IN the preceding discussions of the money economy, many
aspects of income distribution have been touched upon. This
subject now deserves separate attention. Like most of
the important variables with which economists are concerned,
income distribution can be viewed from a variety of perspec-
tives. Two issues are of particular interest in the dualistic
situation of Rhodesia and Nyasaland. One concerns the
effects of the distribution of income on the process of expansion
in the money economy. In this connexion, it is relevant to
examine the manner in which the allocation of money income
affects saving and investment, on the one hand, and aggregate
demand for output on the other. In addition, the effects of
expansion in the money economy on the distribution of incomes
must also be examined. This point is pertinent to judgements on
whether or not expansion in the money economy produces im-
provement in real income for the indigenous population. These
two problems are analytically distinct. In empirical measure-
ments, however, they can seldom be effectively isolated from
one another.

To students of industrialized economies, several features of
the post-war distribution of money income in Central Africa
are noteworthy. None of them is surprising in light of what
has already been said about the major properties of the money
economy. In contrast with more advanced economic systems,
the share of net geographical income paid out as wages and
salaries is surprisingly low. By the same token, the share
accruing in forms of corporate profits claims an unusually high
proportion of the total.

A brief comparison of results recorded in Central Africa with
those for the American economy in the same period is illumin-

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