Working Paper Number 69
Colin
Clark (1905-89) Economist and Agricultural Economist
George Peters*
In 1986 the
Oxford University Institute of Agricultural Economics was
amalgamated into Queen Elizabeth House. The Institute,
which came into being in 1913, achieved considerable
distinction for its work on the problems of British
agriculture under the Directorships of C.S.Orwin and A.W.
Ashby. The third Director (1953-69) was of a somewhat
different stamp. Colin Clark (1905-89), though without
formal training in economics, had established himself as a
pioneer of national accounting techniques in the Cambridge
of the 1930s (he was mentioned in Keynes’ General Theory)
and progressed to write one of the classic studies of
growth (Conditions of Economic Progress). His name appeared
prominently in the Meier and Seers book on Pioneers of
Development and there have been many other testaments to
his international reputation. The Oxford period witnessed
famous controversies on population and food supply, the
publication (with Margaret Haswell) of The Economics of
Subsistence Agriculture, and much other work on a wide
range of subjects by no means confined to agricultural
issues. The essay which is reprinted below originally
appeared in the Italian journal Rivista di Economia Agraria
(June 1995) as part of a series on major figures in
agricultural economics, and was presented at an
Agricultural Economics Society conference (Edinburgh,
1998). It is also the basis for a shorter entry in the
Dictionary of National Biography, 1981-90 Supplement. The
writer spent a considerable part of his early career as one
of Colin Clark’s research assistants. A number of people
have been kind enough to suggest that the essay should have
greater accessibility.
April 2001
* Research
Professor in Agricultural EconomicsInternational
Development Centre, Queen Elizabeth House, University of
Oxford
1.
Introduction
It was by no
means uncommon for those who made an impact on economics in
the first half of the twentieth century to have had no
formal training in the subject at the undergraduate level.
Diversion of interest from another discipline was never
felt to be an impediment to progress, though few made the
type of leap which characterised Colin Clark's early years.
After graduating in chemistry, at Oxford, in 1928 he had
acquired such stature that he could be quoted by Keynes in
the
General Theory of Employment, Interest and Money
a
mere eight years later in 1936. By then he had accomplished
what must rank as one of the most astonishing career
transformations within the annals of economics. To
understand that we must begin at the beginning.
Colin Clark,
though he is often thought of being Australian by
nationality because of his later close links with that
country, was born in London in 1905. However, there was an
Australian link in his background since his father James
Clark, who was a merchant of Scottish descent, had
emigrated to Queensland in 1878 to set up business in the
meat trades. This was to take him to South Africa where he
married his wife Marion Jolly, who decided that her first
child should be born in England. There were further
business interests in Plymouth, England and though fortunes
appeared to have been made and lost enough was available to
provide the young Clark with a very distinctive upper
middle class education at the Dragon School, Oxford;
Winchester (one of the most famous English public schools,
though those who understand the British system will realise
that it was very much a costly 'private' establishment) and
Brasenose College, Oxford. Though a competent chemist he
did not achieve the distinction of being place in the
'first class' of the degree lists. There is no record of
instruction in either economics or statistics, though it is
known that he developed a fascination for numbers. It is
interesting that this was associated with a political
interest in the British labour movement (i.e the left wing
of British politics), and that Colin often sought to sway
student political debates by assembling statistical
evidence to support his points. Later in life he crossed
the political spectrum, though it was the left wing
connection which had an early decisive influence on his
career. By luck, obviously re-enforced by his skill in
handling data, he was recommended to William Beveridge of
the London School of Economics as a research assistant in
work on studies of poverty in the capital. Beveridge, it is
worth noting, became famous as the architect of the British
'welfare state' system of social security put in place by
the post-1945 Labour Government led by Clement Attlee.
Colin was at LSE for a very short time from 1928 to May
1929, when he was offered a similar post at the Liverpool
University sociology department to work on poverty in the
surrounding region initiated by Sir Alexander Carr
Saunders, another figure of enormous influence and stature.
In 1929 Colin was to fight his first parliamentary election
campaign in the Labour interest in the impossible to win
rural constituency of North Dorset. He was to contest
elections again in 1931 and 1935 (Liverpool, Wavertree and
South Norfolk). By 1930, however, his life had taken a
decisive turn. In 1929 Ramsay MacDonald had become Prime
Minister at the head of a Labour government facing the
problems of the onset of the great depression of the early
1930's. MacDonald decided that he should form an Economic
Advisory Council (it included Maynard Keynes), and Clark
was invited to act as one of its research assistants. In
only three years after graduation a young man of 26,
without formal training but already noted by his mentors as
being a statistics prodigy, was at the heart of policy
making. It was, however, a very brief period. On being
asked to write a background memorandum to make the case for
protectionism he resigned. However, he had done enough to
impress Keynes who secured a position for him as a lecturer
in statistics at Cambridge University, where he was to
cover the 'social and economic' aspects of the syllabus
taught to students of economics. The opportunity was
grasped with alacrity. In six years he was to write
The National Income 1924-31 (1932),
The Economic Position of Great Britain (1936, and
written jointly with no less a figure than A.C.Pigou)
and
National Income and Outlay (1937). At the
age of 32, on publication of the latter book, he had become
one of the great pioneers of national income work. He had
also begun what, to many, is his most famous work,
Conditions of Economics Progress, which first
appeared in 1940.
