STEP BY STEP THE AUTHOR TAKES US THROUGH A MASTERL ANALYSIS OF CONSUMER BEHAVIOUR, ECHANGE AND MARKETS, THEORIES OF THE FIRM AND EFFECTS OF INTERVENTION IN THE MARKET AND WELFARE
– Book Review by P. P. RAMACHANDRAN
A ccording to a Senior Executive of the Reserve Bank, " Shri. Pendharkar had a superb career but the work he did after retirement is even more praiseworthy. I well remember his book on the UTI. It sets out the genesis of the problem that hit the UTI in 2001." Here is " How". V. G. Pendharkar was the Alternate Executive Director of I M F and World Bank, Member - Secretary of the Banking Commission, first Executive Trustee of Unit Trust of India, Executive Director of RBI, Director of ECGC, Director Industrial Finance Corporation, Chairman Committee on the future of National sample Survey Organisation, Leader Indian Delegation to ECAFE Conference on Asian Currency Union and Chairman of Working Group on the System of Bank Inspections. In addition to holding such highly coveted posts he was appointed by the IMF as Adviser to the Bank of Tanzania. His first book " Unit Trust of India- Retrospect and Prospect" is the most authoritative account of the history of the formation of that unique institution and provided a cogent analysis of the UTI's Flagship " U. S. 64" and the serious problems it was riddled with. The book also gave vital guidelines for restructuring the UTI. P. V. Sukhatme, founder of the Indian Society of Agricultural Economics, requested Shri. Pendharkar to look into the subject " Heath Economics" - and teach it at the newly created Department of Health Economics of the University of Pune. At the young age of 70 Pendharkar, singlehandedly, prepared the course for the Masters degree programme. He did all these at his own cost. He used to drive in his own car and take classes for this course. The book under review is the result of these efforts. He completed the book at the age of 86! During the period 1993 to 1995, he taught Mathematics and Statistics to MA students of the Gokhale Institute if Economics. What better exponent of " Health" and " Economics" can be there than Shri. Pendharkar? The book is divided into two parts. The first part is an introductory course on Economics for students and deals with the basic definitions of economic parameters- the evolution of ' economics' from the earlier ' political economy'. Step by step the author takes us through a masterly analysis of consumer behaviour, exchange and markets, theories of the Firm and effects of intervention in the market and welfare. All propositions are explained with admirable precision and one notes the economy in use of words. With the help of charts and diagrams Shri. Pendharkar makes the esoteric subject Economics easily comprehensible. This undoubtedly is the result of a lifetime of coherent thought and rigorous analysis of economic concepts and extraordinary ability to communicate.
The second part of the book is devoted to Health Economics. Beginning with an impressive analysis of the problems, the author goes on to identify technical problems in measuring health. Three chapters are dedicated to an analysis of the problems from the point of view of the Individual. What follows is a critical study of backward linkages of health industry, manpower supply and medicare provisions - ranging from general practitioners to hospitals. The author devotes four chapters to cost benefit analysis, appraisal of an appropriate policy for the country as also cost effectiveness of health programmes. There is abundant evidence of Pendharkar's love for Sanskrit by his references to ajurveda, Sushruta, Kalidasa and other writers.The author has succeeded in providing a very useful framework for further research on ' Health Economics'. Each of the fourteen chapters has valuable references, which can be used with profit by students and scholars alike. This is truly a source book on this important subject.
FPJ 