Challenging human poVerty continued from page 'n require further capital inflows should Many Governors also emphasized the tion, and trade barrier-lowering concepts now be redefined. "I realize the tempta- potential development role of the private proposed at earlier meetings of the tion that exists to hold rates and charges sector in supporting a proposed $480 UNCTAD, the Paris Conference on Inter- on Bank loans to a minimum, but in the million increase in the capital of the national Economic Cooperation, and the long run neither the interests of the Bank International Finance Corporation. IFC's Non-Aligned Nations as parts of the Third nor those of its borrowers, would be well increasing role as the Bank's primary World's new international economic order. served by such a policy," he added. facility for assisting semi-industrialized Several Governors spoke in favor of the In his concluding remarks, Mr. McNa- middle-income developing countries was representation of the People's Republic of mara recognized the Governors' concern stressed by Israel's Moshe Sanbar, who China in the Bank and the Fund. over this issue, and proposed a solution: suggested the Corporation give specific The Governors widely accepted a theme "once an adequate recapitalization of^the attention to helping developing countries sounded in the opening addresses of IBRD has been agreed upon, the condi- obtain export credit refinancing. Other Chairman Imady and President McNa- tions that have made this hardening Governors noted IFC's "multiplier effect" mara; that, as Mr. McNamara repeated in necessary will have been removed, and in drawing private capital to developing his closing remarks, "the primary devel- the terms can then be moderated." countries through its participation in proj- opment effort affecting a society must be A continuation of the Bank's middle- ects. made by the people of the society itself." priced Third Window—set up in 1976 for Other important sources of concern to At the meeting's end, both Mr. McNa- a limited term—was urged by a dozen the Governors included increasing the mara and Chairman Imady felt a common developing country Governors as a means disbursement rate of Bank and IDA ground had been reached. "It is clear that of easing the widening cost differential assistance, particularly through more pro- a broad consensus has emerged," the between conventional Bank lending and gram and sectoral lending to, as Jamaica's Bank President said. "To a casual observer, IDA credits. Philippine Governor Cesar Governor David H. Coore, speaking for it may seem that the collective views of E. A. Virata, also representing 19 Latin the Caribbean island nations said, "intro- our 127 member governments are divided. American countries, asked the Bank's duce a much-needed element of speed and They are over details—as one would member countries to "consider favorably flexibility into the ability of the Bank to expect. They are not over fundamentals." the extension of the Bank's Third Win- respond to the urgent needs of the devel- "No unanimity has emerged; none was dow, as well as additional contributions oping countries." to this facility," while Thailand's Amnuay Governors also focused on developing expected," Chairman Imady said in clos- Viravan felt the facility was gaining country trade and debt problems, with ing the Thirty-First Bank Annual Meeting. "great significance" and hoped it would many Governors urging that the Bank "I feel that we have, however, reached a become a "permanent feature of Bank take a leading role in implementing the broader and deeper understanding of the activities." debt rescheduling, commodity stabiliza- problems we must face together." PU glected international financial affairs. This value system and of the pros and cons of book, with both its merits and its short- floating exchange rates are less com- comings, is a typical example of their work pelling than the analysis of political fac- in this field. tors. For example, the author makes much Brenner's analysis is focused on the of the expansion of the Eurocurrency emergence of a system of managed float- market as a major cause of world infla- ing rates among the major industrial tion, while most economists would place Book countries in 1973. He shows how the the blame squarely on expansionary national interests of the major countries, monetary policies; and he seems to be notices in conjunction with the institutional and arguing that price elasticities in foreign ideological predelictions of the officials trade have proved to be low, while taking and politicians responsible for the relevant into account neither the considerable time decisions, ruled out alternative responses lags involved nor the fact that much of the to the financial difficulties facing the exchange rate movement in recent years industrial world during this period. He simply offset differential rates of price gives plausible and interesting reasons for inflation. Mr. Brenner also fails to see that his thesis that neither freely floating rates independence of monetary policy resulting nor a