The relationship between income distribution and employment generation is investigated at length, as is the vicious circle whereby low levels of income, by constraining market size, simultaneously determined and are determined by low levels of industrial activity and thereby employment. It is argued that the major approach to breaking out of this vicious circle should be a massive agrarian reform, complemented by government programs in support of the small farm sector and in defense of its share of the market. The major recommendations offered is that Latin American governments commit themselves to a basic reorientation in development planning, subscribing to a set of aggressive, well-conceived policies designed to achieve maximum employment generation. An Office for Employment Creation is recommended as the major agency for such a commitment.
