' (or "counters' as referred to in our local Banks), Through the First Window were given loans at a standard interest rate of 8.5%. This was to high a rate for most of the developing colliltries. Through the ScCond Window the Bank gave loans on which only a service charge of 0.75% was payable. LLLLLL LL LLLLL S LLLL LLLLLLLLuLLSLLeLe LtHLGLL which are disbursed by the Bank through its “sift-ları” a Tull, the International Development Agency (IE) A.) in order to help the poorest of the developing countries to finance projects which by their nature are not able to bear a heavy interest burdell, Oil of the nost recent of such I.D.A. Credits til Sri Lanka has been granited to finance the development of a livestock industry in the coconut triangle in the wet zone.
I6
Loan Difficulties
I.D.A. soft loans to get, and there sistent der Irland froIII countries for the reduce its normall provide a dilird c; Such läns necd illa: but the interest sh thich the botrotti beat, and be less normali Interest of 3 Wind:w has been tö thỉ8 derii:Ind, hilled in I.M.I. : C[]T1CTetỵ: 5ft:[] [[]Wil transferring rcial ri loping countries. contemplates the World Bank Full", loans totalling I year beginning 1st funds; will bic riti: national capital III. way that funds for normal lending W.
st. Tes: Fld; cd by the Bank at c rates of interest, an vidë thëse funds t tյլIntrict it the t of 4.5%, the Bar special interest sub rec5cburces if this Lic: to Ilicit the differ interest charged frt. Countriť: "ihlich byť: Third Window all able by the Bank in the internation
Notable Exceptic
This special int count is expected Contriljution3 fra I. c3 Llintries, and II Britain, Canada, Holland, Norway,
Till afil. Venezu contribute at Illg | million to this acci notable absentees tributors are four ol trialised countriesGermany, France AI Development Com have been disappoi

Finance
B
are very difficult Hlas been a perIn the developing World Bartık te :nding rate, or to tegory of loans. Elbe inte-rčst-free, uld be at a level ng Countries can thin the Bank's 3.5%. The Third Pened in respons: and it has been reles is the first Frds new w:Ly'S Golf sources t deveThe arrangement setting up of it which will provide billion during the
July 1975. The iel on the inteIIrket in the Sal TT1C Ehe World Bänks circ raised in the are being borrowcompetitive market di in order to Proto the developing oncessionary rate k HaL5, Cicated ili, sicly account, The cumt will be Lised önce bct")'ten tlıc: in the developing Frrow through the the interest payon its borrowings Հl capital Tiirket,
S.
Ericst subsicly licEo be fundled by in the developed nations including Elıc — Girlf Statics, 3:lldi-Arabia, SyitLela havic agreed to
hem around SI 23,
punt. Among the Il this list of coilthe leading indus-the U.S.A., West ad Japan–ånd the mitte. Pears to inted it the Ellilure
of these countries to participatic in this programınıc.
The Stro million committed to this account sic fiat is adequatic t) Finance the interest differential (i. loans up to only $500 million which is only half the Fund's target, and it is clear That LIL Illess Tire 器 tlı ileyelopedi Countries can be persuaded Participatic, thic impact of this pro= gramme will be very limited.
It would appear that the virtual boycotting of this proglarine by these four countries, particularly the U.S.A. and France is the result of their annoyance at the failure of the I.M.F. Ministers to reach agreement on the question of the fitullTc chif the Flind's gold stock. Several proposals
were canvassed at the Paris Meeting
with regard to this matter, but no decision was arrived at. Soric of the developed countries, notably France, proposed that the gold should be returned to thic neither countries. As against this, the developing countries were of the view that this gold should be used to strengthen the Fund's resources. The I.M.F. Secrctariat had pro PL2SCd a compromise solution in terElls of which 20% of the gold with the LSLLSL LLS uY Lae SLLLLLLLL LLLLL S LLLL LaaLLLLLLLLtaL Countrics at the official price in Poro= portion to their present quotas, 30% would be retained by the Fund, and the balance 50% would be sold at market price cither to the lenber Countrics or in the open larket. The monies realised from the sale of this 50%, would be used to establish a Special Trust Fund to help low in come devcloping Coutries witli lilllance-of-payments problems. Since no agreement could be richel Com this matter, this issue has been transferred for consideration at the Annual mecting of the I.M.F. to be held in Walshington iր September.
Inumplications
The above summary of the developments which took place at the June meeting of the I.M.F. Ministers in Paris leadsto the following Conclusigris.
FCDFUK FC REVTEW, LL 1975

Page 19
Firstly, the decision to ope: A Third Window is a tribute to the persistence of the Ministers of the developing countries and their allies, ScCondly, the resources behind the Third Window are fir from adequate to meet even some of the pressing needs of the developing countries.
Thirdly, there is continuing resistance in international orgi Illiltions, particularly of the World Bank group to any steps that will be to the advantage of the dicycloping countrics at the expellic of the developed countries. This resistance has been considerably eroded in IccClt years but there is yet a long way to go before the international finalnicial Corginisations Cian be made to pull their weight fully in the interests of all-round economic development.
And finally, among the developed countries themselves there are some who cling more tenaciously than others to their Will special interests at the expense of the developing countries. Fortunately, there are yet other developing countries who take a more enlightetled view of world economic problems and are prepared to compromise their short-tart interests for the sake of 1. more eiguitable shiring out of World TCS lIT.
Credit Controls Revised
WARIOUS developments which have taken place since the Central Bank. LLLLLL S LLL LL LLL LLL LLLLHLLtLS on Comınıcrcial birık credit list \pril seçcılı tip iridiçi:Lite: thilt the Baltik has bcen persuaded to revise the restrictions or at least to soft-peddle them. This is a very welcome development, particularly because the introduction of these controls saw the Central Bank being subjected to criticismson IIIe of the 11 in very strong termis— fron several quarters.
It is it illustill För Elie Celtiril Bank to be subjected to criticisill, and such instances are not peculiar to Sri Lanka, Our Central Bank, like its counterparts ii must other cul: tries, is an autonomous body, and its actions inced not always reflect go
F. CONFLITIC KITTI "Y", JLLi'r | T*|
Finance
vernment thinking cti. T3 lī Cc1cc1 ti) each. Ce (Glycerrieri t iinl iimr may properly list sibilities 13. Ele Gr tary authority and litt it is; il-knowl certleg Ehit Elie C: Gjytetinent can hi I SITT LITETS
tit:Ur101111'.
But te recelt wholly political n Et it i F: FIICE: bf the Gioverrur Inernt (i overall political, e. impact of any mos Bank (concerned b tary and ei:Innmit CF the critic-simin "w": state ball; which largest units in the systeril, and it c issues such is Lh weil The COnliner Central Ballk, thic Bank in implicine policy, the positio in the country's b. perhaps fillos E ir il soթեy underlying various regulator cularly, credit con
These critici::11 Vicki for Ved t yielded somic innp: ing results. It his til Little CD Elli merci best position to bility of any moni posed by the Ce regulation of the prior consultation tirail Blinik and the Will ensur laxim of the contemplat
At the Sanne tim position of the tw է 11ւking system al life Lif the CrյլII iterated. They Co. over 80% of the sources of the C. eographical spre: 體 響 of thic E.

or policy in every my has been conintral Bank by its ET TE E EBLI: harge its responhier millert’; I’ll Illefinancial adviser, edged hy all conintral Balık ın il the old differing views pertaining to the
Criticis II wis lat Jr. was it confined opinion between Órice IIll Will th: :Öırır. Jilicialıd göy cilal re) and the Central asically with loc: problems). Most as made by the two constitut the tij : country's banking wered St II1c bäsic e relationship betcial banks and the rTitle of tlile Ceilt rial nting Government of the state banks linking system, and Ortaltit, the philothe Central Bank's Y measures, partitrol,
s, Lild discussions le, seen to have Etan L Lild Fair richled to a recognition ill blinks ir il til: udge the practicaՅէ:lry Ilit:15լIrt:8 נןT3ntral Balk For the economy, and that between the Cen: commercial links LIlm Possible success ed measures.
le, the prepoliterant state talks in the Iլd liլ էlie Littյ11ւյImit litry has beein rcintrol between then : total banking reuntry, and have a ad un'approached by inks. At the sa Ilit
Banking
time, being very close to Government thinking on cconomic and financial matters, they are highly sensitive to Government policy, and are agents for carrying out that policy in the financial field. In these circumstances, the two state banks cannot be treated merely as two more units in the country's banking system. The Central Bank must have a more intimate relationship with them, treating them is partners and collaborators in the performance of its allotted tasks.
Apart from the question of the relationship between the Central Bank and the commercial banks, the recent discussions have also resulted in a closer examilition of the illerits of liret indiscriimiilite EF1 to F criðrilLLLLLL LLLLLLLLS S aaLLLLLL S S S LaaaaaaHKS SLLL checking inflation. The practical aspects of such an exercise in credit control have also been questioned.
The Central Bank, like its counterparts elsewhere in the world plays a key role in the international finalcial relations of the country. Our dependence on international frces in thic firlincial fiell i; sich th;t the Freedom of action in monetary matters of both LLLLLL LLLLaLaalLL LLLLS LL LLLLL SLLLaLLLHuuLLaaatLa is highly circumscribed. The Central Balık, as the Goverımcıt's chief adviser in monetary litters, has a dlı Ey Eo draw the attention of the Government to these curlstraints, and tra Pro Pasie: Possible li les CF fictial. However, even within this framework CF in Eeriittiriliul CJ-15 triliilts, it is still possible to work out different strategies, and the national interest dernancis that the appropritte strategy be worked out together by the Goverilment and the Celtral Barık in LCaLLLLLLLaH LLLLLL LLLLK S L HHGGtL KLLLLL LLHtLLLututL as and when necessary.
It is very nuch to be hoped that the events of the recent Past will induce LLLLLL LLLLL LLLLLlLLLLLLL LLLLL LLaaL S LLLLLLaLLLLLLL ttttttLLS at its role in the context of the rapid chinges now taking place in Sri LiLinkia. Indiged, the determination1 of Elte Central Bank's nevy' rolc is ve ital to thic CCD10 11 i C and - SC cial progress of thic Country
17

