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LEL, C)PY Re_por t 11L Tl rye: ( PU.F') Title: SURINAHI>S\< -- REICC)'MlENDATpION13$ FCR Au tlhor: 'rtl.iDBANK EXt .: (,1 ioDn:Tep t .: OLD' IB,IAO 1.95n4 Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized SURINAM Recommendations for a Ten Year Development Program t>Barbodos t4ETHERLANOS St. Vincent0 AruboA CuOcOO S %>CEtBor,oire GUIAN0A \ q ) ~~~~~~~~TRINIDADDr L A IV r I C L . - i _ 2 O C E N _______________________________________________60E 008' V E N E Z U E L A r \ AREA COVERED BY _. .o > /~~~~~~~~~~~~~~PROJEGTMAP \.rS - ~~~~~~~~~ N f 6 < _ ~~~~~~~/ (CHAPTER MI) i > 9 ~~~~~~~~~~~~BRI T I S H2 .~~~~~~~~~(U rOR f ,-qX . S ~~~~~~~~GU I A N A GUIA t 68°0U 56°4 SURINAM Recommendations for a Ten Year Development Program REPORT OF A MISSION organized by the INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT at the request of THE GOVERNMENTS OF THE NETHE:ERLANDS AND OF SURINAM published for INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT by THIE JOHNS HOPKINS PRESS 1952 THE JoHNs HorxIxs PRESS * BALTIMORE 18 Geoffrey Cumberlege, London Oxford University Press Copyright 1952, The Johns Hopkins Press Printed by the Monumental Printing Company Baltimore, U. S. A. THE MISSION RICHARD H. DEMUTH Chief of Mission W. V. BLEWETT Adviser on Agriculture CARL FLESHER Adviser on Industry, Mining and Power J. KENNETH PEARCE Adviser on Forestry JACQUES ToB.Fs Economist ARTHUR WUBNIG Transportation Economist JEANETTE SIEGBL Secretary INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT WASHINGTON 25, D. C. OFFICE OF THE PRESIDENT May 6, 1952 Hon. L. A. H. Peters Minister for Union Affairs and Overseas Parts of the Realm The Hague, Netherlands Hon. J. Klaasesz, Governor of Surinam Paramaribo, Surinam Gentlemen: I take pleasure in transmitting to you, as representa- tives of the Netherlands and Surinam Governments, the Report of the Mission to Surinam, which was organized by the International Bank for Reconstruction and Devel- opment at the request of your two Governments. It is the Bank's hope that the impartial analysis con- tained in the Report and the many recommendations ad- vanced by the Mission will prove of value in the task now in process of formulating a Ten Year Development Pro- gram for Surinam. You will understand, of course, that, since the Executive Directors and management of the Bank have not had the opportunity to review the Mis- sion's recommendations in detail, they are transmitted to you as the views of the Mission rather than as positive recommendations of the Bank. We believe, however, that the Mission's Report lays the foundation of a sound pro- gram for the fuLrther development of Suriinam and, there- VrT fore, that it is deserving of the most careful consideration by the Netherlands and Surinam Governments. The Bank will follow with interest the action taken in connection with the Report. At any appropriate time the Bank will be prepared to discuss with the Nether- lands and Surinam G0overnments the program that emerges froim study of the Report and to consider how the Bank can best help in the execution of that program. It is my sincere hope that the Report may be of posi- tive and lasting benefit to Surinam. Sincerely yours, INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT WASHINGTON 25, D. C. May 6, 1952 Mr. Eugene R. Black, President International Bank for Reconstruction and Development Washington, D. C. Dear Mr. Black: I take pleasure in submitting herewith the Report of the Mission to Surinam, organized by the International Bank at the request of the Governments of the Nether- lands and Surinam. As Chief of the Mission, I am glad to assume full re- sponsibility for the findings and recommendations con- tained in the Report. In fact, however, the Report is a joint product of the entire Mission and my colleagues have asked me to state that they all concur in its contents. I would like to take this opportunity to express, on behalf of the Mission, our gratitude for the wholehearted cooperation which we received from the Governments of the Netherlands and of Surinam in all phases of our study. We could not have wished for a more cordial atmosphere in which to work. It is our sincere hope that our Report may prove of value in furl;hering the economic development of Suri- nam and in improving the standard of living of its people. Sincerely yours, Chief of Mission1 Ix PREFACE THIS IS THE REPORT of a Mission to Surinam, organized by the International Bank for Reconstruction and De- velopment at the request of the Governments of the -Netherlands and of Surinam. The assignment of the AMission, as agreed to by the two Governments and the Bank, was to undertake an economic survey of Surinam and, on the basis of that survey, to