By then, however, life had taken a further unexpected turn.
Given his family background he decided, in 1937, to take a
year's leave of absence from his Cambridge position to
visit universities in Australia and New Zealand. Though he
was expected to return the offer appeared of a position as
economic adviser to the Queensland state government, (the
full title was Under-Secretary of State for Labour and
Industry and Economic Adviser to the Treasury), which was
then headed by a Labour Prime Minister. This proved to be
so interesting, and also somewhat unusually in the case of
a public servant to offer him some freedom to continue with
his writing, that he was to remain there for a long spell
(1938 to 1952).
2. Major career phases
This
essay has begun at a somewhat breathtaking pace for quite
deliberate reasons, and it will be useful to pause briefly
to take stock. In 1940, when
Conditions of Economic Progress made its first
appearance, Clark was 35, and we have already mentioned an
astonishing list of output. Note, however, that none of it
was particularly closely related to the discipline of
agricultural economics. If it could be categorised at all
it was 'economic statistics', with a national income slant,
shading in
Conditions of Economic Progress towards a
broader concern with the process of development on an
international scale, and with agricultural change as part
of the latter pattern. During his Australian period he also
worked on
The National Income of Australia (1938 with
J.G.Crawford),
A Critique of Russian Statistics (1939), and on
the second edition of
Conditions (1951). A
further edition appeared in 1957. Taken together they are
the foundation of a lasting reputation in general
economics. The nature of the main strands of that work will
be further examined at a later point.
Interest in agriculture developed in a number of ways. It
was clearly of fundamental importance to Australian
development and much of his concern as an adviser was on
the balance between the sectors of a growing economy.
However, it was while he was briefly in New Zealand that he
was asked a question about that country's future. This, he
felt, to be fairly obviously dependent on the future of
primary commodity prices. As a result he began to work on
the issue, the results being published in 1941 as
the
Economics of 1960, which will be
mentioned again. Later, in 1951, he obtained a secondment
to Rome to work for a year for the Food and Agriculture
Organisation on world food supply. It was at the end of
that period, when almost on the verge of joining the
University of Chicago, that an offer came for him to return
to Britain, and to Oxford.
Clark was
formally responsible for agricultural economics in his
Oxford period (1953 to 1969) while Director of the
University Institute for Research in Agricultural
Economics. A separate section will consider that phase
since it is likely to be of particular interest to readers
of this journal.
Woven into the
pattern there were, however, all sorts of other aspects of
his career some of them continuing after his return to
Australia in 1969 virtually up to the time of his death in
Brisbane in 1989. He had a reputation in demography, land
use studies, and econometrics to add to everything else
which he accomplished. Not least during his Oxford period
he became involved in major controversies of a
quasi-political nature for which he became particularly
well known in Britain (Growthmanship,
1961 and
Taxmanship, 1964 were
notable tracts), as a free market economist after a marked
shift in his political instincts.
It will not be
an easy task to pick out all of the elements such
multi-faceted activity, not least because he always
appeared to be working on numerous projects simultaneously
with astonishing energy and determination, and as he often
admitted himself, with a sheer liking for controversy. His
life was also punctuated by numerous 'unplanned'
occurrences which opened up surprising avenues of
endeavour. That has already been noticed in his
transformation from raw undergraduate in a science subject
to a member of one of the most formidable economics
faculties which has ever existed. It also occurred in his
move to Australia, and his return to Oxford. What bound it
all together was an abiding passion for statistical
information, a love of patterns in numbers, and not least a
genius for analysis and a great facility in writing.
To continue the
chronology Clark left Oxford in 1969, after a slightly
early retirement, to return to Australia first for a brief
spell at Monash University, and then at the University of
Queensland, where for the remainder of his life he was a
'research consultant'. As we will see it was to herald a
continuance of productive work, virtually to the end of his
life in September 1989.
3. National Income and Economic Progress
This
must be a somewhat selective treatment of the major early
contributions, what could be regarded as a 'Cambridge'
phase but continuing through to the final 1957 edition
of
Conditions . This had
begun in Cambridge, but the first edition was published
when he was a civil servant. The largely re-written second
edition appeared in 1951 (he was, as already mentioned, a
somewhat unconventional government official since he
pursued his academic interests simultaneously), while the
final edition appeared when he was at Oxford. To understand
the importance of the book we can look first at Clark's
earlier solo efforts
The National Income 1924-31 (1932),
and
National Income and Outlay (1937). Both of
those were much conditioned by the Cambridge background,
which was of course dominated by the development of
Keynes'
Treatise on Money and later
the
General Theory. In addition
to that it has to be remembered that what we now regard as
straightforward estimates of national income and
expenditure, compiled as a matter of routine by government
statisticians, barely existed. What Clark did, virtually
single handed, was to prepare United Kingdom estimates,
partly based on earlier work it is true, but with updating
to cover the critical years of the late 1920's and early
1930's. He approached the material by looking at incomes,
production, and expenditure in the now familiar manner
attempting to reconcile the estimates obtained in the three
ways. Fundamentally it was an approach based on the
familiar identities of Keynesian economics, and though that
needed some later tidying up, the work looks surprisingly
modern. He was also much concerned with providing estimates
of what we would now regard as 'real values' (i.e. after
removing the effects of changes in the value of money).
