international foundation for development alternatives

fundacion international para alternativas de desarrollo

fondation internationale pour un autre developpement

F D A D O S S I E R 10 . AUGUST 1 9 7 9

C O N T E N T S

INTRODUCTORY NOTE

B U I L D I N G BLOCKS . A balance sheet of Third World-Canada relations (North-South Ins t i tu te )

. Relations economiques Suisse-Tiers Monde (Philippe Berberat e t Hilmar S t e t t e r )

. Relations between Sweden and the Third World (Birgi t t a Nygren)

. Un France nouvelle: Ses orientations dans ses rapports avec l e Tiers Monde (Ngo Manh Lan e t Michel Beaud) Environment and development s t rategies (Fundacion Bariloche)

The Arab world: An e l ig ib le case for collective self-reliance (Ahmad A. Shalaby)

. The international repression trade (Michael T. Klare)

. Can they do i t : Participation of NGOs of Third World countries in NIEO-oriented projects (J.S. Szuszkiewicz)

MARK I NGS

. Latin America: Broadening the social impact of growth (Enrique Iglesias)

INTERACTIONS

. Culture i s the hardest of a11 ( D . Paul Schafer)

. A note on understanding participation process in organization system design (Nitish R. De)

. Reactions to previous Dossiers - excerpts from a l e t t e r (Gordon Hoke)

. A bet ter informed world - how can we meet the need? (Arne Fjortof t)

. Technology planning in Third World countries: Undue economism? (Frank Long)

. IPSIIFDA special UNCTAD V coverage

FOOTNOTES / NOTAS -

rontributions t o the IFDA Dossier are presented under the sole responsibi l i ty o f t h e i r authors. They are not covered by any copyright. They may be repro- duced or transmitted i n any form or by any means without permission o f the authors or IFDA. In ease of reprint , a e k d e d g e m e n t of source and receipt of a copy would be appreciated. THE IFDA DOSSIER IS PUBLISHED MONTHLY

executive committee . ismail-sobn abdalla, ahmed ben salah (co-chairman), gamoni corea, mahbub ul haq, enrlque Iqlesios, ion meijer (co-chairman), marc netfin (president). justtnlan f . rweyemamu, ignacy sachs, juan somavia, mourice f . strong. inqa thorsson

secretariat 2, place du marche, ch - 1260 nyon, Switzerland: telephone 41 (77) 61 8 2 8 2 - telex 26840 ifdo c h , cable lipad, qenevc

INTRODUCTORY NOTE

One o f t h e major o b j e c t i v e s o f t h e T h i r d System P r o j e c t o rgan ized by IFDA i s t o t r y and g i v e a voice, i n t h e development d iscuss ion , t o those who a r e never o r r a r e l y heard, even though i t i s they who a r e p r i m a r i l y a f f e c t e d by t h e dec is ions taken i n t h e i r names.

Some 300 i n s t i t u t i o n s , ad hoc groups o r i n d i v i d u a l s - two t h i r d s o f which a r e i n t h e T h i r d Wor ld - p r e s e n t l y p a r t i c i p a t e i n t h e p r o j e c t through one o f i t s 118 a c t i v i - t i e s o r through var ious c o n t r i b u t i o n s t o t h e IFDA Dossier . T h i s suggests t h a t a s t a r t has been made i n reach ing a t l e a s t a few unheard voices.

T h i s i s s u e presents, i n t h i s connexion, a paper d e s c r i b i n g a survey undertaken i n I n d i a w i t h a v iew t o th row ing some l i g h t on t h e p a r t i c i p a t i o n o f I n d i a n non- governmental o r g a n i s a t i o n s (NGOs) i n development. A q u e s t i o n n a i r e s k e t c h i n g o u t t h e main f e a t u r e s o f t h e P lan o f A c t i o n f o r t h e Establ ishment o f t h e NIEO, b r i e f l y d e s c r i b i n g IFDA and ask ing ques t ions about t h e i n t e r e s t s , a c t i v i t i e s and p o t e n t i a l o f NGOs i n development was sen t t o 1,400 NGOs and 160 p u b l i c i n s t i t u t i o n s w i t h which they cooperate. Two t h i r d s o f t h e former and t h r e e q u a r t e r s o f t h e 1 a t t e r have rep1 i ed.

The purpose o f t h i s no te i s n o t t o repea t what Dr. J.S. Szuszkiewicz, who designed and c a r r i e d o u t t h e survey, w r i t e s i n h i s paper, b u t r a t h e r t o draw a t t e n t i o n t o a ma jo r conc lus ion : c i t i z e n groups i n t h e T h i r d World do e x i s t , and they a r e b o t h eager and a b l e t o p a r t i c i p a t e d i r e c t l y i n t h e development e f f o r t . Th is c o n s t i t u t e s i n f a c t an i n v i t a t i o n t o p lanners and a d m i n i s t r a t o r s t o l i s t e n t o t h e people and work o u t ways and means t o f a c i l i t a t e t h e i r involvement i n development a c t i o n .

The i s s u e a l s o c a r r i e s f o u r papers - on Canada, Swi tze r land , Sweden and France - which, t o g e t h e r w i t h t h a t on t h e e x p o r t o f r e p r e s s i o n technology t o t h e South, i l l u s t r a t e t h e p resen t sad s t a t e o f North-South a f f a i r s . On t h e o t h e r hand, Enr ique I g l e s i a s ' s o c i a l development suggests t h a t t h e ' m i s s i o n ' i s p o s s i b l e .

I f , as we b e l i e v e , development deserves i t s name o n l y i f i t i s development o f , f o r and by people, t h e r e i s no o t h e r p o s s i b i l i t y t o move ahead than t o r e l y on people. The I n d i a n NGOs r e a c t i o n shows t h a t t h e r e i s indeed a way.

B U I L D I N G BLOCKS

A BALANCE SHEET OF THIRD WORLD - CANADA RELATIONS: SUMMARY ANALYSIS A POLICY PRIORITIES

by t h e North-South I n s t i t u t e 185, Rideau Ottawa, KIN5X8, Canada

Or ig ina l Language: English

Abstract: This balance sheet of economic re lat ions of Canada with the Third World provides a candid analysis o f d irect private investment i n the Third World ( the "challenge of the transnationals"), of food, aid (including conces- sional development ass is tance) , technology and agricultural re lat ions , o f trade i n manufactures and commodities, and monetary/financial i ssues . The analysis confirms that Canada - l i k e other industr ial ized countries - i s torn between helping t o maintain the global s ta tus quo, with i t s grave imbalances and obstacles t o development, and working towards a more equitable and more basic reorientation of i t s re lat ions wi th the Third World. Above a l l , the failure of comprehensive analysis and policy development for change i s underlined, and an increasing role of the Third System i n preparing for change i s recognized.

*/ Copies of the full study plus annexes ean be obtained from North-South - I n s t i t u t e .

B I L A N DES RELATIONS CANADA-TIERS MONDE: LINE ANALYSE SOMMArRE E T

PRIORITY POUR L ' A C T I O N ~

Resume: Ce b'LT.,an des re lat ions economiques du Canada avec l e Tiers Monde o f f r e une analyse franche des inveotissements d i rec t s du Canada dans Ze Tiers Monde ("Ie d e f i des transnationales"), de I 'alimentation, de l 'a ide (y compris I 'aide c? des conditions preferent ie l les) , de la technologic, du commerce des produits manufac- tures e t des matieres premisres de m&ne que des questions monetaires e t financiZres. L'analyse confirms que l e Canada, come d'autres pays industr ial ises , e s t partage entre l e desi-r de maintenir l e s ta tus quo global, avec ses ddsdquilibres croissants e t l e s obstacles q u ' i l met an developpement, e t l e souhait de contribuer c? une rdorientation plus equitable e t plus fondcmentale de ses re lat ions avec l e Tiers Monde. Pen" dessus tout , l e manque d'une analyse d'ensemble e t d'une polit ique de ddveloppement e s t souligne, de mSme que l e r8le du Tiers Systeme dans l a preparation du changement.

*/ Copies de 1'dtude complete e t ses annexes peuvent Stre obtenues c? l l I n s t i t u t - North-South.

(Resumen espanol: pdgina 1 5 )

A Balance Sheet o f T h i r d World-Canada R e l a t i o n s : Summary A n a l y s i s and P o l i c y P r i o r i t i e s

by The Nor th-South I n s t i t u t e

The Nor th-South I n s t i t u t e ' s d e t a i l e d "balance-sheet" o f T h i r d World r e l a t i o n s w i t h Canada has been designed t o shed l i g h t on t h e n e t b e n e f i t s a c c r u i n g t o b o t h Nor the rn and Southern p a r t n e r s i n s e v e r a l d i f f e r e n t f u n c t i o n a l r e l a t i o n s h i p s and i ssue-a reas . The "balance shee t " was so c o n s t r u c t e d as t o ex tend back i n t o t h e web o f i n t e r e s t s , pressures, coun te r -p ressures , and processes which determine n a t i o n a l responses t o a r t i c u l a t e d T h i r d World needs and demands. A s p e c i a l focus was main- t a i n e d on t h e performance and p o t e n t i a l o f t h e a c t o r s o f t h e non-governmental, non- c o r p o r a t e T h i r d System" i n shaping Canada's answer t o e s t a b l i s h e d p o s i t i o n s o f t h e N e w I n t e r n a t i o n a l Economic Order " and, where t h e y d i ve rge , t o t h e requ i rements o f a1 t e r n a t i v e develoment s t r a t e g i e s .

The a n a l y s i s con f i rms t h a t Canada, more than most o f t h e i n d u s t r i a l i z e d n a t i o n s , i s t o r n between t h e g l o b a l s t a t u s quo and a b a s i c r e - o r d e r i n g , i n terms o f b o t h i t s c o n c r e t e n a t i o n a l i n t e r e s t s and an even more fundamental n a t i o n a l se l f - image and i d e n t i t y . Wh i le s p e c i a l e t h n i c , r e g i o n a l and governmental f e a t u r e s undoubtedly com- p l i c a t e t h e Canadian t a p e s t r y o f i n t e r n a l i n t e r e s t s and pressures, t h e composi te p i c t u r e , i n a h i g h l y permeable Western s o c i e t y , p robab ly y i e l d s v a l u a b l e models and compara t i ve i n s i g h t s .

The F a i l u r e o f A n a l y s i s

A c e n t r a l , u n i f y i n g f e a t u r e o f Canadian responses t o t h e T h i r d Wor ld i n a m u l t i - p l i c i t y o f areas l i e s i n t h e f a i l u r e t o generate comprehensive, i n t e g r a t i v e a n a l y s i s o f t h e Canadian p o s i t i o n . The f i e l d s o f i n t e r n a t i o n a l commodity t rade , t h e " t y i n g " o f b i l a t e r a l development a i d t o Canadian procurement, t h e s u r v e i l l a n c e and d i r e c t i o n o f t r a n s n a t i o n a l bus iness a c t i v i t y , and t h e management o f sc ience and techno logy p o l i c y p r o v i d e n o t a b l e ins tances where t h e f a i l u r e o f a n a l y s i s l eads t o a p a r a l y s i s o f p o l i c y - i n i t i a t i v e . I n t h i s s t a t e o f a t t e n t i s m e i t i s seen t h a t maximum scope i s l e f t t o t h e f r e e p l a y o f e s t a b l i s h e d market power, i n t e r n a l and t r a n s n a t i o n a l , and t h a t Canadian n e g o t i a t i n g p o s i t i o n s s l i p r e a d i l y i n t o t h e comfo r tab le , f a m i l i a r l o c k - s t e p o f t h e Western b l o c , whether o r n o t t h i s f a i r l y r e f l e c t s the r e a l i t y o f even s h o r t - t e r m Canadian i n t e r e s t s .

Even i n i n s t a n c e s where Canadian p o l i c y has demonstrated unusual responsiveness - two examples a r e i n t h e r e l i e f o f a i d - r e l a t e d deb t and e a r l y movement on t h e Common Fund f o r commodit ies - i t i s s t r i k i n g t h a t Canadian i n i t i a t i v e s were n o t based on any e x h a u s t i v e assessment o f t h e i ssues b u t on s t r o n g p o l i t i c a l , d i p l o m a t i c and, ( i n t h e case o f t h e Common Fund a t UNCTAD I V ) non-governmental impetus t o show a respons ive - ness c l o s e r t o t h a t o f t h e " l i ke -m inded" p r o g r e s s i v e c o u n t r i e s o f Scandinavia and the Ne ther lands . A11 o f these examples o f l i m i t e d a n a l y s i s a r e e x p l o r e d f u r t h e r be low and i n depth i n t h e Canadian balance-sheet s tudy .

A l though i t s p r i n c i p a l r a m i f i c a t i o n s were n o t "Nor th-South" i n c h a r a c t e r , men- t i o n shou ld be made o f one a t y p i c a l f i e l d where Canadian p o l i c y - a n a l y s i s seems t o have been e x h a u s t i v e and t h e p u r s u i t o f Canadian o b j e c t i v e s has been shrewd, cohe- r e n t and s ing le-minded. T h i s i s t h e a rea o f l a w o f t h e sea n e g o t i a t i o n s where, ove r y e a r s o f s u s t a i n e d barga in ing , Canadian r e p r e s e n t a t i v e s have succeeded i n b a l a n c i n g and harness ing t h e whole range o f i n t e r n a l i n t e r e s t s and s e c u r i n g n a t i o n a l b e n e f i t s unmatched by any o t h e r c o u n t r y . A l though t h i s noteworthy e x c e p t i o n c o u l d n o t be

cons idered a t l e n g t h i n t h i s s tudy i t i,s i n d i c a t i v e o f t h e l a t e n t c a p a b i l i t y f o r a n a l y s i s i n t h e c o u n t r y and o f i t s preparedness, (.in t h e v iew o f c r i t i c s a t home and abroad), t o maximize n a t i o n a l i n t e r e s t w i l h o u t much r e g a r d t o s p e c i a l T h i r d World o r g l o b a l s takes. It can be suggested a s w e l l t h a t t h i s case g i v e s warn ing o f how e f f e c t i v e l y the p o t e n t i a l o f t h e T h i r d System can be harnessed, n e u t r a l i z e d o r co-opted t o b a s i c a l l y narrow n a t i o n a l purposes.

For the l o o s e l y - k n i t , i f n o t a t o m i s t i c , non-corporate and non-governmental s e c t o r which has y e t t o be shaped i n t o a coherent " T h i r d System", t h e vacuum o f p o l i c y - a n a l y s i s represen ts bo th an o p p o r t u n i t y and a c r i s i s . The o p p o r t u n i t y e x i s t s i n a l i b e r a l and p o l i t i c a l l y - v a r i e g a t e d system t o generate o r s t i m u l a t e f o r c e f u l new approaches capable o f l e a p f r o g g i n g the deadlock o f e s t a b l i s h e d i n t e r e s t s . The c r i s i s a r i s e s f rom a c a l c i f i e d t r a d i t i o n o f r e s t r i c t e d access t o government i n f o r m a t i o n , l e a v i n g non-governmental networks c o n s t a n t l y exposed t o problems o f m i s i n f o r m a t i o n and f lawed c r e d i b i l i t y . I n t u r n , t h e i n s u l a t i o n o f democrat ic leaders and decis ion-makers f rom v a r i e d sources o f i n f o r m a t i o n p o l i c y - o p t i o n s compounds t h e i r own vu lnerab i 1 i t y t o inadequate o r s ing le -source i n p u t s .

D i r e c t F o r e i g n Investment : The Chal lenge o f t h e T ransna t iona ls

Th is complex of problems i s perhaps b e s t i l l u s t r a t e d by Canadian approaches t o t r a n s n a t i o n a l c o r p o r a t e e n t e r p r i s e s o p e r a t i n g f rom a Canadian base. As t h e f i f t h l a r g e s t home-country f o r d i r e c t i nves tment f l ows t o t h e T h i r d World, and s imul tane- o u s l y hav ing t h e w o r l d ' s most h e a v i l y fore ign-permeated investment s t r u c t u r e a t home, one would expect t o f i n d i n Canadian p o l i c y some coheren t g u i d e l i n e s f o r sa fe - guard ing and maximiz ing n a t i o n a l i n t e r e s t s i n these r e l a t i o n s h i p s . I n f a c t , Canada's own p r a c t i c e s and procedures, which amount i n e f f e c t t o a k i n d o f "code o f h o s p i t a - l i t y " f o r f o r e i g n i n v e s t o r s , s t i l l p r o v i d e o n l y t h e most f ragmentary i n f o r m a t i o n on t h e i r a c t i v i t i e s and very l i m i t e d c o n t r o l . Meanwhile, t h e opera t ions o f Canadian- based t r a n s n a t i o n a l s i n t h e T h i r d World can be i n i t i a t e d , managed and te rmina ted w i t h b a r e l y any r e f e r e n c e t o the Canadian s t a t e .

Canada i s i n e x t r i c a b l y i n t e r t w i n e d i n t h e i n t e r n a t i o n a l investment network. The s t o c k o f f o r e i g n inves tment i n Canada (C$ 39.8 b i l l i o n i n 1977) ranks i t as t h e l e a d i n g h o s t t o f o r e i g n e q u i t y c a p i t a l , w h i l e Canadian investment abroad o f C$ 10.5 b i l l i o n (1975) p laces Canada among t h e ma jo r e x p o r t e r s o f f o r e i g n i n v e s t - ment. The T h i r d World hos ts 23% o f Canadian f o r e i g n investment , most o f i t i n non- manufac tu r ing s e c t o r s , w i t h B r a z i l and t h e Caribbean area accoun t ing f o r t h e l a r g e s t shares.

The d i s t r i b u t i o n of t h e b e n e f i t s between Canada and t h e T h i r d Wor ld h o s t coun- t r i e s of these investments i s imposs ib le t o e s t a b l i s h w i t h p r e c i s i o n . The c u r r e n t p e r c e p t i o n o f t h e impact of t h e e x p o r t of c a p i t a l on t h e Canadian economy and on domestic employment i s founded on narrow ( a l b e i t i m p o r t a n t ) balance o f payments c o n s i d e r a t i o n s a lone. Such a f o u n d a t i o n i s p a t e n t l y inadequate f o r t h e task o f unders tand ing and ( i f necessary) m o n i t o r i n g o r c o n t r o l l i n g t h e a c t i v i t i e s of t h e e n t e r p r i s e s i n v o l v e d . A d e f i n i t i v e a p p r a i s a l r e q u i r e s , i n t e r a1 i a , a f u l l p i c t u r e o f i n t r a - f i r m t r a n s a c t i o n s , o f p r o f i t , d i v i d e n d and i n t e r e s t f l ows , and, more g e n e r a l l y , a n a t i o n a l d i s a g g r e g a t i o n o f t h e f i r m s ' g l o b a l a c t i v i t i e s , an amalgam o f i n f o r m a t i o n which i s a t p resen t a c c e s s i b l e t o o n l y one par ty , t h e t r a n s n a t i o n a l i t s e l f .

A f t e r decades o f i n c o n c l u s i v e o f f i c i a l , academic and non-governmental d i s c u s s i o n o f these i ssues i t seems t h a t o n l y shocks o r c r i s e s , u s u a l l y i n t h e fo rm o f d ramat i c and damaging i l l u s t r a t i o n s o f t r a n s n a t i o n a l c o r p o r a t e power, w i l l be enough t o b r i n g home t h e r e c o g n i t i o n t h a t the modern t r a n s n a t i o n a l e n t e r p r i s e , "Canadian" o r f o r e i g n ,

has b rough t w i t h i t a huge cha l lenge t o t h e p o l i c y makers and n e g o t i a t i n g mechanisms i n government.

Canada i s f a r f rom un ique in i t s p e r s i s t e n t l y piecemeal and h e s i t a n t p o l i c i e s toward f o r e i g n inves tmen t and i t s g l o b a l r e g u l a t i o n . A l though these p o l i c i e s a r e i n d i s p u t a b l y i n f l u e n c e d by t h e prominence and persuasiveness o f t r a n s n a t i o n a l b u s i - ness i n t e r e s t s , an i m p o r t a n t f a c t o r i n the o f f i c i a l Canadian approach appears t o be a l a g g i n g unders tand ing o f t h e f u l l i m p l i c a t i o n s o f t h e growth and m u t a t i o n s o f t h e t r a n s n a t i o n a l form. A r a d i c a l improvement o f t h e q u a l i t y o f i n f o r m a t i o n and a n a l y s i s on t h e a c t i v i t i e s o f t r a n s n a t i o n a l s would e q u i p dec is ion-makers t o f o r m u l a t e coheren t and e f f e c t i v e p o l i c i e s b o t h a t home and i n i n t e r n a t i o n a l d i s c u s s i o n s . I n p a r a l l e l , wide access t o t h i s i n f o r m a t i o n would r e l i e v e t h e T h i r d System o f t h e immense burden o f t r y i n g t o a l e r t t h e whole s o c i e t y t o the impor tance o f t h e t r a n s n a t i o n a l phenomenon o f t e n r e l y i n g o n l y on t h e ev idence o f i t s most abus ive m a n i f e s t a t i o n s .

Food and A g r i c u l t u r e : Trade, A i d and Development

I n t h e complex o f i s s u e s su r round ing w o r l d food supply , t r a d e and s e c u r i t y , Canada i s a m a j o r power i n t e r n a t i o n a l l y and has a wide range o f i n t r i c a t e r e l a t i o n - s h i p s w i t h d i f f e r e n t T h i r d World c o u n t r i e s . Here, t h e balance o f b e n e f i t s i n the r e l a t i o n s h i p s i s an e s p e c i a l l y v o l a t i l e i ssue , t o u c h i n g as i t does t h e v i t a l i n t e - r e s t s o f a w e l l - o r g a n i z e d and vocal a g r i c u l t u r a l s e c t o r i n Canada, and the s u r v i v a l and s e l f - r e l i a n t development o f t h e poor i n t h e T h i r d World.

G r e a t l y i n c r e a s e d s e l f - s u f f i c i e n c y i n food supp ly i s f u l l y recogn ized i n Canadian o f f i c i a l s ta tements as t h e o n l y l ong- te rm hope f o r overcoming c o n t i n u i n g w o r l d hunger and m a l n u t r i t i o n . By d e f i n i t i o n , o f course, t h e c e n t r a l s t r a t e g y and impetus f o r such s e l f - s u f f i c i e n c y must be generated w i t h i n t h e T h i r d Wor ld. Even r e c o g n i z i n g t h i s f a c t , however, c o n c r e t e Canadian p o l i c i e s and p r a c t i c e s s t i l l do n o t r e f l e c t a c o n s i s t e n t emphasis on t h e p romot ion o f a g r i c u l t u r a l development and s e l f - r e l i a n c e i n t h e T h i r d World.

The most d i r e c t , i f n o t t h e most i m p o r t a n t , Canadian i n s t r u m e n t f o r a f f e c t i n g t h e a g r i c u l t u r a l c a p a b i l i t y o f T h i r d World c o u n t r i e s i s t h e o f f i c i a l a i d programme. Canadian s u p p o r t o f m u l t i l a t e r a l a g r i c u l t u r a l research and p r o d u c t i o n a s s i s t a n c e has been v igourous, and has been complemented by a heavy emphasis on a g r i c u l t u r e i n t h e work o f t h e I n t e r n a t i o n a l Development Research Centre. I n s p i t e o f a s t a t e d p r i o r i t y o n r u r a l and a g r i c u l t u r a l development f o r a t l e a s t a decade, however, l e s s t h a n 24% o f Canadian b i l a t e r a l a i d goes t o t h e d i r e c t p romot ion o f f o o d p roduc t ion . A n a l y s i s i n d i c a t e s t h a t t h e c o n t i n u i n g d i f f i c u l t y i n improv ing t h i s per formance toward t h e i n t e r n a t i o n a l t a r g e t o f o n e - t h i r d o f a i d expend i tu re , has severa l causes, some s h o r t - t e r m and p r o c e d u r a l , and some deep ly - roo ted i n t h e t r a d i t i o n a l c h a r a c t e r o f b i l a t e r a l a i d programmes.

One i m p o r t a n t f a c t o r i s t h e " t y i n g " o f a i d t o t h e p r o v i s i o n o f Canadian goods and s e r v i c e s , a requ i rement which shapes a s e r i e s o f d e c i s i o n s i n t h e a i d process and a lmos t u n i f o r m l y m i l i t a t e s a g a i n s t g r e a t e r i nvo lvement i n g r a s s - r o o t s a g r i c u l - t u r a l development e f f o r t s under u n f a m i l i a r t r o p i c a l c o n d i t i o n s . S ince t h e r e seems t o be 1 i t t l e hope o f t h e e a r l y l o o s e n i n g o f these " t y i n g " c o n d i t i o n s , o r o f g r e a t e r " m u l t i l a t e r i z a t i o n " o f Canadian a i d , t h e most p r o m i s i n g d i r e c t i o n f o r Canada t o i n c r e a s e i t s d i r e c t a i d t o food p r o d u c t i o n seems t o be i n augmenting "programme" and " l i n e o f c r e d i t " a s s i s t a n c e t o those T h i r d World governments which themselves g i v e h i g h p r i o r i t y t o domest ic food p r o d u c t i o n and a r e prepared t o a l l o c a t e i n t e r n a l and e x t e r n a l resources a c c o r d i n g l y .

I n the a rea o f d i r e c t food a i d , which has i n r e c e n t y e a r s accounted f o r r o u g h l y 20 p e r c e n t o f t o t a l Canadian development ass is tance , doubts about t h e ba lan - ce o f b e n e f i t s between "donor" and " r e c i p i e n t " come i n t o sharpes t r e l i e f . A lmost a11 s t u d i e s o f donor behaviour i n food a i d have documented the predominance o f ' S u r p l u s d i s p o s a l " ove r "need" i n t h e d e t e r m i n a t i o n o f t h e types, l e v e l s and cond i - t i o n s o f food d i s t r i b u t i o n progranmes t o be mounted. F i g u r e 1 t races , f o r t h e 1970-77 p e r i o d , t h e pe rve rse r e l a t i o n s h i p between g l o b a l need, (as r e f l e c t e d i n r i s i n g foo8 p r i c e s ) , and food a i d s u p p l i e s by a1 1 "donors," i n c l u d i n g Canada.

I n genera l , f ood a i d i s one o f the i ssues o f c o n t r o v e r s y between a r t i c u l a t e d T h i r d Wor ld demands and t h e p r i o r i t i e s o f a l t e r n a t i v e , more s e l f - r e l i a n t development s t r a t e g i e s . Wh i le T h i r d World spokesmen have f a i r l y c o n s i s t e n t l y pressed f o r h i g h e r l e v e l s o f concess iona l food supp ly ( a l b e i t w i t h i m p o r t a n t p r o v i s o s such as much g r e a t e r use o f m u l t i l a t e r a l channe ls ) , more and more concern has been expressed about t h e p o t e n t i a l d i s i n c e n t i v e s o f food a i d t o ind igenous food p roduc t ion , and the pe r - p e t u a t i o n and r e i n f o r c e m e n t o f cash c r o p dependence i n deve lop ing c o u n t r i e s . Deve- l o p m e n t a l i s t s a r e thus moving t o de-emphasize ongoing food a i d a c t i v i t y , w h i l e under- l i n i n g t h e need f o r s t reng thened f o o d s e c u r i t y systems t o guard a g a i n s t t h e i n e v i - t a b l e c y c l i c a l and r e g i o n a l s h o r t f a l l s o f food supply . I n t h e c u r r e n t c o n t e x t , t h e k i n d s o f q u a n t i t a t i v e commitment sought by T h i r d World r e p r e s e n t a t i v e s can p robab ly s t i l l be j u s t i f i e d , b u t donors a r e i n t h e p o s i t i o n o f h a v i n g t o balance these imme- d i a t e supp ly needs a g a i n s t i n t e r n a t i o n a l p r o v i s i o n s f o r s e c u r i t y and i n c e n t i v e s f o r i nd igenous p r o d u c t i o n i n T h i r d World c o u n t r i e s .

Canada was w i d e l y applauded a t t h e t i m e o f t h e World Food Conference f o r i t s m u l t i - y e a r p ledge o f s p e c i f i c and s u b s t a n t i a l q u a n t i t i e s o f food a i d . Th is p ledge was g i v e n a t a t i m e when commercial s a l e s o p p o r t u n i t i e s were v e r y a t t r a c t i v e and when d o l l a r - l e v e l p ledges were b e i n g eroded by r i s i n g p r i c e s , so i t was seen as a v e r y f o r t h c o m i n g Canadian response t o t h e pe rce ived c r i s i s i n w o r l d food supp ly . I t i s no tewor thy t h a t v o l u n t a r y agencies o f t h e " T h i r d System" i n Canada had mounted a l a r g e - s c a l e and e f f e c t i v e l o b b y i n g campaign t o h e l p ach ieve t h i s r e s u l t .

S ince t h a t t ime , t h e pendulum o f o f f i c i a l and p u b l i c o p i n i o n has swung. A l though t h e cush ion o f w o r l d food reserves remains p e r i l o u s l y t h i n , t h e r e i s no sense o f c r i s i s and, i n s t e a d , a de te rm i n a t i o n e x i s t s t o a v o i d excess ive o r p e r e n n i a l dependence on food a i d . A f t e r commiss ioning a ma jo r i n t e r d e p a r t m e n t a l r e v i e w o f food a i d , t h e f e d e r a l Government has s t i l l been unab le t o a r r i v e a t a f i r m l o n g - t e r m approach b u t has e s t a b l i s h e d a new Cen t re w i t h i n t h e a i d agency t o m o n i t o r and p l a n these p ro - grammes. I t i s s i g n i f i c a n t t h a t when o v e r a l l cutbacks were imposed on CIDA i n mid- 1978, Canada's Food A i d Convent ion p ledge was an easy t a r g e t f o r r e d u c t i o n - from 750,000 t o 600,000 tonnes a n n u a l l y . The v o l u n t a r y s e c t o r has a l s o s h i f t e d substan- t i a l l y away f r o m suppor t o f food a i d . The s tance o f t h e i m p o r t a n t i n t e r - c h u r c h and Canadian Counc i l f o r I n t e r n a t i o n a l Coopera t ion c o a l i t i o n s t o t h i s fo rm o f a s s i s t a n c e i s now a lmos t u n i f o r m l y c r i t i c a l and h o s t i l e .

On t h e o t h e r s i d e o f t h e l e d g e r , i t has been r e v e a l e d t h a t t h e ves ted Canadian i n t e r e s t s i n f o o d a i d programmes a r e l e s s powerful than m i g h t be a n t i c i p a t e d . Farmers themselves a r e g e n e r a l l y n o t v igourous advocates, d e r i v i n g o n l y some two p e r c e n t o f t h e i r t o t a l income f rom f o o d a i d spending and b e i n g s e n s i t i v e , f rom t h e i r own e x p e r i - ence, t o t h e p o s s i b l e damage r e s u l t i n g from food i m p o r t s . Never the less , t r a d i t i o n a l s u p p o r t and p ressure f o r f o o d a i d i s k e p t a l i v e By fa rm o r g a n i z a t i o n s , p o l i t i c a l r e p r e s e n t a t i v e s , and m a r k e t i n g boards w i t h t h e i r advocacy u s u a l l y i n i n v e r s e p ropor - t i o n t o t h e h e a l t h and marke t p rospec ts o f t h e i r p a r t i c u l a r a g r i c u l t u r a l s e c t o r o r r e g i o n .

Figure 1

Food Aid: The Price Connection (cereals from all sources,' )

$US ,,on INTERNATIONAL WHEAT PRICES"

'excludes the Soviet Union lood aid loan of 2 million tons 01 wheat to India. 1973174. repayable in kind

.Â¥FO U S Gull. No 2 Hard Winter (Ord )

Source: North-South I n s t i t u t e , Canada North-South 1977-1978, vol. 4: World Food and the Canadian Breadbasket (Ottawa: The North-South I n s t i t u t e , 1978).

I f improved measures f o r g l o b a l food s e c u r i t y a r e seen a s an a p p r o p r i a t e way o f c o u n t e r i n g c y c l i c a l and r e g i o n a l food shor tages, and a v o i d i n g t h e dangers o f l ong- te rm dependence on food a i d , i t i s 1.n t h e n e g o t i a t i o n o f food s e c u r i t y p lans where Canada's v i t a l i n t e r e s t s as. a ma jo r food e x p o r t e r come most s t r o n g l y t o the fo re and i n t o c o n f l i c t w i t h t h e immediate goa ls o f t h e T h i r d World barga iners . I n t h e i n t e r n a t i o n a l wheat n e g o t i a t i o n s , Canada, as a producer , has been concerned w i t h m a i n t a i n i n g i t s commercial markets, p r i c e s and earn ings, w i t h o u t hav ing t o bear an excessive share o f s t a b i l i z a t i o n cos ts . L i k e the U.S. , t h e r e f o r e , Canada has d i f f e r e d w i t h i m p o r t e r s , i n c l u d i n g T h i r d World c o u n t r i e s , on t h e s i z e and p r i c i n g o f reserve s tocks and on c o s t - s h a r i n g and s p e c i a l d i spensa t ions f o r u n i l a t e r a l s t o c k i n g by T h i r d World c o u n t r i e s . The Canadian p o s i t i o n has been tough, and t a l k o f a "wheat c a r t e l " has been k e p t a l i v e as a t h r e a t i n t h e even t t h a t the m u l t i - l a t e r a l n e g o t i a t i o n s f a i l t o ach ieve s a t i s f a c t o r y r e s u l t s .

The i s s u e o f wheat reserve n e g o t i a t i o n s has r e c e i v e d very l i t t l e a t t e n t i o n f rom t h e v o l u n t a r y s e c t o r i n Canada, p robab ly because i t i s t o o complex t o engender widespread i n t e r e s t . Meanwhile, fa rm o r g a n i z a t i o n s , though n o t opposed t o reserves i n p r i n c i p l e , a r e ex t reme ly v i g i l a n t t o p r o t e c t t h e i r members' i n t e r e s t - they a r e e x t e n s i v e l y c o n s u l t e d b o t h i n Canada and, as observers, a t t h e a c t u a l n e g o t i a t i o n s .

One f i n a l area o f importance i n food and a g r i c u l t u r a l r e l a t i o n s i s t h a t o f T h i r d World food e x p o r t s t o Canada. The o v e r a l l i m p o r t f l o w o f processed foods and beverages, (which i s s t i l l l e s s than t h a t o f Canadian expor ts i n these c a t e g o r i e s t o t h e T h i r d World) i s governed by many o f t h e same c o n s i d e r a t i o n s a f f e c t i n g access f o r processed and manufactured goods more g e n e r a l l y . I t i s e s p e c i a l l y i n t e r e s t i n g , however, t h a t s p e c i a l s e c t o r a l and r e g i o n a l i n t e r e s t s , a l thoughnarrow, come s t r o n g l y i n t o p l a y t o o b s t r u c t access f o r such p roduc ts as f r u i t and vegetables, sugar and vegetable o i l s , and t h a t t h e d i f f u s e pressures o f consumers and developmental spo- kesmen a r e r a r e l y , i f ever , a match f o r them.

Trade i n Manufactures: The T h i r d World, Compet i tor and Customer

I t i s o n l y w i t h the emergence o f T h i r d World c o u n t r i e s as a f o r c e on t h e i n t e r - n a t i o n a l t r a d e scene i n r e c e n t years t h a t t h e i n e v i t a b i l i t y and powerfu l i m p l i c a t i o n s o f a new i n t e r n a t i o n a l economic o r d e r have begun t o be b rough t home t o t h o u g h t f u l Canadians. Some have so f a r seen o n l y t h e c o m p e t i t i v e impact o f " low c o s t " impor ts , m a i n l y f rom s e m i - i n d u s t r i a l i z e d c o u n t r i e s , on some o f the l a b o u r - i n t e n s i v e s e c t o r s and less-developed reg ions o f Canada. S t i l l o t h e r observers a r e s l o w l y coming t o recognize t h a t T h i r d World markets a r e o f s u b s t a n t i a l g l o b a l importance, e s p e c i a l l y f o r a trade-dependent n a t i o n w i t h o n l y a smal l assured market o f i t s own and a neigh- b o u r i n g super-power shaping much o f i t s economic system.

Taken toge ther , these t rends, and t h e need t o re-examine t r a d i t i o n a l Canadian t r a d e and i n d u s t r i a l p o l i c i e s should p r o v i d e t h e bas is f o r search ing d i s c u s s i o n o f T h i r d World-Canada t r a d e p rospec ts . So f a r , i n f a c t , t h e l i v e l y Canadian debate among advocates o f " c o n t i n e n t a l ism", " t e c h n o l o g i c a l sovere ign ty ", and " i m p o r t s u b s t i t u t i o n " s t r a t e g i e s has g iven o n l y i n c i d e n t a l a t t e n t i o n t o t h e a c t u a l and p o t e n t i a l impact o f T h i r d World c o u n t r i e s as compet i to rs and customers. These t r a d e r e l a t i o n s have thus u s u a l l y been l e f t i n t h e much more shor t - te rm framework o f i n d u s t r y - b y - i n d u s t r y problems o r as a subord ina te i s s u e i n t h e mu1 t i l a t e r a l t r a d e n e g o t i a t i o n s under t h e auspices o f GATT.

On the i m p o r t s i d e o f t h e t r a d e balance sheet, Canada's p r a c t i c e w i t h r e s p e c t t o T h i r d World e x p o r t e r s has been f a i r l y t y p i c a l o f t h e i n d u s t r i a l i z e d c o u n t r i e s . I n s p i t e o f e a r l y r e c o g n i t i o n o f t h e importance of t h e " t r a d e - n o t - a i d " measures i n t h e 1970 f o r e i g n p o l i c y rev iew, p rec ious l i t t l e progress has been made i n improv ing market access f o r T h i r d World c o u n t r i e s o r i n i t i a t i n g t h e i n d u s t r i a l r e s t r u c t u r i n g

which would make such improved access. p o l i t i c a l l y and s o c i a l l y accep tab le . Ins tead , Canada, 1 i ke o t h e r i n d u s t r i a l i z e d c o u n t r i e s , has c o n s i s t e n t l y r e s o r t e d t o t h e defen- s i v e p r o t e c t i o n i s t response, which, though i n v a r i a b l y presented as " temporary" o r t r a n s i t i o n a l " , i n f a c t tends t o become entrenched because t h e r e a r e n o t adequate c o n s t r u c t i v e ad jus tment measures a v a i l a b l e t o s u b s t i t u t e f o r t h i s p r o t e c t i o n .

For a v a r i e t y o f h i s t o r i c a l and o t h e r reasons, Canada's impor ts o f manufactured goods f rom T h i r d World c o u n t r i e s represen t a more modest share o f t o t a l impor ts (3 .4%) than they do i n the o t h e r ma jo r i n d u s t r i a l i z e d Western c o u n t r i e s . However, Canada's T h i r d World impor ts a r e more h e a v i l y concen t ra ted than t h e OECD average i n t r a d i t i o n a l l a b o u r - i n t e n s i v e consumer goods, w i t h t h e r e s u l t t h a t t h e impact o f t h i s c o m p e t i t i o n f a l l s most h e a v i l y on Canada's own l e a s t - f a v o u r e d reg ions , work fo rces and i n d u s t r i e s . Thus, i n t h e f i e l d o f t e x t i l e and c l o t h i n g t rade , a f t e r Canada had been r e l a t i v e l y r e s t r a i n e d i n a p p l y i n g i m p o r t c o n t r o l s over t h e f i r s t few y e a r s o f t h e M u l t i - F i b r e Arrangement (MFA), domestic c r i t i c i s m and concer ted p ressure f rom business and l a b o u r u l t i m a t e l y became i r r e s i s t a b l e and a much tougher l i n e was i n i - t i a t e d i n 1977.

The bar rage o f domestic c r i t i c i s m r e v e a l s a s t a r t l i n g and s i g n i f i c a n t gap between p r e v a i l i n g Canadian and f o r e i g n percep t ions o f t h e balance o f b e n e f i t s i n t r a d e r e l a t i o n s h i p s and p o l i c i e s . The general Canadian assumption has been t h a t t h i s c o u n t r y a lone has been p l a y i n g by t h e " r u l e s o f t h e game" and c a r r y i n g more than i t s share o f t h e "burden" o f l ow-cos t impor ts - c r i t i c s a t home r e f e r t o "boy-scout ism" and "na ive t6 " . Seasoned o u t s i d e observers, meanwhile, bemoan a new Canadian narrow- ness and r e t i c e n c e t o p r o v i d e m u l t i l a t e r a l l eadersh ip , w i t h one U.S. o f f i c i a l s t a - t i n g t h a t a Canadian p o s i t i o n i n t h e r e c e n t GATT t a l k s , ( w i t h p a r t i c u l a r l y adverse e f f e c t s on t h e T h i r d World) was " j u s t another example of how Canada r e f u s e s t o accep t the d o c t r i n e o f equal p a i n i n these n e g o t i a t i o n s . "

O v e r a l l , a d e t a i l e d examinat ion o f Canadian responses t o T h i r d World demands f o r improved t r a d e access and p r e f e r e n t i a l t rea tment r e v e a l s a r e c o r d n o t f a r removed f rom the OECD norm, a l though Canada's t r a d e regime has g e n e r a l l y r e t a i n e d unusua l l y h i g h t a r i f f "peaks" w h i l e r e l y i n g l e s s than most OECD c o u n t r i e s on n o n - t a r i f f b a r r i e r s .

As d i s t i n c t f rom t h e perce ived de fens ive Canadian i n t e r e s t i n " p r o t e c t i n g " t h e home market f rom T h i r d World products, t h e Canadian r e c o r d i n c a p t u r i n g a share o f growing T h i r d World markets i s markedly l e s s success fu l than o t h e r Nor thern expor te rs . The a n a l y s i s o f e v o l v i n g t r a d e f lows shows t h a t Canada's e x p o r t "basket" t o t h e T h i r d World tends t o be d i r e c t e d toward t h e s lowes t -g row ing markets and c h a r a c t e r i z e d by a p roduc t c o n c e n t r a t i o n i n qoods w i t h t h e s lowes t growth i n t rade . Whatever t h e rea- sons o r cures f o r t h e r e l a t i v e l y laggard Canadian performance i n t a k i n g up commer- c i a l o p p o r t u n i t i e s i n t h e T h i r d World, i t i s c l e a r t h a t so f a r t h i s l a c k o f " r e t u r n " s e r i o u s l y i n h i b i t s g r e a t e r responsiveness t o T h i r d World needs f o r i m p o r t access.

The i n p u t o f non-governmental groups i n t o Canadian t r a d e po l i c y i s c l e a r l y i n - f l u e n t i a l and w e l l - e s t a b l i s h e d , d a t i n g f rom t h e heavy r o l e p layed by t h e Canadian Manufac tu re rs ' A s s o c i a t i o n as e a r l y as 1879 i n e s t a b l i s h i n g t h e h i g h - t a r i f f "Na t iona l P o l i c y " which has s e t t h e b a s i s f o r Canadian t r a d e regimes ever s i n c e . One survey o f s i g n i f i c a n t Canadian c o r p o r a t i o n s revea led t h a t a t l e a s t h a l f a r e i n v o l v e d i n d i r e c t communications o r r e p r e s e n t a t i o n s a t t h e Federal l e v e l and 85% a r e represented th rough business o r t r a d e a s s o c i a t i o n s . Such c r o s s - s e c t o r a l ( " h o r i z o n t a l " ) and s e c t o r s p e c i f i c ( " v e r t i c a l " ) a s s o c i a t i o n s a r e seen t o possess most o f t h e p re - requ i - s i t e s f o r l ong- te rm success as i n t e r e s t groups: s o l i d memberships, fund ing and s t a f f i n g ; c o n t i n u i t y o f r e p r e s e n t a t i o n and con tac ts w i t h o f f i c i a l d o m ; and the a b i l i t y t o conduct low-key pub1 i c - r e l a t i o n s campaigns. Most o f t h e a s s o c i a t i o n s represen t b o t h t r a n s n a t i o n a l and sma l le r -sca le f i r m s , a l though a new grouping, t h e Canadian

Federa t ion o f Independent Business, i s prov i ,d ing e s p e c i a l l y v igourous r e p r e s e n t a t i o n t o the smal l bus iness s e c t o r , and t h e very l a r g e manufac tu r ing and resource f i rms tend t o m a i n t a i n an independent l o b b y i n g c a p a b i l i t y . Trade p o l i c y remains a major focus f o r many o f these o r g a n i z a t i o n s and i t is. c l e a r t h a t t h e d o m e s t i c a l l y - o r i e n - t e d (and p r o t e c t i o n i s t ) o r e x p o r t i n g groupslare much s t r o n g e r than those w i t h an e x p l i c i t and o rgan ized i n t e r e s t i n impor ts . This, c h a r a c t e r i s t i c , i n combinat ion w i t h s t r u c t u r a l p r o t e c t i v e b i a s s e s i'n Canada's t r a d e p o l i c y machinery, has had a pronounced impact i n l i m i t i n g access f o r T h i r d World impor ts .

Organized labour , i n Canada, rema in ing c o n s i s t e n t l y sympathet ic t o t h e broad o b j e c t i v e s o f t h e New I n t e r n a t i o n a l Economic Order, has i n c r e a s i n g l y r e s i s t e d t h e growth o f i m p o r t s i n s e n s i t i v e sec to rs , c i t i n g concerns f o r e q u i t a b l e burden- s h a r i n g " and i n t e r n a t i o n a l l a b o u r s tandards. The consumer i n t e r e s t i n impor t - access has been f a i r l y s t e a d i l y vo iced by i t s v o l u n t a r y s e c t o r r e p r e s e n t a t i v e s , b u t r a r e l y as a t o p - p r i o r i t y o r concer ted concern. F i n a l l y , t h e v o l u n t a r y agencies and o t h e r groups concerned w i t h educa t ion i n t h e "development c o m u n i t y " i n Canada have a s i g n i f i c a n t h i s t o r y i n r e l a t i o n t o t r a d e access issues. Some o f t h e groups were e n e r g e t i c and i m a g i n a t i v e i n response t o many o f t h e e a r l i e s t t r a d e demands vo iced through UNCTAD, and a measure o f research an imat ion and l o b b y i n g a c t i v i t i e s was s e t i n mot ion. However, f r u s t r a t e d by the d e a r t h o f progress, t r o u b l e d as t o the d i s t r i b u t i o n o f t r a d e b e n e f i t s i n poor c o u n t r i e s , and perhaps b locked by t h e com- p l e x i t y o f t h e i ssues and c o n f l i c t i n g i n t e r e s t s , t h e v o l u n t a r y s e c t o r has p a i d l e s s a t t e n t i o n t o t r a d e ques t ions i n r e c e n t years .

W i t h such complex webs o f v i t a l i n t e r e s t s and power fu l a c t o r s i n p lay , l i t t l e p rogress on improv ing t r a d e access f o r T h i r d World c o u n t r i e s i s l i k e l y i n Canada u n t i l an adequate s e t o f ad jus tment p o l i c i e s i s i n p l a c e t o ease t h e t r a n s i t i o n f o r t h e workforces, communit ies and f i r m s a f f e c t e d . Both because o f t h e i n e s c a p a b i l i t y o f c o m p e t i t i o n and t h e s p i r a l l i n g economic c o s t o f p r o t e c t i o n i s m and economic stag- na t ion , such comprehensive p o l i c i e s a r e beg inn ing t o be debated s e r i o u s l y i n Canada f o r t h e f i r s t t ime . By t h e same token i t i s c l e a r t h a t t h e r e q u i r e d change, a l ready r e t a r d e d f o r more than a decade, w i l l o n l y g r a d u a l l y b e g i n t o r i g h t t h e imbalances i n t h e accounts o f T h i r d World-Canada t r a d e .

Trade i n Commodities: Producer o r Consumer Focus?

Raw m a t e r i a l s i n t o t a l account f o r 51 percen t o f Canada's e x p o r t s , w i t h t h e e i g h t e e n o r i g i n a l commodit ies o f UNCTAD's i n t e g r a t e d programme be ing r e s p o n s i b l e f o r 6 .5 percen t o f t h e c o u n t r y ' s t o t a l e x p o r t r e c e i p t s . It would thus have been l o g i c a l t o a n t i c i p a t e e n t h u s i a s t i c Canadian p a r t i c i p a t i o n , o r a t t h e v e r y l e a s t l i v e l y i n t e r e s t , i n t h e T h i r d Wor ld ' s campaign o v e r r e c e n t years f o r a b e t t e r deal f o r commodity producers.

I n f a c t , w h i l e t h e non-governmental development community has promoted g r e a t e r general awareness and d i s c u s s i o n o f commodity t r a d e as t h e cen t re -p iece o f Nor th - South p o l i t i c a l ba rga in ing , t h e r e a l c h a r a c t e r o f i n d i v i d u a l commodity markets and Canadian i n t e r e s t i n them have remained t h e p reserve o f i n d u s t r y i n t e r e s t s and o f a ve ry narrow s e c t o r o f governmental and academic s p e c i a l i s t s . Major i ssues have a r i s e n o v e r t h e p a s t decade i n commodity markets o f v i t a l concern t o Canada, b u t no coheren t p o l i c y l i n k a g e s have emerged between t h e d i f f e r e n t s e c t o r s o f problems i n v o l v e d . Whi le b a r g a i n i n g hard f o r an i n t e r n a t i o n a l g r a i n s agreement, ( o r a p ro - ducer -on ly arrangement, i f necessary) , Canada s t i l l hangs back f rom a c t i v e coopera- t i o n o r in te rchange w i t h o t h e r copper producers, w h i l e t h e c o u n t r y ' s b a r g a i n i n g s t r e n g t h i n t h i s market erodes s t e a d i l y .

On t h e i s s u e s o f seabed min ing, Canada's i n f l u e n t i a l advocacy o f gradual r e - s o u r c e - e x p l o i t a t i o n has a l s o served t o p r o t e c t t h e p a r a l l e l i n t e r e s t s o f o t h e r land-based producers, p a r t i c u l a r l y those p roduc ing n i c k e l . A t t h e same t ime, t h e Canadian Government seems unwi 11 i n g t o accommodate ( o r even e f f e c t i v e l y a n t i c i p a t e ) s h i f t s o f t r a n s n a t i o n a l n i c k e l investment t o t h e T h i r d World, s h i f t s which have r e c e n t l y engendered growing f e a r and ser ious h o s t i l i t y i n the Canadian c o r n u n i t i e s and work fo rces a f f e c t e d .

As an i n d u s t r i a l n a t i o n , Canada undoubtedly shares t h e l e g i t i m a t e concerns o f o t h e r consumer-nations i n i n t e r n a t i o n a l commodity n e g o t i a t i o n s , b u t has been u n w i l l i n g t o d i s t i n g u i s h enough between such l e g i t i m a t e concerns and f e e b l e ideo- l o g i c a l r e s i s t a n c e t o change. I n areas o t h e r than g r a i n s t rade , Canadian spokes- men a r e s t i l l c o n t e n t t o engage i n " f r e e marke t " r h e t o r i c , which t h e r e a l predomi- nance o f i n t r a - f i r m and o l i g o p o l i s t i c t r a d e has l o n g ago i n v a l i d a t e d . Concern con t inues t o be focussed on such i ssues as growing T h i r d World compet i t i on f o r Canadian processors of commodity impor ts , a l though ser ious a n a l y s i s demonstrates t h a t adjustment i n these areas would be a r e l a t i v e l y m inor problem.

I t seems c l e a r t h a t t h e con fus ion and i n c o n s i s t e n c y i n Canadian p o s i t i o n s i s h e a v i l y i n f l u e n c e d by t h e c o u n t r y ' s i n t i m a t e o v e r a l l economic t i e s w i t h t h e p r i n c i - p a l consumer-nations, and t h e dominant p o s i t i o n o f consumer-country t r a n s n a t i o n a l f i r m s i n t h e sec to rs i n v o l v e d . Fore ign c o n t r o l l e d e n t e r p r i s e s , f o r example, i n 1972 accounted f o r 20.5% o f shipments f rom Canadian n i c k e l and copper mines, and f o r 79% o f those f rom i r o n - o r e mines, ano ther f i e l d where c l o s e r T h i r d World-Canada coopera t ion has been s t r o n g l y advocated by some. Even where d i r e c t i n d u s t r y owner- s h i p o f commodity f i r m s does n o t i n j e c t f o r e i g n p r i o r i t i e s i n t o Canadian d e c i s i o n - making, Canadian a t t i t u d e s and n e g o t i a t i n g p o s i t i o n s a r e i n e v i t a b l y shaped by the t i g h t l y - w o v e n web o f cross-border r e l a t i o n s h i p s between commodity-consuming indus- t r i e s . Wi th 50% o f Canadian manufac tu r ing i n d u s t r y b e i n g f o r e i g n -owned, (and, perhaps, e s p e c i a l l y v u l n e r a b l e t o d i s l o c a t i o n s and h e a d - o f f i c e d e c i s i o n s ) i t should come as no s u r p r i s e t h a t t h e responses o f Canadian business and l a b o u r t o commodity agreements, g r e a t e r T h i r d World processing, e tc . , a r e o f t e n i n d i s t i n g u i s h a b l e f rom those of t h e i r c o u n t e r p a r t s i n o t h e r Nor thern c o u n t r i e s .

The T h i r d W o r l d ' s concer ted advocacy o f an " I n t e g r a t e d Programme f o r Commodi- t i e s " and t h e "Common Fund" has n o t y e t been s u f f i c i e n t t o b r i n g about any l a r g e s c a l e r e - t h i n k i n g o f Canadian and g l o b a l i n t e r e s t s i n commodity t rade, n o r t h e emergence o f any sus ta ined " T h i r d System" lobby w i t h i n Canada. However, i n combi- n a t i o n w i t h r i s i n g T h i r d World compet i t i on , t h e i n t e r n a t i o n a l d i scuss ions have s l o w l y made t h e Government more aware o f t h e Canadian stakes and moved t h e Federal Cab ine t t o demand f rom o f f i c i a l s a t l e a s t a coherent s tatement o f Canadian commodi- t y p o l i c y . Meanwhile, t h e amount o f s tudy devoted t o these i ssues o u t s i d e govern- ment has a l s o inc reased s u b s t a n t i a l l y , and can be expected t o e x e r t more p ressure as c o m p e t i t i v e problems deepen.

Science and Technology f o r Development: Beyond "T rans fe r "

As a c o u n t r y w i t h r e l a t i v e l y weak indigenous s c i e n t i f i c and t e c h n o l o g i c a l capa- b i l i t i e s , h e a v i l y r e l i a n t on impor ted technology, s k i l l s and know-how f o r i n d u s t r i a l growth, Canada has i n r e c e n t years been i n v o l v e d i n a l i v e l y debate about t h e use o f sc ience and technology f o r i t s own development. Technology has been descr ibed by t h e Science Counci l o f Canada as " the weakest l i n k " i n Canadian manufac tu r ing and i n d u s t r i a l prospects, a s p e c i a l Committee o f t h e Senate has s t u d i e d t h e i s s u e exten- s i v e l y th roughou t t h e decade, and i t was t h e focus o f a heated conference of t h e Federal and P r o v i n c i a l Governments i n l a t e 1978.

Whi le t h e r e a r e t h e r e f o r e c e r t a i n p a r a l l e l s between t h e Canadian s i t u a t i o n and t h a t o f many T h i r d World c o u n t r i e s , these s i m i l a r i t i e s have very r a r e l y been t r a n s l a t e d i n t o common percep t ions o r p o s i t i o n s i n i n t e r n a t i o n a l d i scuss ions . Furthermore, as a s u b s t a n t i a l n e t i m p o r t e r o f sc ience and technology i t s e l f , Canada has been o n l y a r e l a t i v e l y marg ina l f a c t o r i n t h e o v e r a l l f l ows o f North-South technology t r a d e and t r a n s f e r .

A c l e a r s t r e n g t h o f Canadian performance i n t h e p a s t decade has been t h e es ta - b l ishment and maintenance o f t h e I n t e r n a t i o n a l Development Research Centre (IDRC) as an i n t e r n a t i o n a l l y - d i r e c t e d body which p l a c e s p r imary emphasis on t h e development o f ind igenous research c a p a b i l i t i e s i n T h i r d World c o u n t r i e s t o p e r m i t them t o g rapp le w i t h t h e i r own development problems. The Cent re ' s a c t i v i t i e s extend t o b o t h t h e n a t u r a l and s o c i a l sc iences w i t h p a r t i c u l a r emphasis t o d a t e on a g r i c u l t u - r a l and r u r a l development problems. Wi th an annual budget o f $40 m i l l i o n , added t o Canada's r e l a t i v e l y generous support o f the i n t e r n a t i o n a l a g r i c u l t u r a l research c e n t r e s and o t h e r m u l t i l a t e r a l i n i t i a t i v e s , Canada emerges as one o f t h e s t r o n g e s t suppor te rs o f research i n r e l a t i o n t o i t s t o t a l development coopera t ion spending. Perverse ly , however, t h e p i o n e e r i n g ven tu re o f IDRC may have c r e a t e d some d i f f i c u l t y i n i n t e g r a t i n g e s s e n t i a l research and development components i n t o CIDA's programmes and p r o j e c t s . There seems t o be some tendency t o assume t h a t development r e l a t e d research i s a s p e c i a l i z e d and segregated a c t i v i t y b e i n g we l l -hand led by t h e exper ts . Such an assumption i s , o f course, a l i e n t o t h e h o l i s t i c , i n t e g r a t i v e and "appropr ia- t e " approach t o sc ience and technology which recognizes t h a t , t o serve development, s c i e n t i f i c and t e c h n o l o g i c a l c a p a b i l i t i e s must take f i r m r o o t i n t h e c o u n t r y concer- ned, and be thorough ly l i n k e d t o t h e needs and c a p a c i t i e s o f i t s people. The r e - i n t e g r a t i o n of development research and development coopera t ion i s a cha l lenge o f t h e f i r s t p r i o r i t y as Canada examines i t s p o s i t i o n f o r t h e UN Conference on Science and Techno1 ogy f o r Development.

Between t h e sc ience and development communit ies a s i m i l a r segrega t ion p e r s i s t s , r e f l e c t i n g f a i t h f u l l y t h e c o n t i n u i n g " m y s t i f i c a t i o n " o f sc ience and technology i n Canada's own c u l t u r e . Al though a few v o l u n t a r y groups a r e a c t i v e l y engaged i n pro- mot ing o r s u p p o r t i n g "appropr ia te techno logy" w i t h domestic and f o r e i g n a p p l i c a t i o n s , t h e r e i s o n l y a ve ry l i m i t e d t o t a l c a p a c i t y i n t h e v o l u n t a r y and s c i e n t i f i c - p r o f e s - s i o n a l sec to rs t o concep tua l i ze o r i n f l u e n c e n a t i o n a l approaches t o sc ience and technology f o r development.

Beyond t h e e x p l i c i t i ns t ruments o f technology t r a n s f e r i b r development, i t must be recogn ized t h a t Canada i s on balance a smal l commercial e x p o r t e r o f technology t o T h i r d World c o u n t r i e s . Wi th r e s p e c t t o T h i r d World n e g o t i a t i n g o b j e c t i v e s i n areas such as t h e code o f conduct and p a t e n t reform, t h e Canadian p o s i t i o n has tended t o be pass ive and ambivalent p robab ly r e f l e c t i n g a comb ina t ion o f t h i s smal l North-South s u r p l u s f o r Canada o r t h e c h a r a c t e r i s t i c shared ethos o f t h e dominant technol-ogical powers.

I f one i n c l u d e s i n t h e accoun t ing of South-North f l ows t h e " reverse t r a n s f e r o f techno logy" represen ted by t h e " b r a i n d r a i n " f rom T h i r d World c o u n t r i e s , then Canada i s r e v e a l e d t o be a major n e t b e n e f i c i a r y . UNCTAD has c a l c u l a t e d t h a t Canada, t h e t h i r d l a r g e s t r e c i p i e n t o f s k i l l e d T h i r d World immigrants, gained an imputed c a p i t a l va lue o f $11.5 b i l l i o n i n t h e p e r i o d 1963 t o 1972. I f t h i s i s weighed a g a i n s t t h e t o t a l o f o f f i c i a l development a s s i s t a n c e d isbursed d u r i n g t h e p e r i o d , t h e " b r a i n d r a i n " p r o v i d e d a t l e a s t a crude n e t b e n e f i t o f $9.2 b i l l i o n t o Canada. The impact o f t h e " reverse t r a n s f e r o f technolgoy" has, o f course, never been viewed i n these terms i n Canada, a l though t h e steady inc rease o f " t h i r d c o u n t r y t r a i n i n g " has been designed t o h e l p stem t h e f l o w . A t t h e same t ime t h e Canadian " T h i r d System", i n p a r t i c u l a r , i s cha l lenged t o dev ise and advocate balanced

n a t i o n a l p o l i c i e s when narrow and d i s c r i m i n a t o r y p r a c t i c e s such as t h e s e t t i n g o f d i f f e r e n t i a l fees f o r f o r e i g n s tuden ts a r e spreading through severa l p rov inces .

Monetary I ssues and Debt: The Bankers' Balance Sheet

I n t h e n ine teen sevent ies, w i t h s p i r a l l i n g payments problems, t r i g g e r e d by commodity and o i l p r i c e increases and recess ionary slumps i n earn ing o p p o r t u n i - t i e s , t h e monetary and deb t problems o f T h i r d World c o u n t r i e s have p e r i o d i c a l l y come t o the f o r e f r o n t o f i n t e r n a t i o n a l d i s c u s s i o n . However, i n t e r n a t i o n a l mone- t a r y r e l a t i o n s , banking and deb t c o n t i n u e t o be ex t reme ly complex and arcane i ssues , and the r o l e o f these l i n k s i n T h i r d World-Canada r e l a t i o n s i s n o t w i d e l y under- s tood.

The deb t r e l i e f i s s u e o f r e c e n t years has been one where r e a l d i f f e r e n c e s o f i n t e r e s t emerged e a r l y among d i f f e r e n t groups o f T h i r d Idor ld c o u n t r i e s , w i t h im- p o r t a n t impacts on t h e n e g o t i a t i n g responses o f Nor thern c o u n t r i e s . As t h e home- base o f a s u b s t a n t i a l i n t e r n a t i o n a l banking community, Canadian p o l i c y w i t h r e s p e c t t o commercial deb t has always been i n f l u e n c e d by t h e d e t e r m i n a t i o n o f p r i v a t e bank- e r s p u b l i c l y t o s tand by t h e i n v i o l a b i l i t y o f o u t s t a n d i n g o b l i g a t i o n s or , i n t h e face o f unavoidable d e f a u l t , t o n e g o t i a t e terms o f reschedu l ing i n p r i v a t e . I n f a c t , t h i s k i n d o f approach t o t h e h a n d l i n g o f commercial deb t problems, w i t h some m o d i f i c a t i o n s , has b a s i c a l l y s a t i s f i e d most o f those T h i r d World c o u n t r i e s w i t h a s i g n i f i c a n t commercial deb t concern s ince they f e e l a c o n t i n u i n q stake i n com- m e r c i a l c r e d i t wor th iness . Wi th Canadian bank h o l d i n g s o f T h i r d World deb t rough ly es t imated ( i n mid-1978) t o be a t l e a s t $3 b i l l ion, and w i t h t h e e x i s t e n c e o f an e x t e n s i v e web o f Canadian banking opera t ions i n T h i r d World c o u n t r i e s , i t i s n o t s u r p r i s i n g t h a t t h e Department o f Finance, t h e l e a d department i n these areas, remains c o n s e r v a t i v e and u n l i k e l y t o welcome any s u b s t a n t i a l change i n t h e l a i s s e z f a i r e approach t o commercial deb t problems.

The Canadian Government has, however, been i n v o l v e d i n t h e v a r i o u s " c l u b s " o rgan ized t o n e g o t i a t e t h e terms o f o f f i c i a l o u t s t a n d i n g deb t o f s e l e c t e d T h i r d World c o u n t r i e s . I n these ins tances , Finance o f f i c i a l s and t h e o t h e r c r e d i t o r agencies represented, a r e s a i d n o t t o c o n s u l t ex an te w i t h Canadian c o m e r c i a 1 c r e d i t o r s s i n c e t h e r e i s cons idered t o be some element o f c o m p e t i t i o n i n s e c u r i n g t h e most s a t i s f a c t o r y terms f o r reschedu l ing .

For no c l e a r reason, t h e same broad l i n e s o f approach a p p l i e d t o commercial and non-a id - re la ted deb t r e l i e f a l s o seem t o have been t y p i c a l o f the responses t o e a r l y c a l l s f o r g e n e r a l i z e d r e l i e f o f t h e poores t c o u n t r i e s ' a i d debts. Only a f t e r cons iderab le in te rdepar tmenta l pressure, and i n p u t s f rom p a r l i a m e n t and o u t s i d e researchers, was t h e Government f i n a l l y w i l l i n g t o countenance the cancel - l a t i o n o f the l i m i t e d a i d - r e l a t e d debts o f t h e poores t c o u n t r i e s , i n t h e f i n a l s tages o f t h e P a r i s Conference on I n t e r n a t i o n a l Economic Cooperation, when p o s i t i - ve i n i t i a t i v e s were b a d l y needed. Because o f t h e r e l a t i v e g e n e r o s i t y o f Canada's a i d l e n d i n g terms, t h i s p a r t i c u l a r problem was n o t a ma jo r one and i s u n l i k e l y ever t o recur .

