Not So Glowing

corruption generated by controls is well taken, and a case could even be made for reducing controls simply on account of their administrative infeasibility. But it if useful on so important a subject to understand separately the econo- mic logic and the administrative constraints. There is, to begin with, no reason to believe that the macro imbalances are in any way less today than in the past. The balance of trade deficit is dangerously large (more so than aggre- gate statistics indicate since surpluses with Africa and East Europe cannot finance deficits with the hard currency areas) This certainly indicates the need to maintain significant import controls. Whether it also implies price and distribution controls on domes- tic industry is a more difficult question. It would seem from past experience that the firms protect- ed by import controls are liable to operate in monopolist!? or oli- gopolistic markets and hence there is need to regulate their activities (including price formation and restrictive practices). Even if the need to relax import controls over a period of time is accepted, continued controls would be required over oligopolistic market structures that naturally emer- ge from the economics of scale inherent in modern technology.