That, however, was not the end of his pioneering efforts.
Clark was much concerned with adding some flesh to the
bones of theory. A famous estimate of the size of the
Keynesian 'multiplier' was one outcome of that. It is
little wonder that Keynes should regard him as 'quite first
class'.
Having established a reputation as one of the founders of
national accounting (the other was, of course, Simon
Kuznets working in the United States) Clark's imagination
then moved in other directions. Obviously he could well
appreciate the importance of the new macroeconomics
associated with Keynes, but he did not rest with the 'short
period' associated with macroeconomic management, he had an
eye to the 'long term'. This was much influenced by contact
with two economists at the London School of Economics, the
Harvard professor Alyn Young and the Englishman G.T.Jones
who were both interested in the phenomenon of 'increasing
returns'. Those who recall their theory will remember the
famous taunt to microeconomists by the economic historian
Sir John Clapham who spoke of the 'empty economic boxes' of
theory which failed to recognise the need for
quantification of situations in which returns 'increased'
or 'diminished' though theorists often spoke of such
conditions as being fundamental. It is impossible to
read
Conditions of Economic Progress without
remembering that issue as part of the background. With it
are coupled the famous questions relating to the speed of
economic growth, the differences in levels of income and
productivity between countries and the changes which occur
in the allocation of labour and capital to various
activities as growth proceeds. Before all of this could be
studied, however, there was one major snag, that of
conversion of statistics relating to various countries with
their own monetary units to a common basis. It is what we
now regard as the familiar issue of 'purchasing power
parities' for international comparisons.
Colin first
tackled this issue in a 1938 article in
Weltwirtschafliches Archiv, where he used
his 'International Unit' one unit of which was equivalent
to the quantity of goods and services exchangeable for $1
over the average of the decade 1925-34. To convert the
currency of another country to dollars was not simply a
matter of using the exchange rate; it had to be done using
a 'binary comparison' based on a Fisher ideal index number.
This is fully explained in the various editions of
Conditions of Economic Progress (see
Conditions, 1957, pp.16-17 and
Chapter II), along with further work in which Colin
attempted to deal with another problem. The difficulty with
the I.U. was that it appeared to give inconsistent results
for low income countries (the problem basically is that of
handling personal and professional services) and was
replaced, after much laborious calculation, with an 0.U.
(Oriental Unit) for comparisons with some of the poorer
countries.
To catch the flavour of what Colin had accomplished by 1957
the interested reader is referred to Chapter III
('International Comparisons of Real Income per Head and
Real Product per Man Hour',
Conditions 1957). It is an
enormous chapter of 145 pages dealing with 28 countries in
which series for national income are sorted out and fully
documented in immense detail for, as Colin would say in
conversation, 'as long a time period as possible'. There
is, for example, an annual time series for Great Britain
from 1870 to 1953, for Italy from 1901, for the U.S.A from
1850 (though some of the earlier estimates are for
decades), and for Sweden from 1876.
A number of
points will become obvious to anyone who attempts to read
the chapter. First, there is incredible detail which is
often such as to make the material wholly indigestible.
Second, key explanations are often given in a somewhat
obscure manner. Take the following passage:
"As we propose
to define them, real income differs from real product in
two respects. A country with a given level of real product
may have a higher or a lower real income in so far as real
product is augmented, or reduced, by investment income
receivable or payable to other countries. A country with a
given level of real product may also find its real income
augmented if the terms of trade turn in its favour so that
it receives a larger volume of imports for a given number
of exports: and conversely" (Conditions
1957, p. 86).
This is not
difficult in itself, but the detail of the calculations
involved is then expressed in algebraic terms in a way
which makes the first proposition regarding investment
income very clear, but makes the logic of the terms of
trade correction incredibly dense.
The third
characteristic relates to the problem of understanding the
main message! After tables for the 28 countries we reach
the sudden remark that:
"It is of great
interest to distil all the aboveexperience, where we can,
into simple figures for the long-period rate of growth of
real product per man hour. Clearly we do more good by
measuring this than by measuring real income per head, a
figure which is subjected to the additional chance factors
of changes in the terms of trade, of working hours and of
the ratio of dependants to producers" (Conditions
,
1957, p.200).
Colin then
tells us that he plotted all of the material on logarithmic
graph paper to examine the trend lines to produce a whole
page table of rates of growth by period. It is fascinating
material, but the whole discussion (including the paragraph
quoted above) covers no more than the equivalent of one
page of text and does little more than say that some
countries such as the United States have 'a particularly
uniform trend line' (the growth rate was 2.3% from 1890 to
1952), and that some appear to have had productivity
affected by war and the Great Depression. It is a
singularly abrupt treatment of what has, by any reckoning,
to be one of the most important of all economic issues.
