| OCR Text |
Show 172 The mechanism for heavy taxes income, output, on it one and was not surplus value. or land, nor substantial water rat.es, through was doing this was not a direct at in the like levying irrigated areas The mechanism developed for the expressed It involved one purpose of was in(Urect an "extracting turning the terms of trade against the agricultural sector vis-vis the industrial sector. The Terms of T:rade in Ag_!'iculture vs. Indust The cleB-rest and most concise exposition of this mechanism is found in Stephen R. Lewis, Jr.'s first book6 and this will be a for of knat follows. some As of the le recall from chapter I, Pakistan before larger economic unit referred to as parti tion was source p9-rt -In terms undivided India. of comparative advantage between the trw countries created by Parti tion, India provided most of the mills in Calcutta processed the Pakistan The manufactured jute (e.g,t goods grown in East jute Pakistan) and specialized in foodstuffs and agricultural severance the raw materials. of these two economic units from each other into what quickly became hostile states destroyed the economic unit. therefore inevItable that Pakistan would begin to It develop its was own manufacturing capacity. Another bit of our explanation mentioned earlier shows up quite clearly in tables trade The mechanism for turning the terms of ture developed as was exports of primary agricultural products Korean War boom in as history necessary to a the (which, 5.5 and 5.6). against agricul- of partition result of the responses to the events |