T r a d i t i o n a l l y , Canada has e x e r c i s e d an i n f l u e n c e i n i n t e r n a t i o n a l monetary a f f a i r s o u t o f p r o p o r t i o n t o i t s s t r i c t s take i n these g l o b a l i ssues . The c o u n t r y a l s o shares some i m p o r t a n t o b j e c t i v e s w i t h t h e T h i r d World i n monetary re fo rm, such as t h e replacement of g o l d and o t h e r reserve c u r r e n c i e s by t h e SDR as t h e ma jo r i n t e r n a t i o n a l numerai re and reserve asset ; t h e enhancement o f IMF l e n d i n g f a c i l i t i e s ; and t h e enactment o f s p e c i a l measures t o improve f a c i l i t i e s and repre - s e n t a t i o n f o r T h i r d World c o u n t r i e s . On o t h e r i ssues , however, t h e Canadian p o s i - t i o n has tended t o r e s i s t T h i r d World demands: Canadian p o l i c y favours f l e x i b l e

exchange-rates f o r the ma jo r c u r r e n c i e s ; Canada remains s k e p t i c a l abou t t h e SDR-aid " l i n k " and adheres t o a v e r y r i g i d p e r c e p t i o n o f t h e IMF as a p r o v i d e r o f ba lance o f payments ass is tance a lone. Wi th Government e x p e r t i s e and i n f l u e n c e l o c a l i z e d i n t h e Department o f F inance and t h e Bank o f Canada, and non-governmental i n p u t t o da te r e s t r i c t e d t o f a i r l y narrow concerns o f t h e p r i v a t e banks, t h e need f o r expanded T h i r d System s tudy and debate i s a p r e s s i n g one.

Concessional Development Ass is tance

I n t e r n a t i o n a l development ass is tance , o r " f o r e i g n a i d " c o n t i n u e s t o r e c e i v e a d i s p r o p o r t i o n a t e l y l a r g e share o f Canadian a t t e n t i o n and o p i n i o n on T h i r d World- Canada r e l a t i o n s , and t o be m i s t a k e n l y viewed as a p u r e l y one-way f l o w o f resources, p r o v i d i n g " b e n e f i t s " t o " r e c i p i e n t s " th rough " s a c r i f i c e s " on t h e p a r t o f "donors" . G r a d u a l l y t h e more complex balance o f a c t u a l b e n e f i t s i n t h e a i d r e l a t i o n s h i p has emerged more c l e a r l y , th rough a number o f q u a n t i t a t i v e and q u a l i t a t i v e measures, r e f l e c t i n g b o t h T h i r d World needs and demands and t h e accepted exper ience o f t h e donor group and t h e i n t e r n a t i o n a l community.

Even i f " a i d " i s s u b s t a n t i a l l y l e s s i m p o r t a n t than o t h e r r e l a t i o n s h i p s , f o r a c o u n t r y l i k e Canada, i t i s s t i l l t h e most i m p o r t a n t i n s t r u m e n t e x p l i c i t l y concerned w i t h p romot ing o r s u p p o r t i n g development i n t h e T h i r d World. Fundamental s h i f t s i n the Canadian approach t o the q u a n t i t y o r q u a l i t y o f " a i d " may t h e r e f o r e s i g n a l v i t a l t r e n d s i n T h i r d World-Canada r e l a t i o n s g e n e r a l l y .

The volume o f Canadian a i d e x p e n d i t u r e over t h e p a s t f i f t e e n y e a r s has a lmos t doubled as a p r o p o r t i o n o f Canadian GNP, b u t t h e e f f o r t , and o f f i c i a l commitment have waxed and waned c o n s t a n t l y ove r t h i s p e r i o d . Wh i le never b i n d i n g i t s e l f t o reach by a s p e c i f i c y e a r t h e Pearson Commission's t a r g e t o f .7% o f GNP, t h e Canadian Government has been u n e q u i v o c a l l y p ledged t o move s t e a d i l y toward i t . I t seems c l e a r t h a t t h e p r e s e n t p r e c i p i t o u s s l i d e i n a l l o c a t i o n s c o u l d l e a d t o the unspoken aban- donment o f t h a t goa l . The development a s s i s t a n c e programme i s now seen as a ma jo r government e x p e n d i t u r e whose e f f e c t i v e n e s s i s s u b j e c t t o q u e s t i o n by every s e c t o r o f o p i n i o n , i n c l u d i n g t h e commi t t e d "development community. "

The v o l u n t a r y agencies i n t h e development f i e l d , the c o r e o f a n a t i o n a l "deve- lopment c o n s t i t u e n c y " , have n o t been a p o t e n t f o r c e i n d e t e r m i n i n g t h e o v e r a l l volume o f o f f i c i a l a i d i n r e c e n t years . P reoccupa t ion w i t h t h e i r own programmes (supplemented by government fund ing ) , doubts abou t t h e a c t u a l b e n e f i t s o f o f f i c i a l a i d and t h e f i e r c e l y i n d i v i d u a l i s t i c c h a r a c t e r o f t h e vo lun ta ry -agency community, have a l l impeded concer ted p o l i c y a c t i o n and have l e f t t h e key i n f l u e n c e on a i d b u d g e t - s e t t i n g t o o f f i c i a l s and m i n i s t e r s , w i t h l i t t l e i n p u t f rom non-governmental groups.

L i k e o t h e r s , even some o f t h e v o l u n t a r y agencies have been tempted t o v iew the i n c r e a s e d " q u a n t i t y " and improved " q u a l i t y " o f Canadian a i d as a l t e r n a t i v e s r a t h e r than as compat ib le and complementary o b j e c t i v e s . I n a p e r i o d o f a u s t e r i t y , o f course, such an " e i t h e r - o r " assumpt ion can be f a t a l f o r an a i d budget compet ing w i t h o t h e r government and s o c i a l p r i o r i t i e s .

On t h e t r a d i t i o n a l " q u a n t i t a t i v e " y a r d s t i c k s o f a i d performance, t h e Canadian r e c o r d has been b e t t e r than t h e donor average, b u t t h e r e a r e now s t r o n g i n d i c a t i o n s t h a t p o l i c y c o u l d s h i f t t o a t tempts t o e x t r a c t g r e a t e r s h o r t - t e r m b e n e f i t s f o r Canada, S p e c i f i c a l l y , t h e movement t o g i v e p r i o r i t y t o t h e b a s i c needs o f t h e p o o r e s t groups and c o u n t r i e s c o u l d be slowed, o r p a r t i a l l y reve rsed , t o g i v e g r e a t e r a t t e n t i o n t o t h e middle- income c o u n t r i e s cons ide red t o be o f much g r e a t e r commercial i n t e r e s t t o Canada. I n l i n e w i t h such a s h i f t , even t h e f i n a n c i a l terms o f Canadian

a i d , which have been m a i n l y "near -g ran t " s o f t l oans , w u l d be t i g h t e n e d up f o r these more commercial purposes. Wi th p ressures t o add o r r e t a i n "middle- incorneMreci - p i e n t s , a d d i t i o n a l o b s t a c l e s a r e p laced i n the way o f t h e e s s e n t i a l c o n c e n t r a t i o n o f Canadian a i d e f f o r t , a l r e a d y d ispersed o v e r an unmanageably l a r g e number o f c o u n t r i e s . The b e n e f i t s which c o u l d be reaped f rom c o n c e n t r a t i o n , w i t h i nc reased f i e l d c a p a b i l i t y , would l i e i n improved e f f e c t i v e n e s s and g r e a t e r c o o p e r a t i o n w i t h s e l e c t e d governments which a r e themselves commit ted t o more j u s t development p a t t e r n s .

U n f o r t u n a t e l y , ano ther Canadian i n t e r e s t i n g r e a t e r c o n c e n t r a t i o n o f a i d has begun t o emerge i n r e c e n t d i s c u s s i o n . Fo r t h e f i r s t t ime, t h e r e i s some o f f i c i a l sen t imen t , ( r e f l e c t e d p u b l i c l y i n work o f t h e Economic Counci l o f Canada), t h a t Canadian a i d can and shou ld be used c o n s i s t e n t l y t o e x e r t p o l i t i c a l " l eve rage" o v e r r e c i p i e n t s . Wh i le n o t unknown i n p a s t Canadian programmes,(and now p a r t l y m o t i v a t e d by a d e s i r e t o promote t h e observance o f human r i g h t s ) , some o f t h i s new p o l i t i c a l i n t e r e s t i n a i d seems t o s i g n a l t h e access ion t o " g r e a t power" s t a t u s and va lues i n t h e a i d f i e l d . I t seems t o a im a t a s h i f t i n t h e p o l i t i c a l b e n e f i t s o f a i d t o Canada f rom those o f l ong- te rm g o o d - w i l l and i n t e r n a t i o n a l c o o p e r a t i o n t o a much more immediate focus on usab le " c r e d i t s " i n Canada's p o l i t i c a l and commercial accounts w i t h deve lop ing c o u n t r i e s .

T h i s same growing concern f o r a ba lance-shee t " r e t u r n " on a i d i s a l s o e v i d e n t i n two o t h e r areas: t h e c o n t i n u i n g i n s i s t e n c e on t h e " t y i n g " o f a i d t o Canadian goods and s e r v i c e s , and new p ressures t o reduce t h e share o f Canadian a i d d i r e c t e d t o m u l t i l a t e r a l agencies and programnes. I n t h e case o f t h e " c o u n t r y - t y i n g " o f a i d , where Canada ranks as a l a g g a r d n i n t h among t h e Western donors i n t h e q u a l i t y o f i t s e f f o r t s , i t i s no tewor thy t h a t p o l i c y can be s t e e r e d by t h e most s h o r t - t e r m b e n e f i t s (even w i t h d i s p r o p o r t i o n a t e l y h i g h i n d i r e c t c o s t s ) o r i n f a c t by d i sp roved b u t i n - g r a i n e d popu la r assumptions about b e n e f i t s . The most g l a r i n g problem here i s Canada's r e f u s a l so f a r t o " u n t i e " i t s a i d f o r T h i r d World c o u n t r i e s o t h e r than t h e r e c i p i e n t t o b i d on p r o j e c t s under the Canadian b i l a t e r a l programme. A f t e r p l e d g i n g t o do so " i m n e d i a t e l y " i n i t s 1975 S t r a t e g y f o r I n t e r n a t i o n a l Development Cooperat ion t h e Government has s t e a d i l v backed awav f rom even t h i s modest l i b e r a l i z a t i o n under a c t i v e p ressure f rom a l i m i t e d bus iness lobby . The success o f t h i s campaign i n o b s t r u c t i n g a f i r m government commi tment, (even w h i l e ev idence has emerged s t e a d i l y on t h e h i g h c o s t s o f t y i n g t o r e c i p i e n t s and i t s v e r y l i m i t e d and s h o r t - t e r m econo- m i c b e n e f i t s t o ~ a n a d a 2 ) , i s ev idence o f t h e power o f even a poor ly-armed business l o b b y i n t imes o f domest ic economic a u s t e r i t y . Meanwhile, t h e t y i n g approach seems more and more t o i n t e r f e r e w i t h t h e imp lementa t ion o f t h e s u b s t a n t i v e S t r a t e g y , which emphasizes "bas ic needs" and g r a s s r o o t s a c t i v i t i e s f o r which Canadian goods and s e r v i c e s may o f t e n p rove i n a p p r o p r i a t e o r o v e r p r i c e d . The r e f u s a l t o u n t i e f o r T h i r d Wor ld procurement i s a l s o embarassing ev idence o f u n w i l l i n g n e s s t o use even a v a i l a b l e i n s t r u m e n t s t o promote t h e development o f p r o d u c t i o n and t r a d e w i t h i n t h e T h i r d World i t s e l f .

The new i n t e r e s t i n r e d u c i n g t h e m u l t i l a t e r a l share o f Canadian a i d i s g e n e r a l l y l i n k e d t o t h e concern f o r b o t h economic and p o l i t i c a l r e t u r n s f rom a i d expend i tu res . I n t h e pas t , Canada has c o n s i s t e n t l y been one o f t h e ma ins tays o f s u p p o r t f o r m u l t i - l a t e r a l a i d e f f o r t s and a s i g n i f i c a n t i n f l u e n c e among donors f o r growing c o n t r i b u - t i o n s w i t h minimum s t r i n g s a t tached . Even w i t h o u t t h e impac t o f cutbacks i n t h e a i d budget , t h e o p p o s i t i o n o f ~ b u s i n e s s c r i t i c s , ( a g a i n s t t h i s fo rm o f " u n t i e d " a i d ) , and " in f l uence1 ' -m inded f o r e i g n p o l i c y p lanners was a l r e a d y p r e s s i n g f o r some r e d u c t i o n i n t h e mu1 t i l a t e r a l share. Canada ach ieved t h e Pearson Commission's recommended minimum m u l t i l a t e r a l c o n t r i b u t i o n o f 30 p e r c e n t e a r l y i n t h e n ine teen-seven t ies and reached a l e v e l o f h a l f Canada's t o t a l a i d d isbursements i n 1977, an e x c e p t i o n a l y e a r f o r severa l reasons. Wi th t h e v e r y l i m i t e d success o f Canadian s u p p l i e r s i n

procurement under these programmes ( i n r e l a t i o n t o Canadian c o n t r i b u t i o n s ) and t h e r e c o g n i t i o n t h a t Canada's i n f l u e n c e over t h e i r d i r e c t i o n was sma l l , such pressure was p r e d i c t a b l e . However, i n a s i t u a t i o n where t h e a i d agency must undergo harsh, general cutbacks, and where b i l a t e r a l , v o l u n t a r y agencies and i n d u s t r i a l coopera- t i o n programme a11 have r e l a t i v e l y w e l l - e s t a b l i s h e d c o n s t i t u e n c i e s , i n s i d e and o u t s i d e bureaucracy, f i g h t i n g t o p reserve t h e i r share o f t h e budget, m u l t i l a t e r a l programnes a r e u n i q u e l y and dangerously exposed. The e f f e c t i v e n e s s o f m u l t i l a t e - r a l development programmes i n general i s by no means e s t a b l i s h e d i n t h e p u b l i c mind, and i n some i m p o r t a n t c i r c l e s t h e r e i s an undocumented assumption t h a t they a r e n e c e s s a r i l y more bureaucra t i zed than a r e d i r e c t b i l a t e r a l schemes. As i n t h e case o f U.N. peacekeeping a c t i v i t i e s and i n t e r n a t i o n a l t r a d e n e g o t i a t i o n s , mu1 t i l a t e r a l a i d o b l i g a t i o n s w i l l now t e s t t h e depth and d e s i r a b i l i t y o f Canada's post-war commitment t o mu1 t i l a t e r a l cooperat ion. The fo r thcoming S i x t h Replenishment of t h e I n t e r n a t i o n a l Development A s s o c i a t i o n ( I D A ) , t h e " s o f t - l o a n " window o f t h e World Bank, w i l l be a key and i n f l u e n t i a l b e l l - w e t h e r o f Canadian d i r e c t i o n s .

15

Footnotes

The Canadian I m p o r t e r s ' Assoc ia t ion , f o r example, i s somewhat d e r i s i v e l y r e f e r r e d t o by many i n t h e business community as t h e " f o r e i q n manu fac tu re rs ' a s s o c i a t i o n " . The r e t a i l s e c t o r , a huge employer w i t h a s t r o n g i n t e r e s t i n i m p o r t a v a i l a b i l - i t y h a s s t i l l n o t achieved commensurate i n f l u e n c e on these ques t ions .

2 S ince 1975, i n f a c t , s e r i o u s s t u d i e s have been c a r r i e d ou t , w i t h i n government and elsewhere, b u t t h e i r r e s u l t s have been downplayed o r concealed by government. Media and p u b l i c a t t e n t i o n have a l s o i n c r e a s i n g l y focussed on the n e g a t i v e impac t o f t y i n g .

BALANCE DE L A S RELACIONES CANADA - TERCER MUNDO: UN ANALISIS S U C I N T O Y P R I O R I D A D E S PARA L A A C C I ~ N * ~

Resumen: Este balance de las relaeiones eeonbmieas entre e l Canada y e l Tereer Mundo es un andl is is franco de las inversiones direetas del Canada en 20s paises del Tereer Mundo ("El Desafio de las Transnaeionales") en materia de al-imentas-iCm, ayuda (inoluyendo la ayuda bajo eondieiones de preferencia) teenolog-ia, eomereio de pro- duetos manufaeturados y matem'as primas. El an~?'iisis t ra ta t m b i e n euestiones monetca-ias y financieras. Se eonfirma que e l Canad& tal eomo otros parses ¥indus tr ia l isados , se eneuentra escindido entre, pop un lado su voluntad de eonserwar e l s ta tus quo global, con 20s desequilibrios eada wez rmyores generados por e s t e y los obstdeulos a1 desarrollo que d l area, y por o t ro lado un deseo de eon- t r i b u i r a la reorganizaci6n en forma mds equitativa y fundamental de sus reZueiones con e l Tereer Mundo. Sobretodo se enfoea 'La auseneia de un ana l i s i s de eonjunto y de una poiz t iea de desarrollo y se i n s i s t s sobre e l papel del Terser Sistema en la f o m l a c i 6 n de altemat-ivas

*/ Ejemplares del trabajo completo y de sus anexos pueden pedirse a2 I n s t i t u t e - North-South.

RELATIONS ECONOMIQUES S U I S S E - T I E R S MONDE : B I L A N , P E R S P E C T I V E S , P R O P O S I T I O N S D E CHANGEMENT par Philippe Berberat et Hilmar Stetter Institut Universitaire dlEtudes du 06veloppement 24, rue Rothschild 1202 Gensve, Suisse

Langue originale : Francais

Resume: Cet a r t i c l e deerit l e s principales caracteristiques de lr6conomie suisse, see ramifications Internationales en termes industr ie ls , financiers e t d ' invis ibles e t montre drimportants facteurs drinterdependance avec l e Tiers Monde. Les auteurs examinent l e s perspectives de I'6conomie heZv&tique e t sugg6rent l e s elements drun scenario a l t e rna t i f de developpernent dconomique du pays.

U s pensent que Lreconmie suisse e s t ter t iar isee , sureoncentr~e, hautement trans- nationalisee, q u ' i l sragisse de l ' industr ie , de l a banque ou des assurances, ee qui accro-ttra sa vuln&abilite 2 l 'avenir. Les relat ions commerc'iales avec l e Tiers Monde sont tree importantes (23% des exportations to ta les sont dirigees vers l e Tiers Monde) e t s 'e f fectuent au pro f i t de la Suisse. Le B-ilan des services e s t encore plus d&dquil'LbvG en faveur de la Suisse tundis que oelui des revenus en c a p i t a w f a i t apparattre un important surplus. Le surplus commercial e t I'enorme surplus de la balance des paiernents en general s'opposent clairement Zraide pu- blique au developpernent, qui n 'a a t t e i n t que 0,19% du PEN en 1977 ( l e s f lux com- merciaux avec l e Tiers Monde ont a t t e i n t 'la meme annee 3,14% - e t encore l a plus grande partie de ceux-ci nron t - i l s que peu de rapport avec l e developpement). Le scenario dominant des relat ions economiques futures entre la Suisse e t Ie Tiers Monde es t analys6e d'une mani2re cr i t ique, e t un scenario a l t e m a t i f e s t esquisse, base sur un rdent issement de l ' in temat io 'nai isat ionet de la concentration de Z'economie e t sur une redis tr ibut ion graduelle des facteurs de production en faveur d'un type de dGveloppement plus domestique e t comptant davantage sur l e s ressources du pays lui-meme. Les changements s tructurels en Suisse doivent t en i r compte des graves des6quilibres duns l e s re lat ions 6conomiques avec l e Tiers Monde.

S W I S S - T H I R D WORLD ECONOMIC R E L A T I O N S : BALANCE SHEET, PERSPECTIVES, * / PROPOSALS FOR CHANGE-

A b s t r d : This paper describes the main characteristics o f the economy of Switzer- land, i t s interrational ramif imt ions i n terms of industry, international finance

* An annex t o t h i s paper with more de ta i l s and in-depth analysis can be obtained - from IFDA on request

and inv i s ib le s , and s h m s the important interdependencies with the Third WorLd. The authors examine the future perspective of the Swiss economy and show elements on al ternat ive scenario of economic development i n Suiterland.

I t i s f e l t that the Sw'ss eco?~orny i s 'becoming ter t iar ized, overconcentratred and highly transnationalized, i n terms of both manufacturing and banking (as u e l l as insurances), uhich are l i k e l y to be making it increasingly vulnerable i n the future. Comercia2 relat ions w i t h the Third World are very important (23% o f to ta l Swiss exports are directed to the Third World) and, also, very one-sided i n favour of Switzerland; the balance of services with the Third World i s even more one-sided, while the balance of capital revenues shews a vast surplus. The trading surplus with the Third World, and the enormous balance of payments surplus i n general., i s i n complete contrast u i t h S d s s ODA uhich has reached 0,19% o f GNP i n 1977 ( t o t a l f l m s t o the Third World have reached 3.14% i n the same year most of uhieh may have a doubtful development value) . The dominating scenario of future international re lat ions of the Suiss economy i s c r i t i c i zed , and an al ternat ive scenario i s presented, based on s h i n g down internat ional izat ion and concentration of the economy, and on a gradual redis tr ibut ion of production factors i n favour of a revival o f a more in ternal and more se l f - re l ian t development o f the Suiss e- conomy. Structural change i n Switzerland should take account of the grave in - balances uhioh e x i s t i n i t s economic re lat ions u i t h the Third World.

RELACIONES ECONOMICAS S U I Z A - TERCER MUNDO: BALANCE, PERSPECTIVAS,

PROPUESTAS PARA UN CAMB I o*'

Resumen: Este ar t ieulo describe las prineipales earaeteristicas de Za eeonomia su-iza, sue rumifieaciones internaeionales en t6rminos industr iales , financieros y de inv i s ib le s , demostrando importantes factores de interdependencia con e l Tercer Mundo. Los autores examinan las perspec t i~as de la economia helvit'ica y sugieren elementos para un escenario de desarrollo econ6mico al ternat ivo.

Los autores pieman que la economia suiza, sea en e l c q o de su industria, de la aetivi.dad bancuria o de 20s seguros, es del t i po terciar io , superconcentrada y fuertemente transnacionalizada, lo que no dejard de amentar su vulnerabilidad en e l future. Las relaciones comerciules con e l Tercer Mundo eon muy importantes (23% de las exportaciones se destinan a paises del Tercer Mundo) y se hacen con v e n t d a para Suiza. El desequ-ilihr'io de la balanza de servicios es coin mas favorable para Suisa y la balanza de capi tales regis tra un excedente importante. E l excedente comerciaZ y e l enorme excedente de la bazanza de pagos, en general contrastan c larmente con la ayuda publ-ica at desarrotio del Tercer Mundo, que no aZcanz6 n i e l 0.19% del PNB en 1977 fen ese mismo ano 20s i r t e rcmbios co- merciales con e l Tercer Mundo llegaron a l 3.14% - y en su mayor parte tenian poco que ver Con desarrollo). El escenari.0 dominante en las relaciones econbmicas Suiza-Tercer Mundo es analizado criticamente y se propone un escenario al ternat ivo, basado en la reducci6n del r h o de internaciona1izacGn y concentrae-ion de 'La economia, y en la redistvibucibn gradual de 20s factores de producci6n en b e n e f k i o de un desarrollo mds bi6n dom&tico, que se apoyara de preferencia sobre 20s re- curses prop-ids del pais. Los cmbios estructurales en Suisa deben tener en cuenta 20s graves desequilibrios er is tentes en sus relaciones con e l Tercer Mundo

*/ Un anexo de e s t e docmento, con un and l i s i s mds detallado del tema tratado, se - puede obtener pidiendolo a la FIPAD.

P h i l i p p e BERBERAT e t Hilmar STETTER

RELATIONS ECONOMIQUES SUISSE-TIERS MONDE : BILAN, PERSPECTIVES,

PROPOSITIONS DE CHANGEMENT. *

BILAN

L ' Sconomie de l a Su i s se p rSsen te deux c a r a c t e r i s t i q u e s ma j e u r e s : son appar tenance au groupe d e t E t e d e s n a t i o n s i n d u s t r i a l i s e e s e t son i n t e g r a t i o n poussee a l a d i v i s i o n i n t e r n a t i o n a l e du t r a v a i l (DIT) . C e t t e i n t e g r a t i o n implique une f o r t e dependance a l ' e g a r d

d e 116conomie mondiale e t d e son evo lu t ion .

Quelques c h i f f r e s d h o n t r e n t l e r a l e impor t an t d e l a S u i s s e dans l ' economie mondiale. Bien que p e t i t e par s a popu la t ion (67Sme r ang ) e t s a s u p e r f i c i e , e l l e occupe par exemple l a v i n g t i h e p l a c e d e l a product ion i n d u s t r i e l l e dans l e monde, l a d o u z i h e par s a p a r t i c i p a t i o n au commerce mondial e t l a q u a t r i h e s u r l e p l a n d e s i nves t i s semen t s d i r e c t s a 1 1 6 t r a n g e r (en c h i f f r e s abso- l u s ) . E l l e occupe egalement l a d e u x i h e p l ace mondiale s e l o n le p r o d u i t n a t i o n a l b r u t (PNB) par h a b i t a n t . E t d ' a p r e s l a Banque n a t i o n a l e s u i s s e , s a p l a c e f i n a n c i e r s e s t une d e s t r o i s p l u s impor t a n t e s du monde . Come c e l l e d ' a u t r e s pays i n d u s t r i a l i s e s , l 'economie s u i s s e e s t dominee pa r l e s e c t e u r d e s s e r v i c e s e t l e s e c t e u r d e l ' i n d u s t r i e q u i r e p r e s e n t e n t respect ivement 49,3 % e t 43,6% de l a popu la t ion a c t i v e (1977) . L'importance du s e c t e u r a g r i c o l e b a i s s e constam- ment. Bien que l e taux d e chamage a u j o u r d ' h u i s e s i t u e au-dessous d e 1%, on ne peu t pas d i r e que 1'6conomie s u i s s e a i t 6 t 6 Epargnge par l a c r i s e d e s annees pas sees . Ains i , e n t r e 1973 e t 1976, 1 '6co- nomie a perdu p l u s d e 300'000 p o s t e s d e t r a v a i l , c e q u i 6quivaut 2 env i ron 12% d e l a popu la t ion a c t i v e . Mais c e t t e p e r t e a touch6 s u r t o u t l e s t r a v a i l l e u r s 6 t r a n g e r s provenant d e l a p e r i p h e r i e europeenne, q u i o n t dii q u i t t e r I e pays e t q u i , c a m e beaucoup d e femmes e t d e jeunes, ne s o n t pas i n c l u s dans les s t a t i s t i q u e s o f f i c i e l l e s d e chamage.

Les branches les p l u s impor t an t e s du s e c t e u r s econda i r e , par l e u r c o n t r i b u t i o n au PNB, s o n t c e l l e s d e s machines e t a p p a r e i l s , d e l ' i n d u s t r i e chimique, d e l ' h o r l o g e r i e , d e s t e x t i l e s e t d e l ' h a b i l - lement. L ' i n d u s t r i e a fond6 son developpement s u r une s p e c i a l i s a - t i o n poussee e t s u r l ' e x p o r t a t i o n . Pauvre e n m a t i s r e s premieres , l a S u i s s e s ' appuie s u r l e s i n d u s t r i e s l ou rdes d e s pays envi ron- n a n t s . La S u i s s e p r o d u i t d e s b i e n s s emi - f in i s , d e s b i e n s d 'gquipe- ment e t d e s b i e n s d e consommation 2 f o r t e v a l e u r a j o u t g e .

*/ Le qroupe remerc ie t o u s ceux q u i , au cou r s d ' un sgminai re tenu - a Berne, l e 30 mars 1979, o n t b i en voulu appor t e r d e s remarques e t d e s sugges t ions . E l l e s o n t 6 t 6 t r S s u t i l e s dans l a r edac t ion de c e document.

Ramif ica t ions i n t e r n a t i o n a l e s

Les r a m i f i c a t i o n s i n t e r n a t i o n a l e s de l 'economie s u i s s e s o n t t r S s nombreuses avant t o u t avec l e s a u t r e s pays i n d u s t r i a l i s e s ; e l l e s s t e t e n d e n t s ans ces se . En 1977, l a p a r t d e s b i ens e t d e s s e r v i c e s expor t& s ' e l e v a i t 2 42,3% du p r o d u i t i n t e r i e u r b r u t (PIB) . Tradi t ionnel lement d e f i c i t a i r e , l a ba lance commerciale e s t , depu i s 1975, 2 l a s u i t e dela stagnation d e s inves t i s semen t s e t d e l a con- sommation, presque g q u i l i b r e e . Les s u r p l u s de l a ba lance d e s s e r - v i c e s e t d e l a ba lance des revenus de capi taux e n t r a l n e n t done un excedent de l a ba lance des paiements.

L' i n d u s t r i e manufactur iSre dans son ensemble expor t e envi ron 80 % d e s a product ion . L ' o r i e n t a t i o n de l a product ion v e r s Ie marche mondial e s t t r S s f r appan te dans c e r t a i n e s branches. L ' i n d u s t r i e hor logere v i e n t incontes tablement en t E t e avec p l u s de 95% d ' ex - p o r t a t i o n s . Le 90% d e s c o l o r a n t s e t des p r o d u i t s pharmaceutiques s o n t expor t&. Alors que l a product ion en Su i s se es t de p l u s en p l u s d i r i g e e v e r s l e march6 mondial, l a product ion 2 1 1 6 t r a n g e r , par des f i l i a l e s d e s o c i e t e s t r a n s n a t i o n a l e s s u i s s e s , gagne constamment en importance.

Les inves t i s semen t s d i r e c t s s u i s s e s o n t en ef f e t for tement augmen- t@ depu i s l e s annees 60 e t d e v r a i e n t avoi r a t t e i n t 55 m i l l i a r d s d e f r a n c s a f i n 1977. Les inves t i s semen t s d i r e c t s s u i s s e s 2 1 ' 6 - t r ange r s e concen t r en t ac tue l lement s u r l a chimie, l ' a l i m e n t a t i o n , l a cons t ruc t ion de machines e t a p p a r e i l s (80%) e t geographiquement dans l e s pays i n d u s t r i a l i s e s ( 9 0 % ) . On peu t e s t imer 2 2/3 envi ron l a p a r t des inves t i s semen t s d i r e c t s 2 l ' e t r a n g e r 6manant d e s s i x p l u s grandes f i rmes s u i s s e s . La Su i s se joue a u s s i un r61e impor tant dans I e commerce de technologie : p a r I e nombre de b r e v e t s deposes par m i l l i o n d ' h a b i t a n t s , e l l e s e p l a c e au deuxisme rang mondial .

La p l a c e f i n a n c i g r e joue un r o l e predominant su r Ie march6 d e s euro-monnaies. Les ope ra t ions f i d u c i a i r e s , l a g e s t i o n d e f o r t u n e s e t les ope ra t ions d l & i s s i o n montrent egalement que l a p l ace f i - nanciSre s u i s s e r e m p l i t une fonc t ion d e plaque tou rnan te . Les ope ra t ions i n t e r n a t i o n a l e s , dominees par t r o i s gr andes banques, o n t augment6 for tement depuis l e s annees 60. A l ' e t r a n g e r , l e s banques s u i s s e s d e t e n a i e n t , en 1977, un t o t a l d e 180,3 m i l l i a r d s d e f r a n c s d ' a v o i r s e t 144,7 m i l l i a r d s d'engagements. La mEme annee, Ie P I B s ' e l e v a i t 2 145,6 m i l l i a r d s d e f r a n c s .

Les compagnies d ' a s s u r a n c e s s u i s s e s s o n t egalement t r S s a c t i v e s s u r I e p l an i n t e r n a t i o n a l . E l l e s e n c a i s s e n t p l u s d e l a m o i t i e de l e u r s primes 2 1 ' 6 t r a n g e r ( c ' e s t - 2 - d i r e envi ron 8 m i l l i a r d s de f r a n c s ) . E l l e s d e t i e n n e n t egalement une grande f o r t u n e 2 l ' e t r a n - g e r (envi ron 15 m i l l i a r d s de f r a n c s su r un t o t a l d e 35 m i l l i a r d s d e f r a n c s ) .

Une c o n c e n t r a t i o n c r o i s s a n t e

~ ' e c o n o m i e s u i s s e s e s i y n a l e Ogalement p a r une c o n c e n t r a t i o n c r o i s s a n t e d e l a p r o d u c t i o n d e b i e n s e t d e s e r v i c e s au s e i n d e q u e l q u e s e n t r e p r i s e s t r a n s n a t i o n a l e s . En ce q u i c o n c e r n e l e c h i f f r e d ' a f f a i r e s e n 1971, l e s 50 p l u s g r a n d e s f i r m e s c o n t r a l e n t p l u s d e l a m o i t i e ( 5 4 , 7 % ) de l a p r o d u c t i o n i n d u s t r i e l l e n a t i o n a l e ( e n S u i s s e e t d a n s l e s f i l i a l e s a l ' e t r a n g e r ) . Ce ph6nomSne d e c o n c e n t r a t i o n semble s e p o u r s u i v r e . En c e q u i a t r a i t au s e c t e u r b a n c a i r e , I e d e q r e d e c o n c e n t r a t i o n a t t e i n t a p p a r a l t d a n s le c l a s s e m e n t d e s e t a b l i s s e m e n t s s e l o n l e u r b i l a n : a i n s i l e 2 , 6 % d e t o u s l e s i n s t i t u t s b a n c a i r e s o n t une somme d e b i l a n s u p e r i e u r e Z 1 m i l l i a r d d e f r a n c s e t r e p r e s e n t e n t 7 7 , 8 % d e l ' e n s e m b l e d e s b i l a n s . Les t r o i s p l u s g r a n d e s d e s 550 banques o p e r a n t e n S u i s s e t o t a l i s e n t 42 ,2% d e l ' ensernb le d e s b i l a n s ( c e s c h i f f r e s n ' i n c l u e n t p a s l e s a f f a i r e s f i d u c i a i r e s ) .

Les a f f a i r e s d ' a s s u r a n c e s s o n t ega lement f o r t e m e n t c o n c e n t r e e s : l e s t r o i s p l u s g r a n d e s e n t r e p r i s e s c o u v r e n t p l u s d e l a m o i t i e du march6 t o t a l .

La S u i s s e e t a n t un e t a t f e d e r a l , l a p o l i t i q u e economique e s t a l a f o i s d u r e s s o r t d e l a C o n f e d e r a t i o n e t d e s c a n t o n s . Ces d e r n i e r s o n t p a r exemple l e u r p r o p r e p o l i t i q u e b u d g e t a i r e , f i s c a l e e t d e l ' e m p l o i . Les communes d e t i e n n e n t a u s s i c e r t a i n e s competences economiques. La C o n f e d e r a t i o n a t o u t e f o i s r e p l e s a t t r i b u t i o n s l e s p l u s i m p o r t a n t e s ; e l l e p e u t e n o u t r e e x e r c e r d e s p r e s s i o n s , notamment p a r l e j e u d e s s u b v e n t i o n s .

Le p r i n c i p e d e l a l i b e r t e d e l ' i n d u s t r i e e t du commerce l i m i t e a son t o u r c o n s i d e r a b l e m e n t I e pouvoi r d e 1 ' E t a t ( C o n f e d e r a t i o n , c a n t o n s , communes). La C o n f e d e r a t i o n ne p e u t i n t e r v e n i r que l o r s q u e l a C o n s t i t u t i o n l e mentionne expressement ( I e P a r l e m e n t d e r o g e p a r f o i s 2 c e t t e r g g l e g r a c e 2 une c l a u s e d ' u r g e n c e ) .

I1 f a u t s a v o i r e n f i n que l e s p r i n c i p a u x p a r t i s p o l i t i q u e s s o n t r e p r g s e n t e s au s e i n d u youvernement s u i s s e ( C o n s e i l f e d e r a l ) . Le p o u v o i r l e g i s l a t i f e s t form6 p a r deux chambres d o n t l e s competences s o n t e g a l e s ( l ' u n e r e p r e s e n t e l e s c i t o y e n s e t l ' a u t r e l e s c a n t o n s ) . La f o r m u l a t i o n d e l a p o l i t i q u e economique e s t done I e r e s u l t a t d ' u n p r o c e s s u s complexe d e p r i s e d e d e c i s i o n , c e d ' a u t a n t p l u s que l e s p r i n c i p a u x y r o u p e s d ' i n t e r e t s ( a s s o c i a t i o n s p r o f e s s i o n n e l l e s , s y n d i c a t s , f o r m a t i o n s p o l i t i q u e s , i n s t a n c e s c a n t o n a l e s , e t c . ) s o n t d ' a b o r d c o n s u l t e s . I1 s ' a g i t d e r e a l i s e r l e c o n s e n s u s I e p l u s l a r g e p o s s i b l e . Le r e s u l t a t n e m o d i f i e g e n e r a l e m e n t guSre l e s t a t u quo.

Face 2 une economie c a r a c t e r i s g e d e p u i s d e s d e c e n n i e s p a r un pro- c e s s u s a c c g l e r e d e c o n c e n t r a t i o n e t d ' i n t e r n a t i o n a l i s a t i o n , l e s mecanismes d e d e c i s i o n p o l i t i q u e a p p a r a i s s e n t done t r o p f a i b l e s . On c o n s t a t e une osmose c r o i s s a n t e e n t r e l e s p o u v o i r s p u b l i c s e t

p r i v e s . J o u a n t s u r l e s c o n c e p t i o n s l i b e r a t e s , l e s m i l i e u x economi- q u e s d i r i g e a n t s s ' o p p o s e n t t o u t e f o i s au r e n f o r c e m e n t du r 6 1 e d e 1 ' E t a t .

R e l a t i o n s 6conomiques S u i s s e - T i e r s monde

Un t r a i t s a i l l a n t du b i l a n d e c e s r e l a t i o n s a p p a r a l t d a n s l a d i s p a r i t e e n t r e l ' e x c e d e n t c o n s i d e r a b l e que r e a l i s e l ' e c o n o m i e p r i v e e e t l e montan t d e r i s o i r e d e l ' a i d e p u b l i q u e au developpe- ment (APD) . L ' a d m i n i s t r a t i o n f e d e r a t e n ' e t a b l i t p a s d e b a l a n c e d e s pa iements e f f e c t u e s e n t r e l a S u i s s e e t l e T i e r s monde. D i f f e r e n t s recoupe- ments m o n t r e n t t o u t e f o i s que c e t t e b a l a n c e e s t fondamentalement d e s e q u i l i b r e e .

Cons idgrons t o u t d ' a b o r d l e s t r o i s p r i n c i p a u x t y p e s d e t r a n s a c - t i o n s c o u r a n t e s : commerce, s e r v i c e s e t r e v e n u s d e c a p i t a u x .

- En 1978, l e commerce s ' e s t s o l d 6 p a r un e x c m e n t d e 6,O m i l l i a r d s d e f r a n c s . Aucun a u t r e pays d e 1'OCDE n e f a i t e t a t d ' u n p a r e i l d e s e q u i l i b r e : s e l o n l e s d e r n i e r s c h i f f r e s d i s p o - n i b l e s ( 1 9 7 7 ) , l a S u i s s e v i e n t au premier r a n g d e s e x p o r t a t i o n s p a r h a b i t a n t ( p l u s d e 1 ' 5 0 0 . - - ) , m a i s au neuvisme r a n g d e s i m - p o r t a t i o n s ( e n v i r o n 700. - - ) . 11 c o n v i e n t t o u t e f o i s d e p r e c i s e r que c e r t a i n s p r o d u i t s p r i m a i r e s nous p a r v i e n n e n t du T i e r s monde a p r e s a v o i r S t 6 t r a n s f o r m e s d a n s l e s pays i n d u s t r i a l i s e s e t ne s o n t done p a s comptes d a n s l e s e x p o r t a t i o n s d e s r e g i o n s d ' o r i - g i n e . Malgre t o u t , en 1978, l a p a r t d e s e x p o r t a t i o n s d e s t i n e e s au T-i-ers monde ( 9 , 6 m i l l i a r d s d e f r a n c s ) r e p r e s e n t e 23 ,0% d e s e x p o r t a t i o n s s u i s s e s , a l o r s que l e s impor . t a t ions ( 3 , 6 m i l l i a r d s d e f r a n c s ) s ' e l e v a i e n t s e u l e m e n t a 8 , 4 % d e s i m p o r t a t i o n s g l o b a l e s .

- La b a l a n c e d e s s e r v i c e s e s t e n c o r e p l u s d e s 6 q u i l i b r 6 e : l a S u i s s e e s t I e pays q u i e x p o r t e , e n v a l e u r , I e p l u s d e s e r v i c e s p a r h a b i - t a n t e t e l l e r e a l i s e , d a n s c e domaine ega lement , un s o l d e a c t i f avec l e s pays du T i e r s monde. En l ' a b s e n c e d e s t a t i s t i q u e s o f f i - c i e l l e s , on e s t i m a i t c e s o l d e a 570 m i l l i o n s d e f r a n c s en 1974.

- I1 f a u t Qgalement t e n i r compte d e l ' i m p o r t a n t e x c e d e n t de l a b a l a n c e d e s r e v e n u s d e capi* ( r a p a t r i e m e n t d e b e n e f i c e s , i n t 6 r E t s d e s c r e d i t s a l ' e x p o r t a t i o n e t a u t r e s c a p i t a u x , e n p a r t i c u l i e r l e s emprunts ) . En 1974, i e s o l d e e t a i t e s t i m 6 2 800 m i l l i o n s d e f r a n c s , mais il a c e r t a i n e r n e n t augment6 f o r t e - ment d e p u i s l o r s .

Aprss a v o i r c o n s t a t e c e t e x c e d e n t c o n s i d e r a b l e d e l a b a l a n c e d e s t r a n s a c t i o n s c o u r a n t e s , a u q u e l c o r r e s p o n d un f l u x f i n a n c i e r du T i e r s monde v e r s l a S u i s s e , t e n t o n s d t 6 v a l u e r l a b a l a n c e d e s c a p i t a u x .

- Les s e u l s c h i f f r e s f o u r n i s p a r l ' a d m i n i s t r a t i o n f e d e r a t e concer - n e n t l e s ~ r t i e s n e t t e s d e c a p i t a u x pr- r e c e n s e s pour l e Cornit6 d ' a i d e au d6veloppement (OCDE) a i n s i que l e u r s montan ts curnules. Ces d e r n i s r e s a n n e e s , l e s s o r t i e s n e t t e s o n t augmente f o r t e m e n t pour a t t e i n d r e 3,14%du PNB e n 1977 ( 4 , 8 m i l l i a r d s d e f r a n c s ) .

* L ' a c c r o i s s e m e n t d e s c r t k l i t s 2 l ' e x p o r t a t i o n g a r a n t i s e s t i m p o r t a n t p u i s q u ' i l e s t e n v i r o n d e 2 , 2 m i l l i a r d s d e f r a n c s e n 1977, c e q u i r e p r e s e n t e une augmenta t ion d e 400% p a r r a p p o r t 2 l ' a n n e e pr6cGdente.

* Les i n v e s t i s s e m e n t s d i r e c t s s o n t r e s t 6 s p l u s ou moins cons- t a n t s e n t r e 1975 e t 1977 pour s ' 6 l e v e r a e n v i r o n 500 m i l l i o n s d e f r a n c s e n 1977. Le s t o c k d e s i n v e s t i s s e m e n t s d i r e c t s e t a i t 2 f i n 1977 d e l ' o r d r e d e 4 ,6 m i l l i a r d s d e f r a n c s , s o i t e n v i r o n 10% d e l ' e n s e m b l e d e s i n v e s c i s s e m e n t s s u i s s e s 2 l ' e t r a n g e r (un d e m i - m i l l i a r d e n A f r i q u e , 3 , 4 m i l l i a r d s e n Arnerique l a t i n e e t 0 , 7 m i l l i a r d s e n A s i e ) .

* Le march6 s u i s s e d e s c a p i t a u x p r i v e s a c o n t r i b u 6 , e n 1977, pour une s o m e d e 2054 m i l l i o n s d e f r a n c s aux organ ismes d e f i n a n c e m e n t m u l t i l a t e r a u x e t aux pays d u T i e r s monde. Le march6 s u i s s e d e s c a p i t a u x r e p r 6 s e n t e notamment l a q u a t r i s m e s o u r c e d e f i n a n c e m e n t d e l a Banque mondiale ( t o t a l f i n 1977, 3 , 2 m i l l i a r d s d e f r a n c s ) .

- Ces mouvements e t l e s montan ts cumules s o n t c e n t r e - b a l a n c e s p a r d ' i m p o r t a n t s f l u x p r o v e n a n t du -rs monde. Les r e v e n u s d e c a p i - t a u x o n t d6 ja 6 t 6 mentionn6 p l u s h a u t ( b a l a n c e d e s t r a n s a c t i o n s c o u r a n t e s ) . I1 c o n v i e n t de r e l e v e r i c i l e s p l a c e m e n t s e f f e c t u 6 s p a r l e s pays d u T i e r s monde, s a n s o u b l i e r l e s c a p i t a u x d e ' u i t e . L 'on ne c o n n a l t p a s l e s f l u x a n n u e l s . La s o m e cumulee d e s c a p i - t a u x p l a c e s e n S u i s s e a u r a i t a t t e i n t 22 m i l l i a r d s d e f r a n c s a f i n 1977 ( l e s c a p i t a u x p r o v e n a n t d e s pays d e 1'OPEP ne s o n t p a s com- p r i s ) . La p a r t d e s c a p i t a u x d e f u i t e n ' e s t p a s connue.

Face a l ' e x c e d e n t c o n s i d e r a b l e r e s u l t a n t d e l a b a l a n c e d e s p a i e - ments , c a i d e p u b l i q u e au d6veloppe-t (APD) e s t d e r i s o i r e . E l l e s ' e s t e l e v e e 2 286 m i l l i o n s d e f r a n c s e n 1977, s o i t 0 , 1 9 % d u PNB. La S u i s s e , 1 ' u n d e s pays l e s p l u s r i c h e s d u monde, s e s i t u e a i n s i a l ' a n t e p 6 n u l t i S m e r a n g d e s membres d u Comit6 d ' a i d e a u d6veloppe- ment (CAD) d e 1'OCDE. Cec i a l o r s que l e s r e c e t t e s f i s c a l e s s u i s s e s d e c o u l a n t d e c e s e x p o r t a t i o n s v e r s l e s pays du T i e r s monde, s e l o n d e s e s t i m a t i o n s , a t t e i n d r a i e n t d i x f o i s l e montan t d e 1'APD d e l a S u i s s e . Re levons t o u t e f o i s l a d e c i s i o n d u gouvernement s u i s s e d e r e l e v e r p r o g r e s s i v e m e n t l e s p r e s t a t i o n s o f f i c i e l l e s ( e l l e s d e - v r a i e n t a t t e i n d r e 0 , 2 5 % du PNB e n 1 9 8 1 ) . On e s t trss l o i n d e l ' o b j e c t i f d e 0 , 7 % que l 'Assembl6e g e n 6 r a l e d e s N a t i o n s Unies a impart! aux pays r i c h e s !

La parcimonie de l a Su i s se s e j u s t i f i e r a i t - e l l e ( l ' a rgumen t e s t f r e q u e n t ) pa r l ' impor t ance d e s i nves t i s semen t s d i r e c t s , d e s c r e d i t s 2 l ' e x p o r t a t i o n e t d e s p r e t s ? A n o t r e a v i s , l a modestie extreme d e 1'APD s u i s s e ne p e u t S t r e compensee par l e s e x p o r t a t i o n s d e ca- p i t a u x p r i v e s . Tout i nves t i s semen t d i r e c t ne correspond p a s , p a r exemple, aux beso ins s p e c i f i q u e s du T i e r s monde. La t echno loq ie complexe d e s f i r m e s e t r a n g s r e s supprime souvent davantage d'em- p l o i s t r a d i t i o n n e l s q u ' e l l e n ' e n c r e e de nouveaux. En o u t r e , l ' i n - ves t i s semen t p r i v 6 n'auqrnente pas forcement l a c a p a c i t e d e s peu- p i e s du T i e r s monde 5 prendre en main l e u r d e s t i n . I1 n ' e s t e n f i n pas e x c l u que I e r apa t r i emen t d e s i n t e r e t s e t b e n e f i c e s a t t e i g n e ou meme depasse encore a u j o u r d ' h u i l e s e x p o r t a t i o n s de cap i t aux p r i v e s , comrne d e s e s t i m a t i o n s i n t e r n a t i o n a l e s l e l a i s s a i e n t supposer en 1974.

L ' i n d u s t r i e s u i s s e d ' e x p o r t a t i o n p r o f i t e i nd i r ec t emen t d e s emprunts l a n c e s pa r l e s banques d e developpement : meme lo r sque l a S u i s s e n ' e n e s t pas mernbre (Banque mondiale notamment), c e s i n s t i t u t i o n s a u t o r i s e n t son i n d u s t r i e 2 soumet t re d e s o f f r e s . I1 en r e s u l t e d ' i m p o r t a n t s debouches pour l e s b i e n s d16quipement , dans Ie c a d r e d e p r o j e t s i n d u s t r i e l s e t ene rge t iques notamment. I1 semble b i en que l e s a c h a t s f i nances par 1 ' A s s o c i a t i o n i n t e r n a t i o n a l e de d6- veloppement ( I D A ) depas sen t en g e n e r a l l e s c r e d i t s accordes pa r l a S u i s s e . Dans le c a s d e l a Banque mondiale, l e s v e n t e s v a r i e n t d e 60 2 90% d e s emprunts s o u s c r i t s en Su i s se .

Ce b i l a n inontre que l 'economie s u i s s e p r o f i t e en premier l i e u d e s r e l a t i o n s avec I e T i e r s monde. I1 s ' a g i t t r S s vra isemblablement d ' u n a spor t a u revenu n a t i o n a l s u i s s e unique en son gen re . On a e s t ime en o u t r e , en 1974, qu ' env i ron 100'000 emplois d i r e c t s e t 100'000 emplois i n d i r e c t s e t a i e n t a s s u r e s par l e s e x p o r t a t i o n s v e r s l e T i e r s monde. A c e l a s ' a j o u t e n t l e s b e n e f i c e s supplemen- t a i r e s d e s e n t r e p r i s e s e t les r e c e t t e s f i s c a l e s d e 1 ' E t a t .

PERSPECTIVES

Quels p roces sus d ' a d a p t a t i o n amsneront - i l s l ' e conan ie s u i s s e 2 r e d e f i n i r s a p o s i t i o n dans I e cad re d e l a d i v i s i o n i n t e r n a t i o n a l e du t r a v a i l e t 5 modi f i e r s a s t r u c t u r e 6conanique s u r l e p l a n na- t i o n a l ? Dans l a d i s c u s s i o n a c t u e l l e , deux e v o l u t i o n s p o s s i b l e s a p p a r a i s s e n t : l a pensee dominante p o s t u l e une i n t e g r a t i o n acc rue 5 l a d i v i s i o n i n t e r n a t i o n a l e du t r a v a i l e x i s t a n t e , a l o r s que ce r - t a i n s groupes proposent une a l t e r n a t i v e f a v o r a b l e 5 l ' i n s t a u r a t i o n du Nouvel o r d r e 6conanique i n t e r n a t i o n a l (NOEI) s u r I e p l an i n t e r - n a t i o n a l e t au renforcement d e l 'economie i n t e r i e u r e e t d e l a s e c u r i t e du plein-emploi en Su i s se .

Pe r spec t ive dan inan te

La l i t t e r a t u r e e x i s t a n t e au s u j e t d e s p e r s p e c t i v e s d e l ' economie s u i s s e e s t dominee pa r un cou ran t d e pensfie q u i t i e n t pour acqu i s que l 'economie s u i s s e n 'echappera pas 2 une i n t 6 q r a t i o n accrue 2 l ' economie mondiale. Ce cou ran t e s t d6fendu pa r l e s p u b l i c a t i o n s d e mi l i eux 6conomiques. I 1 b e n e f i c i e egalement d e l ' a p p u i d e nom-

breux economistes e t d e c e l u i d e l ' E t a t , don t l a p o l i t i q u e econo- mique l i b e r a t e pas se pour l a mieux adaptee aux c o n d i t i o n s n a t i o -

'

n a l e s . Ce cou ran t d e pensee cons ide re l ' e c o n a n i e d ' e x p o r t a t i o n e t l a p l a c e f i n a n c i s r e ccmme l ' e p i n e d o r s a l e d e l 'economie e t d e l a p r o s p e r i t 6 s u i s s e s .

Selon l a p e r s p e c t i v e dominante, un c e r t a i n nombre d e f a c t e u r s o n t d e j 2 provoque dans l 'economie s u i s s e une a c c e l e r a t i o n d e s change- ments : l a hausse impor tante du cou r s du f r a n c s u i s s e ( canp te tenu d e l ' e v o l u t i o n d e s monnaies d e s p a r t e n a i r e s c m e r c i a u x l e s p l u s i m p o r t a n t s ) , l a r e d u c t i o n d e s b a r r i s r e s douan i s r e s , l a compression d e l a main-d 'oeuvre e t r a n g e r e , 1' augmentation d e s impor t a t i ons , e n t r e a u t r e s e n provenance d e s pays d ' i n d u s t r i a l i s a t i o n r e c e n t e . Ces f a c t e u r s condu i sen t , s u r l e p l an i n t e r n a t i o n a l , 2 une augmen- t a t i o n d e s p r i x d ' e x p o r t a t i o n e t 2 une r e d u c t i o n d e l a c a p a c i t e c o n c u r r e n t i e l l e d e s i n d u s t r i e s s i t u e e s en Su i s se . En o u t r e , l e march6 i n t e r i e u r t r a v e r s e une longue pe r iode d e s t a g n a t i o n - d e t e l l e s o r t e q u ' i l ne s a u r a i t s t i m u l e r l a c ro i s sance - e t l e s pou- v o i r s d ' i n t e r v e n t i o n d e 1 ' E t a t dans I e dornaine econanique s o n t e x t r h e m e n t l i m i t & , a u t a n t s u r l e p l an n a t i o n a l q u ' i n t e r n a t i o n a l , comme nous l ' a v o n s d e j a mentionne. Dans une l a r g e mesure, l ' econo- mie s u i s s e d o i t done s a c r o i s s a n c e a l a l i b e r a l i s a t i o n d e s fichanges i n t e r n a t i o n a u x . Dans c e c o u r a n t d e pensee, on peu t t o u t e f o i s d i s t i n g u e r deux tendances : l e s o p t i m i s t e s p revo ien t une a d a p t a t i o n a i s e e d e 1 ' 6 ~ 0 - nomie s u i s s e ; les p e s s i m i s t e s sou l ignen t , e n revanche, l e s d i f f i - c u l t & du processus .

Selon l e s premiers , l ' a j u s t e m e n t es t en cou r s e t s a r e a l i s a t i o n ne n e c e s s i t e pas d e t r ans fo rma t ion fondamentale du s y s t h e . L ' i n - t e r n a t i o n a l i s a t i o n se p o u r s u i v r a i t done. L'augrnentation d e s expor- t a t i o n s d e b i e n s e t s e r v i c e s t r a d u i r a i t une e x t r a v e r s i o n encore acc rue d e l 'economie.

C e t t e p e r s p e c t i v e impl ique une grande c a p a c i t e c o n c u r r e n t i e l l e d e l ' i n d u s t r i e s u i s s e e t d e nouveaux debouches 2 l ' e t r a n g e r . Comme on ne s ' a t t e n d gue re 2 une f o r t e c r o i s s a n c e d e s l i v r a i s o n s s u i s s e s aux pays i n d u s t r i a l i s t s , il f a u d r a se tou rne r v e r s une p rospec t ion acc rue d e s marches e x i s t a n t s dans l e T i e r s monde e t v e r s une r eche r - che p l u s i n t e n s i v e d e nouveaux marches. Ju squ ' a a u j o u r d ' h u i , les dSbouch6s se concen t r en t nearnoins s u r un nombre r e s t r e i n t d e pays , q u ' i l s a p p a r t i e n n e n t 2 1'OPEP ou q u a i l s s e s o i e n t engages, c e s d i x d e r n i e r e s annees , dans une i n d u s t r i a l i s a t i o n a c c e l e r e e e t e x t r a - v e r t i e . La Su i s se d o i t a i n s i s ' i m p l a n t e r d e fayon opt imale s u r c e r t a i n s marches t r G s p a r t i c u l i e r s . La l i v r a i s o n d e b i e n s r e l a t i v e - ment peu s e n s i b l e s au niveau d e s p r i x ou du moins c o n c u r r e n t i e l s en r a i s o n d e l e u r s p e c i a l i s a t i o n a p p a r a l t c m e une c o n d i t i o n nece.3- s a i r e .

Les p r o d u i t s f a b r i q u e s en Su i s se e t d e s t i n e s 2 l ' e x p o r t a t i o n con- t i e n d r o n t une p a r t acc rue d e r eche rche e t d e s a v o i r - f a i r e ; l a pro- d u c t i o n con t inue ra 2 s e s p e c i a l i s e r ; en o u t r e , l a f a b r i c a t i o n ne

s e r a c o n c u r r e n t i e l l e que p a r d e p l u s g r a n d s i n v e s t i s s e m e n t s d e r a - t i o n a l i s a t i o n e t une p r o d u c t i v i t 6 a c c r u e . Les e x p o r t a t i o n s s u i s s e s r e l s v e r o n t a i n s i d ' u n e technologic d e pointe . .

Ces p r o d u i t s s e r o n t I e f r u i t d e m6thodes i n t e n s i v e s e n c a p i t a l , ou t o u t au moins comprendront une p a r t 6 l e v 6 e d e t r a v a i l . q u a l i f i 6 ; d e p l u s i l s n e c e s s i t e r o n t une g r a n d e q u a n t i t 6 d e s e r v i c e s canplemen- t a i r e s . Avant t o u t , c e s o n t l e s b i e n s d ' i n v e s t i s s e m e n t s e t l e s b i e n s d e consommation d e l u x e q u i r e p o n d e n t 2 c e s c o n d i t i o n s . Par c e n t r e , l e s b i e n s d e consommation d e masse ne d e v r a i e n t p l u s S t r e c o n c u r r e n t i e l s , c a r i l s p r e s e n t e n t s o u v e n t d e s c a r a c t e r i s t i q u e s t e c h n o l o g i q u e s a n c i e n n e s e t s t a n d a r d i s e e s , qen6ra lement l i e e s a une p a r t i m p o r t a n t e d e t r a v a i l non ou peu q u a l i f i 6 . La l o c a l i s a t i o n d e l a p r o d u c t i o n d e c e g e n r e d e b i e n s e n S u i s s e d e v r a i t s t a v 6 r e r d e moins e n moins r e n t a b l e . L ' i n d u s t r i e s u i s s e c h e r c h e done 2 s ' i n - t 6 g r e r a l a DIT d e t e l l e s o r t e que s a p r o d u c t i o n d e p o i n t e s o i t l o c a l i s 6 e e n S u i s s e , a l o r s que l a p r o d u c t i o n d e masse i n t e n s i v e e n t r a v a i l s e d 6 r o u l e a l ' e t r a n q e r , pays du T i e r s monde compr i s , oii 1 e s co i i t s s o n t moindres e t oii l ' o n t r o u v e une main-d 'oeuvre p l u s a v a n t a g e u s e .

La v a r i a n t e o p t i m i s t e c o n s i d e r e que 1' a t t r a i t d e l a p l a c e f i n a n - c i s r e demeurera a u s s i longtemps que l a s t a b i l i t 6 6conanique e t p o l i t i q u e d e l a S u i s s e j u s t i f i e r a c e t t e c o n f i a n c e e t que , p a r cons6quent . le f r a n c s u i s s e s e m a i n t i e n d r a 2 un c o u r s 6 l e v 6 .

S e l o n c e t t e h y p o t h e s e , l e s p r i n c i p a u x a g e n t s d e l ' a d a p t a t i o n s e r a i e n t les g r a n d e s banques e t l e s s o c i e t e s t r a n s n a t i o n a l e s , d a n s un s y s t h e 6conornique i n t e r n a t i o n a l oii l ' a c t i v i t e commerciale e t f i n a n c i s r e s e d e r o u l e r a i e n t avec I e moins d ' e n t r a v e s p o s s i b l e s .

C e r t a i n s m i l i e u x ne p a r t a g e n t p a s c e t opt imisme c r a i g n a n t que l ' i n - t e g r a t i o n a c c r u e au march6 mondia l ne s o i t p a s e n mesure d e s u s c i - t e r l e s a d a p t a t i o n s n 6 c e s s a i r e s d e 1 '6conomie s u i s s e e t q u ' u n e i n t e r v e n t i o n p l u s marquee d e 1 ' E t a t e t d e s c a n t o n s s o i t n 6 c e s s a i r e . Dans l a p e r s p e c t i v e d ' u n e i n t e r n a t i o n a l i s a t i o n a c c r u e d e 1 '6conomie , c e c o u r a n t d e pensee p e s s i m i s t e e n t r e v o i t d e s d i f f i c u l t e s d e deux o r d r e s . D'une p a r t , l ' o r d r e po l i t i co-6conomique i n t e r n a t i o n a l s e r a i t p l u t a t d e f a v o r a b l e 2 l a r e u s s i t e d e l ' a d a p t a t i o n s t r u c t u r e l l e . Sur l e p l a n commercial , on ment ionne I e danger d e p r o t e c t i o n i s m e a c c r u pour l e commerce i n t e r n a t i o n a l . Dans l e domaine m o n e t a i r e , on pour- r a i t v o i r a p p a r a l t r e d e s d i s t o r s i o n s , p a r exemple du f a i t d e l ' i n - f l a t i o n , d e l ' e n d e t t e m e n t i n t e r n a t i o n a l ou d ' i n t e r v e n t i o n s e t a t i q u e s s u r l e p l a n p o l i t i q u e .

D ' a u t r e p a r t , l ' e n v i r o n n e m e n t i n t e r n a t i o n a l d6f a v o r a b l e e t l a pr6- pond6rance d ' u n e 6conomie e x t r a v e r t i e peuvent a c c e n t u e r l e s f a c t e u r s d e r e c e s s i o n . I1 n ' e s t p a s sCir que l e d6veloppement d e s i n d u s t r i e s d ' e x p o r t a t i o n e t d e s q r a n d e s banques s o i t 2 meme d ' a b s o r b e r l a main- d ' o e u v r e l i b 6 r 6 e p a r l e s p e t i t e s e t moyennes e n t r e p r i s e s q u i n ' a u - r o n t p a s pu s ' a d a p t e r . La s t r a t e g i c d ' e x p o r t a t i o n p o u r r a i t d ' a i l l e u r s r e n c o n t r e r d e s d i f f i c u l t 6 s s u r l e p l a n m o n e t a i r e . C o m e nous l ' a v o n s d 6 j 2 r e l e v e , l e c o u r s & l e v 6 du f r a n c ne f a v o r i s e p a s l a c a p a c i t e c o n c u r r e n t i e l l e d e s p r o d u i t s i n d u s t r i e l s f a b r i q u 6 s e n S u i s s e .

C r i t i q u e d e l a p e r s p e c t i v e dominante

Consid6rons d e p l u s p r s s I e r e c o u r s p r i v i l e q i 6 aux s e u l e s impul- s i o n s e x t e r i e u r e s dans s e s e f f e t s s u r l a s t r u c t u r e e t I e develop- pement 6conomique de l a Su i s se , p l u s p a r t i c u l i s r e m e n t s u r l e s r e l a t i o n s e n t r e I e s e c t e u r i n d u s t r i e l e t c e l u i d e s s e r v i c e s , a i n s i que su r l e s p o s s i b i l i t e s d 'emploi o f f e r t e s 2 l a popu la t ion a c t i v e . C e processus , avec s a concen t r a t i on su r une product ion i n t e n s i v e en t echno loq ie , c r e e d e s p r o b l h e s pour l e s p e t i t e s e t moyennes e n t r e p r i s e s . En p l u s de l a d i s p a r i t i o n d e s avantages d e l e u r loca- l i s a t i o n e n Su i s se , e l l e s s o u f f r e n t du ph6nomene de l a concent ra- t i o n e t du t r a n s f e r t p a s s i f ( l e u r product ion e s t supplantee pa r l a p roduc t ion impor tee) . D G s l o r s , une economie trss e x t r a v e r t i e , d o n t s e u l s l e s c e n t r e s d e d e c i s i o n , d ' a d m i n i s t r a t i o n e t d e r eche rche demeurent en S u i s s e , implique d e s d e s e q u i l i b r e s conduisant tat ou t a r d 2 un problsme d ' emploi . Car l a t e r t i a r i s a t i o n dans l e s e c t e u r i n d u s t r i e l e t un s e c t e u r d e s s e r v i c e s e n cons t an t e expansion ne peuvent absorber l a f o r c e de t r a v a i l l i b e r e e pa r l e s e c t e u r i n d u s t r i e l p r o d u c t i f . Le ma in t i en d ' u n e t e l l e tendance 2 l a t e r t i a r i s a t i o n d e l a s t r u c t u r e economique s i g n i f i e que l a Su i s se s e r a i t d e p l u s en p l u s amenee 2 assumer un r51e d e c e n t r e i n t e r n a t i o n a l d e s e r v i c e s dans le cad re de l a d i v i - s i o n i n t e r n a t i o n a l e du t r a v a i l .

Le volume d e l ' emp lo i o f f e r t par l e s t r a n s n a t i o n a l e s s t a q n e en Suis - s e depu i s p l u s i e u r s annees. Les p r o d u i t s d ' e x p o r t a t i o n s e r o n t d e p l u s e n p l u s f a b r i q u e s 2 l t 6 t r a n q e r . E t l e s f l u x i n v e r s e s d e cap i - t aux r e s u l t a n t d e t r a n s f e r t s d e product ion c o n t r i b u e r o n t au cou r s e l e v e du f r a n c s u i s s e . Ce cou r s e l e v e posera encore p l u s d e pro- blemes aux p e t i t e s e t moyennes e n t r e p r i s e s p rodu i san t pour l e mar- ch6 i n t 6 r i e u r . D ' a u t r e p a r t , l a fonc t ion d e l a p l a c e f i n a n c i s r e e n t a n t que p laque tou rnan te d e s t r a n s a c t i o n s i n t e r n a t i o n a l e s e t l ' e n - gaqement d e s qrandes banques 2 1' e t r anqe r gagneront en enverqure . Les co7its economiques e t soc iaux d e l ' a d a p t a t i o n s e r o n t suppor tgs pa r l a main-d 'oeuvre peu q u a l i f i e e - avant t o u t l e s f e m e s e t l e s e t r a n q e r s -, pa r l e s r e g i o n s economiquement f a i b l e s e t p a r l e s pe- t i t e s e t moyennes e n t r e p r i s e s . I 1 ne d e v r a i t pas stre p o s s i b l e d e r e i n s e r e r dans s e s anciennes a c t i v i t 6 s l a main-d'oeuvre l i c e n c i e e dans l e s r e g i o n s ou dans l e s p r o f e s s i o n s v u l n e r a b l e s e t d e t rouve r a s sez d ' emplo i s pour l e s jeunes.

