NOTES ON THE POLITICAL ECONOMY OF STRUCTURAL ADJUSTMENT 17 5. See the last chapter of J.M. Keynes, The General Theory of Employment, Interest and Money, Macmillan, London, 1936. 6. M. Kalecki, "Political Aspects of Full Employment", The Political Quarterly, October-December 1943; reprinted in his Selected Essays on the Dynamics of the Capitalist Economy, CUP, 1971. 7. On this success see Nicholas Kaldor, "Inflation and Recession in the World Economy", reprinted in his Further Essays of Economic Theory (London 1978). 8. Kaldor, ibid. 9. The role of terms of trade movements vis-a-vis primary producers in imparting social and economic stability to metropolitan capitalism is discussed in my forthcoming book Accumulation and Stability Under Capitalism (OUP, Oxford). 10. From Poland to Pakistan to India, the introduction of structural adjustment has resulted in hectic stock-market booms but scarcely in any increase in productive investment. In fact, following Charles Kindleberger (Manias, Panics and Crashes), one can say that the stock-market booms may be precisely the factor responsible for the stagnation in productive investment. 11. Of course, those farmers who are not surplus farmers but who are actually net buyers of foodgrains (and these constitute the vast majority of the peasantry), are going to be net losers from structural adjustment since the shift to export agriculture raises domestic foodgrain prices and hits* their living standards adversely in exactly the same way as it hits the living standards of urban workers and the rural landless. For a discussion of the mechanism involved, see Utsa Patnaik, "The Likely Impact of Structural Adjustment on Food Security in India" (mimeo.), paper presented to an ILO-ARTEP workshop in Delhi, 1992. 12. Two of my colleagues, Anjan Mukherji and Abhijit Sen, have in separate unpublished papers explored the formal conditions under which the Latter hypothesis that a reduction in tax-rates leads to higher tax-revenues would hold. These conditions are so stringent that one cannot think of them being fulfilled in any real world situations. 13. The adverse effect to privatisation upon the growth rate would arise if government investment crowds in rather than crowds out private investment. There is plenty of evidence for India to show that this is more likely to have been the case.