World Economic Report 1953-54
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E/2729 ST/ECA/30 WORLD ECONOMIC REPORT 1953-54 UNITED NATIONS WORLD ECONOMIC REPORT 1953-54 UNITED NATIONS Department of Economic and Social Affairs New York, 1955 E/2729, ST/ECA/30 15 April 1955 UNITED NATIONS PUBLICATION Sales No.: 1955. II. C.l Price: $U.S. 1.75; 12/6 stg.; Sw.fr.7.00 (or equivalent in other currencies) FOREWORD Each year the Secretary-General of the United Nations prepares a comprehensive review of world economic conditions. The present report is the seventh in this series. Like the earlier publications, it is intended to meet the requirements of the Economic and Social Council and other organs of the United Nations for an appraisal of the world economic situation as a prerequisite for recommendations in the economic field, as well as to serve the needs of the general public. The reports·are issued in response to General Assembly resolution US (II), which requested an annual factual survey and analysis of world economic conditions and- trends. The present report, continuing the practice in earlier ones, analyses major recent changes in domestic economic conditions and in international trade and payments, with special emphasis on developments in 1953 and 1954. Part I is concerned with changes in the domestic economic situation in three broad groups of countries: economically developed private enterprise economies (chapter 1) ; centrally planned economies (chapter 2); and economically under-developed private enterprise econ omies (chapter 3). Part II analyses changes in international trade and payments i the most important aspects are reviewed in chapter 4, which is followed by chapters relating to the external transactions of countries which, for the most part, are exporters of manufactured products (chapter 5) or of primary commodities (chap ter 6); and of countries with centrally planned economies (chapter 7). There is inevitably some overlapping of treatment in parts I and II, since changes in the domestic economy of a country and in its external transactions are in many respects interdependent. The classification of countries in part I is not in all respects the same as that in part II. The grouping of countries and parts of countries for the various chapters is dictated solely by analytical requirements. As in previous years, there are published as supplements to this report reviews of economic conditions in areas outside the scope of the work of the regional economic commissions of the United Nations: Economic Developments in the Middle East, 1945 to 1954 (sales number 1955.1I.C.2), Review of Economic Activity in Africa, 1950 to 1954 (1955.1I.C.3) and Scope and Structure of Money Economies in Tropical Africa (1955.II.C.4). A special feature of the present report is an analysis of certain longer-range problems of international trade, presented in response to Economic and Social Council resolution 531 C (XVIII) of 4 August 1954. That resolution, referring to advantages which might accrue from the expansion of international trade and indicating that it ~ould be useful if the Council could be furnished with a broad examination of the various factors tending to limit such expansion, requested the Secretary-General to include in his next World Economic Report an analysis of such factors, with a study of problems involved in promoting the development of trade within and between various geographic and currency areas. This far-reaching subject is discussed in general terms in the "Introduction" to the present report. In addition, there is pub lished as a further supplement to the report a study entitled The Quest for Freer Trade (1955.II.C.5), which e¥amines in more detail the obstacles to trade that have resulted from national commercial policies and from balance of payments difficulties, and also reviews national measures and international action taken by inter-governmental agencies with a view to removing or reducing such obstacles. Hi The basic data used in the report are, in general, as officially reported by govern ments. The significance of the figures may vary from country to country, depending on the statistical concepts and methods followed and on the structure and develop· ment of the national economy. For this reason, the compilation of international statistical tables requires that attention be given to any important elements of non· comparability or qualifications attaching to the data; these are usually shown in the tables of the report or in the detailed statistical publications of the United Nations from which the data are derived. The report was prepared in the Department of Economic and Social Affairs, largely by the Bureau of Economic Affairs. Substantial assistance was received from the Statistical Office of the United Nations, which