La p e r s p e c t i v e dominante condu i t done f ina l emen t 2 une adapta- t i o n s t r u c t u r e l l e q u i r e n f o r c e r a i t l e s e c t e u r i n t e r n a t i o n a l . La Su i s se c o n t i n u e r a i t 2 occuper une p o s i t i o n dominante au s e i n d e l ' economie mondiale e t m a i n t i e n d r a i t d e s r e l a t i o n s 6conomiques i n e q u i t a b l e s enve r s l e s pays du T i e r s monde.

I1 f a u t dSs l o r s p r e s e n t e r une a l t e r n a t i v e v i s a n t un o r d r e econo- mique mondial p l u s e q u i t a b l e e t s o l i d a i r e e t 6 v i t a n t l e s r i s q u e s d e c o n c e n t r a t i o n d e s moyens d e p r o d u c t i o n , d e t e r t i a r i s a t i o n , d e sous-emploi i n h e r e n t s 2 l a r e a l i s a t i o n du s c e n a r i o dominant . Les c o n d i t i o n s p e r m e t t a n t d ' a t t e i n d r e c e t o r d r e d o i v e n t S t r e m i s e s e n p l a c e . Auss i une i n t e r v e n t i o n e t a t i q u e p l u s marquee d a n s I e p ro- c e s s u s d ' a d a p t a t i o n s t r u c t u r e l l e d e v i e n t - e l l e n e c e s s a i r e . La S u i s s e d o i t c o n t r i b u e r 2 m e t t r e e n p l a c e d e s s t r u c t u r e s i n t e r n a - t i o n a l e s i m p l i q u a n t d e s r e l a t i o n s economiques s y m e t r i q u e s e t s o l i - d a i r e s e n t r e pays i n d u s t r i a l i s e s e t pays d u T i e r s monde, d a n s I e c a d r e d u NOEI.

Bien en tendu , une p o l i t i q u e economique autonome d e l a S u i s s e n ' e s t que p a r t i e l l e m e n t p o s s i b l e vu l a f o r t e i m b r i c a t i o n avec l e s a u t r e s economies i n d u s t r i a l i s e e s .

Les g r o u p e s q u i r e v e n d i q u e n t une t e l l e a l t e r n a t i v e 2 l a p o l i t i q u e economique a c t u e l l e f o n t p a r t i e du t i e r s - s y s t h e . 11s s o u h a i t e n t d ' a b o r d que l a t e n d a n c e 2 l ' i n t e r n a t i o n a l i s a t i o n s o i t f r e i n 6 e e t remplacee p a r d e s r e l a t i o n s economiques avec l ' e t r a n g e r mieux c o n t r a l e e s . Mais i l s r e v e n d i q u e n t s u r t o u t une p o l i t i q u e a c t i v e d a n s I e domaine d e l ' economie i n t e r i e u r e . Cec i a f i n d e promouvoir une s t r u c t u r e 6conomique e q u i l i b r e e e t e q u i t a b l e q u i a s s u r e Ie p l e i n - emplo i e t I e b i e n - E t r e d e l a p o p u l a t i o n , s a n s r e s t e r un hSvre pour l e s c a p i t a u x d e f u i t e e t l e s a c t i v i t e s i n c o n t r S l e e s d e s s o c i e t e s t r a n s n a t i o n a l e s .

PROPOSITIONS DE CHANGEMENT

Tenant c a n p t e du b i l a n d e s r e l a t i o n s economiques e n t r e l a S u i s s e e t I e T i e r s monde e t d e s p e r s p e c t i v e s , nous t e n t e r o n s d e d e f i n i r c e r t a i n e s recommandations. C e l l e s - c i v i s e n t 2 i n f l u e n c e r c e r t a i n s e l e m e n t s d e l a p o l i t i q u e a c t u e l l e d e s a u t o r i t e s s u i s s e s e t 2 e s q u i s - s e r d e s a l t e r n a t i v e s p r o p r e s 2 surmonter l e s o b s t a c l e s s t r u c t u r e l s 2 l ' i n s t a u r a t i o n d ' u n nouveau t y p e de r e l a t i o n s - p l u s e q u i t a b l e s - e n t r e l e T i e r s monde e t l a S u i s s e .

I1 nous p a r a l t t o u t d ' a b o r d oppor tun d ' e n o n c e r c l a i r e m e n t s u r q u e l s p r i n c i p e s c e s recommandations s e f o n d e n t e t q u e l s t y p e s d e change- ment e l l e s p e u v e n t s u s c i t e r .

La t r o i s i s m e d e c e n n i e i n t e r n a t i o n a l e d e developpement v i s e r a l ' i n s - t a u r a t i o n du NOEI. C e t t e r e s t r u c t u r a t i o n d e v r a i t a s s u r e r l a s a t i s - f a c t i o n d e s b e s o i n s e s s e n t i e l s d e l'homrne, 1' e q u i l i b r e homme - n a t u r e e t l a " s e l f - r e l i a n c e " aux p l a n s i n t e r n a t i o n a l , n a t i o n a l e t l o c a l .

La " s e l f - r e 1 i a n c e " i m p l i q u e premis rement un r e n f o r c e m e n t d e l a con- f i a n c e d e s p e u p l e s du monde e n t i e r e t e n p a r t i c u l i e r d e ceux d u T i e r s monde d a n s l e s v a l e u r s d e l e u r p r o p r e t r a d i t i o n e t d a n s l e u r s p r o p r e s c a p a c i t 6 s e t , deuxismement, d e p l u s l a r g e s p o s s i b i l i t 6 s d ' a u t o d e t e r m i n a t i o n .

Comrne I e gouvernement s u i s s e I e p r e c i s e lui-meme * , " l ' a u t o d e t e r - m i n a t i o n ne d o i t p a s s i q n i f i e r a u t a r c i e 6conomique n i i s o l a t i o n i s - me p o l i t i q u e . E l l e exprime l a c o n v i c t i o n que chaque developpement d o i t s t i n s p i r e r d e s f o r c e s i n t e r i e u r e s e t que d e s i m p u l s i o n s ve- n u e s d e l ' e x t e r i e u r s e r o n t d ' a u t a n t p l u s u t i l e s q u ' e l l e s s e r o n t mieux a d a p t e e s aux c o n d i t i o n s economiques e t c u l t u r e l l e s e x i s t a n - t e s . La " s e l f - r e l i a n c e " expr ime f i n a l e m e n t une o p p o s i t i o n 2 t o u t e dependance u n i l a t e r a l e , que c e s o i t 2 l ' i n t e r i e u r d e c e r t a i n s pays ou s u r I e p l a n d e s r e l a t i o n s d ' E t a t 2 E t a t " .

Donc, pour E t r e f r u c t u e u s e 2 long te rme, une c o o p e r a t i o n au deve- loppement n e c e s s i t e d ' u n e p a r t l ' i n s t a u r a t i o n d e r e l a t i o n s adap- t e e s aux c o n d i t i o n s economiques e t c u l t u r e l l e s d e s pays du T i e r s monde, e t d ' a u t r e p a r t , 1 1 6 t a b l i s s e m e n t d e r e l a t i o n s s y m 6 t r i q u e s e n t r e d e s p a r t e n a i r e s Gqaux. Or nous c o n s t a t o n s e n t r e l a S u i s s e e t l e s p a y s du T i e r s monde d e s Schanges i n a d a p t e s e t ineqaux . Le re- amenagement d e s r e l a t i o n s r e q u i e r t d e s p o l i t i q u e s economiques e t d e c o o p e r a t i o n conformes 2 un d e s p r i n c i p e s fondamentaux d e l a p o l i - t i q u e e x t e r i e u r e s u i s s e : l a s o l i d a r i t e .

Grace 2 l a l o i f 6 d S r a l e s u r l a c o o p e r a t i o n au developpement e t d e l ' a i d e h u m a n i t a i r e i n t e r n a t i o n a l e , l a S u i s s e p o s s s d e un i n s t r u m e n t q u i l u i permet d t 6 t a b l i r d e s r e l a t i o n s economiques e x t e r i e u r e s a d a p t e e s , s y m e t r i q u e s e t s o l i d a i r e s .

Types d e changement p r o p o s e s

En v u e d ' i n s t a u r e r d e t e l l e s r e l a t i o n s , d i v e r s t y p e s d e changement s e n t n e c e s s a i r e s . En c e q u i c o n c e r n e l a p o l i t i q u e s u i s s e , on p e u t d i s t i n g u e r deux g r o u p e s d ' a c t i o n s :

- Le p r e m i e r g roupe v i s e 2 r a l e n t i r l a t endance a c t u e l l e 2 l ' i n t e r - n a t i o n a l i s a t i o n , 2 l a s p e c i a l i s a t i o n e t 2 l a t e r t i a r i s a t i o n c r o i s - s a n t e s d e l ' economie s u i s s e . I1 s ' a g i r a i t ega lement d ' e n t r a v e r l a c o n c e n t r a t i o n d e s e n t r e p r i s e s i n d u s t r i e l l e s t r a n s n a t i o n a l e s e t d e s banques;

- Le d e u x i h e groupe d ' a c t i o n s d o i t p e r m e t t r e une r e d i s t r i b u t i o n d i r i g 6 e d e s f a c t e u r s d e p r o d u c t i o n . La main-d ' o e u v r e e t I e c a p i - t a l d o i v e n t a i n s i 6 t r e engages d ' u n e m a n i s r e p r o d u c t i v e d a n s I e c a d r e d e l ' e c o n o m i e i n t e r i e u r e .

En S u i s s e , les a g e n t s d e c e s mesures s o n t l ' E t a t , l ' e c o n o m i e e t l e s c i t o y e n s . e tat q u i a j u s q u ' 2 m a i n t e n a n t p o u r s u i v i une p o l i t i q u e economique l i b e r a l e s e d o i t d ' i n t e r v e n i r p l u s a c t i v e m e n t , e n s ' a s - s u r a n t que l ' a c t i v i t e 6conomique p r i v e e s o i t conforme aux b u t s d e l a c o o p e r a t i o n au developpement . L'6conomie elle-meme d o i t f a i r e p reuve d ' e s p r i t d ' i n n o v a t i o n e t c h o i s i r l e s i n v e s t i s s e m e n t s q u i g a r a n t i s s e n t I e succSs, meme d a n s d e s c o n d i t i o n s d i f f e r e n t e s . F ina- l ament , l e s c i t o y e n s peuvent Ggalement c o n t r i b u e r , p a r d e n o u v e l l e s h a b i t u d e s d e consommation e t une c o n s c i e n c e a c c r u e , Z c e que l e u r s

* Message c o n c e r n a n t l a c o n t i n u a t i o n d e l a c o o p e r a t i o n t e c h n i q u e e t d e l ' a i d e f i n a n c i s r e e n f a v e u r d e s pays e n developpement , du 23 novembre 1977, pp. 18-19.

c o n c e p t i o n s d ' u n a u t r e developpement i n f l u e n c e n t I e s t y l e d e v i e q u o t i d i e n e t l e s d e b a t s p o l i t i q u e s .

Ces deux q r o u p e s d ' a c t i o n s s e r a p p o r t e n t aux n iveaux i n t e r n a t i o - n a l , r e g i o n a l e t n a t i o n a l d e s r e l a t i o n s 6conomiques.

- Sur I e p l a n i n t e r n a t i o n a l , l a S u i s s e p e u t c o n s e n t i r aux chanqe- ments n e c e s s a i r e s 2 l ' a m e l i o r a t i o n d e l a p o s i t i o n du T i e r s monde au s e i n d e l ' e c o n o m i e mondia le , c o n f o r m h e n t 2 un NOEI e q u i t a b l e , b a s e s u r d e s r e l a t i o n s economiques s y m e t r i q u e s e n t r e I e Nord e t l e Sud. Les a d a p t a t i o n s s t r u c t u r e l l e s n e c e s s a i r e s e n S u i s s e p o u r r o n t S t r e p ronues p a r 1 ' E t a t .

- D'aprSs l e s p r i n c i p e s d e l a " c o l l e c t i v e s e l f - r e l i a n c e " (autonomie c o l l e c t i v e ) , l e s r e l a t i o n s economiques r e g i o n a l e s d e p e n d e n t d e s d e c i s i o n s d e s pays e n developpement eux-mSmes. La S u i s s e d e v r a i t , dSs l o r s , e n c o u r a g e r d e s r e l a t i o n s economiques f a v o r i s a n t l a s t r a - t @ i e "d 'au tonomie c o l l e c t i v e " du T i e r s monde.

Mais l a s t r a t e g i c " d ' a u t o n o m i e c o l l e c t i v e " f o u r n i t ega lement a l a S u i s s e d e s i d e e s d ' a c t i o n s 4conomiques s u s c e p t i b l e s d e f r e i n e r l a t e n d a n c e a l ' i n t e r n a t i o n a l i s a t i o n e t d ' augmenter l a demande i n t e - r i e u r e . Relevons notamment l a p o s s i b i l i t 6 d ' u n e c o o p e r a t i o n e n t r e l e s p e t i t s p a y s e u r o p e e n s e n vue d ' e l a r g i r l e u r autonomie f a c e au p o i d s d e s g r a n d s b l o c s economiques ou d e c e r t a i n s e t a t s .

- P o u r t a n t une s t r a t e g i c "d ' au tonomie c o l l e c t i v e " e t l ' i n s t a u r a t i o n du NOEI n 1 6 t a b l i r o n t d e s r e l a t i o n s economiques s y m e t r i q u e s que l o r s q u ' e x i s t e r o n t d e s s t r u c t u r e s p o l i t i q u e s fondees s u r un p a r t a - g e e q u i t a b l e du pouvoi r economique 2 l ' i n t e r i e u r d e s d i v e r s e t a t s .

Recommandations

Les mesures p r o p o s e e s d o i v e n t p e r m e t t r e d e c o r r i q e r l ' e x t r a v e r s i o n e x c e s s i v e d e l ' e c o n o m i e s u i s s e e t d ' a s s u r e r une c r o i s s a n c e p l u s G q u i l i b r e e e t o r i e n t e e v e r s I e p l e i n - e m p l o i .

Les chanqements d e p o l i t i q u e d o i v e n t t o u c h e r e n p r i o r i t y l a p l a c e f i n a n c i s r e s u i s s e . Surd imens ionnee , e l l e d o i t p e r d r e d e s o n a t t r a c - t i o n i n t e r n a t i o n a l e . Sa f o n c t i o n d e p l a q u e t o u r n a n t e s e r a r e d u i t e p a r un a f f l u x moindre d e c a p i t a u x i n t e r n a t i o n a u x , e t e n p a r t i c u l i e r d e s c a p i t a u x d e f u i t e du T i e r s monde. En o u t r e , l e T i e r s monde d e v r a b e n e f i c i e r d 1 a 1 l S g e m e n t s e t d e r e m i s e s d e d e t t e s s i q n i f i c a - t i f s . F i n a l e m e n t , I e c o n t r a l e d e l a p l a c e f i n a n c i s r e e s t ega lement p o s s i b l e p a r une m e i l l e u r e t r a n s p a r e n c e d e s a f f a i r e s e t d e s r a m i f i - c a t i o n s i n t e r n a t i o n a l e s . Les o p e r a t i o n s d e s banques 2 l ' e t r a n g e r ne f o n t p a s l ' o b j e t d e s t a t i s t i q u e s s u f f i s a n t e s . En o u t r e , l a S u i s s e ne p u b l i e p a s d e b a l a n c e o f f i c i e l l e d e s t r a n s f e r t s d e c a p i t a u x avec 1' e t r a n q e r . Les a c t i v i t e s c?es s o c i e t 6 s t r a n s n a t i o n a l e s d o i v e n t S t r e r 6 g l e m e n t e e s a i n s i que I e t r a n s f e r t d e t e c h n o l o g i e e t l e s i n v e s t i s s e m e n t s . Le d r o i t c o n c e r n a n t l e s b r e v e t s , f a v o r a b l e 2 l ' i n d u s t r i e s u i s s e , d o i t i n t e r d i r e t o u t e p r a t i q u e r e s t r i c t i v e e n v e r s I e T i e r s monde. Les con- d i t i o n s d ' i m p l a n t a t i o n a n t i s o c i a l e s d e beaucoup de c e n t r e s d e pro-

d u c t i o n du T i e r s monde ( b a s s a l a i r e s , a c t i v i t e s s y n d i c a l e s l i m i t e e s , p o l l u t i o n d e l ' e n v i r o n n e m e n t i l l i m i t e e ) , e x p l o i t e e s p a r l e s s o c i e - tes t r a n s n a t i o n a l e s , s o n t a r e m p l a c e r p a r d e s i n v e s t i s s e m e n t s d a n s l e T i e r s monde q u i f a v o r i s e n t une s t r a t e g i e d e developpement t e n a n t compte e n t r e a u t r e s d e s b e s o i n s d e s p o p u l a t i o n s c o n c e r n e e s .

Les nombreuses r a m i f i c a t i o n s i n t e r n a t i o n a l e s d e l a S u i s s e s o n t 6ga- l ement f a v o r i s i i e s p a r un s y s t h e j u r i d i q u e l i b e r a l . DSs l o r s , d e s d i s p o s i t i o n s p l u s s 6 v S r e s d o i v e n t e t r e i n t r o d u i t e s d a n s l e d r o i t d e s s o c i e t e s , d e s c a r t e l s e t d a n s l e d r o i t f i s c a l . Une harmonisa- t i o n f i s c a l e d o i t S t r e r e c h e r c h e e t a n t s u r I e p l a n i n t e r n a t i o n a l que n a t i o n a l . F i n a l e m e n t , l ' e n t r a i d e j u d i c i a i r e i n t e r n a t i o n a l e d o i t E t r e e l a r g i e , e n p a r t i c u l i e r aux d e l i t s f i s c a u x e t m o n e t a i r e s .

En c e q u i c o n c e r n e l e s r e l a t i o n s conunerciales , il f a u t p e n s e r , e n p l u s d ' u n a c c s s e l a r g i a nos marches , 5 un o f f i c e s p e c i a l d e p ro- mot ion d e s i m p o r t a t i o n s e n provenance d e s pays d u T i e r s monde. I1 s ' a g i t d e r e d u i r e l e s o l d e p o s i t i f d e l a b a l a n c e c o m e r c i a l e d e l a S u i s s e a v e c c e s p a y s , e n augmentant notamment l e s i m p o r t a t i o n s d e b i e n s t r a n s f ormes.

Sur I e p l a n d e s e x p o r t a t i o n s , il s ' a g i r a d ' e t u d i e r comment La C o n f e d e r a t i o n p o u r r a i t subordonner l e u r promotion a l a p o l i t i q u e de developpernent. Les v e n t e s d ' a r m e s d e v r a i e n t e n t o u s c a s e t r e t o t a - lement i n t e r d i t e s .

Tournons-nous m a i n t e n a n t v e r s l e s mesures v i s a n t une economie i n t e r i e u r e p l u s e q u i l i b r e e q u i c o n t r i b u e r a i t d a v a n t a q e a m a i n t e n i r -- une c e r t a i n e p r o d u c t i o n d e s t i n e ~ au marche i n t e r i e u r e t I e p l e i n - emplo i . Tout d ' a b o r d un c e r t a i n nombre d e t a c h e s n o u v e l l e s pour- r a i e n t g randement c o n t r i b u e r & l ' a m e l i o r a t i o n d e n o t r e c a d r e d e v i e , t e l l e s l e s economies d ' e n e r g i e , I e developpement d e s s o u r c e s d ' e n e r - g i e r e n o u v e l a b l e s ( e n e r g i e s o l a i r e , b i o g a z , e t c . ) , l a p r o t e c t i o n d e l ' e n v i r o n n e m e n t , l ' a s s a i n i s s e m e n t d e s v i l l e s ( r e s t a u r a t i o n d e v i e u x q u a r t i e r s , d6veloppement d e s t r a n s p o r t s p u b l i c s , e t c . ) , d e s s e r v i c e s s o c i a u x d e c e n t r a l i s e s e t l a r e d u c t i o n d e l a duriie d u t r a - v a i l . I c i , l ' e s p r i t d ' e n t r e p r i s e e t d ' i n n o v a t i o n p o u r r a i t s e r e - d e p l o y e r , c r e a n t p a r l a - m e m e d e nouveaux e m p l o i s . Encore f a u d r a i t - il que 1 ' E t a t m e t t e en p l a c e un c a d r e f a v o r a b l e 3 l a r e o r i e n t a t i o n d e 1' economie i n t e r i e u r e v e r s une p l u s g rande autonomic,

E n s u i t e , une p o l i t i q u e a c t i v e d a n s l e domaine d e l a r e s t r u c t u r a t i o n d e v r a i t v i s e r 1 ' a l l S g e m e n t d e s c o n t r a i n t e s s u b i e s p a r c e r t a i n e s b r a n c h e s i n d u s t r i e l l e s . I1 c o n v i e n d r a i t p r i n c i p a l e m e n t d e donner l e s moyens aux e n t r e p r i s e s d e b r a n c h e s r e c e s s i v e s , p a r t i c u l i s r e m e n t d a n s l e s r e g i o n s economiquement f a i b l e s , d e s e l a n c e r d a n s d e s a c t i v i t 6 s dynarniques, c e q u i G v i t e r a i t ega lement aux t r a v a i l l e u r s d e q u i t t e r l e u r r e g i o n . Les p o u v o i r s p u b l i c s p o u r r a i e n t p r e n d r e q u a t r e q r o u p e s d e mesures :

- S o u t e n i r massivement l a m o b i l i t e p r o f e s s i o n n e l l e - e n p a r t i c u l i e r d e s j e u n e s e t d e s fenunes - e n r e c o n n a i s s a n t l e u r d r o i t a u t r a v a i l e t e n e l a r q i s s a n t l e s p o s s i b i l i t e s d e r e c o n v e r s i o n p r o f e s s i o n n e l - I e .

- Lancer d e s programmes d e s o u t i e n 2 l ' i n n o v a t i o n t e c h n o l o q i q u e e t 2 l ' i n v e s t i s s e m e n t beaucoup p l u s i m p o r t a n t s .

- Prornouvoir un c a d r e economique f a v o r a b l e 2 l ' a c t i o n d e s p e t i t e s e t rnoyennes e n t r e p r i s e s e n l e u r a c c o r d a n t d e s a v a n t a q e s f i n a n - c i e r s s u f f i s a n t s (une r e d u c t i o n d e s c h a r g e s f i s c a l e s p o u r r a i t , p a r exemple, s e r v i r 2 e n c o u r a q e r l a c r e a t i o n d e nouveaux e m p l o i s ) .

- F a c i l i t e r d ' u n e m a n i s r e g e n e r a t e l e s demarches a d m i n i s t r a t i v e s e t l ' a c c s s 2 l ' i n f o r m a t i o n (carnpaqne d e promotion d e s chambres d e commerce, e t c . ) .

I1 e s t c l a i r que l a r e a l i s a t i o n d e c e t t e a l t e r n a t i v e s e h e u r t e r a i t 2 d e s o b s t a c l e s p o l i t i q u e s . En e f f e t , b i e n q u ' e l l e n ' i m p l i q u e pas d e d i r i q i s m e , l ' a l t e r n a t i v e proposee comporte , d a n s I e c a d r e u l t r a - l i b e r a l a c t u e l de 1'6conornie s u i s s e , une i n t e r v e n t i o n p l u s a c t i v e d e s p o u v o i r s p u b l i c s .

I1 e s t p r o b a b l e que l e s b e n e f i c i a i r e s d e l ' o r d r e a c t u e l s ' o p p o s e n t 2 un p a r t a q e e q u i t a b l e d e s coGts d ' u n e t e l l e r e s t r u c t u r a t i o n . DSs l o r s , il a p p a r t i e n t aux q r o u p e s s o c i a u x d e f a v o r i s 6 s ou c o n c e r n e s , p a r exernple j e u n e s e t femmes 2 l a r e c h e r c h e d ' u n emplo i v a l a b l e , t r a v a i l l e u r s d e b r a n c h e s ou d e r e g i o n s e n d i f f i c u l t 6 , d e r e a l i s e r l e s o r t peu e n v i a b l e q u i l e s a t t e n d s ' i l s n e s e m o b i l i s e n t p a s 2 t r a v e r s d e s a s s o c i a t i o n s d 1 i n t 6 r S t s , d e s s y n d i c a t s ou d e s p a r t i s p o l i t i q u e s .

L 'annexe d e c e document, e t une a n a l y s e p l u s d e t a i l l e e du theme t r a i t 6 i c i , p e u t E t r e ob tenu 2 l a FIPAD.

B U I L D I N G BLOCKS

RELATIONS BETWEEN SWEDEN AND THE THIRD WORLD by Bi r g i t t a Nygren Sec re t a r i a t f o r Future Studies P. 0. Box/Fack 103 Stockholm, Sweden

Original language: English

Abstract: The structure of the Swedish economy and the prevailing pattern o f i t s re lat ions wi th the Third World - particularly i n those areas i n which Third World demands have been strongly articulated - are described i n t h i s paper. I t shows that the extraordinary affluence of Sweden and i t s re la t i ve ly important ro le i n the international economy are recent phenomena. Trade l inks with the Third World have i n the past played a small part i n the Swedish economy, and Th-ird World tra- ding partners of any s i ze are s t i l t feu. A substantial part of trade wi th the Third World occws between Swedish companies and their Third World subsidiaries. On the other hand, Swedish private investment i n the Third World has gained i n importance i n recent years; l i k e Switzerland, Sweden now has a substantial trans- national dimension i n i t s economic re lat ions with the Third World. The paper also examines Swedish tourism, immigration policy and aid . The Swedish aid pro- gramme has been b u i l t and expanded mainly on the basis o f international sol idari ty; i t s disbursements have increased rapidly i n recent years and reached 0.99% o f GNP i n 1977. While 1976 i n government has not led t o a change i n aid levels or i n aid motivation, some changes i n al locat ion have occurred. In examining the re- la t i ve ly progressive Swedish positions wi th regard t o the demands of the NIEO, the paper concludes by posing the question whether the increasing internat¥iomlizat io of the Swedish economy and the increasing competitiveness of some Third World trading partners might not eventually be perceived as a threat t o Swedish in te res t s and lead t o a s h i f t i n the balance of i t s Third World re lat ions .

L E S R E L A T I O N S DE L A SUEDE AVEC LE T I E R S MONDE

Risu&: Cet a r t i c l e d k i t la structure de lr6conomie sued.oise e t ce l l e de ses re lat ions avec l e Tiers Monde, n o t m e n t dans l e s domaines oil l e Tiers Monde a pre-senti ses revendieations avec force. I 2 montre que la richesse de la Suede e t son r5 le relativement important dans l'iconomie internationale sont des phinome- nes recents. Les re lat ions comereiales avec l e Tiers Monde ont, dans l e passe, you6 un r52e modeste dans Ifeconomic suedoise, e t ses partemires eomerciaus: importants demewent t r2s peu nombreux. line part considirable du commerce suedois avec l e Tiers Monde s ' e f f ec tue en f a i t entre des societ6s suidoises e t leurs f i l i a l e s dans l e Tiers Monde. D'autre part, l e s investissements pr iv is suedois dans l e Tiers Monde ont pris de l'importance ces demiGres annies. Come l a Suisse, la Suede a d6sormais une dimension transnat iomie s ign i f i ca t i ve dans ses re lat ions iconomiques avec l e Tiers Monde. L 'ar t i c l e examine igalement l e tourisme, l a polit ique d'immigration e t l'a-ide. Le programme suidois draide a &ti e tab l i , e t ( s u i t e page 11)

SECRETARIAT FOR FUTURES STUDIES B i r g i t t a Nygren 14 June 1979

RELATIONS BETWEEN SWEDEN AND THE THIRD WORLD

1. A b a l a n c e s h e e t ?

R e l a t i o n s between Sweden and t h e T h i r d World (TW) p r e v a i l i n many d i f f e r e n t f i e l d s . Goods f l o w i n b o t h d i r e c t i o n s ; c a p i t a l moves t o t h e T h i r d World f o r i n v e s t m e n t s and a i d , whereas d i v i d e n d s and r o y a l t i e s r e t u r n ; p e o p l e t r a v e l t o t h e T h i r d World a s t o u r i s t s , businessmen and t e c h n i c a l a s s i s t a n c e p e r s o n n e l , and immigran ts o f t e n w e l l - e d u c a t e d , come t o Sweden t o work.

I t would be i n t e r e s t i n g i f r e l a t i o n s i n a l l t h e d i f f e r e n t f i e l d s c o u l d be d e s c r i b e d i n a un i form manner and combined i n t o a b a l a n c e s h e e t i n o r d e r t o e n a b l e a c a l c u l a t i o n of t h e c o s t and b e n e f i t s i n v o l v e d t o be made. However, t h e yard- s t i c k a c c o r d i n g t o which t h e s e amounts s h o u l d be v a l u e d h a s n o t y e t been i n v e n t e d .

T h i s p a p e r , w i l l t h u s n o t a im a t e x p l o r i n g how much Sweden, on b a l a n c e , i s b e n e f i t t i n g from i t s r e l a t i o n s w i t h t h e T h i r d World, b u t r a t h e r a t t e m p t t o d e s c r i b e t h e p r e v a i l i n g p a t t e r n of r e l a t i o n s and , p a r t i c u l a r l y i n t h o s e a r e a s i n which T h i r d World demands f o r changes have been s t r o n g l y e n u n c i a t e d . A f t e r some remarks on t h e s t r u c t u r e of t h e Swedish economy and d e s c r i p t i o n s o f T h i r d World r e l a t i o n s i n d i f f e r e n t f i e l d s , measures t a k e n by t h e government t o respond t o T h i r d World demands w i l l b e looked a t .

2. R e l a t i o n s w i t h t h e T h i r d World

2 . 1 Some remarks on t h e Swedish economy

At t h e t i m e t h e c o l o n i a l powers were r a c i n g f o r t h e l a s t unconquered p a r t s o f A f r i c a and A s i a , Sweden was h e r s e l f a d e v e l o p i n g c o u n t r y . I n a b i l i t y t o f e e d i t s p o p u l a t i o n f o r c e d a s u b s t a n t i a l e m i g r a t i o n , p a r t i c u l a r l y t o Nor th America. I n d u s t r y and i n f r a s t r u c t u r e were b u i l t up w i t h f o r e i g n c a p i t a l .

The e x t r a o r d i n a r y a f f l u e n c e c u r r e n t l y r e c o r d e d i s a r e c e n t phenomenon. The end o f t h e second World War found Sweden i n a p r i v i l e g e d p o s i t i o n . An i n t a c t i n d u s t r y s t o o d r e a d y t o d e l i v e r goods r e q u i r e d f o r t h e r e c o n s t r u c t i o n o f Europe. E v e r y t h i n g t h a t c o u l d b e produced c o u l d a l s o be s o l d .

Though minor r e c e s s i o n s o c c u r e d , t h e whole post-war p e r i o d up t o t h e e a r l y s e v e n t i e s , may be d e s c r i b e d a s a l o n g boom. By 1975 Sweden's p o p u l a t i o n o f e i g h t m i l l i o n e n j o y e d a n a v e r a g e p e r c a p i t a income o f a b o u t US$ 8 ,150 , which was second o n l y t o Kuwait and S w i t z e r l a n d (1). Moreover, t h e d i s t r i b u t i o n o f income i s c o m p a r a t i v e l y even i n Sweden.

1. World Bank A t l a s (1977)

The t r a d i t i o n a l b a s e o f t h e economy, wood and i r o n o r e , d o s t i l l p l a y a n i m p o r t a n t r o l e i n t h e economy. However, i n - d u s t r i e s b a s e d on t h e p r o c e s s i n g o f t h e s e raw m a t e r i a l s and p a r t i c u l a r l y , t h e e n g i n e e r i n g i n d u s t r y now a r e t h e c o r n e r - s t o n e s o f t h e economy. A c o n s i d e r a b l e p a r t of p r o d u c t i o n i s s o l d a b r o a d , a b o u t 40 p e r c e n t o f t o t a l i n d u s t r i a l o u t p u t .

Trade l i n k s

Trade w i t h t h e T h i r d World h a s t r a d i t i o n a l l y p l a y e d a s m a l l p a r t i n t o t a l t r a d e . I m p o r t s from TW c o u n t r i e s were r e s t r i c t - ed t o commodit ies u n a v a i l a b l e from t h e l a r g e r and more c l o s e l y l o c a t e d t r a d i n g p a r t n e r s , such a s t r o p i c a l f r u i t s and v e g e t a b l e s , e s p e c i a l l y c o f f e e , and m i n e r a l s such a s c o p p e r .

But t h i n g s d o change. During t h e s e v e n t i e s t r a d e w i t h TW c o u n t r i e s h a s i n c r e a s e d s u b s t a n t i a l l y i n v a l u e . The i n c r e a s e of o i l p r i c e s d o o f c o u r s e e x p l a i n a l o t o f t h a t i n c r e a s e b u t f a r f rom a l l .

I n 1971 Sweden bought goods from a b r o a d f o r a b o u t US$7 b i l l - i o n . I n 1975 t h e amount s t o o d a t US$19 b i l l i o n which r e - p r e s e n t s a n i n c r e a s e of 1 7 1 p e r c e n t . During t h e same p e r i o d TW i m p o r t s i n c r e a s e d from US$0.7 t o US$2.6 b i l l i o n , i . e . w i t h a b o u t 250 p e r c e n t . T h a t meant t h a t t h e s h a r e o f TW i m p o r t s i n t o t a l i m p o r t s i n c r e a s e d from 1 0 . 5 p e r c e n t t o 13 .5 . (See t a b l e 1 i n t h e a p p e n d i x ) .

A s r e g a r d s t h e c o m p o s i t i o n o f i m p o r t s , it i s i n t e r e s t i n g t o n o t e t h a t t h e TW s h a r e o f i m p o r t s o f machinery (SITC 7 ) and o t h e r m a n u f a c t u r e s (SITC 8 ) i n c r e a s e d s u b s t a n t i a l l y from 1971 t o 1976.

But , TW t r a d i n g p a r t n e r s o f any s i z e a r e few. I n 1976 i m - p o r t s f rom t h e t e n l a r g e s t TW e x p o r t e r s t o Sweden made up a b o u t 70 p e r c e n t o f Swedish i m p o r t s f rom t h e T h i r d World. Most i m p o r t a n t o f t h e s e were o i l - e x p o r t e r s such a s Saudi - A r a b i a , I r a n , N i g e r i a and Uni ted Arab E m i r a t e s . N I C s s u c h a s B r a z i l and South Korea were a l s o among t h o s e a s w e l l a s c o f f e e - e x p o r t i n g Colombia and China.

The s h a r e o f TW e x p o r t i n t o t a l e x p o r t s i n c r e a s e d from 9.4 p e r c e n t i n 1 9 7 1 t o a b o u t 14 p e r c e n t i n 1976, a n i n c r e a s e from US$0.7 b i l l i o n t o US$2.6 b i l l i o n .

Swedish e x p o r t s t o T h i r d World c o u n t r i e s a r e dominated by i n d u s t r i a l p r o d u c t s , e s p e c i a l l y machinery and t r a n s p o r t equipment (SITC 7 ) . The s h a r e o f such e x p o r t s i n t o t a l e x p o r t s t o TW c o u n t r i e s was a b o u t 64 p e r c e n t i n 1971 and a round 73 p e r c e n t i n 1976. (See t a b l e 1 i n t h e a p p e n d i x ) .

E x p o r t s t o T h i r d World c o u n t r i e s a r e d i s t r i b u t e d among a l a r g e r number o f c o u n t r i e s t h a n i m p o r t s . The t e n l a r g e s t m a r k e t s a b s o r b e d a b o u t 56 p e r c e n t o f t o t a l TW e x p o r t s i n

1976. Most impor tant of t hose markets were B r a z i l , Saudi- Arabia, I r a q and I r a n .

I n 1976 seven pe r c e n t of TW impor ts o r i g i n a t e d from r e - c i p i e n t s of Swedish b i l a t e r a l a i d and 11 pe rcen t of Swedish e x p o r t s t o TW c o u n t r i e s were s o l d t o a id - r ece iv ing count - r i e s .

The e x t r a o r d i n a r y h igh sha re of machinery i n t o t a l e x p o r t s t o TW c o u n t r i e s is p a r t l y exp la ined by t h e s u b s t a n t i a l t r a d e between Swedish companies and t h e i r s u b s i d i a r i e s i n TW c o u n t r i e s . I t h a s been e s t ima ted t h a t about 30 p e r c e n t of t o t a l TW e x p o r t s r e f e r t o such i n t r a - i n d u s t r y t r a d e . I n t h e c a s e of B r a z i l t h e s h a r e i s e s t ima ted a t 80 p e r c e n t (1).

2.3 P r i v a t e inves tments

I n 1974, Swedish companies had a lmost 1,800 f o r e i g n sub- s i d i a r i e s , about 500 of which were manufacturing companies. Those manufacturing companies employed upwards of 200,000 persons , which was roughly 20 p e r c e n t of t o t a l personnel s t r e n g t h , i . e . bo th i n Sweden and abroad ( 2 ) . The va lue of product ion i n t h o s e s u b s i d i a r i e s was e q u i v a l e n t t o about 40 p e r c e n t of Swedish expor t s . That p u t s Sweden on a l e v e l w i th Swi tzer land and t h e Nether lands a s one of t h e wor ld ' s most m u l t i n a t i o n a l c o u n t r i e s r e l a t i v e l y speaking. S t i l l , Swedish d i r e c t inves tments account f o r on ly two p e r c e n t of t o t a l f o r e i g n inves tments i n t h e world a s a whole and on ly one pe rcen t of f o r e i g n inves tments i n t h e Th i rd World ( 3 ) .

Expansion of t h e a c t i v i t i e s abroad have, du r ing r e c e n t y e a r s , been much s t r o n g e r t han i n Sweden. During t h e pe r iod 1960-1974 employment i n Swedish i n d u s t r y s t a g n a t e d , whereas employment i n Swedish s u b s i d i a r i e s abroad expanded by about one hundred pe rcen t . Comparing f o r e i g n inves tments w i th t h e growth of inves tments i n Sweden, one f i n d s t h a t whereas i n Sweden g r o s s inves tments e x c l u s i v e of housing have r i s e n by 65 p e r c e n t ( i n c u r r e n t p r i c e s ) ove r t h e f i ve -yea r pe r iod 1972-1977, f o r e i g n inves tments have grown by about 125 pe r c e n t d u r i n g t h e same per iod .

Most of Sweden's f o r e i g n inves tments a r e made i n o t h e r i n - d u s t r i a l i z e d c o u n t r i e s . However, t h e sha re of p r i v a t e f o r e i g n inves tments i n Thi rd World c o u n t r i e s has i nc reased s u b s t a n t i a l l y d u r i n g r e c e n t y e a r s . I n 1972 t h i r t e e n p e r c e n t of t h e t o t a l amount of r e q u e s t f o r f o r e i g n inves tments a u t h o r i z e d by t h e C e n t r a l Bank concerned inves tments i n TW c o u n t r i e s . I n 1976 t h a t sha re had r i s e n t o 19 p e r c e n t and i n 1977 t o 22 pe r c e n t ( 4 ) .

1. Ekdahl (1978, p 26 2 . Meyerson (1976) , p 17 3. Ekdahl (1978) , p 38 4 . Sve r iges Riksbank (1977) , p 99

Inves tments i n TW c o u n t r i e s a r e concen t r a t ed t o a sma l l number of c o u n t r i e s . About 70 p e r c e n t of t o t a l a s s e t s i n Swedish f o r e i g n inves tments i n t h e Thi rd World a r e l o c a t e d i n Argent ina , B r a z i l and Mexico. Inves tments i n L a t i n American c o u n t r i e s have a l s o grown very f a s t . Whereas i n - ves tments i n TW c o u n t r i e s i n t o t a l r o s e by 280 pe r c e n t dur- i ng t h e pe r iod 1972-1977, t h e y r o s e by about 1,000 p e r c e n t i n B r a z i l du r ing t h e same pe r iod .

So f a r t h e u rge t o c a p t u r e new markets seems t o e x p l a i n most inves tments i n TW c o u n t r i e s . No doubt , t h e h igh t a r i f f b a r r i e r s and s t r o n g i n c e n t i v e f o r l o c a l product ion i n many L a t i n American c o u n t r i e s have p r e c i p i t a t e d Swedish i n v e s t - ments t h e r e . The c o n s i d e r a b l e i n c r e a s e of Swedish i n v e s t - ments i n L a t i n America was a l s o matched by a dec rease of t h e L a t i n American sha re of Swedish e x p o r t s t o developing count- r i e s (1). The bulk of t h e inves tments a r e made by companies producing p roduc t s f o r development of i n f r a s t r u c t u r e , such a s telecommunication, t r a n s p o r t equipment and e l e c t r i c i t y product ion .

Inves tments t o u t i l i z e lower product ion c o s t s abroad i s n o t a s a l i e n t f e a t u r e of Swedish f o r e i g n inves tments . Product ion abroad f o r re -expor t t o Sweden is so f a r n e g l i a b l e .

Very l i t t l e r e s e a r c h h a s been made i n Sweden on t h e p r o f i t - a b i l i t y of inves tments abroad and t h e t r a n s f e r of r e s o u r c e s from s u b s i d i a r i e s t o p a r e n t companies. One s tudy made i n t h e e a r l y s e v e n t i e s i n d i c a t e s t h a t p r o f i t a b i l i t y on average was h ighe r i n f o r e i g n s u b s i d i a r i e s t han i n t h e p a r e n t companies, which i n t u r n were more p r o f i t a b l e t h a n Swedish i n d u s t r y i n g e n e r a l ( 2 ) . As r ega rds t h e f low of r e s o u r c e s from f o r e i g n s u b s i d i a r i e s , t h e C e n t r a l Bank r eco rds t h e inf low of ea rn - i n g s on f o r e i g n inves tments . Such e a r n i n g s have inc reased from abou t US$9S m i l l i o n i n 1973 t o about US$175 m i l l i o n i n 1977 ( 3 ) . Those f i g u r e s i n d i c a t e t h a t p r o f i t s made abroad a r e e i t h e r r e i n v e s t e d o r brought home through o t h e r means s i n c e t h o s e e a r n i n g s do on ly r e p r e s e n t some two p e r c e n t o f t h e book va lue of f o r e i g n inves tments .

IÂ p r o f i t s t r a n s f e r r e d correspond t o t h e l o c a t i o n o f a s s e t s abroad of Swedish s u b s i d i a r i e s , on ly about US$25 m i l l i o n would d e r i v e from inves tments i n Th i rd World c o u n t r i e s .

The volume of a i d has i nc reased r a p i d l y du r ing r e c e n t yea r s . According t o OECD, ODA d isbursements reached 0.99 p e r c e n t of GNP i n 1977, which was t h e h i g h e s t r a t i o recorded

1. Swedenborg (1979) , p 381 2. Swedenborg (19 73) , p 105 3. Sve r iges Riksbank (1979)

by any of t h e p r e s e n t DAC members du r ing t h e l a s t 15 y e a r s (1). Furthermore, t h e a i d programme i s c h a r a c t e r i z e d by h igh c o n c e s s i o n a l i t y and a concen t r a t i on on very poor r e c i p i e n t s .

M u l t i l a t e r a l a i d accoun t s f o r about one t h i r d of t o t a l ODA. About one t h i r d of t h e m u l t i l a t e r a l a i d i s channel led t o I D A and n e a r l y 25 pe r c e n t t o UNDP.

The foremost o f f i c i a l motive f o r t h e a i d programme i s t o s t r e n g t h e n i n t e r n a t i o n a l s o l i d a r i t y and t o c o n t r i b u t e t o peace fu l development. Aid should t h u s a s s i s t t h e r e c i p i e n t c o u n t r i e s t o ach ieve economic growth, economic and s o c i a l j u s t i c e , democra t ic development and p o l i t i c a l independence.

Other motives f o r a i d , such a s s e c u r i t y motives, have ha rd ly occured i n t h e p u b l i c debate . However, o t h e r o b j e c t i v e s f o r a i d , such a s promoting Swedish commercial i n t e r e s t s through t h e a i d programme h a s been d i scus sed and advocated i n t e r a l i a by r e p r e s e n t a t i v e s f o r Swedish i n d u s t r y . Such d i s - c u s s i o n s have so f a r had l i t t l e impact on t h e a i d programme. They could , however, ga in i n f luence s i n c e i nc reased a c t i v - i t i e s i n t h e TW may be seen a s c o n s i s t e n t wi th t h e i n d u s t r i a l - i z a t i o n o b j e c t i v e of t h e Lima Dec la ra t i on .

Why then has Sweden been a b l e t o b u i l d up a compara t ive ly l a r g e a i d programme mainly based on i n t e r n a t i o n a l s o l i d a r i t y ?

No doubt t h e r e was a s t r o n g opin ion i n favour of t h a t dur ing t h e most r a p i d expansion phase. That phase occured du r ing t h e l a t e s i x t i e s and e a r l y s e v e n t i e s . Also, t h e r e is no doubt t h a t a p rog res s ive Thi rd World p o l i c y h a s f i t t e d Sweden's f o r e i g n p o l i c y p r o f i l e ve ry w e l l .

Although t h e pa r l i amen t h a s agreed on t h e b a s i c p r i n c i p l e s f o r t h e a i d programme, t h e cho ice of r e c i p i e n t s has o f t e n been s u b j e c t t o much deba te . P a r t i c u l a r l y t h e conse rva t ive p a r t y has o b j e c t e d t o a l l o c a t i o n of a i d t o s o c i a l i s t count- r i e s . Aid t o such c o u n t r i e s d i d however i n c r e a s e subs t an t - i a l l y d u r i n g t h e s o c i a l democra t ic regime. Following t h e i r l o s s of power i n t h e 1976 e l e c t i o n , on ly minor changes have been made of t h e programme. Aid t o Cuba w i l l be c u t . Accord- i n g t o t h e government, t h a t i s due t o t h e f a c t t h a t Cuba does n o t belong t o t h e p o o r e s t group of c o u n t r i e s on which Sweden has dec ided t o focus i t s a s s i s t a n c e .

By 1977 t h e l i s t of r e c i p i e n t s inc luded 20 c o u n t r i e s , over h a l f of which i n A f r i c a , s i x i n Asia and, o u t s i d e t h o s e c o n t i n e n t s , only Cuba and Por tuga l ( 2 ) . (The programme t o Po r tuga l i s a l s o t o be phased o u t ) . Vietnam, Tanzania and I n d i a a r e t h e most impor tant r e c i p i e n t s . (For f u r t h e r de- t a i l s s ee appendix 2 ) .

1. .OECD Development Cooperat ion (1978) , p. 144 2 . Sweden's P o l i c y f o r I n t e r n a t i o n a l Development Cooperat ion

About two t h i r d s o f t h e b i l a t e r a l programme t o r e c i p i e n t c o u n t r i e s i s a l l o c a t e d t o f i n a n c i a l a s s i s t a n c e , t e n p e r c e n t t o t e c h n i c a l a s s i s t a n c e and 25 p e r c e n t t o procurement o f goods and s e r v i c e s . As i n d i c a t e d above, t h e b u l k o f t h e b i l a t e r a l a i d i s u n t i e d . Only 14 p e r c e n t i s f o r m a l l y t i e d . But , r e c i p i e n t s o f t e n p r o c u r e equipment i n Sweden. T h e r e f o r e t h e a c t u a l amount used f o r p u r c h a s e s i n Sweden i s e s t i m a t e d a t 30 p e r c e n t ( 1 ) .

2.5 Tourism

V a c t i o n s a b r o a d i s one way i n which t h e Swedes i n c r e a s i n g l y have m a t e r i a l i z e d t h e i r h i g h s t a n d a r d o f l i v i n g . According t o s t a t i s t i c s compi led by t h e World T o u r i s t O r g a n i z a t i o n , WTO, a b o u t 70 p e r c e n t of Swedish t o u r i s t s ' t r a v e l a b r o a d t a k e p l a c e i n deve loped c o u n t r i e s i n Europe. About f o u r p e r c e n t t r a v e l i n o t h e r deve loped c o u n t r i e s , seven p e r c e n t t o E a s t e r n Europe and 18 p e r c e n t i n t h e T h i r d World. I f de- v e l o p i n g c o u n t r i e s i n Europe a r e e x c l u d e d , t h e T h i r d World s h a r e d e c r e a s e s t o t h r e e p e r c e n t o n l y .

As t r a v e l i n c r e a s e s t h e amount o f f o r e i g n exchange s p e n t a b r o a d by t o u r i s t s h a s a l s o i n c r e a s e d . I n 1973 it i s e s t i m - a t e d t h a t t h e Swedes s p e n t a b o u t US$0.75 b i l l i o n . I n 1977 t h a t amount had i n c r e a s e d t o US$1.3 b i l l i o n . The i n f l o w t o Sweden amounted t o US$0.46 b i l l i o n . On t h e assumpt ion t h a t t o u r i s t s spend a n e q u a l amount on e a c h t r i p i n e a c h c o u n t r y , it may be e s t i m a t e d t h a t a b o u t US$0.2 b i l l i o n was s p e n t i n T h i r d World c o u n t r i e s 1976.

Immigra t ion

Immigra t ion t o Sweden h a s i n c r e a s e d r a p i d l y d u r i n g t h e p o s t - war p e r i o d . At i t s b e g i n n i n g , Sweden had a v e r y homogenous p o p u l a t i o n and e x c e p t f o r t h e Lapps and s m a l l f i n n i s h - s p e a k i n g g r o u p s i n t h e n o r t h , no language problems p r e v a i l e d . Today, it i s e s t i m a t e d t h a t a b o u t 1 m i l l i o n p e r s o n s o f a t o t a l p o p u l a t i o n o f 8 m i l l i o n a r e immigran ts o r p e r s o n s b o r n t o immigran ts . The number o f l a n g u a g e s spoken i n t h e c o u n t r y i s e s t i m a t e d t o a b o u t 70. Courses i n Swedish f o r immigran ts a r e g i v e n on more t h a n 50 l a n g u a g e s ( 2 ) .

I n t h e f i f t i e s immigra t ion was encouraged due t o s h o r t a g e o f l a b o u r . L a t e r , when employment c r e a t i o n became a problem r e s t r i c t i o n s on immigra t ion were imposed. Nowadays, p r i o r i t y

1. Ekdahl (1978) , p 54 2. S p e c i a l i n f o r m a t i o n  £ r a SO P 1 1978:15 * These f i g u r e s a b o u t t h e p e r c e n t a g e d i s t r i b u t i o n have t o be

t a k e n w i t h r e s e r v a t i o n . They a r e b a s e d on i n f o r m a t i o n s u p p l i e d by d i f f e r e n t c o u n t r i e s on t h e n a t i o n a l i t y o f t h e i r v i s i t o r s . F o r some c o u n t r i e s which c e r t a i n l y r e c e i v e a l o t o f Swedish t o u r i s t s no i n f o r m a t i o n i s a v a i l a b l e .

i s g iven t o p o l i t i c a l r e fugees . However, when looking a t s t a t i s t i c s over immigration one f i n d s t h a t a s u b s t a n t i a l number of immigrants come from o t h e r Nordic c o u n t r i e s . That i s exp la ined by an agreement on a f r e e labour market a main consequence of which i s a major i n f l u x of persons from Fin land. I n 1976, a lmost h a l f of t h e immigrants came from o t h e r Nordic c o u n t r i e s , whereas about 18 p e r c e n t came from TW c o u n t r i e s .

I n g e n e r a l , p u b l i c op in ion has a r a t h e r n e g a t i v e a t t i t u d e towards immigrants. Pub l i c a u t h o r i t i e s have t h e r e f o r e taken p a i n s t o produce informat ion about t h e c o n t r i b u t i o n o f t h e immigrants t o s o c i e t y . Such s t u d i e s show c l e a r l y t h a t immigrants work longe r hours , a r e more seldom ill and a v a i l themselves of l e s s s o c i a l b e n e f i t s t han t h e Swedes do i n g e n e r a l .

Assuming t h e immigrants c o n t r i b u t e j u s t a s much a s t h e Swedes t o GNP, t h e i r c o n t r i b u t i o n would i n 1976 amount t o roughly US$9 b i l l i o n . Remittances from immigrants t o t h e i r r e l a t i v e s abroad amounted t o US$0.07 b i l l i o n t h e same yea r .

3. Sweden and t h e New Order

Following t h e S i x t h Spec i a l Sess ion of t h e UN General Assembly, when t h e NIEO was dec ided upon, Swedish p o l i t i c - i a n s have r epea t ed ly a f f i rmed t h e i r suppor t of t h e NIEO i n i n t e r n a t i o n a l a s w e l l a s n a t i o n a l f o r a . However, i n view of t h e f a r - r each ing changes which t h e TW a c t u a l l y a r e aiming a t , one may s u s p e c t t h a t v e r b a l suppor t of t h e NIEO does n o t e a s i l y l end i t s e l f t o t r ans fo rma t ion i n t o r e a l a c t i o n . That w i l l be demonstrated by a b r i e f look a t a c t i o n s t aken by t h e Government i n response t o some of t h e c r u c i a l demands, v i z . t h e r i g h t t o own o n e ' s r e sou rces , t o t r a d e f r e e l y and t o g e t pa id .

3.1 Sovere ignty ove r n a t u r a l r e sou rces

A t t h e S i x t h S p e c i a l Sess ion many c o u n t r i e s submit ted ex- p l a n a t i o n s of vo t e concerning t h e fo rmula t ions i n t h e Dec la ra t i on on sove re ign ty ove r n a t u r a l r e sou rces . Many may have f e l t t h a t t h e y had t o , s i n c e f a i l u r e t o do so could be i n t e r p r e t e d a s a t a c i t agreement t o n a t i o n a l i z a t i o n s . Sweden d i d n o t submit any such exp lana t ion b u t h a s , on t h e o t h e r hand, never e x p l i c i t l y suppor ted a n a t i o n a l i z a t i o n p o l i c y .

3.2 Trade l i b e r a l i z a t i o n

Swedish p r e f e r e n c e s f o r developing c o u n t r i e s were in t roduced i n 1972. I n 1977 they were extended and a t t h e same t ime d u t i e s were abo l i shed on a few t r o p i c a l p roduc t s such a s c o f f e e . Thus, ove r 90 p e r c e n t of Swedish impor ts from t h e developing c o u n t r i e s and 99 p e r c e n t of impor ts from t h e l e s s developed c o u n t r i e s were imported f r e e of d u t i e s .

The government i s i n favour of p ro longa t ion of t h e GSP system beyond t h e envisaged t e n yea r pe r iod which w i l l come t o an end 1981. However, t h e y mainta in t h a t it i s n o t f e a s - i b l e t o ex tend t h e system t o a l l p roduc t s which t h e develop- i n g c o u n t r i e s wish t o expor t . Products such a s shoes and t e x t i l e s w i l l con t inue t o be excluded. No doubt , t h e Swedish shoe, t e x t i l e and garment i n d u s t r i e s have exper ienced s e r i o u s import compet i t ion d u r i n g r e c e n t y e a r s . However, most of t h e Swedish shoe and garment impor ts come from t h e EEC and EFTA c o u n t r i e s whereas impor ts from t h e TW a r e s t i l l smal l .

3.3 - Commodities

The I n t e g r a t e d Commodity Programme h a s been f a r l e s s con- t r o v e r s i a l i n Sweden t h a n t h e measures aiming a t l i b e r - a l i z a t i o n o f t r a d e wi th manufactures. Secure a c c e s s t o mine ra l s u n a v a i l a b l e i n Sweden t o r ea sonab le p r i c e s i s no doubt of i n t e r e s t t o t h e Swedish economy. Thus, Swedish suppor t of commodity agreements h a s been a c t i v e and t h e Government h a s c o n t r i b u t e d about US$1.4 m i l l i o n t o t h e r e c e n t l y e s t a b l i s h e d Fund.

A s r ega rds e f f o r t s t o s t a b i l i z e expor t incomes, Swedish a c t i v i t y h a s been low. According t o t h e Government such measures should be complementary t o o t h e r commodity measures only .

3.4 Code of Conduct f o r Linear Conferences

I t is indeed r a r e t h a t t h e Swedish Government has comple te ly r e fused t o acced-e t o a demand from t h e Thi rd World. The Code of Conduct f o r Linear Conferences i s however one such case . V i t a l Swedish i n t e r e s t s could be t h r e a t e n e d i f t h e code were r a t i f i e d . Swedish sh ipp ing h a s so f a r ea rned v a l u a b l e f o r - e i g n exchange and s i n c e it is mainly geared a t c r o s s t r a d e it could be h a r d l y h i t by t h e proposed d i v i s i o n of t h e market among d i f f e r e n t groups of c o u n t r i e s .

However, t h e i n i t i a l f i r m s t a n d a g a i n s t t h e code now seems t o s o f t e n a s t h e EEC c o u n t r i e s appear prepared t o a c c e p t t h e code wi th c e r t a i n exemptions.

3.5 F i n a n c i a l and monetary m a t t e r s

Sweden h a s a c t i v e l y suppor ted a t t a i n m e n t of t h e 0.7 p e r c e n t t a r g e t f o r a i d and improvement of t h e c o n d i t i o n s , such a s unty ing and i n c r e a s e of t h e g r a n t e lement . I n f a c t , it h a s been po in t ed o u t by Swedish r e p r e s e n t a t i v e s t o t h e o t h e r DAC Members t h a t u n l e s s t h e y improve t h e i r c o n d i t i o n s , Sweden may encounter d i f f i c u l t i e s i n con t inu ing h e r compara t ive ly generous a i d programme much longe r .

A s i n d i c a t e d above, t h e Swedish one p e r c e n t goa l has been reached. About 85 p e r c e n t of t h e a i d i s u n t i e d , t h e g r a n t

element was 99.8 p e r c e n t i n 1977 and a l l a i d t o l e a s t developed c o u n t r i e s i s given a s g r a n t s .

Sweden was a l s o f i r s t t o respond t o t h e demand f o r w r i t i n g o f f d e b t s . That i n i t i a t i v e h a s l a t e r been fol lowed by a c t i o n s by most i n d u s t r i a l i z e d c o u n t r i e s . While Sweden wrote o f f abou t U S $ 0.25 b i l l i o n , t h e t o t a l amount w r i t t e n o f f i s now es t ima ted t o US$4.5 b i l l i o n .

A fundamental demand from t h e TW concerns s e c u r i t y and con- t i n u i t y i n f i n a n c i a l f lows. The Swedish p o s i t i o n a s r ega rds "automat ic" t r a n s f e r s v i a a l l o c a t i o n of S p e c i a l Drawing R igh t s i s t h a t t h e ma t t e r should be reviewed by t h e IMF i t s e l f , an i n s t i t u t i o n i n which t h e TW demands h a r d l y have any chance of be ing acceded t o i n view of t h e p r e s e n t des ign of t h e d e c i s i o n making machinary.

However, t h e r e is a growing awareness of t h e eve r - inc reas ing in terdependence between t h e i n d u s t r i a l i z e d c o u n t r i e s and t h e Thi rd World. Th i s h a s manifes ted i t s e l f i n s e r i o u s e f f o r t s t o f i n d a formula f o r massive t r a n s f e r s of r e s o u r c e s t o t h e Th i rd World.

A s h i f t i n g ba l ance?

The most impor tant s t e p s t aken so f a r i n o r d e r t o a s s i s t t h e TW c o u n t r i e s i n improving t h e i r p o s i t i o n a r e i n t h e f i e l d of a i d . Deepening and widening of c o n t a c t s between t h e TW and Sweden have i n some q u a r t e r s been contemplated a s an a l t e r - n a t i v e t o c l o s e r c o n t a c t s w i th o t h e r i n d u s t r i a l i z e d count - r i e s - a means of s ecu r ing a more independent p o s i t i o n . However, economic r e a l i t i e s , o r maybe t h e f e a r of a s h i f t i n g ba l ance , implying t h a t t h e TW could become a t h r e a t t o our own i n t e r e s t i n s t e a d of a p a r t n e r w i th which mutual ly bene- f i c i a l c o n t a c t s could be developed, appears t o have prevent - ed f u r t h e r s t e p s t o be t aken i n t h a t d i r e c t i o n .

Pa radox ica l ly , whi le Sweden's i n t e g r a t i o n i n t o t h e world economy h a s i nc reased s u b s t a n t i a l l y , p u b l i c op in ion does n o t appear t o have r e a l i z e d t h a t c o n d i t i o n s o u t s i d e ou r own coun t ry do concern us . Our i n t e r n a t i o n a l s o l i d a r i t y seems t o be sha l low and t h e r e f o r e f r a g i l e . When so l i t t l e h a s been done t o t h e b e n e f i t of t h e TW dur ing a p e r i o d of p r o s p e r i t y , it may be d o u b t f u l i f we w i l l even manage t o mainta in smal l conces s ions made, should t h e economic s i t u a t i o n t h r e a t e n t o become even more complex and unfavourable .

Table 1: Swedish Imports/exports in 1971 and 1976 class category (SITC).

1971 SITC Section 7s distrib. of Share of

total imports/ TW imports/

Appendix 1 ified by commodity

1976 X distrib. of Share of total imports/ TU imports/

exports exports (7s) exports exports (7.)

0. Food & live animals 8.7 / 2.4 30 / 2 7.3 / 2.2 36 / 9 1. Beverages & tobacco 1.1 / 0.1 6 1 - 0.8 / 0.1 6 1 2 2. Crude materials 4.6 / 18.2 18 / 3 4.1 / 15.5 13 / 4 3. Mineral fuels 12.2 / 0.9 37 / - 17.6 / 1.5 40 / 1 4. Oils & fats 0.6 / 0.3 10 / 30 0.3 / 0.2 19 / 43 5. Chemicals 8.6 / 4.0 3 1 8 8.1 / 5.0 2 1 7 6. Manufactured goods 21.8 / 25.8 5 / 8 18.7 / 24.8 6 / 8 7. Machinery & transport

equipment 30.8 / 42.2 0.21 14 31.1 / 44.2 0.81 23 8. Miscell. manufactures 11.4 / 5.5 8 / 3 11.7 / 6.1 15 / 5

Total 100 1100 / 9 100 I100 / 14

Source: OECD Trade by Commodities (1971) and (1976).

Appendix 2 Development Assistance Fiscal Year 1977178

(Appropriate US$ million)

Contributions to International Development Assistance UNDP IDA Other multilateral contributions

Sub-total

Bilateral Development Cooperation through SIDA Recipient countries Emergency aid Other

Sub-total

Information in Sweden Administration

Percentage distribution of aid to recipient countries fiscal year 1977178

Vietnam 19.9 Ethiopia 4.0 Cuba 2.0 ~anzania 15.4 Sri Lanka 4.0 Laos 2.0 India 13.7 Angola 2.8 Pakistan 1.7 Bangladesh 6.3 Botswana 2.8 Cap Verde 1.7 Mozambique 5.7 Guinea-Bissau 2.8 Somalia 0.9 Zambia 4.6 Portugal 2.3 Lesotho 0.6 Kenya 4.6 Tunisia 2.3 Swaziland 0.6

Total: 100

Source: Sweden's Policy for International Development Cooperation - Extracts from the Budget and Finance Bill for Fiscal Year 1978179.

References

Aktuellt i Handelspolitiken 1979:Z

Development Cooperation 1978 Review Efforts and Policies of the Members of the Development Assistance Committee. OECD, Paris 1978.

Hans Ekdahl, Kan fattigdomens kretslopp brytas? U-lznderna, Sverige och Industrin (Could the Vicious Circle of Poverty be Broken? The Developing Countries, Sweden and the Industry). Federation of Swedish Industries 1978.

~emspr~ksundervisning i grundskola och gymnasieskola vecka 11 1978. (Teachers in Mother Tongue Languages in Comprehensive and Integrated Upper Secondary School). Specialinformation frsn So, P 1 1978:15.

Per-Martin Meyerson, Fsretagens ~tlzndksa Direktinvesteringar. Motiv och ~yssels~ttnin~seffekter. (Direct Private Investments Abroad - Motives and Employment Effects). Federation of Swedish Industries, Stockholm 1976.

Sweden's Policy for International Development Co-operation - Extracts from the Budget and Finance Bill for Fiscal Year 1977178.

Birgitta Swedenborg, Den svenska industrins investeringar i utlandet (Direct Invest- ments Abroad Made by Swedish Manufacturing Industry). The Industrial Institute for Economic and Social Research. Uppsala 1973.

Industrins utlandsproduktion och export (Manufacturing Abroad and Export of Swedish Industry) in Ds Ju 1979:2 vlgar till okad vzlfzrd (Ways to Increased Welfare).

Sveriges Riksbank, Betalningsbalansen for tredje kvartalet 1978 (The Central Bank, The Balance of Payment for the Third Quarter 1978).

Sveriges Riksbank Forvaltningsber?ittelse 1977 (The Central Bank, Annual Report 1977).

Trade by Commodities 1976, OECD.

UN Statistical Yearbook 1976.

1977 World Bank Atlas.

Sui te de l a page 1

s ' e s t d6veloppb pvincipalement SUP La base de la sol idari t6 internationale; see dbbours ont augment6 rapidement ces dernisres annges e t ont a t t e i n t 0,99% du PNB en 1977. ALors que Ie changement de gouvernement en 1976 n'a pas apporti de changements dans l e niveau ou l e s motivations de l 'a ide , certaines modifications s e sont produites Sans son orientation. Examinant l e s positions relativement progressistes de la Suede en ce qui coneerne Zes revendieations du Tiers Monde, 'L'art'icle conclut en se demandant s i Z1internationali.sation de lr6conomie su6doise e t la comp6tit ivit6 croissantes de certains de see partenaires dans l e Tiers Monde ne f in i ra pas par Stre percue come une menace pour les in t&rZts suedois e t eon- duire 2 des changements dans l e s re lat ions entre la Suede e t l e Tiers Monde.