Worse it then jumps immediately to a discussion of India
and China, before returning to a long additional treatment
of Great Britain. The latter is full of characteristic
detail, but then concludes with a table of income (in I.U.)
per head of occupied population at various dates between
1688 (the earliest recorded attempt at a national income
estimate by Gregory King) and 1870. The results, which are
said to illustrate some observations of John Stuart Mill,
are summarised in one sentence: "The eighteenth century,
whatever its cultural and political achievements, appears
to have been a period of economic decline for the mass of
the English people; and the first half of the nineteenth
century, with all the tremendous changes brought about,
only just succeeded in maintaining real income per head
constant" (Conditions
,
1957, p.217-8).
In that one chapter we can see exactly how Colin worked. He
assembled huge volumes of material, describing it in such
detail that readers, while obviously recognising that the
work load which he imposed upon himself was prodigious,
feel their heads reeling! He was not always as clear in
describing his methodology as he might have been, often
burying key explanations in a mass of his detail. Then his
key messages have, almost literally, to be 'dug out' of the
text since they are often found in single tables presented
with the minimum of embroidery. The two examples given
above of the growth experience of a large number of
countries and of Britain in the industrial revolution
period are perfect examples! However, lest this should
appear destructively critical, it also has to be emphasised
that even the third edition of
Conditions appeared almost
forty years ago!
4. More on Conditions of Economic
Progress
Recall
that the discussion above only dealt with
Conditions through its
third chapter. There were nine more, plus in the 1957 an
'Excursus' into economic comparisons with the ancient
world. They cover the national income of Soviet Russia,
productivity in three sectors (primary, manufacturing and
service industry), consumption as a function of real
income, the distribution of labour between industries,
relative incomes as controllers of labour supply, capital
and its accumulation, and the distribution of income. It is
impossible to describe this mass of material and only a few
points will be made which will be of interest to
agricultural economists.
The first and
most obvious is the presentation of statistics relating to
agricultural output in terms of I.U., in an astonishing 64
country table (Conditions
,
1957, p.256), followed by an analysis of productivity
growth in a number of important cases. What emerges from
that (again after a little digging) is a picture of
agricultural transformation within the developed world. For
example (graphs pages 271 and 273) real product per man
hour in the United Kingdom and Sweden is shown to have been
increasing by vastly different rates (0.7% per year and
2.4%) from 1860 to around 1940, but thereafter to have
accelerated (4.0% and 4.6%). For the United States the
shift is from 1.6% to 6.3% (p. 273). The reason is the move
from farming being self-contained' to a situation in which:
"The farmer is
now almost at one with the business man and industrialist
buying one set of commodities in order to transform them
into another; and in the short space of twenty years this
transformation has been extremely rapid"
(Conditions
,
1957, p.278).
More
interesting, in many ways, is the attempt to look at the
'diminishing returns' relationship between density of the
agricultural population and real product per person. This
matter will reappear since Colin had views about population
which were highly contentious. In 1957 his opinions were
somewhat muted. He pointed to the fact that there were
countries with low density and high productivity (New
Zealand, U.S.A., Canada, Argentina), and at the other end
of the scale the low productivity, high density cases of
the Middle and Far East. However, he was then able to argue
that "the exceptions are more interesting"
(Conditions
1957, p. 311).
For example Italy had a density very similar to many
Eastern countries, "but a considerably higher
productivity", while the USSR (even excluding the cold
climate areas) had density similar to Denmark, but the
latter country was far ahead in productivity. Further, the
Netherlands had dense settlement and exceptional
productivity. In short the 'law of diminishing returns' can
be 'suspended'.
Chapter VIII on
consumption has a great deal of analysis of food demand
including a remarkable demonstration, based on a 24 country
data set for 1950-51 in which food consumption at the 'farm
gate' level measured in I.U. is set against real income.
Without stating the equation the conclusion is:
"We had long
been familiar with Adam Smith's generalisation that 'the
desire for food is limited by the narrow capacity of the
human stomach', but it is interesting to have this
re-stated as a definite asymptote" (Conditions
,
1957, p.445).
Third, and
briefly, one quotation from Chapter IX on the distribution
of labour will be enough to remind readers of one of
Colin's most famous rules (it is inevitable that it is
backed by a table, in this case one which occupies eleven
closely set pages):
"A wide, simple
and far-reaching generalisation in this field is to the
effect that, as time goes on and communities become more
economically advanced, the numbers engaged in agriculture
tend to decline relative to the numbers in manufacture,
which in their turn decline relative to the numbers engaged
in services" (Conditions
,
1957, p.492).
5. Econometrics
There
is one slightly curious feature of Colin Clark's career. If
one reads
Conditions of Economic Progress, and much of
his later work, it is soon realised that it is virtually
devoid of formal econometrics. Earlier I mentioned his
addiction to graphs in order to fit 'trend lines' and his
use of a mathematical derivation to deal with food
consumption. There is also some modest use of the
Cobb-Douglas production function in the chapter on capital
resources (Conditions
,
1957, pps.585-593). However, during his Australian period
he did devote some of his time to 'model building'. The
results appeared first in a highly controversial
book
The Economics of 1960, which
appeared in 1940, and was nothing less than an attempt to
use an econometric forecasting model for the world economy.