Page 20
The Survival of an Industry
Twelve C. R. A. importers were permitted imports of water colours to the tune of rupees one lakh twenty thousand during the Ic months August 1973 to Junc 1974 and these imports have ceased since theil - What has happened to the many thousands of dozens of tubes and cakes of "Maries and Reeves' water colours that came in? How many of our 2,660,635 s Eudents werc fortunate enough to purchase Ճոc of these packs at anything between Rs. 7 and R5 zo) -
The issue that has finally come to the light, however, is the plight of the local Water collis manufacturers, Tlost of them small scale. Production of II registered local manufacturers had fallen from 84,000 boxes in 1973 to 52,000 in 1974, for the siniple reason that they have been squeezed out of the market. And still, it was reported in the press on June 25, 1975, that, a centre to manufacture watcr colours will be set up at Morawaka in the Deniyaya electorate and a sum of Rs. so, cool had been allocated for the purpose.
The local water colour manufactturers have been told that most of their products did not suit, the requirements of students following new curricula and it was this factor that prompted the authorities to allow the import of water colours.
The Chief Education Officer (Art) of the Ministry of Education, Mr. B. S. Wijeratine, interviewed on the subject said they were all for the promotion of local industry-but that local industry in turn must stand by the student. The school going child must have good quality material-if this were not available to him, his creative ability would suffer and be: hampered, because hic would be concentrālting TTiD Te On his paints than on his painting and his flow of ideas would get disrupted if he had problems with his colouring naterial. Therefore, quality was very imporEint and this the local manufacturers could not produce, but for a few rare exceptions. Another fact revealed by Mr. Wijeratne was that
18
today’s student nie. material Like the Cr mixed powder and
millu ftLrcers Timul St to the student this C in the Form in whic him, Old Fishile thic paint box of rei with brush, would outdated. Moreov should also be ab Tegular normal Lisel
Thic quoti grante State Trading (Gen. lastycar for the iTI Diterial For the Mili had bc.cn comparati comparison to the sc lation of nearly 2.7 quota had been h Numerous probler working out the bal the inadequate st based on this quota
The silver lining therc is fit least OIl a pastel colour-th parcd with the i and which product rire instances du raw literial or oth a good Standard qu
The President Water Colour Mar ciation Mr. M. S. I self a major water turer was al disillus local industry was only had they to imports under the . to attle with in Convertible Rupee latter Hic claired hi the local industry. TT:is: In Oly it.: Stali II had bccrı III luft stock and Lilable
With reġard te obvious that the yet in its infancy had to be done and to bring it up to imported products, started in the earl reach the standard duct which has from as early as th५ turyhe said. Furt

ided up-to-date løur cake, gurn
hic tule, Local Düzılke avalilible louring material it is needed by contailers like tangular Squares Öt do-his Was ci, the brushcs le to Willistand y students.
to the Sri Lanka
·ral) Corporation բort of pairiting stry of Education rely negligible in hool going popul
million and this alved this year. ls crop up in its of distributing ck of imports
is in the fact that - local productit could be Coinimported product , EXCEE 111 WCW to lack of sole år, has maintained ality.
E the Sri Lank: ufucturers' AssoDassanayake, hir il
colour manul facioned Ian Whcre concerned, Not competic with the uoti but they had ports under the Account and the d virtually 'killed Local manufacture still because what tured was yet in to find a III arket.
quality, it was cal industry was ind much research experience gained le st:inclaird of the The local industry | 1970s could not of a Reevics proeen manufacturel ind of the 18th certer there wrası0 sinl
gle official agency to assist this industry in raising the standard of its products. There was however, Ilore than one agency ready to act on a short term strategy of finding a solution to its immediate problem of supplying students with water colours. Wery. Tuch valuable experience had been gained with substitilte local Taw materials, but the dyes had yet to be imported. These had to be non-toxic dyes of a standard quality. The Rs. 3, og 3/- quota granted to each of the nine local manufacturers in 1973 (except for one who got a higher allocation) was according to Mr. Dassanayake in:ldequate,
The type of water colour required by the student he agreed had to be manufactured. But this he said was not a major problem in manufacture as long as the necessary raw material was made available, Market research had also to be donc in this connec-- tion, as to what really the student needed.
Research by the Industrial Development Board into the subject showed that local production of water colours had fallen from 84,000 boxes (1973) to 52,000 (1974). There are 11 local manufacturers approved by the Ministry of Industrics and Scientific Affairs of whom 8 received foreign exchange allocations of Rs. 5,ood- in 1973 and none thereafter, while one continued to receive a foreign exchange allocation of Rs. 5.coc- annually.
In 1974, the Sri Lanka State Trading (Gencral) Corporation importedl Rs. 40,000/- worth of Water colours for the Ministry of Education and these were distributed through permits to art societies in I5 regional offices, each region getting about I lo dozen boxes, at the price of Rs. 50 per box, The foreign exchange quota has been halved this year, Another factor of importance was that approximately RS, I2 Ioop|- Worth of Water colours were permitted to bc imported between August 1973 and June 1974 on Convertible Rupee Account (C.R.A.) Exchange,
The Marketing Division of the Industrial Development Board which took up the case of the local manufacturers, had arranged a mecting with local manufacturers and repre
ECONOMIC REWIEW, JULY 1975

Page 21
sentatives of the Ministry of Education, at the Ministry of Industries. This was the inevitable outcome of the birth pangs of another local industry which had lacked a dialogue along manufacturers, users and product controllers. What is today niecdet is al continuation of this dialogue.
The general view is that the dialogue now Started must Continue on a wider basis. The local manufacturers must work closely with their market through the Education Department and also improve their quality, manufacture the type of colour needed and market the product itself through the schools.
The Convertible Rupee Account im
ports must be stopped if local manufacturers improve the quality of their products on increased allocations granted to them. A suitable cheap local packing should be found and made available as early as possible, as the present packing is approximately 65% of the cost of the final product. More and more people must Participal te in this dialogue—the Blureau of Standards (for quality control); the CISIR (for random sampling and guidance on product improvement) the Banks (for easier finance terms) and the IDB for possible technical, marketing and other general assistance-if the local industry is not to crld up in the
llils.
Hopefully, a major Corporation has come into the picture, in the case of future raw material for this SEIllall industry. The Ceramics CorPoration in a forward-looking progrå I1 Int: has dccided to Imanufacture the dyes or stains that are used in this industry. This is said to be a byproduct of firing kaolin at very high teTimperatures and this will be processed ind Tide Available LQ local small industrialists in the future.
This is a case study of only one small local industry-there may be several others who may have similar Problems of which we may un fortunately bc unaware. The suggestion was made by the water colour producers that a Designs Centre or Marketing Centre on the lines of those cstablished in foreign countries, be established for this purpose for this industry in Sri Lanka-this may well be the medium through which this dialogue could continue.
HCONOMIC 1 BYLEW, JULT 1975
FOREIGN
The New ECO
THE growing ga. por Countries ten. to in neutralist eC the "citerioratio trade'. The phrase of thisc who clairl objective and not politics. Cheryl Pay book. The Delhi Tira analysts virtually Colltmn in THird W tying the latter to E of clorilimaticom. Undi expression lics a v Because industrialis trol the structures international trade towards thic declin. primary products c. developed countric prices of manufact escalating the incor
Gross domestic Population Gross clorum estic Agriculture Industry Exports
Gross dofilestic Population Gross lomcstic Agriculture Industry Exports
exports is, therefoil TT Cycad from the ir received. It is more the value of cxports quапtum ofсxports, mated that in the la thing like 40% has primary procedures developed economi

NEWS SURWEY
tomic Order
between rich and ls to be referred nomic jargon as in the terms of has the approval to be academically concerned with in her excellent p show how such licted as a fifth Ill countries in he world system cr this mysterious ry simple reality. [] [[]]][1[TI#8 [[IIland the rules of therc is a trend : in the prices of ported by underS. Where the | red goods keeps Inc. obtained from
more and more in order to obtain the sa Inc import capacity. In the past two decades the rate of growth in the underdeveloped countries has been constantly decelerating. The tables below illustrate these prices clearly:
The Pearson Report drafted on bchalf of the United Nations far from questioning the terms on which strategies of development have been based mercly proposed an intensification of international co-operation along the same lines which have already proved useless in practice. The second development decade of the United Nations began in 1970 has merely shifted the blamic for the first failure, to the population cxplosion. It seems as if, sexual promiscuity seems to have its non-pleasurable
GROWTH OF THIRD WORLD (China Excluded)
1948-1934 1954-1960 1960-1966
product 47 4,6 -
п,8 يقة في قة product per person 2.8 후 п,6
3.4 ,ே 6, z 8,6 8೩ 3,7 6, I
COMPARATIVE GROWTH
Under Peffery Eaffern developed Under Europe rairi tries deredpid (C&# rợ#frier சx:) product 44 7,8 நே4 후 Im+ product per person 19 52. ,ே4 후,7 후, II 4、 8, 95 4、9 8, I 9عة و
:e, very far remount of money realistic to assess in relation to the
Itha.5bccIl cStist 20 years somebeen lost by the i. The underes must export
aspects according to the United Nations. (This emphasis on popullation however got reversed in the Bucharest U.N. Conference on Population last year).
It is in this context that We Hawe to
assess the Declaration on the Estab|lishment of a Nicw International
19

Page 22
WORLD INCOME DISTRIBUTION IN
Population in % income S million 9% income p
Smillions
5טti -Quntriוו!נw-inctינL
866,平、斗芷 i *gg + + + + + + (تi $$) Mediullim - incorc : Ollill
tries (SSoo-I,000) 후 7- 181,570 High-income countries
(SICoo) ... 883 z 54 I, 82. II, 356
LLLLLL LLSLLLL S S0SYmS S LC0SK S S S00AAAAS0000
(Source: World BankAtlas, 1970)
Economic Order adopted by the General Assembly of the United Nations. This declaration approved by a special session of the General Assembly has attempted to make a serious assessment of the deteriorating relationship between primary produccis and industrialized countries and is a welcome departure from the classic solution of education and Ebirth control. The fact. Te Llains that the widening gap persists even if we ignore respective population growth rates. The 19th century cconomic expansion in the industrialized count tries was achieved not in spite of demographic growth but thanks to that growth. On the other hand the underdcycloped countries experienced demographic stagnition in thic. PTCceding periods and this in no way facilitated economic growth. The table above is an illustration of thic income population equatien as it stood in I569.
including the right
or transfer of owner als, this right Licing the full pernament : Stätt, N:o State Illa economic, Political
of coercion to Porc' full cercise of thisi
The natural and of the Third Wor The till below position in regardt the wealth of the
Clearly the prob side the spectrum earlier in Leniti necessary to ask wh of underdevelopm Tegist the III, 55; iv. material and hul III:A. to crbl Ilbait Liridera the international ai have only made declara titom refers
RAW MATERIAL PRODUCTION IN ccTHE THIRD WORLD' AS PERCEN WORLD PRODUCTION IN IgG4
Tcta. . . . . . . . . tյC) Coffic:: ... I (Cacia ... - ... ... IOJ Citt, ... ... 후 Jute ... ... III Natural rubber Iloj
The Declaration Deminds
The declaration derländs “full Permanent sovereignty of every State over its natural resources and all economic activities. III ordict to safeguard these resources, each State is crititled to exercise eflective control over them and their exploitation with means suitable to its own situation,
20
Bauxite ... Antillony ore .. (Cirrhille føre Copper ore Cobalt orc Tin concentrate
and most signif during the last de independence fron döIllination of 1 peoples and nation thletil to becomic community of fre: on to say "howe vestiges of alien

