The Press SATURDAY, FEBRUARY 10, 1962. World Bank Mission

Press, Volume CI, Issue 29744, 10 February 1962, Page 10

The Press SATURDAY, FEBRUARY 10, 1962. World Bank Mission

The arrival in New Zealand of a mission from the World Bank is opportune. This country may well be on the eve of events that will impose heavy strains on its economy Certainly there are reasons for concern about whether the economy is growing fast enough, on a sufficiently sound base, to sustain the present standards of living (including generous welfare State benefits) for a rapidly expanding population. If the mission does no more than cast an objective eye over this country’s activities and interests, the results should be worth while. The mission’s report might prove a valuable guide to the direction of future development, something more fundamental. indeed, than advice on the possible uses of World Bank loans to assist development. The visit of the mission is a result of last year’s decision by the Government to join the International Monetary Fund, membership of which gives this country access to the expert and financial resources of the World Bank. While the ■World Bank provides longterm loans for specific development projects. the International Monetary Fund makes short-term loans to assist member coun-

tries having balance-of-pay-ments difficulties. A third institution, the International Finance Corporation, makes loans to private organisations. Missions from the I.M.F. and the I.F.C. will visit New Zealand later. The present mission, which will be here some weeks, has been asked generally to examine the New Zealand economy, and to look especially into projects for electric power development and improvements in rolling stock for the railways. The mission’s experts in electric power development can hardly fail to be impressed by the lack of any serious effort to co-ordinate the use of the country’s several sources of energy, a weakness that has become woefully apparent since the discovery of the natural gas field at Kapuni. Guidance on this matter might be just as advantageous to New Zealand as a loan for electric power development; and the comprehensive planning of energy uses might in fact be an indispensable condition of a development loan. The inclusion of an agricultural economist in the mission is to be welcomed. His findings may be especially helpful in the coming negotiations concerning Britain’s application to join the Common Market.