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French Aid by Teresa Hayter

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French Aid by Teresa Hayter French Aid by Teresa Hayter V 20s Od Overseas Development Institute French Aid Superficially there are a number of similarities between British and French Ajd - both programmes, for example, con­ centrate largely upon the ex-colonies of the donor countries although the French programme is approximately twice the size of that of Britain. However, the differences between the two programmes are very considerable, and there is a good deal that can be learnt in Britain from an examination of the French approach to aid. In particular the differences arise from the disparities between the two countries' past colonial policies, especially since the Second World War, and from the closely integrated nature of the Franc zone system. This study describes French aid in the context both of France's past colonial policy and of French interest in the Third World. The significance of the size of the French programme is also fully discussed. French aid has not been worked out from first principles, but rather has arisen according to a variety of circumstances. The Jeanneney Report (ODI Publication 1964) attempted to provide a rationale for France's post colonial aid. Some re­ deployment of French aid has occurred, but so far not to any great extent. French aid does not constitute a simple and integrated whole. The Author explains and comments upon the great diversity of methods and policies that exists, and a chapter is devoted to the attempts to integrate and rationalise the administration of France's aid. In particular, the Author pays attention to France's aid programmes to its ex-colonies in tropical Africa. These are central to French aid; they are most deeply thought out; and contain the most innovations. Moreover, they are of particular interest to Britain which is attempting to do very different things in similar countries. The Author also examines the closeness of Franco-African relations and looks at its advantages and disadvantages. The study is one of GDI's series on donor countries financed by the Nuffield Foundation. The Author, Teresa Hayter, is a member of the Institute's research staff. 00020967 Overseas Development Institute French Aid by Teresa Hayter Published by The Overseas Development Institute Lid 160 Piccadilly London W1 England © Copyright Overseas Development Institute Ltd. 1966 The Overseas Development Institute Ltd. is responsible for determining that this work should be presented to the public, but individual members of the Council are not responsible for statements of fact and expressions of opinion contained herein. Contents Introduction 9 1 Historical background 17 1 Colonial doctrines 18 2 Political and constitutional development 20 (a) French Revolution to Second World War 20 (b) Second World War to independence 24 3 Economic development 32 (a) Before the Second World War . 32 (b) Second World War to independence 35 (c) Effects of post-war French aid on the tropical African territories and Madagascar 37 2 Economic background 43 1 Financial flows between France and the overseas countries of the Franc Zone 43 (a) Official aid 43 (b) Other forms of government expenditure in the Overseas Franc Zone 53 (c) Non-commercial private transactions 54 (d) Trade 59 2 Arrangements facilitating these flows 61 (a) The monetary mechanisms of the Franc Zone 61 (b) Trade arrangements 71 3 Advantages and disadvantages for France and the overseas countries of the Franc Zone system 79 3 Administration of aid 85 4 Aid to Morocco, Tunisia, Laos, Cambodia, Vietnam and traditionally foreign countries. 101 1 Technical assistance from the Ministry of Foreign Affairs 101 (a) Cultural relations 104 Teachers 105 University Scholarships 106 (b) Technical co-operation 107 Experts and teachers . 110 Recruitment and training of experts 111 Scholarships 113 Programmes elargis 114 Aid representation 115 Aid agreements 115 2 Technical assistance from the Ministry of the Economy and Finance 117 (a) Training in France (ASTEF) 119 (b) Experts (ASMIC) 120 (c) Training institutions abroad 123 (d) Aid to consultancy firms 125 3 Official loans from the Treasury . 