It became a sensation since it contained a prediction that
there would be a huge swing in the terms of trade in favour
of primary products (notably industrial raw materials)
because he held the view that there would be extensive
industrialisation in China and India. He was later to
acknowledge that this was a 'famously wrong' prediction, or
at least one which was some decades ahead of its time!
Later he
published a much more pregnant work 'A system of equations
explaining the United States trade cycle, 1921-41'
(Econometrica,
1949), which was also one of the first attempts to develop
the type of macroeconomic model with which we are all now
familiar. Colin pursued much of his work privately with the
Econometric Institute Inc (an American consulting
organisation), and also appears as a co-author of a
textbook (Spencer, Clark and Hoguet,
Business and Economic Forecasting, 1961) which
is one of the Irwin Series publications. There is no doubt
that he was skilled in econometric model building, or that
he must rank as one of the pioneers. However, while
everyone knows of his contribution the
Econometrica article is
rarely formally referred to and his contribution appears to
have been submerged beneath the weight of other major
writers such as Tinbergen, Klein and those associated with
the Cowles Commission. A subsidiary reason, perhaps, is an
obvious one; Colin was so active in following his own
particular brand of data assembly that he simply did not
have the time to pursue the fast developing techniques of
econometric analysis and instead he maximised his own
comparative advantage.
6. Agricultural Economics
The
Oxford phase of Colin Clark's career (1953-1969) was one in
which, clearly, he had to pay more attention to
agricultural economics and to the running of a University
department with formal teaching responsibilities for the
training of undergraduates in the agriculture faculty and
for a postgraduate diploma in agricultural economics. He
did none of the former, leaving it to colleagues, and gave
only one series of lectures to the diploma students. That
dealt with the very broad issues of population, food supply
and land use. He also ran a famous 'Monday seminar' to
which he invited speakers who were not by any means
concerned with the subject; among many others of great
eminence his guest list included the famous Oxford
economists Sir Roy Harrod and Sir John Hicks, and Lord
Beveridge who was mentioned earlier. Colin believed that
his students should be 'educated' in the widest possible
sense rather than simply being 'trained' in a particular
branch of economics. He also interpreted his brief very
widely, engaging in numerous controversies which were
strictly outside the field of his immediate brief.
So much was
done in this period that the surface can only be scratched.
We have already mentioned the third edition of
Conditions of Economic Progress (1957), but
other major books included
Economics of Subsistence Agriculture (1964, with M.
R. Haswell), the
Economics of Irrigation (1967, later
revised with I. Carruthers in 1981, and full of information
on the returns to water use and capital costs of
installation), and
Population Growth and Land Use (1967, revised
in 1977). There was also a mass of other output in book
chapters, journals (that included his Presidential Address
to the Agricultural Economics Society, in 1968, on 'The
Value of Agricultural Land'), pamphlets, newspaper articles
and mimeographs. To be selective I will mention two matters
on which he made an indelible mark (population and food
supply, and the state of subsistence farming), pick up some
of the 'outside interests', and end the section with his
thoughts on the European farming scene.
Population and
food supply became on his major concerns, and it was
probably the one area in which his views attracted the
greatest mixture of admiration and fierce controversy. As
noted Colin had worked at FAO, but he became one of its
fiercest critics. It can all be summed up in one paragraph:
There should
not be many people now who still believe the extraordinary
mis-statement, originally made in 1950 and so widely
circulated around the world that 'a lifetime of
malnutrition and actual hunger is the lot of at least
two-thirds of mankind'. Why such an obviously erroneous
statement should have received such widespread credence is
a problem for the social psychologist; a great many people
seem to have suspended their normal critical faculties
because of the intensity of their belief that the world was
overpopulated, or needed a world revolution (or both for
some people). (Population
Growth and Land Use, 1967, p.124,
in a chapter condensed from
Economics of Subsistence Agriculture , 1964).
Criticism of
the 'two thirds' legend, some felt, became an obsession,
while others of less charitable inclination believed that
Colin's view that 'the earth can feed its people' was based
on the fact that he had become a convert to the Church of
Rome, and that he had, indeed, been a member of the Pope's
Commission on Population (1964-6) which resulted in the
appearance of Humanae
Vitae.
This is clearly
a difficult area! The first point to make is that Colin was
always ready to acknowledge that FAO was willing to change
its views, often quoting a paper by Dr. Sukhatme (Director
General of Statistics) who by 1961 had reduced the
estimates of 'hunger' to 10-15 per cent of population,
though he did regard the further estimate of 35-40 per cent
being 'malnourished' as being mistakenly based on dietary
standards of Western Europe. In short, he was always
willing to 'debate' the issue and take criticism of his own
view, and did not adopt a 'doctrinaire' approach. His
contribution to that debate was, of course, formidable. He
was well versed in the medical literature about nutrition
and was always ready to quote evidence about the 'needs' of
populations living in various circumstances. The curious
point, however, is that he was strangely reticent in making
'global' estimates of food shortage and never blatantly
attempted to take a 'minimalist' approach; that was clearly
his inclination but one must be cautious and get his views
into their proper context.