Igs)
cr capita
so I후7
7. 1דד
c6.
OCC 6.
to nationalization ship to its nation
an expression of overeignty of the y be subjected to or any other type tent the frec-And malienable right'.
Tlineral Tc5OutCo8 I tt crirr IimI ll 13, illustrates this to a few aspects of Third World.
cm lust be Outif questions rais Cd td Nations. It is y the phenomenon lent col tim LES TO Hilisation of Il rcsources 5 et L12 evelopment, All id:SO far sec: 115 t. hings worse. The to "the greatest
TAGE OF
. . . . .
. ... I-5.
94 44 구호 95
Can't achiew' clı Cilt cade has been the in colonial ind aliel
large number of 5 which Hlas e Ilibalet
In emb crs of thc a pcople", and goes ver, the Temaining inil colonial domi
nation, foreign occupation, racial discrimination, apartheid and neocolonialistill in all its forms continue to be among the greatest obstacles to the full emancipation and progress of the developing countries and all the peoples involved'.
It recognises that 70% of the World's population has access to only 30% of the world's income. A fact which is in direct conflict with current developments in international political and economic relations. Herc the document writer recognised ccoi lomic intensification is lit a lccessary consequence of political intensification, and in declaring the Sovereignty of nations asserts that "every country has the right to adopt the economic and social system that it deems to be the most appropriate for its own developinent and not to be subjected to discrimination of any kind as a result'. At the same time the declaration calls for an end to colonial and alien domination, racial discrimination and apartheid and opProses neo-colonialism in all its forms, which forces have established or are endeavouring to establish effective control over their latural resources. To this extent unlike the previous development reports of thic United Nations, the declaration recognises the cause and cffect relationship between political domination and cconomic dependency. The recognition of this calisc in excess by the majority of the nations in the Third World in the General Assembly is a significant victory for the people's of the Third World, at Elcast to the extern t that such views can bc adopted in the General Assembly. In calling for a just and equitable relationship between the prices of raw materials, primary products, manufactured and semi-manufactured goods exported by developing countries and the prices of raw materials, primary coilmoditics, manufactures, capital goods and cquipmentimported by them with the aim of bringing about sustained improvencint in their unsatisfactory terms of trade and the expansion of the world cconomy,
The declarition demands access to technology but as we know copyright and patent conventions are at the same time in abundant proliferation. It requests an end to the waste of natural resources including food products, regardless of the ferti
ECONOMIC RFWLEWILL, IT,

Page 23
lizer starwaltion. Til the Westcrm World, golf links and private gardens still absorb massive quantities of artificial fertilizers. Such brazen apathy when confronted with world hunger though incredible is very much the real politi: of the world of today. Nevertheless, the fact that the declaration has dared to take this position is not itself valuable for it gives strength to a new militancy on the part of the oppressed nations. Only a few weeks ago Senator Jackson an aspiring candidate for the President of the United States called for a determined offer of Co-operation between Europe and the United States to break what he referred to as the oil cartels of the Middle East, Cartels in his view obviously are justified when they crierge in the Western world but not tolerable when they rise, anywhere else. It is, therefore, of little use for the Third World nations as they do in this declaration to appeal to the good sense of the acclaimed leaders of the West.
The New Missioria ries
We may also have to in the process reject even these well meaning dogooders who come in thic form of foreign experts or voluntcer workers who sometimes come to share the problems of the wretched of the earth, In a scrise the civilizing mission of the West whereby the missionary shared with the conqueror the white man's burden is now being replaced by the so-called agents of consciousness. The brutality of the relationship between the rich and the poor nations IIleans that only a path of sclf-reliance in every sense of the term can bring relief and intensification to attack the growth rate of increase the number of doctors, to improve the literacy rate, the calory in take, pipe water, citc. are thic classic social indicators used by the developmentists. Techniclassistance in these arcas all these years has now changed much because they deal with the consequences and not the causes. Clearly a new way of dealing with the problems of underdevelopment will have to be sought.
The Myth of 'Aid'
It may be more useful to accept that international aid increases dependence and in fact leads to a growing decapitalisation. Samir Amin does not hesitate to affirm that, as far as
ECONOMIC D E FIEW. LILY IgT
Africa is concer (Outside aid is mo
“This comitili largost Amour (SG. Io in Af Amcrica; $3z Camic Lirider t Conditions, a situation wit: tic Product w; fore, to il it: should have New critheless, Continent whi becm lost Fe tic'. The myth of from the table g
The Third W. but by President efore the Satu UNCTAID III i he stated that '' capital to and Fr. hais - meant for LI: years, a net loss billion dollars, a in dcbt for m. dollars. Directi capital, often sho gress, has almos to be a negative Latin America, by the Organi: States, between ceived 3.9 bilit back 2,8 lillion ceived, we paid f
Oli T Linderdevel
INIC
Flow of direct
Iricome or this
to U Net ...
Logorre : H. M:
Connected with profitability of part of the wo of the United
irl Westments in United States E. total direct fore
Asia Africa

ed, the failure of
is cident:
has received the : of aid per capita ca; Sido in Latin
in Asia). The aid Le best of financial ld it cale to a = Lille Gross Domicsshe low c5t-theretion where the aid in lost effectic, Africa remains thic tre the gro With his lle and Illost chao
aid becomes clear ve below: rld view was aptly Allende's stiltern ent iago Assembly of early 1972 where he flow of foreign hill the Third World , in the last twenty of Ilore thalil Iod s well as leaving us
re tham 7C, billion .
vestment of foreign wn as a sign of proit always turned up Factor. So it is that According to figures lation of American
1950 and 1967 rein dollars and scrit For cach dollar rcolur". The reasürı for opment is directly
Latin America ... 13.5 Canada 8.5 Oceania 8. Europe s 7.8 (EEC) ... 6.4 (Othcrs) B
The attempts by Third World countries to obtain fair prices for raw III laterials was follow cd by the: continued successful action of the Arab oil states to increase the price of oil. The Arab example was followed by many similar primary producers and agreements have becil etere into beccnicit Thintain and increase prices in the last two years. The Third World countries are now talking of 'indexing' raw material prices against the manufactured goods as a way of stabilising their incolles and maintaining their currency values. UNCTAD has put forward a compromise solution of setting up a SII billion stockpile of 18 food and industrial commodities, The loss of faith in paper currency has resulted in massive investments in Commodities amounting to over S100 billion since 1973. Some of these attempts, like the one on copper, to cut back production ha3 11It preverlted a drop of nearly lic's in the price of copper last year.
All this shows that a political struggle has been launched to rescue raw Filaterial price control by unilateral decision of the industrialized nations. The present trend may not
OME FROM "THIRD WORLD" 1950-1965
(Billions of US dollars)
vestment from US capital transferred
圭革 Глгілі ffhor : Erற் :ெ 1ஈர்: சார்
SI 6.8 3.8 நீ2
5.9 III 14. -2.6 十9.9 - ー9.I
gdoff, “The Age of Imperialism".
thic ctent of the in Westments in Juli rld. Thc profit rates Statics direct foreign 1968 (%) before x.cs as a per cent of ign investiment was
32.6 29. T
succeed economically just yet, but such political replies to the theories of the illusionary market factor, only expose the earlier myths of free market prices put forward by the industrialized countries. They show that market prices were rigged in the favour of industrialized countries for the past few centuries by political actibl.
21

Page 24
Earnings Doubled
Tea continued to be carring the major share of Sri Lanka's foreign exchange inspire of the rising value of exports from non-traditional items and the rising trand continued into June-July too. Foreign exchգոge eltnings for the first five months (January–May) of 1975 were over Loc_I83% more than in the same period (January-May) of 1974. The total tiu fine of all ti-as exported in Éile first Five Tlön ths of 1974, Wils 146. I million pounds at a value of R5. 464. ĜI million1 as Against I 95.3 ) million pounds at a value of Rs. 858.70 million in January-Mil 1975. Exports of black tea were largely responsible for this big rise in ciriings. I77.9 milion polinds ofta i bull; has fetched a value of RS. 75 I.2) million in 1975 as compared With 158,39 million pounds bringing in only Rs. 456.57 million during thic same period in I 974. Packetcd tca exports have also increased more than 2.33% in value and in 137% in quantity this year compared to the sa Inc. period in I974.
Auction Records
Generally during the lionths of April and May the largest weights oftcas are produced in Sri Latika and the months of April and Mily this Year have been no exception. The Auctions held in April 1975 handled 54, in Million pounds of tea and in May 1975 it rose to 56.51 Million pounds. The Auction held in early June handled the largest volume of te handled in 4 single dily in the LL LLLLLLLLut S S S LL LLLLLaLLLLL S SLLLLK S S aaLLLL history when 13.2 Million pounds, originally intended to be spread over two days, was readily absorbed in a day with Eidding throughout the salt progressing at a fairly brisk rate. The feature of this sale (8th July 1975) was the demand for liquoring BOP Fannings due to sustained activity from Pikistanbuyers. The total gross Säle averagcd of Rs. 6.05 (1st July) nowed to Ris. ĜIGO (8th Jilly)—all increase of II cents/lb), in A Week. The very thought of having very large sales in latter Tunc and July would
Liller 11th
ll:1ỹ g had i depressing eft most heartening that tity of tea has been at very attractive F. Pakistan brought bet
jF til 5 Africd it Arıcuther Ferittır: İrı From recently U.K. ing a Fair inte: Icst Litiji.
Another Fern:1rkt recent teil märket v. Flower y Fancy, grade Governement wIIed. tate, Tall wakele Rcgcaith Tinstituit-- taitirin IldLIŠTry"). Fet highest price of Rs. (Rs. ID 8 Per lb.) Auctions (8th July Fire-le ret rif the Oh El l. (ကျားငှါ၊ grade of teil. St. C a Fırılı Ailly 503,3 CC, P been obtaining the the Colombo Tea past two years. S sales average pric Fs. 4. I3 per Poll highest for airly esta First Four Lilonths gross sale average pound topping the Tanıkl.
RLJBI
Prices Dip
Export etia Trinings the First Five: Illith: TETë til å lettre 5 5 previous year. T Jalliary and May 2. 53.5 rmillioI1 Comi Till Elliðill för the sal II i The drop in earnin cuge of Elie declin during this period record prices receiv ever, this is consid the clinings in J. Boy R.s. 58.o. milligon ning of 1975 price irregularly whilst n. what steady level.
Price Slit bilizati{JI
The SL-CIn "ANRF?GC "y17:ıich, Te II th to Tith Tune
 

Il circLLT ListLilçe:S ct., BLE it 'y':S this extra qualswiftly disposed
rices, Iraq and ween them 5% the Auctions.
eu has been that buyers are showif the Cliro Timba D
ble feature in the as that a special of tca fron the St. Coibs Esunder the Tcl Ministry of Plallsched the scCond 255 per kilogram at the Colombo 1975), Trade inion that this is a trl..et For tlıis oombs producing unds of tea, his highest prices at Auctions for the it. Coombs gross for 1574 Was l which is tha: te in 1974. In the of 1975 it had a of Rs. 4.78 per tetit. Iliārket i 1 Sri
SER
Fr011. Rubber for of this year regis:ompared with the 'otal earnings for his year were Rs. ired LC Rs. 338.9 e period last year. gs this car is blee in rubber prices compared with the ted in 1974. Howerably higher than anuary-May 1973, . From the beginis have fluctuated La intaining få some
Gölcl Llusive
tice Meeting of thc t in Djakartal from : 1975 to re-draft
Articles of an agreement for Natural Rubber Price Stabilisition ended without a formal agreement being reached among the producer countries, The Sub-Colmittee is expected to meet again early to consider the Proposal further,
coconuT Export Duty
The Government implemented in advalorem duty structure on Cocollt productis (i.e, copra, Cocoplit oil, D.C. and fresh nuts) with eflect from 16th June, 1975, based on the actual F.o.b. prices realised by the cxporters.
Earlier the export duty structure om Coconut products was based on the London Market prices of Philippine Copra as reported by Reliters. This was found to be un satisfactory for several reasons (a) There is no perfect relationship between the export Friccs fetched for our Coconut products and the prices of Philippine Copra, (b) There were arbitrary fluctuations in the export prices realized for our coconut products, (c) The original intention of linking the export duty with the Philippine Copra priccs was to prevent local shippers from maintpulating the export prices to pay lower export duties. However, with the setting up of the Coconut Marketing Board, this factor was no longer of importance. Hic ncc it becil Ille no longer Inccessary to Continue with the old system of linking out export duty to the price of a product of a conpicting producing Country.
In the new duty structure, a substantial portion of the f.o.h. value is exc:Tripted from duty and duty operates only on the amount in excess of this excriptioni linliit. In thic case of coconut oil and D.C., the exemption limit is Rs. 1,650 per inctric ton.
Actual Exporta
Export catnings from the Coconut products in May 1975 at Rs. 46.0 LLLLLL LLaLLLLL LL LLLLL LtttL LLLLLLLLSS I 65.8 million, a El R5, 4 milliamı, il comparison with the previous month til Corresponding llell lg. year respectively.
Earnings from thic export of Coconut oil in May 1975 at Rs. 22.0 million shoy yeddi fanı increalisce of R.S. 22.3 milli olmı or 1 col%, when comparcidi with the preceding month, despite a decrease
TECONOMIC LLY LEW, ILLY, 1975