UNE FRANCE NOUVELLE: SES ORIENTATIONS DANS SES RAPPORTS AVEC L E TIERS MONDE p a r Ngo Manh Lan e t M iche l Beaud c/o l!go Kanh Lan

\ A s s o c i a t i o n des Economistes du T i e r s Monde) 1, r u e du P o r t Galand

F-92220 Bagneux, France

Langue o r i g i n a t e : F ranca is

Resume: Du. 25 au 27 septembre 1978, s ' e s t tenu a l1Universit6 de Paris-VIII Vincenms, un coltoque SUP la France e t l e Tiers Monde. II a r h n i , sous l e s auspices de L'Association des Economists du Tiers Vonde, plus des deux cents univers i ta ires , chercheurs, responsables de la CFDT, de la CGT, de la FEN, du PC. du PS, du CEDETIM, a ins i qu'une quarantaine de participants Venus des autres pays d 'Europe, d lAsie , dlAfrique e t drAm&que lat ine . Parmi l e s prineipaux themes abord6s figuraient l e s polit iques indus t r i e l l e s e t eommereiales, l e s mati2res premieres, l'immigration, la coop6ration, l a d e t t e e t l e systems mongtaire. Les rapporteurs sup ces themes, duns Fordre 6nonc6, 6 taient l e s professeurs M . Beaud, G. de Bernis e t C. Palloix - pour l e premier theme - J.M. Chevalier, A. Cordeiro, 3. Masini e t S. de Brunhof, Deux membres du co'Llectif d'organisation du colloque risument -id l e s grandes Zignes de ce t t e re f l ex ion co l l ec t i ve sur l e s t w i s premiers des themes c i t e s , a ins i que sur l e NOEI. Leur synthese dimontre l e s p o s s i b i l i t i s de f a c t i o n syndicate e t polit ique sans cacher l e s contradictions qui se pr6sentent duns Zes re lat ions des membres des syndicats e t des part is de gauche avea leurs "fr2res1' du Tiers Mamie, Un dossier S U P " l ' imp~rt .a l isme franfais", 6 p m t i r des travaux du colZoque, a paru dans Le Monde Diplomatique ( m e m h r e 1978) e t lee documents du coZloque parattront aux Presses Universitaires de Grenoble en septembre 1079.

A NEW FRANCE: THE ORIENTATIONS OF I T S RELATIONS WITH THE T H I R D WORLD

Abstract: A colloquium on "France and the Third World" uas held a t the University o f Paris-IT11 Vinoennes from 25 to 27 September 1978 under the auspices of the Association of Third World Economists. I t was attended by more than two hundred participants from France: academics, researchers, trade union o f f i c i a l s (CFDT, CGT, F E N ) , mil-itants from the French Communist and Soc ia l i s t Parties, and members o f CEDETIM; and by about forty participants from other European countries and the Third WnrZd. The main themes diseussed ineZuded: industr ial and commercial policies, r m materials, immigration, aid, debt and the monetary system. The rap- porteurs on these themes, i n the order l i s t e d , were Professors M . Beaud, G . de Ber'nis and C . Palloix - for the f i r s t theme - J.M. Chevalier, A. Cordeiro, J . Masini and S. Brunhof. Two members of the co l l ec t i ve which organized the eo'Llo- quium summarize here the main l ines of the discussion on the f i r s t three themes,

as we22 as on the NIEO. Their synthesis shous the poss ib i l i t i e s for action by union and party mil i tants of the l e f t , without evading the contradictions uhich arise i n the relat ions of these with the i r Third World "brothers", A dossier en t i t l ed "L1imp6rialisme frarqaisl' based on the proceedings of the co'Ltoquiwn appeared i n Le Monde Diplomatique (November 1978), and the colloquiisn papers uill be published by Presses Universitaires de Grenoble i n September 1979.

UNANUEVA F R A N C I A : L A O R I E N T A C I O N DE SUS R E L A C I O N E S CON E L TERCER MUNDO

Reswnen: De 25 a 27 de Septiembre de 1978 t w o lugar en la Universidad de Paris- VI I I Vincennes, un coloquio sobre Francia y e l Tercer Mundo. Organizado bajo 20s auspicios de la Associaci6n de Economistas del Tereer Mundo e l reuni.6 a m& de doscientos universitarios, investigadores y miembros responsables de 20s sindi- catos franceses CFDT, CGT y FEN, a mil i tantes del Parti-do Cormwistu y del Partido Socialists franceses y a miembros del CEDETIM, bien como a mas de cuarenta participantes de otros paises de Europa, Asia, Africa y Ameriea L a t h . De 20s principales temas abordados destaearanse: polit ieas indnstriales y comerciales; materias primas, i.migraciOn, cooperaci6n economics, deuda y sistema monetario. Los relatores sobre es tes temas fueron, por orden, 20s Profesores M . Beaud, G. de Bernis and C. Palloix - sobre e l primer terna - J . M. Chevalier, A. Cordeiro, 3. Masini and S. de Brunhof.

En e l presente trabajo, dos miembros del colectivo que organis6 e l eoZoquio, reswnen las grandes Zinias de la discusi6n sobre 20s t res primeros temas citados, y sobre e l NIEO. Estu s i n t e s i s dernuestra la posibilidade de una aceion social y polities, s in eseonder las eontradicciones en las relaciones de 20s miembros de sindicatos 74 partidos pol i t icos de izquierda de 20s paises industrializados con sus llhemams" del Tercer W o . Basandose en los trabajos del eoloquio, "Le Monde Diplomatiquefl de Novienibre de 1979 public6 un "dossier" t i tu lado "Lrimp6rialisme franfais". Ademds los docmentos del eoloquio seran pubtieados por "Presses Universitaires de Grenoble" en Septiembre de 1979.

Ngo Manh Lan et Michel ~eaud.*/

UNE FRANCE NOUVELLE : SES ORIENTATIONS DANS SES RAPPORTS AVEC LE TIERS MONDE

Le diagnostic est sans ambiguTte : le capitalisme francais reste un imperialisme. Pour certains, ce terme est flou ; pour d'autres, i1 releve plus du discours militant que de l'analyse rigoureuse. Priicisons done : c'est un systeme politique, econon~ique, culture], done aussi militaire, qui permet de prelever un surplus de valeur des classes ouvrieres et des paysanneries des pays oil 11 continue 2 exercer sa domination directs ou indi recte.

Du fai t de son histoire, 1 ' imperialisme francais possede sa zone d'influence privilegiee : les DOM-TOM d'abord (auxquels doit Stre reconnu, sans aucune 1 i - mitation, 1e droit a l'autodetermination ou a l'independance) ; 1'Afrique franco- phone ensuite oil, avec l'implantation des groupes miniers et industriels, 1es ventes d'armes, l'enchainement par le credit, 1es multiples formes de "coop6ration", les interventions militaires, etc., s'epanouit le neocolonialisme. Ailleurs, les groupes francais ne sont presents qu'a l'abri de la domination d'un autre im- perialisme le plus puissant : l'americain.

Car 11imp6rialisme francais fait partie d'un systeme imperialiste mondial domine par la puissance americaine. Au sein de ce systeme, i1 occupe une place seconde, avec un autre imperialisme declinant (Ie britannique) et deux imperialismes vivaces (japonais et allemand). 11 est de plus en plus dans une situation de dependance : 1es groupes industriels francais s'allient de plus en plus aux groupes americains (nucleaire, informatique, et automobile) ; c'est mane le cas des groupes financiers Suez allie a Morgan, Lazard et Paribas a la Bank of America, Empain-Schneider a Westinghouse lequel reste dans l'orbite de Mellon. L'industrie francaise est plus penetriie par le capital etranger que l'industrie allemande et infiniment plus que l'industrie japonaise (laquelle l'est relativement peu). Dependance aussi pour l'approvisionnement en petrole, qui l'oblige a faire des acrobaties au Moyen- Orient ; dependance encore pour l'uranium enrichi, pour l'approvisionnement en aliments pour 1e betail, pour les t6letransmissions par satellites, pour l'acces aux banques de donnees, pour le lancement des satellites, etc.

L'imp6rialisme franqais, a la fois secondaire et dependant, n'a plus des lors c o m e issue, s'il ne veut pas etre condamn6 au declin (compte tenu notamment de la poussee des peuples et pays du Tiers Monde) qu'a accepter 1e role de relais : par example c'est a travers IBM France qu'IBM est present dans nombre de pays dlAfrique, dlAm@rique Latine et dlEurope ; en 1975, les banques americaines ne detenaient directement en Afrique que 5 succursales, mais a travers leurs filiales en France, elles detiennent desormais environ 500 filiales ou succursales en Afrique.

Ce role de relais ne se limite pas a cette dimension strictement @conomique, mais s'etend aux domaines poli tique, diplomatique, et, bien silr, militaire.

Pour tous ceux qui continuent a penser qu'une amelioration de la qualite et de la

s e c u r i t @ de l a v i e , que des p rogres dans l e s domaines de l a l i b e r t e , de l a d6- mocra t ie , de l ' e q u i t e passent p a r une avanc6e vers l e soc ia l i sme, e t done p a r une r u p u r e avec 1e cap i ta l i sme, une conc lus ion s ' impose : l a n e c e s s i t e absolue, i pour ce a, de rompre avec l ' i m p e r i a l i s m e . C 'es t -a -d i re , d ' u n cote, de r e c o n q u 6 r i r une marge de manoeuvre m in ima le p a r r a p p o r t i l a puissance amer ica ine ; de l ' a u t r e , de rompre avec t o u t e s 1es formes de prelevement e t d ' e x p l o i t a t i o n des peuples.

Pour y p a r v e n i r , l ' i d e a l i s m e ou l a bonne v o l o n t e ne s u f f i s e n t pas. Car I e syst6me c a p i t a l i s t s mondia l a c re6 une s i t u a t i o n dans l a q u e l l e malgre l e s l i e n s fon - damentaux de s o l i d a r i t y q u i l e s m i s s e n t , e x i s t e n t des c o n t r a d i c t i o n s e n t r e 1es t r a v a i l l e u r s de France e t 1es c lasses e x p l o i t e e s du T i e r s Monde. Une negotiation de n a t u r e d i f f e r e n t e d e v r a i t a l o r s s 'engager e n t r e un gouvernement de gauche en France (ou d ' a u t r e s pays c a p i t a l i s t e s ) e t l e s gouvernements du T i e r s Monde, e t d ' a b o r d ceux p o r t e u r s des a s p i r a t i o n s r 6 v o l u t i o n n a i r e s de l e u r s c lasses o u v r i e r e s e t de l e u r s paysanner ies. 11 s ' a g i r a i t de d e f i n i r ensemble 1es p r i n c i p e s e t l e contenu d 'une Charte de coopera t ion a n t i i m p 6 r i a l i s t e qu i , dans l e s d i f f e r e n t s domaines (energ ie , p r o d u i t s de base, d6veloppement, s p e c i a l i s a t i o n i n d u s t r i e l l e e t a g r i c o l e , sc ience e t techno log ie ) , f i x e 1es o b j e c t i f s , e labore l e s @tapes, dec ide des mesures immediates, e t c e l a en tenan t compte a l a f o i s des s i t u a t i o n s e t des i n t e r g t s des peuples e t des c lasses p r o d u c t r i c e s de tous 1es pays concern&.

Ce p r o j e t peu t se p repare r des a u j o u r d ' h u i pa r I e renforcement de l a s o l i d a r i t e e t des a c t i o n s a n t i - i m p e r i a l i s t e s . Un c e r t a i n nombre de p r o p o s i t i o n s se son t degagees des t r a v a u x du co l loque . Nous en presentons i c i c e l l e s concernant :

. La p o l i t i q u e i n d u s t r i e l l e e t commerciale ;

. Les mat ie res premieres ;

. L ' i m m i g r a t i o n e t l e s t r a v a i l l e u r s immigres ;

. Le Nouvel Ordre Economique I n t e r n a t i o n a l .

I. PROPOSITIONS EN MATIERE INDUSTRIELLE ET COMMERCIALE

A. P r o p o s i t i o n s d ' a c t i o n immediate

11 f a u t f a i r e t o u t e sa p l a c e a l ' a c t i o n synd ica le , e t c e l a a q u a t r e n iveaux :

( a ) Ce lu i des f i r m e s t r a n s n a t i o n a l e s elles-mgmes. Quelques synd ica ts i n t e r n a t i o n a u x regroupent d e j 5 des t r a v a i l l e u r s europ6ens, des t r a v a i l l e u r s amer ica ins etii,unmoindre degre, des t r a v a i l l e u r s du T i e r s Monde. La p r i n c i p a l e d i f f i c u l t e , i c i , e s t d ' e x p l i q u e r en quo i 1es l u t t e s menees dans une us ine f r a n c a i s e peuvent concerner l e s l u t t e s menees dans une a u t r e u s i n e de l a meme f i r m e dans l e T i e r s Monde, ou en quo i 1es premieres s o n t concernees p a r l e s secondes. Le combat s y n d i c a l r e j o i n t i c i l e combat p o l i t i q u e a n t i - i m p e r i a l i s t e pour l e d r o i t v e r i t a b l e a l a l i b e r t e s y n d i c a l e dans l e s pays du T i e r s Monde, e t pour l a p r @ s e r v a t i o n e t l ' e x t e n s i o n des d r o i t s syndicaux dans l e s pays ca- p i t a l i s t e s . I 1 e x i s t e s u r ce p o i n t un t e r r a i n 00 l e s l u t t e s pour l e s manes me xi st ants ou menaces) t r a d u i r o n t s u r l e p l a n de l a conscience po- l i t i q u e l e s bases o b j e c t i v e s de l a s o l i d a r i t e des t r a v a i l l e u r s du monde, i n s - c r i t e s dans l e developpement du c a p i t a l i s m e .

( b ) Ce lu i des sec teurs ou des branches q u i son t d i rec tement marques p a r I e redeplo iement i n d u s t r i e l . La p r i n c i p a l e ques t ion , i c i , e s t d ' a p p r e c i e r l e s

consequences des d i f f e r e n t e s f i l i s r e s de developpement des f o r c e s p roduc t i ves , e t de s a v o i r q u e l l e s peuvent e t r e l e s i n f l u e n c e s des l u t t e s conjuguees en France (ou dans d ' a u t r e s pays c a p i t a l i s t e s ) e t dans I e T i e r s Monde sur l e c h o i x de ces f i l i e r e s e t l e u r s consequences.

( c ) Au n iveau n a t i o n a l , l ' a c t i o n s y n d i c a l e se man i fes te su r d i f f e r e n t s themes :

. L u t t e r en France m6me c o n t r e t o u t e a c t i o n s y n d i c a l e conduisant a l a d i v i s i o n de l a c lasse o u v r i e r e ;

. Refuser l a remise en cause de ce q u i a e t e conquis p a r 1es t r a v a i l l e u r s f r a n c a i s , sous l e p r e t e x t e de l a c r i s e mondia le ;

. L u t t e r pour un nouveau type de developpement conforme a l a f o i s aux besoins des t r a v a i 1 l e u r s des pays c a p i t a l i s t e s avances e t des peuples du T i e r s Monde ;

. E x p l i q u e r sans r e l a c h e aux t r a v a i l l e u r s f r a n c a i s 1es j u s t e s l u t t e s menees p a r 1es peuples du T i e r s Monde, e t l u t t e r pour que l e u r s v i c t o i r e s s o i e n t payees s u r l e p r o f i t , e t non s u r 1e n iveau des s a l a i r e s , en p a r t i c u l i e r l u t t e r c o n t r e t o u t e s l e s formes de p ro tec t ionn isme q u i ne peuvent que d i v i s e r l e s t r a v a i l l e u r s e t a c c r o l t r e 1es p r o f i t s .

(d ) En f in , l ' a c c e n t a e t e mis, au cours du co l loque , s u r l ' i m p o r t a n c e de l ' a c t i o n reg iona le , en p a r t i c u l i e r au n iveau europeen pour :

. Empscher que l 1 i m p 6 r i a l i s m e f r a n c a i s ne t r o u v e une a l t e r n a t i v e a ses f a i - b lesses en s e f u s i o n n a n t dans l ' i m p 6 r i a l i s m e europeen ;

. C o n t r e c a r r e r d i rec tement c e t i m p e r i a l i s m e europeen q u i ne p e u t qu 'aggraver l ' e x p l o i t a t i o n des peuples.

P l u s largement, on a evoque - sans q u ' i l s o i t p o s s i b l e de r e v e n i r , dans l e s l i m i t e s de ces doss ie rs , s u r tous problSmes que c e t t e q u e s t i o n souleve - l ' u n i t e d ' a c t i o n a 1 ' e c h e l l e de l a " c l a s s e o u v r i e r e mondia le" , concept avance p a r l e s p ro fesseurs G. de B e r n i s e t C h r i s t i a n P a l l o i x , q u i suppose une u n i f o r m i s a t i o n c r o i s s a n t e des r e v e n d i c a t i o n s des c lasses o u v r i s r e s du T i e r s Monde e t des pays c a p i t a l i s t e s a- vances, dans l e cadre du processus inacheve de l a mise en p l a c e des m6canismes g lobaux e t t ransna t ionaux des grandes f irmes i n d u s t r i e l l e s .

L ' a c t i o n s y n d i c a t e n ' e s t pas l a seule. Au n iveau p o l i t i q u e , I e c o l l o q u e a f f i r m e l a n e c e s s i t e d 'un s o u t i e n permanent aux a c t i o n s des peuples q u i v e u l e n t se l i b e r e r de 1 ' imper ia l i sme, en p a r t i c u l i e r l o rsque I e gouvernement f r a n c a i s e s t d i rec tement engage. I 1 sou l igne , en ou t re , l a n e c e s s i t e de denoncer syst@matiquement tous l e s aspects i m p 6 r i a l i s t e s de l a p o l i t i q u e f r a n c a i s e :

( a ) Denonc ia t ion du contenu i m p e r i a l i s t e des r e l a t i o n s d i r e c t e s e n t r e l a France e t l e s pays du T i e r s Monde, ce q u i i m p l i q u e en p a r t i c u l i e r :

Une r e o r i e n t a t i o n de l a coopera t ion ;

L ' a f f i r m a t i o n du d r o i t a 1 1 a u t o d 6 t e r m i n a t i o n ou a l ' independance des DOM-TOM ;

L ' a r r 6 t des ventes d'armes.

( b ) Denonc ia t ion de l ' i n s e r t i o n de l a France dans l e reseau mondial de I ' i m - p e r i a l i s m e . C e l l e - c i se m a n i f e s t e dans l ' a c c u e i l rese rve aux inves t i ssements e t rangers , dans l a p o l i t i q u e de redeplo iement , dans l a p o l i t i q u e d ' e x p o r t a t i o n 2 t o u t p r i x . Le c o l l o q u e n ' a pas r e u s s i , en revanche, a t r o u v e r un accord s u r l a q u e s t i o n europeenne en f o n c t i o n des analyses theor iques d i f f e r e n t e s des p a r t i c i p a n t s .

( c ) Denonc ia t ion du contenu i m p e r i a l i s t e des posi t i 'ons de l a France au s e i n des o r g a n i s a t i o n s i n t e r n a t i o n a l e s , q u ' e l l e s se m a n i f e s t e n t dans des organismes de g e s t i o n de 1 ' i m p 6 r i a l isme que s o n t l e s i n s t i t u t i o n s f i n a n c i s r e s e t moneta i res i n t e r n a t i o n a l e s , ou dans des conferences i n t e r n a t i o n a l e s 06 l e s pays im- p e r i a l i s t e s se r e f u s e n t 2 t o u t e n e g o c i a t i o n s e r i e u s e e t v e r i t a b l e avec l e s pays du T i e r s Monde s u r un Nouvel Ordre Economique I n t e r n a t i o n a l .

( d ) A f f i r m a t i o n de l a s o l i d a r i t e avec 1 'ensemble des t r a v a i l l e u r s o r i g i n a i r e s du T i e r s Monde (e i n f r a , s e c t i o n 111) .

B. P r o p o s i t i o n s d 'une a u t r e p o l i t i q u e de coopera t ion

T r o i s p o i n t s e s s e n t i e l s m e r i t e n t d l & t r e i c i rappor tes .

1. La n e c e s s i t e d 'une Char te de l a coopera t ion e laboree en l i a i s o n avec l e s pays du T i e r s Monde ayan t une s t r a t e g i c d ' independance n a t i o n a l e . C e t t e c h a r t e d o i t en p a r t i c u l i e r exp r imer une r u p t u r e r a d i c a l s avec l ' i m p e r i a l i s m e , c ' e s t - a - d i r e l ' a r r e t des pre levements de v a l e u r sous forme de s u r p l u s du t r a v a i l , de r e n t e , ou de p l u s - va lue en provenance du T i e r s Monde. Ceci d e v r a i t se t r a d u i r e p a r une augmentation n o t a b l e des p r i x des m a t i e r e s premieres e t l a suppress ion du pre levement de l a r e n t e .

2. Une t e l l e r u p t u r e d o i t cependant r e s p e c t e r deux c o n d i t i o n s :

. E l l e d o i t se f a i r e dans des c o n d i t i o n s t e l l e s q u ' e n b e n e f i c i e n t des peuples du T i e r s Monde, e t non des b o u r g e o i s i e s q u i en p r o f i t e r a i e n t pour se r e n f o r c e r (e i n f r a s e c t i o n I V ) .

. E l l e d o i t se f a i r e sans casser l e fonct ionnement de l ' a p p a r e i l p r o d u c t i f f r a n c a i s q u i p r i v e r a i t l e s t r a v a i l l e u r s f r a n c a i s de l e u r s moyens de v i v r e , ce q u i i m p l i q u e des d e l a i s auss i c o u r t s que p o s s i b l e , mais q u i p e r m e t t r o n t 1es t r a n s f o r m a t i o n s s t r u c t u r e l l e s necessa i res .

11 e s t done necessa i re qu 'une n e g o c i a t i o n a i t l i e u , ce q u i sou l@ve l e probleme de s a v o i r avec q u i negoc ie r . Or, beaucoup de gouvernements du T i e r s Monde ne r e - p r e s e n t e n t que l e s i n t e r e t s des bourgeo is ies , a l l i e e s souvent aux i n t e r e t s im- p e r i a l i s t e s , e t q u i c o n t r o l e n t l e s o r g a n i s a t i o n s s y n d i c a l e s l o r s q u e c e l l e s - c i e x i s t e n t . Le c o l l o q u e s o u h a i t e a p p r o f o n d i r ces d i f f i c u l t & e t ce probleme dans des d i s c u s s i o n s e t recherches communes avec 1 ' A s s o c i a t i o n des Economistes du T i e r s Monde (AETM), notamment. Ceci concerne l e p o i n t de s a v o i r avec q u i negoc ie r , mais a u s s i s e l o n a u e l l e s m o d a l i t e s .

3 . Un gouvernement decide a rompre avec l ' imp6rialisme, devra i t rompre avec l a pratique constante de celui-ci de cho i s i r s a pol i t ique exter ieure en fonction des necess i tes in ternes de l'economie. Un aut re comportement cons i s t e r a i t a s e donner a la fo i s des contra in tes internes en fonction de l 'emploi e t des contra in tes ex- te rnes en fonction des exigences d'un Nouvel Ordre Economique In ternat ional , de l e s rendre compatibles grace a une pol i t ique qui d e f i n i r a i t 2 l a f o i s :

. Un nouveau type de croissance V ;

. Un nouveau type de r e l a t i ons in ternat ionales .

11. PROPOSITIONS DANS LE DOMAINE DES MATIERES PREMIERES

A. Le premier probleme, souvent pose par l e s pays du Tiers Monde, e t auquel une reponse c l a i r e d o i t e t r e apportee, e s t celui de l a revalor isa t ion du prix des ma- t i e r e s premieres. Les regimes e t s t ruc tu re s de c lasses sont f o r t d i f f e r en te s d'un pays du Tiers Monde a u n au t r e : i1 e s t done d i f f i c i l e d 'a f f i rmer une s o l i d a r i t y globale en t r e tous 1es Eta ts - notamment dans l e domaine des prix - s o l i d a r i t e qui s e r a i t fondee su r 1e carac tere uniformement progress is te de leurs revendications. Toutefois, i 1 e s t important de rechercher l e s conditions de base d 'une s o l i d a r i t y indispensable qui , malgre ses ambiguftes, r e s t e fondamentalement d i r igee contre l ' imperialisme.

Le colloque e s t parvenu a une premiere conclusion que l e pr ix in ternat ional d'un produit d o i t e t r e tendanciellement representa t i f de ce qu ' i 1 f a u t depenser s o i t pour renouveler ce produi t , s o i t pour fabr iquer un produit qui 1ui e s t subs t i t uab le , dans l e but de repondre a une demande soc i a l e e t aux besoins in ternes de developpe- mentL/. - Ce pr incipe , qui pa ra i t valable au niveau in t e rna t iona l , d o i t e t r e nuance lo r s - q u ' i l s ' a g i t de l a gestion e t de l a va lor isa t ion des r ichesses d 'un pays donne, dans son cadre nat ional . Chaque pays d o i t a lo r s pouvoir determiner son rythme de production, en fonction de ses ob jec t i f s de developpement a long terme; i1 dy- termine par 12 meme, l a valeur q u ' i l accorde a ses ressources na tu re l l e s , con- formement au principe de l a souverainete na t ionale su r ses propres r ichesses . 11 s e r a i t d ' a i l l e u r s souhaitable que ce second principe s o i t p r i s en compte dans l a f i xa t ion des pr ix internationaux.

Ces deux principes doivent 6 t r e affirm&, mais toute revendication s u r l a revalor isa- t i on du pr ix des matieres de base devra remettre en cause, au m6me moment, non seulement l a s t ruc tu re de r epa r t i t i on de l a rente af fyrente a chaque produi t , mais aussi l a s t ruc tu re de r epa r t i t i on des revenus in ternes a l a France (ou a d ' au t r e s pays c a p i t a l i s t e s avances).

B . Une seconde l igne d 'ac t ion , plus d i f f i c i l e parce que souvent i l l u s o i r e , v i s e r a i t a assurer un rneilleur cont ro le des firmes t ransnat ionales , e t d'abord en

I / Rapports de Jean-Louis Moyne, s e c r e t a i r e de l a CGT, e t de Michel Rolant, s e c r e t a i r - de l a CFDT, au colloque. Voir aus s i , Edmond Maire, "Pour un nouvel Ordre Economi- que In t e rna t iona l " , Le Monde Diplomatique, novembre 1978 e t Dossier FIPAD 4.

2/ Intervention du professeur Sid-Ahmed Abdelkaker, de l a SONATRACH, au cours du - debat en commission.

ex igean t d ' e l l e s - sous forme b i l a t e r a l e ou m u l t i l a t e r a l e - des i n f o r m a t i o n s r e e l l e s concernant l e u r s c o n d i t i o n s d 'approv is ionnement e t l e u r s touts.

d ' E t a t chant ,

Une t r o i s i e m e l i g n e d ' a c t i o n c o n s i s t e r a i t a encourager l a s i g n a t u r e d 'accords a E t a t de facon a l i m i t e r 1es e f f e t s du j e u i n d i v i d u a l i s t e des f i r m e s cher - p a r tous l e s moyens, 2 r e a l i s e r des p r o f i t s 2 c o u r t terme. De t e l s accords

s o n t revendiques p a r p l u s i e u r s pays du T i e r s Monde. 11s ne s a u r a i e n t en aucune facon C t r e consideres comme des remsdes m i r a c l e , mais i l s r e n d r a i e n t p o s s i b l e , 2 p l u s i e u r s n iveaux, l a r e d u c t i o n des d e s e q u i l i b r e s .

Des accords de ce genre, q u i supposera ien t l e l i b r e c h o i x des p a r t e n a i r e s , cons- t i t u e r a i e n t des cadres 2 l ' i n t e r i e u r desquels s e r a i e n t o rgan ises 1es echanges de personnes, de b iens e t de s e r v i c e s , s u r l a base du r e s p e c t des p r i n c i p e s de l a souvera ine te e t de l ' i n t e r 6 t mu tue l .

Dans l e cas de l a France, ces accords p e r m e t t r a i e n t , en o u t r e , d ' u t i l i s e r de facon p l u s e f f i c a c e l e s vec teu rs p u b l i c s e x i s t a n t s e t d ' e x e r c e r un c o n t r i j l e p l u s r e e l s u r l e s f i r m e s t r a n s n a t i o n a l e s . Les " t r a n s f e r t s " de techno log ie , e n f i n , p o u r r a i e n t 6 t r e assures s u r des bases a u t r e s qu 'exc lus ivement commerciales e t c o n c u r r e n t i e l l e s , condu isan t a un v e r i t a b l e t r a n s f e r ! du c o n t r i j l e e t de l a m a i t r i s e de processus techno log iques .

111. PROPOSITIONS CONCERNANT LA POLITIQUE D'IMMIGRATION

Un consensus assez l a r g e a e t 6 obtenu pour a f f i r m e r l a n e c e s s i t e de m e t t r e en avan t l e mot d ' o r d r e de l ' e g a l i t e de d r o i t s e n t r e t r a v a i l l e u r s na t ionaux e t immigres, d ' e n f a i r e un axe i m p o r t a n t de l a l u t t e a engager, en p a r t i c u l i e r c o n t r e l e rac isme e t 1e chauvin isme q u i tenden t 2 s ' a c c r o i t r e . Ce mot d ' o r d r e d o i t s 'accompagner d ' u n c o r - pus d ' a u t r e s r e v e n d i c a t i o n s su ivan tes :

A. L ' a f f i r m a t i o n du d r o i t d ' e x p r e s s i o n e t d ' a s s o c i a t i o n pour l e s t r a v a i l l e u r s e t rangers , avec l a consequente a b o l i t i o n des d e c r e t s d ' a v r i l e t de septembre 1939 s u r l e s a s s o c i a t i o n s d i t e s "et rangGres" e t l a l evee des l i m i t a t i o n s appor tees au regroupement de t r a v a i l l e u r s e t r a n g e r s dans 1es a s s o c i a t i o n s du t y p e 1901. I 1 ne s e r a i t pas q u e s t i o n d 'autonomie d ' o r g a n i s a t i o n s de t r a v a i l l e u r s immigres s u r l e t e r r a i n s y n d i c a l , personne n ' a y a n t defendu c e t t e p o s i t i o n l o r s du debat s u r l a " reconnaissance de l ' a u t o n o m i e des o r g a n i s a t i o n s de t r a v a i l l e u r s immigr6s" . Se lon l e s defenseurs de c e t t e autonomie, c e l l e - c i p o r t e r a i t seulement s u r 1e t e r r a i n des l u t t e s h o r s e n t r e p r i s e s e t s p e c i f i q u e s l a c o n d i t i o n de t r a v a i l l e u r immigre e t 6 t ranger .

B. Quant aux d r o i t s p o l i t i q u e s , on p o u v a i t , au cours du debat en commission, d i s t i n g u e r deux p o s i t i o n s opposees : T u n e defendant l ' a c q u i s i t i o n de d r o i t s p a s s i f s e t a c t i f s s u r 1e p l a n e l e c t o r a l ( c e c i j u s q u ' a u x e l e c t i o n s p r e s i d e n t i e l l e s de 1981), l ' a u t r e c e n t r a i t I ' e x e r c i c e de ces d r o i t s , p r i o r i t a i r e m e n t , s u r l e pays d ' o r i g i n e . 11 s e m b l e r a i t que s i l a seconde p o s i t i o n r e l e v e de l a s o l i d a r i t e o b j e c t i v e e n t r e t r a v a i l l e u r s , l a p remie re se comprend a p a r t i r des l i e n s e n t r e d r o i t s p o l i t i q u e s e t d r o i t s soc iaux , dans l e cadre de l a c i t o y e n n e t e n a t i o n a l e . Les t r a v a i l l e u r s immigres e t a n t p a r t i e p renan te de ces d r o i t s soc iaux , i 1 s e r a i t necessa i re que 1es d r o i t s p o l i t i q u e s ayan t t r a i t aux l i e u x de res idence , a l a v i e ho rs e n t r e p r i s e s s o i e n t p r i s e n c o i p t e au n i veau des m u n i c i p a l i t e s , 2 l o i n s t a r de ce q u i se f a i t d e j a en Suede.

C. L ' a f f i r m a t i o n de l a "1 i b e r t e de c i r c u l a t i o n e t d ' e t a b l issement" a s u s c i t e de ser ieuses reserves de l a p a r t des o r g a n i s a t i o n s synd ica les e t de l e u r s r e - p resen tan ts au co l loque . S i c e t t e r e v e n d i c a t i o n , 2 c o u r t terme, semble d'emblee non adequate, a l o n g terme e t dans 1e cadre d ' u n reamenagernent des r a p p o r t s b i - l a t e r a u x e t m u l t i l a t e r a u x de l a France, i 1 f a u d r a i t t e n i r compte d 'une p r i o r i t 6 d ' o b j e c t i f s , en p a r t i c u l i e r ceux d 'une p l a n i f i c a t i o n democratique. Tant que s u b s i s t e r o n t l e s e c a r t s de developpement i n e g a l , une t e l l e r e v e n d i c a t i o n s u s c i t e r a des reserves. D ' a u t r e s 1 ' o n t maintenue, mais en 1 ' a s s o r t i s s a n t de son c o r o l l a i r e necessa i re : l e d r o i t de v i v r e e t de t r a v a i l l e r au pays.

IV. LE NOUVEL ORDRE ECONOMIQUE INTERNATIONAL (NOEI)

Le c o l l o q u e n ' a pas manque d ' a n a l y s e r 1es ambigu'l'tes q u i sous- tendent l a l u t t e pour un Nouvel Ordre Economic I n t e r n a t i o n a l . Que l que s o i t 1e domaine aborde, c e l u i - c i e s t s u s c e p t i b l e d ' i n t e r p r e t a t i o n s p r o g r e s s i s t e s , ou r e a c t i o n n a i r e s , c a r ce mot d ' o r d r e t r a d u i t un r a p p o r t de f o r c e s e n t r e pays du T i e r s Monde e t pays i m p e r i a l i s t e s - assez d e c i s i f pour l ' i m p o s e r , mais encore t r o p f r a g i l e e t f l u c t u a n t pour en f a i r e l e contenu.

Quelques exemples l e montrent . Les " t r a n s f e r t s " de t e c h n o l o g i e repondent b i e n aux besoins d ' i n d u s t r i a l i s a t i o n du T i e r s Monde. Mais i l s t r a n s m e t t e n t auss i de nou- veaux l i e n s de dependance l a i s s a n t echapper t o u t un ensemble de branches au con- t r b l e n a t i o n a l , s u r t o u t dans des pays oG l ' i n d u s t r i a l i s a t i o n a connu un rythme r a p i d e (Mexique, B r e s i l , Coree du Sud, e t c . ) .

Encore p l u s f r a p p a n t e s t l e cas des mat ie res premieres. Quelques grandes f i r m e s t r a n s n a t i o n a l e s c o n t r o l e n t l e s p r i n c i p a u x m i n e r a i s s t r a t e g i q u e s ( l a b a u x i t e , l e c u i v r e , e t c . ) a tous l e s s tades de l ' e x t r a c t i o n , de l ' e x p l o i t a t i o n e t de l a commerc ia l i sa t ion , se lon une i n t e g r a t i o n v e r t i c a l e u .

Les rythmes de p r o d u c t i o n a g i s s a n t s u r l e s p r i x mondiaux, son t determines moins en f o n c t i o n de l a demande mondia le q u ' e n f o n c t i o n du m a i n t i e n e t du re levement du taux de p r o f i t , s u r t o u t en per iode d ' i n f l a t i o n e t de c r i s e . Ces phenomenes " i n - v i s i b l e ~ " aggravant 1es t r a n s f e r t s de surp lus au d e t r i m e n t des pays du T i e r s Monde, c reusen t davantage l e s e c a r t s e t i n e g a l i t e s de developpement e n t r e eux.

Le processus t r a n s n a t i o n a l des grandes f i r m e s exerce, en o u t r e , des e f f e t s de d i s - l o c a t i o n des s t r u c t u r e s neo-co lon ia les e t dependantes de ces pays. I 1 en r e s u l t e que l e s pouvo i rs p o l i t i q u e s des bourgeo is ies l o c a l e s , menacees p a r 1e mecontentement p o p u l a i r e , se d e s t a b i l i s e n t d'eux-memes, amenant c e l l e s - c i a chercher 2 r e a j u s t e r e t a renegoc ie r l e u r s l i e n s de dependance.

F a u t - i l pour a u t a n t r e j e t e r l e mot d ' o r d r e du NOEI pour i n s i s t e r s u r l a n e c e s s i t e de r e s t r u c t u r a t i o n s i n t e r n e s du T i e r s Monde? Le c o l l o q u e semble ne pas l e penser pour l e s r a i s o n s su ivan tes :

. Les r e v e n d i c a t i o n s du NOEI, s i ambigues s o i e n t - e l l e s , f o n t r e s s o r t i r l a n6- c e s s i t e de t r a n s f o r m a t i o n s i n t e r n e s dans l e s pays du T i e r s Monde g dans 1es pays i m p 6 r i a l i s t e s pour m e t t r e f i n au c o n t r b l e de l ' economie mondia le p a r

l/ C f . US Counc i l on I n t e r n a t i o n a l Economic P o l i c y , Spec ia l Report , C r i t i c a l - Imported M a t e r i a l s (Washington: 1975).

les monopoles transnationaux.

. Elles font eclater les contradictions internes des pays du Tiers Monde. Elles amenent les bourgeois locales 2 se demasquer par des reculs ou concessions, sinon les capitulations, qu'elles font devant les "assauts" de llimp@rialisme (refus de negocier, mesures dilatoires ou de diversion, concessions mineures ou de forme, etc.), ou encore, au mieux, 2 se "radicaliser", ce qui aura pour effet de 1es rendre davantage comptables devant leurs peuples.

Elles soulignent que des mesures 6conomiques prises par les bourgeoisies 10- cales, m@me les nationalisations, sont inefficaces si elles ne s'appuient pas sur des pouvoirs politiques nationaux ayant rompu tout lien ombilical avec les puissances imperialistes. Elles ne prendront tout leur sens et ne s'approfondiront qu1appuy6es par une progression, assortie d'etapes d6- cisives, vers une independance et une liberte de decision reelles par rapport au systeme imperialiste mondial.

Une France qui s'engagerait dans la transition au socialisme, reprendra done sur des nouvelles bases la lutte pour un Nouvel Ordre Economique International. Mais e11e lui donnera une dimension qu'elle n'a pas pu avoir jusque-la. Chacun des succes de cette lutte se traduira alors inevitablement par un renforcement de 1 ' independance nationale de la France et des mouvements de 1 iberation (pol itique, economique et culture1 le) du Tiers Monde.

*/ NGO Manh Lan est membre du Conseil de la FIPAD, du Cornit@ executif de 1'AETM - et du Cornit6 d'orientation du projet tiers syst6me; Michel Beaud est pro- fesseur d'economie politique a l'universite de Paris VIII - Vincennes.

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ENVIRONMENT AND DEVELOPMENT STRATEGI ES l' by Fundaci 6n B a r i 1 oche C a s i l l a de Correo 138 San Car los de B a r i l o c h e Prov. de R i o Negro, A r g e n t i n a

Abstract: A conceptual framework o f the environment u i t h i n uhich a l t e rna t i ve development s t ra t eg i e s may be considered i s developed i n the paper. The opera- t i ona l d e f i n i t i o n o f the environment o f any human system (person, group, soc i e t y , mankind) requires t he adoption o f a point o f v ieu , t he adoption o f a l e ve l o f d e t a i l o r resolu t ion , and. t he spec i f i ca t i on of tne l e ve l o f aggregation o f the human system under1 consideration. Unless those condit ions are f u l f i l l e d , the term ''human environment" may bg ambiguous o r even meaningless. The human environ- ment can be c l a s s i f i e d according t o d i f f e r e n t leg i t imate c r i t e r i a , and it i s ne i t he r reduced t o t he biophysicochemical nor t o t he concept o f nature . The i nc lu s ion o f the soc ia l components i n t h e concept i s l og i ca l l y and epistemologi- c a t t y necessary. Var iab i l i t y i n t h e precise contents o f the term environment among s o c i e t i e s i s a natural consequence o f the d i v e r s i t y i n the ob j ec t i ve and subjec t ive components o f the human environment. A conceptual frameuork cnaracter- i z i n g t he human environment a t d i f f e r e n t l e v e l s *om the indiv idual person to mankind, and including t he meaning o f se l f - re l iance and human adaptness i n re la- t i o n t o t h e environment, i s proposed. The appl icat ion of t h i s f rmeuork t o the consideration o f development s t r a t e g i e s a t t he national l e ve l a t t ous the i den t i - f i c a t i o n o f fea tures c r i t i c a l l y l inked t o environmental consequences, i n r e l a t i o n to / , i t W - L I I environment o f the soc i e t y , the ex ternal environment, and the environment o f t he human subsystems composing the soc i e t y . I t i s shown t h a t it i s f eas ib l e t o assess t he potent ia l environmental impacts a t the generalized l eve l o f development s t ra t eg i e s , we l l above t h e usual l e ve l o f indiv idual develop- merit projec ts , and t ha t s a t i s f a c t i o n o f human needs and harmony u i t h t he environment cannot be separated conceptually or s t r a t e g i c a l l y .

I/ A 13-page summary paper ( i n b o t h E n g l i s h and Spanish) o f t h i s p r o j e c t , a long - w i t h two t e c h n i c a l annexes ( i n E n g l i s h ) e n t i t l e d b i o l o g i c a l concept o f env i ronment ( 7 7 pages) and Quo ta t ions concern ing e n v i ronment and some r e l a t e d concepts i n eco logy ( 7 8 pages) a r e avai l a b l e f rom t h e B a r i l o c h e Foundat ion. Work i s a l s o i n p rog ress on methodo log ica l lessons t o be o b t a i n e d f rom an a n a l y s i s o f a s e t o f case s t u d i e s .

AMBI ENTE Y ESTRATEGIAS DE DESARROLLO

Resumen: En es t e trabajo se desarrolla un mareo eoneeptml del ambient@ para la considerueibn de estrategias de desarrollo a l t emat i vas . La defi-meibn operativa del ambiente de euatquier sistema humano (persona, gmpo, sociedad, humanidad) requiere de la adopc-ion de un punto de v i s ta , de la adopeibn de un nivel de de ta l l e o resolucibn, y de la espeeificaei6n del n ivel de agregaeibn del sistema hmano considerado. Salvo que se cumplan estas eondiciones, la frase ambiente humano puede ser ambigua e ineluso earente de signifieado. El ambiente humano puede ser c las i f ieadc de aeuerdo a di ferentes c r i t e r ios validos, y no se reduce a lo biof'isieoquimieo n i a2 coneepto de natwaleza. La inelusibn de 20s com- ponentes sociales dentro del coneepto es neeesaria tanto l6giea eomo epistemo- lbgieamente. La variabilidad del contenido exaeto de la palabra ambiente entre di ferentes soeiedades es una eonsecueneia natural de la diversidad tunto de 20s componentes obje t ivos como subjetivos del ambiente humano. Se propone un rnareo conceptual ineluyendc to. earaeterizaeibn del ambiente humano a di ferentes niveles desde la persona individual hasta la humanidad, as'i eomo e l signifieado ambiental de la autodependencia y la adaptabilidad humana. La aplicaeibn de e s t e rnarco conceptual a la eonsideraci6n de estrategias de desarrollo de nivel naciona2 permite la. ident i f ieaeibn de 20s aspectos vinoulados critieamente a conseeueneias ambientales, en relacion a t d i e n t e f-isico de l a sociedad, a1 ambiente extemo, y al ambiente de 10s subsisternas humanos que componen la soeiedad. Se muestra l a f a c t i b a d a d de evaluar 10s impactos ambientales potenciales a l n i ve l general de estrategias de desarrolZo, m y por encirna del n i ve l usual de proyectos in- dividuales de desarrollo, as'i eomo que la sat is faeeibn delasneeesidades humanas y la armonia con e l ambiente no pueden ser separadas n i conceptual n i estratd- gieamente.

I / Un resurnen de e s t e proyecto (de 13 paqinas en Ingles/Espanol) acornpanado por - dos anexos t e c n i c o s (en l n g l e s ) t i tu l idos The b io logica l concept of environ- ment (77 paginas) y Quotations concerning environment and some re la ted concepts i n ecology (78 paginas) es tan a l a disposicibn de 10s interesados en l a Fundacion Bariloche. Tambien prosigue e l t r aba jo sobre lecciones metodol6gicas a sacar del a n i l i s i s de un conjunto de casos concretes estudi ados .

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THE ARAB W O R L D : AM E L I G I B L E CASE F O R C O L L E C T I V E S E L F - R E L I A N C E by Ahmed A . Sha laby T h i r d World Forum P.O. Box 43 , Orman C a i r o , Egypt.

O r i g i n a l l anguage : E n g l i s h

Abstract: A number of elements would support the proposal o f the 21-country Arab region as an e l ig ib le case for cot tect ive se l f - re l iame (CSR) : a common language and cultural heritage, an expression of po l i t i ca l solidam-ty and w i l l for u n i f i - cation, substantial human, natural and financial resources unevenly dis tr ibuted such that no s ingle country i s resource-rich i n a l l three -important areas, and an increasing dependence on the Centre and especially on the s t a b i l i t y o f the in ter- national cap i ta l i s t system. Considered elements of d i f f e ren t ia t ion also e x i s t : population and geographical s i ze , per capita GiVP and type of socio-economic system. These may feed competition and ine f f ec t i ve use of resources i f S tates continue the t r a d i t i o m l l y "separate" country development s trategies , eharacteri- zed by Centre-dependence, e l i t i sm and inequal i ty . Such national features need, houever, not be unduly s igni f icant i n a neu strategy o f endogenous, se l f -re l iant , just and pca"tioipatory development. Past in tegrat ion attempts have been inef fee- t i v e . Cooperation and integrat ion measures and the plethora of i n s t i t u t i o n s for impZementation, evidence a faulty approach t o integration based on fac i l i ta t ing trade between externally dependent countries.

A new strategy will demand a clear po l i t i ca l choice, protracted struggle a t a l l levels and c a l l s for people's participation i n i t s de f in i t ion and implementation. Important and feasible areas of co l l ec t i ve self-reliance i n the Arab region l i e ¥i food produetion, science and technoZogica1 cooperation, Arab multinational ventures and cooperative buying arrangements. To succeed these must be backed by detailed s tudies and a po l i t i ca l wi l l t o implement.

Resume: Un certain nombre d'6lements pendent possible I'autonomie co l l ec t i ve ' c o l l e c t i v e self-re'i'iance') des 21 pays du monde &e: une tongue e t un hevi- tage e u l t w e l eommuns, t'expression dfune sol idari t6 polit ique e t d'une volont6 d fun i f i ea t ion , des ressowces humai-nes, nature'Ll-es e t financi2res r ipar t i e s inegalement e t de t e l l e sor ts qufaucun pays n ' e s t b ien dot6 duns l e s t r o i s domaines d l a fo is , de mSme que 'La dipendance accrue 6 l f6gard du centre e t en p a r t i ~ ~ l i e r de la stabil-i te du syst2me cap i ta l i s t e international. Parmi l e s di f ferences f i g w e n t l e poids dimographique e t la superf ic ie , l e produit par t S t e e t Zes syst2mes socio-6conomiques. Ces dernievs el6ments peuvent contribuer ii l a eon- currence e t d l a mauvaise u t i l i s a t i o n des yessources s i Zes Etats poursuivent Zes s trat6gies conventionnelles de d6veloppement nationaux s&par&s, dont Zes

caracteristiqxes sont l e s dependence 6 L'kgard du centre, I ' e l i t i sme e t 1 'inega- l i t e . I t s n'auraient cependayzt pas grande s-ignz^ieation duns urn nouvelZe strategic de dheloppement, comptant d'abord sur les propres forces de la swGtI2 qui s ' y engagerait ( ' s e l f - r e l i a n t t ) , ey./]og&e, juste e t part ie ipat i f . Les e f f o r t s dr-intQgration pass&s se sont r&StSs ine f f i caces .

Les t en ta t i ves de coop6ration e t d' integration, a ins i que la f iethore ins t i tu t ion- e l l e rev2lent en fa i t l a faiblesse f i n e demarche bases sur la simple expansion des echanges entre pays dependants.

line nouvelle stratbgie requiert des ehoi.x polit iques c la i r s e t imp2iqu.e une l u t t e prolongee tous les niveaux e t la participation des masses duns sa d e f i n i t i o n e t sa mise en oeuvre. Des dornaines importants se prStant 2 la ' co l l ec t i ve s e l f - reliance' duns l e monde arabe sont la production alimentaire, l a coop&ation seient i f ique e t teehnologique, des entrepvises m u l t i n a t i o d e s arabes e t des structures d'aehat cooperatives. Le succ2s &ge des etudes dI2ta-tllees e t une volonti polit ique d'action.

L A AUTONOMIA COLECTIVA : UNA P O S I B I L I D A D REAL EN E L MUNDO ARABE

Resumen: Un e ie r to n h e r o de elementos hacen posible la autonomia en e l mondo &abe : Entre ell-os un idioma y una herencia cul tural comunes; la expresion de una solidaridad pol i t ica y de una voluntad de unif'icaci6n; recursos humanos, naturales y finanzeros repartidos desigualmente y de t a l forma que ningun pais posede a la vez todos eses reeursos; e l aumento de la dependencia con respecto a2 Centro, sobretodo dependencia respeeto a la estabilidad del sistema capitalists intemiacional. Las diferencias son : e l peso demogr&f-ico, la s u p e r f i d e , e l pro- dueto per capita, y 20s sistemas socio-eeonomicos en los varies poises. D i - ferencias que pueden s in duda conduc'ir a la concurreneia entre paises drabes y a l errado uso de 20s v&os recursos, ST. 20s Estados adoptan estrategias convencionales para fomentar desarrollos naeionales separados, dependentes del Centro, e l i t i s t a s y designates. S in embargo ta le s naeionalismos no tendrian s i p i f i c a d o en e l marco de una nueva es trategia de desarrol-lo que contara en primer luqar con las propias fuerzas de la sociedad que la adoptara ("sel f -re l iance") , una es trategia endogena, justa y participativa. LOR esfuerzos de integracion anteriores quedaron s i n e fecto , y las tentat ivas de cooperacion y de integracion, bien como la pletora institutional revelan la deb-ilidad de una pol i t ica basada w i e m e n t e sobre la expansion del comercio entre parses dependentes.

Una nueva es trategia pol i t ica requiere eleeciones pol i t icas claras y hace necesaria una luta pol i t ica a todos 20s n'iveles, bien como la participaci6n de las masas en su def inie ion y su promoci6n.

Dentro del mundo h a b e 20s compos importantes en que se podria praticar l a "col lect ive self-reliance" serian 'la produceic5n alimenticia, la cooperacion c i e n t i f i c a y tecnologica, Zas empresas multinacionales c?va~e.s y las estructuras cooperativas de eompra.

El ex i t0 exige estudios rnirruciosos y voluntad politics de a c c 2 n .

Ahmed A. Shal aby

THE ARAB WORLD; AN E L I G I B L E CASE FOR COLLECTIVE SELF-RELIANCE

I . FOREWORD

The purpose o f t h e p resen t paper i s t o demonstrate t h e n e c e s s i t y f o r a s h i f t t o - wards an independent development s t r a t e g y i n t h e Arab w o r l d a t bo th coun t ry and r e g i o n a l l e v e l s , and t o p o i n t ou t some general d i r e c t i o n s f o r a c t i o n towards such a s h i f t . A t t h e coun t ry l e v e l , development e f f o r t s over t h e p a s t two decades may be c h a r a c t e r i z e d as l a r g e l y dependent, e l i t i s t and unequal. A t t h e r e g i o n a l l e v e l , t h e Arab peop le share a common language and c u l t u r a l h e r i t a g e , express a f e e l i n g of p o l i t i c a l s o l i d a r i t y and common purpose, and possess most o f t h e elements neces- s a r y f o r independent development a t t h e r e g i o n a l l e v e l . However, a11 p a s t e f f o r t s a t economic i n t e g r a t i o n have been i n e f f e c t i v e , i n s p i t e o f t h e e x i s t e n c e o f ve ry e l a b o r a t e governmental and non-governmental i n s t i t u t i o n a l arrangements f o r i n t e g - r a t i o n , u n p a r a l l e l e d i n any o t h e r T h i r d World r e g i o n . We conclude t h a t t h e f a i l u r e o f t h e i n t e g r a t i o n e f f o r t i s n o t so much due t o the l a c k o f p r o p e r i n s t i - t u t i o n a l arrangements, b u t t o a f a u l t y s t r a t e g y grounded i n t o t a l dependency on t h e Centre - p o l i t i c a l l y , economica l l y and c u l t u r a l l y . Th is dependency i s mani- f e s t e d a t t h e coun t ry and r e g i o n a l l e v e l s .

We argue f o r a fundamental s h i f t i n development s t r a t e g y a t t h e c o u n t r y l e v e l t o - wards s e l f - r e 1 i a n t , p a r t i c i p a t o r y and j u s t development. However, no s i n g l e Arab coun t ry possesses a1 1 t h e necessary p r e - r e q u i s i t e s f o r independent development, i n s e p a r a t i o n f rom o t h e r Arab c o u n t r i e s . Thus, t h e r e i s a need f o r Arab c o l l e c t i v e s e l f - r e l i a n c e t o make s e l f - r e l i a n c e p o s s i b l e a t t h e n a t i o n a l l e v e l , and t o h e l p c r e a t e a v i a b l e and independent Arab n a t i o n i n t h e l o n g e r term.

A c a l l f o r an Arab development s t r a t e g y based on s e l f - r e l i a n c e and c o l l e c t i v e s e l f - r e l i a n c e would f a l l i n t h e rea lm o f w i s h f u l t h i n k i n g i f i t i s n o t based on a f i r m p e r c e p t i o n o f t h e n e c e s s i t y f o r l ong- te rm s t r u g g l e a g a i n s t n a t i o n a l and i n t e r - n a t i o n a l fo rces which suppor t and b e n e f i t f rom t h e p resen t p a t t e r n s o f dependency.

The concept o f c o l l e c t i v e s e l f - r e l i a n c e

C o l l e c t i v e s e l f - r e l i a n c e i n v o l v e s movement i n two d i r e c t i o n s : i n t r a - T h i r d World coopera t ion and T h i r d World s o l i d a r i t y v i s - a - v i s t h e Centre. On t h e f i r s t l e v e l , we note t h a t a n a t i o n a l s e l f - r e l i a n t s t r a t e g y r e q u i r e s v a r y i n g l e v e l s o f d e l i n k i n g f rom t h e Centre. Th is may impose severe s a c r i f i c e s on t h e coun t ry a d o p t i n g such a s t r a t e g y , whether i n meet ing t h e immediate consumption needs o f i t s peop le o r i n o b t a i n i n g t h e necessary resources f o r a c c e l e r a t e d devel opment o f i t s p r o d u c t i v e c a p a c i t i e s . These s a c r i f i c e s may be very s e r i o u s - almost unacceptable i n smal l resource-poor c o u n t r i e s . Here, c o l l e c t i v e s e l f - r e l i a n c e emerges as a way o u t o f these d i f f i c u l t i e s . I t i n v o l v e s expanding h o r i z o n t a l i n t r a - T h i r d World l i n k s t o t h e mutual b e n e f i t o f a l l .

On the second l e v e l , i . e . s o l i d a r i t y v i s - a - v i s t h e Centre, i t should be no ted t h a t i n t h e i r s t r u g g l e f o r t o t a l d e c o l o n i z a t i o n and i n t h e i r more immediate s t r u g g l e t o g e t a b e t t e r deal i n t h e i r r e l a t i o n s w i t h t h e Centre, T h i r d World c o u n t r i e s need t o maximize t h e i r p o l i t i c a l and economic power. To t h e degree t h a t these coun t - r i e s succeed i n c o l l e c t i v e l y m o b i l i z i n g t h e i r p o t e n t i a l sources o f power, they wi 11 succeed i n m o d i f y i n g t h e i n t e r n a t i o n a l o r d e r t o t h e i r advantage.

There a r e s i g n i f i c a n t p o s s i b i l i t i e s f o r c o l l e c t i v e s e l f - r e l i a n c e a t the sub- r e g i o n a l , r e g i o n a l and T h i r d World l e v e l s . E f f o r t s a t t h e t h r e e l e v e l s a r e l i k e l y t o s t r e n g t h e n each o t h e r and have t o be pursued s imu l taneous ly . However, i t seems reasonable t o hypo thes ize t h a t s i n c e t h e degree o f economic and c u l t u r a l homoge- n e i t y i s l i k e l y t o be g r e a t e r a t sub-regional and r e g i o n a l l e v e l s , c o l l e c t i v e s e l f - r e l i a n c e a t these l e v e l s i s l i k e l y t o be more o p e r a t i o n a l and t o go deeper than o v e r a l l T h i r d World c o l l e c t i v e s e l f - r e l i a n c e . Arab c o l l e c t i v e s e l f - r e l i a n c e i s a case i n p o i n t .

11. THE ARAB WORLD: FACTORS OF HOMOGENEITY AND DIFFERENTIATION

The Arab w o r l d i s a g e o g r a p h i c a l l y cont inuous area - i n t e r r u p t e d o n l y by I s r a e l - bound by t h e Arab G u l f i n t h e East , the A t l a n t i c Ocean i n the West, t h e M e d i t e r - ranean Sea i n t h e North and t h e I n d i a n Ocean i n t h e South. I t c o n s t i t u t e s 21 c o u n t r i e s , a1 1 o f which have sea o u t l e t s . The area i s r i c h i n m i n e r a l resources, t h e most i m p o r t a n t o f which i s o i l concen t ra ted ma in ly i n t h e G u l f area, A l g e r i a and L ibya .

F i r s t and foremost among t h e f a c t o r s t h a t make f o r t h e homogeneity o f the Arab w o r l d i s t h e Arab ic language, which has con t inued t o be t h e v e h i c l e o f Arab c u l t u - r a l i n t e r a c t i o n f o r c e n t u r i e s . U n l i k e t h e case i n many T h i r d World reg ions , t h e A r a b i c language has never been rep laced by the languages o f c o l o n i a l powers. U n t i l today i t con t inues as t h e language o f c u l t u r e , sc ience and a d m i n i s t r a t i o n . A l l l i t e r a t e Arabs, f rom Bahra in t o Casablanc , w r i t e and read t h e same language. There a re some v a r i a t i o n s i n l o c a l spoken d i a l e c t s , b u t even most o f those a r e understood across t h e Arab reg ion .

C l o s e l y r e l a t e d t o t h e common language i s a common Arab c u l t u r e . Whether i n l i t e - r a t u r e and p o e t r y , o r i n c u l t u r a l forms such as cinema and t h e a t r e , t h e audience i s spread a l l over t h e Arab wor ld . Con t inu ing a l o n g t r a d i t i o n , t h e everyday movement and i n t e r a c t i o n o f Arab a r t i s t s , i n t e l l e c t u a l s , j o u r n a l i s t s , teachers and workers across t h e r e g i o n i s a f a c t o f l i f e . As a m a t t e r o f f a c t p o l i t i c a l boundar ies, as such, never e x i s t e d i n t h e Arab w o r l d b e f o r e c o l o n i a l i s m ; people t r a v e l l e d f r e e l y w i t h i n t h e area f o r c e n t u r i e s . F o r t u n a t e l y , t h e c o l o n i a l h i s t o r y o f t h e Arab area i s r e l a t i v e l y s h o r t ; some c o u n t r i e s s u f f e r e d f rom i t o n l y f o r t h e p e r i o d between t h e two World Wars w h i l e o t h e r s , l i k e Saudi A rab ia and Nor thern Yemen, never exper ienced i t a t a l l . As a r e s u l t - w i t h t h e e x c e p t i o n o f s e t t l e r c o l o n i a l i s m i n A l g e r i a and P a l e s t i n e - European c o l o n i a l i s m d i d n o t r e s u l t i n a se r ious d i s c o n t i n u i t y i n the h i s t o r y and c u l t u r e o f t h e Arab people. Even i n t h e above two cases, t h e people o f A l g e r i a succeeded i n t h e i r way o f l i b e r a t i o n and engaged i n an a c t i v e A r a b i s a t i o n campaign, w h i l e t h e P a l e s t i n i a n people a r e among the most dynamic fo rces i n Arab c u l t u r a l and p o l i t i c a l l i f e .

On t h e p o l i t i c a l l e v e l , t h e r e i s a f e e l i n g o f s o l i d a r i t y and common purpose among t h e Arab people which extends back i n h i s t o r y a t l e a s t t o t h e t ime o f t h e r i s e o f I s lam. I n modern t imes t h e s t r u g g l e a g a i n s t c o l o n i a l i s m has c o n t r i b u t e d t o t h i s f e e l i n g o f s o l i d a r i t y , which expressed i t s m a t e r i a l m a n i f e s t a t i o n d u r i n g t h e e a r l y a n t i - Z i o n i s t s t r u g g l e i n P a l e s t i n e , t h e 1956 Suez War, t h e A l g e r i a n war o f l i b e r a - t i o n and t h e 1967 and 1973 A r a b - I s r a e l i Wars. A c t u a l l y , t h e p o l i t i c a l u n i t y o f the Arab w o r l d - e i t h e r f e d e r a l o r con federa l - has f i g u r e d as t h e pr ime t a r g e t f o r severa l n a t i o n a l i s t pan-Arab p o l i t i c a l p a r t i e s o r movements 1 i ke t h e Baath p a r t y , Nasserism, and the Arab N a t i o n a l i s t s Movement. The i d e a o f Arab u n i f i c a - t i o n has never been f o r m a l l y r e j e c t e d by any Arab government, a lmost a l l o f them s t l e a s t p a i d l i p - s e r v i c e t o i t .

T h i s s t r o n g l a t e n t p o l i t i c a l w i l l f o r u n i f i c a t i o n was beh ind the es tab l i shment o f t h e Arab League, t h e p r o l i f e r a t i o n o f i t s o rgan iza t ions and t h e p o l i t i c a l grouping o f Arab governments i n va r ious i n t e r n a t i o n a l f o r a . I t i s a l s o beh ind t h e p r o l i - f e r a t i o n o f non-governmental i n t e r - A r a b o r g a n i z a t i o n s i n v o l v i n g t r a d e u n i o n i s t s , p r o f e s s i o n a l s , and a r t i s t s .

On t h e economic s ide , t h e Arab area as a whole possesses s u b s t a n t i a l n a t u r a l , human, and f i n a n c i a l resources which may p r o v i d e a s o l i d base o f independent, s e l f - c e n t e r e d development. These resources a re unevenly d i s t r i b u t e d i n t h e area. Some c o u n t r i e s a r e r i c h i n m inera l resources, o t h e r s a re r i c h i n s k i l l e d human resources, w h i l e s t i l l another group has a l a r g e l y untapped a g r i c u l t u r a l p o t e n t i a l . No one coun t ry has a l l t h e necessary resources f o r an o v e r a l l ba lanced develop- ment. Th is s t a t e o f a f f a i r s p rov ides a good p o t e n t i a l f o r complementar i ty and c o l l e c t i v e s e l f - r e l i a n c e among t h e Arab c o u n t r i e s - i f they o p t f o r c o l l e c t i v e endogenous Arab development. However, t h i s same c o n d i t i o n may be a f a c t o r o f envy and c o m p e t i t i o n i f they o p t f o r "separa te " coun t ry development and inc reased i n t e - g r a t i o n w i t h t h e Centre.

On t h e o t h e r hand, t h e Arab w o r l d c o n s t i t u t e s a microcosm o f t h e T h i r d World f rom t h e p o i n t o f v iew o f the e x i s t e n c e o f severa l f a c t o r s norma l l y considered as elements o f d i f f e r e n t i a t i o n among these c o u n t r i e s . I n terms o f p o p u l a t i o n , Arab c o u n t r i e s v a r y f rom 228,000 i n Q a t a r t o 40 m i l l i o n i n Egypt; i n geographical area t h e c o u n t r i e s range f rom 663 sq. km. i n Bahra in t o 2 .5 m i l l i o n sq. km. i n Sudan; t h e l a t e s t a v a i l a b l e per c a p i t a GNP f i g u r e s range f rom US$110 I n Somalia t o US$15,480 i n Kuwai t .

More fundamental ly , Arab c o u n t r i e s - a1 though a1 1 under-developed - vary cons ider - a b l y w i t h r e g a r d t o t h e l e v e l o f o v e r a l l socio-economic development. Needless t o say such a l e v e l o f development does n o t correspond t o t h e GNP p e r c a p i t a f i g u r e s , which a re abnormal ly i n f l a t e d by o i l revenues i n t h e sma l l o i l - r i c h - b u t under- developed - c o u n t r i e s .

Arab c o u n t r i e s a l s o va ry w i t h regard t o t h e p r e v a i l i n g socio-economic systems. Some adopted a l a i s s e z - f a i r e economic system, w h i l e o thers op ted f o r a more cent- r a l l y d i r e c t e d system where t h e government and i t s p u b l i c s e c t o r p l a y a l e a d i n g r o l e i n development. He shou ld hasten t o add, however, t h a t - n o t w i t h s t a n d i n g d i f f e r e n c e s i n i d e o l o g y and t h e r o l e o f t h e p u b l i c s e c t o r i n va r ious c o u n t r i e s - a lmost a11 o f them have a s i g n i f i c a n t p u b l i c s e c t o r . I n t h e o i l - r i c h " l a i s s e z - f a i r e " Arab s t a t e s , t h e p u b l i c s e c t o r p l a y s a dominant r o l e i n t h e modern s e c t o r , e s p e c i a l l y i n b o t h e x t r a c t i v e and manufac tu r ing i n d u s t r y .

