·------. ----·� SUPPLEMENT TO MAJOR ECONOMIC CHANGES IN 1948 UNITED NATIONS Supplement MAJOR ECONOMIC CHANGES IN 1948 Discussion of the w.orld economic situation in the Economic and Social Council at .its eighth session, February and March 1949 Department of Economic Affairs UNITED NATIONS Lake Success, New York June 1949 UNITED NATIONS PUBLICATION Sales No., 1949.II.C.2 FOREWORD The General Assembly of the United Nations noted with approval at its second regular session that the Economic and Social Council had made arrangements for regular reports to the Council on world economic conditions and trends and recommended that consideration be given by the Council to periodic surveys of the world situation in the light of its responsibility under Article 55 of the Charter, to promote the solution of international economic problems, higher standards of living, full employment and conditions of economic and social progress and development. As background for its discussion at its eighth session, the Council had before it several reports, including the report of the Department of Economic Affairs on Major Economic Changes in 1948. At the conclusion of its discussion of the world economic situation, the Council adopted a resolution, reproduced on page 118, drawing the attention of Member Gov.emments of the United Nations, the Economic and Employment Commission, the regional economic commissions and the specialized agencies to the views expressed by members of the Council. The verbatim record of the discussion in the Economic and Social Council from 21 to 25 February 1949 is contained in this volume. iii GUIDE TO THE DISCUSSION Members of the Economic Participants in and Social Council the discussion Page Mr. THORN 1,97,117,118,119 President Australia Mr. PLIMSOLL 2 Belgium Mr. VAN LANGENHOVE 41 Brazil Mr.MuNIZ 45 Byelorussian Soviet Socialist Republic Chile Mr. SANTA CRUZ 7 China Denmark Mr. IVERSEN 15 Mr. BORBERG 116 France Mr. MENDES-FRANCE 28 Mr. BORIS 105 India Mr. SEN 51 Lebanon Mr. HAKIM 76 New Zealand Mr. SUTCH 19 Peru Mr. FERNANDEZ-STOLL 80 Poland Mr. KATZ-SUCHY 63,109 Turkey Mr.OZGUREL 54 Union of Soviet Socialist Republics Mr. TSARAPKIN 87,115,118 United Kingdom Mr. MAYHEW 57, 100, 118 United States of America Mr. THORP 37,97 Venezuela Mr. STaLK 82 Mr. OWEN 117 Assistant Secretary-General in charge of Economic Affairs v UNITED NATIONS ECONOMIC AND SOCIAL COUNCIL Eighth session, February and March 1949 Lake Success, N ew York 21 FEBRUARY 1949, MORNING MEETING The PRESIDENT ments which occurred during 1948. He wishes me to point out that it was clearly impossible to pre­ We are now ready to begin the debate on item sent a definitive review of the year 1948 so soon 16 of the agenda: the world economic situation. after the end of the year and that there are there­ When a similar economic debate came to its con­ fore a number of unavoidable gaps in the report. clusion a year ago, the President of the Economic The report is being issued at this time in order to and Social Council, Mr. Malik of Lebanon, found provide the Economic and Social Council with a it possible to say that the debate had been one of useful factual background for discussion of the the finest and most instructive he had attended, current world economic situation. A comprehen­ and he had attended many debates on· this ques­ sive economic survey of the world situation will tion from the days of San Francisco on. After the be issued by the Secretariat towards the middle of debate the Secretary-General, following the wishes 1949. That survey will take account both of the of the Council, arranged to make the verbatim regional economic reports which will become record available in the form of a printed supple­ available during the early months of 1949 from ment to the economic report which had been pre­ the secretariats of the regional economic com­ pared by the Secretariat, so as to give wider cir­ missions of the United Nations in Europe, Latin culation to the factual and policy statements that America and the Far East, and of the economic were made before the Council. I am certain that activities of the specialized agencies. the high standards set a year ago will be main­ tained this year. Another report which you may find useful in connexion with the debate on the world economic May I now call your attention to a number of situation is United Nations document EllUl en­ documents which contain data that you may find titled "National and International Action to helpful in connexion with this debate. There is, Achieve or Maintain Full Employment and Econ­ of course, the printed report by the Secretariat omic Stability". This document contains the re­ entitled Major Economic Changes in 1948. The plies received from twenty-two governments and first part of this report was made