19 From the point of view of the labour unions, there is no doubt which alternative is the desirable one. The labour union movement further desires to play role of autonomous organizations, independent of the state authorities. It must strive to maintain this position, not to become a part of the government apparatus. That would imply paying too high a price for the expansion of the public an expansion deemed desirable from many viewpoints. sector - 5. All of the above reasoning has applied to the industrialized countries. It is not the intention here to elucidate in detail the significance of the public sector for underdeveloped countries. Rather as a warning it must in conclusion be mentioned only that those difficulties experienced by the highly industrialized countries and which they further have before them in connection with the change in their economic structures, initially with the primary industries' rapid decrease and then with the industries' stagnation with regard to employment -- will strike the underdeveloped countries much more powerfully. These countries commence their industrialization at a much higher level of technology. To be sure they avoid a certain amount of the misery which the old industrialized countries had to endure throughout the slow and painful initial phase. But the more rapid industrialization of underdeveloped countries can, once under way, not be expected to absorb more than a fraction of the labour force which will be expelled from the overpopulated agricultural sector -- at the same time as they lack the possibilities to emigrate which existed houndred years ago for the population surplus of the early industrialized countries. There is a considerable risk that the industrial employment in underdeveloped countries will stagnate at a lower level even while populations migration from more rational, that is, less labour-intensive agriculture still is in free swing. The rich industrialized countries have excellent opportunities to expand their already well-developed service sector while changing to a post-industrial economy, which is rather a consequence of and an expression for a high level of affluence, partial inherited from an industrially promoted infrastructure. The underdeveloped countries have principally taken over the inheritance from the colonial periods provided infrastructure, whose aim was not the development of the country's industry, but rather the exploitation and the utilization of its supply of raw materials, whose aim was not investments in internal communications but rather in menas to facilitate export, whose aim was not efforts to educate the population but rather to create a control apparatus. Thus the underdeveloped countries must build up their public sectors from a very weak starting point. It is a threatening observation that the trend toward a public sector expanding with increasing prosperity does not seem valid for the entire group of underdeveloped countries. It appears as if the countries must cross a certain threshold regarding size of revenue, administrative standards, consumption level and taxation potential of the population, general societal functions as well as ther factors in order for an uptrend to commence, and in the course of which a growing public sector will support the industrial development and increase in welfare at the same tine as it creates new employment opportunities. If this picture looks altogether too gloomy, well be it. But even if reality were much brighter, it is clear that many underdeveloped countries will experience enormous difficulties if they are forced to solve their problems entirely independently. The rich countries must also recognize their responsibility and offer support, at least up to the point at which a development process can commence. 21 REFERENCES Part 1: [1] Peacock-Wiseman, The Growth of Public Expenditure in the United Kingdom, Princeton 1961. [2] S. 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