111. ARAB INTEGRATION EFFORTS SINCE 1945: HISTORY AND EVALUATION

I n 1945 t h e League o f Arab S ta tes was e s t a b l i s h e d by seven Arab c o u n t r i e s . F i f - teen o t h e r s , i n c l u d i n g t h e P a l e s t i n e L i b e r a t i o n Organ iza t ion , j o i n e d l a t e r . The League was formed as a r e g i o n a l o r g a n i z a t i o n aimed a t f a c i l i t a t i n g coopera t ion among t h e member s t a t e s . The es tab l i shment o f the League was a r e l a t i v e l y weak express ion o f t h e t i d e o f t h e Arab peop les ' s t r u g g l e a g a i n s t c o l o n i a l i s m , t h e r e - s i s t a n c e a g a i n s t t h e then emerging Z i o n i s t e n t e r p r i s e , and t h e emerging pan-Arab movement.

The Arab league - even though i t was a m a n i f e s t a t i o n o f an emerging Arab n a t i o n a - l i s t movement - t r i e d t o emulate t h e newly formed U n i t e d Nat ions made up o f

c o u n t r i e s w i t h d i v e r g e n t n a t i o n a l i t i e s , i n t e r e s t s and o u t l o o k s . Thus, t h e League f e l l f a r s h o r t o f the o r i g i n a l hope o f t h e pan-Arab n a t i o n a l i s t s . Those c o u n t r i e s t h a t were more eager t o i nc rease the pace towards Arab u n i t y formed the Counci l f o r Arab Economic U n i t y , o u t s i d e t h e framework o f the League, though rema in ing members o f t h e l a t t e r . It i s i m p o r t a n t t o n o t e t h a t t h e movement towards Arab economic i n t e g r a t i o n i s c l o s e l y r e l a t e d t o t h e p o l i t i c a l pan-Arab movement. I t i s viewed as the m a t e r i a l base f o r Arab u n i t y .

I n t h e f o l l o w i n g , we d iscuss f i r s t t h e i n t e r - A r a b coopera t ion and i n t e g r a t i o n meausres, then the i n s t i t u t i o n a l s t r u c t u r e b u i l t t o under take t h e imp lementa t ion of these measures, and f i n a l l y we assess t h e r e s u l t s o f these e f f o r t s .

A. Cooperat ion and i n t e ~ r a t i o n measures and agreements

T h i s i s n o t t h e p l a c e f o r a comprehensive r e v i e w o f agreements and measures taken by Arab c o u n t r i e s i n t h e l a s t 30 years . H i g h l i g h t i n g t h e s i g n i f i c a n t ones w i l l s u f f i c e . U n t i l 1964, Arab c o u n t r i e s concluded severa l p r e f e r e n t i a l t r a d e and pay- ment agreements, ma in ly b i l a t e r a l . B u t these agreements had ve ry l i m i t e d impac t on t h e i n t e r - A r a b t rade . I n 1964, an agreement was reached between f i v e Arab c o u n t r i e s : S y r i a , I r a q , Kuwai t , Jordan and Egypt , t o e s t a b l i s h an Arab common market . L a t e r , Yemen j o i n e d i n 1967 and Sudan i n 1969. A t p resen t , o n l y t h r e e c o u n t r i e s a r e bound by t h e common marke t agreement: I r a q , S y r i a and Jordan. The agreement was o b v i o u s l y an amb i t i ous a t tempt t o emulate t h e European Economic Community. The r e s u l t s were, however, ve ry meagre.

T r a d i t i o n a l t r a d e - f a c i l i t a t i n g agreements which were e f f e c t i v e i n i n c r e a s i n g t r a d e among h i g h l y developed European c o u n t r i e s a r e h a r d l y r e l e v a n t t o Arab c o u n t r i e s which s u f f e r f rom d i s t o r t e d , uneven and dependent development. F i r s t l y , these agreements mere ly enhance fundamental economic f o r c e s which push towards t h e t r a n s - n a t i o n a l i z a t i o n o f c a p i t a l and, secondly , they a re powerless t o change the funda- menta l dependency r e l a t i o n s h i p embodies i n t h e p r e s e n t unequal d i v i s i o n o f 1 abour . As a r e s u l t and a f t e r a l l a t tempts t o l i b e r a l i z e i n t e r - A r a b t r a d e i n the l a s t 30 y e a r s , such t r a d e s u f f e r e d a r e l a t i v e d e c l i n e f rom 7.2% o f t o t a l Arab f o r e i g n t r a d e i n 1965 t o 4.4% i n 1973.11

P a r t l y as a r e s u l t o f t h e f a i l u r e o f t r a d e l i b e r a l i z a t i o n measures, t h e c u r r e n t t r e n d i n i n t e r - A r a b economic e f f o r t s i s f o r t h e e s t a b l i s h m e n t o f Arab j o i n t ven- t u r e s . Th is i s p resen ted as a move towards p r o d u c t i v e i n t e g r a t i o n i n s t e a d of commercial i n t e g r a t i o n . However, i t may be j u s t i f i a b l e t o express t h e f o l l o w i n g doubts and r e s e r v a t i o n s about t h i s new "s logan" :

. Much o f t h e new inves tmen ts a re concen t ra ted i n t h e f i n a n c i a l s e c t o r (develop- ment funds, i nves tmen t banks, i nsu rance companies, e t c . ) , w i t h v e r y few p h y s i c a l p r o d u c t i o n p r o j e c t s .

. These p r o j e c t s a re conceived i n t h e absence o f an o v e r a l l concep t ion of p l a n - ned Arab i n t e g r a t i o n .

Many o f these p r o j e c t s s u f f e r e d f rom t h e inadequacy o f non-ex is tence o f f e a s i - b i l i t y s t u d i e s , thus many p r o j e c t s have e x i s t e d o n l y on paper f o r s e v e r a l y e a r s .

I/ Abdul-Wahab H . Rashid, Arab Economic I n t e g r a t i o n , (Kuwa i t , Arab P lann ing - I n s t i t u t e , 1977) .

B. I n t e r - A r a b i n s t i ti t u t i o n a l s t r u c t u r e

Arab coopera t ion and i n t e g r a t i o n e f f o r t s i n t h e l a s t 30 years were accompanied by the c r e a t i o n o f a very ex tens ive web o f i n s t i t u t i o n s a t b o t h governmental and non- governmental l e v e l s . Th is i n s t i t u t i o n a l s t r u c t u r e i s probably u n p a r a l l e l e d i n any o t h e r reg ion . We b e l i e v e t h a t t h e apparent i n e f f e c t i v e n e s s o f Arab i n t e g r a t i o n e f f o r t s l i e s , n o t i n t h e l a c k o f c e r t a i n i n s t i t u t i o n a l forms, b u t r a t h e r i n the f a u l t y development and i n t e g r a t i o n s t r a t e g i e s . O f course, these f a u l t y s t r a t e - g ies were r e f l e c t e d i n many cases i n t h e c r e a t i o n o f i n a p p r o p r i a t e i n s t i t u t i o n a l forms, hence a s h i f t i n s t r a t e g y w i l l n a t u r a l l y r e s u l t i n a se r ious overhau l ing of the i n s t i t u t i o n a l s t r u c t u r e e n t r u s t e d w i t h implement ing t h e new s t r a t e g y . However, t h e e x i s t e n c e o f these ex tens ive i n t e r - A r a b i n s t i t u t i o n a l l i n k s , e s p e c i a l l y a t t h e non-governmental l e v e l , can be tu rned i n t o a u s e f u l base f o r Arab c o l l e c t i v e s e l f - r e l i a n c e . The f o l l o w i n g i s a summary v iew o f t h e most i m p o r t a n t i n t e r - A r a b i n s t i t u t i o n s .

a ) In ter-governmental ( a l l c o u n t r i e s ) :

1. Arab League . . . . . . Es tab l i shed i n 1945 . Counci l P o l i t i c a l body . Economic Counci 1 . . . . Members a re Finance and Economy

M i n i s t e r s . General S e c r e t a r i a t .. . . Technical and s u p p o r t i n g s e r v i c e s

2 . Speci a1 i z e d agencies : . I n d u s t r i a l Development Centre Research, t r a i n i n g & t e c h n i c a l s e r v i c e s . A g r i c u l t u r a l Development . . Research and d issemina t ion of i n f o r -

Organ iza t ion mat i on . ALECSO . . .. .. "Arab UNESCO" . Arab Monetary Fund . . . . "Arab IMF"

3. I n f r a s t r u c t u r e and s e r v i c e s I n c l u d e : mai 1, communications, mar i t ime f e d e r a t i o n s . . . . . . t r a n s p o r t , b roadcas t ing , e t c .

b ) In te r -governmenta l ( l i m i t e d membership):

1. Arab Common Market . . . . 2. Organ iza t ion o f Arab Petro leum

E x p o r t i n g Count r ies (OAPEC) . .

1. Economic . J o i n t venture e n t e r p r i s e s . S e c t o r a l i n d u s t r i a l f e d e r a t i o n s

. S e c t o r a l s e r v i c e s f e d e r a t i o n s

2. Non-economi c . P r o f e s s i o n a l f e d e r a t i o n s . .

. Trade un ion f e d e r a t i o n s . .

Presen t members: S y r i a , I r a q & Jordan

Has made p i o n e e r i n g and seemingly success fu l e f f o r t s i n t h e f i e l d o f j o i n t Arab ventures

More than 100 e n t e r p r i s e s I n c l u d e : i r o n & s t e e l , t e x t i l e s , f e r t i l i z e r s , e t c . I n c l u d e : chambers o f commerce, insurance and banking.

I n c l u d e : j o u r n a l i s t s , lawyers, p h y s i - c ians , e t c . Inc ludes s e c t o r a l f e d e r a t i o n s and the General Federa t ion f o r Arab Workers.

C. A c r i t i c a l overv iew o f Arab development a f t e r 1945

I n o r d e r t o understand and e v a l u a t e Arab i n t e g r a t i o n e f f o r t s s i n c e 1945, we have t o analyze development s t r a t e g i e s and t h e i r r e s u l t s a t t h e coun t ry l e v e l , s i n c e t h e h i s t o r y o f t h e p e r i o d i s one o f separa te development i n each c o u n t r y - even i f i t i s i n f l u e n c e d t o v a r y i n g degrees by i n t e r - A r a b e f f o r t s a t coopera t ion and/ o r c o o r d i n a t i o n . I n o t h e r words, Arab i n t e g r a t i o n e f f o r t s , bo th t h e o r e t i c a l l y and p r a c t i c a l l y , a re governed by l o c a l development s t r a t e g i e s .

N a t i o n a l development s t r a t e g i e s i n theArab c o u n t r i e s d u r i n g t h e l a s t 30 years - n o t w i t h s t a n d i n g l i m i t e d at tempts a t economic independence and g r e a t e r e q u a l i t y o f income d i s t r i b u t i o n i n some c o u n t r i e s d u r i n g p a r t s o f t h e above p e r i o d - may be c h a r a c t e r i z e d as l a r g e l y dependent, e l i t i s t and unequal.

Dependency i n v o l v e s economic, c u l t u r a l and p o l i t i c a l aspects. Economical ly , most Arab economies a r e submi t ted t o t h e dominant i n t e r n a t i o n a l d i v i s i o n o f l a b o u r where they s p e c i a l i z e i n p roduc ing p r imary commodities needed a t t h e Centre, w h i l e they depend on t h e Centre f o r bo th consumer and c a p i t a l i n d u s t r i a l goods and, r e c e n t l y , food. Imports from abroad have been expanding ex t reme ly r a p i d l y , both i n abso lu te value and as a percentage o f GDP, e s p e c i a l l y a f t e r the boom i n o i l p r i c e s i n 1973. For example, impor ts as a percentage o f GDP was 44.5% f o r I r a q (1975), 37.1% f o r L ibya (1974) and 33.7% (1973) f o r A l g e r i a . Furthermore, most Arab c o u n t r i e s depended t o a l a r g e e x t e n t on f o r e i g n sources t o f i n a n c e t h e i r development - whether i n t h e form o f f o r e i g n a i d o r f o r e i g n investment . Both f o r e i g n a i d and f o r e i g n investment tend t o f a v o u r dependence on f o r e i g n technology which i s o f t e n i n a p p r o p r i a t e t o l o c a l development needs. C u l t u r a l l y , t h e r u l i n g e l i t e s imposed on the Arab people the most s u p e r f i c i a l aspects o f European c i v i l i - z a t i o n , i n t h e name of development and moderni ty , t o t h e e f f e c t t h a t t h e chances f o r t h e maintenance and r e v i t a l i z a t i o n o f l o c a l c u l t u r e s were reduced. Gala1 Amin pu ts i t t h i s way:

"(An) ap t d e s c r i p t i o n o f Arab governments i s t h a t they have a l l become "modernizers". The fea tu res which they have i n common have l e d n o t so much t o t h e r e d u c t i o n o f p o v e r t y as t o i t s modern iza t ion , t o the c r e a t i o n o f a facade o f modern i t y beh ind which t h e m a j o r i t y o f t h e p o p u l a t i o n cont inues t o l e a d v i r t u a l - l y t h e same way o f l i f e M . 2 /

I n a1 1 Arab c o u n t r i e s , i t can be s a i d t h a t t h e "development" e f f o r t i s l e d and c o n t r o l l e d - by and l a r g e - f o r t h e b e n e f i t o f an e l i t e . Even i n c o u n t r i e s where l a n d l o r d s and t r i b a l c h i e f s were depr i ved o f p o l i t i c a l power, they were rep laced by a new, a l b e i t l a r g e r , e l i t e - ma in ly m i l i t a r y o f f i c e r s . Even when t h e r u l i n g e l i t e - as i n t h e case o f Egyp t a f t e r t h e 1952 r e v o l u t i o n - made s e r i o u s at tempts a t a c h i e v i n g a more equal d i s t r i b u t i o n o f income, t h e masses had very l i t t l e t o do w i t h a c t u a l decis ion-making processes. I n most c o u n t r i e s t h e masses lacked t h e p o l i t i c a l o rgan ized power and, i n many cases, t h e necessary consciousness t o i n f l u e n c e t h e course o f events.

I n r e v i e w i n g Arab c o u n t r i e s ' performance i n the area o f income d i s t r i b u t i o n , Gala1 Amin reaches t h e f o l l o w i n g conc lus ions :

2 / Gala1 Amin, The Modern iza t ion o f Pover ty ( B r i l l , 1974), p.110 -

Twenty years ago, the two main sources of income inequal i ty in t he Arab world were the domination of foreign economic i n t e r e s t s and inequal i ty of land ownership. ( . . . ) s ince then, Arab countr ies have succeeded i n reducing the s t rength of these f a c t o r s , b u t new ones have been working with increasing force towards g rea t e r inequal i ty . Of these f ac to r s , the most important seem t o be the increase in o i l revenue, the growth of government bureaucracy and a government bias agains t aqr icul turel'.^/

I t i s reasonable t o argue t h a t Arab in tegra t ion e f f o r t s may be evaluated on the basis of two c r i t e r i a : the ex t en t t o which they contributed t o enhancing develop- ment a t the country l e v e l , and the ex t en t t o which they increased interdependence among the Arab countr ies . F i r s t , we have seen above t h a t t he h i s to ry of Arab development i n the l a s t 30 years has been one of serapate country development. Furthermore, the r e s u l t s a r e f a r from s a t i s f a c t o r y . Second, we have shown t h a t inter-Arab t rade remains marginal. Moreover, Arab coun t r i e s ' dependence on the Centre i s proceeding a t a much f a s t e r r a t e than any Arab economic interdependence. The recent boom in o i l pr ices has only contributed t o deepening the dependence of the Arab world, and crea t ing a new form of dependence, or ig inat ing from the accu- mulation of la rge financial a s se t s i n the Centre. Such accumulation makes the welfare of Arab countries dependent on the s t a b i l i t y of the in ternat ional capi ta- l i s t system.

IV. TOWARDS AN ALTERNATIVE SCENARIO: A SELF-RELIANT ARAB DEVELOPMENT STRATEGY AND ARAB COLLECTIVE SELF-RELIANCE

In terms of national development s t r a t egy , we c r i t i c i z e d pas t development s t r a t e - g ies as dependent, e l i t i s t and unjust . The an t i t hes i s of t h i s s t r a t egy i s a s e l f - r e l i a n t , democratic and j u s t development s t r a t egy . However, a s e l f - r e l i a n t s t r a t egy a t the level of each Arab country in i so l a t i on from the o thers faces ser ious d i f f i c u l t i e s which are bound t o impose severe r e s t r i c t i o n s on both consum- ption and production growth. In small o i l -r ich countr ies , growth p o s s i b i l i t i e s w i l l be l imited by the lack of a d ive r s i f i ed resource base, the shortage of man- power and l imi ted market s i z e . In the poorer countr ies , growth wi l l be l imited by the same f ac to r s i n addi t ion t o the lack of cap i t a l resources. Thus, col lec- t i v e s e l f - r e l i ance emerges as a way t o enable Arab countr ies t o implement s e l f - r e l i a n t development s t r a t e g i e s a t the national l e v e l , achieve a higher growth potent ia l than with separate development, and avoid some of the severe s a c r i f i c e s imposed by autarchic development.

An Arab co l l ec t ive s e l f - r e l i ance s t r a t egy would be b u i l t on:

. increasing inter-Arab economic, cu l tu ra l and p o l i t i c a l interdependence;

. enhancing co l l ec t ive independence from the Centre; and

. expanding l i nks with o ther Third World countries f o r mutual benef i t .

I f we take ser ious ly the goal of t o t a l development for the bene f i t , and with the e f f ec t ive pa r t i c ipa t ion , of t he deprived majority of Third World people, we should r ea l i ze t h a t i t requires a process of t o t a l decolonization as we1 1 as a process of in ternal national s t ruggles i n Third World countr ies . Thus, the goal w i l l not be achieved by one-shot-measures, such as declara t ions and negot ia t ing conferences.

The r e q u i r e d long- te rm two-pronged s t r u g g l e a t t h e n a t i o n a l and i n t e r n a t i o n a l l e v e l s i s n o t l i k e l y t o r e s u l t i n immediate o r cont inuous advances. I t w i l l , n a t u r a l l y , have i t s v i c t o r i e s as w e l l as i t s setbacks.

Whi le i t i s u s e f u l and necessary t o e l a b o r a t e and c o n c r e t i z e our t h i n k i n g on t h e new p a r t i c i p a t o r y development s t r a t e g y , we have t o accept , f o r t h e sake o f con- s i s t e n c y a t l e a s t , t h e premise t h a t t h e f u l l programme o f l i b e r a t i o n o f t h e masses f rom dominat ion by i n t e r n a l and i n t e r n a t i o n a l fo rces has t o emerge and evo lve f rom t h e process o f mass s t r u g g l e i t s e l f and t h e accompanying r i s e i n mass con- sc iousness. Thus, any g u i d e l i n e s f o r p a r t i c i p a t o r y development have t o be t e s t e d and m o d i f i e d i n a c t u a l mass p a r t i c i p a t o r y p r a c t i c e . Our ideas have t o be t e s t e d and e l a b o r a t e d i n p r a c t i c e w i t h t h e masses i n p r o d u c t i v e , s o c i a l and p o l i t i c a l a c t i v i t i e s . Only thus can a v i a b l e , endogenous s t r a t e g y be fo rmu la ted and implemented.

The choice among development s t r a t e g i e s - w h i l e n o t independent o f o u r a c t i o n - i s n o t a n e u t r a l and " r a t i o n a l " t e c h n o c r a t i c choice. I t i s a choice governed b y t h e a c t u a l c o n d i t i o n s and fo rces work ing a t n a t i o n a l and i n t e r n a t i o n a l l e v e l s . Thus, f o r example, c o u n t r i e s do n o t choose t o d e l i n k f rom t h e Centre, o r t o " r e i n v e n t t h e wheel" as a goal i n i t s e l f . They may choose t o d e l i n k because t h e i n t e r n a - t i o n a l power s t r u c t u r e p u t s these c o u n t r i e s i n a s e l f - p e r p e t u a t i n g weak p o s i t i o n . What i s needed i s t o c o n t r o l t h e process o f i n t e r a c t i o n between p e r i p h e r a l coun- t r i e s and t h e Centre f o r t h e purpose o f maximiz ing the l o n g r u n prospects o f the development o f these c o u n t r i e s .

Thus, t h e p r e s e n t a t tempt t o draw g u i d e l i n e s o f an a l t e r n a t i v e Arab development i s n o t designed t o l u l l ourselves i n t o t h e f a l s e b e l i e f t h a t Arab c o u n t r i e s can i n t h e near f u t u r e achieve a r a d i c a l s h i f t i n development s t r a t e g y which i n t u r n w i l l r e s u l t i n u n i n t e r r u p t e d advance o f ou r p e o p l e ' s development, b u t r a t h e r t o demonstrate t h e f e a s i b i l i t y o f an a l t e r n a t i v e development i f and when t h e r e l e v a n t s o c i a l fo rces a r e ready t o oush f o r i t . Secondar i l y , i t i s an a t tempt t o d iscover t h e f e a s i b l e s teps t h a t may be taken today - g i v e n a l l t h e n a t i o n a l and i n t e r - n a t i o n a l c o n s t r a i n t s - and which h e l d t o achieve the s t r a t e g i c goal o f t o t a l development^-/. Th is r e q u i r e s t h e d e f i n i t i o n o f c r i t e r i a t o judge whether p a r t i a l s teps taken today enhance o r h i n d e r t h e achievement o f t h e s t r a t e g i c goa l .

Arab c o l l e c t i v e s e l f - r e l i a n c e may s t a r t a t a modest s c a l e w i t h " r e f o r m i s t measures" b u t we propose, as a f i r s t approximat ion, two c r i t e r i a t o judge whether a p a r t i - c u l a r measure he lps towards reach ing t h e s t r a t e g i c goal :

. To what e x t e n t does i t h e l p c r e a t e v i a b l e long-range i n t e r - c o u n t r y l i nkages t h a t become hard ( o r expensive) t o b reak? To i l l u s t r a t e , i t i s e a s i e r t o d isband an i n t e r - c o u n t r y t a r i f f agreement than t o g e t o u t o f an i n t e g r a t e d i n d u s t r i a l ven tu re where t h e ou tpu ts produced i n one coun t ry a r e necessary i n p u t s i n an impor tan t i n d u s t r i a l a c t i v i t y i n another coun t ry .

. To what e x t e n t does i t s t reng then t h e Arab masses c o l l e c t i v e a b i l i t y t o understand, a r t i c u l a t e and defend t h e i r l ong- te rm i n t e r e s t s ?

*/ Needless t o say here t h a t t h e r e i s no s t a t i c one p o i n t a t which t o t a l - development i s achieved once and f o r a l l ; what i s i n v o l v e d r a t h e r i s a move t o a new, more advanced h i s t o r i c a l s tage .

Probably no u s e f u l purpose can be served by enumerat ing p o s s i b l e d e t a i l e d measures of c o l l e c t i v e s e l f - r e l i a n c e which can be agreed upon by Arab governments t o t h e advantage o f a l l . The r e c e n t h i s t o r y o f Arab i n t e g r a t i o n e f f o r t s i s r e p l e t e w i t h such proposals, agreements, and i n s t i t u t i o n s . O f course, many o f these measures were n o t backed by s e r i o u s and r e a l i s t i c s t u d i e s o f t h e i r f e a s i b i l i t y and impact on t h e c o u n t r i e s t h a t p a r t i c i p a t e d . Sometimes they lacked t h e p o l i t i c a l w i l l on t h e p a r t o f governments t o implement. We may o n l y denote what we cons ider t o be i m p o r t a n t and f e a s i b l e areas o f c o l l e c t i v e s e l f - r e l i a n c e , s u b j e c t t o f u r t h e r d e t a i l e d s tudy and e l a b o r a t i o n , among t h e Arab c o u n t r i e s :

. Food p r o d u c t i o n : C o l l e c t i v e l y , t h e Arab w o r l d has a1 1 t h e necessary resources t o c lose i t s food d e f i c i t gap.

. Cooperat ive buy ing arrangements f o r i m p o r t a n t Arab impor ts , e s p e c i a l l y when Arab c o u n t r i e s c o l l e c t i v e l y account f o r a s i g n i f i c a n t p o r t i o n o f t h e i m p o r t demand f o r a p a r t i c u l a r product .

. S c i e n t i f i c and t e c h n o l o g i c a l cooperat ion, a t l e a s t i n t h e f i e l d o f i n f o r m a t i o n c o l l e c t i o n and d issemina t ion .

. Arab p r o d u c t i v e m u l t i n a t i o n a l ventures, owned and c o n t r o l l e d by Arabs based on t h e p r i n c i p l e o f maximiz ing p r o d u c t i v e l i n k s among two o r more Arab coun- t r i e s . For example, i t i s more d e s i r a b l e t o have an i n t e g r a t e d automat ive e n t e r p r i s e w i t h va r ious c o u n t r i e s s p e c i a l i z i n g i n c e r t a i n p a r t s o r s tages o f p roduc t ion , than hav ing one coun t ry s p e c i a l i z e i n such i n d u s t r y even i f t h e f i n a n c i n g o f such s p e c i a l i z a t i o n i s a m u l t i - c o u n t r y e f f o r t .

V. CONCLUDIfOG REMARKS

The Arab c o u n t r i e s - c o l l e c t i v e l y r i c h i n n a t u r a l resources, possessing a common c u l t u r a l background, and express ing a h i g h degree o f p o l i t i c a l s o l i d a r i t y - a f t e r many at tempts a t coopera t ion and i n t e g r a t i o n , and i n s p i t e o f the e x i s t e n c e o f a web o f i n s t i t u t i o n s whose avowed purpose i s t o achieve Arab i n t e g r a t i o n , d i d n o t advance very f a r i n a c h i e v i n g t h i s purpose. We argued t h a t t h i s f a i l u r e i s due t o a f a u l t y approach t o i n t e g r a t i o n based on f a c i 1 i t a t i ng t r a d e between c o u n t r i e s which a r e dependent on t h e ou ts ide , economical ly , c u l t u r a l l y and p o l i t i c a l l y . I t was concluded t h a t t h e r e i s need f o r a r a d i c a l s h i f t i n approach based on s e l f - r e l i a n c e on t h e coun t ry l e v e l , and c o l l e c t i v e s e l f - r e l i a n c e on t h e Arab l e v e l . Fur thermore, i t was argued t h a t t h i s s h i f t i s n o t a " n e u t r a l " choice which can be implemented s imp ly by conv inc ing arguments. There a re some r e a l i n t e r n a l and i n t e r n a t i o n a l fo rces beh ind t h e p r e s e n t dependent development s t r a t e g y . These f o r c e s i n c l u d e , i n a d d i t i o n t o t h e e x t e r n a l enemies o f i m p e r i a l i s m and Zionism, r u l i n g c lasses whose main p r i o r i t y i s t o secure t h e c o n t i n u i t y o f t h e i r domina- t i o n over t h e i r people, and a l l c lasses and groups whose i n t e r e s t s a re c l o s e l y connected t o t h e p resen t s t a t e o f dependence. It shou ld be c l e a r t h a t t h e d e s i r e d s h i f t i n s t r a t e g y w i l l r e q u i r e pro longed s t r u g g l e a t economic, i n t e l l e c - t u a l and p o l i t i c a l l e v e l s .

A new s e l f - r e l i a n t and c o l l e c t i v e l y s e l f - r e l i a n t s t r a t e g y , by i t s ve ry na tu re , c a l l s f o r t h e p a r t i c i p a t i o n o f the masses i n d e f i n i n g and implement ing i t. Thus, t h e main t a s k ahead on t h e way t o t h i s new development s t r a t e g y i s t o r a i s e t h e consciousness o f t h e masses r e g a r d i n g t h e d e s i r a b i l i t y and f e a s i b i l i t y o f t h e new approach and t h e i r r o l e i n d e f i n i n g and implement ing i t .

In t he following, we propose some very rough approximations of the general d i rec- t i ons t h a t may be taken t o r a i s e mass consciousness regarding Arab co l l ec t ive s e l f - r e l i ance :

Strong in t e l l ec tua l e f f o r t s have t o be made in order t o f o s t e r s c i e n t i f i c thinking about Arab unity, a slogan so dear t o most Arabs. O n the negative s i d e , two approaches t o t h i s issue should be re jec ted: 1 ) the "metaphysical" be l i e f in the i n e v i t a b i l i t y of unity without c l ea r spec i f i ca t ion of questions, such as, f o r whose bene f i t ? What are the d i f f i c u l t i e s ? And what i s the s t r a t egy t o achieve such unity? 2) The pseudo-scientif ic approach emphasizing exclusively the short-run contradictions and neglecting more fundamental fac tors of homogeneity.

. Given the high level of Arab peoples' i n t e r ac t ion across country boundaries, any grass-roots thinking and prac t ice in endogenous development a t the country level i s bound t o have an impact on o ther Arab countries.

. Communication media which already reach across Arab boundaries may be used to disseminate the new thinking. Media t h a t can readi ly be used f o r t h i s pur- pose a r e cinema, t hea t r e and newspapers. A1 l e f f o r t t o v i t a l i z e endogenous Arab cu l tu re i s a valuable contribution towards Arab co l l ec t ive s e l f - r e l i ance .

. I t i s very important t h a t a l l inter-Arab non-governmental groupings should be encouraged. These include professional and trade groupings ( e .g. , Arab law- y e r s , engineers, t rade unions) , youth and women's organizations.

A t t he governmental l e v e l , we argued t h a t cer ta in s teps can be taken even in the immediate fu tu re which may enhance our long term goal of Arab co l l ec t ive s e l f - re1 iance. These included col labora t ion i n food production, cooperative buying arrangements, s c i e n t i f i c and technological cooperation, and Arab mu1 t i na t iona l ventures. We may add here t h a t e f f o r t s should be made t o enhance Arab governments' s o l i d a r i t y with overall Third World demands through Third World organizations such as t he Non-aligned or the Group of 77.

Col lec t ive s e l f - r e l i ance should be t r ea t ed in a h o l i s t i c manner where the whole becomes g rea t e r than the sum of the pa r t s . All pa r t i a l measures, such as sec tora l o r sub-regional i n t eg ra t ion , can be judged only in r e l a t i on t o t h e i r contribution t o the l a rge r whole - co l l ec t ive s e l f - r e l i ance f o r t o t a l independent development. In t h i s way we avoid the t r aps of f a l s e dilemmas, such as the choice between sec tora l and t o t a l i n t eg ra t ion , sub-regional versus regional i n t eg ra t ion , e t c .

B U I LDING BLOCKS

THE INTERNATIONAL REPRESSION TRADE: USA ARMS TRANSFERS AND S O C I A L CONTROL I N THE T H I R D !!ORLD

by Michael T. Klare Director, Mili tarism & Disarmament Projec t I n s t i t u t e f o r Pol icy Studies 1901 Q S t r e e t , N . W . Washington, D . C . 20009, USA

Original language: English

Abstract: The leading suppliers of mili.tary armaments also supply repressive Third World regimes and the i r in ternal security forces with equipment and services for use against the i r domestic opponents, sometimes ci-vcumuenting mandatory embar- goes i n doing so. Though re la t i ve ly small i n value, t h i s repression trade probably a f f e c t s people's dai ly l i ves more than do transfers of mi l i tary arms. This System i s needed t o expose t h i s trade and t o press for e f f e c t i v e governmental. r e s t r i c t ions on it. (For further discussion, see Klare, Supplying Repression: Washington: IPS, 19781. A f i r s t version of t h i s paper has been publised i n Le Monde Diplomatique of June 1979, appearing i n French, Spanish, Greek and Portuguese.

L E COMMERCE INTERNATIONAL DE LA REPRESSION: LES TRANSFERS DES ARMEMENTS DES ETATS U N I S E T L E C O N T R ~ L E SOCIALE DANS LE T I E R S MONDE

RisumS: Les pr-incipaux foumisseurs d'armes fournissent aussi aux regimes repres- s i f s du Tiers Monde e t 2 l e w forces in ter ieures de 'sCret6' des e p e m e n t s e t des services dest ines 2 la l u t t e centre l e w s opposants - parfois au m6pri-s d'embargos obliqatoires. Bien que r e l a t k m e n t modeste en valeur monetaire, ce commerce de la repression a f f ec te probablement la v i e quotidienne des masses davantage que l e s amements d i t a i r e s . Le t i e r s systeme peut jouer un rSle en faisant connuitre ee commerce e t en demandant que l u i s o i t appliquees des res t r i c t ions s t r i c t e s . (Pour une discussion plus approfondie, voir KZare, Supplying Repression (Washington: IPS, 1979). Une premiere version de c e t a r t i c l e e s t parue dans Le Monde Diploma- * de juin 1979 (edi t ions en f r a n ~ a i s , espagnol, p e e e t portugais).

Resumen: (Ver la pbgina 16)

Michael T. K l a r e

THE INTERNATIONAL REPRESSION TRADE: USA ARMS TRANSFERS AND SOCIAL CONTROL I N THE THIRD WORLD

I. INTRODUCTION

Since t h e 1960s, and e s p e c i a l l y a f t e r t h e f o u r - f o l d 1974 inc rease i n o i l p r i c e s , arms t r a n s f e r s t o the T h i r d World c o u n t r i e s have been r i s i n g a t an e v e r - i n c r e a s i n g r a t e . Accord ing t o t h e US Arms C o n t r o l and Disarmament Agency (ACDA), weapons i m p o r t s by T h i r d World c o u n t r i e s rose by over 500% d u r i n g t h e p a s t 12 y e a r s , f rom $1.5 b i l l i o n i n 1964 t o $9.8 b i l l i o n i n 1976.11 The r e s u l t i n g b u i l d - u p o f war- making capabi 1 i t i e s has generated cons ide rab le concern among m i l i t a r y a n a l y s t s , arms c o n t r o l e x p e r t s , and government o f f i c i a l s . B u t w h i l e t h e ensu ing con t roversy over conven t iona l arms e x p o r t s has a l e r t e d t h e p u b l i c t o t h e t h r e a t t o w o r l d peace posed by such t r a n s f e r s , t h i s debate has a l s o se rved t o obscure an e q u a l l y s e r i o u s consequence o f t h i s t r a d e : t h e f r i g h t e n i n g accumulat ion o f r e p r e s s i o n technology by a n t i - d e m o c r a t i c reg imes.

Most o f the p roduc ts s o l d i n t h e i n t e r n a t i o n a l arms marke t a r e f r o n t - l i n e weapons designed f o r s u s t a i n e d combat o p e r a t i o n s by r e g u l a r m i l i t a r y f o r c e s . Thus, accord ing t o t h e ACDA, T h i r d World governments acqu i red some 18,607 tanks, 6,212 combat p lanes , 2,972 h e l i c o p t e r s , and 21 187 guided m i s s i l e s f rom t h e ma jo r i n d u s t r i a l powers between 1967 and l976 .2 / B u t bes ides such w a r - f i g h t i n g m a t e r i e l , these governments a l s o a c q u i r e d v a s t q u a n t i t i e s o f arms and o t h e r equipment i n t e n - ded f o r i n t e r n a l use, t o m a i n t a i n domest ic o r d e r and, i n some cases, t o suppress d i s s i d e n t s e c t o r s o f t h e i r own p o p u l a t i o n s . Such s o c i a l - c o n t r o l m a t e r i e l i n c l u d e s : s m a l l arms and p o l i c e hardware (handcu f f s , b i l l y - c l u b s , e t c . ) , r i o t - c o n t r o l equ ip - ment (chemical m u n i t i o n s , wa te r cannon, e t c . ) , jeeps and armored ca rs , p r i s o n equipment, t o r t u r e dev ices , s u r v e i l l a n c e gear, and computer ized i n t e l l i g e n c e systems.

Many o f these n o n - m i l i t a r y i tens a re used by t h e s e c u r i t y f o r c e s o f democra t i c governments f o r normal law enforcement purposes. I n some c o u n t r i e s , however, t h e y a re b e i n g used by undemocrat ic regimes t o s i l e n c e p o p u l a r r e s i s t a n c e t o autho- r i t a r i a n r u l e , o r t o p e r p e t u a t e t h e s u b o r d i n a t i o n o f c e r t a i n r a c i a l , e t h n i c , o r r e l i g i o u s s e c t o r s o f t h e p o p u l a t i o n . We sometimes f i n d , moreover, t h a t these governments a r e b e i n g a s s i s t e d i n t h e i r s o c i a l - c o n t r o l endeavours by f o r e i g n powers which p e r c e i v e a ves ted i n t e r e s t i n t h e p romot ion o f " s t a b i l i t y " i n T h i r d Wor ld c o u n t r i e s . Such ass is tance , which can o f t e n be t r a c e d back t o t h e c o l o n i a l e r a , c o n s t i t u t e s one o f t h e most s i g n i f i c a n t and p e r s i s t e n t aspects o f t h e r e l a - t i o n s between t h e major i n d u s t r i a l powers and t h e i r a l l i e s and c l i e n t s i n t h e T h i r d World. And when t h i s ass is tance i n v o l v e s t h e s a l e o r d e l i v e r y o f s o c i a l - c o n t r o l techno logy t o a u t h o r i t a r i a n regimes, such t r a n s f e r s can be s a i d t o c o n s t i - t u t e t h e i n t e r n a t i o n a l r e p r e s s i o n t rade .

Wh i le t h e r e p r e s s i o n t r a d e can be cons ide red a s u b d i v i s i o n o f t h e r e g u l a r arms t r a d e , i t has a number o f s p e c i a l c h a r a c t e r i s t i c s which j u s t i f y o u r t r e a t i n g t h i s s u b j e c t as a unique phenomenon. To b e g i n w i t h , t h i s t r a d e i n c o r p o r a t e s many dev ices which a r e n o t n o r m a l l y cons ide red "weapons" a t a l l , b u t which a r e never- t h e l e s s i m p o r t a n t components o f t h e a rsena l o f rep ress ion . Such i tems i n c l u d e :

s u r v e i l l a n c e dev ices , te lephone- tapp ing equipment, l e g - i r o n s and thumbscrews, f i n g e r p r i n t equipment, and computer ized i n t e l l i g e n c e systems. I n a d d i t i o n t o such "hardware" , the r e p r e s s i o n t r a d e a l s o encompasses a wide v a r i e t y o f " s o f t - ware" and s e r v i c e s , i n c l u d i n g t r a i n i n g and a d v i s o r y s e r v i c e s , i n t e l l i g e n c e exchanges, and p o l i t i c a l - i d e o l o g i c a l coopera t ion . Fur thermore, w h i l e a l l m i l i t a r y t r a n s f e r s i n v o l v e some s o r t o f government-to-government c o l l a b o r a t i o n , r e p r e s s i o n t r a n s f e r s a re e s p e c i a l l y no tewor thy f o r t h e h i g h degree o f i n t i m a c y which o f t e n c h a r a c t e r i z e s t h e r e l a t i o n s between t h e s e c u r i t y agencies o f t h e v a r i o u s govern- ments i n v o l v e d . Indeed, as we s h a l l demonstrate, such c o l l a b o r a t i o n i s one o f t h e p r i n c i p a l f e a t u r e s o f t h e r e p r e s s i o n t r a d e .

As i s t r u e o f a l l arms t r a n s f e r s , t h e s a l e o f p o l i c e and r e p r e s s i o n technology can be h i g h l y l u c r a t i v e f o r t h e f i r m s i n v o l v e d . B u t when measured i n d o l l a r terms, such t r a n s f e r s r e p r e s e n t b u t a sma l l f r a c t i o n o f t h e revenues generated by t h e conven t iona l weapons t r a d e . I f we add t o g e t h e r a l l forms o f r e p r e s s i o n t r a n s f e r s , i n c l u d i n g s o f t w a r e , we would a r r i v e a t a t o t a l f i g u r e o f perhaps $1-2 b i l l i o n p e r y e a r . Bu t when we remember t h a t f o r $20 m i l l i o n - t h e p r i c e o f one superson ic f i g h t e r - a government can buy tens o f thousands o f r i f l e s , shotguns and grenades, i t i s obv ious t h a t even $1 b i l l i o n rep resen ts a major t r a n s f e r o f r e p r e s s i o n techno logy . And s i n c e many r e c i p i e n t s o f such hardware a re engaged i n a more o r l e s s con t inuous s t r u g g l e a g a i n s t d i s s i d e n t movements, i t i s l i k e l y t h a t the r e p r e s s i o n t r a d e has a g r e a t e r impac t on t h e day- to-day l i v e s o f more people than a1 1 o t h e r arms t r a n s f e r s combined.

Exper ts agree, moreover, t h a t t h e r e p r e s s i o n t r a d e i s growing d a i l y . "There a re more r i o t s and upheavals than ever b e f o r e " , the p r e s i d e n t o f one arms e x p o r t f i r m t o l d me, "and thus we a r e d o i n g more and more business e v e r y y e a r " . a Recent d i s tu rbances i n Indones ia , I r a n , Nicaragua and Turkey r e s u l t e d i n a surge o f demand f o r r i o t - c o n t r o l equipment, and i t i s reasonable t o assume t h a t s i m i l a r d i s o r d e r s w i l l occur e lsewhere - thus expanding f u r t h e r t h e market f o r such hard - ware. I n t h i s essay, we w i l l examine t h e p r i n c i p a l components o f t h e r e p r e s s i o n t r a d e and i d e n t i f y some o f t h e major s u p p l i e r s o f such p roduc ts - c o n c e n t r a t i n g , because o f a g r e a t e r a v a i l a b i l i t y o f da ta , on USA's invo lvement i n t h e r e p r e s s i o n t rade . B u t because r e p r e s s i o n s a l e s and p o l i t i c a l developments a re so c l o s e l y r e l a t e d , i t i s i m p o r t a n t t h a t we c o n s i d e r t h e u n d e r l y i n g f o r c e s which p r o p e l such e x p o r t s b e f o r e examin ing i n more d e t a i l t h e commodit ies which make up t h i s t r a d e and t h e p o l i c e - i n d u s t r i a l complex which produces them.

11. THE DYNAMICS OF THE REPRESSION TRADE

Repress ion t r a n s f e r s a r e n o t mere ly a casual symptom o f p o l i t i c a l i n s t a b i l i t y , b u t r a t h e r a c o n s i s t e n t and o f t e n i n t e n t i o n a l f e a t u r e o f t h e r e l a t i o n s h i p between t h e ma jo r Western powers and t h e i r c l i e n t s and a l l i e s i n t h e T h i r d world.*/ I n many cases, such t r a n s f e r s a r e mandated by government p o l i c y , and even where such o f f i c i a l a u t h o r i t y i s l a c k i n g , they r e p r e s e n t a p r e - d i s p o s i t i o n t o b u t t r e s s t h e forces o f " s t a b i l i t y " - a t t h e expense o f p o l i t i c a l freedom and human r i g h t s .

The r e p r e s s i o n t r a d e i s no t , o f course, c o n f i n e d t o t r a n s f e r s between the ma jo r Western powers and t h e i r c l i e n t s i n t h e T h i r d World. Such t r a n s f e r s a l s o take p l a c e w i t h i n NATO and t h e Warsaw Pact , and a l s o between the S o c i a l i s t powers and t h e i r c l i e n t s and a l l i e s . However, w h i l e accura te s t a t i s t i c s a re

. I . .

Th is p r e d i s p o s i t i o n r e f l e c t s t h e approach taken by more Western powers i n respon- d i n g t o t h e s o c i a l and p o l i t i c a l tu rbu lence caused by economic "modernizat ion" i n t h e T h i r d World. As t h e T h i r d World c o u n t r i e s i n d u s t r i a l i z e and become an i n t e g r a l p a r t of the w o r l d economic system, they tend t o exper ience a succession o f traumas t h a t p lace enormous s t r a i n s on t h e governing a u t h o r i t i e s . And because t h e Western powers b e l i e v e t h a t any e r o s i o n o f government a u t h o r i t y w i l l i m p a i r t h e process o f modernizat ion, w h i l e f a c i l i t a t i n g t h e e f f o r t s of r e v o l u t i o n a r y and r a d i c a l - n a t i o n a l i s t groups, they tend t o respond by s t r e n g t h e n i n g t h e s o c i a l - c o n t r o l c a p a b i l i t i e s o f t h e p r e v a i l i n g regime. As no ted by t h e Pentagon's c h i e f m i l i t a r y a i d a d m i n i s t r a t o r i n 1970, t h e u n d e r l y i n g r a t i o n a l e behind USA's m i l i t a r y a i d was t o h e l p T h i r d World n a t i o n s "ma in ta in m i l i t a r y and p a r a m i l i t a r y fo rces capable o f p r o v i d i n g , w i t h p o l i c e fo rces , i n t e r n a l s e c u r i t y essen t i a1 t o o r d e r l y p o l i t i c a l , s o c i a l and economic development."^/

On t h i s bas is , t h e U n i t e d S ta tes p r o v i d e d some $62 b i l l i o n i n m i l i t a r y a i d t o f r i e n d l y T h i r d World regimes between 1945 and 1977. Th is amount i n c l u d e s $51 b i l - l i o n i n s u b s i d i e s under t h e M i l i t a r y Assis tance Program (MAP) and o t h e r g r a n t programmes, $9 b i l l i o n i n c r e d i t s f o r t h e purchase o f American arms under the Fore ign M i l i t a r y Sales (FMS) programme and $2 b i l l i o n worth o f t r a i n i n g p rov ided through t h e I n t e r n a t i o n a l Mi 1 i t a r y Educat ion and T r a i n i n g Program ( IMET) .~~ An a d d i t i o n a l $325 m i l l i o n was p r o v i d e d t o f o r e i g n p o l i c e fo rces through the P u b l i c S a f e t y programme o f t h e US Agency f o r I n t e r n a t i o n a l ~ e v e l o ~ m e n t . ? / (See P a r t I V f o r a more d e t a i l e d d e s c r i p t i o n o f t h e US m i l i t a r y and p o l i c e a i d programmes). And w h i l e t h e amounts i n v o l v e d a re cons iderab ly sma l le r , t h e B r i t i s h and French governments have a l s o p rov ided s u b s t a n t i a l ass is tance t o t h e m i l i t a r y and p o l i c e fo rces o f f r i e n d l y governments ( u s u a l l y those i n former c o l o n i e s ) f o r much t h e same reasons.

T h e o r e t i c a l l y , t h e need f o r such ass is tance should g r a d u a l l y d i m i n i s h as t h e r e c i - p i e n t n a t i o n s become l e s s poor and thus l e s s v u l n e r a b l e t o p o l i t i c a l upheaval. B u t h i s t o r y demonstrates t h a t t h e r e i s a fundamental f l a w i n t h i s l o g i c . I n many t r a n s i t i o n a l s o c i e t i e s where c i v i l i a n i n s t i t u t i o n s a re incomple te ly o r inadequate- l y e s t a b l i s h e d , t h e expansion o f t h e m i l i t a r y - p o l i c e s e c t o r tends t o become a s e l f - s u s t a i n i n g process which g r a d u a l l y leads t o t h e complete s u b o r d i n a t i o n o f t h e fo rmer t o t h e l a t t e r and u l t i m a t e l y - as t h e r u l i n g a u t h o r i t i e s become i n c r e a s i n g - l y i n t o l e r a n t o f p o p u l a r o r g a n i z a t i o n s - t o t h e f o r m a t i o n o f what can be c a l l e d a " s t r o n g s t a t e " - t h a t i s , a t o t a l i t a r i a n regime which r e l i e s a lmost e x c l u s i v e l y on s t a t e - s a n c t i o n e d v i o l e n c e - o r t h e t h r e a t o f such v i o l e n c e - t o compel obedi- ence t o government decrees.

These s t a t e s o f t e n appear, a t l e a s t on t h e su r face , t o en joy a r e l a t i v e l y h i g h degree o f domest ic s t a b i l i t y . Bu t appearances can be d e c e i v i n g : s i n c e the open express ion o f d i s s i d e n t views i s p r o h i b i t e d , o p p o s i t i o n groups must o rgan ize and opera te i n s e c r e t , and thus a p l a c i d " e x t e r i o r " can conceal a ve ry a c t i v e and p o t e n t i a l l y t h r e a t e n i n g " i n t e r i o r " . Moreover, as events i n I r a n demonstrate, a u t h o r i t a r i a n regimes must c o n s t a n t l y e s c a l a t e t h e l e v e l o f domestic repress ion and s u r v e i l l a n c e i n o r d e r t o m a i n t a i n t h e facade o f s t a b i l i t y . Th is process

( c o n t . ) l a c k i n g , t h e a v a i l a b l e da ta suggests t h a t t h e overwhelming b u l k o f rep - r e s s i o n t r a n s f e r s i n v o l v e Nor th t o S t h d e l i v e r i e s f rom t h e Western powers t o f r i e n d l y T h i r d World governments.," Accord ing ly , we w i l l concen t ra te here on t h i s ma jo r c u r r e n t o f t h e r e p r e s s i o n t r a d e . H o p e f u l l y , f u t u r e research w i l l enable us t o c h a r t t h e o t h e r c u r r e n t s w i t h reasonable accuracy.

i n e v i t a b l y c r e a t e s more d i s s i d e n t s than i t e l i m i n a t e s , and thus , i n t ime , the government 's base o f s u p p o r t dwindles t o t h e army, t h e p o l i c e and t h e pa lace yuard. These governments can be s a i d , i n f a c t , t o be i n a s t a t e o f war w i t h t h e i r own p o p u l a t i o n , o r s i g n i f i c a n t p o r t i o n s t h e r e o f ; such a war may be d e c l a r e d (when, f o r example, a regime suspends t h e c o n s t i t u t i o n under a " s t a t e o f s i e g e " o r " s t a t e o f emergency" decree) o r i t may be undeclared, b u t t y p i c a l l y i n v o l v e s some s o r t o f m a r t i a l law and t h e conspicuous presence o f s e c u r i t y f o r c e s a t a l l p u b l i c l o c a t i o n s .

T h i s s o r t o f c o n f l i c t n a t u r a l l y generates an e v e r - i n c r e a s i n g demand f o r r e p r e s s i o n technology. As t h e o p p o s i t i o n expands and becomes more exper ienced i n c l a n d e s t i n e opera t ions , t r a d i t i o n a l p o l i c e methods prove i n c r e a s i n g l y i n e f f e c t i v e and t h e s e c u r i t y f o r c e s a r e o b l i g e d t o use more and more s o p h i s t i c a t e d equipment t o ga in i n f o r m a t i o n on d i s s i d e n t groups. New eavesdropping and s u r v e i 1 lance techno log ies must be i n t r o d u c e d t o l o c a t e o p p o s i t i o n c e l l s , and computers a re needed t o process a l l t h e d a t a p r o v i d e d by s p i e s and i n f o r m e r s . The use o f t o r t u r e becomes more s y s t e m a t i c and more s c i e n t i f i c ( i n C h i l e , f o r i n s t a n c e , p ro longed b e a t i n g s gave way t o t h e use o f p a i n - i n f l i c t i n g drugs and s e n s o r y - d e p r i v a t i o n techniques as t h e mi 1 i t a r y j u n t a s tepped up i t s campaign t o l o c a t e and e l i m i n a t e fo rmer suppor te rs o f t h e A l l e n d e government). And, because t h e p o p u l a t i o n i s so u n i t e d i n i t s anta- gonism t o t h e regime, even sma l l and peace fu l demonstrat ions must be crushed w i t h overwhelming f o r c e l e s t bys tanders j o i n i n an ever l a r g e r and more t h r e a t e n i n g d i s p l a y o f a l i e n a t i o n .

Not o n l y does t h i s process c o n t i n u a l l y i n c r e a s e a besieged reg ime 's demand f o r r e p r e s s i o n equipment, b u t i t a l s o tends t o enhance o t h e r governments' pe rce ived i n t e r e s t i n s-upply ing such hardware. Fo r , as we have seen, p o l i t i c a l w a r f a r e tends t o d r i v e more and more people i n t o t h e arms o f t h e o p p o s i t i o n , the reby under- c u t t i n g any change o f e n g i n e e r i n g a compromise s o l u t i o n . And, faced w i t h a cho ice between c o n t i n u a t i o n o f the s t a t u s quo and a ma jo r s o c i a l upheaval c u l m i n a t i n g i n t h e r i s e o f unknown leaders - who may o r may n o t r e s p e c t t h e t r a d e and inves tmen t p o l i c i e s o f t h e i r predecessors - most Western powers w i l l o p t f o r t h e former des- p i t e the r i s k s i n v o l v e d . Thus t h e C a r t e r A d m i n i s t r a t i o n p e r s i s t e d i n i t s consp i - cuous s u p p o r t o f t h e Shah l o n g a f t e r i t had become apparen t t o most n e u t r a l observe rs t h a t some s o r t o f accommodation would have t o b e made w i t h t h e o p p o s i t i o n ; and by t h e t i m e Washington d i s c o v e r e d i t s e r r o r , i t was t o o l a t e t o save the Shah o r t o p r e v e n t t h e ascendancy o f h i s r i v a l s . B u t d e s p i t e t h i s d ramat i c lesson, i t i s d o u b t f u l t h a t t h e Western powers w i l l d i s c o n t i n u e t h e i r p o l i c y o f s u p p o r t i n g s t r o n g s t a t e s " i n t h e T h i r d World. We can s a f e l y assume, t h e r e f o r e , t h a t t h e s u p p l i e r s o f r e p r e s s i o n technology w i l l c o n t i n u e t o p rosper i n t h e years ahead.

111. THE ARSENAL OF REPRESSION: COMMODITIES

Look ing a t t h e a rsena l o f r e p r e s s i o n more c l o s e l y , we f i n d a wide assor tment of c o e r c i v e systems p e r m i t t i n g graduated inc rements i n t h e a p p l i c a t i o n o f v i o l e n c e . Th is spectrum runs f rom s u r v e i l l a n c e and eavesdropping dev ices t o s o - c a l l e d "non- l e t h a l " r i o t - c o n t r o l mun i t i ons , t o t o r t u r e and a s s a s s i n a t i o n dev ices , and f i n a l l y t o l i g h t i n f a n t r y weapons. A l though a l l o f these systems a r e l i k e l y t o be used a t one t i m e o r ano ther by s e c u r i t y agencies, these f o r c e s t e n d t o employ p r o g r e s s i v e l y more s o p h i s t i c a t e d and l e t h a l systems as t h e p o l i t i c a l s t r u g g l e i n t e n s i f i e s . Th is e s c a l a t i o n o f t e n proceeds i n s tages , as i s o l a t e d i n c i d e n t s o f r e s i s t a n c e g i v e way t o o rgan ized o p p o s i t i o n and government f o r c e s respond w i t h i n - t e n s i f i e d s u r v e i l l ance and harrassment o f t h e c i v i 1 p o p u l a t i o n - the reby p roduc ing

s t i l l more d i s s i d e n t s and thence j u s t i f y i n g s t i l l g r e a t e r l e v e l s o f rep ress ion . Descr ibed below a re t h e b a s i c c a t e g o r i e s o f r e p r e s s i o n hardware, f o l l o w e d by a d e s c r i p t i o n o f r e p r e s s i o n s o f t w a r e .

Hardware:

. D e t e c t i o n and s u r v e i l l a n c e gear , i n c l u d i n g eavesdropping equipment, te lephone- bugging devices, n i g h t - v i s i o n scopes, and o t h e r systems f o r s p y i n g on suspec- t e d d i s s i d e n t s and r e c o r d i n g t h e i r s ta tements and behav iou r .

Data-processing equipment, i n c l u d i n g computer ized f i l e systems, f i n g e r p r i n t p rocess ing equipment, automated d a t a t r a n s m i t t i n g systems, and o t h e r dev ices p e r m i t t i n g ins tan taneous access t o i n f o r m a t i o n on suspected d i s s i d e n t s , t h e i r f r i e n d s , a s s o c i a t e d and r e l a t i v e s .

T o r t u r e and r e s t r a i n i n g dev ices , i n c l u d i n g e l e c t r o n i c shock dev ices , t runch- eons, thumbscrews, t rauma-producing drugs, shack les , and o t h e r dev ices f o r i n t i m i d a t i n g , t o r t u r i n g o r o the rw ise i n c a p a c i t a t i n g known o r p o t e n t i a l d i s s i d e n t s .

. R i o t - c o n t r o l equipment, i n c l u d i n g a n t i - r i o t gases (CN, chloroacetophenone, o r " t e a r gas"; and CA, orthochlorobenzalmalononitr i le , o r "pepper gas" ) , chemical "MACE" ( a n i n c a p a c i t a t i n g agent produced by Smith and Wesson), r i o t batons and c lubs , shotguns, r i o t s h i e l d s and he lmets , wa te r cannon, and o t h e r equipment des igned t o break up and d i s p e r s e l a r g e fo rmat ions o f people.

. Pol i c e and p a r a m i l i t a r y gear, i n c l u d i n g sma l l arms and grenades, jeeps and h e l i c o p t e r s , l i g h t combat p lanes armed w i t h napalm and an t ipe rsonne l mun i t i ons , i n f r a - r e d d e t e c t i o n systems, and o t h e r hardware f o r l o c a t i n g , t r a c k i n g and d e s t r o y i n g g u e r r i l l a f o r c e s i n urban and r u r a l areas.

F i n a l l y , o f course, an embat t l ed government w i l l sometimes c a l l o u t r e g u l a r m i l i - t a r y f o r c e s equipped w i t h tanks , a r t i 1 l e r y and o t h e r f r o n t - 1 i n e equipment t o f o r c e r i o t e r s o f f t h e s t r e e t s , o r t o crush an i n c i p i e n t i n s u r r e c t i o n . So l o n g as these weapons a r e used i n a t h r e a t e n i n g mode, t o i n t i m i d a t e p o t e n t i a l i n s u r g e n t s , we a re s t i l l i n t h e r e a l m o f r e p r e s s i o n ; once, however, these f o r c e s beg in f i r i n g t h e i r own weapons, we have moved beyond r e p r e s s i o n i n t o f u l l - s c a l e c i v i l war, and thus beyond t h e boundar ies o f t h i s s tudy .

Sof tware:

No t o n l y does p o l i t i c a l war fare r e q u i r e a d i f f e r e n t spectrum o f weaponry than con- v e n t i o n a l w a r f a r e , b u t a l s o a d i f f e r e n t s e t o f s t r a t e g i e s , t a c t i c s and i d e o l o g i e s . S ince p o l i t i c a l d i s s i d e n t s a r e n o r m a l l y i n d i s t i n g u i s h a b l e f rom o t h e r c i t i z e n s - excep t i n t h e i r a t t i t u d e s - r e p r e s s i v e f o r c e s must be s p e c i a l l y t r a i n e d and o rgan ized t o i d e n t i f y such i n d i v i d u a l s . And because r a n k - a n d - f i l e po l icemen and s o l d i e r s a r e o f t e n r e c r u i t e d f rom t h e same s o c i a l s t r a t a which f i n d themselves i n c o n f l i c t w i t h t h e government, t h e r e i s a danger t h a t such t roops - i f i m p r o p e r l y o r i n a d e q u a t e l y m o t i v a t e d - w i l l s i d e w i t h t h e o p p o s i t i o n i n a show-down (as demonstrated by r e c e n t f i g h t i n g i n I r a n , where many s o l d i e r s threw down t h e i r arms r a t h e r than f i r e on c i v i l i a n opponents o f t h e Shah). T r a i n i n g and i n d o c t r i n a t i o n t h u s p l a y a c r i t i c a l r o l e i n p o l i t i c a l w a r f a r e , and a c c o r d i n g l y fo rm an i m p o r t a n t p a r t o f t h e r e p r e s s i o n t r a d e . Such "so f tware" , n o r m a l l y p r o v i d e d by f r i e n d l y governments through m i l i t a r y and p o l i c e ass is tance programmes, can i n c l u d e t h e f o l l o w i n g :

. T r a i n i n g i n t h e use o f arms and equipment descr ibed above, and i n t h e tech- n iques o f i n t e l l igence-gather ing.

. Adv iso ry support , i n the form o f p o l i c e and m i l i t a r y adv ise rs who c o l l a b o r a t e w i t h l o c a l s e c u r i t y o f f i c i a l s i n t h e p lann ing , o r g a n i z a t i o n and e x e c u t i o n o f a n t i - d i s s i d e n t and counter- insurgency campaigns.

. I d e o l o g i c a l i n d o c t r i n a t i o n , f u r n i s h e d i n t h e course o f t r a i n i n g and a d v i s o r y programmes.

. Technical suppor t , i n t h e form o f m i l i t a r y miss ions, t e c h n i c a l ass is tance f i e l d teams, and o t h e r u n i t s which p rov ide l o g i s t i c a l suppor t , maintenance and upkeep o f s o p h i s t i c a t e d hardware, eng ineer ing s e r v i c e s , e t c .

. P r i v a t e s e c u r i t y s e r v i c e s , i n t h e form o f guard s e r v i c e s and i n t e l l i g e n c e - ga ther ing , u s u a l l y p rov ided by p r i v a t e s e c u r i t y f i r m s f o r the p r o t e c t i o n o f p l a n t s and f a c i l i t i e s owned by mu1 t i n a t i o n a l c o r p o r a t i o n s .

S o c i o l o g i c a l and psycho log ica l research t o i d e n t i f y the "symptoms" o f i n c i - p i e n t r e v o l t and t o develop a r e p e r t o i r o f s h o r t - t e r m and long- te rm remedies.

. Covert i n t e r v e n t i o n by f o r e i g n i n t e l l i g e n c e opera t i ves t o d i s c r e d i t o r immobi- l i z e p o t e n t i a l o p p o s i t i o n groups and t o c rea te a l t e r n a t i v e r e p r e s s i v e f o r c e s (such as para - lega l "death squads") t o supplement t h e o f f i c i a l s e c u r i t y agencies.

These a c t i v i t i e s a r e obv ious ly much harder t o d e t e c t and ca ta logue than arms d e l i v e r y programmes, b u t p robab ly p l a y an equal o r g r e a t e r r o l e i n t h e t r a n s f e r o f r e p r e s s i o n c a p a b i l i t i e s t o T h i r d World governments. I t i s obvious, f o r i n s t - ance, t h a t s p e c i a l i z e d t r a i n i n g p rov ided t o f o r e i g n p o l i c e and i n t e l l i g e n c e o f f i c i a l s w i l l have s i g n i f i c a n t e f f e c t l o n g a f t e r those o f f i c e r s r e t u r n t o t h e i r own c o u n t r i e s . And t h e r e no l o n g e r can be any doubt t h a t USA c o v e r t opera t ions i n C h i l e he lped t r i g g e r t h e c h a i n o f events l e a d i n g t o t h e over throw o f t h e A1 lende government.

IV . THE ARSENAL OF REPRESSION: SUPPLIERS

Having i d e n t i f i e d the ma jo r ca tegor ies o f r e p r e s s i o n hardware and so f tware , i t n e x t behoves us t o ask: who a c t u a l l y produces these commodit ies, and how a r e they i n t r o d u c e d i n t o t h e i n t e r n a t i o n a l marketp lace?

I n a t t e m p t i n g t o answer these ques t ions , we must f i r s t recogn ize t h a t r e l i a b l e s t a t i s t i c s a r e p r a c t i c a l l y non-exis t e n t . Several research groups, i n c l ud ing t h e ACDA and t h e Stockholm I n t e r n a t i o n a l Peace Research I n s t i t u t e (S IPRI ) , p u b l i s h da ta on t h e i n t e r n a t i o n a l armaments t rade , b u t these s t u d i e s do n o t d i s t i n g u i s h between conven t iona l m i l i t a r y expor ts and s e c u r i t y hardware. Never theless, i t i s p o s s i b l e t o c o n s t r u c t a g e n e r a l i z e d p i c t u r e o f t h e r e p r e s s i o n t r a d e f rom s p e c i a l i - zed re fe rence works and f rom i n t e r v i e w s w i t h i n d u s t r y o f f i c i a l s .

I f we d e f i n e t h e r e p r e s s i o n t r a d e i n t h e b roades t p o s s i b l e sense ( i . e . , t o i n c l u d e p a r a m i l i t a r y and coun te r - insurgency gear as w e l l as p o l i c e equipment), we f i n d t h a t t h e l e a d i n g s u p p l i e r s a r e t h e same f o u r c o u n t r i e s which dominate t h e arms t r a d e as a whole: t h e U n i t e d S ta tes , Great B r i t a i n , France, and t h e S o v i e t Union. Whi le i t i s impossi b l e t o p r o v i d e an accura te p r o p o r t i o n a l breakdown, most ex- p e r t s agree t h a t t h e U n i t e d S ta tes i s t h e l e a d i n g s u p p l i e r by f a r , and t h a t B r i t a i n , w i t h a w e l l - e s t a b l i s h e d s e c u r i t y i n d u s t r y , comes i n second. Other major s u p p l i e r s besides the " b i g f o u r " i n c l u d e Belgium, I t a l y , West Germany and

Czechoslovakia. And, as the accompanying r o s t e r i n d i c a t e s , I s r a e l and some T h i r d Wor ld c o u n t r i e s - i n c l u d i n g B r a z i l and A r g e n t i n a - have a l s o become e x p o r t e r s o f r e p r e s s i o n gear ( I s r a e l even e x p o r t i n g t o t h e US marke t ) . Indeed, w h i l e most T h i r d World c o u n t r i e s a re as y e t i n c a p a b l e o f p roduc ing advanced m i l i t a r y equ ip - ment on t h e i r own, many have begun manu fac tu r ing l e s s - s o p h i s t i c a t e d m u n i t i o n s , i n c l u d i n g s m a l l arms, l i g h t p lanes , and a r t i l l e r y , w h i l e a few have gone i n t o the e x p o r t bus iness . B r a z i l , f o r i n s t a n c e , has s o l d i t s armored cars and coun te r - i nsu rgency p lanes t o severa l c o u n t r i e s i n L a t i n America and A f r i c a . Thus, w h i l e t h e main c u r r e n t o f the r e p r e s s i o n t r a d e con t inues t o f l o w f rom N o r t h t o South, we can d e t e c t a growing i n t r a - T h i r d World t r a d e and t h e b e g i n n i n g o f a South t o N o r t h t r a d e .