collected most of the basic statistical data and prepared many of the tables. Some of the statistical material was obtained from the specialized agencies, notably the International Monetary Fund, the Inter· national Bank for Reconstruction and Development, and the Food and Agriculture Organization of the United Nations. New York, April 1955 EXPLANATORY NOTE The following symbols have been used in the tables throughout the report: Three dots (...) indicate that data are not available or are not separately reported A dash (-) indicates that the amount is nil or negligible A blank in a table indicates that the item is not applicable A minus sign (-) indicates a deficit or decrease A full stop (.) is used to indicate decimals A comma (,) is used to distinguish thousands and millions A slash (/) indicates a crop year or fiscal year, e.g., 1953/54 Use of a hyphen (.) between dates representing years, e.g., 1950-54, normally signifies an annual average for the calendar years involved, including the beginning and end years. "To" between the years indicates the full period, e.g., 1950 to 1954 means 1950 to 1954, inclusive. References to "tons" indicate metric tons, and to "dollars" United States dollars, unless otherwise stated. The term "billion" signifies a thousand million. Details and percentages in tables do not necessarily add to totals, because of rounding. iv TABLE OF CONTENTS Page INTRODUCTION: SOME PROBLEMS IN INTERNATIONAL TRADE POLICY . I Part I Major National Economic Changes 1. ECONOMICALLY DEVELOPED PRIVATE ENTERPRISE ECONOMIES General trends, 1950 to 1954 ,................. 21 Major economic changes in North America in 1954 ,.. .. 24 Major economic changes in western Europe in 1954.. ... .. .. ............... 29 Major economic changes in Australia, New Zealand and Japan in 1953 and 1954. 42 2. CENTRALLY PLANNED ECONOMIES............. ............•........ 46 Eastern European countries and mainland China. ........................... 47 yugoslavia.... ........................................................ 58 3. ECONOMICALLY UNDER-DEVELOPED COUNTRIES...... .......................... 60 General trends, 1953 and 1954. .......................................... 60 Major economic changes in selected countries producing raw materials and food, 1953 and 1954. ....................................................... 62 Major economic changes in selected Latin American countries, 1953 and 1954. .. 71 Inflation in Chile, 1940 to 1953. ......................................... 78 Part II International Trade and Payments 4. MAJOR DEVELOPMENTS IN WORLD TRADE. .................................. 91 The rise in world trade. ................................................ 92 Relative stability in terms of trade. ....................................... 95 The shifting commodity composition of trade. ............................. 96 Changes in trade balances. .............................................. 102 5. INTERNATIONAL TRADE AND PAYMENTS OF THE UNITED STATES, WESTERN EUROPE AND JAPAN The dollar balance in 1954. ............................................. 108 Balance of payments of western Europe and Japan. ......................... 119 6. INTERNATIONAL TRADE AND PAYMENTS OF PRIMARY PRODUCING COUNTRIES Exports. ............................................................. 131 Imports. ............................................................. 138 Balance of payments. .................................................. 142 7. INTERNATIONAL TRADE OF EASTERN EUROPE AND MAINLAND CHINA Trade with the rest of the world. ........................................ 147 Trade within the group and total trade. ................................... 150 INDEX ,.. .. .. .... .. .. .. .... .. .. .. .• .. .. .. .. .. 153 v List of Tables Page 1. ECONOMICALLY DEVELOPED PRIVATE ENTERPRISE ECONOMIES 1. Real gross national product and components in .North American and western European countries as a group, 1950 to 1954. ............................. 21 2. Real gross national product and industrial production, employment and unemploy ment, retail prices and wage rates in North American and western European countries, 1950 to 1954. ............................................... 23 3. Real gross national product and components in North American countries, 1950 to 1954. ......... .. .. .. .. ...... .. .... .. ...... .. ..................... 24 4. United States: Gross national product and components, 1953 and 1954. ....... 25 5. Real gross national product, industrial and agricultural production, employment and unemployment in North American countries, 1950 to 1954. ............. 28 6. United States: Indices of production of final goods and final services, 1950 to 1954 28 7. Indices of retail prices, real wage rates, export prices and import prices in North American countries,