Page 25
of Rs. 2708 per long ton in thic average fo. b. price. This was due to a substantial increase in the quantity exported in May 1975.
Earnings from the export of desiccated coconut in May 1975 at Rs. 14. million showed a decrease of c. I million when compared with the preceding month, despite in increase of 29 cents per pouild in the average fo.b. Price. This was due to a decline in the quantity exported in May 1975.
The volume of kernel products exported in the period January to May 1975 (in terms of nut equivalent) amounted to 32.2.4 million nuts als against I79.9 million nuts in the corresponding period last year. This showed an increase of 14.5 million muts or 79 per cent. The average f.o.b, pricc of a nuit was 50 Cents in January/May 1975 as against 62 cents per nut in the Corresponding period in the previous year.
Eatinings from thic cxport of Coir fibre products in May 1975 at Rs. 7.6 million showed an increase of Rs. 0.9 million when compared with the preceding month, despite a decrease of Rs. 45, o per long ton in the f.o.b. price. The increase in the earnings was due to an increase in the quantity exported in May 1975.
Export Approvals
The total value of the exports approved by the Coconut Marketing Board for the month of Junc amounLed to Rs. 44.4 million chimpaircd with Rs. 55.1 million in June 1974. The total value of the exports approved for the period January–June 1975 amounted to Rs. 47.9 million as against RS. 240.5 milion for the Samc period last year.
The total volume of kernel products approved (Copra, Coconut Oil, D.C.
and Fresh nuts) I975 amounted t cliquivalent —an it. lion nuts or 89. corresponding Pr International Pr.
The average L. of Copra, cocont COCCill Lt Corti TL trend in June, 19.
SP Total export e. from January to Rs. 24.7 million, the: R.s. 57.3 TInil ponding period () earnings from Ca tered an increas
IT1illiol for the frs
compared with the same period exports of essen itens Cimilion telli Oil shows
with export carni ably lower than f in 1974, Total
export of essenti first 5 months of th Inillion compared for the same Peri
Total earnings Cinntiloill bärk Linder review for Rs. 13.6 million, i. of Rs. 23.9 millio. the Timajor single mr Cin 14 Illil, Hlias im cwts, during this with Io.694 cwts. ings being Rs. 1 compared with 1974. Export car Nutmeg and Pe; considerably; Clo
million in Januar
4. I million flyr t 1975. Pepper fro1
1974January - May I
Spice Exports
Cwi. Rs. Mil. Cinnamon 65 to: 23.9 芝 CL.Ida ni Com . I 25 Clov:š .. - - 8סדך 구-} Pepper . . NuLոicց - - - - III o, Essential Oil Exports
Cinnamon leaf oil Citronella oil . . - - 356 구Gingelly oil C. Cardalom til 13 -- (Cleve il Nutrieg oil .. 翌卓 O.C.
ECONOh! I CYFLEWIEw, JULY 1975

Li riglig JamiliatryNJ Lime 585.5 million nuts rease of 1823 milt", relative to the cco last y:ár.
Լ: ԷE
Indin mirket prices oil and desiccated el itis lynyrd
as well. CE5 rnings from spices May this year were as compared with itin in the corresElast year. Export damoills has regis: to earn Rs. 5,8 t: ; months this ye ir is ... milliol for in 1974. Of the il oils the major LecciF () ile and (Citiba Hi yn ffilwrol traenid ngs being considerof the Sníme period earnings from the all oils during the is year were Rs. 2.2 with Rs. 5.5 million ond of 1974.
for the crport of du eing the period 1975 dropped to ompared with that mi in 1974. Mi-Rico arket for Sri La Ilık ported only 195 period compared in 1974, total earn.5 million in 1975 Rs. 5.2 million in things from Cloves, aper had declined vics from Ris. 7.9 -May 1974 to Ris. he same period in til Rs. 2.2 million to
375. Talını Luary — May"
. W.
R8, NEI 14 13.
- - 5-ի 고구 -II 下3T l
다.
T"
CCF O.C.
- 그 .
Rs. 1.1 million and Nutrileg from Rs, c. 8 illion to Rs. G. millin.
The downward trend in the exports of spices were also seen in the exports Fessential oils. There Was a marked drop in export earnings from Cinnamon leaf oil during January-May 1975 at Rs. 0.8 million Compared with that of the corresponding period in 97. Lt Rs. 2.6 millim. The samme: trend is seen in the exports of Citronella oil, the other minior cssertial oil exported from Sri Lanka. Export earnings dropped from Rs. 2.5 million in the first months of 1974 to Rs. 1.3 million during the same period in I975. However exports of Nutmeg oil has registered an increase during this period compired with the corresPolding period lst velt. Furth: details are given in the table below.
As part of the EEC's policy of extending the G.S.P. reductions in duty on imports from developing countries have this year been extended to certain agricultural products. Sevcral spices are included in the 1975 schelle. The itals Concertiled fic: Cinnamon, Nutineg and Mice, and Circlinioms. These reductions will benefit export to the Community of Nutmeg and Macc., Cardamom and Cinnamon. As a result of the changes, all but one of the spice exports to the EEC either receive duty free cntry of benefit from reductions in duty under the G.S.P. The one exception is pepper.
OTHER MINOR CROPS
Exports of Papir have been picking up in prices in recent nonths. Prices in January-May 1974 were Rs. 42 - per lb. Cyf white papain compared to Rs, 20.9g per lib, in 1975. Recent trends show rising prices with an increased volume of exports uncomparable however to the 1974 situation.
Exports of Coffs in 1975 have been rather low compired to 1974. In January-May 1974, 8,87 cwts, of coffee beans was exported lid earned Rs. 2,592,664-. In January-May 1975 only solo cwt.s. was exported valued at Rs. 112,687. There seems to be a lull in thic cxport of this continodity. The Colombo Auction prices for Coffee in January-May 1974 average: at RS. 622,2 per cWt, and il 1975 for the corresponding period was Rs, 63.8o per Cw't

Page 26
SHIPPING
ion Shi country. Anothe Corporation Sh1-Ps taken by the S
The continuous escalation of freight raites wis a marked featurc since I 97a. This was due partly to the worldwide inflation and partly to the oil price hikes by thc OPECcountries. According to the latest Central Bank report the Freight Rate Index for Sri Lanka's exports (1961 - too) which showed only marginal increases in the major part of the sixties rose markedly From 1970 onwards. The overall freight index for major exports inCreased from z II 7.5 in 1975 to z 54.9 per Cent in 1974. Consequently, the effects of the gencral improvement in the priccs of our exports were more than offset by the increases in frcight rates coupled with the increases it the price of our imports. The deficit in the balance of payments, for instance, Tose te Rs. 1,227 milion il I 1974 from Rs. 316 millioni in 1972.
If not for the scting up of the Shipping Corporation in 1971, the foreign exchange situation would have been still worse. The Corporation started its operations in that year with one ship only but today it owns 8 ships with an aggregate capacity of 30,000 shipping tons. What was more significant was the rapidity with which the Corporation widened its area of operations. Fo start with the Shipping Corporation acquired the monopoly in the import of goods for Government departments and Corporations. In 1972, Sri Lanka and the People's Republic of China entered into agreement to operate a regular shipping service between the twa Countrics. In the following year the Government passed an Act to control the activities of Shipping Agents and also to prevent the formation of rings by them. Besides, the saite Act elpverell the Shipping Corporation fo charter vesses on behalf of Government Departments and Corporations. By the end of the last year the vessels chartered by the Corporation had increased riidly. Towards the end of the last year the Sri Lanka Shipping Corporation and the Sri 藍 Ptoleil Corporation jointly formed the first Tinker Company and today it handles 14 of the crude oil imports of the
24,
recently was the es Colombo Dockya construction of St. local requirements
orders.
The optimis Tı Ministry when it Lanka Shipping C. was justifical by th earnings of the C. Rs. 43 milliol in million in 1972. C. the foreign cischar government durin of its operations
US $ 4,7 millio 1. Colombo"s. Port
Il contrast tith ration, the ports of in importance as change e:1rners sir the immediate post in titri 13 of till: Er she handled, Colo: the world's fifth great attraction of ping however, W. commodity trade. 器 positioni aflel als Because - amı :fficient port a. of shipping caller shipping services.
In the sixties,
imports and the in th: woult of less sluipping for til Whili: ric cligure resulted in di f'Wei calling for scr Wici the tollime tjË
Clli Cintillule while the re-ope Cintallast Illth E of reviving Color of citi II. i
Since the Clogure: Ehe size fälm st chant ship his instances dra Initi tanker of IIa, a gate the canal in of 70,000 tons full giants these are ulimits. It is inti eyi Overseas Coltai

ir important Step hipping Ministry tablishment of the
ls Ltd. for th: el Crafts to Tlcet as well as foreign
of the Shipping
establishe thic Sri rporation in 1971 te results. The net Jrporation roset)
г974 from R8. . }n the other hand ge savings to the g the fyllir y Cal TS
approximated to
e Shipping Corpo* SI1 蔷 major foreign exCe the Sixties, 111 El World War years, innage of shipping Hibo alone rated als cat cort. The ဦးူမျိုးူ for ship15 not due to her Because of her Il te TCI)CCLII if her reputation as significant volume at Cill F.
the restriction of gradual contraction сxports demanded ne Commodity trade Ljf the Suez Canal number of vessels 25. The trands in cargo handled at d into the seventics ning cof thic Sul.cz rought fresh hopics ibo is a major port
of the canal in 1967, covery class of merпCreased, in some cally. In 1967 a tOlls Could mawiallast, and a tanker Iyaden. By today's relatively III lodest El clicar Whitchcr tille lars largest vessels
could pass through the canal, since these good ton ships draw 42 ft. in fully laden. Unless the Suez Canal Authority deeplens the Canal to the required depth these vessels would follow the Cape route. And unless Sri Lanka oficrS SLI fficient indulcements in cargo it is very unlikely that vessels taking that route would call at Colombo for services only.
Another Factor to be taken it account is the improvenients in the speed of vessel. A qualifying point is that speed in this context primarily means the rate at which ships and cargo can turn round in ports, rather than merely the vessel's speed through the Water. For in the mid sixties it varias discovered thit many vessels were spending two thirds of their time in port. To meet this requirement mðst modern ports havic invest ed on container Gantry cranes such as Portainers, Transitaine:r:5 a Ind Stradde Carriers. The Port of Colorillo is still mot equipped with any such equipment. Although in the recent Prast the agents as well As the Principals of Shipping Companies have commended on the specd at which wessels are handlel at Colomb) it may not be possible to maintain the same level of efficiency in case of an increase in the flow of traffic.
It must also ne birinc in Imild that Colombo now has more competitors thin before. Because of the coming of the faster vessels, Colombo can no longer rest on its advantageous geographical position in the trade routes of the East to attract shipping tÖ it: ; harcs. Be it Ellel or Water, repairs or harbourage, there are wellcquipped ports in close proximity to Colornbo offering officient services it eCOIIOInic faites.
Nevertheless Colombo Carl le:LTT1 lessons from history. In the latc. thirties Colombo lost annually 10 to 20% of her legitimatic trade to Adcil and Karachihi due to their providing shipping services it more economic rates. Consequently, to win back the Lost trade measures such als the reduction of rates charged for water, coal and docking fittilitics and the construction of an Inner Graving Dock for smaller Wessels werc taken. These measures were not without results. By the early fifties Colombo not only regained her lost trade but had even exceeded the pre-depression volutine of shipping she handled.
FCO NOT REVIEW LILA. I.

