1956-08-18 — Page 13

THE CHINA MAIL SATURDAY, AUGUST 18, 1956.

Concluding PAUL EINZIG'S timely series:

AUTOMATION

WILL BENEFIT

UNDERDEVELOPED COUNTRIES

U

for

ENTIL recently, the "Inevitability of gradualness" of pro- gress in backward countries was taken granted, both in the countries themselves and in advanced countries. Since the end of the Second World War, however, this attitude has undergone fl funda- mental change, World con- science has at last become stirred by the growing con trast between the rapidly. increasing wealth of nc- vanced countries and the virtually stagnant conditions of abject poverty in bark- ward countries.

At the same fime, a dan gerous mood of restlessness has developed among back- ward peoples. They are no longer willing to put up in- debnitely with their ex- treme poverty, Their dis- satisfaction, whatever form it assumes, provides ample opportunity for Communists to fish in troubled waters, and threatens to culminate in explosions,

Fortunately, the inereuse in the nerd for argent assistance to backward peoples coinckles with ኒ፡ increase in possiblities for assisting them. Until ro- cently, any assistance on a scale large enough to make a notable difference in their standard of living appeared to be hopelessly impractic- able, owing to their mense numbers and their high birthrate.

Higher Birthrate

im-

#

Car door assemblies, tuggage boot lids and

domestic Increasing mants

It is only if there is a sudden and spectacular increase in voltame of

living: PTO

period,

the

-

Its

production that the adverse effect on the standard of diversion of a substantial portion VI output to under- developed countries would be-

practicable.

even

the transition

of goods would have to thecaze At an higher rate than that of the in- sarase in population through o

birthrate and

a lower higher deathrate.

afford

10

of

The

men.

and

strengthen their competitive capacity by instriling automatic factories. This, coupled with the low level of wages,, would enable them to undersell their foreign rivais in their own and even in foreign - markets, But they

would

be heavily haridicapped in more than one way,

As ProfessCE Arthur Lewis pointed out in his "Theory of Economic Growth," productivity of auch now Industries depends to a large degree on the existence of other enterprises sap parvices. specially public utilities

ATA If they

succed · in overcoming these diniculties, they will relieve the balance of payments of

their countries by obviating the need for certala imports. But the problem of distribution of purchasing power would remain difficult to solve if the stage of non-mutomatic industriisations is skipped.

Real Progress

Beyond, doubt, automation In backward countries would ruire

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truck cab doors are produced at the rate of 200 to 250 an hour by this automated plant at the Vauxhall motor works in Britain. This plant produces better quality assemblies than the machinery it replaced and it does it in less time, with fewer

require of living

to were

proluce catch up with them-Indeed, to purchasing power is distributed eventually the effect atributed cut ahead of them, unencumber- among the poverly-stricken to on the basis

In- of Weetdin ed by costly pinni, ill of which masses.

reason why To the experience.

provent

the older industriaj

tends countries dustrialisation

to raiso cannot

serap the standard of living in back- same time they will assiet immediately.

ward countries is precisely that the prevention of raw material

shortages In industrini equi It enables a large number of tries. In reality, the balance

workers

Wages, to earn in order to spare

edvantages is by no means on

their eamings Increase the sufficient quantity of goods

What is perhaps even more

the side of backward countries,

income. From national handleapped They pro

by to raise their standard of important, a sudden and specta-

of view, automation plentiful and cheap labour, and Pola Hving

leaves the problem of a hetter cular increase la the supply of perceptibly, the

goods in underdeveloped coun.

by scarce and costly capital distribution of Income peoples of advanced countries is necessary in order to Those who, out of Barrow Labour-saving devices are not underdeveloped countrica largely tries would have had to con- overcome the economic problem consideration for the immediate installed for the greater glory of unsolved, any rate until 。

Interests of a small section of technology. They are installed sent to a very

drastic re of the rising birthrate.

It is a favourite argument of

the Industrial

because there 15 enough sufficient number of their own duction

their in

own those who believe in full-scale ach

advanced countries, resist the labour

to produce the required nationals standard of living. More-s

to asistence

underdeveloped progress of automation, incur output, or because the cost of replace Imported skilled labour. over, even if such sacrifices countries

If only that

their grave responsibility before producing the goods by machine had been

Is lower than if they were pro- economically, standard of living could be raise history.

ubuve baistence jevoi, the handicapping progress in their socially and politically prac- birth: ate would cease to increase

duced by human effort. own country, they prevent the ticable, their beneficial after a while, end might even only conceivable solution of the effects in underdeveloped decline. They quote the exanpla Kreat problem of overpopula- brckward countries would have been of Westin countries where the ion and poverty in

rising standerd of living was in merely temporary.

fact

slower accompanied by a Any improvement in liv. rate of increase in the popula-

ing conditions among there poverty-stricken peoples la usually followed by a risc

creased supplies would shared

return.

