Debt Hampering Economic Growth

Press, Volume CII, Issue 30289, 15 November 1963, Page 15

Debt Hampering Economic Growth

(NZ .P. A.-Reuter—Copyright) BANGKOK, November 14. The economic development of several Asian Colombo Plan countries has been hampered by their “growing burden of foreign debt,” according to an official communique released today at the end of the Colombo Plan ministerial conference.

"Some developing countries have reached a step in which the growing burden of foreign debt puts severe limitations on their capacity to borrow further and thus to press ahead with economic development. "Many of these countries are obliged to devote a substantial proportion of current foreign exchange earnings to the servicing of foreign debt,” it said. Agriculture Sluggish The communique also emphasised that agriculture appeared to be the "most sluggish and resistant to rapid growth’’ in countries of the Colombo Plan region. “Growth in the agricultural sector in this predominently agricultural region is essential as a basis for the complement to progressive industrialisation and diversification." Although there had been an average annual increase in production of about 3 per cent over the last decade for the region as a whole, rising population had absorbed twothirds of this increase.

The communique gave a bright picture of the industrial development of the Colombo Plan territories. "The industrial sector continues to grow at a rate of about 8 per cent per annum,” it said.

Assistance Urged The communique urged developed countries of the world to contribute to the expansion of trade opportunities of developing countries by reducing various artificial restraints such as high tariffs, import quotas and high internal taxes. These restraints in effect “restrict economic growth opportunities in developing countries and are likely to result in wasteful allocation or underemployment of the resources available to a country,” it said. The communique said that the rising level of development expenditures imposed some strains on the stability of prices in a number of countries in the area.

Clemency In Greece

(N.Z. Press Assn.— Copyright) ATHENS, Nov. 14. The new Greek Government is considering the release of political prisoners who have spent 10 years in gaol and whose crimes are not regarded as “atrocious.” Among the 1000 prisoners still detained on charges arising from the Communist revolt from 1946 to 1949 is the Greek Seamen’s Union leader, Tony Ambatielos. His British wife, Mrs Betty Ambatielos, has been active in demonstrations to secure his release.