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Nuclear Energy Agency of Energy Trends The "Crises" of Development A New Orientation for OECD's Urgent Reassessment Nuclear Energy Agency of Energy Trends The Pros and Cons of Differing Systems of Company Taxation The Advent of Mass Higher Education I low Can Man and the Automobile Live in Harmony Combatting Pollution in the Pulp and Paper Industry Brisk Expansion of InternationalTourism N" 66-OCTOBER 1973 OECD OBSERVER N" 66 October 1 973 Published bi-monthly in English and French by CONTENTS THE ORGANISATION EOR ECONO¬ MIC CO-OPERATION AND DEVE¬ LOPMENT THE "CRISES" OF DEVELOPMENT by Edwin E. Martin, Chairman of OECD's Development Assistance Committee 3 EDITORIAL OFFICES OECD Information Service, Chateau de 7 OECD AND THE ENERGY PROBLEM la Muette, 2, rue André-Pascal, F 75775 PARIS. CEDEX 16. OECD RECOMMENDS REDUCTION OF MERCURY EMISSIONS Individual articles not copyrighted may be reprinted providing the credit line reads EMPLOYMENT POLICY IN FRANCE 10 "Reprinted from the OECD Observer" plus date of issue, and two voucher copies POLLUTION CONTROL IN THE PULP AND PAPER INDUSTRY 13 are sent to the Editor. Signed articles reprinted must bear author's name. TAXATION OF COMPANY PROFITS - AN ASSESSMENT OF POLICY The Organisation cannot be responsible OPTIONS 16 for returning unsolicited manuscripts. Signed articles express the opinions of the authors and do not necessarily represent CHANGING ROLE FOR OECD'S NUCLEAR ENERGY AGENCY 19 the opinion of OECD. THE ADVENT OF MASS HIGHER EDUCATION 27 Annual Subscription Rates : £ 1.15, S 3.50. F 15.00. FS 13.00, DM 10.50. Single copies : £0.27, S 0.80, E 3.50, INTERNATIONALTOURISM : BRISK EXPANSION 31 FS 3.00, DM 2.50. THE IMPACT OF THE AUTOMOBILE ON THE ENVIRONMENT 35 Editor Anker Randsholt Assistant Editors Peter Tewson and 39 AT OECD Jane Bussière Production and Layout NEW OECD PUBLICATIONS 42 Marc Delemme All correspondence should be addressed to the Editor. PHOTOS : Cover : UK.AEA ; pages 4 and S : !.. Jouan-OECD : page I 1 : Almasy : page 15 : Finnish Ministry for Foreign Affairs; pages 24-25 : UKAEA. OECD Halden Project. Institute of Radiation Tech¬ nology, Karlsruhe : page 30 : Japanese De¬ legation to OECD; page 31 : Almasy; pages 32-33 : Compagnie Générale Trans¬ atlantique ; page 34 : Il.O ; page 36 : Bel¬ gian Ministry for Communications ; page 37 ; Max Prugger ; panes 39-41 : L. Jouan- COVER : The Dragon Reactor Hall. The Dragon Project OECD. is cm important joint undertaking of OECD's Nuclear Energy Agency. THE w CRISES" OF DEVELOPMENT by Edwin M. Martin, Chairman of OECD's Development Assistance Committee Comment on the development partnership has been among donor governments in international development institu¬ putting increasing emphasis on "donor fatigue" and tions and, though less so, in the developing countries in the on disillusionment in the poorer countries and' a development strategy which was widely accepted in the 1960's determination on their part to get along without aid. The giving priority to GNP growth and. because it seems to pro¬ situation is often summed up as being a "crisis of development". mote this most effectively, to the modern industrial sector. Faced 1 do not think the facts support the existence of this "crisis". by accumulating evidence that this strategy is leaving too many An important task of DAC is to exchange information about people in deep poverty, without jobs or employed unproductively trends in public attitudes toward the developing countries. This and is accentuating already too great inequalities in incomes, an active search for altei natives has commenced. Both because information indicates that, seen over a period of years, the charge that support for development is waning in the industrial¬ it affects the most people and because of the urgent need to ised world is valid only tor the volume and terms of aid of the improve food availabilities, the most widely talked about change United States. The considerable decline in recent years in the is to give a higher priority to rural development, including agri¬ percentage of GNP disbursed as official development assistance cultural production. by Germany and Japan appears to have been due more to special The "crisis" arises in considerable part because the political conjunctural difficulties than to any decline in public support for power structures, especially in the developing countries, have aid though both must be watched closely. Nearly all donors responded with quite varied degrees of enthusiasm to the demand other than the United States as well as the multilateral aid struc¬ for income redistribution and the direct use of a larger share ture have in recent years undergone a series of changes designed of public resources to reduce poverty. Moreover it is difficult to improve the quantity and quality of resources transferred, to be sure how and how fast the resources of donors and reci¬ both public and private. Even in the United States, improvements pients should be reallocated to achieve better results. have been substantial in all respects except volume and terms. This might be called a "crisis", but if so, it is, to borrow a With respect to trade matters, it is clear that here too the record medical term "benign". To have recognised our mistakes and of the past five years has on balance been positive, though not to be engaged in a vigorous debate on how to correct them is by much. a necessary prerequisite to progress in any enterprise. Nor is the suggested "crisis" atmosphere evident in developing What, in my view, represents a real and critical "crisis" of countries. Many of their leaders make clear their preference development is the lack of full commitment to development co¬ for a more independent position, with development needs financ¬ operation. If we are to have any hope of building a world in ed by their exports of goods and services and by private financial which lack of resources does not prevent any person from having transfers over which they have full control. These are praise¬ a decent minimum of opportunities, we must all give develop¬ worthy ambitions. ment a higher priority. Donors must make more aid available But such aspirations have nothing to do with present positions. under more flexible criteria and take bold initiatives with respect All of their governments recognise that without aid they would to trade. have reduced prospects for achieving even moderate' rates of The reasons for the failure of government policies to be more improvement. In private bilateral discussions and in public UN forthcoming vary. In some cases it is only the priorities of the debates the demand not just to continue aid but to provide more political leadership that count; in others mass public opinion and more is the only voice to be heard. There is clearly no or organised pressure groups operate, at least indirectly, to set "crisis" in the developing countries concerning continued aid limits to what is done. Their actions are based on their beliefs flows. about the importance of development co-operation. It is there¬ On the other hand there has been a growing loss of confidence fore imperative to examine in detail the facts, the logic and the political judgments on which the donor citizens, in or out of public office, support or oppose the development partnership. Should Developed Cou ni ries Do More Tor Development ? v T3* The Economic Interest Many believe that it is right and reasonable for the attention and resources of the richer countries to be directed primarily at their own problems a new monetary and trading system, threats #N. to the environment, urban slums, inflation and unemployment. In their view such critical issues as these must be given priority even though it means limiting aid appropriations. I see three reasons affecting the economic well-being of donor countries, all of especial weight now. for altering the present low priority given to increasing help for developing countries. The first is that without the concurrence of the developing countries Edwin in the formulation, adoption and execution of a new and satis¬ M . Martin. factory international monetary and trading system, the benefits Chairman of OECD\s we look forward to for ourselves will not be secured. Development Second, and even more vital, is the increasing degree to which Assistance Committee the prosperity that we the donor countries are seeking through new international economic arrangements depends on raw mate¬ rials oil, many minerals and even over the longer term some basic foodstuffs which can only come from developing coun¬ A recent criticism of aid is that by promoting the emulation of tries. Unless they are. and see that they are, benefitting ade¬ our industrial consumer societies, it will create unbearable pres¬ quately from the international economic order, these countries sures on the global environment, especially in view of the popu¬ will not have the capacity or incentive to help meet our urgent lation explosion in the developing world. But the needs that needs. As a result, our own prosperity, on which taking care one can hope to see filled in the developing world over the of our slums, poverty and environmental problems depends, will next few decades, even with much more aggressive and efficient risk stumbling into depression or inflation or both. development policies, will be limited for most of their peoples Thirdly, our prosperity also depends on a growing exchange of to the basic minimums which even in the spartan material con¬ manufactured goods with the developing countries, theirs pri¬ ditions which may prevail in the late 21st century we would marily labour-intensive, ours high-technology products. Without concede everyone should have. What is important is not to this exchange we will face problems of unemployed people and cut back on aid but to see that more of our and their resources capital.
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