“International Fund Could Benefit N.Z.”

Press, Volume XCVIII, Issue 28784, 3 January 1959, Page 14

“International Fund Could Benefit N.Z.”

(New Zealand Press Association)

DUNEDIN, January 2. An international fund, with no strings attached, could x be of great benefit to countries like Australia and New Zealand in the view of Sir Douglas Copland. The 64-year-old Australian economist and diplomatist is on a brief visit to New Zealand visiting relatives. Such a fund would co-ordinate and increase assistance, to underdeveloped countries, he said. It could be established by the United Nations Economic and Social Council, which he once presided over, but its formation would depend on governments. It had been discussed for the last five years, but no advance had been made.

Sir Douglas Copland said it was very singular that the World Bank had decided to double its capital. He believed international investment was more important to all the world than for merely providing security at home. “The rate of investment' determines the rate of growth of a country, and the world today is growing at a greater rate than ever before,” he said. He gave two reasons for expansion—the increase in population, and the fact that there were really three worlds today—the Western world, the Communist world, and the under-developed or uncommitted world.

Population was increasing as a result of “death control”—the conquest of disease and the improvement in nutrition and health administration. “This will result in the world’s population doubling before the end of the present century. Today it is about 2700 million: by the end of the century it will be 5500 million or more.

“You have only to think what this means in terms of food, houses, transport and the industry of people available to work,” he said. “Nothing like this has ever happened in the world before and it means a tremendous expansion in international trade.” Outlining the second cause , of world expansion, the “three worlds,” Sir Douglas Copland said “Whether we like it or not, the Communist world is expanding at a very rapid rate. “Recently an American organisation published figures giving the rate of growth in leading countries of the world, and it measured this by the increase in volume of gross products. In Russia today the growth is 7 per cent, per annum, which means it will double its gross production in 10 years. “Germany was ahead of Russia, but most of the Western world had a growth of five per cent, or less. “Growth depends on the expansion of industry and agriculture. This, in turn, depends on what percentage of yearly income is devoted to building for the .future instead of consumption for the present. “In the under-developed world

the efforts of governments are directed towards improving the technique of agriculture and to establishing modern industry and transport. So here again you have growth. “But this growth depends in part upon systems in technique and equipment from the other two worlds.” he said. “In this respect the Communist world now offers a challenge to the Western world. News was received the other day of their proffering aid to Egypt to help build the Aswan dam.

“Unless the Western world matched the Communist world in its rate of expansion, and its assistance to the under-developed world, it will not be able to maintain its leadership. “For this reason the work of the Economic and Social Council is more important than that of any other council of the United Nations,” said Sir ‘ Douglas Copland. “It can establish an international fund, with no strings attached, under which assistance to the under-developed world could be co-ordinated and increased.”