Should We Reassess Our Foreign Aid Program?

Abstract

One and a quarter billion people in the under developed countries are in the midst of the "revolution of ris ing expectations," perhaps the most important revolution ever known. The industrialized countries have recognized the ex istence of a need for improved living standards in these coun tries and have granted substantial bilateral assistance as well as assistance through the channels of the United Nations agen cies. But the many national and international programs have not markedly affected the living standards of these people. To speed economic growth in the less-developed countries, we must reassess our assistance programs. Only by increased efforts and concerted action among the industrialized countries, in con junction with the underdeveloped countries, can a notable im provement in per capita incomes of these people be achieved. The industrialized countries must realize that their own pros perity depends on a growing and expanding world economy, that it is, therefore, in their interest to help the less-developed countries achieve a more rapid economic growth. It must be recognized that investment in the underdeveloped countries is essentially trade, and, conversely, increased trade is develop ment aid. The United States, for its part, will have to aug ment its aid program. We can afford to do more, especially when we know that our increased efforts will be creating a more prosperous world.—Ed.