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An Example of Development Aid

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An Example of Development Aid A Service of Leibniz-Informationszentrum econstor Wirtschaft Leibniz Information Centre Make Your Publications Visible. zbw for Economics Reuter, H.-Jochen Article — Digitized Version An example of development aid Intereconomics Suggested Citation: Reuter, H.-Jochen (1967) : An example of development aid, Intereconomics, ISSN 0020-5346, Verlag Weltarchiv, Hamburg, Vol. 02, Iss. 6/7, pp. 171-173, http://dx.doi.org/10.1007/BF02929850 This Version is available at: http://hdl.handle.net/10419/137763 Standard-Nutzungsbedingungen: Terms of use: Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Documents in EconStor may be saved and copied for your Zwecken und zum Privatgebrauch gespeichert und kopiert werden. personal and scholarly purposes. Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle You are not to copy documents for public or commercial Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich purposes, to exhibit the documents publicly, to make them machen, vertreiben oder anderweitig nutzen. publicly available on the internet, or to distribute or otherwise use the documents in public. Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, If the documents have been made available under an Open gelten abweichend von diesen Nutzungsbedingungen die in der dort Content Licence (especially Creative Commons Licences), you genannten Lizenz gewährten Nutzungsrechte. may exercise further usage rights as specified in the indicated licence. www.econstor.eu mic and social problems of Latin America. This is also development. However, it must gradually come to be the slant of the resolutions dealing with restricting realised that any type of economic integration is, in military expenditure; these are aimed at concentrat- the final analysis, a political act. Somehow or other, ing all resources upon integration. national sovereignties have to be abandoned. This ad- mission will have to be made before the state of ten- Decade of Urgency sion from which ALALC is suffering can be relaxed and is the only way in which its mentality can be ad- It now remains to be seen whether concrete results justed to the requirements of the industrial age. De- can be achieved supra-nationally. The immediate tasks cisive success can come only from an awakening of are the linear, step-by-step reduction of internal tariffs, Latin America's own potentialities. a common external tariff and the evolvement of a programme for co-ordinated industrial development. Like all other industrial countries, the United States The ALALC developments will be decisive, for the has a very great interest that Latin America should whole project, in fusing the whole of Latin America develop into politically viable and socially stable into one common market. Central America is of little countries. The "Alliance for Progress" has already importance in the overall framework, but can offer an succeeded in making a considerable contribution to- abundance of experience in supra-national solutions. wards healthy reforms in Latin America. The Alliance The greatest obstacle is still the lack of enthusiasm now requires a more impressive success which might internally for supra-national viewpoints. The Foreign stem from combining the aims of the Alliance with Ministers are now obliged to set up, in their own those of the Punta del Este Declaration. The tempo of countries, the administrative arrangements necessary fusion in all Latin American countries must now be to achieve these integration targets. At the next con- raised. It is to be hoped that the "Decade of Urgency" ference every party to the Agreement has to submit which has been proclaimed will not remain merely a his liberalisation programme. slogan, but that considerable progress will be made The main question is still whether, and how far, the towards attaining the targets set within the deadline parties are asked too much at their current phases of of 1985. CIVIL AVIATION An Example of Development Aid By H.-Jochen Reuter, Frankfurt/M. evelopment aid is supported by humanitarian, start for a reasonable promotion of the developing D political and economic motifs. In the following, country with simultaneous effects on the economy of only the economic aspects of development aid will be the donor country offers the economic sector of civil considered. air transport. From economic points of view development aid means Significance of Air Traffic giving and receiving. The conception of development aid being mere giving is--if ever it was of signifi- For most of the developing countries civil air traffic cance--no longer valid. In the framework of develop- is of utmost importance in view of their economic ment aid donations have mostly proved a failure. development. In the interest of both, the donor as well as the At present, traffic in nearly all developing countries recipient country, today's development policy aims at the establishment of economic partnership. is developed unsatifactorily only. Sufficient, reliable and cost favourable transport connections are, however This means for the donor country to employ the among the most important prerequisites for economic means--capital or technical aid--in a way to allow development. The lack of trafficways keeps down the exchange of goods and services between the partners. exchange of goods and passenger transport between the regions of a country; it reduces the value of local In the development phase of the countries the sales raw materials; it limits the potential sales markets for prospects o~ the donor country are especially favour- local industries; it excludes the country from inter- able with capital goods and consulting services, national trade and impedes a superregional integration, provided the means are directed accordingly. These to mention only a few of the repercussions. There is aspects have been the subject of numerous theories no doubt of the necessity of creating the pre- to which some concrete considerations may be added requisites for a more intense exchange of goods and in the following. An especially actual and promising passengers. INTERECONOMICS, No. 6/7, 1967 171 Unfavourable topographic conditions (rivers, moun- Experience has shown that the fact from which tains, swamps, deserts) often hinder the development country the planners came from is of great influence of landborne traffic while they present no difficulties on the selection of the enterprises to be engaged in for air traffic. Moreover, the development of a ground the r e a I i s a t i o n of the project--in this specific network unavoidably stretches over a major period case in the establishment of civil air traffic. of time whereas an air traffic network can be set up in relatively short time. By giving technical aid in the planning phase the government is in a position to favour its building Where goods and passenger transport between differ- trade (construction of airports) as well as the instru- ent places of a country is important, but limited in ment and aircraft industry (airport facilities, flight its range---a situation relatively often met in develop- equipment, etc.). Capital aid, of course, makes this ing countries--the creation of an air line often re- service even more effective. presents an even more economical solution than the construction of a road or railway. Together with the establishment or development of civil air traffic there arises also the necessity of By promoting civil air traffic development aid can o r g a n i s i n g the flight system. Experts of the inter- contribute essentially to the economic development national airlines and consulting firms are able to of the respective countries. In some cases, however, solve all pertinent problems. They are not only given active engagement of the developing country in the the opportunity to employ their consulting capacity establishment of a national air network does not arise but also to coordinate their own commercial policy from the knowledge of the necessity outlined above with the interests of the developing countries. but from reasons of prestige. Here, the aid offered by industrialised countries can help prevent invest- So much of the possibilities of furnishing know-how ment failures by employing experts and directing the and using supplies of industrial countries in the means. establishment and organisation of civil air traffic. In addition to that there arise many a d v a n t a g e s for Civil air traffic in developing countries whose different branches following the establishment of an promotion as shortly outlined above can be of efficient commercial air traffic in developing countries: decisive importance for the economic progress of first of all, the large travel organisations which in these countries is, at the same time, a sector that view of the rapidly growing air tourism are much offers an especially feasible start for the establish- interested in reliable air traffic facilities in the tourist ment of partnership between donor and recipient countries. country in the sense outlined at the beginning. Especially interested in a promotion of airlines in Civil air traffic is divided into commercial air traffic developing countries are also the international air- and aerial work, a distinction which shall not be line companies. Technical aid can open up new landing further discusssed in this context. One essential factor grounds for these companies, thus allowing them to should, however, not be overlooked: The establish- extend their network. Most important are, however, ment of commercial air traffic entails considerable the possibilities of rationalisation and cost saving "land-borne" investments (buildings, runways, flight through cooperation in the fields of selling, operating control system, etc.). Contrary to that, aerial work and maintaining the flight equipment. By close co- is operated with relatively few ground facilities. This operation with national airline companies an inter- basic difference, which we do not pursue in more national airline company can also gain an essential detail, recommends separate treatment.
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