25>. JSSION

SCHNEIDER

I quite agree that, as you say, planning is necessary for under
developed countries. But: is it necessary because you want to have
a development in a very short time, or because you believe that a
market system would not function in India, or is it both?

MAHALANOBIS

[ think that the answer is that a market system has not been
tound sufficient even in the U.S.A. where the largest volume of
production is of free enterprise. The Anti-Trust Law was introduced
about 60 years ago. The Agricultural Adjustment Act came, I believe,
 about 30 years ago. In the underdeveloped countries it is not
possible to rely on the market system alone for improving the conditions
 of those who are now underfed. Also, disparities between
countries are increasing because of the faster progress of industrialisation
 which has taken place and is continuing to take place in the
advanced countries. We can not wait for another hundred years
for economic development through the market system alone; we must
try to introduce other methods.
Also, there is increasing interlocking of international affairs with
domestic affairs. I was happy this time during my visit to ihe U.S.A.,

.,. Mahalanobis Il - pag. 3: