Loyola University Chicago Loyola eCommons Master's Theses Theses and Dissertations 1953 The Ethical, Social, Economic and Political Aspects of the Point Four Program Judy Sikes Rickher Loyola University Chicago Follow this and additional works at: https://ecommons.luc.edu/luc_theses Part of the Industrial Organization Commons Recommended Citation Rickher, Judy Sikes, "The Ethical, Social, Economic and Political Aspects of the Point Four Program" (1953). Master's Theses. 1231. https://ecommons.luc.edu/luc_theses/1231 This Thesis is brought to you for free and open access by the Theses and Dissertations at Loyola eCommons. It has been accepted for inclusion in Master's Theses by an authorized administrator of Loyola eCommons. For more information, please contact [email protected]. This work is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 3.0 License. Copyright © 1953 Judy Sikes Rickher 'rHE ETHICAL, SUCIAL, ECONO.rdC AND POLITICAL i\SP1::,CTS OF THE POINT FOUR PROGRAM by Judy Sikes Rickher A 'l'hesis Submitted to the Faculty of the Institute of Social and Industrial Relations of Loyola University in Pat'tial Fulfillment of the requir'ements for the Degree of Master of Social and Industrial Relations June 1953 LIFE Judy Sikes Rickher was born at Abbott, New Mexico, April 8, It/19. She was graduated from Trinidad Public High School, Trinidad, Colorado, June, 1937. She attended the University of New Mexico part time and was awarded a Diploma from the General College School in June, 1942. From February 1943 to December 1946 she served in the ilomen t s Army Corps. In September 1948 she began work at Loyola University and was graduated February, 1952 with the degree of Bachelor of Science. She began her graduate studies at Loyola University in September 1951. ii PREFACE The purpose of this paper is to analyse the Point Four Program, to look into the philosophy behind the program and to interpret its effects on the progress toward world peace. The Ethical, Social, Economic and Political aspects of the program, though difficult to separate one from the others, are covered quite thoroughly in order that the actual philosophy of tne overall progroam can be better analysed and understood. ~ruch has been said and written for and against the undertaking of the Point Four Program. The writer of this naper does not claim to have analysed all arguments favoring or dis­ favorinp- the program. An earnest effort has been made to study the best such arguments and interpret them in the light neces::ary for the development of this paper. Invaluable aid was received from members of the 'Mutual Security Agency in private interviews in Washington, D. C. During each of these meetings the writer' of this paper was constantly impressed wit: the spirit of cooperation being fostered through­ out the whole program. In one such interview a Technical Cooper­ ~tion Administration representative expressed deep concern about the lack of popular un4erstanding of the program on the part of th a v average American citizen. It was his hope that more wide-spread publicity would be given the undertaking in order th[1t America ~nd the world might know that Point Four is basically a plan ~hereby peoples throughout the free world ca.n call on America, hot for a hand-out, but 1"0(, aid to assist them in their e.fforts to raise their standard of living; a program where the dignity of man is preserved and coopera tion is the w8.tchword • .A good bit of the source material used in this paper h8S been taken from bulletins, oamphlets and articles given to the writer in Technical Cooperation Administration o.ffices, lDepartment of State, end not publisfled elsewhere. Ttle Point Four Program has been in operation for sllch ~ short period of time it is impossib:S to give a true measure 101" its successes Qr .failures as such, however, the aspects cover­ led here, the Ethical, Social, Economic and Political, were a part of the program before it was ever put into actual practice. Wherefore, they can be discus:'1 ed fully as this paper a tt.empta Ito do. TABLE OF CO NTENTS ~apter Page I. ,';HAT IS THE~ POINT FDUR PROGRAM.................. 1 Conception of the Program....................... 1 Setting up of the Program....................... 2 Aims and purposes of the Program................ 3 Functions of the Program........................ 4 How the Program is instigated................... 8 What constitutes an underdeveloped country...... 10 II. REASONS WHY THE UNITED ST.,TES MUST CARRY ON THE POINT FO;:R PROGHAM............................... 12 Ethical reasons................................. 13 Social reasons.................................. 23 Economi e z·easons ••• " ••••••••••••••••••• " •••••• ". 