The aim of his
work was not simply to trade one estimate of 'hunger'
against another. His prime concern was to argue that the
earth could indeed 'feed its people' given increases in
technical knowledge and satisfactory economic arrangements.
On the former he was constantly demonstrating the immense
growth which had taken place in agricultural productivity
per unit area of land, he had careful estimates of the
availability of what he called 'standard farm land', and
from that he was able to derive an estimate that, even at
American levels of diet, there was enough productive
capacity to feed no less than 47 million persons (or about
4 persons being fed per hectare). (Population
Growth and Land Use, p.153). That
is a staggering figure when one remembers that world
population in 1950, when he first became interested in the
subject was 2.5 billion, doubling to around 1988, and now
being projected for 2025 to 8.5 billion.
Part of the difficulty in looking at material of this sort
is that there is first, a danger of assuming that Colin was
predicting, or worse even advocating, what amounted to
unlimited population growth. He was doing neither; he
regarded population predictions as "anyone's guess", and he
had dire warnings about other consequences of population
growth other than mere feeding. The other problem was that
he was often vague about the means of increasing food
supply, and the duties of those not in need to those who
are. On the latter he did little more than drop hints,
though they are sometimes enough to give some insight. For
example in
Conditions of Economic Progress (1957, p.324)
he first contemplated a world with an agricultural
population density similar to that of the most intensely
settled areas of Western Europe and then went on: "If, on
the other hand, we decide to neglect our obvious duty, and
do nothing to help the hungry countries obtain the
transport, communications and fertilisers which they
require, we can see what will happen".
What would
happen, in fact, would be 'accelerated diminishing returns'
to 'the very limits of subsistence'!
The work on
subsistence agriculture bore all of the characteristic
hallmarks of the prime assembler of statistical material,
in a part of our subject which (when it was written) was
ill-served with data. In part it was an attack on the FAO
view of the world, in part an attack on the notion that
there is a mass of surplus labour in Third World
agriculture (one must not forget the heavy labour needs at
sowing and harvest or one is lead to the view that a pool
of readily accessible manpower is easily available), though
it also shows how Colin could conjure up a statistical
generalisation from a mass of detailed material. The thrust
is evident from a later source:
" It was not
until the 1960s that I began to develop the line of thought
(published in The
Economics of Subsistence Agriculture
with M. R.
Haswell) that improvements in agricultural productivity
must be regarded as another necessary
condition for industrial
development. Both international comparisons and time series
indicated that a rising proportion of the labour force in
nonfarm occupations was only possible if agricultural
productivity not only rose, but rose at an increasing pace
(the nonfarm proportion of the labour force rising as a
linear function of the logarithm
of
farm productivity). (Quoted from
Pioneers in Development).
While Colin's
views were often regarded as extreme, particularly in his
estimates of potential food production and population
(remember the 47 million), an irony should be noted!
Writing in 1994 Barbara Harriss-White had a paragraph which
placed his work in a modern perspective, complete with a
reference to FAO,
"The United
Nations Food and Agriculture Organisation has reckoned that
less than half the world's potential arable land is under
cultivation. Using advanced agricultural technology it
would be possible to sustain 33 billion people - seven
times the present population - and our current population
could be fed on a simple but adequate diet of vegetarian
and range based animal products by systems of production in
which fertilizer, agro-chemicals and high-yielding
varieties did not have to be used. Even though global food
productivity gains are slackening or have plateaued, if
there are problems in the production of food, as our book
suggests, they are not of technical limitation" (Harriss
White and Hoffenberg, p.2).
Colin's wider
interests, while still formally responsible for
agricultural economics, were considerable. Two of them (to
be selective again) related to the 'causes' of economic
growth, and the general effects of high taxation
(Growthmanship,
1961, and
Taxmanship, 1964) . Both
appear under the imprint of the Institute of Economic
Affairs, a London based 'think tank' (to use the British
terminology for such organisations) with 'free market'
leanings which was to provide powerful ammunition against
central planning, and which is often thought to have
provided much of the intellectual input leading to the
election of Mrs. Thatcher's government in 1979.
Growthmanship is a powerful
statement of the view (amply illustrated with a range of
statistics, as would be expected) that capital investment
as the leading force in growth is misplaced. Rather 'it is
more correct to say that capital is created during growth
than that growth is a creation of capital'. Instead 'the
principal factors in economic growth are not physical but
human...(which) develop steadily but slowly'. The
implication is that governments 'should avoid attempting to
force accelerated growth, since to do so is to risk
impeding it and destroying individual liberties in the
process'. The improvement of human skills through
education, and allowing enterprise to flourish through
incentives, are more likely to result in rising standards
of living.