available to us three specialized agencies to questions put to them several weeks ago in mimeographed form. I am by the Secretariat in accordance with the Econ­ told by the Secretariat that a few slight revisions omic and Social Council's resolution 104 (VI) on have since been made in that document; you are this problem. therefore urged to use the printed version which was distributed to you several days ago, which Another document which contains data that also incorporates part II of the report, containing you may find useful is the Review of International selected world economic indices. Commodity Problems, 1948 presented by the In­ terimCo-ordinating Committee for International In connexion with this report I also draw your Commodity Agreements, which was created inac­ attention to Mr. David Owen's preface, in which cordance with a resolution adopted by this Coun­ he points out that the purpose of the present pub­ cil. The aim of the review is to set out the nature lication is to make generally available a prelimin­ of international economic problems relating to ary review of the important economic develop- primary commodities, to explain the principles 1 2 Mr. Plimsoll, Australia that have been accepted by the Committee as a I might say also that this report on major econ­ guide in dealing with these problems and to re­ mic changes in 1948 has attracted a great deal of view the actions taken in this field to date. attention in the Press of my country, Australia, where, I am told, it has been high-lighted and re­ Finally, you will find material bearing on the ported and commented on at some length. It shows world economic situation in United Nations docu­ that the general public believes that in devoting a ment E/1084, which contains the report submitted great deal of attention to a problem of this nature to us by the Food and Agriculture Organization -the whole economic position of the world-the of the United Nations in connexion with item 19 Economic and Social Council is really getting of the agenda, dealing with the world food situa­ down to the main business for which it was cre­ tion. You are, I am sure, also acquainted with the ated. This debate, and the debate on economic de­ United Nations Monthly Bulletin of Statistics, velopment, are the sort of thing for which we were which contains a wealth of economic data. really established. Of course these documents are not, as such, the subject of our debate, but I thought it useful Turning to the report itself, the first major point to bring them to your attention at this time. that emerges from it is the big increase in produc­ tion during the past year-a most encouraging I feel certain that at the conclusion of the de­ trend indeed. Production in the world as a whole bate we are aboutto begin we shall all feel it de­ is now almost up to the pre-war level. But the in­ sirable to have the discussion reproduced as a crease is not uniform. There are some countries supplement to the report before us, Major Econ­ where production is lagging, particularly the de­ omic Changes in 1948. To ensure that this debate feated countries - Germany and Japan - and the will in effect supplement the Secretariat's report, formerly occupied countries. But on the whole, I hope that the participants in the debate will de­ production has recovered. vote their attention primarily to matters not cov­ ered, or not covered in detail, by the report. In particular there is the recovery in food which I therefore hope that the participants will dwell the report rightly singles out as possibly the most on economic conditions within their own coun­ important factor during the past year. The other tries, the effect of those conditions on the world striking feature is the recovery in western Europe. economic situation and the effect of world condi­ Europe is still far behind what we hope it will at­ tions upon the situation in their own countries. tain but nevertheless it is clear that western Eu­ rope is getting back on its feet. For this we all owe Mr. PLIMSOLL, Australia a great debt of gratitude to the United States of America for its loans and other aid-for the re­ The Economic and Social Council and the markable foresight, generosity and understanding United Nations are once again under a debt to it has shown and for the assistance it has given the Secretariat for preparing for us a very good and is continuing to give. report on the world economic position today. Our congratulations are due to Mr. Owen and Mr. Weintraub and the other members of the econ­ The second point-which is giving concern to omic staff of the United Nations for the great care some people, a concern which is uncalled for at and accuracy and power of analysis they have the moment-is the appearance of deflationary shown in this report.