124 SOCIAL SCIENTIST :le", and that the high growth rate achieved during that period did not result n any significant development of the economy. The effect of the world :apitalist economy on the Third World countries has been accepted recently, n some what muted tones, even by some officials of the World Bank and the IMF, the propagators of the laissezfaire doctrine. In a paper written by two IMF officials, it is stated that "external shocks and inappropriate domes tic policies have proved inimical to the development of these countries".^ The )fficials have accepted that the removal of trade barriers and controls over he capital markets entails costs even under the most ideal ;ircumstances. Even if the experience of the Southern Cone countries does not dis-:ourage the policy makers in India, who are trying to make the country's wnomy'more "outward looking", at least the new-found scepticism of the MF officials regarding the success of this policy should dampen their enthusiasm. (1) The existing literature mainly deals with the debt problem and very little is known about the behaviour of the other economic indicators like income distribution. (2) With inflation raging high there was a steady deterioration in the real wages of workers in all the four countries. The estimate of decline in real wages could not be provided because of paucitv of data. (3) Chcryl Payer, Vie Debt Trap, Monthly Review Press, New York^ 1974, p. 144. (4) W. Gaer, Industrialisation and Economic Development in Brazil, Richard D. Irwin Inc. 1965, p. 193. (5) Cheryl Payer, op. cit., p. 146. (6) For a description of economic policies adopted by successive governments in the 1950s see, ibid p. 146-55. (7) I.M.D. Little, T. Scitovsky and M.Fg. Scott, Industry and Trade in Some Developing Countries, Oxford University Press, London, 1970, p. 379 ff. (8) Amit Bhaduri, "International Capital Flows, OPEC and the New International Economic Order", Paper presented at a seminar "Lenin and Contemporary Imperialism'*, New Delhi, 1981, and S. Griffith, Jones-The Growth of Multinational Banking, the Eurocurrency Market and Their Effects on Developing Countries", Journal a/Development Studies, June 1980, p. 204 ff. (9) Deepak Nayyar, "Transnational Corporations and Manufacturing Exports from Poor CoumricA", Economic Journal, March 1978, p. 57-84. 10) John Williamson-^A Comparison of Macroeconomic Strategies in South America", Development Policy Review, Vol 1, 1983, p. 23-33. 11) ibid p. 26. 12) M. Wionczek-*'Industrialization, Foreign Capital and Technology Transfer: The Mexican Experiences 1930-85". Mainstream, August 10-17, 1985. p. 43-50. 13) tbid p. 46 14) ibid p. 46-47 15) ibid p. 46-47 16) Brian Ames-^Emperical Review of Financial Crisis in Mexico" UNCTAD Discussion Paper no. 10. p. 2-8 17) ibid p. 7. 18) IMF-Af 19) ihtdp. 1-5. 10) L. Beccaria and R. Camofi-^Thr Recent Experience of Stabilising and Opening up in the