180 SOCIAL SCIENTIST recognised irrespective of the ideological position about liberalisation. But this raises a fundamental problem about the entire development strategy itself. Given that the Indian 'market* is a small proportion of the entire population, (about 10 per cent), a quest for more profits compels capitalists to focus on this upper middle class and exports market. Apart from being import intensive, both these paths are constrained by the possibilities of saturation for the former and international protectionism for the latter. This is what had led to periodic recessions on the one hand and a proliferation of luxury goods on the other. However, that is a temporary solution. The actual key to developing capitalism would be an unleashing of pent-up demand by land reforms on the one hand and vigorous industrialisation on the other, that wo;uld provide the necessary employment and purchasing power. However, both these tasks can be said to represent 'asset reform* (to borrow a phrase from the structuralists) as opposed to *price reform* that the Fund-Bank advocate. Also, these require the state to play an active role, quite contrary to the Fund-Bank prescriptions. Again, these are issues that the monograph is.silent about. Coming to foreign capital, the author believes that under a cautious and vigilant state, foreign capital can be made to play a positive role in the economy. This proposition needs some pondering over, as the Chinese state certainly claims to be doing the same. However, in the India context, characterising the nature of the state becomes important, as that is the ultimate determinant of the kind of role that the state would play. As pointed out earlier, this is one of the major lacunae of the monograph. Even avoiding this question for a moment, there is scope for grave skepticism on this score, if the guarantees in the ENRON agreement in Maharashtra are any guide to our approach to foreign capital in India. Finally, I think one would be in complete agreement with the author when he emphasises the need for reforms in the Indian economy. The point of discussion and hence the need for the monograph is the precise path of reforms that the Indian economy needs. Here despite some loose ends, the monograph must be read by all those concerned about the future of the Indian economy, desirous of reforms and yet very uncomfortable with the Fund-Bank sponsored path of adjustment. ASHWINI DESHPANDE Department of Economics, Delhi School of Economics, Delhi 110 007.