127 5 Aid to Algeria 132 1 Nature of aid and reasons for its size 132 2 The 1965 oil and natural agreements 133 3 Administration of aid 135 4 Composition and size of aid 135 (a) Financial aid 135 (b) Technical assistance 136 (c) Other official aid 137 (d) Amounts committed and disbursed for these categories 138 (e) Treasury advances 139 6 Aid to the African and Malagas/ States 141 1 The basis for aid: the Co-operation Agreements 141 2 The development of administrative structures 144 3 The internal organisation of the Secretariat of State for Foreign Affairs in charge of Co-operation 147 4 Mechanisms and procedures 150 (a) Capital aid from the FAC, research and surveys, temporary experts 152 (b) Operational personnel and scholarships 156 (c) Budgetary support 161 (d) Loans from the Caisse centrale on its own authority 164 5 Tables 165 6 Policies 176 (a) General 176 (b) Capital aid 182 (c) Education and training 191 (d) Administration 201 (e) Preparation of French technical assistance personnel 202 (f) Conclusion 203 7 Aid to the Overseas Departments and Territories 205 1 Overseas Departments 206 2 Overseas Territories 208 8 Multilateral Aid 210 (a) Contributions to the IBRD, IDA and IFC 211 (b) Contributions to the European Development Fund 212 (c) Contributions to United Nations technical assistance agencies 212 9 Conclusions 214 Glossary 217 Index 220 List of Tables Table Page 1 Distribution by sector of planned expenditure by FIDES 38 2 Proportion of expenditure on personnel in total recurrent budgetary expenditures 40 3 French subsidies to the local recurrent budgets of the Overseas Territories and Algeria 41 4 Total official French Aid (net disbursements) 45 5 Official aid of main donors (net disbursements) 45 6 Budgetary appropriation for official aid to independent developing countries 46 7 Geographical distribution of French bilateral official aid 47 8 French official expenditures in the overseas countries of the Franc Zone 54 9 Net 'surprix' in favour of the overseas countries in their trade with France 54 10 Balance of payments between France and the overseas countries of the Franc Zone 57 11 Trade surplus for France with the overseas countries of the Franc Zone 60 12 Share of France in trade of overseas countries 60 13 Franc Zone issuing authorities 63 14 'Surprix' paid by the overseas countries, 1954 73 15 'Surprix' paid by France, 1954 73 16 Financial advantage (or 'surprix') for African and Malagasy States in 1961 (gross) 75 17 Net 'surprix' in favour of the overseas countries 76 18 Budgetary appropriations for aid by ministerial department, 1966 86 19 Militaires du Contingent: numbers, end 1962-April 1965 99 20 Militaires du Contingent: distribution of actual assignments by area and sector, end 1962-April 1965 99 21 Distribution by activity of expenditures on cultural relation by the Ministry of Foreign Affairs 105 22 Numbers of French teachers in foreign countries under cultural relations programmes 106 23 Number of French teachers in English-speaking African countries 106 24 Geographical distribution of scholarships awarded for study in French universities under cultural relations programmes 107 Table Page 25 Budgetary appropriations for the Services de cooperation technique in the Ministry of Foreign Affairs and the Ministry of Finance and Economic Affairs 108 26 Geographical distribution of French experts and teachers in developing countries under the programmes of the Services de cooperation technique in the Ministry of Foreign Affairs 110 27 Geographic and functional distribution of French experts and teachers in developing countries (Services de coopera­ tion technique in the Ministry of Foreign Affairs) in 1964 111 28 Geographical distribution of scholarships for conventional studies and short training courses awarded by the Service de cooperation technique in the Ministry of Foreign Affairs 113 29 Training courses organised by the ASTEF, by country 121 30 Training courses organised by the ASTEF, by sector 122 31 Geographical distribution of experts sent by the Service in the Ministry of the Economy and Finance (ASMIG) 124 32 Government loans at 30 September 1964 128 33 Official bilateral aid: net loan disbursements to Morocco, Tunisia and non-Franc Zone countries 128 34 Advances to consolidate the conventional debts of certain countries with France 131 35 Amounts voted in Parliament on the budget of the Secretariat of State for Algeria 139 36 Percentage increase in tax receipts, 1959-1964 162 37 French Aid to the African and Malagasy States: breakdown by administrative channel, 1965 166 38 French aid to the African and Malagasy States 166 39 Disbursements by the FAC: distribution between titles 167 40 Percentage distribution of FAC aid for development (Titles III, V, and VI), 1954-1964 167 41 Disbursements by the FAG: breakdown of Title III 167 42 Commitments approved by the governing body of the FAC during 1964 (at 28.9.64): distribution by title of the FAC and by sector 168 43 Commitment approved by the governing body of the FAC during the first nine months of 1964: capital expenditure (Title VI), distribution by country 169 44 Total commitments approved by the governing body of the FAC since its creation (Titles III, V, and VI) 169 45 Budgetary subsidies from the FAC (Title IV) 170 46 Expenditures by Ministry of Co-operation (Secretariat of State for Foreign Affairs in charge of co-operation) on technical assistance personnel 171 Table Page 47 Numbers of technical
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