Page 27
FEATURES
FRANTZ FANoN.
National Middle (
Ranjit Gunawardena
S SSeSeASe SekeAeSeSeASeAeSeSeASeA SeeSe eeSeSeSeSeSeSeSeSeSeSeSeSeSeAeSe eAeAeAeLeAeLeA eAeAeAeALSeeeSL eAeAASSLAeA eAeAeAeAe eAe AeS ee ee eeee eAe eeeS
AT S TCCCT TLTTGGCCLCTCCCCC L LLLL LLCCLLLLS SY GGLS CCTY Tk HT T LCTTTT GGmLCCLHHLLCCTL HHJJJSLLL G SS CCC L LkLkLS
சி: Wil r r y : prg
Twenty years or wore after independence was achieved Mway rơitary frier 7 7EF1" Frygiad of que fifia Ying of the Prior File Third World. Orte af fare earlies i fa da Fruch ar
prefirror of the zygod of the Third World in the 197. LTLLJS LT GL HLHL LTTTCT LTCTGmSLHHLHHLTGGLTS LLLLLL : y : Third Fr r: Ray ாே English of the Larriversity of Sri Lirika sammad awarg 4 Tre Sisiljada fra F.Flaifiafir gy" The Faer Pablo Nerrada.
AeLeAe LLee AeAeA AeA AeAAA AeASALAeA SAeA eAe AeS eA AeA AeA eAe eeS SASAeASAeAeA keAeAS e eASeAeeAeA SeeeSe eeee e eee AeA eAeA ee AeAeeSeee eee eee eA ee eeee eAeA ee ee eeeeS
“Not so long ago, the earth numered two thousand million inhibitants: five hundred million file, and one thousand five hundred million natives. The former had the world, Llle others had the Lise of it, Betyeen the two there were hired knights, overlords and bourgeoisie Sham from beginning to crld, which served as go-between. The European Elite urld I took to rnatili Picture a natiye elite. These walking lics had nothing to say to their brothers'-Sartre's HLLLLLLL LLLLLaL LLLLLaLLLLLLLaLL LLLLLLLLaLL LLtttLL the Europeanised clite remains valid even today-though this vitriolic Piece was written by hir 11 nearly twenty years ago as an introduction L S LHLHu S LaaaLaLaatt iS S SLaL L LLLLLL of the Earth”.
Before independence the colonised world belonged exclusively to the
PECONCO24 IC IREVI F.W. JULY 1979
Colorniser: a litr ised world is : question is wil betweel til rulli masses of thcp Superficially yes til Teation G rer so called change introduced to Summed up by I
- of his style of w thilt 'at whate', relationships ber names for Spor admixture at C. Police, on the
national private tion is quite sin a certain specie: species of mer manufactured it their lasters. A

on the
Class
orial leadership
colorija, paper.
:ற்காக ஆரி விசாரச் சரி : ' Fr: гал irporfл: J":Ir"Ilg##; faFIéße.r
| Er rar.
مدينة
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gic part of the collofrce today. But the lcither the relations ng elite and the wast eople have changed, :-but fundamentally r:lin. Elle 5:lile, The which independence olonial countries fire "anon in min indignant hich is characteristic riting. Fanon writes er level we study it ween indiwiduals, new ts Clubs, the human cktail parties, in the directing boards of
banks - decolonisamply the replacing of 5 of men by another ". The European lite togglk - Wczo From
ind have established
themselves in all positions of power.
The struggle for independence, the struggle against the coloniser could Illot be carricd "WithoLIt the factive participation of the masses. The active participation of the masses transformacid man almal worman who were passive observers, sunk in the depths of apathy and ignorance into active participants of movements which shaped the destiny of their lives and their country. This inner change, the psychological transformation was observed by Fanon during the Algerian war and he records his experiences in "The Wretched of the Earth'. "It transforms spectators crushed with their inessentiality into Privileged actors with the grindiose glare of history's floodlights upon them. It brings a natural rhythm into existence, introduced by new tiltin and with it a new language and a new humanity; the thing which has bcem Colonized becomes Iman during the same process by which it frees itself'.
A Spirit Burned Out
Did this inner change, radical transformation funda Ilenitially charlige aLLL LaLLL LLa aLaLLCCHLHHLLT LLMLLLLLL LL
ost colonial society. The tragedy of it was that it did not effect the changes Fanon envisaged. This inner changc did occur-during the struggle, when the energies of the entire nation were concentrated and directed towards a single goal-national liberation. But once the struggle was over, liberation achieved, the revolutionary spirit and energy among the masses
25

Page 28
simply vanished. The leaders of the trate and exercise struggle instead of making the masses powers, political Partners in a further striggle to re- thing-and one thi structure society, greedily grabbed serve the privileges the entire share of power into their this all consuming
will hands, all their cncrgy, the
conditions of the Instead of mobilising the revolti- daily. The lack life tionary spirit and cinergies of the the total absence masses which were aroused by the targets, the abse struggle for liberation towards build- planned out projec ing a new Society, the leaders mani ce-Ordination betW pulated them for their own ends and ners and the abse fentled theti Out of national life, or shot-terIIl cco In these circumstances the revolu- cially felsible Pla: tionary spirit, the new sense of attributed to the identify the misses experienced but l- of a ruling clique editself out within themselves. They the imselves. It is lapsed again into their former state of that Fanon calle lethargy, and became passive obser phase-a period of vers and passive victims manipulated by their leaders who had captured Middle Class In power through the stolen victories of the Flasses. It is this power elitc. Fanon gives a which is in power today in Ilian: explain the total ecolonised ories. The moral middle class to corruption, political bankruptcy, E. The na hypotis of this class provides the in the West-the pi subject for an entire chapter in "The " . dynamic Withed filial Here one Trents that "the t cannot fail to see the political actinen that For the last F. of Fanon, his political maturity is raise "uncEncy er ti shown in His uineffing judgements. developed countr
Cission whether geoise plı asc Can | EESereli litionary fictijn :
His political awareness is evident in the correctness of the predictions hc Irlade as far Hack as 1554. Fanon T ise D connecci that national conscious- 'S' P mess, insteid of cing the all em- ped CLIt is ill bracing crystallization of the inngr- as the n most hopes of the whole people has sufficient Ston instead of being the inmediate ani stregat? 1ğlı ildli most obvious result of the mobili- Cite the Cørld
zation of the Peoplc, will be il any the development. case only an empty shell". He observ- :hi:: - IIլըtii in! cd that thic traditional weakness, Finally to make טק which is almost congenital to the Fil:Luthel til 1:1 || national consciousness of underdeveloped countries, is not solely "A bourgeoisi Filmutilation of the which develgredi colonised people by the colonial elaborate in ideol. regime. It is also the result of the title strengthen t inflectual jaziness of the national al bourgic)sic, din middle class, of its spiritual penury", secular has filly undertaking of th capital and hills : minimum of prց:
Each group within this power lite developed Countr tries to grab power for themselves, that to true bour They hawe nothing positive to offer is only a sort of to the masses, nor are they interested, alwil-Li1l , Trailou since their one ind only nibition is to a huckster, only grab power for their own group, the dividends th: it he groups within the elite concen- rial power hand
Period of in possible Aridity
26

their intellectual perience for one ng alone-to prethey enjoy. Since desire takes away - economic, social asses deteriorate tonomic planning, clear economic ice of carefully is and the lick of een national Planince of lang-terim nomically and soining can all be Crass self interests interested only in for these reasons the bourgeoise impossible iridity.
capacity
Hrյther railstylլ է) incapacity of the juild Elle Ilition's tional Filidilla class ancers of capitalism |ass. Fanon Lomerpretical question fty years has been e history of underics is indler lisՃը ոք է Լիբ է ՃլIIbe skipped-olight thig Field of revoLld not by logic. äsein underdeveloonly be justified tional bourgeoisie Imic and technical bourgeoise society, tions necessary for of a large proleže agrigLilLLIre and sible the existence
onal culture'.
similir to that 1 Europe is able to gy and at the same heir power. Such linic, educated and succeeded in its c # CCLI Illilla Lion of iven the miLtion il perity. In underhive Seen טes, W coisie: exists; the te little greedy caste, t, with the mind of O) glad to accept the former coloCutti E. This
get-rich quick middle class shows itself incapable of great ideas or of inventiveness. It remembers whit it has read in European text books and ill perceptibly it becomes not even the replica of Europe, but its cificature'.
"This bourgeoisie, expressing its mediocrity in its profits, its achievements and in its thoughts, tries to hide this mcdiocrity by buildings which have prestige value". The national ille class suffers from in acute inferiority complex. They take over the image of the European middle class. This is the model on which the lational Imidlale. Els Erics to III1JLE ld i ES Clinist Tii:Cter Structure and life style. In this desire to imitate and emulate, that they was te away millions on prestige projects like luxury hotels, expensive chronium plated cars and incon lit night clubs.
The well-being and the self-confidence of the national middle class depends on presenting a favourable image and earning the recognition and admiration of its collinterpart in Europe, Fanon once wrote that the Colonized man is a TT1ăn Of Con fräst. Each under-developed nation Competes with the other to show that it is more refined, Cultured and economically developed than the other. Fanon's very perceptive observation explains the useless crpenditure pat: teins in many under-developed countries. Priority is often given to projects which would inflate the ego of the middle class. The concer for the masses, specially the rural masses seems to be Flirtillest from the minds of the national middle class, Countryside is neglected and the peasants are allowed to sink into the depths of economic misery. This is because the lational middle class is essentially from the city, and for them life does not exist outside the narrow confines of their well protected seats of privilege.
When Language is Power
Il Black Skirl and White Masks Fanon obscrved that language is power. In man ex-colomised Coultries the language of the coloniser is still confined to the privileged national middle class. The masses of the people are denied the opportunities of learning the colonisers'
ECONOMIC REVIEW, JULY 1973

