This paper makes a brief survey of the debate on the transformation problem in Western countries during the last decade. Many studies on the problem at this period have strong concern for the 'New Approach' proposed by Dumenil, Foley and Lipietz in 1980's and various evaluations of the 'New Approach' exist which are quite far from reaching any consensus. Szumski, Carchedi and Haan, for example, try to solve the problem in their criticisms ofthe 'New Approach'. Such situation reflects different views of the transformation problem. While the advocates of the 'New Approach' want to analyse the income
distribution between capital and labour, its critics tend to consider prices of production as a consequence of capitalistic unequal exchanges of labour. According to the author, the second view is more appropriate on the transformation problem. The ultimate origin of incomes can be generally sought to productive labour expenses without introducing prices of production but the levels of incomes can be determined only after investigating prices ofproduction concretely. The author also points out that the debate in 90's has not progressed so rapidly as in and before 80's.