In colonial times there was not much work done by economists on conditions in the 'backward regions' mostly they were not national entities at that time least of all, directed work at the abject poverty and what could be done about it. The colonial power system was in general not such as to call forth intensive research on economic underdevelopment by giving political importance to such research or investing it with public interest. Nevertheless, one can distil from the scanty economic literature of the time a certain structure of thoughts, thoughts which were also shared by educated people generally in the developed world, and not infrequently, by people from the higher classes in the colonised regions. I have called it 'the colonial theory'. It was apologetic writing, attempting to absolve the colonial regimes from responsibility. It was taken as established by experience and observation that people in the backward regions were so constituted as to react differently from Europeans; that they normally did not respond positively to opportunities for improving their incomes and living standards. Generally, they were also supposed to be racially inferior. In more sophisticated writings, these traits were, however, understood to have roots in various elements in the local system of social relations and institutions with which the colonial governments, for good reason, generally abstained from interfering too much. Occasionally it was also noted that undernutrition and generally inferior living standards among the masses of people lowered their stamina. The climate was seen as a crucial cause of impairing people's ability and willingness for sustained work. The decolonisation hurricane that swept over the globe after the Second World War created an altogether new situation. From that time, steadily growing numbers of economists were drawn into the study of planning for development of underdeveloped countries and I was one of them. This was not an independent development of economics as a science, but clearly brought about by a radically changed political world environment for economic research. In the cold war that
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