Page 29
language, Language is also used as a "!!!!!!" 器 exploiting the ignorance of the masses and to keep their privileged positions unchallenged. The intellectual equipment, the revolutionary ideology necessary to challenge effectively the power elites, are sitäll costs Hidden From the Iliasses. It is by learning the language of the Colonister thät the Trasses will discover the radical, revolutionary ideology inherent in the Western tradition, Language awakens the awareness of the masses through an exposure to new experiences, deepens their Colsciousness by rinking the II) AYWATC of the revolutionary movements in the cutside world, New ideas, new experiences make them avva Te of their own revolutionary potentialities. It is precisely for this reison that the national middle class liscs the most deceptive and cunning methods to keep away this cxplosive instrument from the Ilhasses.
So long as language is the propcity of the few, knowledge too can be used to exploit the masses. The initional middle class "draws colomic rent on knowledge'. Time and again they speak about the importance of learning the coloniser's language. But it is not with any seriousness of purpose or intention that they deliver these long serinons on the usefulness of mastering the language-specially for higher education. They feign and simulate a grave concer, and work out various spurious and use: less "language projects at the level of the school and the university.
Hypocritical Talk
When the massics voice their demands for Further knowledge, to expand their intellectual horizons, the national middle class always responds with answers which casily
satisfy the masse. Tiddle class irl A obstructs the tTa 15 experiences into uage. Thcir hi obvious clough b use to denegrate extremely slylands thic cleifi iaith dis; beck, resorts to cheap In a cynical mai of any privileged to tilk about the national heritage, traditilal culture denounce the W. cy Crything takerı These vilcit dia cvil, corrupting West, arc often cffective and apped ad racit: ii T:tLT pristine and pure saw through this hypocritical tall.
Il ''T. Witt hic Fouts his own o clear tells, and of thic litional I wrote "I I read on the: plane of fac Existerlice of an Azt поt change япуth Es ist f thl W. today, I admit t of a wildful Si will not change t the Songhais are u rate throwil betw with empty heads
Hic Comments thenile "From the Senegalese to the Yolofs is not a big everywhere that geoisie has failcd to the peoplc as a
SeAee ee eLe ee eeee eAe eee eeLee eeee e eee ee ee eeee eAe AeAeAA AAeAeSeeeeeSeLSLSeSeSeLSeSSeeeSeeeSeeeSeAeAeeSeeeSeeeSeeeSeeeSeee eeeS
T HHH HHHHH G GTLGLLu LLLL LTTLLL S LL LLLCLLS LLLLLL LTLTLL LLL LLL LL T uL HHH L u GuLTTCL TTTGLLLLLLS LLTLTL LT LHLJSLHL GLLS LGGGLuLGGLT uGGLL LL GLG LTGLSS LTmGGLT GGmLLL LTT LLL LL LLLLL L LTT TLS uTTTuCumm CCLT TL LSL LGG LLLLL GuTCG mC mkLumumTTuS LT GLL LL GL TTT LLTHuHCC uH L ukyLCLLTL Ju C T GGmTT S TTTLSS S LS LJ LCLLGGGL LLL CCCSuTTCC LLLL LLLLLLLT LLLLT CGCLm uTu LLJ J GGS CLH GLTL LT TLuTyTT u L uCuCCTCCLLLLLSS TT LkLTLT kkkLk Lu LGGGGTuu TLLLL LL LLLLL uu TLCLL S GG ukHkLkLCLS LLTLTLL kkk r:ர்g ராச ராஜர்: Tது T Tர்: LLCCTuS LLL TLT CHCCG LLLLLL LLu LGGmLLT TTuuCCTuCTCCCLLLLLLL LTT LLL
dignify. (fror y Farnor’s “TWretched of the Earth”).
SAAeLeLeeLeLeeLeLeeLeLeAeAeeAeAAeeeAeAeAeAeeeeAS
Éco Soy II: REv i Ew, ITILY Tg7

5. Thic national city subtle way lation of ideas af 1l he national langdden hostility is ut the táctics they such ventures are urreptitious. When Inc too heavy it demogogic táctics. 1rler Chariç türistic castic they begin greatness of the the uniqueness of They begin to st sind Lindgrill FUT till: West. tribes against the influences of the couched in very ling phrases. They 1 to the lation's traditions. Fan CI1 vulgar cı ilıt Sınıqlı
ned of the Earth" bservations in Very els of the Bluff Tiddle class. He y to concede that tual being the past ec civilization dies ing very much in sexican peasant of hat all the proofs Inghis civilization he Fact that today inder-fed and illiteeen sky and water
and empty eyes'.
Further on this chauvinism of thic trial511 F til: step. For, in fact, the national bourto break through whole, to enlighten
thcm, and to consider all problems in the first place with regard to thetit-il failure duc to bourgeoisitos attitul CF mistrList ad to laziness of its political telents-everywhere "where that ratitjäl blirgeoisie has shown itself incapable of extending its vision of the world sufficiently, we observe a falling back totyards öld tribal attitudes”,
Natio Culture
The continents Fanon makes on national culture will help to focus attention on a problem which has LLLHa tLLL aLLa LLLS LLL YLLL YGLJJJS "The nation gathers together the various indispensable elements necessary for a creation of a culture, those clcments which alone can give it credibility, validity, life and creative life. In the sane way it is its nitional LLLlLLLLLLL L SSS S LLLS HDLL S LLLLLLL S S DLaaaL S S culture open to other cultures and which will enable it to influence and periheite other cultures". IIլ էլ Speech given in Rome in 1959 Fa non resolved this problem which has conFLII Feel fırıldı. İmişled the Lasses. *F man is known by his acts, then we will say that the Ilost urgent 醫 today for the intellectual is to buil up his nation. If this building up is title, that is if it interprets the manifest will of the people and reveals the cagor African people, then the building of a nation is of necessity accompanied by the discovery and encouragement of Universalizing values. Far from keeping aloof from other nations, therefore, it is national libpciitation which leads the militi 011 t0 play its part in the stage of history. It is at the heart of national coilSciolisile:53, that international colsciousness lives and grows, and this two-fold emerging is ultimately the source of all culture'.
SeSeSeSeeSeSeeeSe eSeSeeSeSeeSeeSkeASeLeLeeLe LeeeLee eeeee eeeSLSLSeeeeSekeLSAk eASe AeLee eeeS eeeSAe eAeLeeS eeeek eAeAe eAe eeS eAe eeeSeeeeLSeLeee eeeSeeeS
CLCTlTTC TeTuTu TTTTTLL LTLLLLLT T L LCGLGLLS L S LLLLLLL LLLTCCCCTS CCTTkuTCSS HH LT HuTCT HLLL HH HLH TTGLS GLLLLS CCCCC LLLLmLL LLLCL L TT TT TGGGGGTS G LLLLLL LLLLLLTTTT T S LLkuCCuuS S Tu LSLS TTTCS LT TTTTS HLk kkLkLk LLLkLJT T kLkTTTY CTCT rrurLuTGGylTTLLLLL in Yoing People's Federafior, Trade Union, etc. Biff fore 0LLCCLLLLS CLLLLLLS L LCCuH LLLLL LHLL CHLCH HLGLL LLu LCuuLu uuLLLLS
rς απει ήδε θέμίγ ............ Jail ta prirrforJward imrew idea..
The Brarch Free tirg a Tad the rry PY
i di gi . ੬ ਵੱ7 uu TLLL u TTTTCC LLuLuL LLTT LLLLLLLLu Lu TTTTLTuT uuHLT TLmmL
27

Page 30
S INDIA A TEST-HOUSE
FOR
BOLOGICAL
WARFARE2
Are Indian scientists and technological policy-makCIS cautious enough, and conscious enough, to scrutinise all collaborative offers-even those coming from such agencies as the U.N. before thcy lap thern up This is the question that the Public Accounts Committee (PAC) of the Indian Parliament, headed by Mr. Jyotirmony Bosu, has raised in its 67th Report presented to the Indian Parliament on; oth April 1975.
The origin of the PAC inquiry dates back to a Press Trust of India (PTT) Teport of 29th July 1974 "bringing out the serious concern in scientific quarters over some research projects being carried out in the country by or under the auspices of the World Health Organisation (WHO) under the conditions of total secrecy'. The projects were the Genetic Control of Mosquitoes Unit (GCMU) near Delhi, the Ultra Low Wolume (ULW) spray project mear Jodhpur and the bird migration studies conducted by the Bombay Natural History Society (BNHS). The 'concern was raised on the basis of suspicions that these projects were, in fact, a camouflage for conducting research on Biological Warfare.
PTT's investigations were conducited by its science correspondent Dr. K. S. Jayiraman over a IS. month period beginning in April 1973 when he was denied access to information on details of the GCMU Project. The denial had Corme Friðri WHO officials in India, Dr. Jayaraman wrote a 'general story and then started looking up scientific literature on this area. In February 1974, German News, published by the German Embassy in India, reproduced an article by a WHO expert Prof. H. Laven, considered to be the father of the genetic control method and who had worked earlier at the GCMU at Delhi. Prof. Laven's
28
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l regr ir raggy for War 5. கீற்: shg specially the life in the deterior - iT
greer fra ir 55 C fra 20. ir hsarju liri the I; wwory difriyyygуудад ಙ್ಘೆ ಘೆ;
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article Said the : a total failure and the chemicals Hei tremely hazardous the Americal pl G, D. Brooks Wa he issued it "deli mised to back up clearailce from quarters at Geney. Prof Law cru's artic denia. The WH canje. Meanwhi il Come Cross IBN HI's bird mig WHO said it did of thic study. Th the Report had b. Army's MAPS (. Pathological Sli kok.
PTI sought in Lilliam Curicil ) (ICMR). Nonc Tisel "yrcCre: ;4.I1:5"yyT taken to the II intecriw" YW13 Health Secretary denly cancelled. the while Story july 1974,
Next day there tion Motion in fering to the PT Minister of Heal ning characterisi as "tendentious, leading", the Pul little of the I. exanine in detaill and other relate
ittee esined the Health Min Geral OF H. Director Genera Dr. T. Rillacha Ebleem officcr-in-cl Fre retirell, Mr. C. Raghav
 