Ilon

Worth Trying

At any the

countries

problems

in workers

In addition

го

Cost of Labour

can

be trained

τα

Lack of capital, either la the form of financial resources in the form of capital goods output, is an even more formid- able obstacle 10 industrial mutomation In backword countries. They depend

investment for

the

The first condition does not foreign orlee in most backward provision of most of the capital Let us now see how far

countries; they possess ample that would be needed for the automation could contribute

reserves of unskilled labour, automation

In- of existing directly to the solution of the consisting mostly of agricultural dustries art for the creation of

of underdeveloped workers unable to earn a llying new automatic factories. countries. through its applica on the iced under conditions of tion within those countries

For the same overpopulation, reason, unskilled

Jabour Its cheap.

replacement

able than in advanced countries

Lutomation,

to proceed with

Short Cut

Is by

It

he

Foreign Capital

Is In the interests of

in their birthrate. The in- Unfortunately, this argument themselves. According to some

of food is not very convincing because it opinions, underdeveloped coun

be overlooks social and then have to

religious tries are at a great advantage machines would be less profit- factors which would operate

compared with advanced coun- out

moru among

agulest the popularisation of tries, because there is no need where unskilted labour is costly foreign countries to provide people, so that conditions of birth catrol in many backward for them to scrap obsolete plant Bemi-starvation would soon countries benefiting by a rise in in order

in addition to being scarce. The such capital for the purpose of their standard of

of living

increase in productivity through increasing the output of food Even so, the experiment would

automation must be much more and raw materials. Automation Substantial in underdeveloped in the advanced countries may Progress of automation since be well worth trying.

countries to malice it worthwhile unless raw material supplies the

held

up sooner or later, assumption that the war gives rise to hopes of fate,

maintenance of the standard of

replacing men with machines, a truly spectacular increase In

re increased. Foreign capital productivity within a relatively living above subsistence level

In an article appearing in the

From would produce

forthcoming the point of view of will probably be for a few years short space of time. Even though the desired effect on the birthrate

September 1002 issuc of

the national coonomies of back for this purpose, especially as the increase in industrial output should not

Scientific American, Professor be rejected cut of

ward countries, it hardly pays with the progress of automation up to now has not been sufitcent hand

to introduce automation so long in advanced countries, the that industrially backward to enable the advanced countries hand, because in it lies the one Leontief goes so far as to say to tackle the problem of eldingpe of the greater half of man-

uchleve decent countries can solve their prob- there are masses of unskilled rising demand for raw materials

workers trying

an. would seeuro

euro bigger profits on to squeeze Industrialisation The argument de des

129 inadequate living out of the their production. For instanco, the dramatic dost-cut and, Such labour is taking be given a chance to serves to

for the ro

demand explains the of bullding a fow large prove its worth.

most part urcicss for automatic wing

almost unlimited amount of Instead of mctories, This could only be done it, autoretic plants,

On the other hand, foreign capital that has been with the aid of automation, the trying to progress by the słow

www the skilled inbour that is mado Available for of goods

the to backward and painful methods of the supply countries were tó be raised to in other words, he expects back required in large numbers is duetion and refining in

not readily available, nor cán, At Middle East, - such an extent as to outweigh ward countries to skip the be easily trained.

pre-automatic. in-

Uxistence.

bacitward countries on any largy exist acale, the passibility of oven undoubtedly output

greater exists

Own

Output

+

It is new ccncolvable that a

a

故霉

by

In'

any rising trend in their popula- phase

·Industries in / underdeveloped BLERO may be reached before lon. That rising trend is liable dustrialisation and, benenting If large numbers of skilled countries which compete with many years at which the calls to centique for a few years, by the knowledge accumulated workers have to be imported, established ....... Industries faction of reasonable domestic even if the rise in the standard by the advanced countries, to, relatively The additional advanced countries could greatly requirements will leave sub- stantial surpluses of goods avail- able for large-scale ecostomic sistance to underdeveloped

WIL

countries. Thanks to the la- creased output through auto- miston, advanced, obuntries be able to supply backwood countries

bg

KIDNAPPING-AN OLD STORY IN AMERICA

not only with THE

Zurge quantities of consumer recent kidnapping of

with but also

the Weinberger baby ..the in

United States Large quantities of capital equip focussed attention upon a

goods,

By WILSON FERBER

and human target practico were some of the diversions

One

suit

In 1000, the American public skeleton of the child's body was in was agor following the obduc found near the Lindbergh's New ed

gang had a diving which the victim was dress-

ment to enable them to incr social disenge from which tion of young Edward Cudahy, Jeraay home: Three years later M. lowered into Lake

their own output.

Whether or not there hopes

and Bir

| America: still suffers, Kid- of Omaha, Ransom of $20,000 Gierman; a wond`a “glimpse of the

can become reality dependa al-napping is an old story in most entirely on the rate fit America. Many will recall which automation will progress the early 1980's when or yaret gantsed gangs kidnapped coming

in the

If the

to

Every so often swas brought to the surface dor was demanded and paid. The was tried, kidnapper, Pat Crowe, later ad- executed for,

the

Except where It is committed by ais insene, person, klinapping mited his crime, but in those But lelappings, were not days show were many topheles confined to children, Gangsters in a form of terrorism. It is the in the legislation, Crowe, was of Chicago Destrols and Be Lou unicnown that strifes terror, into acquifted and llyed to write his madoa lucrative practice of the Morally or the victim the * Kidnapping gamblers, boolloggis fear that those they love may be murdard. 16 Is this terrify-

oponents of Stat noted thousands of citizens every attobiography Rd 400wand other Underworld character Bing Sveaponry that the Ididnapper

progress have their way, hopes year and hold them

of substantial assistance to back ransom. ward peoples will have to be.

deterred indefinitely, for the The crime was making head- mxtend be, which ougui Sen looven in the 19th cent erassed:(, must be muthalent to. In 1899, Marlen Clarke,

(reguleernaeven bus month-old bobby by wail), stole

could be Central Park, Ne

of lees tubetely the child

Dewas in the "ear]

that:

(1930's and holding", thum›

(ušes, to wxtort money.

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