Wh i le we can d i s c e r n the b road c u r r e n t s o f t h e r e p r e s s i o n t rade , i t i s ve ry d i f f i - c u l t t o o b t a i n r e l i a b l e d a t a on i n d i v i d u a l t r a n s a c t i o n s . Most governments do n o t p u b l i s h s t a t i s t i c s on such a c t i v i t i e s , and t h e companies i n v o l v e d tend t o shun p u b l i c i t y . The one e x c e p t i o n t o t h i s p a t t e r n o f s i l e n c e i s t h e U n i t e d S t a t e s where, under p r o v i s i o n s o f the Freedom o f I n f o r m a t i o n Ac t , t h e au thor was a b l e t o a c q u i r e d e t a i l e d da ta on s e c u r i t y e x p o r t s by t h e ma jo r US arms producers over a th ree -year p e r i o d . Accord ing t o documents f u r n i s h e d by t h e US O f f i c e o f M u n i t i o n s C o n t r o l (an agency o f t h e Department o f S t a t e ) these f i r m s s o l d some 50,000 p i s t o l s and r e v o l v e r s , 7.6 m i l l i o n rounds o f ammunit ion, 156,000 t e a r gas grenades, and 300 armoured c a r s t o T h i r d World p o l i c e f o r c e s between 1973 and 1976..8/ The O f f i c e o f M u n i t i o n s C o n t r o l a l s o p r o v i d e s gross s t a t i s t i c s on US arms e x p o r t s i n an annual r e p o r t t o Congress. Accord ing t o t h e r e p o r t f o r F i s c a l Year 1977, the US s o l d some $190 m i l l i o n w o r t h o f p o l i c e and p a r a m i l i t a r y gear t o T h i r d World c o u n t r i e s d u r i n g t h a t y e a r , b u t no i n d i c a t i o n i s made o f t h e r e l a t i v e d i s t r i b u t i o n between p o l i c e and m i l i t a r y forces?/. These s t a t i s t i c s are, of course, q u i t e ske tchy , b u t t h e y do g i v e us some i n d i c a t i o n o f the scope and magnitude o f US rep- r e s s i on e x p o r t s .

Be fo re p roceed ing f u r t h e r i n o u r d i s c u s s i o n o f t h e s u p p l i e r s o f r e p r e s s i o n , i t i s necessary t o d i s t i n g u i s h between p r i v a t e t r a d e i n r e p r e s s i o n commodi t i e s , and governmental programmes o f p o l i c e and mi 1 i t a r y ass is tance . Most o f the o r i g i n a l producers o f r e p r e s s i o n hardware a re p r i v a t e arms f i r m s which s e l l t o b o t h t h e domest ic and i n t e r n a t i o n a l markets . A t t h e same t ime , some Western governments have e s t a b l i s h e d s p e c i a l programmes t o f a c i l i t a t e t h e d e l i v e r y o f such equipment t o t h e s e c u r i t y f o r c e s o f f r i e n d l y T h i r d World regimes. I n these cases, t h e sup- p l y i n g government buys t h e needed commodit ies f rom domest ic producers and then d e l i v e r s them t o t h e u l t i m a t e u s e r . A l though t h e r e i s o b v i o u s l y a c e r t a i n amount o f o v e r l a p between p r i v a t e and p u b l i c s u p p l i e r s , i t i s h e l p f u l t o d e s c r i b e each group s e p a r a t e l y .

P r i v a t e s u p p l i e r s

Even a c u r s o r y examina t ion o f t h e I n t e r n a t i o n a l A s s o c i a t i o n o f Ch ie fs o f P o l i c e (IACP) Annual P o l i c e Buyers Guide r e v e a l s t h a t t h e r e a r e thousands o f f i r m s i n v o l - ved i n t h e des ign , p r o d u c t i o n and d i s t r i b u t i o n o f s e c u r i t y - r e l a t e d p roduc ts . Some o f these companies, such as Smith and Wesson, produce a wide range o f p roduc ts and employ t h e i r own m a r k e t i n g s t a f f t o promote overseas s a l e s . Most, however, a re r e l a t i v e l y sma l l companies which produce one o r two s p e c i a l i z e d p roduc ts . These companies a r e u s u a l l y a l l i e d w i t h who lesa le d i s t r i b u t o r s and e x p o r t f i r m s which assume r e s p o n s i b i l i t y f o r most o f t h e marke t ing and d i s t r i b u t i o n f u n c t i o n s . Such f i r m s , i n t u r n , a r e o f t e n a s s o c i a t e d w i t h s i m i l a r companies i n o t h e r c o u n t r i e s ,

permitt ing cross-national marketing of pa r t i cu l a r products. Together, t h i s net- work of producers, d i s t r i b u t o r s , and exporters can be ca l led the pol ice-i ndustrial complex.

Listed below a re some of the major Western producers of arms and equipment f o r the in ternat ional repression t rade . Because of the grea ter a v a i l a b i l i t y of data on USA and Br i t i sh f i rms, there i s a g rea t e r abundance of l i s t i n g s from those coun- t r i e s ; nevertheless, an e f f o r t has been made t o i den t i fy producers in o ther countr ies , and i t i s hoped t h a t fu r the r research wi l l producer a more comprehen- s ive l i s t i n the future:!?/

Small arms: USA: Smith and Wesson ( p i s t o l s and r evo lve r s ) , Colt Indust r ies ( p i s t o l s , revolvers, M-16 r i f l e s ) , Mili tary Armament Corporation (submachine guns), Remington Arms ( r i f l e s , shotguns); West Germany: Heckler & Koch ( p i s t o l s , r i f l e s , submachine guns) , Walther ( p i s t o l s ) ; Belgium: Fabrique Nationale ( p i s t o l s , r i f l e s , submachine guns); I s r a e l : I s rae l Mili tary Indust r ies (Uzi submachine guns).

Police hardware: USA: Smith and Wesson ( c lubs , helmets, handcuffs, e t c . ) , Fargo In ternat ional ( d i s t r i b u t o r s of clubs, helmets, handcuffs, e t c . ) , Technipol In ternat ional (helmets, handcuffs, e t c . ) ; West Germany: Siegfr ied Peters Electronic ( d i s t r i b u t o r s of police hardware and r io t -contro l munitions).

Riot-control munitions: USA: Smith and Wesson ( C N and CS grenades, r i o t guns, chemical M A C E ) , Federal Laboratories ( C N and CS grenades, r i o t guns), Fargo In ternat ional ( C N and CS grenades, r i o t guns), AAI Corporation ( C N and CS grenades); U K : Schermuly Ltd. (CS grenades, r i o t guns, rubber b u l l e t s ) ; Belgium: Fabrique Nationale ( t e a r gas grenades, rubber b u l l e t s ) ; Argentina: Fabrica Mi l i t a r ( t e a r gas grenades, r i o t guns).

Surveil lance devices: USA: Law Enforcement Associates (eavesdropping, bugging devices) , Smith and Wesson (Star - t ron night-vision devices) , Javel in Electronics (night-vision devices) , Dektor Counter-Intel l igence & Secur i ty , Inc . (eavesdropping devices) , Technipol International eavesdropping devices) , GTE Sylvania ( i n t ru s ion detection systems) ; UK: Marconi-Ei l i o t t Avionics Systems ( in t rude r alarms and survei l lance r a d a r s ) , Rank Pullin Controls (n ight -v is ion devices) ; West Germany: P . K . Electronic (eavesdropping and bugging devices) ; I s rae l : Is rae l A i r c ra f t Indust r ies , Inc. ( i n t ru s ion detection systems).

Police computers and command/control systems : USA: Rockwell In ternat ional (Printrak-250 computerized f inge rp r in t I . D. system), E-Systems , Inc. (Digi com mobile data communications network), Motorola (po l i ce communications systems); UK: Burroughs In ternat ional ( p o l i c e computer systems), In ternat ional Computers Ltd. (po l i ce computer systems), Marconi (po l i ce communications sytems), Ferranti (pol i ce communications systems) ; West Germany: Siemens (pol i ce data-processing sys tems ) . Armoured cars and vehic les : USA: Cadillac Gage (V-150 Commando armoured c a r ) , FMC Corporation (M-113 armoured personnel c a r r i e r ) ; U K : G K N Sankey (AT-105 armou- red in ternal s ecu r i t y veh ic l e ) , Short Brothers (Shoreland armoured c a r ) ; Alvis-Bri t i sh Ley1 and (Saracen armoured personnel c a r r i e r ) ; France: Panhard (AML armoured ca r and M3 armoured personnel c a r r i e r ) ; Switzerland: MOWAG (Roland, Piranha, and Grenadier armoured in ternal s ecu r i t y veh ic l e s ) ; Brazil : Engesa (EE-9 Cascavel armoured ca r and EE-11 Urutu armoured personnel c a r r i e r ) .

P r i s o n gear and r e s t r a i n i n g dev ices : USA: Fargo I n t e r n a t i o n a l ( l e g i r o n s , shack les , p r i s o n hardware) , Technipol I n t e r n a t i o n a l ( l e g i r o n s , shack les , thumb- c u f f s ) , Shok Baton Company ( e l e c t r i c shock d e v i c e s ) , J.M. Bucheimer Company ( l e a t h e r b i l l i e s ) .

So f a r , we have been t a l k i n g o f companies i n v o l v e d i n t h e p r o d u c t i o n and d i s t r i b u - t i o n o f r e p r e s s i o n hardware. As we no ted e a r l i e r , however, the r e p r e s s i o n t r a d e a l s o i n v o l v e s t h e s a l e o f t r a i n i n g and o t h e r "so f tware" systems. And w h i l e such s e r v i c e s a re u s u a l l y p r o v i d e d by governments r a t h e r than p r i v a t e s u p p l i e r s (see be low) , a number o f companies a re known t o be a c t i v e i n t h i s area. These companies i n c l u d e those arms producers which opera te t r a i n i n g programmes as a s e r v i c e f o r t h e i r customers, and p r i v a t e s e c u r i t y f i r m s which p r o v i d e guard s e r v i c e s and i n t e l - l i g e n c e - g a t h e r i n g programmes f o r t h e g i a n t m u l t i n a t i o n a l c o r p o r a t i o n s . Smi th & Wesson, f o r example, p rov ides t r a i n i n g i n r i o t - c o n t r o l o p e r a t i o n s and s u r v e i 11 ance o p e r a t i o n s a t i t s "Smith & Wesson Academy" i n S p r i n g f i e l d , Massachuset ts , w h i l e Federa l L a b o r a t o r i e s o f S a l t s b u r g , Pennsylvania, conducts seminars on chemical weapons f o r buyers o f i t s t e a r gas equipment. Wackenhut, I n c . , a ma jo r s u p p l i e r o f p r i v a t e guard s e r v i c e s i n t h e U n i t e d S ta tes , a l s o employs thousands o f armed guards i n C e n t r a l and South America and p rov ides i n t e l l i g e n c e r e p o r t s on p o l i t i c a l c o n d i t i o n s i n T h i r d World c o u n t r i e s f o r i t s c o r p o r a t e c l i e n t s ; and V i n n e l l Corp. p r o v i d e s i n t e r n a l s e c u r i t y s e r v i c e s i n Saudi A rab ia . Obvious ly , i t i s v e r y d i f f i - c u l t t o o b t a i n d e t a i l e d i n f o r m a t i o n on such a c t i v i t i e s , b u t we can be c e r t a i n t h a t as t h e m u l t i n a t i o n a l s ' con f idence i n t h e a b i l i t y o f t h e CIA and the Pentagon t o p r o t e c t t h e i r overseas o p e r a t i o n s d im in ishes , they w i l l i n c r e a s i n g l y t u r n t o t h e p r i v a t e s e c u r i t y o r g a n i z a t i o n s t o p r o v i d e a d d i t i o n a l p r o t e c t i o n .

Government s u p p l i e r s

As we have seen, t h e major i n d u s t r i a l powers g e n e r a l l y b e l i e v e t h a t i t i s i n t h e i r i n t e r e s t t o s t r e n g t h e n t h e i n t e r n a l s e c u r i t y capabi 1 i t i e s o f f r i e n d l y reg imes. T y p i c a l l y , such s u p p o r t i s p r o v i d e d i n the fo rm o f a i d t o a c l i e n t ' s m i l i t a r y and p a r a m i l i t a r y f o r c e s , b u t i n some cases ass is tance i s a l s o f u r n i s h e d t o p o l i c e and cons tabu la ry u n i t s . I n t h e case o f Grea t B r i t a i n and France, such a i d was f i r s t tendered d u r i n g t h e l a s t c o l o n i a l p e r i o d , when ind igenous p o l i c e and m i l i t a r y f o r c e s were e s t a b l i s h e d as a p r e l u d e t o independence, and o f t e n con t inued a f t e r - wards under post - independence coopera t ion programmes.

For the two superpowers, such ass is tance i s a l s o seen as a necessary concomitant t o extended a l l i a n c e systems. As p a r t o f t h e i r g l o b a l s t r u g g l e , Washington and Moscow have each s i g n e d a v a r i e t y o f mutual defense t r e a t i e s w i t h f r i e n d l y govern- ments i n t h e T h i r d World; i t i s obv ious, however, t h a t such arrangements a re o n l y as d u r a b l e as t h e governments which s igned them. Both powers have a c c o r d i n g l y p r o v i d e d a s s i s t a n c e t o t h e i n t e r n a l s e c u r i t y f o r c e s o f these regimes i n o r d e r t o h e l p guarantee t h e i r con t inued s u r v i v a l . Such a s s i s t a n c e has i n c l u d e d g r a n t s o f mi 1 i t a r y and p o l i c e hardware, 1 o w - i n t e r e s t l oans f o r t h e purchase o f arms, t r a i n - i ng programmes, t e c h n i c a l ass is tance , and a d v i s o r y suppor t . And, o f course, b o t h c o u n t r i e s have a t one t ime o r ano ther commit ted t h e i r own f o r c e s - o r those of ve ry c l o s e a l l i e s - t o t h e defense o f e m b a t t l e d c l i e n t s abroad.

To d e s c r i b e i n d e t a i l a l l o f t h e means by which t h e ma jo r powers s u p p o r t t h e s e c u r i t y f o r c e s o f f r i e n d l y governments would be a d i f f i c u l t and t ime-consumi ng t a s k . B u t because governments p l a y such an i m p o r t a n t r o l e i n s u s t a i n i n g t h e i n t e r - n a t i o n a l r e p r e s s i o n t rade , i t i s i m p o r t a n t t o g i v e some i n d i c a t i o n o f t h e scope of

such support . Accordingly, we wi l l look a t the world's leading supp United S ta t e s - and describe some of the major channels used fo r the s ecu r i t y hardware and software t o repressive regimes abroad:

l i e r - the t r ans fe r of

Mili tary Assistance Program MAP): Provides grants of arms, ammuni t i o n , t ra in ing A d forces of f r iendly regimes. Congress voted in 1974 t o gradually abolish the MAP programme in favour of s a l e s t ransact ions ; however, grant ass is tance continues t o be provided t o se lec ted governments ( cu r r en t ly the Phi l ippines , Jordan, Spain and Portugal) . Under US law, such aid cannot be provided t o law enforcement agencies, but MAP aid has gone t o paramili- t a ry forces which perform a dual mi l i ta ry /pol ice function (such as the Nicaraguan National Guard), and t o i l i t a r y forces c o m i t t e d t o c i v i l secur i ty duty under martial law conditions .d/ Foreign Mili tary Sales (FMS) programme: Like MAP, the FMS programme provides arms, equipment, t r a in ing and services t o f r iendly governments - though here of course the r ec ip i en t must pay f o r such commodities themselves. Most FMS t ransact ions involve conventional mi 1 i t a ry hardware, but a t l e a s t some involve in ternal secu- r i t y hardware, such as t e a r gas, armoured ca r s , and survei l lance systems. Recent s a l e s t o Thai 1 and, fo r ins tance , include 32 Rockwell OV-10 "Bronco" counter- insurgency planes, 50 Cadillac Gage V-150 "Commando" armoured ca r s , and $169,481 worth of "concertina" barbed wire.

In ternat ional Mil i ta ry Education and Training (IMET) programme: When Congress voted t o phase out the MAP programme, i t s e t up a specia l account f o r mi l i ta ry t r a in ing , which had oreviouslv been financed with MAP funds. The IMET proqramme provides t r a in ing t o mil i tar; and parami 1 i t a ry personnel of f r iendly governments a t regular mi l i ta ry schools in the United S ta t e s and a t the US Army School of the Americas and the Inter-American Air Forces Academy in the Panama Canal Zone. All t o l d , the IMET programme has provided t r a in ing to 491,721 mi l i ta ry personnel from 81 countries s ince 1950 a t a cos t of some $2 b i l l i o n . And while many of these t r a in ing programmes emphasize conventional mi l i ta ry sub jec t s , they a l s o include courses on in ternal s ecu r i t y opera t ions , urban counter-insurgency, and other topics which bear upon po l i t i ca l warfare.

The Public Safety Program: On the grounds t h a t police forces cons t i t u t e the f i r s t l i n e of defense agains t insurgency", President Kennedy in 1961 es tabl ished the Office of Public Safety (OPS) t o provide arms, equipment, t r a in ing , and advisory support t o the c iv i l s ecu r i t y forces of f r iendly Third World governments. All t o l d , some $324 mil l ion was devoted t o t h i s purpose before the programme was abolished by Congress i n 1974. OPS funds were a l so used t o finance the Interna- t ional Pol icy Academy (IPA) in Washington, 0. C . , and o ther t r a in ing programmes s e t up f o r foreign police personnel. Over one mill ion policemen reportedly recei - ved some OPS-provided t r a in ing during the 13 years of i t s exis tence .

In ternat ional Narcotics Control (INC) programme: A 1 though Congress has outlawed the del ivery of arms and t r a in ing t o foreign police forces through the OPS prog- ramme, i t has es tabl ished a special fund f o r the support of forces engaged in ant i -narcot ics operations. While these funds are supposedly used f o r anti-drug operations only, there i s considerable evidence t h a t INC rec ip ients include forces engaged i n an t i -d i s s iden t programmes as well . In Thailand, f o r ins tance , INC a id was tendered t o the Border Patrol Police ( B P P ) , a paramili tary force which took pa r t in the bloody invasion of Thammasat University in Bangkok during the mi l i t a ry coup of 6 October 1976 .21

The US government a l s o p l a y s an i m p o r t a n t manager ia l r o l e i n the r e p r e s s i o n t r a d e by r e g u l a t i n g the volume and d i r e c t i o n o f p r i v a t e s a l e s . Under c u r r e n t law, e x p o r t e r s o f commodit ies on t h e US Mun i t i ons L i s t ( a r o s t e r o f p roduc ts considered t o be weapons o r implements o f war) must o b t a i n an e x p o r t l i c e n s e f rom t h e O f f i c e o f Mun i t i ons C o n t r o l (OMC) be fo re s h i p p i n g such i tems overseas. By s l o w i n g down o r speeding up t h e p r o c e s s i n g o f these l i c e n s e s , OMC determines t h e r a t e o f f low o f US goods e n t e r i n g i n t e r n a t i o n a l markets , and thus a l l o w s Washington t o f a c i l i - t a t e o r f r u s t r a t e d e l i v e r i e s t o p a r t i c u l a r r e c i p i e n t s abroad i n accord w i t h c u r r e n t US p o l i c y .

Th is manager ia l r o l e becomes p a r t i c u l a r l y s i g n i f i c a n t when we r a i s e the q u e s t i o n o f human r i g h t s p o l i c y . Sure ly , t h e s a l e o f s e c u r i t y equipment t o r e p r e s s i v e governments would appear t o c o n t r a d i c t P r e s i d e n t C a r t e r ' s s t a t e s commitment t o the p romot ion o f human r i g h t s abroad. Yet we f i n d t h a t w h i l e C a r t e r , under Congres- s i o n a l p ressure , has banned d e l i v e r i e s o f r e p r e s s i v e gear t o some p rominen t v i o - l a t o r s o f human r i g h t s (e.g. Nicaragua, Paraguay), he has a c c e l e r a t e d d e l i v e r i e s of s e c u r i t y equipment t o o t h e r r e p r e s s i v e regimes (e.g. Indones ia , Tha i land , South Korea, t h e P h i l i p p i n e s ) . And when cha l lenged on t h e apparent c o n t r a d i c t i o n between h i s words and a c t i o n s , C a r t e r has i n s i s t e d t h a t US " n a t i o n a l s e c u r i t y " , as rep resen ted by Amer ica 's extended a l l i a n c e sys tems, took au tomat i c precedence over human r i g h t s c o n s i d e r a t i o n s . Thus i n a message t o Congress on US m i l i t a r y e x p o r t p o l i c i e s , C a r t e r cau t ioned a g a i n s t impos ing any arms embargoes on human r i g h t s v i o l a t o r s on t h e grounds t h a t such bans would r e s u l t i n "arms t r a n s f e r c u t - o f f s ... i n v o l v i n g sma l l c o u n t r i e s whose i n d i v i d u a l impor tance f o r o u r s e c u r i t y i n t e r e s t s may n o t be g r e a t , b u t whose impor tance f o r o u r c o l l e c t i v e impor tance may be" . C a r t e r went on t o say: "There i s a r i s k o f o f f e n d i n g such c o u n t r i e s , the reby i n c u r r i n g damage t o o u r r e g i o n a l and g l o b a l i n t e r e s t s . "w The manager ia l r o l e o f t h e US government i s a l s o c r i t i c a l when we cons ide r t h e imp lementa t ion o f U n i t e d Nations-mandated embargoes on arms d e l i v e r i e s t o South A f r i c a and Zimbabwe (Rhodesia) . O f f i c i a l l y , t h e U n i t e d S t a t e s i s commit ted t o r e s p e c t t h e UN embargo on South A f r i c a ( v o l u n t a r y s i n c e 1963, compulsory s i n c e 1978) and on Zimbabwe (mandated i n 1966); i n p r a c t i c e , however, Washington has p e r m i t t e d s u b s t a n t i a l d e l i v e r i e s o f m i l i t a r y hardware t o bo th c o u n t r i e s through semi - lega l o r i l l e g a l channels . I n most cases, these t r a n s f e r s i n v o l v e " t h i r d c o u n t r y " s a l e s o f US-desi gned hardware by overseas s u b s i d i a r i e s o r a f f i 1 i ates o f US arms f i r m s , o r o f "g ray -a rea" equipment n o t t e c h n i c a l l y covered b y t h e UN mea- sures. Examples o f b o t h t ypes o f t r a n s a c t i o n s f o l l o w :

. " T h i r d - c o u n t r y " s a l e s : A l though US r e s t r i c t i o n s on t h e e x p o r t o f m i l i t a r y hardware t o South A f r i c a and Rhodesia app ly t o a l l US-designed goods, whether produced i n t h e USA o r abroad, t h e government has tended t o over look s a l e s o f US- des igned equipment by companies l o c a t e d i n o t h e r c o u n t r i e s ( u s u a l l y i n Europe) t o t h e embargoed c o u n t r i e s . Such " t h i r d - c o u n t r y " s a l e s u s u a l l y i n v o l v e t h e s a l e o f US-designed hardware under 1 i cense by overseas s u b s i d i a r i e s o r a f f i 1 i ates o f US arms f i r m s . Thus we f i n d t h e Aeronau t i ca Macchi o f I t a l y (an a f f i l i a t e o f Lockheed A i r c r a f t ) , has s o l d l i cense-p roduced Lockheed-60 Conestoga STOL ( s h o r t - t a k e o f f - and- landing) t r a n s p o r t p lanes t o b o t h t h e South A f r i c a n A i r Force (SAAF) and t h e Rhodesian A i r Force (RhAF), w h i l e Reims A v i a t i o n o f France (an a f f i l i a t e o f Cessna A i r c r a f t ) has s o l d Cessna Model-337 M i l i r o l e coun te r - insu rgency p lanes t o t h e R~AF.-HI O t h e r l i cense-p roduced US equipment which has shown up i n SAAF and RhAF hands i n c l u d e : B e l l Model-205A I r o q u o i s t r o o p - c a r r y i n g h e l i c o p t e r s (produced by Agusta o f I t a l y ) ; Avco-Lycoming GSO-480 and IGSO-540 a i r c r a f t engines (produced by

Piaggio of I t a l y ) , and Teledyne-Continental 10-360 a i r c r a f t engines (produced by Rolls-Royce of Great 8 r i tain).!^./ When asked t o explain such t ransact ions , US o f f i c i a l s indica te t h a t they re ly on the cooperation of the third-country govern- ments involved t o prevent such s a l e s , and tha t in the absence of such cooperation there i s l i t t l e t h a t they can do t o s top them.

. "Gray-area" s a l e s : A1 though the government has outlawed the export of "major combat equipment" t o the embargoed countr ies , i t has sometimes permitted the s a l e of s i g n i f i c a n t mi l i t a ry support equipment such as t ranspor t planes, he1 i cop te r s , computers and communications systems t o South African mi 1 i ta ry au tho r i t i e s . Such products a r e known as "gray-area" items because, while obviously contr ibut ing t o South African mi l i t a ry c a p a b i l i t i e s , they do no t , s t r i c t l y speaking, v io l a t e the or ig inal 1963 U N embargo on mi 1 i t a ry equipment. During the Nixon Administration, in f a c t , i t became the s t a t ed policy of the US Government t o supply such items t o Pre tor ia so long as an appearance of maintaining the embargo was sus ta ined. Major equipment supplied to the SAAF in t h i s manner include: seven Swearingen Merlin-IV t r anspor t planes, s ix teen Lockheed L-100 cargo planes, nd twenty-two Cessna Model-185 Skywaqon l i a i son and reconnaissance ai r c r a f t . k / In response to the new mandatory UN embargo imposed in November 1977, President Carter has banned sa l e s of any products t o the South African mi l i t a ry , but has continued t o allow exports t o mili tary-capable hardware ( t rucks , he l icopters , computers) t o "c iv i l i an e n t i t i e s " in South Africa which could e a s i l y t r a n s f e r them t o mi l i t a ry use .X/

These channels have a l so been used t o circumvent the arms embargo imposed by Congress on Chile i n 1976, and other r e s t r i c t i o n s on mi l i t a ry s a l e s mandated by US human r igh t s l eg i s l a t i on . Since we can assume t h a t the arms producers wi l l always take advantage of any loopholes in such l e g i s l a t i o n , i t i s obvious t h a t government o f f i c i a l s wi 11 determine the ex t en t of such t ransact ions through the exerc ise of t h e i r d iscre t ion in i n t e rp re t ing and enforcing the r e s t r i c t i o n s invol- ved. I t i s necessary t o recognize, therefore , t h a t the mere adoption of an embargo wi l l not necessar i ly r e s u l t in t he t o t a l cessa t ion of arms t r ans fe r s i f key government o f f i c i a l s are d is inc l ined t o take the kinds of s teps needed t o insure f u l l compliance with such measures.

V. CONCLUSION AND RECOMMENDATIONS

As we have seen, the world-wide demand f o r repression technology i s growing a t a s t ead i ly increas ing ra te . Unless s teps are taken by the leading producers of these commodities t o r e s t r a i n t h e i r expor ts , repress ive governments w i l l be able t o acquire more and more such products in the years ahead - thus in tens i fy ing t h e i r control over sub jec t populations and insuring t h a t an t i -d i s s iden t operations wi l l become more systematized and v io l en t . And, despite a l l t he world-wide e f f o r t s t h a t have been undertaken t o promote human r igh t s and socia l j u s t i c e among disad- vantaged populations, t he balance of power w i l l continue t o favour the forces of repression.

Although t h i s conclusion appears incontrover t ib le from the evidence a t hand, the responsible national and in ternat ional au tho r i t i e s have taken very few s t eps t o r e c t i f y the s i t u a t i o n . Despite the e f f o r t s of some non-governmental organizations (NGOs) t o r a i s e t h i s i ssue a t t he U N Special Session on Disarmament and other UN meetings, t he United Nations has s t i l l not considered any proposals fo r r e s t r a i n - ing the repression trade. And, as we have seen, the Carter Administration's much-

p u b l i c i z e d human r i g h t s p o l i c y has n o t h a l t e d t h e f l o w o f s e c u r i t y hardware t o r e p r e s s i v e regimes abroad. Accord ing ly , any i n i t i a t i v e s i n t h i s a rea w i l l have t o come f rom t h e p u b l i c , and p a r t i c u l a r l y f rom those NGOs concerned w i t h human r i g h t s , development, and disarmament. F o r t u n a t e l y , some o f these groups ( p a r t i c u - l a r l y Amnesty I n t e r n a t i o n a l and t h e World Counci l o f Churches) have begun t o d i scuss t h i s q u e s t i o n and t o cons ide r ways i n which non-governmental groups can t a k e a c t i o n i n t h i s area.

Be fo re an e f f e c t i v e programme can be dev ised t o cu rb t h e r e p r e s s i o n t r a d e , however, we need t o know a l o t more about how i t i s o rgan ized , f i nanced , and managed. Th is essay i s i n t e n d e d t o d e l i n e a t e t h e major f e a t u r e s o f t h i s t rade , and t o show how a p a r t i c u l a r c o u n t r y - t h e U n i t e d S ta tes - has he lped t o s u s t a i n i t . B u t t h e r e a r e s t i l l many gaps i n o u r knowledge, and o n l y by l e a r n i n g more abou t t h e i n v o l v e - ment o f o t h e r c o u n t r i e s - b o t h s u p p l i e r s and r e c i p i e n t s - can we develop a complete p i c t u r e o f t h e i n t e r n a t i o n a l l i n k a g e s which u n d e r l i e t h i s commerce.

U n f o r t u n a t e l y , d a t a on t h e t r a n s f e r o f p o l i c e and s e c u r i t y equipment i s ve ry d i f f i c u l t t o o b t a i n . T h i s i s p a r t l y due t o t h e secrecy w i t h which most c o u n t r i e s shroud such t r a n s a c t i o n s , and p a r t l y t o t h e emphasis p l a c e d on ma jo r weapons by those o r g a n i z a t i o n s which m o n i t o r t h e arms t r a f f i c . As a f i r s t s t e p i n combat t i ng r e p r e s s i o n sa les , t h e r e f o r e , we shou ld :

1. p u t p ressure on t h e i n d u s t r i a l c o u n t r i e s t o r e l e a s e i n f o r m a t i o n on e x p o r t s o f p o l i c e and i n t e r n a l s e c u r i t y hardware; and

2. persuade groups 1 i ke t h e Stockholm I n t e r n a t i o n a l Peace Research I n s t i t u t e (SIPRI) t o b e g i n c o l l e c t i n g da ta on t h e i n t e r n a t i o n a l t r a d e i n sma l l arms and o t h e r p o l i c e hardware.

The n e x t s t e p would be t o o r g a n i z e an i n t e r n a t i o n a l " c l e a r i n g house" f o r t h e c o l l e c t i o n , a n a l y s i s , and d i s s e m i n a t i o n o f t i m e l y i n f o r m a t i o n on r e p r e s s i o n t r a n s - f e r s . Such an agency, i d e a l l y l o c a t e d w i t h i n t h e U n i t e d Na t ions s t r u c t u r e , c o u l d a l s o be r e s p o n s i b l e f o r r e s e a r c h i n g and exposing v i o l a t i o n s o f t h e arms embargoes on South A f r i c a and Zimbabwe ( o r any o t h e r UN-mandated embargoes).

A t t h e same t i m e t h a t such an i n f o r m a t i o n - g a t h e r i n g e f f o r t i s s e t i n mot ion , we must a l s o launch a wor ldw ide educa t iona l campaign t o focus p u b l i c a t t e n t i o n on t h e r e p r e s s i o n t r a d e . A l though i n most c o u n t r i e s t h e press u s u a l l y c a r r i e s s t o r i e s on ma jo r i n t e r n a t i o n a l arms t r a n s a c t i o n s , ve ry l i t t l e , i f a n y t h i n g , i s n o r m a l l y s a i d about t r a n s f e r s o f p o l i c e and s e c u r i t y hardware. Thus, even i n those Western c o u n t r i e s where t h e r e i s an a c t i v e human r i g h t s movement, most people a re unaware o f t h e f a c t t h a t t h e i r government and/or l o c a l arms merchants a re s u p p l y i n g s e c u r i t y hardware t o r e p r e s s i v e regimes abroad. Once t h i s d i s c o v e r y has been made, however, i t i s o f t e n p o s s i b l e t o m o b i l i z e p u b l i c o p i n i o n a g a i n s t t h e more consp i - cuous r e p r e s s i o n t r a n s f e r s .

I n t h e U n i t e d S t a t e s , f o r i n s t a n c e , p u b l i c concern over r e p o r t s o f US invo lvement i n t o r t u r e i n Vietnam and L a t i n America he lped spark the success fu l campaign t o a b o l i s h the P u b l i c S a f e t y programme. S i m i l a r l y , o u r e f f o r t s t o p u b l i c i z e s a l e s by US f i r m s o f p o l i c e gear t o T h i r d World d i c t a t o r s h i p s has l e d Congress t o impose new r e s t r i c t i o n s on such e x p o r t s . Under t h e I n t e r n a t i o n a l S e c u r i t y Ass is tance A c t o f 1978, S e c t i o n 5026 o f the F o r e i g n Ass is tance A c t was amended t o i n c l u d e the f o l l o w i n g p r o v i s i o n : " S e c u r i t y Ass is tance may n o t be p r o v i d e d t o t h e p o l i c e ,

domestic i n t e l l i gence , o r s imi l a r law enforcement forces of a country, and l icen- ses may not be issued under the Export Administration Act of 1969 f o r the export of crime control and detection instruments and equipment t o a country, the govern- ment of which engages in a consis tent pattern of gross v io la t ions of in ternat ion- a l l y recognized human r igh t s . . . " This provision was ca l led the "thumbscrew amendment" a f t e r Rep. Don Fraser - using information provided by the I n s t i t u t e f o r Policy Studies - revealed t h a t the Commerce Department had permitted sa l e s of thumbscrews and other " res t ra in ing devices" t o countries which had been c i t ed f o r f requent human r igh t s v io la t ions . &/

Hopefully, as people in o ther arms-exporting countries learn about t h e i r govern- ment's involvement in the repression t r ade , they wi 11 campaign f o r s imi l a r r e s t r i c t i o n s . However, while such uni la tera l measures could have a s i g n i f i c a n t impact on the repression t r ade , i t i s obvious t h a t , given the t ru ly in ternat ional nature of t h i s commerce, some s o r t of mul t i - la tera l action i s necessary t o assure a subs t an t i a l reduction in repression t r ans fe r s . We should attempt, therefore , t o have small arms and police hardware included among the items to be covered in any mul t i l a t e r a l arms export control agreements (such as the proposed US-Soviet l imi t a t i ons on arms sa l e s t o the Third World), and we should campaign f o r the adoption of an in ternat ional covenant banning the use, s a l e , or de l ivery of a l l t o r tu re equipment and methodologies. A t t he same time, we should lobby with our respect ive U N delegations t o have the repression t rade placed on the agenda of fu tu re U N meetings on disarmament and human r igh t s . Obviously, we cannot expect immediate success in these various e f f o r t s , but by r a i s ing our concerns again and again we can c rea t e a global consciousness about t he existence of the repression t r ade , and t h u s s e t the s tage f o r formal ac t ion t o curb such t r ans fe r s .

NOTES

I / US Arms Control and Disarmament Agency, World Mil i ta ry Expenditures and Arms - Transfers , 1967-76 (Washington: ACDA, 1978), p.115 (and previous ed i t i ons ) .

2 / x, p.161. -

3/ Telephone interview with Mr. G . H . Steinemann, President of Jonas A i rc ra f t and - Arms Company, New York Ci ty , 6 Ju ly 1976.

4/ The principal sources f o r t h i s study include the annual SIPRI Yearbook, - published by the Stockholm Internat ional Peace Research I n s t i t u t e , and Jane ' s Infantry Weapons.

5/ General Robert H . Warren in US Congress, House of Representatives, Committee - on Appropriations , Foreign Assistance and Re1 a ted Agencies Appropriations f o r 1971, Hearings, 91st Congress, Second Session, 1970, Pa r t I , p.389. -

6/ US Agency f o r In ternat ional Development, US Overseas Loans and Grants, 1 Ju ly - 1945 - 30 September 1977 (Washington: U.S. AID, 1978).

7/ US Agency fo r In ternat ional Development, A.I.D. Operations Report, data as of - 30 June 1973 (Washington: U.S. AID, 1973) and e a r l i e r ed i t i ons .

8/ From export l icenses issued by the Office of Munitions Control t o Smith & -

Wesson; Fargo I n t e r n a t i o n a l ; Federal Labora to r ies ; Jonas A i r c r a f t and Arms Company; Polak, Win te r and Company; C a d i l l a c Gage; C o l t I n d u s t r i e s ; and M i l i t a r y Armament Corpora t ion between 1 January 1973 and 1 A p r i l 1976.

9/ US Department o f S ta te , Report Required by Sec t ion 657, Fore ign Assis tance Ac t , - F i s c a l Year 1977 (Washington:~epartment o f S ta te , 1978).

10/ Th is l i s t i s based on t h e a u t h o r ' s own f i l e s , documents p rov ided by t h e Of f ice - of Mun i t ions Cont ro l under t h e Freedom o f I n f o r m a t i o n A c t (see Note 8 ) ; P o l i c e Ch ie f , Annual IACP P o l i c e Buyers ' Guide (October 1977), pp.323-45; Jane's I n f a n t r y Weapons; Jane's Weapons Systems; and t h e l i s t p rov ided i n Steve Wriaht . "An Assessment o f t h e New ~ e c h n i a i e s o f R e ~ r e s s i o n " . i n Mar jo - - Hoefnagles, ed., Repression and Repressive v i o l e n c e (~mste rdam: wets &

-

Z e i t l i n g e r , l 9 7 7 ) , pp. 161-63.

11/ See: Compt ro l le r o f t h e U n i t e d S ta tes , Stopping U.S. Assis tance t o Fore ign - P o l i c e and Pr isons, Report t o Congress (Washington: General Account ing Off ice, 1976), pp.31-36.

12/ I b i d . pp. 22-25 - - 13/ US Congress, Senate, Commi t t e e on Fore ign Re1 a t i o n s , Arms T r a n s f e r P o l i c y , -

Report t o Congress, 95 th Congress, F i r s t Session, 1977, pp .26-7.

141 Jane 's A l l t h e Wor ld ' s A i r c r a f t , 1973-74 ed., p.122; The B a l t i m o r e Sun, 22 November 1977.

Jane 's A l l t h e Wor ld ' s A i r c r a f t , 1972-73 ed. p.129; 1976-77 ed. , pp.59, 154; The Washington Post (14 December 1978).

Michael T. K l a r e and E r i c Prokosch, " G e t t i n g Arms t o South A f r i c a , " The Nat ion (8-15 J u l y 1978), pp.49-52.

The Washington Pos t (15 December 1977).

Cyn th ia Arnson, "The E x p o r t i n g o f T o r t u r e by America", Los Angeles Times (26 A p r i l 1978).

E L COMERCIO I N T E R N A C I O N A L DE L A R E P R E S I O N : L A S T R A N S F E R E N C I A S D E

ARMAS Y E L CONTROL S O C I A L E N E L TERCER MUNDO

Resumen: Los principales proveedores de m a s abastecen tarnbibn a los regirnenes represivos del Tercer Mundo y a sus fuerzas de seguranza interna en arma- rnentos y servic ios que se destinan a Za luta contra la oposicGn i n t e m a a ta le s regirnenes, y l o hacen, a veces, transgrediendo embargos le&es exis tentes . A pesar de que su valor rnonetario es modesto, e l cornercio de la represibn afecta probablernente mas la uida diaria de las masas que las transferencias de annas rnilitares. El tercer sisterna puede i n f l u i r en tat eomereio esclareciendo y haciendo presion para que se cumplan las restricciones gubernmentales que lo l imitan.

I F D A DOSSIER 10 , AUGUST 1979

B U I L D I N G BLOCKS

CAN THEY DO IT? PARTICIPATION OF NGOs OF THIRD WORLD COUNTRIES IN NIEO-ORIENTED PROJECTS by J.S. Szuszk iewicz D 1/31 Vasant Vihar New De lh i , I n d i a

O r i g i n a l language: E n g l i s h

Abstract: I n the superf ic ial opinion o f many people, i f not most, the NIEO makes an appeal to the industr ial ized countries for changes i n the i r ex i s t ing economic pol ic ies i n favour of the Third World. However, the Programme of Action of the SIEO, i n addition t o suggesting such changes, also ineludes a substantial number of actions t o be in i t ia t ed by Third World countries.

NGOs are an -important factor i n the economic and social development of the Third World. Depending on the -nature of the i r a c t i v i t i e s , they do valuable research work and they have close contact with the masses and the i r problems. Yet , t he i r ro le i n development i s not clearly defined. When the United Nations system ca l l s for wider and c loser cooperation with NWs, i t thinks - i n the f i r s t place i f not exclusively - of NGOs i n industr ial ized countries, i . e . NGOs i n a position t o sponsor development projects i n the Third World or t o make a financial contr-ibu- t i o n i n other ways. NGOs i n Third World countries are stunned when they real ize that , save very few exceptions, there i s no place or role for them i n the develop- ment a c t i v i t i e s o f most United Nations agencies. I n fact, the United Nations system, for various reasons, has w established policy for participation o f NGOs i n Third World countries, i . e . , NGOs which cannot make a financial contribution.

While i t i s obvious that a vast unknown en t i t y that could be mobilized thus l i e s untapped or i s not tapped i n an organized and systematic way, the question must be asked t o what extent NWs i n Third World countries i n fact are i n a position t o participate e f f e c t i v e l y i n development. A reply should, i n the f i r s t place, come from fIGOs themselves. With t h i s i n mind a survey uas conducted among NWs i n India. I t may be considered a pi lo t project. Simultaneously a more limited survey was conducted among certain government i n s t i t u t i o n s . The 'purpose was t o f ind out the extent t o which NGOs i n India are already involved i n o f f i c i a l development a c t i v i t i e s and t o ascertain the opinion of competent o f f i c i a l s i n regard t o the usefulness of NW a c t i v i t i e s .

P A R T I C I P A T I O N DES ONGs DES PAYS DU T I E R S MONDE DANS DES PROJETS CONTRIBUANT AU NOUVEL ORDRE INTERNATIONAL

Resume: Dans Z'opinion superf ' ieielle de beaucoup, sinon de la majorit6, Le NIEO e s t un appel aux pays industriaLis&s pour quf-ils modifient l e w s polit iques 6corwirriques en favour du Tiers Monde. Cependant, Ie programme d 'act ion du NIEO ine lu t , en outre, bon wmbre d'actions 6 entreprendre par Ie Tiers Mode.

Les organisations non-gouvernementales ( O N G ) sont un important facteur de develop- pement. Selon la nature de l e w s ac t i v i t6s , e l l e s contribuent 2 la recherche e t e l l e s sont en contact S t r a i t avec les masses e t leurs probldmes. Cependant l e w r8le dans l e developpement n ' e s t pas clairement de f in i . @and l e systeme des Nations Unies demands une plus large e t plus d t ro i t e cooperation avec l e s ONGs, i l s ' a g i t primipalement sinon exclusivement des ONGs des pays industr ial ises , c 'est-&dire dr0NGs en mesure d'aider un projet de developpement duns l e Tiers Monde. Les OKs dans Ze Tiers Monde sont surprises quand e l l e s real isent que, sauf exception, i l n ' y a gudre de place pour e l l e s duns les a c t i v i t e s de develop- pement de l a plupart des i n s t i t u t i o n s des Nations Unies. En f a i t , l e s systdme des Nations Unies, pour diverges raisons, n'a pas formule de politique pour la participation des ONGs du Tiers Monde, crest-&dire des ONGs qui ne peuvent pas apporter de contribution f inamidre .

Bien q u ' i l s o i t evident q u ' i l y a 26 une vaste reserve pas ou peu u t i l i d e , la question se pose de savoir jusqur& quel point l e s ONGs du Tiers Mode sont en mesure de participer effectivement au ddvetoppement. La reponse do i t venir d'abord des ONGs elles-memes. Cres t pour cela qu'une enquete a ete conduite parmi, l e s ONGs indiennes. One peut la considerer eomme un proje t -pi lo te . Parall2lement, une enquGte plus lim-itee a etc conduite parmi certaines i n s t i t u t i o n s gouverne- mentaies. I1 s 'ag i s sa i t de determiner dans quelle mesure l e s ONGs ¥Lndienne e ta ien t engagees dans des a e t i v i t e s ' o f f i c i e l l e s ' de diveloppement e t de s'informer de 1 'opinion de 1 'adninistration 2 c e t egard.

LA PARTIC IPACI~N DE LAS ONG DE LOS PAI'SES DEL TERCER MUNDO E N L O S PROYECTOS QUE C O N T R I B U Y E N A L N O E I

En la opinion superf ic ial de muchas personas, ta lvez mismo de la mayoria, e l Nuevo Orden Econdmico Internacional represents una sdpliea a 10s paises industria- lizados para que cambien su pol i t ica econdmica de forma a favoreeer a 10s paises del Tereer Mundo. S in embargo, e l programa de aceidn del NOEI ademds de sugerir t a l e s eambios, tambidn incluye varias actwidades que cabe a1 Tercer Munch in ie iar . Las ONG son un factor importante de desarrollo econhmieo y social del Tercer Mundo. Segdn e l eardeter de sus actividades, contribuyen a investigaciones importantes y mantienen contactos estrechos con e l pueblo y sus problemas. Pero su papel en e l desarrollo no es td claramente definido. Cuando e l sistema de las Naeiones Uni-das demands una eooperaeiin mds estrecha y a la vez mds amplia con las ONG, se re f i e re pr¥ineipalmnte y hasta exclusivmente , a las ONG de 10s paises industrializaahs, e s d e e i ~ a ONG en estado de ayudar o apoyar con finanzas, a proyectos en e l Tereer Mundo.

Las ONG del Tercer Mundo queddn asombradas euando se dun cuenta de que, eon poeas excepciones, no hay lugar o papel para e l l a s en las actividades de desarroZlo de l a mayoria de las agendas de las Naeiones Unidas. En e fec to , e l sistema de las NU, par vdrias razones, no ha formulado poUtica alguna para asegurar la parti- eipaci.6n de Zas ONG de 20s poises del Tercer k n d o , e s deeir ONG que no pueden hacer eontribueiones financievas.

Alin que sea evidente que aqui e x i s t e una reserva enorme que no ha sido ut i l i zada, v d e preguntarnos hasta que punto las ONG del Tercer Mundo estan en estado de participar efectivamente en su desarrollo. La respuesta debe venir sobre todo de e l l a s misrras. Es pop es to que se llevd a cab0 una investigacidn entre las ONG en India. Podemos consideraria como un proyecto piloto. Paralelamente un proyecto mds Emitado ha sia'o llevado a cabo entre aier tas ins t i tue iones gubernamentales para deteminar hasta que punto estaban ya las ONG en India ocupadas en acti-vidades ofi 'ciales de desarro'11.o y para averiguar la opinidn de la administracidn a su respecto,

J .S . Szuszkiewicz

CAN THEY DO I T ? PARTICIPATION O F %OS OF THIRD WORLD COUNTRIES IN NIEO-ORIENTED PROJECTS

I . INTRODUCTION

The Programme of Action on the Establishment of a New Internat ional Economic Order (General Assembly resolut ion 3202/S-VI) assigns a d e f i n i t e ro l e a l s o t o the developing countr ies" fo r the introduction of ce r t a in changes as a precondition f o r the establishment of a NIEO. Measures suggested by the Programme of Action include, i n t e r a l i a , exploi ta t ion and marketing of natural resources; processing of raw mater ia ls in the producer developing countr ies ; a r r e s t i ng dese r t i f i ca t ion ; s e t t i n g up of new indust r i a1 capaci t ies ; vocational t r a in ing ; t r ans fe r of techno- logy; research; crea t ion of su i t ab l e indigenous technology; e t c . (See Annex I ) .

The United Nations and i t s specia l ized agencies as well a s , t o a degree, national governments, never f a i l t o s t r e s s the importance of the contribution of non- governmental organizations to economic and soci a1 development. Yet, while the involvement of NGOs with headquarters i n i ndus t r i a l i zed countries i s well es tab- l ished (by v i r tue of t h e i r f inancia l strength which enables them t o sponsor projec ts i n Third World coun t r i e s ) , the U N system and, probably, most governments, have no firm policy o r concept f o r the involvement of NGOs located i n Third World countr ies . There i s no organized way of knowing on a world-wide ( o r probably even on a national ) basis t o what extent and in which pa r t i cu l a r areas NGOs in Third World countr ies , where most of mankind l i v e s , can make a pos i t i ve contribu- t i on t o NIEO. A t present, t h e i r contributions a r e acc identa l , without global guidance, frequently without national guidance, and do not form, as they should, pa r t and parcel of the po l i c i e s and action plans of the U N system in respect of NIEO. Hence, NGOs in Third World countries complain about not being used t o capacity - or not being used a t a11 - by governments, inter-governmental organi- zations and in ternat ional NGOs .l/

Thus, a vas t unknown e n t i t y which could be mobilized f o r the implementation of NIEO l i e s untapped o r , a t l e a s t , not tapped s u f f i c i e n t l y on world-wide bas is and in an organized, NIEO-oriented way. However, the question must be asked: t o what ex t en t a r e NGOs in the Third World in a pos i t ion t o e f f ec t ive ly pa r t i c ipa t e i n NIEO-oriented a c t i v i t i e s ?

How can NGOs in Third World countries cont r ibute t o NIEO?

NGOs ( inc luding research i n s t i t u t i o n s , professional organizations, voluntary agencies, t rade unions, chambers of commerce, youth organiza t ions , e t c . ) can influence policy-makers on a11 l eve l s and enlighten the general public. They can t r a i n ce r t a in sec t ions of the population, i den t i fy p r i o r i t i e s and s p e c i f i c prob- lems, and execute projec ts o r programmes envisaged by NIEO, ranging from rura l and secondary indus t r i e s t o management development t o introduction of indigenous technology. (See Annex 11)

I / This has been the au tho r ' s personal experience during 15 years as Director of - U N Information Centres f o r 9 i ndus t r i a l i zed and Third World countries in four cont inents .

11. NGO CONFERENCE

A s e r i e s of "NGO Consultations" were held in New Delhi between October and Decem- ber 1978 with a view t o f inding ways and means of involving NGOs in development projec ts sponsored by the U N system. The meetings were a lso attended by repre- s en t a t ives of three Union Minis t r ies and four U N agencies o r o f f i c e s . The pa r t i c ipan t s reached the conclusion t h a t a j o i n t committee, or j o i n t committees, should be es tabl ished which would evaluate NGO projec ts and would recommend appropriate ones f o r inclusion in the government's regular programme f o r United Nations ass is tance ( U N D P , FAO, e t c . ) . Follow-up ac t ions are now i n preparation.

The author of t h i s s tudy, who par t ic ipa ted in the Consultations as well as i n the meetings of sub-commi t t e e s , gained the d i s t i n c t impression t h a t a communication gap e x i s t s between NGOs and competent government o f f i ce s . While several NGOs . complained about lack of government cooperation, the representa t ives of the Mini - s t r i e s could r igh t ly point a t the ex i s t i ng machinery f o r government-NGO coopera- t i on , which however did not seem t o be s u f f i c i e n t l y known in NGO c i r c l e s .

Thus, the s igni f icance of the NGO Consultations i n the present context would seem t o be the r ea l i za t ion t h a t c loser contact between NGOs and government i s indispen- s ab le .

111. THE SURVEY

Purpose

What do NGOs think about t h e i r own a b i l i t i e s and c a p a b i l i t i e s ?

I f NGOs a re t o form pa r t of a general dr ive t o c r ea t e i n the Third World the con- d i t i ons prescribed by the NIEO Programme of Action, i t wi l l have t o be es tabl ished t o what ex t en t and in which d i rec t ion they could, i n t h e i r own opinion, expand t h e i r NIEO-oriented a c t i v i t i e s . India presents excel lent conditions f o r a p i l o t p ro j ec t of t h i s kind: i t i s the second most populated country of the Third World, i t s widely d i f f e r ing socio-economi c conditions r e f l e c t sirni l a r conditions preva- l e n t in many individual countries o r regions of the world, and i t has hundreds ( i f not thousands) of NGOs - from highly e f f i c i e n t research i n s t i t u t e s t o welfare organizations with valuable grassroot experience.

Pol l ing

A ques t ionnai re containing 22 questions and sub-questions was d i s t r i bu ted t o some 1400 NGOs in t he major S t a t e s and Union Te r r i t o r i e s (of which India has a combined t o t a l of 31 ) . A l e s s e labora te questionnaire was d i s t r i bu ted t o over 150 govern- ment o f f i ce s , government-owned i n s t i t u t e s , governmental counci 1s , corporations and s imi l a r bodies. Since the main purpose of the survey was t o e s t ab l i sh the ro l e NGOs ( i n India) can IN THEIR OWN OPINION play i n NIEO-oriented p ro j ec t s , the purpose of the ques t ionnai re s en t t o government sources was merely t o supplement the findings and to a sce r t a in the opinion of t he au tho r i t i e s on the present per- formance of NGOs as well as on i t s usefulness.?/

2.1 Of the 1,400 questionnaires supplied t o NGOs, 68% were returned; of the 160 - s e n t t o government sources, 75% were returned.

Most r ec ip i en t s among NGOs were research i n s t i t u t e s , including some univers i ty departments, professional associa t ions and voluntary organizations. On the government s i d e , while a few Secre tar ies t o a Ministry received and returned the ques t ionnai re , most o ther questionnaires were returned by research i n s t i t u t i o n s . The polled organizations were drawn from the following broad ca tegor ies :

in tegra ted rura l development; small s ca l e i ndus t r i e s ; technology and indus t r i a l i za t ion ; management; labour/employment; environment protec t ion; soc i a l welfare; pub1 i c hea l th ; dairy farming/animal husbandry; family plan- ning; d i s a s t e r preventi on/preparedness/rel i e f .

To obtain the bes t possible r e su l t s and a p ic ture which would r e f l e c t t he s i t u a - t ion as co r r ec t ly as poss ib le , a l l pa r t i c ipan t s in the survey were assured anonymi ty .

A. NGO survey

Pas t and present cooperation

i ) with in ternat ional NGOs o r U N system: Approximately 33% of the NGOs indicated t h a t they were a f f i l i a t e d to an in ternat ional NGO. Accordingly, almost the same number of NGOs has i n t h e pas t been involved in the execution of one o r more development projec ts sponsored by a U N agency o r , more f requent ly , by in terna- t ional NGOs or development agencies of foreign governments ( e .g . , Overseas Development I n s t i t u t e , OXFAM, Commonwealth Engineers ' Counci 1 , Asian Productivity Organization, In ternat ional Marketing Development I n s t i t u t e , r e l i g ious and govern- mental development agencies i n the U K , the FRG, Holland, Denmark, e t c . ) . These projec ts - mainly research work ( s t u d i e s , surveys, e t c . ) - were ca r r i ed out in t he f i e l d of in tegra ted rura l development, followed by industry and technology, small s c a l e i ndus t r i e s , management, socia l welfare , family planning, public heal th , animal husbandry and labour-management re1 a t ions .

Most of t he NGOs s t a t e d t h a t they were q u i t e s a t i s f i e d with the support , coopera- t i on and guidance they receive from t h e i r in ternat ional a f f i l i a t e s . However, only 15% had ever been asked t o advise NGOs in o ther countries and thus l e t them benef i t from t h e i r own experience o r exper t i se .

While only 22% of these NGOs a re " regular ly" consulted by t h e i r in ternat ional a f f i l i a t e d o r parent bodies, 38% a r e consulted "occasionally" and 40% "never".

67% of t he NGOs have indica ted t h a t they are not a f f i l i a t e d t o an in ternat ional NGO. Thus, only very few of them ever received funds from abroad f o r one of t h e i r projec ts i n India. As we l l , very few ( 1 ) have received guidance o r o ther a s s i s - tance from in ternat ional NGOs, o r ( 2 ) have been asked f o r advice by in ternat ional NGOs ( in t eg ra t ed rural development, technol ogy , management development, soci a1 welfare , public hea l th ) , o r ( 3 ) have been asked t o advise NGOs i n o ther Third World countr ies (management development, soc i a l we1 f a r e , technol ogy, ru ra l deve- lopment, public hea l th ) .

i i ) with government (Centra l , S t a t e ) : In s p i t e of the common complaint of most NGOs about lack o f oppor tuni t ies t o be involved in o f f i c i a l development p ro j ec t s , i n t h i s survey only 14% of t he NGOs indica ted t h a t they were "never" consulted by the a u t h o r i t i e s . 13% are consulted " r a re ly" , 40% "occasionally", 26% "frequently"

and 7% " r e g u l a r l y " . (However, i t was l e f t t o t h e NGOs t o determine what they considered " r a r e l y " , " o c c a s i o n a l l y " o r " f r e q u e n t l y " ) . The m a j o r i t y o f NGOs ( those consu l ted " o c c a s i o n a l l y " ) a r e a c t i v e i n t h e f i e l d s o f technology, r u r a l development, management development and s o c i a l we l fa re . S i m i l a r l y , 32% o f t h e NGOs " f r e q u e n t l y " p a r t i c i p a t e i n government development p r o j e c t s , 50% " r a r e l y " and 18% "never" . However, f o u r - f i f t h s o f those NGOs seem t o p a r t i c i p a t e on a v o l u n t r bas is w h i l e p a r t i c i p a t i o n o f t h e remain ing NGOs i s on a commission I/ basis.-

Except f o r NGOs w i t h e s t a b l i s h e d c o n s u l t a t i o n procedures ( t r a d e unions, chambers o f commerce, p r o f e s s i o n a l a s s o c i a t i o n s ) o n l y a few NGOs ( i n a g r i c u l t u r e , i n t e g r a - t e d r u r a l development and envi ronment p r o t e c t i o n ) i n d i c a t e d t h a t they a r e b e i n g consu l ted r e g u l a r l y b e f o r e a p o l i c y d e c i s i o n i s taken. 55% r e p l i e d " o c c a s i o n a l l y " and 38% "never" .

Serv ices thus rendered by NGOs seem t o c o n s i s t , t o a g r e a t e x t e n t , o f research work ( s t u d i e s , su rveys) i n t h e f i e l d s o f sma l l s c a l e i n d u s t r i e s , i n d u s t r i a l development and management development. P r o j e c t s a r e executed a l s o i n the f i e l d s o f i n t e g r a t e d r u r a l development and envi ronment p r o t e c t i o n . - NGOs and NIEO-oriented a c t i v i t i e s

The b a s i c purpose o f t h i s survey was t o e s t a b l i s h t o what e x t e n t and i n which d i r e c t i o n NGOs ( i n I n d i a ) can, i n t h e i r own op in ion , expand t h e i r NIEO-oriented a c t i v i t i e s . A n e g l i g i b l e number o f ve ry s p e c i a l i z e d o r g a n i z a t i o n s saw no scope f o r a s i g n i f i c a n t expansion o f t h e i r a c t i v i t i e s . A11 o t h e r s expressed t h e i r con- v i c t i o n t h a t t h e y s h o u l d expand, though few a r e those who f e l t they cou ld do i t w i t h o u t governmental o r i n t e r n a t i o n a l ass is tance (see f u r t h e r below).

As t h i s i s an a t tempt t o convey t h e r e s u l t s o f the survey i n n a r r a t i v e prose r a t h e r than i n c h a r t s and s t a t i s t i c s (which would r e q u i r e more space, among o t h e r t h i n g s ) t h e au thor has t o c o n f i n e h i m s e l f t o t h e more conspicuous r e s u l t s o f t h e su rvey . F i e l d s o f expansion

On an average, NGOs f rom a l l c a t e g o r i e s f e l t t h e i r a c t i v i t i e s shou ld and cou ld be expanded i n t h e f o l l o w i n g f i e l d s :

Vocat ions t r a i n i n g ; i n f o r m a t i o n o f general p u b l i c ; envi ronment p r o t e c t i o n ( a f f o r e s t a t i o n , l a n d rec lamat ion , measures a g a i n s t wa te r p o l l u t i o n and s o i 1 e ros ion , e t c . ) ; t ransfer /exchange o f technology w i t h i n I n d i a n S ta tes as we1 1 as w i t h o t h e r c o u n t r i e s ; management development; t r a i n i n g / e d u c a t i o n (genera l ) ; research and development o f ind igenous techno1 ogy ; i n f o r m a t i o n campai gn aimed a t pol icy-makers; promot ion o f secondary i n d u s t r i e s ( loans , investment , tech- n i c a l ass is tance , v o c a t i o n a l t r a i n i n g , management t r a i n i n g ; a d u l t educat ion.

P r i o r i t i e s

I n i d e n t i ' f y i n g p r i o r i t i e s among NIEO-connected development a c t i v i t i e s , t h e NGOs, i n t h e i r r e p l i e s , produced t h e f o l l o w i n g p r i o r i t y p a t t e r n :

3/ I n a d d i t i o n , a sma l l number o f NGOs f e l t they c o u l d n o t p a r t i c i p a t e i n t h e - survey as they, though NGOs, a re e n t i r e l y f i n a n c e f rom government sources.

Vocat ional t r a i n i n g ; research and development o f ind igenous technology; management developmet; exchange l t rans fe r o f technology; research; e x p l o i t a t i o n and marke t ing o f n a t u r a l resources; more t e c h n i c a l and f i n a n - c i a l ass is tance ; t r a i n i n g l e d u c a t i o n (general ) ; promot ion o f r u r a l i n d u s t r i e s ; l a n d rec lamat ion and usage o f unexp lo i t e d land ; p rocess ing o f raw m a t e r i a l s through new i n d u s t r i a l c a p a c i t i e s ; general i n f o r m a t i o n campaign on NIEO; i r r i g a t i o n .

The f o l l o w i n g s u b j e c t mat te rs r e c e i v e d s u r p r i s i n g l y low p r i o r i t y :

Development/teaching o f new methods i n a g r i c u l t u r e and i n d u s t r y ; management o f human resources; d i s a s t e r prevention/pre~aredness/training (a l though a cons iderab le number o f NGOs i s i n v o l v e d i n d i s a s t e r r e l i e f o p e r a t i o n s ) ; n u t r i t i o n programme p lann ing ; p reven t ion o f growing u r b a n i z a t i o n ; informa- t i o n o f po l i cy -makers .

I t would seem t o be a r e s u l t - a ve ry s i g n i f i c a n t and thought-provoking, though - o f t h e p o l i t i c a l developments i n I n d i a d u r i n g t h e p a s t two years t h a t f a m i l y p lan- n i n g emerges v i r t u a l l y as a non-subject .

I n d i v i d u a l p r i o r i t i e s

Most r e p l i e s were r e c e i v e d f rom o r g a n i z a t i o n s and research i n s t i t u t e s a c t i v e i n r u r a l development, promot ion o f sma l l s c a l e i n d u s t r i e s , technology and i n d u s t r i a - l i z a t i o n , and management. Given below a r e p re fe rences f o r expansion o f a c t i v i t i e s o f NGOs a c t i v e i n those f o u r ca tegor ies as w e l l as a c t i v i t i e s t o which, i n t h e o p i n i o n o f t h e NGOs, p r i o r i t y shou ld be g iven :

- Voca t iona l t r a i n i n g - I n f r a s t r u c t u r e / r u r a l development -

p l a n n i n g - Teach ing ldeve lop ing o f ind igenous

technology - Environment p r o t e c t i o n (measures t o

a r r e s t d e s e r t i f i c a t i o n , s a l i n a t i o n , w a t e r p o l l u t i o n , s o i l e ros ion , e t c . )

P r i o r i t i e s

Vocat ional t r a i n i n g Land rec lamat ion and usage o f unexpl o i t e d 1 and I r r i g a t i o n ; ind igenous technol ogy ; environment p r o t e c t i o n ; r u r a l i n d u s t r i e s ; exchange o f techno l gy ; f i n a n c i a l ass is tance

- Voca t iona l t r a i n i n g - Research ; indigenous techno1 ogy ; - Development and teach ing o f i n d i - management development; e x p l o i t a -

genous techno1 ogy t i o n and marke t ing o f n a t u r a l - Exchange o f technology resources; p rocess ing o f raw - S e t t i n g up o f neri i n d u s t r i a l c a p a c i t i e s m a t e r i a l s

(secondary i n d u s t r i e s ) - Voca t iona l t r a i n i n g ; promot ion of - Research r u r a l i n d u s t r i e s ; exchange o f - Promot ion o f r u r a l i n d u s t r i e s techno1 ogy - Management development - I n f o r m a t i o n campaign on NIEO

I n d u s t r i a1 i z a t i o n and technol ogy: .............................. Expansion

- Exchange/ t ransfer o f technology - Research - Teaching/development o f ind igenous

technol ogy - Voca t iona l t r a i n i n g - Management development - E x p l o i t a t i o n and marke t ing o f n a t u r a l

resources - I n f o r m a t i o n o f pol icy-makers

Commercialmanagement

- Voca t iona l t r a i n i n g - Management development - I n f o r m a t i o n o f pol icy-makers - Management o f human resources - Promotion o f NIEO-oriented a c t i v i t i e s

among l o c a l i n d u s t r i e s

P r i o r i t i e s

- Teaching and development o f i n d i - genous techno l ogy

- Exchange/ t ransfer o f technology - Vocat ional t r a i n i n g - Research - Management development

- Promotion ( loans , inves tment ) o f secondary i n d u s t r i e s and new i ndus tri a1 c a p a c i t i e s ~

- Management development - P u b l i c h e a l t h educa t ion - Tra in ing /educa t ion (genera l ) ;

v o c a t i o n a l t r a i n i n g ; general i n - f o r m a t i o n campaign on NIEO; more t e c h n i c a l ass is tance ; e x p l o i t a t i o n and marke t ing o f n a t u r a l resources.

