Will India Be the Next China? Challenges,Prospects and Implications for Australia

India's recent growth performance has been impressive and it appears set to again become a major global economic power. But, sustaining this growth poses formidable challenges. Australia stands to gain much from India's growth. In this article, we review recent developments in the Indian economy, identify policy challenges and discuss short‐to‐medium term prospects, noting some of the main similarities and differences between China and India. Then, we look at opportunities for significant growth in Australian–Indian economic links and policy implications including the possible role of a free trade agreement.     

Third world strategies for regulating drug advertising and marketing

In the pharmaceutical area, third world countries have been particularly subjected to excessive pricing and manipulative marketing practices by multinational corporations. Sri Lanka has gained some experience in curbing abuses by establishing a State Pharmaceuticals Corporation. It has been able to achieve substantial price cuts for pharmaceuticals and to adapt to changing economic and political circumstances. The control of advertising and marketing practices remains a problem but has been tackled in Sri Lanka by an Act of 1980. Until similar laws are enacted greater attention should be given to the individual patient by doctors becoming more circumspect in prescribing drugs.

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Strategien der Länder der Dritten Welt zur Regulierung des Vertriebs und der Werbung von Arzneimitteln

Zusammenfassung Länder der Dritten Welt sind für multinationale Unternehmen auf dem Arzneimittelsektor ein bevorzugtes Objekt für Ausbeutung durch überhöhte Preise oder manipulatives Marketing. Der Autor, mit diesen Problemen an leitender Stelle persönlich vertraut, beschreibt Versuche in Sri Lanka, Mißbräuche ausländischer Unternehmen durch Errichtung einer staatlichen pharmazeutischen Gesellschaft (State Pharmaceuticals Corporation) zu bekämpfen.Das Unternehmen hat wesentliche Preisreduzierungen für Arzneimittel erreicht und sich an geänderte wirtschaftliche und politische Verhältnisse anpassen können. Werbung und Vertriebsmethoden werden neuerdings in Sri Lanka — wie in anderen Ländern der Dritten Welt — durch ein Gesetz von 1980 kontrolliert, das allerdings für homöopathische und ähnliche Produkte nicht gilt. In der Zukunft kommt es darauf an, den individuellen Patienten durch eine vorsichtigere Verschreibung von Arzneimitteln mehr Aufmerksamkeit zu widmen.

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D. C. Jayasuriya is Attorney-at-Law and Senior State Counsel. His address is 40/12, Swarnadisi Place off Koswatte Road, Nawala, Sri Lanka.     

Book Reviews

Mohamed Ariff and Hal Hill, Export-Oriented Industrialisation: The ASEAN Experience, Sydney: Allen and Unwin, 1985, pp. 270. Aus$ 19.95

David Lim (ea.), ASEAN-Australian Trade in Manufactures, Melbourne: Longman Cheshire, 1985, pp. xii + 263

Kathryn May Robinson, Stepchildren of Progress: The Political Economy of Development in an Indonesian Mining Town, Albany: State University of New York Press, 1986, pp. xvi + 315.

Gillian Hart, Power, Labor and Livelihood: Processes of Change in Rural Java, Berkeley: University of California Press, 1986, pp. xvi + 228. US$ 30.00

Walter P. Falcon, William O. Jones, Scott R. Pearson and others, The Cassava Economy of Java, Stanford: Stanford University Press, 1984, pp.xvii + 212. $US 38.50.

Randolph Barker, Robert W. Herdt with Beth Rose, TheRice Economy of Asia, Washington, D.C.: Resources for the Future, 1985, pp. xx + 324 $US 30 (hardcover), $US 12 (paper).

C.W. Watson, Kerinci: Two Historical Studies, Canterbury: University of Kent, Centre of South-cast Asian Studies Occasional Paper No.3, 1984, pp.63.

Asia Pacific Report: Trends, Issues, Challenges, Honolulu: East-West Center, University of Hawaii, 1986, pp. x + 104.

B.L. Greenshields and M.A. Bellamy (eds), Rural Development, Growth and Inequity, International Association of Agricultural Economists Occasional Paper No. 3, Aldershot: Gower, 1983, pp.viii + 312.

Masami Mizuno, Population Pressure and Peasant Occupations in Rural Central Java, Canterbury: University of Kent, Centre of South-east Asian Studies Occasional Paper No. 4, 1985, pp.71.     

TESTING FOR PHILIPPINES RICE MARKET INTEGRATION: A MULTIPLE COINTEGRATION APPROACH

In this paper we demonstrate the use of Johansen's multiple cointegration technique as a test for spatial market integration. We argue that this technique overcomes many of the limitations of previous methods for testing market integration. An application of this approach to the Philippines rice markets indicates that these markets are generally well integrated in the long-run with Manila as the dominant market. However, there are other inter-regional relationships which are important in the short term.     

Damaged exports: Dynamics and limits of governance reform in Southeast Asia

Governance reform is the main policy for a number of international and domestic aid agencies. Under the rubric of governance reform are diverse programs ranging from those for anti‐corruption to those for civil society promotion programs. Although these programs have had limited success, governance programs are continually being promoted and implemented byinternational organizations and political forces in developing, newly industrialized states. Why? One reason for this persistence is that these programs—despite failing in their erstwhile objectives—nevertheless constitute a shift in modes through which power is exercised. These programs often create new modalities of political rule, which form the basis of new state strategies. This paper draws particular attention to the importance of governance programs in nurturing new forms of political rule through a process of depoliticization.