U.S. aid programme defended

Press, 14 August 1984, Page 4

U.S. aid programme defended

NZPA-Reuter Vienna The United States has said it wants better results from its development aid and will in future give money to nations adopting a free-enterprise economy. Addressing the United Nations Industrial Development Organisation (U.N.LD.O.), conference in Vienna, the American chief delegate, Richard Williamson also said the United States had provided about 13 times more development aid in 1981 than all Communist states combined.

His speech was a clear response to the Soviet delegate who accused the West of driving developing countries into economic crisis and demanded that it increase aid to compensate. Mr Williamson made no direct reference to high United States interest rates and protectionism by industrial nations on which Third World countries have blamed their economic problems. He said that Washington was increasingly concerned

about the way its aid was spent and would insist on better accountability.

“Massive infusions of foreign aid alone have proven not only ineffective m stimulating economic development in the Third World, in many cases they have actually been counterproductive,“ he said. “It is up to each Government to take into account the structure of its own economy as well as its national plans and priorities,“ said Mr Williamson.

“While each sovereign country has a right to develop in its own way, it does not nave the right to expect that there will be a growing level of funds to finance whatever policies it chooses," he said.

Attacking the inefficiency of Communist central planning, Mr Williamson advocated instead free enter[irise as practised by Thaiand, Singapore, and South Korea.

He listed what he called “sound premises" for future

United States aid based es- r sentially on encouraging ( free enterprise. J

“We need to build on the 1 solid bedrock of freedom J that allows individuals to ♦ reap the rewards of their * efforts. United States econo- » mic assistance must be j carefully targeted and make j maximum use of the energy > and efforts of the private J sector," he said. i Washington’s monetarist | policies had helped world | economic growth, enabling | the United States to “lead I the world out of global ! recession," Mr Williamson | said. ’

In addition, the United | States provided about one ( third of the $87.9 billion in i all economic aid to develop- I ing states in 1981 compared I with just over $2 Dillion j from Communist countries. ?

“The United States has been, and remains, the most generous nation on this earth in giving economic and humanitarian aid, both bilateral and multi-lateral,“ said Mr Williamson.