India the
criment had been also warned thill E ng used were ex
to health. Whel occt leader, Dr. s asked to clarify, all’ which he Pro
With evidelice on the WHO heldPTI carried both tle and Dr. Brook's (C) Cälill: levyici le, Dr. Jaya raman WHO's support of ration study. The not have the report cml i ES File:S showTcd citi sīt to ī: LS Migratory Animals cy) office գf Eang
interview with the F Medical Research of the questions tred. When, it was inisterial level ail Lrranged with the which was stillThic IPTIreleased on its own on 29
was a Calling Attenthe Parlial cut restory. Despite the h and Family Plang the press report
unfair, and misIllic Accounts Comİlk Sabığı decided to
the GCMU project issues. The Coll
representatives of istry, the Director alth Services, the
of the ICMR and 1dira, Riad, who hard arge of GCMU beAlso cxamined were in, Editor-in-Chief,
Ffiary %s'acadezirir collarriallir ray” baş heer raired TTT uu LTS eLGLuCLT TTTS LSLS CTTLLTYLL LLLLLLTTT lGGLT LLLLTGmLmm developzwerf proces haf heen ligilighfed. Mary activisies, uTTTTTTmTT TT TTLS TlmCCTTTL L LLTLL LLL LLLL LL LLLSTu LLL0000S SLT LL LLLTT LLLT TT TTTGGLT TT LLLL G LLuT HCLS :) - :fr i :) bigri:
4 : :e Wairaied i b pr: 20lligari, y in Tier, 14: 6 : ர :Wi li, Mத் :ாது lly fihe groei'th of a dependert irwifa five acaderivia.
PTI, and Dr. K. S. Jayaraman, Science Correspondent, PTI.
Whether Biological Warfare experiments have actually taken place is still an open question, That they could have been was suggested by the PTI witnesses (on the basis of published evidence elsewhere); the Committec did not exanine any other experts (except drawing admissions from witnesses from the Departillent of Health that pest control experiInents arc Llso liminable to Biological Warfare experiments)
Public Accounts Committee
The PAC's conclusions may snack of over-zeal, But our interest in the Report lies elsewhere: it is the number of oral testimonics and Written notics submitted by various governmental departments. They did not think there was any risk. They did not know of any risk. They did not act upon warnings because they did not consider thern serious enough. They did not know why Delhi, the Capital City of the Indian Union, was chosen when Madras would hal We been 11 Ore Suitable, They did mot know why science projects financed by the US
Department of Defence should be so
consistently placed in border towns of Rajasthan. They did not inquire why six out of seven project leaders were non-Indians, though there were better qualified Indian scientists
Lround.
Relevant portions of the PAC Report are extracted below. (The figures in parenthesis refer to the chapters, sections and paragraphs in the PAC Report),
Conclusio Tills and Recorin Ilendations of the Public Accounts Con III nittee (1974-1975) 167th Report: "Foreign Participation or Collaboration in
ECONOMIC REVIEW, JULY 1975

Page 31
Research Projects in India' (Ministry of Health and Family Planning), (Dept. of Health)
The examination by the Committee of some of the research projects in the country conducted in collaboration with foreign organisations raises a number of interesting questions. The Committee finds that the Genetic Control of Mosquitoes Unit project (GCMU), the bird migration and arbovirus studies at the Bombay Natural History Society (BNHS), the Ultra Low Wolume (ULW) spray experiments for urbán malaria control at Jodhpur, the Pantnagar Microbial Pesticides projects and some of the research projects Lindertaken in West Bengal and Natangwal in collaboration with the John Hopkins University establish beyond doubt a
definite Pattern. TI of foreign gove cases explicitly m these governments ducting basic rese scientists and Ind nisations.
EVET1 i T1 case:Š v 8 Carried ult il Phila rithropic civ from abroad, the that still of thes Stations als Hawt: сопшти пication at military agencies.
The utility of . jects to India, es: Project, si Cerms to of potential, wh data obtained fro
the (GCMU) project which has
tee is displayed by the Ministry Health towards the entered into between the WHO All the US authoritics provision of PL-48c funds for the project. As late as January 1975, the Ministry had becn under the
one agreement between the WHO Lind the U.S. National Cormillimicable Diseases Center (NCDC) which was to cxpire on 31 Deccmber 1974, while the agreement between the Gowctrict of India and the WHO was to expire on 3. Junie: I 1975. It was only at thic instärict of the the Ministry mide a reference to the WHO to ascertain the correct positio II. . . (7. II, 15).
ment executed between the WHO and the US government effective for a period of six years from I January 1969 to 31
"Another distressing feature of
colle to thic notice of thic Committhe complacent attitude
f
ag ICC-mčinit
for the
impression that there was only
Comitte: ht
"The Ministry have only now corne to know that the initial agree
Oecember
1974 had actually been modificd twice. The First modification was agreed upon on 3 July 1969, which
ECONOMIG REVIEW, TULY 1975
The Secret Pact between WH
Gονεrηrηent
ämneilled thie :Hf the agreement commencing fro A third agreeme Junc I 97T firth period of the F from 3 July 19C I975, 50 as to C. expiry of the ag WHO å til India (7. I. IG).
"Surprisingly
before fresh pi Continuance of
India beyond a been initiated by US (Gyrill Titel signed a fresh ag II WHO als early is extending the ei thic GCMLI proje
I978. This, E. even knavn to t| tary himself. TI
indicate the axi of the U.S. Gowe mille the project 1975. The que: fore, Lirises is: prompted the U. extend the projec .(דT.I.7)

his is that, agencies rnments, in sume
lilitary agencies of
i . . . Hlave Beel COIlirch through Indian iam Scientific Orga
Zhere such res catch collaboration with ilian organisations : Committec finda c 'civilian" organi
äctive liaison and
several levels with
ione of these proecially the GCMU be only doubtful
ereas the primary
in these projects are
O and US
:ctive period of to three years, ті, 1 April 1969. :nt sigr1cd on 3 er årnended the broposcd project 9 to 3 oth June incidic with the riccillelt bet Weem
Government CF
trլough, everl oposals for the
the project in
June 1975 have
the WHO, the had already LL-Illent Will Le i za Julme. I 1974, Ffective period of it up to 30 June Er wasn't"יטי"ליטן lic Health Secrehis would only ety On the Pärt TITLIE: t t I lt ILbeyond 30 June stion, that, there"What could hawe S. Goverintinent to on their own?"
likely to be of vital importance to foreign governments interested in developing techniques of chemical, biological, bacteriological, herbicidal and Anti-Subversivc warfarc (7.II, II).
... What causes surprise to the Committee, and this ought to be a matter of grave public concern also, is the lack of security consciousness in the Indian agencies involved in these projects and the casual attitude and indifference towards foreign supported research in India (7.1.2).
The GCMU Project
The selection of Delhi for field studies on Culex fatigans (mosquito) is also shrouded in mystery. . . . .(G#.1.ד)
Equally intriguing is the selection of Soncipat for the field studies on Aedes aegypti . . . the WHC) teä ilm had Considered the Delhi Area a5 unsuitable for field SE'Lucilics on Acdcs aegypti and had felt that an arca in the east Coast of South India Would be more suitable . . . (7.1.2.2).
... Considering the military Potential of the studies on genetic control, the Committee would like to be Satisfied that illo extra neCouls considerations have influenced the selection of areas around the capital for the studies. . . (7.1.26).
The Committee wicws will scious concern the use of a hazardous chemical, thiotePa, to stetilise mosquitoes before releasing them in the environment without clearance from thic Drug Controller. The Committee understands that thiotepa produces mutations, cancer and foetal defor
ities ... (7.I.27).
. . . The Committee is not happy with the way in which this chemical has been used in wells in Delhi, thereby posing a potential health hazard. In fact, in India itself. Defence scientists, Who had alsa Conducted mosquito control experiments and carricd out a careful scrutiny of the clative merits and demerits of various gcnctic Control nethod, had come to the conclusion that hazardous chemicals like thiotepa, which is cytotoxic, used for cheinosterilisation pose the danger of polluting the cnvironment. They had also held that chemosterilisation does not completely steri.
29

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30
Who was the Beneficiar
Thc Public Account:5 Con liittec Report has raised a scrious gucstion about the GCMU proiect "Whether the GCMU project itself is only a covert attempt by a foreign government to conduct research on techniques of biological warfare? The Unit has been primaarily interested in the collection of data on the Ecology and dispersal of Indian mosquitoes,
particularly Aedes egypti which is
stated to be a vector of yellow fever. Enough published evidence cxists to show that some of the methods tried out by the GCML have defined implications in biological warfare, (7,1144)
"For instance, the Committee Finds from the Report of thc Hearings of the US Congress House Committee on Foreign Affairs, which has been published under the title 'Chemical - Biological Warfire US Policies and Intciniltional Effects', that "mosquitocs and ticks are transmitters of diseases and as vectors should be looked upon as having potential military significarice". (, 7. II, 45 ) There are als a n Limbur of references to these of mosquitoes in biological warfare in a report submited to the late: UNSecretary General LJ Thartin 1969 byl specially constituted group of consultant cxperts on chemicáil and biological Warfare. This report points out that "any country that resorted to bacteriological (biological warfire would try to infect, with a single blow, a large proportion of an enemy population with an exotic agent to which they had not become in milline through previous exposure......... In addition, a diasese Whichhad been controlledorerdicated from any area......I light be re-introduced as a result of bacteriological (biological) warfare". (7. I.46)
'The same report further states that "the gravity from these risks (from biological warfare) would depend on the extent to which the community or the species in the
country attacked were not only
susceptible to infection but also
were living in 50 cl, ship with each ot infection Could beco. For examplc, not species can bc infe yellow fever virus. disease is to beco those (mosquitoes) cole vetismist on rammals such which are sufficier to infection (7. II, 47) the desired combiable Aedes ācgypti i monkeys. This wo irresistible combinat who II light Want to yellow fever virus i
...(4)
*There is als: public information
F the USA in the virus as I poten weapon. The rep that this wirus is BW agent and is ki COJ... {7. I. 49)
"...... Terce : ages in the use of IILOSq II toes as Car gical Warfare agent ...BW agents can aircraft but they ar. unless inhaled and, may be destroyedl) the Sun's UW radi: may throw them to drawbacks can b. using mosquitoes. as carricris. As Ilir is carried by a IIc Lain will not affic: what BW agent into the blood by bite. The SIPRI #ịch such infected minute 5 clf-dispc. (7.I.so)
"Since the usc in EW Աrւյuld Էը if their behaviour, and ecology are hand, the Comm opinion that it is information that is able to the U. through the G ments...” (7,1.5 :

y?
se a relatiónHitler that the meestablished. all mosquito icted with the and if the established, which cal Eceed frequently as Ilonkeys tly susceptible ......India has lation of suitTiscuitoes and uld be: a lit) ion for anyone introduce the nito the collin
| consile:Table: on the interest : yellow fever tial biological Drt Points out it standardised nown as Agent
{{:ựcrā| #dự:1ĩ1[=
irthropod-like ricers || CF Etiolajis like it lists... Je sprayed from e not effective
besides, these y heat, rail or itio El or Wilds course. These : rei Tuedied by för Utler Insects ng as the virus isquito, heat cor it it ind also is induced right the mosquito's
Report called | arthropod a
sing wcapom.”
Čof 1105 quites possible only habit, dispersal known, beforelittee is of the precisely this becoming avail3 Guvernment CMU, ex Perit).
lise female IIlosquitoes, thus leaving such females released in the field to produce mutant progenies which could also bc dangerð Lis (7.I. 28).
... The clearance of the Drug Controller was not obtain cd by the Unit on the ground that the public LLlLLLLLLS S LLLuuuuuuLLLLLL LLLLaGttLLLLLLL SS LELtaLS LL LLLCLLS sidered to be negligible or nonexistent. The Committee deprecates such casual approach to this question . . . (7.1.29).
The Corninittee is also surprised that the Ministry of Health should have been ignorant of the work done in this field by a Defence organisation and should hawe got to know of it only after the Con Inittee raised the point. Such lack of co-ordination on important projects between different wings of Government is regrettable. (7.T.31).
GCMU-Questionable linte:Tinti Ons . There is also considerable published evidence on the dangers of a new colony of "უჭ"აჭ5 being established as a result of genetic experi III ents. The Defence scientists had also pointed out that the use of cytoplasmic incompatible strains inwolves "the introduction of alien strains of the species into the country giving rise to the danger of opening Avenues of new diseases into the country with potential uncertainty and serious risk". In the face of such unknown hazards, the Committee is ttaaLLaLa DuHHHHLLLLLLL SLLLLLS SLLLLL S LLLLLL release genctic strains of mosquitoes into the environment was justified scientifically (7. I. 33).
... The Committcc is also unable to appreciatic the Frcoccupation of the GCMU. Projcct with the Aedes acgypti species of mosquitoes. Aedes aegyptiis said to be a vector of yellow fewer and while the occasional outbreak of dengue in haemorrhagic. for II in one or two cities in the country is ... fairly insignificant yeltHLHHL LCLLLL LLL S LLLLLLaaLLL HLaaLL LL aLLS existentil India. . . .
. . . It is also of interest to lite that cyer the WHO hid not stated in their Scmillars held at Manila, 5 aldi Bangkok, that thic cradication of the dengue haemorrhagic fever could be achieved by the climination of Aedes aegypti by genetic control micthods
T.I.3). 7.I.34) To be concluded).
Corresy: Scierce Today
- - Η Τήπgς υ. Τπείία Ρίίίίεπτίλπ.
ECONDI, III: RETI HEYA", LELY 1975