complete reorganization of inter- from floating rates is not "illusory," as he A political view national monetary institutions and rules claims, but is simply greatly reduced when was politically feasible at that time, nor is rates are managed with the aim of main- likely to be in the foreseeable future. His taining orderly exchange markets. Brenner, Michael J., The Politics of descriptive material is drawn notonlyfrom This is a useful book to read for those International Monetary Reform—The published sources but also from personal interested in the future evolution of the Exchange Crisis, Cambridge, Mass., interviews with highly placed^ officials, international monetary system, since this U.S.A., Ballinger Publishing Company, bankers, and economists in the United will continue to be determined by political 1976, xiii + 144pp., $13.50. States and Europe, as well as the Inter- factors. However, the reader is warned The dramatic changes that have taken national Monetary Fund and the Bank for that the going is made heavy by a place in the international monetary system International Settlements. formidable combination of a turgid style since 1971 have attracted the attention of The discussions of the underlying eco- and social-scientific jargon. political scientists, who had hitherto ne- nomic causes of the breakdown of the par Anthony Lanyi 46 ©International Monetary Fund. Not for Redistribution Mr. Simha obviously reads extensively Subsequent chapters cover, inter alia, Oil and all that and has an uncanny ability to get to the revision, updating, and provisions for heart of the matter. Hence, the wheat has change in agreements, relinquishment of been thoroughly sorted from the chaff. His rights, expropriation, nationalization, in- Simha, S.L.N., and Hemalatha, D., Oil, personal views on many of the questions vestment .insurance schemes, penalties International Payments, and Reform, discussed—for example, that the official and sanctions in agreements, sovereign Madras, India, Institute for Financial price of gold should have been at least immunity and the act of state doctrine, Management and Research, 1975, vii + doubled long ago—also show through the and avoidance of nonenforceable provi- 271 pp., Rs 50. exposition, giving added interest to the sions. Abuses practiced by corporations book. The writing style is refreshing— and host countries alike are reviewed. candid, unpretentious, and, in places, The authors have categorized both the In the past decade, Mr. S.LN. Simha, an almost conversational. successful and the not-so-successful at- economist of considerable experience in temps to regulate markets for raw ma- international finance—previously with the Margaret Garritsen de Vries terials. Of interest is their analysis of the Reserve Bank of India and now Director of necessary ingredients for a successful the Institute for Financial Management Minerals, inter alia consortium of producing countries. The and Research in Madras—has been ex- authors conclude this manual with a ceedingly prolific, writing books entitled model agreement to illustrate and assist Gold and the International Monetary Sys- Smith, David N. and Louis T. Wells, Jr., those commissioned with negotiating and tem, International Monetary Reform, Eco- Negotiating Third World Mineral Agree- drafting mineral agreements. nomic and Social Change in India, Essays ments: Promises as Prologue, Cam- The subject matter of this book is of in Finance, and All the Bank's Men, as bridge, Massachusetts, U.S.A., 1975 immense importance at this time, in light well as editing other volumes. xiii + 267 pp., $17.50. of the 1973 oil embargo and the fear of a His latest work. Oil, International Pay- This is a perceptive and objective book future mineral shortage. The global min- ments, and Reform, written with Miss D. eral reserve balance is gradually shifting Hemalatha, is a small but comprehensive illuminating most of the major problems from the industrialized to the developing book giving some historical background surrounding the negotiation of min- and an analytical basis for understanding ing agreements. countries who do not have the means and three major contemporary economic prob- The analysis begins by describing indi- resources to support exploration and ex- lems: oil and energy, the current world vidual characteristics of these agree- ploitation on their own. They need the payments situation, and international mon- ments that cannot be isolated from the expertise and support of the multination- etary reform. The volume aims at readers economic, political, administrative, and als. Ways and means must therefore be interested in a general, but not superficial, social forces that comprise the environ- found to create a more stable and co- survey of these problems. It achieves its ment. No two minerals are alike nor are operative environment to permit the equi- purposes well, and should be of great any two countries or corporations, and table and orderly development of new value not only in India but throughout the each transaction depends on the particu- sources of supply.