In similar
vein
Taxmanship argued that
taxes levied above 25% of net national product at factor
cost were a source of inflation, and further that
incentives could only be damaged by attempts to secure
welfare improvements by excessive re-distribution of by
government assumption of excessive responsibility for
social services. It is far better, it was argued, for
individuals to assume much more personal responsibility for
their own welfare provision. This type of thinking, allied
to the anti-planning stance of
Growthmanship, appear to be
clear evidence of a move across the political spectrum from
the left (the Labour party of his early years) to the right
(i.e. to the Conservative party). It is, however, wise to
be cautious on this point. Colin always stated that in his
later years he had no party affiliation in any formal
sense, and that his sympathies, in terms of concern for the
human condition, remained those of the 'left'. What he
disliked was the drift of thinking in the direction of
planning and state provision, which he believed were
inimical to real progress.
One can, of
course, guess what his views on European agricultural
policy amounted to!
Growthmanship sums them up in
one sentence, 'the subsidisation of farming and other
favoured industries must be brought to an end'. There are
similar expressions in
British Trade in the Common Market, though it
was, however, better put in 'Agricultural Economics - The
Further Horizon' published in the
Journal of Agricultural Economics (December,
1962) when Britain was still considering entry into the
Community of Six. He prophesied first that the Common
Market would eventually include Britain, Denmark and
Ireland, not to mention Norway and Portugal (he regarded
Sweden as a doubtful starter, getting matters wrong on that
country, as well as on Norway, though it was a rather good
shot for a 1962 prediction!). He did not disapprove of
membership but one criticism was not only scathing but
immensely prophetic. It can stand alone, though the reader
is asked to remember only that the 'pro-agriculture' stance
which he adopted in relation to the developing countries is
discarded in cases of richer economies.
"What has been
said above must not be taken as implying any approval of
the so-called agricultural policy...as at present
announced. The agricultural policy on which the
...countries were supposed to have reached agreement by
31st. December, 1961, and which in fact they reached after
the puerile device of declaring that their discussion had
only been adjourned and not suspended, and after a series
of all night sittings, at 5-30 in the morning of 14 th.
January 1962, is quite hopeless without any redeeming
features. The extraordinary obscurity of the language in
which it is expressed, and indeed the wholesale crop of
errors in the official text, seem to indicate that the
authors were not easy in their minds about it. The work
will have to be done all over again. The policy...continues
to protect all the most uneconomic and highest cost
producers in the Common Market area, without imposing any
restriction on their output; and, knowing that this policy
will lead to over-production, the...countries have proposed
to meet this by heavy levies on imports, whose proceeds
will be used to finance the organised dumping of surplus
products on a large scale. No wonder that such a foolish
and internationally unacceptable policy has to be wrapped
up in such obscure verbiage. With the entry of Britain and
most of the remaining European countries, into the Common
Market there will in fact be few areas of the world in
which surplus agricultural policy could be dumped, even if
dumping were a desirable policy".
7. Later years
In
1969 (when 64) Colin decided that retirement was to be
spent in Australia and he accepted an invitation to join
Monash University, where he spent a brief period before
returning to Brisbane and an unofficial position at the
University of Queensland. For almost twenty years he
continued to write many shorter articles, but also to
correspond avidly, and to telling effect, with younger
writers on subjects which were close to his interests.
One example of
his intervention will be sufficient. In his last decade the
data base for internationally comparable national product
statistics was very much taken over by the United Nations
Statistical Office and the World Bank. Though some material
had been published earlier the key reference work appeared
in 1982 in the authorship of Kravis, Heston and Summers.
Naturally they mention him as one of the earliest of
writers on the subject (p. 3), but his name then re-appears
(p.139). Recall from above that Colin had been much
concerned with the problem of comparison of the incomes of
the poorer countries of the world, the particular issue
being the that of what Kravis, Heston and Summers describe
as 'comparison resistant services'. They then note a
suggestion, as they say 'made in correspondence', of a
method to deal with the issue. The details need not detain
us; the important point is simply that Colin, by that time,
was well into his seventies.
It was in the second of his Australian periods that he also
produced his last major book,
Regional and Urban Location (1982).
Sections of that grew out of parts of
Population Growth and Land Use (1967), though
it may still strike the reader as somewhat odd that he
should choose a title somewhat at variance with his earlier
interests. Part of the reason was that Colin, despite often
taking a free market stance, was always somewhat sceptical
about the role of market forces in guiding the spatial
distribution of economic activities. Land use changes work
slowly, cannot easily be reversed, and use itself can
generate many externalities.
More will be
said in the next section about Colin's overall reputation
in economics and about his personality. However, it is
worth noting that he has set out his own testament, and one
which will greatly help any reader to appreciate some of
his motivations. In 1983 the World Bank invited a number of
'pioneers in development' to prepare essays on their
careers, one of them being Colin (Meier and Seers, 1984).
Since the publication is easily accessible nothing more
will be done than pick out a one long quotation which (like
the passages quoted earlier) will serve as an indicator of
one of his major lines of thought (his favouring of
agriculture in development, note!), the sheer power of his
writing, and his ability to provoke: "It is now universally
recognised (though I do not think this was the case when I
was writing
Conditions of Economic Progress) that economic
advance leads to a declining proportion of the labour force
being engaged in agriculture. However, some of those
engaged in formulating agricultural policy in developing
countries have treated this relationship as if it were
reversible - that is, as if the creation of industrial
employment would automatically enrich the country. What a
disastrous error. India, under the guidance of a leading
scientist, followed a most peculiar line of reasoning.