Page 33
PSYCHOLOGY C
ADAPTOLOGY
Indian Council of Social Science Research, பிாது g Rer i Py:து, Borrby, Papirilar Prakathair, 1972.
Reviewed by K. G. Agrawal
Children learn by imitation. So do Indian psychologists but with one difference: while the young ones learn new things and unlearn little, the psychologists forget all about themselves in playing the sedulous apes of the West. This year when the Indian Psychological Association celebrates its golden jubilee, they are busy adapting tests and instruments, theories and models, therapies and traits: all 'phoren' and imported, even smuggled in the baggage of returnees from the United States. What we fancy as Indian in this area of study is nothing more thān an attempt tổ reconstruct psychology out of (ancient) systems of philosophy: even here most psychologists have a definite bias against Lokayata systems as they were pcople's systems, not sanskritized enough to be acceptable to thc bhacral lok.
Psychology as taught and practised in India is an imperialist legacy. Till mid-195gs it was dominated by teachers of philosophy for whom the Indian mind was not as potent as its occidental counterpart, The innovations in the methodology of psychology in the West were restricted to fashionable drawing-room discussions on Frcud's sexuality or the mindmatter dualism. When the Ministry of Defence started advertising lucrative positions in the research laboraLories and on service selection boards, university departments of philosophy introduced psychology courses.
The second phase in the development of psychology was inaugurated by American universities offering attractive studentships for graduate work oni completion of which most of the psychologists found jobs outside India. It was then that students who could not travel abroad began doing their doctoral work here, The
ECONÓMIC PEYI EWF, JUILT I 975
research guides I960s were not And Wresuld sk t take up a survey problems or atti
test. At the Eric
StLudents; hurriet volume (which C1 rath "y":55, 5 est: - examiners who TEE ETEcoll a degree.
Phase Three advent of Foreig editirim85 TF 5 bJ.Jol;5:ñrıei Bror American borks independent thini side the country was easily on ta] än littituudill si shed but mot Fo research. Plenty forthcorining foi togo onlecLuire clandestinely spc. in U.S. universi
ICSSR. Overvie
The Indian
Science Research dition of an COIllinissioned tt mike i revit:"y : iri speci Hic areas : loths st the overviews call them) and w than forty psyc cussing these dr: clearly indicate, t seeited to have the relewailt mät them variere thei those if their fr was ready a than a limit to the which can Bre: loca Within a short
Being associate the Indian Psyc

available till early
competent cnough eir students to eitliet study habits, student tudes) or to adapt a of thic course, these ty completed a thick was scarcely worth notc). This volume ic guide's favourite would not be relucand the awarding of
was marked by the n foundations, cheap Condrate American : all, PL-480. Cheap
were detrimental to king and writing inT. A file:Trican, milio Illey 5 for such studies as urvey on a railway it serious thcoretical I of finance was also : Indian professors tours, some of them Ensored by the CIA, :it:8.
Ws the Scene
Council of Social on the recomiciladvisory committee in psychologists to if the research done if study. Within six ey werc rcadly with as Mitra prefers to lithin one year nore hologists were disifts. As the results coverwicwcI5 newer both cred to read all trial, Sufficient for : own writings Cor iends und Whatever d. After all there is Incount of material tcd and documented span of one year.
d with the editing of hological Abstracts
which is entrusted with the publication of complete abstracts of the researchers, I am in a position to estimate that not even 50 per cent of the papers listed by the overviewers were available to them. The total number of write-ups listed is less than 3 coo which is far short of the actual number. The overvicwers have hardly secn a quarter of the total write-ups and they must have read through less than ten per cent. I have becn told that a hundred thousand rupees were spent up to the discussion stage. Surely this money could have been put to use For acquiring the documents for a project on the history of Indian psychology by one of two psychologists. But in a faction-ridden profession, such a thing would not have been so easy. Morcover, this would have called for reserves of patience, encrgy and brains. ICSSR was perhaps in a hurry. In fact a number of reviews similar to what we find in the Survey were already available. Thic question ariscs: was this Survey at all necessary?
Drawback in Approach
The basic drawback lies in the very approach. It appears to be lacking in purpose since no attempt has been Innde to assert or construct the image and personality of Indian psychology. Rathcr, it is a crude cKercise to review Indian studies on the linics of the American Psychological Association. When we use the outlinics of the American Psychological Abstracts to fit into our studies, one cannot help being sceptical about such an undertaking. The absurdity of it all is upon us when we come across statements such as, "For purpose of comparability, categorization as given in Psychological Abstracts published by the American Psychological Association has been followed in reviewing research in clinical psychology, although a simplified model would have been more suitable". or "Psychodiagnostic procedures employed are mainly the same as developed and used in the West'. (Emphasis added).
Page after page is devoted to American writings and to the beginnings of psychology in India. Onc draws a blank later on when, for instance, M. M. Sinha writes "III. Instincts:
31

Page 34
No significant study has bc.cn reported". "I Neurology: No work has been reported". "IX. Genetics: No work has been reported'. Because he chose to adapt American classification, A.K.P. Sinha had to discuss psychiatric illness under "Performance and Job Satisfaction'. Under “Engineering Psychology” hic had to be morc apologetic by outlining "the type of research involved in this area'. The Survey is full of such examples which leave the impression of absolute subservience to the West and an alarming intellectual bankruptcy.
Clinical Psychology and All That
The first trend report is on clinical
sychology. How and since when 藍 clinical psychology become á social science. Although clinical psychology is considered a discipline distinct from psychoanalysis or psychiatry, the report devotes considerable space to the history of psychoanalysis, mental hospitals and psychiatry in India. As we know, clinical psychology is not meant only for the insane after they are brought into mental hospitals. Unfortunately, even the areas suggested for research (immediate attention) are all related to etiology and not with therapy or mental hygiene. Is it being scriously suggested that therapy has always to be imported from the West?
If only Mitra could present the listings of the adaptations of tests, we would have bc.cn saved thic ordeal of at least 20o pages of tiresome material because his survey is a mere description of these adaptations. Indian psychology is but adaptology. Nowhere in this thick volume can the reader find mention of any original theoretical contribution by Indians. If anything, the over viewer stops with the title and a half-sentence summary as for Udai Pareck's social change model, Kuppuswamy's books have been completely ignored. It is remarkable that the Ilass of studies carried out by Indians who are always indexed in the international directorics of cross-cultural researchers docs mot even get a linc.
In his review.o. chology Parames studies in a cony, apparently hc hd worth talking abo under "Somc Iini tions' is the onl any relevance at : cover lore thin a indexed here are a interest, and the
Most of the bir have dWelt ait l'en Illinaries 15 de Fir psychology and W. USA, as if they for a classroom professional colle play safe if he had guidance and scl chunk of 10. Sin] chology goes un another Sinha (AR skipped military duplicates D. Sinh Prcaches about II Page 21a he is ol depth. Looking prop up Western it even when the to whit he shoul an incrediblic note When he: obj5c LW show Some con F is ample evidence support Western
Shanmugam ha the need for Ind sonality psychol carcd-to see thro to think of even ; sonality. Numerc as adaptation co for this purpose. share the widespr we cannot contril ficant. There is a full utilization of results are not pi rcct Perspectivic are disrnissed w. clusions,
Through the Gl
One cannot be made a serious results of social
Thic Contents of Elfafjørmyrir Reprieg III ay be qui
Printed at Tisara Press, 37

development psya rail avoids the ntional style since almost nothing it. His last section ividual Investiga
portion that has land it does not page. Most studics Stually on attitude, ke.
's eye-view studies gth on such preliitions, history of hat happens in the verc writing notes cture and not for gues. Buch Could avoided reviewing :ction since a big na's industrial psyder this Head; but P) could well have sychology since hic it. When the latter ldian Socialis IIl on bviously out of his for evidence to hypotheses he finds results are contrary i expect. There is of self-satisfaction es, "while reports |cting results, there that they generally Studies'.
s done well to feel fan models in pergy, but has not lugh the rcscarchers model Indian perIus studies reported uld well be used This study seems to ad assumption that lute anything signiso a woeful lack of resciarch data. The eserteci in the corand vital findings th superficial con
iss Darkly
sure that Rath has
fort to analysc the ychological studies
reviewed by him, Incompletic bibliography is combined with an off-hand superficiality. One wonders if Rath had access to all the papers indexed by him. The studies under "Cultural and Social Processes' which seem to be the mainstay of social psychological research in India do not get the attention they deserve. Caste industrialization, independence, partition, scheduled castics and tribes, Wars with neighbouring countries, all these are of immense importance and call for detailed treatment. The way Rath has dealt with these topics clearly shows that he has not gone beyond the bibliography. Hc 器 managed to review such important conceptual studies relating to psycho-social aspects of cultural ;',[ူ့် (like Cultural conflict, cultural change, trends in Indian culture, human relations and so on) in casual nonchalance. Under Psychollinguistics hic mentions only three papers and misses all the work done by Osgood and his colleagues, Shanmuga III, Sinha, Kuppuswany, Agrawal, Harigopal and others.
The section on "Physiological and Comparative Psychology' has little more than an inventory of publications. In view of the fact that most of the research work relates to psychopharmacological studies, one wonders if it was more appropriate to include this section under "Experimental Psychology'.
A. K. P. Sinha's "Military Psychology', as already pointed out, duplicates "Industrial Psychology'. Indian Psychological Abstracts have rightly dealt with these two branches in donc volume entitled II lidustrial and Organizational Psychology, Many papers in the bibliography are filled with follow-up studics of certain courses, examination results, glossary Eric Sio on.
Mitra's overwicy on 'Methodology' lacks comprehensiveness and imagination. On the whole, the Survey reads like a review of literature for a Master's degree dissertation, Indian psychology is adaptology and nothing more, and the ICSSR produces ample evidence to beat out this fact,
Courtesy. Social Scientist, May 1975.
Eed or reproduced with duc acknowledgement.
Dutugemunu Street, Dehiwali.
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