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Aid to Underdeveloped Countries

Published online by Cambridge University Press:  26 March 2020

R. L. Major
R. L. Major*
Affiliation:
National Institute
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Extract

Aid from industrial countries (that is, grants and long-term public and private investment) now makes a significant contribution to the economies of underdeveloped countries. From 1956 to 1959, these countries received, on average, $6½ billion a year. This yearly inflow was equal to about a third of their income from merchandise exports to the rest of the world, or something approaching two-thirds of their total stock of gold and foreign exchange reserves; it is very much bigger than it was in the post-war years up to 1952—when it was probably not more than $2 billion a year.

Type
Articles
Information
National Institute Economic Review , Volume 15 , May 1961 , pp. 30 - 35
Copyright
Copyright © 1961 National Institute of Economic and Social Research

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References

(1) The material in this note was derived mainly from International Economic Assistance to the Less Developed Countries, United Nations, and The Flow of Financial Resources to Countries in Course of Economic Development 1956-1959, OEEC, 1961.

(2) Aid here includes reparation payments and assistance from the International Bank for Reconstruction and Develop ment (that is, net borrowing less gold subscriptions and the utilised part of currency subscriptions). It excludes transactions with the International Monetary Fund, military aid and private export credits.

(3) Measures for the Economic Development of Under developed Countries; Department of Economic and Social Affairs, United Nations, (New York 1951), page 79.

(4) The figures for 1946-1952 are IMF figures for the flow of public funds, and cover flows from transactions to which either party was a Government or an international organisation. The figures for 1956-1959, given later in this note, are OEEC figures, and they include in Government aid only those transactions for which the Government of the industrial country was responsible. Secondly, the category of ‘primary producing countries’ used for 1946-1952 is in some ways different from the category’ underdeveloped countries' used for 1956-1959. Primary producing countries include, and underdeveloped countries exclude, Australia, Iceland, the Irish Republic, New Zealand, and the Union of South Africa. Conversely, underdeveloped countries include, and primary producing countries exclude, Greece, Spain, Turkey and Yugoslavia.

(1) Gilbert Mathieu, article in Le Monde, 26-27 February 1961.

(1) G. Skorov, ‘L'Aide Economique et Technique de l'U.R.S.S. aux Pays Sous-developpes’, Tiers Monde, October December, 1960.