Call For Easing Of Bank Aid Terms

Press, Volume CI, Issue 29932, 20 September 1962, Page 6

Call For Easing Of Bank Aid Terms

(NEJ»A.-R«ut«r-Cai»V»taM) WASHINGTON, September 18. World financial leaders will turn their attention to the problem of providing more development aid for emerging nations on easy terms when they meet for the World Bank’s annual meeting.

The president of the bank, Mr Eugene Black, sounded the keynote in the opening speech today to the Finance Ministers and other experts from the more than 80 nations attending.

In his address. Mr Black called on industrialized nations to step up their foreign aid efforts and channel more of their assistance on a multilateral basis. “It is clear that aid which is at the mercy of the variable winds of diplomacy offers a poor basis for the rational programming of economic development," Mr Black said. He urged the conference to give urgent attention to the question of enlarging the resources of the International Development Associa t i o n, which makes loans for longer periods and on more flexible terms than the World Bank. He said that by mid-1963 the IDA. probably would have committed all of its remaining 785.000.000 dollars of usable funds. Mr Black also expressed concern that new regional economic groupings might follow protectionist policies, clouding the economic prospects of countries outside. Although tariffs or quotas did not at present unduly restrict the exports of primary products from the developing countries, he said, there were manufactured products —notably Cotton textiles—where discrimination was an important factor. “I feel considerably more anxiety about the effects of

trade restrictions in the future, when we ought to be able to hope for rising exports from the developing countries. and especially <rf the products of their growing manufacturing industries," Mr Black said. Mr Black noted that a aerious situation facing the underdeveloped countries was that they were having to pay more for their purchase* from the developed countries, while their own sales were bringing lower prices. He said the industrialised countries should recognise that their own balances of payments had benefited from the swing of the terms of trade in their favour. “If the momentum of devel. opment is to be maintained, it can only be by grants or by loans largely at very long term and at very low interest." Mr Black said. Mr Black said he would r»tire as president before the 1963 annual meeting. A successor is expected to be named by the next new year.

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