Not l e s s than f o u r o f the e i g h t l i s t s g iven above a r e topped by t h e s u b j e c t V o c a t i o n a l T r a i n i n g " . The importance a t tached t o t h i s s u b j e c t by most NGOs no doub t c a r r i e d a message. The urgency o f the m a t t e r was u n d e r l i n e d by t h e f i g u r e s re leased i n March 1979 by t h e I n d i a n D i rec to ra te -Genera l o f Employment and T r a i n - i n g accord ing t o which more than 250,000 s c i e n t i s t s , medical doc to rs and t e c h n i c a l personnel i n I n d i a a r e unemployed. "The Statesman" o f 14 March 1979 commented: "While I n d i a ' s s c i e n t i f i c and t e c h n i c a l manpower ranks t h i r d i n t h e w o r l d i n terms o f s i z e , t h e r e i s s t i l l a gap between j o b s and t h e manpower a v a i l a b l e " . Many o f those who c o u l d f i n d a j o b i f they had a p p r o p r i a t e v o c a t i o n a l t r a i n i n g , i n s t e a d choose t o s tudy sc ience o r technology i n t h e hope o f h i g h e r s a l a r i e s , a h i g h e r s o c i a l s t a t u s and, no doubt, w i t h a v iew t o f i n d i n g a j o b abroad (and thus c o n t r i - b u t i n g t o t h e b r a i n d r a i n ) . The h i g h p r i o r i t y g iven by NGOs t o voca t iona l t r a i n - i n g p o i n t s o u t t h e r e a l needs.

Can NGOs do i t ?

Only 15% o f t h e NGOs i n d i c a t e d t h a t they c o u l d execute a d d i t i o n a l p r o j e c t s w i t h o u t o u t s i d e h e l p . A l l o t h e r s f e l t they would need ass is tance , and 82% s p e c i f i e d i t as f i n a n c i a l ass is tance i n a d d i t i o n , i n most cases, t o t r a i n i n g and guidance. Only t h e remain ing 3% ( a c t i v e i n f i e l d s such as i n t e g r a t e d r u r a l development, sma l l s c a l e i n d u s t r i e s , envi ronment p r o t e c t i o n , management and techno logy) would n o t r e q u i r e f i n a n c i a l h e l p b u t guidance and t r a i n i n g . The NGOs have expressed no s t r o n g f e e l i n g s as t o whether such a i d o r t r a i n i n g should be p r o v i d e d by govern- ment, i nter-governmental o r g a n i z a t i o n s o r i n t e r n a t i o n a l NGOs except t h a t severa l NGOs have excluded government a i d . I n general , t h e f i r s t p re fe rence goes t o i n t e r n a t i o n a l NGOs (38%) , f o l l o w e d by in te r -governmenta l o r g a n i z a t i o n s ( 3 4 % ) , and government (28";).

There i s a wide range o f areas i n t o which NGOs, i n t h e i r own o p i n i o n , c o u l d expand t h e i r a c t i v i t i e s .

B . Government survey

The q u e s t i o n n a i r e f o r governmental and o t h e r publ i c i n s t i t u t i o n s ( m i n i s t r i e s , research o r g a n i z a t i o n s , a d m i n i s t r a t i v e agencies and c o u n c i l s , e t c . ) was l e s s e l a - b o r a t e than t h e one prepared f o r NGOs. The l i m i t e d purpose o f t h i s survey was t o e s t a b l i s h c u r r e n t involvement o f NGOs i n o f f i c i a l development programmes. Reci- p i e n t s o f t h e ques t ionna i res were assured t h a t t h e i r r e p l i e s would n o t be presen- t e d as r e p r e s e n t i n g o f f i c i a l government p o l i c y .

E x i s t i n g machinery f o r coopera t i on

A number o f i n s t i t u t i o n s e x i s t i n I n d i a whose r a i s o n d ' e t r e i s t o fund NGO p r o j e c t s (e.g. , Cen t ra l Soc ia l Wel fare Board, PAOE - People 's A c t i o n f o r Develop- ment). I t i s w e l l i n l i n e w i t h t h i s p o l i c y t h a t t h e NGO Consu l ta t ions h e l d i n New D e l h i ( r e f . Chapter I 1 "NGO Conference" above) were at tended by r e p r e s e n t a t i - ves o f t h r e e Union M i n i s t r i e s .

F i e l d s o f coopera t ion

Maximum coopera t ion , r e g u l a r o r occas iona l , e x i s t s w i t h non-governmental research i n s t i t u t i o n s and w e l f a r e agencies i n t h e f i e l d s o f housing (u rban development), co t tage i n d u s t r i e s , a g r i c u l t u r a l eng ineer ing , wa te r supply, s o c i a l w e l f a r e and fami l y p l a n n i n g (70% o f t h e r e t u r n e d q u e s t i o n n a i r e s ) . I n most cases, NGOs co- opera te as consu l tan ts o r on a v o l u n t a r y bas is w h i l e o n l y a few p r o j e c t s (e.g., a g r i c u l t u r a l eng ineer ing ) a r e c a r r i e d o u t on commission b a s i s . However, many NGOs r e c e i v e f i n a n c i a l subs id ies , e i t h e r r e g u l a r l y o r f o r s p e c i f i c p r o j e c t s i n t h e i r own programmes.

It i s wor th n o t i n g t h a t 40% o f t h e governmental i n s t i t u t i o n s which r e p l i e d i n d i c a - t e d t h a t they have funds f o r coopera t ion w i t h NGOs.

Minimum coopera t ion w i t h NGOs emerges i n areas such as envi ronment p r o t e c t i o n , publ i c a d m i n i s t r a t i o n and r u r a l development. However, a more d e t a i l e d s tudy r e - veals t h a t coopera t ion does e x i s t i n t h e i n d i v i d u a l components o f what i s cons i - dered as "environment p r o t e c t i o n " o r " r u r a l development", such as a f f o r e s t a t i o n o r c o t t a g e i n d u s t r i e s . One p a r t i c u l a r comment f rom a governmental source i 1 l u s t r a t e s q u i t e c l e a r l y t h e importance o f NGOs, and thus of a t h i r d system: "NGOs a r e i m p o r t a n t l i n k s between p u b l i c agencies and t h e masses. H i t h e r t o mass p a r t i c i p a - t i o n i n r u r a l development programmes o f t h e Cent ra l Government has been inadequate and t h e r e f o r e /the programmes have been/ o f l i m i t e d success". Th is comment shows t h a t t h e implementat ion o f a n a t i o n a l development programme would g r e a t l y b e n e f i t f rom we l l -o rgan ized coopera t ion between governmental and non-governmental i n s t i t u - t i o n s i n which t h e l a t t e r shou ld have a permanent and w e l l - d e f i n e d r o l e .

R a t i n g

26% o f t h e r e p l y i n g governmental agencies have never cooperated w i t h NGOs b u t though t t h a t such coopera t ion would be u s e f u l . Only ve ry few o f t h e r e t u r n e d ques t ionna i res con ta ined c r i t i c a l remarks, such as "NGOs a r e inexper ienced and a re n o t i n v o l v i n g t h e r i g h t t ype o f e x p e r t i s e " , o r "Some a r e n o t r e a l l y a c t i v e "

R a t i n g t h e coopera t ion w i t h NGOs, 57% found i t "use fu l ", 37% "necessary" and 6% "mediocre" o r " d i s a p p o i n t i n g " .

I V . REMARKS AND SUGGESTIONS

A l l p a r t i c i p a n t s i n t h e survey were i n v i t e d t o add remarks and/or suggest ions. Only ve ry few excerp ts can be g iven i n t h e l i m i t e d space a v a i l a b l e :

NGOs

Remarks: The ' t h i r d system' w i l l be more economical, e f f i c i e n t and u s e f u l . .. IFDA must be c o n g r a t u l a t e d on t h i s b o l d and r e a l i s t i c o u t l o o k . .. u s e f u l f o r resource m o b i l i z a t i o n , p i o n e e r i n g and c o l l e c t i n g o f u s e f u l da ta . . . T h i r d system w i l l be u s e f u l p rov ided governments a re n o t i n v o l v e d i n t h e execu t ion o f t h e p r o j e c t s . . . The survey w i l l no doubt be u s e f u l i f a p o s i t i v e course o f a c t i o n can be determined .. . C u l t u r a l e l e v a t i o n i s a must f o r economic, s o c i a l and p o l i - t i c a l s t a b i l i t y eschewing v i o l e n c e and war .. . The grave problems f a c i n g humanity today cannot be s o l v e d by governmental a c t i o n a lone. The need f o r a ' t h i r d system' i s obvious .. . W i l l be o n l y t o o happy t o cooperate . . . Human values must be s t r e s s e d ... Hope t h e survey w i l l h e l p draw a t t e n t i o n t o t h e need f o r f i n a n - c i a l ass is tance t o NGOs p a r t i c u l a r l y i n remote r u r a l areas ... Our c u l t u r e and p r e s e n t s o c i a l system need c a r e f u l s tudy t o f i n d o u t t h e most s u i t a b l e ways i n which they can cope w i t h t h e modern s o c i a l f o r c e s .

Suggest ions : ' T h i r d system' shou ld concen t ra te on p ro fess iona l research and development a c t i v i t i e s i n neg lec ted areas and should a v o i d d u p l i c a t i o n . . . P r i v a t e research shou ld r e c e i v e more f i n a n c i a1 ass is tance . . . I n d u s t r i a l e n t e r - p r i s e s shou ld "adopt" v i l l a g e s and smal l s c a l e i n d u s t r i e s . . . IFDA shou ld es tab- l i s h r e g i o n a l bodies f o r t h e f o r m u l a t i o n o f p o l i c i e s and s t r a t e g i e s . . . More exchange o f views i s needed among NGOs as w e l l as between NGOs and t h e UN system . I n t e r n a t i o n a l o r g a n i z a t i o n s shou ld have c l o s e r coopera t ion w i t h NGOs ... IFDA may cons ider t o s e t up a " t a l e n t bank" c o n t a i n i n g b i o - d a t a o f e x p e r t s f rom d i f f e r e n t d i s c i p l i n e s as may be a v a i l a b l e around the w o r l d . . . There shou ld be a Roundtable i n I n d i a on t h e r o l e o f t h e ' t h i r d system' , w i t h a l l o c a t i o n o f i n d i v i - dual r e s p o n s i b i l i t i e s t o t h e va r ious NGOs.

Governmental i n s t i t u t i o n s

Remarks: NGOs a r e u s e f u l because a b u r e a u c r a t i c approach i s n o t conducive t o development programmes ... Use fu l f o r b e t t e r c o o r d i n a t i o n o f development a c t i v i t i e s . NGOs ( i n a g r o - i n d u s t r y ) i n general possess advanced technology and a s t r o n g marke t ing set-up ... NGOs can c o n f i r m p r a c t i c a l u t i l i t y o f t h e f i n d i n g s o f research i n s t i t u t e s ... NGOs can convey new know-how a t g r a s s r o o t l e v e l i n a l a n - guage which peop le can understand . . . T h e i r enthusiasm s u s t a i n s th roughou t a p r o j e c t ... (Th is i n s t i t u t e ) c a l l s NGOs f o r r e g u l a r meetings t o eva lua te progress and t o fo rmu la te f u t u r e programmes . . . NGOs a r e i n t h e b e s t p o s i t i o n t o p r e v e n t r e h a b i l i t a t e d s lum d w e l l e r s f rom f a l l i n g back i n o l d h a b i t s .. . Can make va luab le suggest ions and p repare u s e f u l s t u d i e s ... Have been success fu l i n g e t t i n g i n f l u e n - t i a l people t o g e t h e r , thus c r e a t i n g an awareness.. . Suggest ions: NGOs shou ld conduct more research among t h e masses t o understand t h e i r problems, which w i l l h e l p Government t o d r a f t s u i t a b l e programmes ... NGOs shou ld do more t o educate people r e envi ronment p r o t e c t i o n , wa te r p o l l u t i o n , r e - f o r e s t a t i o n , hygiene and economical use o f f i rewood. NGOs a r e i n a b e t t e r

p o s i t i o n than Government b u t shou ld i n c l u d e more l o c a l peop le ... NGOs should p r o v i d e feedback between development agency and b e n e f i c i a r i e s . . . M i g h t do more i n deve lop ing indigenous technology ... There shou ld be more exchange o f techno- l o g y between Government and NGOs ... NGOs p layed a u s e f u l r o l e i n c o n v i n c i n g v i l l a g e r s o f t h e use fu lness o f b io-gas and new techniques. They shou ld now co- opera te w i t h ( research i n s t i t u t e s ) t o h e l p make a v a i l a b l e t h e r i g h t t ype o f h i g h qua1 i t y t o o l s t o improve p roduc t ion , p r o d u c t i v i t y . . . NGOs c o u l d promote i n o t h e r p a r t s o f I n d i a as w e l l as i n o t h e r T h i r d World c o u n t r i e s t h e f i n d i n g s o f c e r t a i n i n s t i t u t e s (e.g. , rec lamat ion o f s a l t - a f f e c t e d s o i l ) and c o u l d p r o v i d e r e l e v a n t t r a i n i n g ... V. FINAL REMARKS

The q u e s t i o n "Can they do i t ? " can be answered i n t h e a f f i r m a t i v e even w i t h o u t a computer ized a n a l y s i s o f t h i s survey. Whi le t h e most i m p o r t a n t conc lus ion can be drawn f rom t h e areas i n which NGOs i n I n d i a i n t h e i r own e s t i m a t i o n suggest t o expand t h e i r a c t i v i t i e s , and f rom t h e i r p r i o r i t y l i s t s , t h e survey a l s o shows t h a t e x i s t i n g coopera t ion n o t w i t h s t a n d i n g between NGOs on t h e one hand and Government and/or i n t e r n a t i o n a l agencies on t h e o t h e r , most NGOs a re n o t y e t p a r t o f a "system" and thus shou ld fo rm a l o g i c a l and i m p o r t a n t p a r t o f the t h i r d system.

NGOs themselves have suggested t h a t , i n o r d e r t o make t h i s survey meaningfu l i n t h e framework o f a g l o b a l system, f o l l o w - u p a c t i o n shou ld be i n i t i a t e d on a w ider b a s i s . They cou ld i n c l u d e :

. s i m i l a r surveys i n o t h e r c o u n t r i e s o r reg ions ;

. d i s c u s s i o n o f t h e r e s u l t s a t r e g i o n a l conferences and p o s s i b l y on a w o r l d - wide bas is so as t o determine the p roper p l a c e o f NGOs o f T h i r d World c o u n t r i e s i n t h e t h i r d system.

NGOs on t h e whole a re w e l l aware o f n e c e s s i t y and requi rements o f t h e NIEO. They a re w i l l i n g , eager and, t o a l a r g e e x t e n t , i n a p o s i t i o n t o cooperate. Most government i n s t i t u t i o n s are, i n p r i n c i p l e as w e l l as i n p r a c t i c e , i n f a v o u r of NGO a c t i v i t i e s ( f r o m research i n s t i t u t e s t o v o l u n t a r y agencies) , a1 though a com- muni c a t i o n gap seems t o p reven t f u l l NGO p a r t i c i p a t i o n i n n a t i o n a l development p r o j e c t s i n general as w e l l as i n NIEO-or iented a c t i v i t i e s .

Any development s t r a t e g y must t a k e i n t o accoun t the human resources. Hence, NGOs, p a r t i c u l a r l y i n I n d i a , emerge as one o f t h e most i m p o r t a n t and power fu l components o f such a s t r a t e g y .

12 ANNEX I

NIEO AND THE THIRD WORLD

The Programme o f A c t i o n on t h e Es tab l i shment o f a New I n t e r n a t i o n a l Economic Order (UN General Assembly Reso lu t ion 3202/S-VI) ass igns a d e f i n i t e r o l e a l s o t o "develo- p i n g c o u n t r i e s " f o r the i n t r o d u c t i o n o f c e r t a i n changes as a p r e - c o n d i t i o n f o r t h e es tab l i shment o f a NIEO:

a ) P a r t 1. 1 ( b ) : ( A l l e f f o r t s should be made . . . ) t o take measures f o r the e x p l o i - t a t i o n . . . and marke t ing . . . o f n a t u r a l resources, p a r t i c u l a r l y o f deve lop ing c o u n t r i e s t o se rve t h e i r n a t i o n a l i n t e r e s t s , t o promote c o l l e c t i v e s e l f - r e l i a n c e among them . . . b ) l ( g ) : To take measures t o promote t h e p rocess ing o f raw m a t e r i a l s i n t h e produ- c e r devel op ing c o u n t r i e s .

c ) 2 ( b ) : ... some deve lop ing c o u n t r i e s have v a s t p o t e n t i a l i t i e s o f u n e x p l o i t e d land which, i f rec la imed and p u t i n t o p r a c t i c a l use, would c o n t r i b u t e cons iderab ly t o t h e s o l u t i o n o f food c r i s e s

d ) 2 ( c ) : . .. measures w i t h a v iew t o a r r e s t i n g d e s e r t i f i c a t i o n , s a l i n a t i o n and dam- age by l o c u s t s o r any o t h e r s i m i l a r phenomenon i n v o l v i n g severa l deve lop ing coun t r ies

e ) 2 ( d ) To r e f r a i n f rom damaging o r d e t e r i o r a t i n g n a t u r a l resources and food r e - sources, e s p e c i a l l y those d e r i v e d f rom t h e sea, by p r e v e n t i n g p o l l u t i o n and t a k i n g a p p r o p r i a t e s teps t o p r o t e c t and r e c o n s t i t u t e those resources

f ) P a r t I I I ( c ) . . . s e t t i n g up o f new i n d u s t r i a l c a p a c i t i e s i n c l u d i n g raw m a t e r i a l s and commodi ty- t ransforming f a c i l i t i e s as a m a t t e r o f p r i o r i t y i n t h e developing c o u n t r i e s t h a t produce those raw m a t e r i a l s and commodities

g) ( d ) : (expansion o f t e c h n i c a l ass is tance programmes) i n c l u d i n g v o c a t i o n a l t r a i n - i n g and management development o f n a t i o n a l personnel o f t h e deve lop ing c o u n t r i e s i n the l i g h t o f t h e i r s p e c i a l development requi rements

h ) P a r t I V ( a ) : To fo rmu la te an i n t e r n a t i o n a l code o f conduct f o r t h e t r a n s f e r o f technology, corresponding t o needs and c o n d i t i o n s p r e v a l e n t i n deve lop ing c o u n t r i e s

i ) ( c ) : . . research and development programmes . . . i n the c r e a t i o n o f s u i t a b l e ind igenous techno1 ogy.

ANNEX I 1

AREAS FOR THE INVOLVEMENT OF NON-GOVERNMENTAL INSTITUTIONS AND ORGANIZATIONS

The f o l l o w i n g l i s t o f p o s s i b i l i t i e s o f NGO invo lvement i n t h e p repara t ions f o r a new development s t r a t e g y and i n t h e implementat ion o f t h e NIEO i s by no means exhaus t i ve :

. I n f o r m a t i o n campaign ( th rough e s t a b l i s h e d as w e l l as new channels) on NIEO and r e l a t e d n a t i o n a l development aspects.

. Promotion o f loans f o r , and o f i nves tment i n , secondary i n d u s t r i e s ( l a b o u r - o r i e n t e d

. Campaign and t r a i n i n g on a11 l e v e l s t o improve p u b l i c understanding and p r a c t i c e o f hygiene.

. Vocat ional t r a i n i n g and management development, p a r t i c u l a r l y f o r new secondary i n d u s t r i e s .

. Promotion (on a11 l e v e l s , s t a r t i n g f rom y o u t h and v i l l a g e s ) o r measures a g a i n s t p o l l u t i o n , s o i 1 e ros ion , d e s e r t i f i c a t i o n , e t c .

. Promotion (on a11 l e v e l s ) o f r e f o r e s t a t i o n .

. Promotion o f i n f r a s t r u c t u r e and o t h e r measures t o p reven t i n c r e a s i n g u r b a n i z a t i o n .

IFDA DOSS

MARKINGS

LATIN AMER

BROADEN I NG CA :

THE SOCIAL IMPACT OF GROWTH MISSION: POSSIBLE!

by Enr ique ~ g l e s i a s y

I n h i s repor t t o t he 18th sess ion o f t he United Nations Economic Commission for Lat in America (ECLA), i t s Executive Secretary analysed the 70s - 'Culmination o f a cyc le , i n t e r rup t ion and advance towards t he unknwn' and discussed three 'great challenges for t he coming decade': 'Broadening t he soc ia l impact o f growth', 'Accelerating t he economic growth r a t e ' and 'Strengthening the autonomy o f growth'. We reproduce here the f u l l t e x t dealing u i t h the f i r s t challenge as u e l l as t ha t o f t he ' f i n a l r e f l e c t i o n s ' . The f u l l t e x t o f t he report (81 pp) could be obtained, i n English and Spanish, from ECLA, Casi-lla 179 D, Santiago, Chile.

I t i s a w i d e l y accepted f a c t t h a t t h e dynamic growth o f t h e r e g i o n i n t h e post-war p e r i o d bypassed i n r e l a t i v e o r abso lu te terms, a s i z e a b l e p a r t o f t h e p o p u l a t i o n .

I do n o t i n t e n d t o dwe l l on t h i s t o p i c , which I have d e a l t w i t h a t l e n g t h i n speeches a t e a r l i e r sessions. On t h i s occasion I shou ld merely l i k e t o r e c a l l t h a t a r e c e n t CEPAL study, cover ing s i x c o u n t r i e s which account f o r 70% o f t h e p o p u l a t i o n and an equal p r o p o r t i o n o f t h e gross p roduc t o f L a t i n America, found t h a t i n those c o u n t r i e s p e r c a p i t a income r o s e by 26% i n t h e p e r i o d 1960-1967 a f i g u r e which i s c e r t a i n l y s a t i s f a c t o r y . Only 10% o f t h i s growth, however, b e n e f i t e d those who were below a c e r t a i n p o v e r t y l i n e i n 1960, w h i l e 60% o f i t was absorbed by t h e r i c h e s t 20% o f t h e popu la t ion . ~ h u s , i n a b s o l u t e terms t h e 40% o f t h e who were poor i n 1960 inc reased t h e i r p e r c a p i t a income by o n l y 20 d o l l a r s between then and 1970. Fur thermore, accord ing t o t h e l a t e s t a v a i l a b l e data, i n 1970 about 40% o f t h e L a t i n American p o p u l a t i o n s u f f e r e d f rom extreme p o v e r t y and a lmost h a l f o f these c o u l d be cons idered i n d i g e n t . A1 though t h e inc idence o f p o v e r t y v a r i e d enormously f rom c o u n t r y t o country , as may be seen f rom t a b l e 1, t h i s percentage means t h a t i n 1970 t h e poor o f t h e r e g i o n numbered a lmost 110 m i l l i o n , o f whom 54 m i l l i o n were i n d i g e n t .

Wi th a11 t h e l i m i t a t i o n s i n v o l v e d i n making a p r o j e c t i o n , and merely i n o r d e r t o be a b l e t o v i s u a l i z e t h e urgency o f t h e changes which must be made i n t h e f o r m s o f development which have so f a r c h a r a c t e r i z e d L a t i n America. i t mav be n o t e d t h a t i f r e c e n t t r e n d s cont inue, by t h e y e a r 2000 t h e poor o f ou r r e g i o n w i 11 have inc reased i n a b s o l u t e f i g u r e s , a l though they w i l l rep resen t a smal l p r o p o r t i o n o f t h e t o t a l p o p u l a t i o n . And what i s more ser ious , t h e income gap between r i c h and poor w i l l have inc reased a l a r m i n g l y , a f a c t which runs coun te r t o b a s i c moral p r i n c i p l e s , has

1/ Enr ique I g l e s i a s i s t h e Execu t i ve Secre ta ry o f t h e U n i t e d Nat ions Economic - Commission f o r L a t i n America. He i s a l s o a member o f t h e Execu t i ve Committee o f IFDA.

no j u s t i f i c a t i o n i n economics and c o n s t i t u t e s an e v i d e n t t h r e a t t o s o c i a l co- ex i s tence .

Tab le 1 ESTIMATES OF THE INCIDENCE OF EXTREME POVERTY I N SOME LATIN AMERICAN COUNTRIES

AROUND 1 9 7 0 y

Percentage o f households Percentage o f households

Country below t h e p o v e r t y l i n e below t h e ind igence l i n e

Urban Rura l N a t i o n a l Urbar Rura l N a t i o n a l --

Argent ina 5 19 8 1 1 1 B r a z i 1 3 5 7 3 49 15 42 25 C h i l e 12 2 5 17 3 11 6 Colombia 3 8 54 4 5 14 2 3 18 Costa Rica 15 30 24 5 7 6 Honduras 40 7 5 6 5 15 57 4 5 Mexico 20 49 3 4 6 18 12 Peru 2 8 6 8 50 8 3 9 25 Uruguay 10 4 Venezuela 20 36 2 5 6 19 10 L a t i n A m e r i c a 2 6 - 6 2 - 40 -- i n - 34 1 q -

The o t h e r f a c t o f c a p i t a l impor tance t o which I shou ld l i k e t o r e f e r i s t h a t un- q u e s t i o n a b l y most o f t h e managing cadres - i n t h e government, p r o f e s s i o n a l and i n t e l l e c t u a l c i r c l e s , p o l i t i c a l p a r t i e s and b a s i c i n s t i t u t i o n s such as churches, t h e armed f o r c e s , t r a d e unions and business a s s o c i a t i o n s - agree on the u r g e n t need %tack le t h i s s p e c i f i c problem w i t h t h e utmost p r i o r i t y . Th is i m p l i e s t h a t t h e r e a r e few people who s t i l l b e l i e v e t h a t a dynamic growth process w i l l s u f f i c e f o r t h e problem t o s o l v e i t s e l f .

N a t u r a l l y enough, t h e r e a r e d i f f e r e n c e s , sometimes profound, i n t h e diagnoses and remedies suggested o r adopted, b u t t h i s o v e r a l l consensus i s c e r t a i n l y o f fun - damental impor tance, f o r t h e c o l l e c t i v e awakening t o t h e problem i s n o t o n l y a new development b u t a l s o t h e p r ime and most e s s e n t i a l c o n d i t i o n f o r beg inn ing t o s o l v e i t .

The n a t u r e o f t h e cha l lenge f a c i n g us i s c e r t a i n l y v e r y complex s i n c e w i t h o u t l o s i n g s i g h t o f t h e growth o b j e c t i v e , which I w i l l d i scuss l a t e r , we must f i n d a means o f a c h i e v i n g s o c i a l j u s t i c e ; w i t h o u t renouncing t h e modern iza t ion o f s o c i e t y we must g i v e p r e f e r e n t i a l t rea tmen t t o t h e groups which have n o t y e t b e n e f i t e d f rom techno- l o g i c a l p rog ress ; and w i t h o u t n e g l e c t i n g t h e e x c e l l e n c e necessary i n t h e t r a i n i n g o f c e r t a i n groups i n o u r communit ies, we must braoden and improve t h e system o f o p p o r t u n i t i e s and rewards i n such a way as t o i n v o l v e a c t i v e l y l a r g e groups i n L a t i n American s o c i e t y who a r e s t i l l exc luded f rom t h e d e c i s i o n s which a f f e c t t h e i r l i v i n g c o n d i t i o n s .

I/ The t e n countr ie; L ~ n i d c r e d account f o r 84% o f t h e p o p u l a t i o n o f L a t i n America.

1 The s i z e of the socia l challenges

One f ac to r c lose ly linked with the s i t ua t ions of c r i t i c a l poverty encountered in the regions i s t h a t of demographic t rends . The projections made by CELADE in- d i ca t e t h a t although there wi l l be a s l i g h t drop in the population growth r a t e from 1980 onwards, ir. the remainder of t h i s century the Latin American population ri i l l increase by 75%. A t the same time, migration from the countryside t o the towns wi l l continue, especia l ly in the countries where the percentage of t he po- pulation l iv ing in rura l areas remains very high, and where the incidence of c r i - t i c a l poverty i s g rea t e s t . All t h i s will increase the pressures on services and physical space in the urban zones.

Furthermore, due t o changes in the age s t ruc tu re of the population, the proportion of the t o t a l population represented by persons of ac t ive age wi l l increase , and t h i s , combined with higher r a t e s of par t ic ipa t ion by women, wi l l generate an increase in the labour force estimated a t an annual average of nearly 3%, with t he t o t a l r i s ing from 170 mi l l ion in 1975 t o 345 mi l l ion a t the end of the century.

A number of s tudies of the region show t h a t i f the current s t y l e of development continues unchanged, the growth r a t e needed t o maintain current unemployment l eve l s would be well above the r a t e s achieved by most of the countries of the region in recent decades - r a t e s which were ac tua l ly the highest ever recorded.

The rapid growth of the labour force ce r t a in ly represents an important challenge t o the capacity f o r job crea t ion of the countries of the region, and t h i s challenge increases s t i l l f u r the r i f i t i s reca l led t h a t i t wi l l a l s o be necessary t o increase the productivity and incomes of those who a r e current ly vegetating in backward a c t i v i t i e s o r a r e suffer ing from d i f f e r e n t forms of underemployment. In t h i s l a t t e r respect , the estimates of the In ternat ional Labour Office show t h a t underemployment a f f ec t s nearly 30% of the labour force. In s h o r t , the problem i s not only one of reducing unemployment b u t a l so of absorbing underemployment so as ensure op- por tuni t ies f o r productive and well-remunerated work f o r the e n t i r e labour force .

As wi l l be understood, however, there a r e o ther socia l challenges which must urgent- ly be d e a l t with, education f o r example. Frequent reference i s made t o the major advances achieved here , but the shortcomings which s t i l l e x i s t a r e overlooked.

I t i s a f a c t t h a t considerable progress has been made in increasing the access of the population t o the educational system. Between 1960 and 1975, the coverage of primary education doubled in absolute terms, secondary enrolment increase f ive-fo ld and enrolment in higher education increased more than s ix- fo ld . I t i s a l so t r u e , however, t h a t despi te the subs tant ia l e f f o r t made, i l l i t e r a c y in a considerable number of countr ies of t he region was s t i l l very high in 1970, while t he average educational level of the labour force was s t i l l low and the proportion of workers without schooling was very high. This l a s t f a c t i s pa r t i cu l a r ly important s ince , as may be observed from recent CEPAL s tud ie s , the g rea t majority of heads of house- holds in s i t ua t ions of poverty have th ree years of schooling o r l e s s . I t may a l so be noted t h a t the incidence of poverty drops d r a s t i c a l l y when the head of the household has completed f u l l primary education.

The foregoing i s a r e f l ec t ion of the f a c t t h a t the proportion of students who com- p l e t e the primary cycle in Latin America i s s t i l l very low, although there a r e subs tant ia l d i f ferences between countr ies . A study of 18 countries shows t h a t

around 1975 l e s s than 50% o f t h e s tuden ts who had e n r o l l e d i n p r imary educa t ion 6 years p r e v i o u s l y had completed t h e cyc le , w h i l e more than h a l f t h e dropouts were i n t h e f i r s t t h r e e years o f s c h o o l i n g and thus r a n a g r e a t r i s k o f becoming i l l i t e r a t e s f rom l a c k o f p r a c t i c e .

From another s t a n d p o i n t , t h e tendency towards a predominant urban l a b o u r f o r c e and t h e i n c r e a s i n g numbers o f persons g radua t ing f rom t h e educa t iona l system mean t h a t new job-seekers come up a g a i n s t a l a b o u r market which o f f e r s fewer o p p o r t u n i t i e s than a r e r e q u i r e d a t n e a r l y a l l l e v e l s , and t h i s c rea tes i n s e c u r i t y and f rus t ra t ion ,among bo th young peop le w i t h l i t t l e educa t ion and those who have succeeded i n complet ing t h e i r secondary educat ion. Indeed, i n some c o u n t r i e s t h i s s i t u a t i o n i s emerging even among graduates f rom h i g h e r educat ion, who a r e n o t succeeding i n f i n d i n g j o b s i n keeping w i t h t h e i r t r a i n i n g and a s p i r a t i o n s .

2. M iss ion : p o s s i b l e !

A l though these and o t h e r r e l a t e d f a c t s g i v e some i d e a o f t h e v a s t s i z e o f t h e tasks t o be faced, I am convinced t h a t these a r e n o t insuperab le .

The economic growth o f t h e r e g i o n i n r e c e n t decades, t h e noteworthy progress i n t e c h n i c a l knowledge, and t h e i n c o r p o r a t i o n o f i n c r e a s i n g l y l a r g e numbers o f p r o f e s - s i o n a l s t r a i n e d i n t h e management o f p u b l i c a f f a i r s c o n s t i t u t e a group o f f a c t o r s which, u n i t e d w i t h a f i r m p o l i t i c a l w i l l , may w e l l remedy t h e s o c i a l inadequacies t h a t cause us so much concern. My opt imism i s thus n o t p u r e l y r h e t o r i c a l .

Recent s t u d i e s on t h e problem show t h a t t h e a d d i t i o n a l income which would have been r e q u i r e d around 1970 t o b r i n g t h e income of t h e poor groups up t o t h e es t imated mi- nimum f o r c o v e r i n g t h e b a s i c o v e r a l l consumption budget was e q u i v a l e n t t o approx i - mate ly 6% o f t h e t o t a l d i sposab le income o f t h e r i c h e s t 10% o f t h e popu la t ion . From another s tandpo in t , i t would have represen ted about 22% o f t o t a l p u b l i c ex- p e n d i t u r e f o r t h e r e g i o n as a whole.

These values, o f course, h i d e wide v a r i a t i o n s between c o u n t r i e s where t h e d e f i c i t expressed as a p r o p o r t i o n o f t o t a l personal income ranged f rom 0.6% t o 20%, w h i l e as a p r o p o r t i o n o f p u b l i c expend i tu re i t v a r i e d between 3% and over 100%.

These r e l a t i o n s h i p s between t h e ser iousness of t h e s i t u a t i o n s and t h e amount o f na- t i o n a l income o r t o t a l d i sposab le household income c l e a r l y shows t h a t when a p o i n t has been reached, as has happened i n L a t i n America, where average p e r c a p i t a income i s f o u r t imes t h e f i g u r e corresponding t o t h e p o v e r t y l i n e , the e r a d i c a t i o n o f p o v e r t y appears as an economical ly f e a s i b l e task! / .

I f t h e problem i s examined f rom t h e s t a n d p o i n t o f some b a s i c d e f i c i e n c i e s , much t h e same conc lus ions a r e reached.

(a ) I t i s es t imated t h a t between o n e - t h i r d and t w o - f i f t h s of t h e p o p u l a t i o n o f L a t i n America s u f f e r s f rom n u t r i t i o n a l d e f i c i e n c y s i n c e t h e i r c a l o r i e consumption i s below t h e minimum requi rements recommended b y s p e c i a l i z e d i n t e r n a t i o n a l agencies. Taking as a r e f e r e n c e t h e c o s t o f t h e basket o f f o o d s t u f f s used t o determine t h e p o v e r t y

I/ The p e r c a p i t a gross domestic product , expressed i n d o l l a r s a t t h a t y e a r ' s p r i c e s , - was 886 d o l l a r s i n 1970 and t h e es t imated p o v e r t y l i n e a t t h a t t ime was a l i t t l e over 200 d o l l a r s .

l i n e , i t i s estimated t h a t Latin America's nut r i t ional def ic iencies represent between 1 and 2.5% of the regional gross product.

( b ) As regards the educational d e f i c i t , i t i s estimated t h a t the addi t ional cos t of providing s i x years of primary schooling f o r the fu tu re cohorts would amount to some- where between 0.3 and 0.5% of the r eg ion ' s gross domestic product, while the addit ional expenditure required t o finance an adequate health system would absorb 1 t o 1.5% of t he regional gross product.

( c ) F inal ly , with respect t o housing, i t i s assumed t h a t about 1% of the gross na- t ional product would have t o be t ransfer red t o the poorest fami l ies so t h a t t h e i r expenditure on housing could be equivalent t o t h a t incurred by famil ies whose in- come i s equal t o t he poverty l i n e .

In sho r t , t o solve those d e f i c i t s would involve reassigning income amounting t o between 3 .3 and 5.5% of t he regional t o t a l , which does not seem too ambitious an objec t ive .

Obviously, however, i t i s not a question here o r merely t ransfer r ing income from one des t ina t ion t o another, o r from the r i ch t o the poor. After the f inancia l t r ans fe r - and the d i f f i c u l t y which by i t s very nature t h i s involves - real and perhaps bigger and more complex obs tac les a r i s e . The operation r ea l ly requires the transformation of some s t ruc tu ra l p ro f i l e s and, i n the f i na l ana lys i s , of the mode of operation of t he economic, socia l and po l i t i ca l system. Only thus can the ex i s t i ng d i s t r i bu t ion pat terns be permanently a l t e r ed , in a context of adequate productive dynamism which wi l l guarantee higher real incomes on a s t a b l e basis f o r the poorer groups, without jeopardizing economic growth t o the point of f r u s t r a t i n g the income d i s t r i bu t ion attempt.

I t i s not surpr is ing , therefore , t h a t the consideration of these problems should have opened an ac t ive discussion on the nature of t he po l i c i e s and expedients ca- pable of appreciably improving the d i s t r i bu t ion of the f r u i t s of technical progress and eradica t ing t h e c r i t i c a l poverty scenarios.

3. Stages of a r ed i s t r i bu t ion s t r a t egy

In t h i s discussion - which i s ra ised today in every kind of in ternat ional forum - t he re emerge three l i nes of ac t ion and thinking: one deals bas ica l ly with the problem of c r i t i c a l poverty; a second enlarges on t h i s concern and extends i t t o the f i e l d fo bas ic needs; and a t h i r d i n t eg ra t e s those objec t ives and subordinates them t o the formulation of a global s t r a t egy f o r change, capable of modifying the or ig inal bases of t he s i t u a t i o n s of deficiency and inequal i ty .

I t i s not possible t o en t e r i n to a de t a i l ed examination of these pos i t ions , a l l of which a r e perfec t ly respectable. Let us merely say t h a t from our own point of view we see no absolute contradic t ions between them, but only s tages of a process which should in t eg ra t e them according t o t he mater ia l , social and p o l i t i c a l conditions prevail ing in each country.

We have no doubt t h a t only a s t r a t egy which a l t e r s the s t ruc tu ra l bases and mode of operation of the global system can provide the whole answer t o t he complex problem we have before us. This does not mean, however, t h a t we cannot propose and pursue

more r e s t r i c t e d and s p e c i f i c aims such as those l i n k e d w i t h t h e campaigns a g a i n s t p o v e r t y o r f o r t h e s a t i s f a c t i o n o f b a s i c needs, which w i l l h e l p t h e c o l l e c t i v e conscience t o simmer and mature, and p r o v i d e conc re te exper ience t h a t w i l l f a - c i l i t a t e t h e a t t a i n m e n t o f more amb i t i ous goa ls .

L e t us examine some f e a t u r e s o f these t h r e e courses o f a c t i o n .

( a ) The c r i t i c a l p o v e r t y approach

I t w i l l t a k e t i m e f o r t h e permanent ly f a v o u r a b l e e f f e c t s o f t h e r a d i c a l changes which must be i n t r o d u c e d i n t h e d i s t r i b u t i o n p a t t e r n s t o be f e l t by t h e poores t p o p u l a t i o n groups. There fo re , i t i s necessary t o des ign s p e c i f i c p o l i c i e s w i t h a view t o s a t i s f y i n g t h e most e lementary needs o f poor f a m i l i e s as e f f i c i e n t l y as p o s s i b l e - and w i t h i n t h e s h o r t e s t p o s s i b l e t ime .

N u t r i t i o n , educa t ion , h e a l t h , housing and s a n i t a r y c o n d i t i o n s among o t h e r s , are areas o f i n t e r v e n t i o n i n which exper ience i n L a t i n America has shown a g r e a t e r o r l e s s e r degree o f success. N o t w i t h s t a n d i n g t h e e f f o r t s made, these can be s a i d t o have been i n s u f f i c i e n t , b o t h because o f t h e volume o f resources ass igned t o those aims and because o f t h e r e l a t i v e l y l i m i t e d p r o p o r t i o n t h a t has reached t h e ex- t r e m e l y poor s e c t o r s . I t i s t h e r e f o r e necessary t o r e v i s e t h e c r i t e r i a f o r a s s i g n i n g p u b l i c resources, e s p e c i a l l y i n t h e s o c i a l s e c t o r s , and a l s o t o make a genuine e f f o r t t o i n c r e a s e t h e t a x a t i o n o f those groups which have reaped most b e n e f i t from economic growth, w i t h t h e o b j e c t o f p r o v i d i n g t h e resources r e q u i r e d t o f a c e t h e extreme p o v e r t y emergency.

Fur thermore, t h e i n s t i t u t i o n a l i t y i n f o r c e and t h e b u r e a u c r a t i c a d m i n i s t r a t i v e p rac - t i c e s a r e n o t t h e most s u i t a b l e t o t a k e ca re o f t h e poor p o p u l a t i o n . T h i s i s be- cause t h e d e c i s i o n s adopted i n t h e s o c i a l s e c t o r s a r e g e n e r a l l y unco-o rd ina ted and t h e " t a r g e t groups" a r e n o t c l e a r l y d e f i n e d . As regards t h e b u r e a u c r a t i c ad- m i n i s t r a t i v e aspects , compl iance w i t h t h e r u l e s and r e g u l a t i o n s c a l l s f o r educa t iona l and o t h e r c o n d i t i o n s which a r e n o t e a s i l y f u l f i l l e d b y t h e u l t i m a t e l y meant t o be favoured.

These a s s i s t a n c e - o r i e n t e d p o l i c i e s , even i f t h e i r coverage imp lementa t ion improves, a r e n o t o f course t h e s o l u t i o n t o m e r e l y h e l p t o p a l l i a t e i t s most degrading f e a t u r e s . T h i s o b j e c t i v e o f overcoming extreme p o v e r t y as t h e f i r s t s tage t e g y aimed a t a c h i e v i n g g r e a t e r s o c i a l e q u a l i t y .

p o p u l a t i o n which i s

i nc reases and t h e i r t h e p o v e r t y problem b u t i s what u n d e r l i e s t h e o f a development s t r a -

( b ) The b a s i c needs approach

A second stage, which d i f f e r s f rom t h e f i r s t because o f i t s b roader o b j e c t i v e s , t h e means t h a t have t o be u t i l i z e d and i t s dynamic concept , c o n s i s t s o f t h e s a t i s f a c t i o n o f b a s i c human needs. These do n o t r e f e r o n l y t o t h e d e f i c i e n c i e s found i n extreme p o v e r t y , measured i n a b s o l u t e terms, b u t t o those which, i n c l u d i n g t h a t minimum s tage , p e r m i t s e l f - s u s t a i n e d development th rough t h e c r e a t i o n o f p r o d u c t i v e employ- ment and l e v e l s o f income which p e r m i t t h e persons concerned t o be i n t e g r a t e d i n t h e economic, s o c i a l and p o l i t i c a l l i f e o f t h e i r n a t i o n a l s o c i e t i e s . I n o t h e r words, bes ides s a t i s f y i n g c e r t a i n minimum m a t e r i a l needs t h e aim i s t o cover needs which, n o t be ing o f a m a t e r i a l k i n d , c o n s t i t u t e e s s e n t i a l elements o f a s o c i e t y i n v o l v i n g g r e a t e r p a r t i c i p a t i o n , e q u a l i t y and s o l i d a r i t y .

A f i r s t problem which a r i s e s i n t h e s a t i s f a c t i o n o f b a s i c needs i s t h e c h o i c e o f a c r i t e r i o n f o r d e f i n i n g them. Obviously , a u n i v e r s a l l y v a l i d p r e s c r i p t i o n cannot be g i ven , b u t t h e c r i t e r i a shou ld be determined accord ing t o t h e c o n d i t i o n s p re - v a i l i n g i n each coun t ry , and even w i t h i n t h e n a t i o n a l f r o n t i e r s some of those needs w i l l va ry f rom one r e g i o n t o another . Th is i n f o r m a t i o n depends on t h e s o v e r e i g n t y o f each coun t ry , a f a c t which must be made p e r f e c t l y c l e a r .

Once a c r i t e r i o n f o r i d e n t i f y i n g t h e b a s i c needs t o be s a t i s f i e d and t h e groups t o be favoured has been adopted by t h e p o l i t i c a l a u t h o r i t i e s , t h e s t r a t e g y shou ld s p e c i f y t h e d i r e c t and i n d i r e c t means f o r a t t a i n i n g t h e o b j e c t i v e s . I n t h i s s tage i t i s e s p e c i a l l y i m p o r t a n t t o make s u r e t h a t t h e p o l i c i e s des igned t o i n c r e a s e t h e income of t h e poor a r e n o t coun te rac ted by a r i s e i n t h e p r i c e s o f t h e goods and s e r v i c e s they consume, o r t h a t t h e p r o d u c t i v i t y increments a r e n o t t r a n s l a t e d i n t o h i g h e r monetary income. Th is means t h a t t h e inc reased purchas ing power i n t h e hands o f t h e poor w i l l r e a l l y be conver ted i n t o g r e a t e r permanent w e l l - b e i n g based on changes i n t h e magni tude and s t r u c t u r e o f supply .

I n view o f t h e l i m i t e d resources o f t h e L a t i n American c o u n t r i e s , t h e s a t i s f a c t i o n o f b a s i c needs shou ld be compat ib le w i t h o t h e r o b j e c t i v e s , such as t h e need f o r sus- t a i n e d growth, t h e d i v e r s i f i c a t i o n o f t h e p r o d u c t i o n system, l e s s e x t e r n a l depen- dence i n terms o f b o t h p roduc ts and markets , t h e maintenance o f c e r t a i n b a s i c e- q u i l i b r i a and t h e l e g i t i m a t e consumer a s p i r a t i o n s o f t h e middle- income groups.

( c ) The i n t e g r a t e d change approach

The f o r e g o i n g s tages n e c e s s a r i l y l e a d t o a t h i r d s tage , which c o n s i s t s o f i n c o r - p o r a t i n g t h e p r e v i o u s two stages i n a g l o b a l development s t r a t e g y aimed a t e- l i m i n a t i n g c o n t r a d i c t i o n s between o b j e c t i v e s and making t h e p o l i c i e s c o n s i s t e n t w i t h one another .

The cho ice o f t h e two p r i m a r y o b j e c t i v e s o f e r a d i c a t i n g p o v e r t y and s a t i s f y i n g b a s i c needs, i n t h e i r dynamic and s t r u c t u r a l change approach, shou ld be i n t e g r a t e d i n a s t r a t e g y which w i l l s imu l taneous ly achieve t h e c a p i t a l f o r m a t i o n r e q u i r e d t o s u s t a i n t h e expansion o f p r o d u c t i v e c a p a c i t y . Exper ience shows t h a t t h e spontaneous a c t i o n o f market f o r c e s tends t o reproduce t h e i n e q u a l i t i e s o f t h e e x i s t i n g d i s - t r i b u t i o n p a t t e r n and, o f course, f a i l s t o ass ign t h e resources t o t h e p r o d u c t i o n o f goods and s e r v i c e s consumed by t h e p o o r e s t groups because o f t h e sma l l percentage o f income they manage t o o b t a i n . Moreover, i n many cases, p r i v a t e inves tmen t does n o t respond as q u i c k l y as i t shou ld t o p u r e l y economic i n c e n t i v e s .

These c o n s i d e r a t i o n s j u s t i f y a more a c t i v e p a r t i c i p a t i o n by t h e S t a t e , b o t h i n f u l f i l l i n g t h e r e d i s t r i b u t i o n o b j e c t i v e s and i n a c h i e v i n g t h e l e v e l o f accumu la t ion and s t r u c t u r e o f i nves tmen t s u i t e d t o t h e growth o b j e c t i v e s and t h e r e o r i e n t a t i o n of t h e p r o d u c t i o n s t r u c t u r e . T h i s i n no way i m p l i e s i g n o r i n g t h e i m p o r t a n t r o l e o f t h e market; i t mere ly p o i n t s t o t h e need t o recogn ize t h a t t h e S t a t e f u l f i l l s an i r r e p l a c e a b l e f u n c t i o n i n a s t r a t e g y which ass igns p r i o r i t y t o t h e e r a d i c a t i o n o f p o v e r t y and t h e s a t i s f a c t i o n o f b a s i c needs.

I t i s an e m p i r i c a l l y proven f a c t t h a t t h e g r e a t s o c i a l i n e q u a l i t i e s a r e l i n k e d w i t h t h e s t r u c t u r a l h e t e r o g e n e i t y o f t h e p r o d u c t i v e systems. Tha t i s t o say, t h e co- e x i s t e n c e o f b road i n f o r m a l o r t r a d i t i o n a l s e c t o r s where t e c h n i c a l p rog ress has n o t y e t a r r i v e d , w i t h modern a c t i v i t i e s i n which advanced techno log ies a r e used. There- fo re , if i t i s d e s i r e d t o c o m p a t i b i l i z e growth w i t h a r e d u c t i o n o f t h e e x i s t i n g

i n e q u a l i t i e s , t h e expansion o f t h e modern sec to rs should be a b l e t o s u s t a i n a dynamic demand f o r employment, and a p r o p o r t i o n o f i t s su rp luses should h e l p t o r a i s e p r o d u c t i v i t y i n t h e backward and i n f o r m a l a c t i v i t i e s .

L e t us r e c a p i t u l a t e : t h e g r e a t e s t cha l lenge f a c i n g t h e governments o f t h e r e g i o n i s t h e need t o ass ign p r e f e r e n t i a l and immediate a t t e n t i o n t o t h e most s e r i o u s l y a f f l i c t e d groups; t o promote t h e c r e a t i o n o f employment i n o r d e r t o make f u l l use o f t h e l a b o u r f o r c e a t s u f f i c i e n t l e v e l s o f remunerat ion t o s a t i s f y i t s b a s i c needs; and t o i n c o r p o r a t e t h e marginal sec to rs i n t h e p r o d u c t i o n process, m a i n l y through t h e proper genera t ion and c h a n n e l l i n g o f investment resources. ... FINAL REFLECTIONS

I n c l o s i n g , and as a f i n a l message f rom t h e s e c r e t a r i a t on t h e occasion o f t h e e i g h t e e n t h sess ion o f t h e Commission, I should l i k e b r i e f l y t o r e c a p i t u l a t e t h e more s a l i e n t p o i n t s o f t h i s r e p o r t and draw some conc lus ions based on what I have j u s t sa id .

I n a l l areas o f l i f e i n t h e reg ion , whether economic, s o c i a l o r p o l i t i c a l , t i m e has n o t passed i n v a i n f o r anybody. The r e g i o n ' s b e s t asse t i s perhaps i t s fund o f exper ience - b o t h success fu l and unsuccessfu l - which has been t h e f r u i t o f l ong years o f t r a v e l l i n g t h e d i f f i c u l t paths o f development.

Taking s t o c k o f t h a t exper ience over t h e l a s t t h r e e decades leads t o t h r e e ma jo r conc lus ions :

The f i r s t i s t h a t d u r i n g t h i s p e r i o d t h e L a t i n American economies have undergone a dynamic process o f growth and t rans fo rmat ion . Al though v a r y i n g i n i n t e n s i t y i n t h e d i f f e r e n t economies o f t h e reg ion , t h i s process has b rough t about substan- t i a l changes i n t h e g r e a t m a j o r i t y o f them. As a r e s u l t , t h e economies o f L a t i n America a r e today very d i f f e r e n t b o t h i n s i z e and i n o t h e r s t r u c t u r a l f e a t u r e s f rom t h e economies o f t h i r t y years ago, when CEPAL began i t s a c t i v i t i e s .

The second i s t h a t i n t h e m a j o r i t y o f cases t h e b e n e f i t s o f t h i s s i g n i f i c a n t economic growth have been d i s t r i b u t e d most unevenly among t h e d i f f e r e n t groups o f s o c i e t y and consequent ly extreme p o v e r t y s t i l l a f f e c t s v a s t s e c t o r s o f t h e L a t i n American po- p u l a t i o n .

The t h i r d i s t h a t d u r i n g t h i s p e r i o d t h e forms o f L a t i n Amer ica 's i n s e r t i o n i n t h e w o r l d s e t t i n g have changed g r e a t l y , which, as I p o i n t e d o u t e a r l i e r , has b rough t some f a v o u r a b l e consequences, and o t h e r s l e s s favourab le .

Furthermore, i t i s i m p o r t a n t t h a t i t shou ld be c l e a r l y understood t h a t t h e subs- t a n t i a l changes i n t h e p o l i t i c a l and economic scenar ios and i n t h e work ings o f t h e i n t e r n a t i o n a l economy,which s e t i n a t t h e beg inn ing o f t h e c u r r e n t decade and which reached a peak i n mid-decade w i t h t h e most profound and p r o t r a c t e d c r i s i s t h e indus- t r i a l i z e d market economies have known s i n c e t h e Great Depression, have r a d i c a l l y a l t e r e d t h e e x t e r n a l f a c t o r s c o n d i t i o n i n g our development. The w o r l d economic s e t t i n g o f t h e c l o s i n g years o f t h i s decade i s indeed q u a l i t a t i v e l y and subs- t a n t i a l l y d i f f e r e n t f rom what e x i s t e d a t t h e beg inn ing o f t h e decade; and t h e r e f o r e t o t h e f o r e g o i n g conc lus ions we must add some f u r t h e r p o i n t s which need t o be b e t t e r de f ined .

The f i r s t o f these i s t h a t t h e t h r e e processes mentioned e a r l i e r have taken on new f e a t u r e s , a lmost a l l o f which a r e unfavourable. The widespread i n s t a b i l i t y of t h e i n t e r n a t i o n a l economy and t h e s luggishness o f t h e c e n t r a l economies have been r e f l e c t e d s i n c e 1975 i n lower growth r a t e s i n most o f t h e L a t i n American c o u n t r i e s and a cons iderab le r i s e i n t h e i r f o r e i g n debt . The s imul taneous r i s e i n e x t e r n a l i n f l a t i o n a r y pressures has a l s o meant t h a t a t t h e same t i m e t h e problems o f income d i s t r i b u t i o n have worsened i n many o f o u r c o u n t r i e s .

A second fundamental p o i n t which should be borne in mind i s t h e t r a n s f o r m a t i o n s which have occur red i n r e c e n t years and which c o n t i n u e t o occur i n t h e i n d u s t r i a - l i z e d market economies. The c a p a c i t y o f t h e c e n t r a l c o u n t r i e s t o respond t o t h e s u b s t a n t i a l changes i n t h e i n t e r n a t i o n a l monetary system, t h e s t r u c t u r e o f w o r l d t r a d e and t h e supply o f c e r t a i n s t r a t e g i c raw m a t e r i a l s has proved t o be much more f l e x i b l e and e f f e c t i v e than t h a t o f t h e p e r i p h e r a l c o u n t r i e s , and has taken t h e fo rm o f t h e adop t ion o f measures and t h e c r e a t i o n o f machinery o f a de fens ive na tu re . As a r e s u l t o f these responses - whose h i g h degree o f c o - o r d i n a t i o n has c o n t r a s t e d w i t h t h e d ispersed e f f o r t s o f t h e c o u n t r i e s o f t h e T h i r d World - t h e i n f l u e n c e o f t h e c e n t r a l c o u n t r i e s i n t h e bodies r e s p o n s i b l e f o r e s t a b l i s h i n g t h e m o d a l i t i e s and machinery which w i l l p r o v i d e t h e framework f o r t h e work ings o f t h e new i n t e r n a t i o n a l economic o r d e r has remained v e r y g r e a t .

A t h i r d ma jo r even t o f t h e p resen t decade, and one o f p a r t i c u l a r importance t o t h e c o u n t r i e s o f t h e per iphery , was t h e r a i s i n g o f t h e p r i c e o f petro leum. T h i s changed r a d i c a l l y , and p robab ly d e f i n i t i v e l y , one o f t h e e s s e n t i a l elements on which i n t e r - n a t i o n a l t r a d e and t h e development o f t h e i n d u s t r i a l i z e d economies had been based s i n c e t h e war.. What i s no l e s s s i g n i f i c a n t f o r t h e c o u n t r i e s o f t h e T h i r d World i s t h a t t h i s was a c l e a r demonstrat ion o f t h e advantages which they c o u l d g a i n by t a k i n g j o i n t a c t i o n t o secure b e t t e r earn ings f o r t h e i r p r imary commodity expor ts .

Nevetheless, as a r e s u l t o f t h e r i s e i n t h e p r i c e o f pe t ro leum and o f o t h e r changes which occured i n t h e i n t e r n a t i o n a l economy as w e l l as t h e development o f t h e c o u n t r i e s themselves, t h e l a t t e r have tended t o d i f f e r i n c r e a s i n g l y i n t h e e x t e n t and forms o f t h e i r i n s e r t i o n i n t h e w o r l d economic system. The importance o f t h i s f a c t must n o t be neglected, s i n c e i t represen ts a p o s s i b l e d i f f i c u l t y f o r t h e renewal and s t r e n g t h e n i n g o f economic co -opera t ion w i t h i n L a t i n America a t a t i m e when t h e ad- verse c i rcumstances d e r i v i n g f rom t h e s low and unsteady growth o f t h e c e n t r a l economies make j o i n t a c t i o n by t h e c o u n t r i e s o f t h e r e g i o n more necessary than ever .

I t i s a g a i n s t t h i s background o f t h e economic and s o c i a l development t rends o f L a t i n America over t h e l o n g s t r e t c h o f growth which came t o an end i n t h e m idd le of t h e p resen t decade, and o f t h e many deep changes which have occured i n t h e w o r l d economic p i c t u r e i n r e c e n t years, t h a t I would ask you t o cons ider t h e f o l l o w i n g t h r e e major concerns.

1. How can t h e g r e a t m a j o r i t y o f t h e L a t i n American p o p u l a t i o n c a t c h up

The f i r s t problem i s t o improve t h e d i s t r i b u t i o n o f t h e b e n e f i t s o f economic growth. This , as I mentioned be fo re , i s a fundamental moral i m p e r a t i v e o f development p o l i c y . The con t inued e x i s t e n c e o f s i t u a t i o n s o f extreme p o v e r t y and even ind igence a f - f e c t i n g a l a r g e p r o p o r t i o n o f t h e L a t i n American p o p u l a t i o n c o n s t i t u t e s i n my o p i n i o n t h e c l e a r e s t and most unacceptable shor tcoming o f t h e s t y l e o f development which has p r e v a i l e d i n t h e r e g i o n . What i s e q u a l l y i m p o r t a n t i s t h a t t h e e r a d i c a t i o n o f extreme p o v e r t y i s i n most o f t h e c o u n t r i e s o f t h e r e g i o n today a f e a s i b l e o b j e c t i v e

from an economic s t a n d p o i n t . Again, as I p o i n t e d o u t e a r l i e r , t o ach ieve t h i s o b j e c t i v e s a t i s f a c t o r i l y would c a l l f o r t h e a p p l i c a t i o n o f sys temat i c and coheren t p o l i c i e s o f r e d i s t r i b u t i o n accompanied by a h igh , s teady economic growth r a t e , and thus t h e r e d u c t i o n o f s o c i a l i n e q u a l i t y would go hand i n hand w i t h a con- s i d e r a b l e expansion o f domest ic markets .

2. How t o b r i n g new ideas i n t o economic r e l a t i o n s w i t h i n L a t i n America?

T h i s expansion o f t h e domest ic market and t h e fo reseeab le d rop i n t h e growth r a t e s o f t h e economies o f t h e i n d u s t r i a l i z e d c o u n t r i e s h i g h l i g h t t h e need t o i n t r o d u c e new ideas i n t o a11 l e v e l s o f economic r e l a t i o n s w i t h i n L a t i n America. I n t h e p r e s e n t c i rcumstances, these have tended t o become de fens ive , i n t h e f a c e o f t h e un favourab le t r e n d s stemming f rom t h e i n t e r n a t i o n a l economy, and c o n s t i t u t e a p o t e n t i a l on wh ich f a s t e r , s t e a d i e r growth o f t h e L a t i n American economies c o u l d be based.

It i s i m p o r t a n t t o r e a l i z e t h a t t h i s f o s t e r i n g o f b i l a t e r a l , subreg iona l and r e g i o n a l i n t e r r e l a t i o n s i n L a t i n America shou ld be viewed as a complement o f , r a t h e r than a s u b s t i t u t e f o r , t h e growth o f n a t i o n a l markets .

Thus t h e second ma jo r concern which I ask you t o cons ide r , one w i t h which CEPAL has been c l o s e l y a s s o c i a t e d s i n c e i t s i n c e p t i o n , i s t h a t o f f i n d i n g t h e machinery and methods o f a t t a i n i n g t h i s o b j e c t i v e .

3. How t o t r a n s f o r m pass ive i n s e r t i o n i n t h e i n t e r n a t i o n a l economy i n t o dynamic i n t e r d e ~ e n d e n c e ?

I n a w o r l d o f i n c r e a s i n g economic in terdependence, i t would be u n r e a l i s t i c f o r a r e g i o n whose per formance has depended h e a v i l y upon t rends i n i n t e r n a t i o n a l t r a d e and f i n a n c e t o s e t i t s s i g h t s on au ta rchy . N e i t h e r t h e expansion o f domest ic markets n o r a g r e a t e r degree o f economic i n t e r r e l a t i o n i n L a t i n America shou ld be seen as means o f reduc ing t h e i r degree o f i n s e r t i o n i n t h e w o r l d economy. Q u i t e t h e o p p o s i t e The e x p o r t c a p a c i t y o f t h e c o u n t r i e s o f t h e r e g i o n shou ld i n c r e a s e and t h e v igo rous process o f growth and d i v e r s i f i c a t i o n o f e x p o r t s shou ld be pursued. A t t h e same t ime , t h e r i s i n g l e v e l o f income o f t h e L a t i n American p o p u l a t i o n w i l l s w e l l t h e volume o f impor ts .

The c h a l l e n g e l i e s p r e c i s e l y i n t h i n k i n g o u t how t h e c o u n t r i e s o f t h e r e g i o n can make maximum use o f t h e o p p o r t u n i t i e s o f f e r e d by t h e i r p o s i t i o n i n w o r l d economic f l o w s w h i l e m i n i m i z i n g t h e i r n e g a t i v e e f f e c t s ; how t o p l a y an a c t i v e r o l e i n t h e des ign o f t h e r u l e s o f t h e game govern ing t r a d e and f i n a n c i a l f l ows , i n s t e a d o f be ing r e l a t i v e l y pass ive p a r t i c i p a n t s ; and how t o r e c o n c i l e t h e economic p o l i c y requ i rements needed t o a t t a i n these o b j e c t i v e s w i t h those r e q u i r e d t o ach ieve t h e g rowth and r e d i s t r i b u t i o n t a r g e t s .

The d i a l o g u e on t h e New I n t e r n a t i o n a l Economic Order begun some y e a r s ago p o i n t s i n t h i s d i r e c t i o n , and we must c o n t i n u e t o emphasize t h e s e t o f t o p i c s i t comprises, and devote a l l o u r powers o f i m a g i n a t i o n and n e g o t i a t i o n t o deve lop ing i t .

I have ven tu red t o s i n g l e o u t o n l y these t h r e e fundamental concerns. N e i t h e r t h e i r number n o r t h e o r d e r i n which I have ment ioned them a r e t h e r e s u l t o f an i n t e l l e c t u a l whim. On t h e c o n t r a r y , t h e y r e p r e s e n t t h e s e c r e t a r i a t ' s c o n v i c t i o n t h a t t h e r e i s a deep i n t e r r e l a t i o n s h i p and in terdependence between them. An expansion o f n a t i o n a l

markets which i s n o t accompanied by community r e g i o n a l and subreg iona l a c t i o n and w i t h o u t a p roper i n s e r t i o n i n t h e w o r l d economy cou ld r e s u l t i n a s t a t e o f techno- l o g i c a l ly-backward semi-autarchy. And an e x t e r n a l i n s e r t i o n l a c k i n g these n a t i o n a l and r e g i o n a l dimensions would represen t an extremely v u l n e r a b l e and dependent s t y l e o f development.

F i n a l l y , I wish t o pause f o r a moment t o examine t h e i m p l i c a t i o n s f o r CEPAL o f t h e i d e n t i f i c a t i o n o f t h e t h r e e major concerns t o which I have r e f e r r e d . The f a c t t h a t I have l i m i t e d m y s e l f t o s t a t i n g them and have n o t at tempted t o suggest ways o f s o l v i n g them i s d e l i b e r a t e , s ince my main purpose i s t o e l i c i t g u i d e l i n e s f rom you f o r o u r f u t u r e a c t i v i t i e s .

N a t u r a l l y , t h e s e c r e t a r i a t has some ideas i n t h i s respec t , and these a r e con ta ined i n t h e documents which we have submi t ted f o r c o n s i d e r a t i o n a t t h e session. We a re , however, f a r f rom understanding a l l t h e consequences and i m p l i c a t i o n s o f t h e t o p i c s which I have ventured t o cover i n t h i s r e p o r t . S t i l l l e s s do we have a l l t h e ans- wers about how t h e r e g i o n as a whole and each coun t ry i n p a r t i c u l a r can f a c e up t o these chal lenges i n t h e new and ever-changing c o n d i t i o n s c h a r a c t e r i s t i c o f t h e p resen t w o r l d economic p i c t u r e .

T h i s i s , i n my o p i n i o n , one o f CEPAL's p r i n c i p a l tasks i n t h e immediate f u t u r e : t o re-examine o u r t h i n k i n g on L a t i n American economic development and adapt i t t o t h e c o n t e x t o f a rap id ly -chang ing w o r l d and o f a growing v a r i e t y o f o p t i o n s w i t h i n t h e r e g i o n i t s e l f . T h i s i s t h e cha l lenge which t h e s e c r e t a r i a t must t a c k l e i n t h e f u t u r e , and whose dimensions and i m p l i c a t i o n s we hope t o be a b l e t o beg in t o examine - a t l e a s t rough ly , a t f i r s t - when work ing on a New I n t e r n a t i o n a l Development S t r a t e g y f o r t h e reg ion .

We know what d isappointment many o f these exerc ises have caused i n t h e pas t . Bu t i t i s impor tan t t o renew o u r i n t e r e s t , by upda t ing t h e approaches t o t h e p r e p a r a t i o n o f a new s t r a t e g y .

The o p p o r t u n i t i e s opened up t o us by t h e d ia logue on t h e s t r a t e g y a r e wide-ranging. On t h e one hand, we a r e encouraged t o r e f l e c t on our own i n t e r n a l problems, an e x e r c i s e which o f course c o n s t i t u t e s a sovere ign t a s k f o r each coun t ry . Bu t t h e d i a l o g u e can s t i m u l a t e t h a t r e f l e c t i o n and e n r i c h i t w i t h t h e cumu la t i ve exper ie - nce o f each and every one o f ou r c o u n t r i e s .

