The Press MONDAY, DECEMBER 12, 1960. Overseas Finance

Press, Volume XCIX, Issue 29385, 12 December 1960, Page 16

The Press MONDAY, DECEMBER 12, 1960. Overseas Finance

The new Government’s most anxious problem will be to ensure sufficient funds for development of the economy at a pace consistent with the growth of population. The Labour Government’s recourse to drastic methods to channel savings into Government funds showed how difficult it was finding the financing of its programme. The National Party is unlikely to find things very different, for a time at least. The new Government will probably have to recognise that New Zealand cannot continue to obtain enough money for development 'from internal resources alone. When the Government looks for overseas sources. it must consider first of all the International Monetary Fund and the World Bank. The continued failure of New Zealand to join the two world monetary institutions has hardened into something of a policy for which no-one is prepared to be officially responsible or to defend with any conviction. Something more sensible is demanded. The Government should carefully consider the advisability of borrowing for long-term development from the World Bank. To become entitled to this help, New Zealand would have to join the International Monetary

Fund, w’hich itself could provide help if the Dominion ran into overseas exchange difficulties. Self-advantage is not the only reason, or the best reason, for joining the two international monetary institutions. New Zealand should long since have been supporting organisations devoted to practical methods of raising living standards throughout the world and to expanding trade among nations. New Zealand should be especially ready to support these aims at a time when they are threatened by difficulties in the United States —difficulties largely caused by American generosity in helping the economies of weaker nations. As the Australian Federal Treasurer (Mr Holt) observed at the recent meeting of the 68 nations comprising the World Bank and the 1.M.F., these organisations have proved that countries with different aims and ideologies can co-operate for the good of all nations. Because the World Bank and the I.M.F. have helped customers and friends of New Zealand, this country has indirectly shared the benefits of the co-operative spirit of the members—which include every other nation of the Commonwealth. It is a shabby spirit that accepts benefits while! avoiding co-operation and j responsibility.