Disparities in Progress Among Nations

Abstract

There is no rigid formula for development. The important thing is whether a particular economic and social system produces the greatest good for the greatest number of people within a framework of freedom. The United States and other industrialized countries have progressed remarkably in a relatively short period of time. Time is one cause of disparities—many less developed countries have only recently begun economic and social reforms. To correct existing disparities it was assumed that aid programs would bring rapid progress. These programs were not the whole answer. Attention, therefore, has turned to trade, and in particular to preferences, as a solution. It should be remarked that United States policy has been one of liberal, nondiscriminatory trade. While trade and aid are important to development, it might be asked whether the developing countries are taking adequate self-help measures, such as the promotion of a competitive commercial environment, adequate regional trading arrangements, efficiency and rationalization of their public enterprises, stability in monetary and financial policies, a climate of business confidence, improved fiscal laws and their administration, and land reform. These reforms are illustrative of the tasks that face the developing countries.