Population, he pointed out, was increasing, therefore we
need more food. To produce more food we need fertilizer. So
far correct. The we must produce the fertilizer...And to
construct fertilizer plants we need steel. Therefore as
much as possible of our available resources should go into
building large steel works. Perhaps because of the
extraordinary conditions in which it is produced, steel
attracts emotional attributes which prevent rational
discussion. Once when I was asked in India whether further
investment in steel works should be undertaken, I replied
that this was a problem in comparative religion".
8. The scholar and the man
The
fact that Colin was chosen as one of the 'pioneers of
development' in the work just mentioned placed him on a par
with, among others, Sir Arthur Lewis, Gunnar Myrdal,
W.W.Rostow and Jan Tinbergen! He was widely recognised in
other ways with four honorary doctorates (the last,
fittingly and movingly from the University of Queensland
late in his life), he was a Corresponding Fellow of the
British Academy, a Fellow of the Econometric Society,
a Festchrift
was
published in 1988, his biography appears in many of the
standard reference works, and considerable efforts have
been made by Australian colleagues to document his full
bibliography. The highest honour of all, a Nobel Prize in
Economics, did, however, elude him. It is idle to speculate
about the reasons, though it is interesting to note that
Simon Kuznets, who did become a Nobel Laureate for work on
economic growth, was mentioned by Colin in a recorded
conversation. His remark was quite simple: 'He has done
more than I have'.
Given his long
record of intellectual achievement it is easy to forget
Colin as a person. All who knew him could recognise his
sheer dynamism and perpetual intellectual curiosity. A
discussion with him - and there were many who sought him
out - or a seminar presided over by him in his inimitable
way (feigned sleep followed by devastating interjections)
were occasions to be treasured. To those who saw him only
in formal settings he could appear awesome, not least
because he knew so much and could instantly recall
everything he knew down to the last detail. The fictional
detective Sherlock Holmes, created by Sir Arthur Conan
Doyle, had an equally exceptional brother -Mycroft - who
made occasional appearance in the novels. Sherlock said of
him "All men are specialists, but Mycroft's speciality is
omniscience." The description fits Colin Clark! However,
despite his apparent awesomeness he was deeply religious
and a devoted family man (his marriage to Marjorie
Tattersall was blessed with seven sons and a daughter), who
also had one happy knack. While the weight of his intellect
was always apparent he never allowed it to bear down on
those who, for whatever reason, were unable to match it. He
was also extraordinarily kind and completely free of
rancour.
The obituaries,
when they had to come, were glowing. One, in particular, by
Professor Mark Blaug (Guardian, 11 September, 1989) summed
him up perfectly;
"Those who knew
him personally will remember a charm and sweetness of
character that contrasted with his laborious statistical
studies and his provocative writings on matters of economic
policy."
Bibliography
The list below
records only Colin Clark's major books. An attempt to
compile a full record of all his
works is
provided in: Perkins, J.O.N, and alan A. Powell,(1990)
'Colin Clark, 1905-1989: An Affectionate Memoir',
Economic
Record, Volume 66,
No. 195, December.
The books by
Colin Clark are listed below (the publisher, except where
stated is MacMillan, London): The
National Income 1924-31 (1932)
The
Economic Position of Great Britain (1936, with
A.C.Pigou) National
Income and Outlay (1937)
Conditions
of Economics Progress (1940, 1951,
1957) The
National Income of Australia (1938, with
J.G.Crawford) A Critique
of Russian Statistics (1939)
Economics
of 1960 (1941)
Business
and Economic Forecasting (1961, with
M.H.Spencer and P.W.Hoguet, Homewood, Irwin)
Growthmanship,
1961 (London, Institute of Economic Affairs)
British
Trade in the Common Market (1962, with H.
Frankel and Lynden Moore, London, Stevens)
Economics
of Subsistence Agriculture (1964, with
M.R.Haswell) Economics
of Irrigation (1967, revised
with I. Carruthers, 1981, Liverpool, Liverpool University
Press)
Population
Growth and Land Use (1967,
1977) Regional
and Urban Location (1982, St.
Lucia, Queensland University Press) Taxmanship,
(1964, London, Institute of Economic Affairs)
Other
references cited are:
Harriss-White,
B. and Hoffenberg (1994), Food:
Multidisciplinary Perspectives, Oxford,
Blackwell
Ironmonger, D.,
Van Hoa, T. and Perkins, J.O.N, (1988), National
Income and Economic Progress: Essays in Honour of Colin
Clark
Kravis, I.B,
Heston, A. and Summers, R., (1982), World
Product and Income: International Comparisons of Real Gross
Product, Baltimore and
London, The Johns Hopkins University Press.
Meier, G.M. and
Seers, D. (eds) (1984), Pioneers in
Development: Oxford:
Oxford University Press for the World Bank.