Evening star., 1961-12-10
BY NARANJAN s. UPPAL
Contributing Writer

NEW DELHI.-After years of
trial and error, q wave Of realism
Is sweeping most Asian countries.
The trend is towards modifying
the hitherto nationalistic ap-
proach to economic thinking,
planning and legislating.
There is general disillusion-
ment with the principle Of ma
tionalization, principle which
does not seem to have paid off.
AS one colonial power after
another withdrew from Asia, each
newly independent country made
brave, yet ineffective, efforts to
deal with economic problems on
a national scale. Invariably, the
methods used were similar. The
new leaders, who we're more con-
versant with political problems
than with the mechanics of eco
nomic planning, looked to their
countries developed resources.
Most of these, from factories to
shipping companies. we're owned
or controlled by foreign firms. So
it was decided to nationalize them
without ceremony or to buy them
out.
This satisfied the national
pride of the people because it
demonstrated that the former
rulers and their business associates
were neither wanted nor needed.
Here were virtually all the eco
nomic problems of an agrarian
society trying to get off the
ground but still floundering.
There were complicated political
factors. part cause. part effect of
economic weakness, part inde-
pendent variable.
Some Copitol Required
Naturalization meant public
ownership. And most of the new
Asian governments. some with
practically empty treasures, could
not pile up enough capital for
taking over and efficiently operat-
ing these enterprises. In many
cases, the nationalized and semi
nationalized companies began to
deteriorate quickly for want of
capital and experienced staff.
This led to mercy missions" to
friendly foreign countries for
loans, aid and technical as
SiStance.
In some countries, where new
industries have been encouraged
and given full government pro-
lection, through strict import
laws, the ordinary people have
had to carry a heavy burden.
They have been forced to buy
inferior products at higher cost.
In name of naturalization.
some of the economically
frustrated governments began
browbeating minority races. They
we're driven out of trade by new
laws or Gripping taxes. In some
cases, even their right to live
and work in the country was
challenged. Most affected were
overseas Indians" and overseas
Chinese" Though they regarded
the country of their birth as their
home, ttey were treated as "for-
eigners" by the fanatical nation
alistS. But many of these per-
secuted businessmen are now fl
nancing the new industries.
The Cose of CeyIon
Though naturalization did not
frighten away individual business
men, it has certainly made large
foreign firms stay away from
many countries. Ceylons is a
classic case. There successive gov
ernments since 1856 have pledged
to nationalize the tea and rubber
plantations, which are mainly
British-owned. Originally it was
little more than useful political
slogan. But the danger it has
generated is enormous.
British planters in Ceylon have
been exporting, during the last
few years, as much of their profits
and capital as possible to East
Africa where new tea plantations
have been opened. Soon they
would be competing with Ceylor
whose SO per cent of export trade
depends on tea. The result OF
this competition could only be
disastrous.
Another country which triec
taking over foreign firms and in
dustries on a large scale has beer
IndoneSia. And now its economy
lies shattered by initiation. In {
colonial plural society where thert
was economic specialization b!
racial origin, there we're few op
portunities for Indonesians to- &C
quire the skills they are nov
being asked to exercise. But Presi
dent Sukarno has set himself tn