Abstract: | There is often a respectable case to be made for the use of government price controls as an economic policy instrument in poor countries, at least with regard to the manufacturing sector. Using the particular case of Tanzania as illustration, the author shows how appropriate price control measures in the highly monopolistic conditions characteristic of the manufacturing sector of poor countries can contribute towards improved economic efficiency in that sector by inducing monopolist manufactures both to increase their level of production and to cut their production costs. The role of price control in income redistribution is also discussed. Fig., notes, ref., tab. |