C. The Premises of the International Development Pro- II. THE REQUIREMENTS OF DEVELOPMENT A. Recognizing the Range and Scope of Development B. Identifying the Priorities in Different Countries. G. Stimulating a Coordinated Free-World Effort. H. Research To Make Aid More Effective. Summary THE DECADE OF DEVELOPMENT The International Development program outlined in this volume is based on these premises: By providing long-term support for development plans created by the less developed nations themselves, the United States can, during the decade of the sixties, help decisively a large number of these nations along the road to economic growth. Continued progress in any less developed country will not be assured until that country accepts and fulfills its own responsibilities to help itself. Any development assistance program of the sixties must take into account all of the factors that contribute to growth-capital, technical assistance, the development of sound public administration and modern institutions, skilled labor forces, managerial skills, and the creation of the necessary motives and interests. • Each nation must be permitted to develop in its own image. ● Systematic research can develop new skills in development assistance. ● Development assistance will come to be recognized during the sixties as a collective responsibility of all free industrialized nations. ● Foreign aid to the less developed countries should not be endless. The peak requirements should occur during the decade of the sixties, and by the end of this period a significant number of recipient countries should be capable of continuing their growth without large amounts of extraordinary assistance. THE REQUIREMENTS OF DEVELOPMENT The process of fostering the development process requires many things: First, a recognition of the range and scope of development needsincluding needs for the surveying of a country's resources, the im A NEW PROGRAM WITH NEW CONCEPTS A Unified Administration - Tying together existing aid units - Centralizing programming - Clarifying responsibility - Attracting professional personnel of high quality With a Flexible Set of Tools - LONG-TERM LOANS repayable in dollars - SUPPORTING ASSISTANCE for strategic purposes - DEVELOPMENT GRANTS chiefly for education To Stimulate and Respond to Sound Country Programs - By nations willing to budget their resources for Using Systematic Research To improve the effectiveness of our assistance efforts Drawing on the Financial and Management Assets provement of its manpower skills, the creation of new organizations and institutions, and the acquisition and acceptance of new ideas. Second, a recognition that countries pass through various stages of development and that priorities for any country must take into account the unique stage of development of that particular country. Third, the preparation of an overall integrated development plan for each country in order to avoid a piecemeal approach. Fourth, the encouragement of self-help by giving sustained aid to those countries making serious self-help efforts, by withholding or limiting aid to those not yet willing to make such efforts, and by the encouragement of those groups within governments who favor selfhelp. By self-help is meant a proper devotion of public resources and monies to the development effort, the tapping of the energies of the entire population, and establishment of proper standards of public honesty. Fifth, the encouragement of a long-term approach-in order to take into account (a) the long "lead time" required on many development projects, (b) the necessity of preparing long-range development plans, and (c) the need to allow sufficient time for self-help measures to work themselves out. Sixth, the provision of sufficient aid to make possible and encourage sound development and self-help, geared to the capacity of a given country to absorb external assistance as well as to the extent of aid available from other industrialized countries. The level of aid proposed in this bill is the minimum needed to meet these requirements. In fact, the request for development lending funds allows very little margin over the lending projects already in sight, and the development grant funds requested allow only $125 million for new projects throughout the world, over and above projects already underway. Seventh, the stimulation and coordination of the assistance efforts of all the free industrialized nations of the world, both to avoid overlapping and duplication and to try to make the conditions for granting aid as uniform as possible among all donor countries. Much of this will be achieved through the new Organization for Economic Cooperation and Development (OECD) and its Development Assistance Committee. Eighth, the initiation of a program of research to discover new techniques of assistance and to make our aid efforts more effective. Development assistance is a new field. Corporations find it profitable to invest from 5 to 10 percent of their total expenditures on research; research funds requested in this program are only .7 percent of the total. Research will be carried out both in the economic field (e.g., in improving agricultural production in tropical areas) and in the field of |