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Pakistan is today, a case study in ethnic strife. Carved out of pre- Independence India in 1947, the country is home to five broad ethnic groups: Punjabis (the dominant segment of the population), Balochis, Pathans and Sindhis. Each has a distinctive culture and language. In spite of broad similarities stemming from a common religion (more than 98 percent of the population is Muslim), several factors combine to create dissension and discord. The fifth ethnic group in Pakistan are the Muhajirs (which literally translates to “Immigrants”) who migrated to Pakistan in large numbers from India in 1947. Most of them settled in Karachi. Pakistan’s largest city, a teeming port city with a current population of around 12 million. Charges of favouritism in the award of jobs abound, and the Muhajirs in particular allege that, not being “sons of the soil,” they are singled out for discriminatory treatment. Given that this is the case, it is surprising that no study has been carried out to ascertain if indeed, earnings differences originate from ethnic differences in Pakistan. This study attempts to examine this issue, and thus settle questions that have led to many a pitched argument.

The book is the first of a series of studies on Exchange Control, Liberalization and Economic Development sponsored by the National Bureau of Economic Research, New York. The ten-country study, of which the book under review is a part, provides an in-depth analysis of three major areas : The anatomy of exchange control along with its implications, the episode of the liberalization of the payments regime, and the relationship of growth with the exchange control regime. The findings of the individual country-studies have been consolidated in an overall synthesis. However, each study is complete in itself in accordance with the needs of scholars having an interest in only some of the studies. The book under review seeks to analyse Turkey's trade and payments regime and the effect that the latter has had on the country's economic growth. Whereas quite a few other factors are instrumental in development (e.g. agricultural productivity, levels of education, political and social stability, etc.), the focus on foreign trade alone is justified by the author on the grounds of the tremendous amount of government influence in foreign trade. Moreover, the author believes that an intensive study of the trade-growth relationship is more rewarding than: a general survey of all factors related to economic growth.

In line with the theme set out in its sister volumes, the book under review explores the anatomy of exchange control, the liberalization of exchange controls and the relationship of the exchange control system to growth for Philippines for the period from World War II to 1971. It makes searching probes-into how different commercial policies and exchange controls influenced growth, employment, resource allocation and income distribution. A great deal of attention is focused on the evaluation of attempts to liberalize the exchange controls. Fiscal and monetary measures are also accorded detailed treat¬ment commensurate with their importance.