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18 October 195U
I

De Haer H.C, van derwenp
H,V» iTo^d-HoUandsohe Uitgever»
ïtaarifschappljf
Postbus 103»
itosterdam
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Bijgaand aend lic tJ een k o r t oversioht a l e gevraagd i n üw
b r i e f van 15 October» Het Bïngele zou nog ev&a. moeten worden g e contx>oleerd« Ik l a a t van mijn kant het ook nog even nazien «n zend
ü binnen een p ; a r dagen de gecorrigeai'de tekat* 'het ia a l l e e n voor
het geval dat ü liaest hebt» dat i k ü deae vooi^lopige t e k s t ook
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Hoogachteatid.

Heer Van Beusekom heeft c
opmerkingen

18 October 195U

Do Hoer H,C« van derwan»
^d-Hollandaohe Uitgever»
tchapioi j ,
103,

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>g even moeten «orden ge*
ook nog even nazien en zend
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ize voor'lopige telcst ook
tend»

C e n t r a l i z a t i o n and D e c e n t r a l i z a t i o n m Economic
Policy
The problem to indicate the correct degree of decentralization is one of the fundaraental q.uestions of organization
generally and very much also of economic organization and of
economic policy. In a way it iiiay even be said to be the essence
of economic policy itself. The problem presents itself in various
forms: in international economic policy as the problem of integration and in national economic policy as the tiuestion
what activities could best be left to individuals, or groups,
and what functions should be part of the government's task.
The author tries to indicate what the consequences of
less centralized and more centralized types of policy are and
on what criteria a choice should be based. The present study
therefore represents an attempt to deal more sj'-stematically v/ith
these questions of economic policy and thus constitutes a further
contribution to the "theory of economic policy" offered in volume 1
of this series.
The author introduces the concepts of EEHjsEoixKxjuaiiEy
"supporting", "conflicting" and"neu.tral" instruments of economic
policy, thought to be helpful in understanding the essence of the
problem of centralization.
The argrament is not only theoretical and general in
nature but is clarified by a number of examples, taken from the
national as well as the international scene. These examples
are of the well-kno\^!n class of "econometric models", as used
in modern discussions; the international model being a simple
model of ten coiintries of equal size and equal structure, but
not necessarily equal policies. The examples used enable the author
to specify his concepts and to show how his method works. Some
tentative conclusions on economic integration are drawn.