make suggestions concerning the development plans being formulated by the Surinam Planning Bureau. Two members of the Mission (the agricultural and forestry experts) were nominated by the Food and Agri- culture Organization of the United Nations, which also undertook to pay a portion of their salaries and ex- penses; the other four members of the Mission are mem- bers of the Bank's regular staff. The Mission arrived in Surinam on October 28, 1951, and the last members left that country on November 28, 1951. The Mission's Report consists of two parts: the main report, which contains the major findings and recommen- dations of the Mission; and a series of Technical Ap- pendices. The Technical Appendices cover the following subjects: (1) Agriculture (including cattle, fisheries and dairy products); (2) Forestry; (3) Industry, Mining and Power (excluding the Brokopondo Project); (4) The Brokopondo Project; (5) Transportation; and (6) Mar- keting. Xl TABLE OF CONTENTS Chapter Page INTRODUCTION .... XIX Purpose and Scope of This Report . xix The Preliminary Report of the Planning Bureau . ... Xixx. The Brokopondo Project . .. xxi I BAsic FEATURES OF THE SURINAM ECONOMY . Geographical Features .1 The People .... 3 Productive Resources ... 5 Tndustrial and Public Utility Facilities . 1'1 Political Relationship with the Nether- lands .... 12 II ECONOmiC HISTORY AND PRESENT EcoNoMrIc SITUATION .... ....... 14 Economic History .... 14 Current Economic Situation ... 16 Recent Developments ... 16 Budgetary Situation ... 18 Balance of Payments ... ..... 19 Money Supply .... 21 National Accounts ... 22 The Labor Problem ......... 24 Program Goals .... 26 III RECOMMENDATIONS FOR A PUBLIC INVESTMENT PROGRAMI . ... ... .. .. .. 31 Preliminary Observations ... 31 Size of the Program . ... 31 XIII Chapter Page Relationship of Program to Existing Public Developmental Expenditures. 33 Undisbursed Resources of Prosperity Fund . ......... 33 Pride Assumptions . ...... 34 Assumptions as to the Private Sector . 34 Need for Flexibility . 35 Tabular Presentation of Recommended Program .... ...... 36 Explanation of the Recommended Pro- gram .... ....... .... 42 Sector Allocations . ...... 42 The Agricultural Sector ...... 44 The Forestry Sector . ..... 55 The Transport Sector . ..... 58 The Social Sector . ...... 65 Rate of Disbursement and Foreign Ex- change Requirements . ..... 69 Investment in the Private Sector . .. 71 IV ADMINISTRATION AND FINANCING OF THE PRO- GRAM ...... ........ 73 Proposal for a Development Board . 73 Financial Arrangements . 74 V ANTICIPATED RESULTS OF THE PROGRAM . 76 Production and National Income . .. 76 Investment .... ...... 79 Budgetary Situation . ..... 80 Balance of Payments, ....... 83 Labor Supply .... .. 85 VI SUPPLEMENTARY MEASURES NECESSARY FOR SUCCESS OF THE PROGRAM .... 90 Fiscal Policy ..... 91 XIV Chapter Page Mlonetary Policy and Banking Facilities . 92 Exchange Policy .... 93 Treatment of Foreign Private Capital . 94 Vocational Training .... 96 Agricultural Marketing .... 98 'Transportation .... 99 Statistics ..... 100 Technical Appendix No. 1 A(RIC ULTURE . 103 Physical Setting ....... 104 Types of Farm Labor anid Their Re- gional Distribution .... 112 The Rise and Fall of the Planitations . 114 Chief Plantationi Crops .... 115 The Future of the Plantationis ... 118 Small Farms ..... 120 Crops ..... 124 Livestock ..... 138 The Projects ...... 1.40 Saramacca (:River) Ploldei ..... 140 Kwatta Reorganizationi .... 140 Groningen Reorganizationi .... 141 Tout Lui Paut Reorganizationi . 142 Coronie Expansioni .... 142 Saramacca Canal .... 144 Para ..... 144 Wageningen ... .... 145 The Lelydorp Plan .... 148 Slootwijk ..... 154 The Fisheries Project .... 156 Cattle Breeding . 157 Agricultural Research and Extension Work ..... 159 xv Technical Appendix Page 2 FORESTRY ..... 163 Forest Resources and the Timber Indus- try . 163 Forest Resources .... 163 Forest Administration .... 164 The Timber Industry .... 165 Potential Markets . 169 Recommendations .... 171 Forest Inventory .... 172 Forest Access Projects .... 173 lIogging Engineering ... ..... 178 Technical Research .... 179 Market Research and Trade Promotion 182 Reforestation .... 184 Industrial Modernization and Expan- sioll .... 184 The Forest Service .... ..... 187 Anticipated Results of the Program . 189 3 MINING, INi)UsTRY AND POWER ... 193 Minin1g ... 193 Bureau of Mines .... 195 Industry ..... 196 Labor ..... 200 Protection of Industiy . 201 Power and Gas .... 201 4 THE B3ROKOPONDO PROJECT .... 204 ConClusions .... 213 Recommenldation1s .... 213 5 TRANSPORTATION. ...... 214 The Present Transportation Sy7stem . 214 Motivation of Transport Investment Pro- gram ..... 220 XVI Technical Appendix Page Appraisal of Transport Investmenit Needs ..... 224