28 Political reasons............................... 38 ~II. COUNTRIES RECEIVING POINT FOUR AID •••••• "" •••••• 48 Afghanistan..................................... 50 Burma........................................... 51 India........................................... 52 Indonesia....................................... 57 Nepal. • • • • • • • •• • •• •• • •• • • •• • • • • • • • •• • • • • • • • •• • • • 60 Pakistan........................................ 61 Egypt........................................... 62 Ethiopia......................................... 64 Iran ••••••••••••••••.••••••••••••• "• • • • • • • • • •• •• 65 Iraq............................................ 66 Isreal.......................................... 68 J·ordan. • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • 69 Lebanon. • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • 70 Liberia......................................... 71 Libya........................................... 72 Saudi Arabia.................................... 73 Latin America................................... 75 Bolivia......................................... 77 Brazil.......................................... 78 vii Chil e •••••••••••••••••••••••••••••••••••••••••• 79 Colo.mbia ••••••••••••••••••••••••••••••••••••••• 79 Costa Rica ••••••••••••••••••••••••••••••••••••• 80 Cuba ••••••••••••••••••••••••••••••••••••••••••• 81 Dominican Repllblic ••••••••••••••••••••••••••••• 82 Ecuador •••••••••••••••••••••••••••••••••••••••• 83 El Salvador •••••••••••••••••••••••••••••••••••• 84 Guatemala •••••••••••••••••••••••••••••••••••••• 85 Haiti •••••••••••••••••••••••••••••••••••••••••• 85 Hondura.s ••••••••• "' ••••••••••••••••••••••••••••• 86 Mexico ......................................... 87 Nicaragua •••••••••••••••••••••••••••••••••••••• 89 Panama ••••••••••••••••••••••••••••••••••••••••• 90 Paraguay ••••••••••••••••••••••••••••••••••••••• 90 Peru ••••••••••••••••••••••••••••••••••••••••••• 92 Uruguay •••• " ••••••••••••••••••••••••••••••••••• 95 Veriezuela •••••••••••••••••••••••••••••••••••••• 94 IV. PRIVATE CAPITAL AND OTHER INVE:-'TMFNTS IN THE UNDERDEVELOPED AREAS •••••••• '" •••••• '" ••••• '" ••••• 95 Commerce Department work with the Mutual Secur- ity Agency ••••••••••••••••••••••••••••••••••••• 96 Moral obligation belongs to society •••••••••••• 97 International Bank For Reccnstructlon And Dev­ elopment Investments ••••••••••••••••••••••••••• 98 V. SO MNlARY AND CONCLUSI ()NS •••••••••••••••••••• "' ••• 100 APPENDIX I, POINT F\)UR EXPENDITURES AND UNITED STATES STAFF................................... 105 APPENDIX II, INTERNATIONAL BANK FOR RECi)NSTRUC ... TION AND DE'VELOPNENT. MEMBER COU NTRIES. • •• • • • •• 107 BIBLIOGRAPHY. • • • • • • • • • • • • •• • • • •• • • • •• • • • • •• • • • • 109 Cl AprI'ER I WHAT IS THE POINT FCUR PROGRAM ~Vhen t{,e question 'What is t.he Point Four Program? I is asked the shortest answer is: United States aid to the underde- veloped countries of t.he world. To go deeper into the subject and explain the purposes, functions, aims and achievements of thi s far reaching program is tLe purpose of this paoer. The title of the program comes directly from the inaug- ural address given by President Harry S. Truman on January 20, 1949. The foreign policy section of his address had been written in specific points of importance, the fourth point was given to the proposal that the United States embark on this new program to aid underdeveloped countries. The name stuck and the program since .bas been referred to" the world over, as 'l'he Point Four Program. This 1s what President 'l'ruman said: Fourth, we must embark on a bold, new orogram for making the benefits of our scientific advances and industrial progress available ror the improve­ ment and growth of underdeveloped areas •••• I be­ lieve that we should make available to peace-IovinE peoples the benefits of our store of technical knOt.l­ ledge in order to help them realize their aspira­ tions for a better life. And, in cooperation with othe.r nations, we should foster capital investment 2 in areas needing development. Our aim should be to help the free peoples of tLe world, through their own efforts, to produce more food, more clothing, more materials for housing, and more mechanical power to lighten their bur­ dens. Mr. Truman indicated t'ree vitally important factors whi ch must be considered in the orogf'Elm, namely, first the bene- ficiaries must be peace-loving peoples in underdeveloped areas, second aid must be in the form of technical advice in a program to help the peoples help themselves, and third that the United Stbtes should cooperate with other nations in encouraging capital investments in the ~nderdeveloped countries of the world. In a democratic