On t h e o t h e r hand, t h e d i s c u s s i o n o f t h e s t r a t e g y can e x p l i c i t l y i n c l u d e a cons- t r u c t i v e debate on t h e p o s s i b i l i t i e s and 1 i m i t a t i o n s o f r e g i o n a l coopera t ion . Thus, i t can be conver ted i n t o suppor t f o r t h e p o l i t i c a l t a s k which must be c a r r i e d o u t i n o r d e r t h a t r e g i o n a l coopera t ion may be renewed and may t h u s accentuate i t s dynamic r o l e i n o u r development process.

L a s t l y , t h e d i s c u s s i o n o f t h e s t r a t e g y w i l l p r o v i d e a f u r t h e r o p p o r t u n i t y b o t h t o i d e n t i f y t h e problems o f t h e new i n t e r n a t i o n a l economic o r d e r w i t h i n t h e c o n t e x t o f a b roader p e r s p e c t i v e , and t o e s t a b l i s h s p e c i f i c goa ls f o r t h e i n t e r n a t i o n a l a c t i o n o f governments o f t h e r e g i o n .

Understood i n those terms, t h e i n t e r n a t i o n a l development s t r a t e g y shou ld n o t be, as i t was i n t h e pas t , an e x e r c i s e conceived o n l y a t t h e w o r l d l e v e l and f rom t h e c e n t r e o f t h e U n i t e d Nat ions system. T h i s exerc ise , which i s undoubtedly va luab le ,

shou ld be supplemented by a r e g i o n a l v iew which, t r a n s l a t i n g t h e g l o b a l goa ls i n t o r e g i o n a l o b j e c t i v e s , w i l l s t i m u l a t e d i a l o g u e and coopera t ion among us.

CEPAL has always been i n t i m a t e l y committed t o t h i s task . Today we w ish t o renew t h i s commitment, p l a c i n g ou rse lves a t t h e government 's d i sposa l i n t h i s e n t e r - p r i s e .

I t i s i n t h i s s p i r i t and conscious o f t h e p o s i t i v e c o n t r i b u t i o n which t h i s d i scus s i o n c o u l d have t h a t I v e n t u r e t o suggest t o you a l l t h a t t h e Commission shou ld p r o c l a i m as one o f i t s g r e a t t a s k s f o r t h e f u t u r e t h e p r e p a r a t i o n o f t h e S t r a t e g y f o r t h e T h i r d Development Decade f o r t h e reg ion .

third world is part of a large-scale project which aims to : -- provide alternative information to Third World countries - contribute t o increase the knowleilge on the realities and

experiences of Third World countries -- promote the conscientization of Third World peoples on

the causes of underdevelopment and the means to over- come it promote cooperation amon; progressive sectors in indus- trialized countries.

third world is the I-,nglish edition of cuadernos del tercer mundo, published by Third World Journalists, an independent, no-profit association based in Mexico City, i n t e q r t i ~ l by rnili- taut professional journalists.

cuadernos del tercer nnindo i; a monthly pub1ic;~:ion. with a circulation of 15,000 copies, ciistrinutecl t h r o u g l ~ u t Latin America. cadernos do tcrceiro mundo. our Portuguese edition, has a circulation of o \er 40,000 copies, distributed mainly in Africa.

third world is a magazine on the Third World, made by Third World jounalists and addressed mainly to theThird World.

THIRD WORLD JOURNALISTS San Lorenzo 153 - 406

Mexico 12. D.F.

INTERACTIONS

D. Paul Scha fe r

CULTURE HARDER THAN THE REST

It i s f a r f rom c o i n c i d e n t a l t h a t t h e r e c e n t r e a c t i o n t o t h e t r a d i t i o n a l o r d e r has been termed t h e " c o u n t e r - c u l t u r e " r a t h e r than t h e "counter-economy" even though t h e r e a c t i o n has focused t o d a t e l a r g e l y on deve lop ing new forms o f economic ac- t i v i t y - communes, community groups, t h e a r t s , c r a f t s , c o t t a g e i n d u s t r i e s and coopera t i ves - which a re t h e a n t i t h e s i s o f e v e r y t h i n g t h e t r a d i t i o n a l economic o r d e r has been designed t o crush. Fo r what i s a t s take here i s n o t h i n g l e s s than t h e dawning o f a new age - an age i n which myopic, economic va lues a r e r e p l a c e d by commonsense, c u l t u r a l va lues and t h e narrow p e r s p e c t i v e o f economic de te rm in ism i s superseded by t h e broader p e r s p e c t i v e o f c u l t u r a l humanism.

S ince t h i s i s unchar ted t e r r i t o r y a t p resen t , t h e r e must be no con fus ion about o u r terms o f re fe rence . I n p a r t i c u l a r , t h e r e must be no m i s t a k i n g o u r use of t h e t e r m c u l t u r e " . I n t h i s c o n t e x t , c u l t u r e i s n o t used as a synonym f o r t h e a r t s o r l e i s u r e - t i m e a c t i v i t y . On t h e c o n t r a r y , i t i s used i n i t s f u l l a n t h r o p o l o g i c a l and s p i r i t u a l sense t o s i g n i f y e v e r y t h i n g t h a t a s o c i e t y b e l i e v e s and c r e a t e s . L i s t e n as t h e Prem K i r p a l , former Depu ty -D i rec to r o f Unesco, g i v e s us an i n s i g h t i n t o t h e expansive and dynamic c h a r a c t e r o f c u l t u r e :

A l i v i n g and v i t a l c u l t u r e i s r o o t e d i n a u t h e n t i c and h e a l t h y t r a d i t i o n s , has t h e c a p a c i t y o f con t inuous renewal and adap ta t ion , and i s developed by new a s p i r a t i o n s and b o l d i n n o v a t i o n s ; i n t h i s way t h e p a s t , t h e p r e s e n t and t h e f u t u r e a r e r e - f l e c t e d t o g e t h e r i n t h a t l i f e o f t h e mind and t h e s p i r i t t h a t i s t h e i n d e f i n a b l e complex o f c u l t u r e . The human i t i es and t h e a r t s , t h e sc iences and t h e t e c h n o l o g i e s , t h e network o f communications and r e l a t i o n s h i p s , t h e magic o f p o e t r y and t h e t r a n s - cendence o f r e l i g i o n , a l l these spheres o f a c t i o n and s p e c u l a t i o n fo rm t h e p a t - t e r n o f c u l t u r e . The r i c h and f a s c i n a t i n g d i v e r s i t y o f these p a t t e r n s i s a p rec ious h e r i t a g e o f mankind t h a t needs t o be p reserved and developed!/.

There a r e two advantages t o such an expansive and dynamic d e f i n i t i o n o f c u l t u r e . F i r s t , i t i s p o s s i b l e t o see s o c i e t y as i t r e a l l y i s - as an e v o l v i n g process o f i n t e r r e l a t e d a e s t h e t i c , s c i e n t i f i c , i n t e l l e c t u a l , s o c i a l , p o l i t i c a l and economic components, r a t h e r than as a s t a t i c p r o d u c t o f economic determin ism. Second, i t i s p o s s i b l e t o s tand on t h e p e r i m e t e r o f s o c i e t y i n o r d e r t o s tudy i t w i t h a c r i t i c a l eye - as an a n t h r o p o l o g i s t m i g h t do when a n a l y s i n g d i f f e r e n t c i v i l i z a t i o n s i n o r d e r t o see c l e a r l y t h e i r excesses and imbalances, s t r e n g t h s and shor tcomings. When each of these advantages i s c a r r i e d t o i t s l o g i c a l conc lus ion , i t i s easy t o see t h a t what r e s u l t s i s a s o c i e t y w i t h a much d i f f e r e n t i n t e r n a l dynamic and system o f va lues than t h e s o c i e t y t h a t i s served up by t h e advocates o f economic determin ism.

*/ D. Paul Schafer , 250 B r i d l e t o w n e C i r c l e , Scarborough, O n t a r i o , Canada.

1/ C u l t u r e . Vol . Ill No. 4. C u l t u r e , S o c i e t y and Economic f o r a New World. UNESCO - - Press and l a Racnnipt-@ ( P a r i s : 1976) p. 86.

No sooner i s s o c i e t y viewed i n these terms - t h a t i s t o say, f rom a p e r s p e c t i v e o f c u l t u r a l humanism - than i t i s apparent t h a t e n t i r e l y new p lann ing and d e c i s i o n - making processes w i l l be r e q u i r e d . No longer w i l l p l a n n i n g and decis ion-making processes be designed i n v e r t i c a l , s p e c i a l i z e d terms t o r e f l e c t t h e b iases o f modern economic systems. On the c o n t r a r y , they w i l l be designed i n h o r i z o n t a l , i n t e g r a t e d terms t o r e f l e c t t h e need f o r i n p u t f rom a l l sec to rs o f s o c i e t y . Given these new processes, i t w i l l no l o n g e r be a f a r - f e t c h e d idea t o have a r t i s t s and humanists s i t t i n g i n p o l i t i c a l boardrooms, s i n c e i t w i l l be as e s s e n t i a l t o examine t h e a e s t h e t i c and human e f f e c t s o f economic and t e c h n o l o g i c a l change as i t w i l l be t o cons ider t h e economic and t e c h n o l o g i c a l e f f e c t s o f c u l t u r a l change. What holds t r u e f o r t h e p o l i t i c a l process a l s o ho lds t r u e f o r t h e c o r p o r a t e process. Are t h e envi ronmental and human e f f e c t s o f i n d u s t r i a l p o l i c i e s any l e s s impor tan t than p ro - d u c t i v i t y and p r o f i t increases? Should designers, e n v i r o n m e n t a l i s t s and c i t i z e n s n o t a l s o be found on t h e boards o f t r a n s n a t i o n a l c o r p o r a t i o n s ?

Without doubt, i n t e g r a t i v e processes w i l l slow down t h e pace o f decis ion-making. Bu t i s t h a t so bad? Which i s more p r e f e r a b l e ? I s i t b e t t e r t o have a v a s t l y speeded-up decis ion-making process which steam r o l l s over impor tan t a e s t h e t i c envi ronmental , s o c i a l and human i ssues? O r i s i t b e t t e r t o have a slowed-down decis ion-making process which g ives c a r e f u l c o n s i d e r a t i o n t o t h e e f f e c t s of economic dec is ions on p e o p l e ' s l i v e s , t h e i r communit ies and t h e n a t u r a l envi ronment? For more than a cen tu ry , t h e w o r l d has been i n t h e cons tan t g r i p o f one t y p e of d e c i s i o n - making process. It i s h i g h t i m e we were g r ipped by t h e o ther .

As t h i s happens, t h e e n t i r e pace of l i f e w i l l s low down and assume more manageable p r o p o r t i o n s . No l o n g e r w i l l t h e r e be t h e acce le ra ted f r e n z y induced by modern economic systems. The cha l lenge w i l l n o t be t o race through l i f e from s t a r t t o f i n i s h , t o leave e v e r y t h i n g - food, p r o j e c t s , work and h o l i d a y s - i n a h a l f - d i g e s t e d s t a t e . The o b j e c t w i l l no l o n g e r be t o keep up w i t h t h e r a p i d tempo of assembly- l i n e p roduc t ion . Rather , t h e cha l lenge w i l l be t o move a t a tempo which p e r m i t s people everywhere t o f i n d c r e a t i v e i n s p i r a t i o n and human j o y i n work and l e i s u r e , t o t a c k l e every t a s k w i t h a sense o f d e d i c a t i o n and enthusiasm, t o e x p l o r e t h e i n - f i n i t e mys te r ies o f l i f e t o t h e f u l l e s t and t o savour every p rec ious moment of t h e human exper ience. For, as Bergson so a s t u t e l y r e a l i z e d , a11 t h a t r e a l l y happens when you double t h e pace o f l i f e i s t h a t you miss t w i c e as much.

Once t h e pace o f l i f e slows down, obsession w i t h q u a n t i t y w i l l t u r n t o concern f o r q u a l i t y . There w i l l be l e s s concern w i t h i n v e n t i n g automated and cybernated tech- n iques which expand t h e supp ly o f un i fo rm, p l a s t i c p roduc ts and more a t t e n t i o n g i v e n t o f a s h i o n i n g products which have been car ressed by human hands and i n s p i r e d by i n v e n t i v e minds. I t w i l l prove e a s i e r and e a s i e r f o r c i t i z e n s t o a p p r e c i a t e t h e d e d i c a t i o n a r t i s t s and a r t i s a n s have t o exce l lence i n a l l forms of c r e a t i v e en- deavour. As t h i s happens, p reoccupa t ion w i t h mass p r o d u c t i o n and measures which p o l l u t e t h e e x t e r n a l environment w i l l d i s s o l v e i n t o commitment t o a r t i s t i c s tandards and d e c o r a t i v e p o l i c i e s which adorn t h e e x t e r n a l environment. S low ly b u t s t e a d i l y t h e a c q u i s i t i v e s o c i e t y w i l l y i e l d t o t h e a e s t h e t i c s o c i e t y .

Wi thou t doubt, changes i n p a t t e r n s o f l i v i n g a r e t h e key t o a more human wor ld . Dur ing t h e p a s t cen tu ry , l i f e s t y l e s , p a r t i c u l a r l y those c a s t i n t h e western wor ld , have e x p l o i t e d t h e environment t h a t i s e x t e r n a l t o man. We have observed what i n c r e d i b l e demands these l i f e s t y l e s have made on m a t e r i a l resources and human values. Over t h e n e x t cen tu ry , what w i l l be needed more and more a r e l i f e s t y l e s which e x p l o r e t h e environment t h a t i s i n t e r n a l t o man and p r o t e c t t h e environment

t h a t i s e x t e r n a l t o man. T h i s i s what makes a e s t h e t i c and i n t e l l e c t u a l a c t i v i t i e s l i k e t h e a r t s and c r a f t s , m e d i t a t i o n , l i f e - l o n g educa t ion , con temp la t ion , conserva- t i o n and s p i r i t u a l renewal so e s s e n t i a l . They d r a s t i c a l l y reduce t h e d r a i n on ma- t e r i a l resources and s u b s t a n t i a l l y i n c r e a s e i n d i v i d u a l s a t i s f a c t i o n and human p a r t i c i p a t i o n .

I t i s n o t t h e i n t e n t i o n he re t o p i t one l i f e s t y l e a g a i n s t ano ther , t o t u r n t h e w o r l d i n t o a b a t t l e g r o u n d between c o n s e r v a t i o n and consumption, s i n c e t h a t would defy commonsense which i s t h e essence o f c u l t u r a l humanism. F o r t u n a t e l y , i t i s n o t a q u e s t i o n o f choosing one l i f e s t y l e over another . Ra ther , i t i s a q u e s t i o n o f b l e n d i n g s e v e r a l l i f e s t y l e s i n t o a more humane and harmonious p a t t e r n f o r f u t u r e l i v i n g . I n much t h e same way, i t i s n o t r e a l l y a q u e s t i o n o f g rowth o r no growth - u n m i t i g a t e d consumption o r t o t a l abs t inence . On t h e c o n t r a r y , i t i s a m a t t e r o f a c h i e v i n g a r a t e o f t o t a l development which a l l o w s f o r a reasonable r a t e o f con- sumpt ion on t h e one hand and a s e n s i t i v i t y f o r people and t h e n a t u r a l env i ronment on t h e o t h e r hand. Th is i s what t h e dawning o f a new age i s a l l abou t .

A t t h i s j u n c t u r e , one m i g h t be tempted t o ask what a r e t h e u l t i m a t e aims o f t h i s new age. I n conc re te terms, t h e y i n c l u d e g r e a t e r human f u l f i l l m e n t i n l i f e , more c r e a t i v i t y i n work and l e i s u r e , more human t o l e r a n c e o f d i v e r s i t y , a more a t - t r a c t i v e and l e s s p o l l u t e d envi ronment , reduced m a t e r i a l consumption, g r e a t e r c o n s e r v a t i o n o f resources, more c i t i z e n p a r t i c i p a t i o n i n dec i s ion-making and f i r m e r community c o n t r o l o v e r f u t u r e d i r e c t i o n s . On c l o s e r i n s p e c t i o n , these u l t i m a t e aims o f t h e new age t u r n o u t t o be t h e b a s i c o b j e c t i v e s o f an e n l i g h t e n e d c u l t u r a l p o l i c y .

P o l i t i c s and t h e New I n t e r n a t i o n a l Order

I f these o b j e c t i v e s o f an e n l i g h t e n e d c u l t u r a l p o l i c y a r e t o be achieved, i t i s obv ious t h a t p o l i t i c a l systems must be evo lved which can w i t h s t a n d t h e p ressures o f economic determin ism i n o r d e r t o respond i m p a r t i a l l y t o t h e r e a l needs o f peop le i n genera l and communit ies i n p a r t i c u l a r . Th is w i l l p rove t o be no easy t a s k . A l r e a d y t h e r e a r e i n d i c a t i o n s t h a t governments a r e caught i n a squeeze, as t h r e a t s o f i n f l a t i o n , unemployment and 'low r a t e s o f economic growth spawn c r i e s f rom t h e business and w e a l t h y communit ies f o r a r e t u r n t o such c o n v e n t i o n a l d i c t a t e s o f eco- nomic determin ism as p r o f i t max im iza t ion , u n r e s t r a i n e d resource u t i l i z a t i o n , un- c o n t r o l l e d p r i c i n g p o l i c i e s and c u t s i n what t h e y deem t o be " s u p e r f l u o u s " spending.

Never the less , g i v e n t h e s i z e o f most governments today as w e l l as t h e immense power they y i e l d over s o c i e t y , i t i s incumbent on governments everywhere t o a c t w i t h o b j e c t i v i t y , j u s t i c e and i n t e g r i t y i n t h e a r t i c u l a t i o n and e x e c u t i o n o f p u b l i c p o l i c i e s .

A c t i n g w i t h o b j e c t i v i t y , j u s t i c e and i n t e g r i t y r e q u i r e s a number o f fundamental p o l i t i c a l commitments. F i r s t , i t r e q u i r e s a genuine commitment t o b r i n g i n g t h e q u a n t i t a t i v e and q u a l i t a t i v e components o f development i n t o e q u i l i b r i u m . S ince t h e developmenta l e q u a t i o n i s p r e s e n t l y ove r loaded on t h e q u a n t i t a t i v e s i d e , t h i s means g i v i n g p re fe rence f o r a t ime t o t h e b u i l d i n g o f q u a l i t a t i v e resources - music , dance and drama companies, env i ronmenta l agencies, c r a f t a s s o c i a t i o n s , e d u c a t i o n a l i n s t i t u t i o n s , l i b r a r i e s , museums, pa rks , c o n s e r v a t i o n areas and a t h l e t i c o r - g a n i z a t i o n s - a t t h e v e r y t i m e when t h e r e a r e s t r i d e n t c r i e s f rom t h e ves ted com- m e r c i a l i n t e r e s t s t o c u t back on these e s s e n t i a l s e r v i c e s . However, i t i s o n l y th rough an expansion o f these s e r v i c e s , which, a f t e r a l l , a r e t h e main c o n t r i b u t o r s

t o the qua l i t y of l i f e , t h a t a t rue in tegra t ion of the ae s the t i c , s o c i a l , p o l i t i c a l , economic and humanistic components of the developmental process can be achieved. A t the same time, a basic commitment i s a l so required t o the evolution of po l i t i ca l s t ruc tu re s which a r e s u f f i c i e n t l y decentralized and autonomous. We have noted the dangers involved in allowing decision-making processes t o s l i p too f a r from in- d iv iduals and community groups. I t i s here t h a t we encounter one of the most elementary con f l i c t s between p o l i t i c s and cu l tu re - the con f l i c t between unity and iden t i t y . This c o n f l i c t has been well documented by the grea t l i t e r a r y c r i t i c Northrop Frye. In The Bush Garden he contends:

I t i s not always realized t h a t unity and iden t i t y a r e qu i t e d i f f e r e n t things t o be promoting.. . Ident i ty i s local and regional , rooted in t he imagination and works of cu l tu re ; unity i s national in reference, in ternat ional in pers- pective, and rooted in a p o l i t i c a l f ee l ing ... Assimilating iden t i t y t o unity produces t he empty gestures of cul tura l nationalism; ass imi la t ing unity t o i den t i t y produces the kind of provincial i so l a t i on which i s now cal led separatism.

Finding the proper geographical and psychic balance between the po l i t i ca l forces of unity and the cul tura l forces of i den t i t y wi l l prove t o be no easy matter anywhere in the world. Since the p o l i t i c a l i n s t i t u t i o n s of most countries have been shaped during the era of economic determinism, they a r e s t ruc tured t o accommodate s i z e , material gain, and most of a l l , economic power. Nevertheless, loss of i den t i t y has been so manifest in the modern world t h a t most national governments today a r e being forced t o turn over more and more po l i t i ca l author i ty t o regional and local governments. Concurrently, the l i ves of individuals have been so constrained in the modern era t h a t there i s a corresponding pressure t o surrender g rea t e r f l e x i b i l i t y t o an increasing number of public agencies. Clearly t he only e f f ec t ive response t o these pressures i s t o evolve decentra l ized , autonomous po l i t i ca l s t ruc tu re s which a r e counterpoised t o achieve an e f f ec t ive balance between the forces of unity and iden t i t y .

Tension between p o l i t i c s and cu l tu re i s by no means l imited t o the problem of re- concil ing uni ty and iden t i t y . There i s a deeper and more fundamental tension which must confronted. In t he main, p o l i t i c s has t o do with j u s t i c e and order. Culture has t o do with c r e a t i v i t y and freedom of expression. A more fundamental c o n f l i c t could hardly be imagined. What po l i t i ca l workers may seek t o const ruct , cul tura l c r ea to r s may s t ruggle t o destroy. Whereas po l i t i c i ans a r e often involved in attempts t o cool soc i e t i e s down, crea tors a r e often committed t o heating soc i e t i e s up, par- t i c u l a r l y i f they sense t h a t these s o c i e t i e s a r e too dependent on outmoded values or r i g i d adherence t o the s t a t u s quo.

I f there i s one point where there must be a convergence of ac t ions and a t t i t u d e s among po l i t i c i ans and c rea to r s , i t i s in the pursui t of t ru th . The pursui t of t ru th must transcend a l l tensions between cu l tu re and p o l i t i c s . I t must cons t i t u t e the moral pinnacle t o which po l i t i c i ans and cul tura l c r ea to r s a l i k e a sp i r e .

There i s one area especia l ly where t he pursui t of t r u t h i s imperative i n the modern world. That i s in the wri t ing - or perhaps I should say the re-writ ing - of h is tory . Not only i s i t e s sen t i a l t o present h is tory more in terms of the need a l l people have t o express themselves than in terms of the s t ruggle f o r survival o r the competition between labour and c a p i t a l , but a l so i t i s equally e s sen t i a l t o present h is tory in a f a r more authent ic manner than i t i s a t present. Unfortunately, the h is tory t h a t

s known i n most p a r t s o f t h e w o r l d today i s c o l o n i a l h i s t o r y ; i t has been w r i t t e n lmos t e n t i r e l y by those i n c o n t r o l o f t h e ins t ruments o f communications and command f t h e p r i n t e d word. What r e s u l t s i s a wholesale m i s r e p r e s e n t a t i o n o f h i s t o r i c a l r u t h - h i s t o r i c a l i n t e r p r e t a t i o n s which a r e f a r t o o complimentary t o wes te rn o c i e t i e s and f a r t o o uncomplimentary t o s o c i e t i e s i n o t h e r p a r t s o f t h e wor ld . a r t o o o f t e n , h i s t o r i c a l accounts beg in and end w i t h t h e i n t r u s i o n o f western eoples i n t o o t h e r s o c i e t i e s . Far t o o seldom, t r i b u t e i s p a i d t o t h e r o l e non- e s t e r n peoples have p layed i n t h e founda t ion o f w o r l d c i v i l i z a t i o n . For example, u r s u i t o f h i s t o r i c a l t r u t h demands r e c o g n i t i o n o f t h e f a c t t h a t i t was t h e I n d i a n s nd Eskimos, and n o t t h e Eng l i sh , French o r Spanish, which s e t t l e d America. I n much he same way, i t must now be accepted t h a t t h e economic, s o c i a l , c u l t u r a l and i n - e l l e c t u a l c o n t r i b u t i o n o f A f r i c a n s and Asians t o w o r l d development i s every b i t s g r e a t as t h e i r European and Nor th American coun te rpar ts . Needless t o say, e c i p r o c a l developments a r e needed here. On t h e one hand, much more h u m i l i t y i s e q u i r e d on t h e p a r t o f Western peoples and t h e i r h i s t o r i a n s . On t h e o t h e r hand, uch more o f t h e h i s t o r y o f t h e w o r l d must be w r i t t e n by non-western people and i r c u l a t e d accord ing ly . Only then w i l l i t be p o s s i b l e t o c l a i m a balanced and u t h e n t i c v iew o f t h e h i s t o r i c a l process.

n t e r n a t i o n a l C u l t u r a l Cooperat ion: Key t o a New World

here can be l i t t l e doubt t h a t i n t e r n a t i o n a l c u l t u r a l coopera t ion holds t h e key t o more humane and c i v i l i z e d wor ld. Since c u l t u r e s a r e q u a l i t a t i v e r a t h e r than

u a n t i t a t i v e , i n t e r n a t i o n a l c u l t u r a l coopera t ion p rov ides no b a s i s f o r d i v i d i n g he w o r l d a long a r b i t r a r y and b e l i t t l i n g l i n e s . Cu l tu res a r e n o t more o r less , hey a r e mere ly d i f f e r e n t . Moreover, i n t e r n a t i o n a l c u l t u r a l coopera t ion does n o t x p l o i t ; i t prov ides no o p p o r t u n i t y f o r some t o make ga ins a t t h e expense o f o t h e r s . o r i s i t h u m i l i a t i n g . On t h e c o n t r a r y . I t i s u p l i f t i n g and rewarding, s i n c e i t rov ides a11 n a t i o n s w i t h an o p p o r t u n i t y t o p resen t t h e f i n e s t and most cher i shed ccom~l i sh rnen ts o f t h e i r c i v i l i z a t i o n . I n t h e f i n a l a n a l y s i s , t h a t i s what t h e ew i n t e r n a t i o n a l o r d e r must be a11 about.

i t i s h R. ~ e ? /

\ NOTE ON UNDERSTAND >YSTEM DESIGN

ING PARTICIPATION PROCESS

h i s n o t e seeks t o r a i s e a number o f i ssues on t h e dynamics o f p a r t i c i p a t i o n t h a t r e c u r r e n t l y i n my thoughts. The ideas a r e t e n t a t i v e and specu la t i ve .

u e s t i o n s a r e r a i s e d on which f u r t h e r p rob ings a r e warranted:

. I n t h e l i t e r a t u r e on o r g a n i s a t i o n s t u d i e s , two terms a r e o f t e n used t o r e f l e c t p o l a r i s e d concept : under -o rgan isa t ion and over -o rgan isa t ion . When I try t o

nders tand i n a comparat ive way d i f f e r e n t types o f o r g a n i s a t i o n s - economic and on-economic, sma l l and b i g , urban and r u r a l , i n d u s t r i a l and n o n - i n d u s t r i a l , I i n d t h a t t h i s b y - p o l a r concept does n o t e x p l a i n r e a l i t i e s adequate ly .

/ N i t i s h R. De, N a t i o n a l Labour I n s t i t u t e , AB-6 Sa fdar jang Enclave, New D e l h i - 1

I would r a t h e r seek t h r e e a l t e r n a t i v e s : pre-modern, modern and post-modern, t o d e s c r i b e such o r g a n i s a t i o n systems as mentioned. A pre-modern o r g a n i s a t i o n system i s one which has been o r i s i n a s t a t e o f sub-optimum l e v e l m a i n l y because o f l a c k o f knowledge and s k i l l s and p reva lence o f ignorance. It does n o t i n c l u d e l a c k o f o p p o r t u n i t y . To g i v e an example, i f i n a r i c h peasant s o c i e t y i n f a n t mor- t a l i t y r a t e i s h i g h and one o f t h e ma jo r causes i s found t o be t h e p a r e n t s ' pe r - s i s t e n c e w i t h an unbalanced d i e t f o r t h e i r c h i l d r e n based on age-o ld s u p e r s t i t i o n , then, I would l i k e t o c a l l i t a pre-modern o r g a n i s a t i o n system ( t h e f a m i l y u n i t ) .

A modern o r g a n i s a t i o n system i s t h e one we a r e most f a m i l i a r w i t h and which e x i s t s i n p r a c t i c a l l y a l l walks o f l i f e a l l ove r t h e wor ld . Large o r s m a l l , i t i s h i e - r a r c h i c . I t f o l l o w s t h e l o g i c o f d i v i s i o n o f l a b o u r on t h e p r i n c i p l e o f redundancy. Impersonal o r quasi - impersonal work r e l a t i o n s h i p s a r e dominated by open o r s u b t l e r u l e s , r e g u l a t i o n s , checks and counter-checks. P o w e r - d i s t r i b u t i o n f o l l o w s t h e l o g i c o f c h a i n o f command.

The post-modern o r g a n i s a t i o n s a r e those which seek t o a v o i d t h e l i m i t a t i o n s , pa ins and d i s f u n c t i o n a l i t y o f modern o r g a n i s a t i o n s by making these t o o p t f o r human development c u l t u r e which i s p o s s i b l e i f t h e o r g a n i s a t i o n ' s e n t i r e r a t i o n a l e operate: w i t h i n a framework o f c e r t a i n i d e a l s . I n ano ther c o n t e x t , I have used a meta - idea l t o d e s c r i b e t h e v i s i o n o f such o r g a n i s a t i o n s by u s i n g t h e term Samaj-s iddhi . T h i s r e f e r s t o t h e process o f d e t e r m i n a t i o n o f s o c i a l s e l f t h rough t h e s imul taneous e f f o r t t o c r e a t e a j u s t s o c i a l system.

One w i l l p r o b a b l y n o t e t h a t we a r e n o t u s i n g t h e te rm modern i n t h e sense which i t has been used by many s o c i a l s c i e n t i s t s n o t e x c l u d i n g I n k l e s s and McCl le land which, one way o r ano ther , makes m o d e r n i t y an e x t e n s i o n o f r a t i o n a l , western c u l t u r e .

2. Wh i le i n t h e 1960s and 1970s many exper iments have been and a r e be ing conducted t o c o n v e r t i n d u s t r i a l o r g a n i s a t i o n s i n t h e western c o u n t r i e s i n t o post-modern systems th rough m u l t i p l e approaches such as i n d u s t r i a l democracy, q u a l i t y o f work ing l i f e movement and self-management approach, most o f these exper iments have su f fe red f rom m i c r o - l e v e l encapsu la t ion . The problems o f apathy and a1 i e n a t i o n , i n a b i l i t y t o cope w i t h o r g a n i s a t i o n power and c l a s h w i t h b u r e a u c r a t i c va lues i n a framework o f f r e e e n t e r p r i s e economy have s t o o d i n t h e way t o push these exper iments t o a stage where humani ty c o u l d draw encouragement t o rescue i t s e l f f rom t h e t y ranny o f tech - no logy , marke t mechanisms and persona l greed.

0

3. When we examine o r g a n i s a t i o n s o f t h e p e r i p h e r a l and marg ina l people, p r i m a r i l y i n t h e r u r a l s e c t o r b u t a l s o i n t h e urban s e c t o r , we a r e o f t e n s t r u c k by t h e i n - nova t i veness and f o r e s i g h t o f t h e o r g a n i s e r s i n i n c u l c a t i n g t h e va lues o f p o s t - modern i t y . O f t e n enough t h e o r g a n i s e r s and p a r t i c i p a n t s a r e conterminous. Leader- s h i p r o l e does n o t remain a f i x e d concept. Organ isa t ions remain s imp le i n s t r u c t u r e and t h e processes o f f u n c t i o n i n g w i t h t h e r e s u l t t h a t these do n o t break under p ressure o f e x t e r n a l a s s a u l t . I t s e l a s t i c i t y he lps t o r e g a i n a s t a t e o f re-assembly.

4. The o r g a n i s a t i o n o f these people, th rough a range o f i t s a c t i v i t i e s , resembles an i n d u s t r i a l t r a d e union. Yet, i n p r a c t i c e , such p e o p l e ' s o r g a n i s a t i o n s a r e t o t a l o r n e a r - t o t a l ( p a r t i c i p a t i o n r a t e ) , more open, meet ings and d iscuss ions a r e f r e e o r l e s s i n h i b i t e d and t h e l e a d e r s h i p remains n o t o n l y accoun tab le t o members b u t a l s o opera tes i n c l o s e i n t e r a c t i o n w i t h them. Women a r e no l e s s r e l e v a n t t h a n men.

5. These o b s e r v a t i o n s r a i s e a number o f ques t ions :

a ) What a r e t h e premises on which these p a r t i c i p a t o r y work o r g a n i s a t i o n s a r e designed?

b ) What a r e t h e design p r i n c i p l e s taken i n t o account and why? c ) I f t h e c o n t r o l system i s norm-based, how do t h e norms evo lve and how a r e

these observed? d) What a r e t h e q u a l i t a t i v e dimensions o f i d e a l s and how do t h e goals-system

d o v e t a i l i n t o t h e ideals-systems? e) How a r e t h e i n t e r n a l and e x t e r n a l c r i s e s d e a l t w i t h and w i t h what e f f e c t ? f ) What a re , e m p i r i c a l l y speaking, some o f t h e i n g r e d i e n t s o f post-modern s o c i e t y ? g ) I n " r e - w r i t i n g " t h e r e a l i t y , how do t h e o b j e c t i v e c o n d i t i o n s i n t e r a c t w i t h

s u b j e c t i v e f o r c e s ?

I suppose what I am seeking i s t o understand t h e r o l e o f p a r t i c i p a t i o n process i c h I see as a p lanned and n o t random process) i n terms o f i t s p o s s i b l e c o n t r i b u t i o n the t r a n s f o r m a t i o n o f modern o r g a n i s a t i o n s i n t o post-modern o r g a n i s a t i o n s .

ACTIONS TO PREVIOUS DOSSIERS - EXCERPTS FROM A LETTER

ill use t h i s o p p o r t u n i t y t o o f f e r some r e a c t i o n s t o p rev ious Doss ie rs .

4, February 1979 - Ann M a t t i s , "Science and Technology f o r S e l f - R e l i a n t Development".

c a u t i o n (p.7) t h a t " a p p r o p r i a t e technology i s an approach, n o t a dogma" i s wise. seems t o me t h a t issues r e l a t e d t o development, energy, environment, e t c . , a r e so- de-laden t h a t they can e a s i l y p o l a r i z e op in ions . T rade-o f f s , med ia t ion , c o n c i l i a t i o n , t h e l i k e , a r e terms t h a t w i l l r e q u i r e j u d i c i o u s employment i n exchanges r e -

i v e t o such mat te rs .

i n , Feb. 1979 - Har lan C leve land 's "Dear Willy" i t e m .

u r g i n g o f deve lop ing n a t i o n s t o f a s h i o n a " s e r i o u s p l a n f o r do ing something about s r t y " and t o demonstrably g e t "on w i t h t h e j o b " i s sound advice. Developed c o u n t r i e s , aver, a r e l i k e l y t o face i n c r e a s i n g i n t e r n a l demands t o engage i n s i m i l a r a c t i v i t y . 1980s may be marked by both n a t i o n a l and i n t e r n a t i o n a l pressures f o r more e q u i t a b l e

i s o f a l l o c a t i n g resources. Jan Pronk 's "We A l l Need a New I n t e r n a t i o n a l Order" suggest ive.

zh 1979 - I n t e r a c t i o n s

. W i l l i a m s ' a s s e r t i o n (p.8) t h a t " r u r a l development cannot be achieved by l o c a t i n g 3rn s e c t o r i n d u s t r i e s i n t h e r u r a l areas." I n c o n t r a s t , I suggest t h a t a c e r t a i n 3 o f development can, indeed, be achieved. But, as W i l l i a m s s t a t e s , a t l e a s t two ~ l t s o c c u r which can u rban ize a r u r a l s e t t i n g . I c i t e d two o f them i n a s tudy the impact o f t h e I n t e r s t a t e Highway System upon a r u r a l s i t e i n I l l i n o i s ( n o t e 3 o f my paper) .

-- cordon Hoke, ~ n i v e r s i ty of Ill i n o i s a t Urbana-Champaign, Center f o r I n s t r u c t i o n a l research and Cur r i cu lum Eva lua t ion , Urbana, I l l i n o i s 61801.

"The t a s k o f m a i n t a i n i n g balanced growth, n o t ' s u r v i v a l and s i g n i f i c a n c e , ' con f ron t Eff ingham. From t h i s standpoint,. t h e downstate community i s t i e d more t o an urban s o c i e t y w i t h i t s c o m p l e x i t i e s o f re fo rm and renewal than i t i s t o t h e smal l town s u r v i v a l p a t t e r n s o f p a s t years . And these urban elements c a r r y v a s t momentum." (p.42 o f Goodbye . . . )

I n no smal l measure, t h e r e g i o n a l problems o f r u r a l America and o f t h e c i t y center a r e assoc ia ted w i t h t h e f a i l u r e o f l o c a l and r e g i o n a l educa t iona l p o l i c i e s and i n s t i t u t i o n s t o keep pace w i t h n a t i o n a l economic and t e c h n o l o g i c a l development." (p. 234 o f Goodbye . . . )I'

*/ Arne F j o r t o f t -

A BETTER INFORMED WORLD - HOW CAN WE MEET THE NEED?

The i n t r o d u c t i o n o f a new economic o r d e r i s a long te rm process, and as such does n o t by i t s e l f a t t r a c t much a t t e n t i o n i n t h e o u t f l o w o f i n f o r m a t i o n throughout t h e mass media, b u t as a v i t a l ques t ion f o r t h e whole i n t e r n a t i o n a l community, i t deserves much a t t e n t i o n i n t h e i n f o r m a t i o n process i n o r d e r t o keep t h e w o r l d o p i n i o n aware and in formed about a l l t h e i m p o r t a n t aspects o f t h e s u b j e c t . World- v iew I n t e r n a t i o n a l Foundat ion i s t h e r e f o r e designed t o a s s i s t i n t h i s i m p o r t a n t f i e l d , and t o g e t h e r w i t h o t h e r o r g a n i s a t i o n s and i n s t i t u t i o n s c r e a t e more i n - f o r m a t i o n o f h i g h p r o f e s s i o n a l s tandards t o be made a v a i l a b l e f o r t ransmiss ion by v a r i o u s t e l e v i s i o n s t a t i o n s i n t h e wor ld .

A b e t t e r f l o w o f i n f o r m a t i o n w i l l a l s o be o f h e l p t o p o l i c y makers and o p i n i o n b u i l d e r s work ing f o r a j u s t i n t e r n a t i o n a l s o c i e t y . A sys temat i c use o f modern media based on an independent p r o f e s s i o n a l p r o d u c t i o n can p l a y an i m p o r t a n t p a r t i n t h e on-going process o f c r e a t i n g a new economic o rder . The b a s i s f o r such p roduc t ions i s t o concen t ra te on t h e human aspect o f t h e problems f a c i n g t h e m a j o r i t y o f t h e w o r l d community.

Worldview I n t e r n a t i o n a l Foundat ion has been a b l e t o l i n k up i t s a c t i v i t i e s w i t h p r o f e s s i o n a l media teams hav ing l o n g exper ience i n t h e p r o d u c t i o n o f f i l m s and TV programmes f rom T h i r d World c o u n t r i e s , w i t h an emphasis on q u a l i t y and p ro - f e s s i o n a l i s m i n t h e p r o d u c t i o n process. There i s a g r e a t p o s s i b i l i t y f o r more i n f o r m a t i o n on T h i r d World c o u n t r i e s on t h e TV network o f t h e w o r l d w i t h i t s o u t l e t s t o more than 700 m i l l i o n people. The p r o d u c t i o n w i l l be concen t ra ted on documentaries, educa t iona l programmes, f e a t u r e news, c h i l d r e n ' s f i l m s and dra- mat i zed f e a t u r e s t o r i e s and co-p roduc t ion w i t h TV s t a t i o n s and o r g a n i s a t i o n s . One of t h e f i r s t f i l m s produced by Sebra F i l m of Sweden f o r Worldview Foundat ion has been awarded UNICEF's p r i z e f o r t h e b e s t f i l m i n t h e s e r i e s o f " C h i l d r e n o f t h e World". The f i l m was sho t i n Nepal.

Worldview I n t e r n a t i o n a l Foundat ion w i l l concen t ra te i t s promot ion o f p r o d u c t i o n through con tac ts w i t h TV s t a t i o n s and o r g a n i s a t i o n s and w i l l seek co-opera t ion w i t h a l l groups and i n s t i t u t i o n s work ing f o r a new I n f o r m a t i o n Order, such as t h e U n i t e d Nat ions and i t s Agencies, Governments and v o l u n t a r y I n s t i t u t i o n s . I n a d d i t i o n t o t h e f i l m u n i t which w i l l work on an i n t e r n a t i o n a l sca le , t h e Foundat ion i s going t o e s t a b l i s h a media c e n t r e f o r educa t ing and t r a i n i n g personnel f rom T h i r d World c o u n t r i e s , i n t h e methods and techniques o f mass communication. Th is w i l l a l s o p r o v i d e f o r a Development Support Communication U n i t t o a s s i s t develop- ment p r o j e c t s i n S r i Lanka, and w i l l l a t e r be extended t o o t h e r T h i r d World c o u n t r i e s . I n a d d i t i o n t o t h i s t h e r e w i l l be t r a i n i n g programmes i n t h e use o f o t h e r media, i n c l u d i n g p r o d u c t i o n o f s l i d e s , p i c t u r e s , f e a t u r e a r t i c l e s f o r papers and p e r i o d i c a l s . Seminars i n b a s i c knowledge o f mass media and s p e c i a l i z e d sub jec ts f o r p r o f e s s i o n a l s w i l l be arranged i n co -opera t ion w i t h o t h e r o r g a n i s a t i o n s .

Even though Worldview I n t e r n a t i o n a l Foundat ion w i l l s t a r t i t s opera t ions on a sma l l sca le , t h e r e i s a r e a l i s t i c p o s s i b i l i t y o f expanding t h e programme. Grea te r emphasis shou ld a l s o be made t o a s s i s t T h i r d World c o u n t r i e s w i t h t h e i r i n f o r m a t i o n needs i n va r ious f i e l d s . The m a j o r i t y o f t h e people i n t h e wor ld, l i v i n g i n T h i r d World c o u n t r i e s , have a m inor share i n t h e i n f o r m a t i o n process o f t h e modern wor ld. The o u t f l o w o f i n f o r m a t i o n f rom these c o u n t r i e s i s n o t r e l e v a n t t o t h e i r im- por tance i n t h e i n t e r n a t i o n a l s o c i e t y and t h e i r development p o t e n t i a l . T h i s has been c l e a r l y s t a t e d by many i n t e r n a t i o n a l i n s t i t u t i o n s . The F i f t h Conference o f Heads o f S ta tes o f Non A l igned Count r ies i n S r i Lanka i n 1976 s t a t e d t h a t a new I n t e r n a t i o n a l Order i n t h e f i e l d o f mass communication i s as v i t a l as t h e New I n t e r n a t i o n a l Economic Order.

I n s p i t e o f t h e problem be ing i d e n t i f i e d , t h e i n f o r m a t i o n gap i s s t i l l w idening. I n a d d i t i o n t o t h i s , a r e v o l u t i o n i n mass communication i s t a k i n g p l a c e due t o t h e r a p i d development o f e l e c t r o n i c media. There i s t h e r e f o r e , an accumulated need f o r a more sys temat i c use o f modern media f o r t h e c r e a t i o n o f b e t t e r under- s tand ing between r i c h and poor c o u n t r i e s .

Proper i n f o r m a t i o n o f events i n T h i r d World c o u n t r i e s and t h e l i v i n g c o n d i t i o n s and a s p i r a t i o n s o f t h e m a j o r i t y o f t h e people i n t h e wor ld, w i l l h e l p i n mo- b i l i z i n g p u b l i c o p i n i o n f o r a more j u s t i n t e r n a t i o n a l s o c i e t y .

*/ Arne F j o r t o f t i s t h e Secre ta ry o f t h e Prepara to ry Committee o f Worldview - I n t e r n a t i o n a l Foundation, Colombo, S r i Lanka, a v o l u n t a r y non p r o f i t i n s t i t u - t i o n f o r t h e p r o d u c t i o n o f f i l m s and t e l e v i s i o n programmes on s u b j e c t s r e l a t e d t o t h e new economic o r d e r w i t h s p e c i a l emphasis on t h e human aspect o f va r ious problems.

*/ Frank Long-

TECHNOLOGY PLANNING I N THIRD WORLD COUNTRIES: UNDUE ECONOMISE?

Economists have f o r some t ime now recognized t h e importance o f technology t o t h e development o f n a t i o n s . Th is remains so even though a t tempts a t r i g o r o u s l y c o n f i r m i n g t h i s a r e f a i r l y r e c e n t i n o r i g i n . For ins tance , t h e p i o n e e r i n g work o f Solow, Denison and o t h e r s . I n terms o f T h i r d World c o u n t r i e s , t h e " technique o f p r o d u c t i o n " q u e s t i o n i s compl icated by t h e f a c t t h a t t h e "mix o f techn iques" i s g e n e r a l l y n o t a p p r o p r i a t e f rom t h e f a c t o r p r o p o r t i o n s p o i n t o f view. T h i s means t h a t developmental p o s s i b i l i t i e s i n terms o f resource a1 l o c a t i o n a r e n o t f u l l y op t im ised . A f u r t h e r c o m p l i c a t i o n a r i s e s f rom t h e f a c t t h a t such techno- l o g y i s generated, by and l a r g e , abroad (ma in ly b y t r a n s n a t i o n a l c o r p o r a t i o n s ) . T h i s poses problems concern ing the d i s t r i b u t i o n o f w e l f a r e b e n e f i t s between l a r g e and powerfu l f i r m s and weak economies. Heavy c o s t s a r e s a i d t o be borne by T h i r d Wor ld c o u n t r i e s i n terms o f p r i c e s p a i d f o r technology, c o n d i t i o n s under which technology i s t r a n s f e r r e d , and i n terms o f absorb ing f o r e i g n technology. One upshoot o f t h i s i s t h e pronouncement o f technology p lans i n a number o f T h i r d World c o u n t r i e s . Advocacy f o r technology p l a n n i n g has been made by UNCTAD, f o r example, and t h e World Programme o f A c t i o n f o r Science and Technology o f t h e U n i t e d Nat ions .

Some c o u n t r i e s which have a l ready produced such p lans i n c l u d e Mexico, B r a z i l , Venezuela, I n d i a and Pak is tan . The p lans so f a r c o n f i r m t h e e s t a b l i s h e d , b u t n o t w h o l l y d e s i r a b l e , s o c i a l s c i e n t i f i c t r a d i t i o n o f l o o k i n g a t technology i n t h e development process - namely the o v e r r i d i n g importance o f economic c o n s i - d e r a t i o n s .

Some c e n t r a l f e a t u r e s o f these p lans s u f f i c e t o b r i n g t h i s o u t . A crude rev iew i s i n o rder , b u t t h i s does n o t t o o u r mind mis represen t t h e b a s i c economic t h r u s t o f these p lans .

I n t h e case o f B r a z i l , t h e t o p p r i o r i t i e s f o r the a l l o c a t i o n o f resources a r e as f o l l o w s : development o f new technology i n c l u d i n g space and m a r i t i m e (4%), new sources o f energy (15%), i n d u s t r i a l technology (25%), a g r i c u l t u r a l techno logy ( 1 4 % s c i e n t i f i c development and t r a i n i n g (26%), technology r e l a t i n g t o r e g i o n - a l and s o c i a l development (7%) .

I n the case o f I n d i a , t h e Science and Technology P lan i s d i v i d e d i n t o 24 sec to rs w i t h a p p r o p r i a t e a1 l o c a t i o n s . For example, n a t u r a l resources ( lO.5%), mar ine ( 1 .a), energy (10.5%), m in ing , s t e e l and metal 1 urgy (5.2%), heavy eng ineer ing (7.7%), a g r i c u l t u r e , atomic energy, space and e l e c t r o n i c s (25.4%). Appropr ia t ions a r e a l s o made f o r technology r e l a t i n g t o food, c l o t h i n g and s h e l t e r , as w e l l as u t i l i z a t i o n and r e c y c l i n g o f wastes, h e a l t h , research suppor t ex tens ion and educa t ion and the l i k e . I n the o t h e r cases, t h e p lans take on a l e s s p r e c i s e c h a r a c t e r . For Mexico, research and development i s expected t o be spread ma in ly t o a g r i c u l t u r e , i n d u s t r y , t r a n s p o r t and s o c i a l w e l f a r e (70%) . The coun t ry a l s o p l a n s t o achieve s e l f r e l i a n c e i n eng ineer ing and consu l tancy as w e l l as energy. By 1982, Mexico hopes t o have inc reased t h e c o n t r i b u t i o n o f R&D t o development by 300%, namely an inc rease i n t h e r a t i o n o f R&D t o GDP f rom 0.3% t o 0.6%. P a k i s t a n hopes t o inc rease R&D expend i tu re f rom Rs. 366 m i l l i o n i n 1976 t o Rs.

1,700 m i l l i o n i n 1981. A main f e a t u r e o f t h e p l a n i s p r o v i s i o n f o r t r a i n i n g t o p l e v e l s k i l l s such as engineers, s c i e n t i s t s and the l i k e . Venezuela's p l a n i s l a r g e l y two s e c t o r a l - 28% f o r i n d u s t r y and 39% f o r a g r i c u l t u r e and food p rocess ing . Energy a l s o rece ives an i m p o r t a n t c o n s i d e r a t i o n .

P r o v i s i o n i s made i n a l l these p lans f o r t h e s e t t i n g up o f anew i n s t i t u t i o n s t o deal w i t h theproblem o f technology and development. For example, new c e n t r a l - i z e d agencies f o r technology p o l i c y f o r m u l a t i o n , ex tens ion s e r v i c e s , research i n s t i t u t e s and cen t res aimed a t s t i m u l a t i n g a d a p t a t i o n and i n n o v a t i o n o f techno- l o g y . The p lans a l s o s t r e s s t h e need f o r i n s t i t u t i o n a l i n t e r a c t i o n between p u b l i c and p r i v a t e sec to rs so t h a t t h e r e can be an e f f e c t i v e l i n k between t h e n a t i o n a l p r o d u c t i v e systems i n each coun t ry and n a t i o n a l p o l i c y makers.

A11 i n a l l , t h e p lans a im a t s t i m u l a t i n g endogenous t e c h n o l o g i c a l development and i n t h e a d a p t a t i o n and a s s i m i l a t i o n o f f o r e i g n technology t o make them more a p p r o p r i a t e t o l o c a l c o n d i t i o n s . Unanimously, too, i s t h e u l t i m a t e o b j e c t i v e o f these p lans, namely t o make sc ience and technology an ins t rument through which s o c i a l w e l f a r e i n these c o u n t r i e s i s improved. The q u e s t i o n i s . . . I s t h i s n o t f a m i l i a r t o us? Produc t i ve a c t i v i t y , i t i s n o r m a l l y he ld , w i l l u l t i m a t e l y tend t o b r i n g about an inc rease i n t h e bundle o f goods and s e r v i c e s which i s l i k e l y t o b e n e f i t t h e human popu la t ion .

A t a l e s s a b s t r a c t l e v e l , development p lans have always h e l d t h a t t h e l o n g run goal i s t o b r i n g about an improvement i n the human c o n d i t i o n i n such c o u n t r i e s .

The p o i n t o f the. m a t t e r i s t h a t l i t t l e can be expected i f g r o s s l y unequal access t o resources p e r s i s t s i n such c o u n t r i e s . T h i s i n t u r n i s governed by the soc io - economic base o f t h e economies concerned. Bu t i t c o u l d be argued t h a t techno- l o g y c o u l d p r o v i d e an avenue through which the " s o c i a l s i d e " o f t h e development problem c o u l d be t a c k l e d i n p a r t .

F o r example, severa l researchers i n t h e area o f development have drawn a t t e n t i o n t o the i n c r e a s i n g i n e q u a l i t i e s between "haves" and "haves n o t " i n s p i t e o f spec- t a c u l a r l y h i g h growth r a t e s induced by modern technology. For example, B r a z i l and Venezuela. The i n t r o d u c t i o n o f l o c a l technology i n t o t h e equa t ion , f o r i ns tance , i s no guarantee t h a t t h e "haves n o t " can inc rease t h e i r development p rospec ts . I t i s t h e r e f o r e a source o f s u r p r i s e t h a t t h e technology p lans con- cerned have f a i l e d t o p r o v i d e any meaningfu l scope through which sc ience and technology can b r i n g about r e a l improvements i n t h e q u a l i t y o f l i f e o f t h e masses. F o r example, l i t t l e p r o v i s i o n i s made f o r g rass - roo ts t ype technology i n v o l v i n g peasants and o t h e r smal l s c a l e producers. A11 t h i n g s b e i n g equal , i t i s l i k e l y t h a t power fu l en t repreneurs i n such c o u n t r i e s w i l l b e n e f i t as a r e s u l t o f a t tempts t o c r e a t e a new dimension o f i m p o r t s u b s t i t u t i o n - techno logy . l m s i s l i k e l y t o s e t i n t r a i n a l o c a l l y p r o p e l l e d dynamic o f uneven development i n terms o f p roduc ing c lasses i n such c o u n t r i e s . I n s i t u t a t i o n s where p o v e r t y does n o t always mean l a b o u r i n g c lasses , i t would seem t h a t a necessary concern i s t h e pover ty-prone groups i n r e s p e c t i v e s o c i a l c l a s s e s .

It c o u l d be argued i n t h i s sense t h e r e f o r e t h a t g rass - roo ts t y p e techno logy i s a necessary complement t o l o c a l t e c h n o l o g i c a l development e f f o r t s s i n c e i t spreads t h e c o u n t r y ' s t e c h n o l o g i c a l development possi b i 1 i t i e s f u r t h e r and there - f o r e represen ts an a t t e m p t t o u t i l i z e resources more f u l l y .

Fur ther , the p lans f a i l t o o f f e r any s o c i a l framework through which t h e masses engaged i n p r o d u c t i v e p u r s u i t s can themselves be a c t i v e agents o f t e c h n o l o g i c a l development by i n t r o d u c i n g t h e i r " l e a r n i n g by do ing" economies i n t o t h e process o f endogenous t e c h n o l o g i c a l development. Th is i s another f e a t u r e o f human development i n many T h i r d World c o u n t r i e s which remains untapped. Also, techno- l o g y i s a p p l i e d i n a s o c i a l c o n t e x t o f work. Because o f t h i s i t i s necessary t o ensure t h a t t h e e f f e c t s o f such technology a re i n harmony w i t h the needs o f such workers. I f t h i s i s n o t the case, e f f i c i e n c i e s a r e wasted and the s o c i a l balance o f technology i n development i s d i s t o r t e d .

A p a r t f rom these cons idera t ions , t h e use o f technology by producer groups i s n o t w h o l l y mechanical as i s assumed. I f l o c a l technology i s produced i n s t e a d o f f o r e i g n ones, t h e r e i s no guarantee t h a t such technology w i l l be used i n s t e a d . Hence t h e re levance o f a development i d e o l o g y which a s s i s t s i n c r e a t i n g t h e psycho log ica l and c u l t u r a l c l i m a t e f o r t h e acceptance o f such technology as a v i t a l t o o l f o r development.

These are s u r e l y incomple te cons idera t ions b u t they c e r t a i n l y p o i n t t o some o f t h e dangers o f an undue economis t i c i n t e r p r e t a t i o n o f technology by p o l i c y makers concerned w i t h technology p l a n n i n g . Th is remains so even though we b e l i e v e t h a t t h e p lans r e p r e s e n t i m p o r t a n t f i r s t s teps i n t a c k l i n g some o f t h e hard-core problems f a c i n g T h i r d World c o u n t r i e s i n harnessing sc ience and technology f o r development. I t i s however somewhat naTve t o b e l i e v e t h a t t h e problem i s s imp ly one o f adap t ing f o r e i g n technology, b a r g a i n i n g f o r b e t t e r terms o f technology t r a n s f e r , and f o r t h e promot ion o f endogenous technology.

*/ Queen E l i z a b e t h House, Oxford, UK -

/IFDA SPECIAL UNCTAD V COVERAGE i he on-going discussion on the communication dimension of the New International rder underlines the v i r tua l monopoly of in t e rmt iona l information, even that o f

relevance to the Third World, by a feu transnational news agencies. As a odest e f f o r t t o provide an al ternat ive coverage re f l ec t ing a genuine Third World o i n t o f view on UNCTAD V held i n May a t Manila, IFDA, i n cooperation with IPS hird World News Agency, mailed or delivered t o some 130 permanent missions t o thi

senior UN o f f i c i a l s i n Both Geneva and N e u York, during the conference, a dai ly service reproducing the papers sent from Manila by Chakpavarthi

aghavan and the members of the IPS team of correspondents. 22 issues of t h i s i l y service were prepared, amounting t o some 220 pages.

he collect-ion of these 22 bu l l e t ins represent a rather unique view o f UNCTAD V , nd would cer tainly cons t i tu t e a useful reference for researchers and negotiators. ome recipients suggested ue assemble t h i s material i n book form. What we intend

t o do, more modestly, i s t o reproduce by o f f s e t the unedited bu l l e t ins as t e l e - typed from Manila. I h i s operation i s not unexpensive, and those in teres ted w i t i have t o share the o s t s . Cost for each copy, including airmail postage, w i l l be Swiss francs 100

September, copies w i l l be dispatched on receipt of a check I

FOOTNOTES / NOTAS

T h i r d World Forum News le t te r (June 1979, no 4 ) 54 pp. Free copies on reques t f rom TWF Resident Representat ive, c/o IFDA, Nyon.

Roy Pre is r 'e rk and Dominique P e r r o t , Ethnocentr ism and H i s t o r y (New York: E n g l i s h e d i t i o n , 1978, NOK Pub l i shers , 150 F i f t h Avenue, New York, N.Y. 10011, USA).

What k i n d o f knowledge do we have, i n t h e West, o f t h e c u l t u r e s o f A f r i c a , As ia and I n d i a n America? To what t ype o f a c t i o n does t h i s knowledge l e a d i n t h e r e l a t i o n s h i p between t h e i n d u s t r i a l i z e d and t h e s o - c a l l e d T h i r d World c o u n t r i e s ? The authors contend t h a t images o f o t h e r c u l t u r e s acqu i red a t an e a r l y age, o f t e n non-consciously , a r e d i s t o r t e d t o an e x t e n t t h a t most o f us may n o t have suspected. World h i s t o r y textbooks, used i n t h e schools o f a v a r i e t y of c o u n t r i e s , a r e among t h e p o s s i b l e sources o f e t h n o c e n t r i c d i s t o r s i o n o f o t h e r c u l t u r e s . The authors have s y s t e m a t i c a l l y s c r u t i n i z e d 30 volumes t o document t h e f u l l scope o f d i s t o r t e d images which a r e i n s t i l l e d i n t h e minds o f genera- t i o n s . The r e s u l t i s n o t a mere d e s c r i p t i o n o f commonly h e l d s te reo types , b u t t h e p r e s e n t a t i o n o f a broad spectrum o f c o g n i t i v e processes, o f i m p l i c i t va lue judgments, o f u n d e r l y i n g h y p o t h e t i c a l assumptions about t h e development o f mankind. A l l of these do n o t j u s t e x p l a i n t h e average knowledge t h a t " t h e man i n t h e s t r e e t " may have o f o t h e r c u l t u r e s and peoples. They a r e r e f l e c t e d i n t h e works o f academics and researchers who s tudy f o r e i g n c u l t u r e s a t a s c i e n t i f i c " l e v e l . They a l s o appear t o be t h e c o g n i t i v e founda t ions o f t h e a c t i o n o f government o f f i c i a l s , d ip lomats, development p lanners and exper ts , businessmen and t o u r i s t s , whenever they a r e faced w i t h c u l t u r a l d i f f e r e n c e s .

. Contemporary I n t e r n a t i o n a l R e l a t i o n s o f t h e Caribbean ( E d i t e d by B a s i l A. I n c e Pub l i shers , I n s t i t u t e o f I n t e r n a t i o n a l R e l a t i o n s , UWI, St . August ine, Trinidad/Tobago, West Ind ies , 1979).

There a re two s i g n i f i c a n t f e a t u r e s o f t h i s volume. The f i r s t i s t h a t a l l t h e a r t i c l e s a r e w r i t t e n by scho la rs ind igenous t o t h e r e g i o n and as such t h e y p resen t a Caribbean perspec t i ve . Among t h e c o n t r i b u t o r s a r e C l i v e Y. Thomas, Caribbean economist no ted f o r h i s work on Caribbean i n t e g r a t i o n ( w i t h Havelock Brewster) and t h e t r a n s f o r m a t i o n o f T h i r d World S ta tes f rom dependence; Locks ley Edmondson, known f o r h i s works i n t h e f i e l d o f race i n t h e i n t e r n a t i o n a l con tex t ; Vaughan Lewis, a l e a d i n g a n a l y s t o f t h e p o l i t i c a l aspects o f Caribbean i n t e - g r a t i o n , and Courtenay Blackman, Governor o f t h e C e n t r a l Bank o f Barbados, a s c h o l a r and p r a c t i t i o n e r o f economic development o f smal l n a t i o n s .

The second f e a t u r e o f t h e volume i s t h a t t h e m a t e r i a l i s contemporary and dea ls w i t h issues o f h e i g h t e n i n g importance i n t h e Caribbean and t h e T h i r d World. Among t h e key i ssues t r e a t e d a re : n a t i o n a l i z a t i o n o f m u l t i n a t i o n a l s ; r e g i o n a l economic i n t e g r a t i o n ; non-al ignment and o t h e r aspects o f l i nkages w i t h T h i r d Wor ld States; economic development; and t h e f o r e i g n p o l i c y processes o f sma l l new na t ions .

T h i s book i s d i v i d e d i n t o f o u r p a r t s : The Caribbean and The T h i r d U o r l d ;

M e t r o p o l i t a n T ies and In f luences ; p o l i t i c a l Processes and Fore ign P o l i c y and Economic Development and I n t e r a c t i o n .

. Cuadernos d e l CIFCA (CIFCA, Serrano 23, Madr id 1, Espana).

E l Centro I n t e r n a c i o n a l de Formation en C ienc ias Ambientales (CIFCA), una c reac ien comun d e l Gobierno de Espana d e l Programa de 1as Naciones Unidas para e l Medio Ambiente (PNUMA), se e s t a b l e c i o en Madr id en 1975. CIFCA ha o r - ganizado cursos y seminar ios en su sede de Madr id as7 como en d i s t i n t a s c a p i t a l e s la t inoamer icanas . Tambien d e c i d i 6 i n i c i a r l a publication de r e - su l tados de con fe renc ias y o t r o s m a t e r i a l e s re lac ionados con sus cursos, a f i n de que e l es fuerzo de c a p a c i t a c i o n que r e a l i z a tenga l a mayor d i f u s i o n y se puedan aprovechar sus resu l tados en todos 10s pa ises de habla espanbla. Los Cuadernos p o r e l CIFCA pub l i cados has ta l a fecha son 10s s i g u i e n t e s :

1. El CIFCA y l a formacion ambienta l . 2. Las evaluaciones de impacto arnbiental. 3. Evaluation economics d e l impacto ambienta l . 4. Tres casos de impacto ambienta l : Aeropuerto - Embalse con c e n t r a l h i d r o -

e l e c t r i c a - Vertedero de res idues . 5. Impacto ambienta l : R e f i n e r i a de p e t r o l e o . Fabr i ca de pasta de papel . 6. Impacto ambienta l de c e n t r a l e s nucleares. 7. Aguas subterraneas. Problemas generales de l a contamination. 8. La formacion ambienta l en America L a t i n a . 9. Una e x p e r i e n c i a de ecodesar ro l lo . E l caso de Santa Marta, Colombia.

10 y 11. E l medio f i s i c o y l a p l a n i f i c a c i o n , I y 11. 12. ContaminaciOn de aguas subterraneas: Modelos de s imu lac i6n . 13. Aguas subterraneas: Contamination urbana, i n d u s t r i a l y a g r i c o l a . 14. Aguas subterraneas: InyecciOn de aguas r e s i d u a l e s . ContaminaciOn minera

y r a d i o l 6 g i c a . Aspectos econ6micos e i n s t i t u c i o n a l e s . 15, 16, 17 y 18. La t e c n o l o g i a la t inoamer icana . Seminar io sobre nutrition y

v iv ienda , I, 11, 111 y IV.

. Jorge Wilheim, Another Development (Sao Paulo: 1978)

Dur ing h i s f o u r years i n o f f i c e as Secre ta ry f o r P lann ing o f t h e Sao Paulo S t a t e Government, Jo rge Wi lheim t r i e d t o app ly some o f t h e concepts p u t fo rward i n t h e Cocoyoc D e c l a r a t i o n and What Now. H i s own l i ke -minded v e r s i o n o f another development adapted t o t h e Braz-ntext has been summarized i n 14 p o i n t s and e l a b o r a t e d i n t w e l v e p u b l i c p r e s e n t a t i o n s , now pub l i shed i n a volume. The book makes an i n t e r e s t i n g read ing by t h e range o f problems r a i s e d , such as t h e importance o f non-convent ional energies, a l t e r n a t i v e s o l u t i o n s i n t h e rea lm o f urban i n f r a s t r u c t u r e , s e l f - h e l p housing, a l t e r n a t i v e s t o t h e p r i v a t e motor-car . These ideas, u s u a l l y presented i n meetings w i t h good coverage f rom mass media reached i m p o r t a n t s e c t o r s o f p u b l i c o p i n i o n and provoked f r u i t f u l debates. A more d i f f i c u l t problem t o assess i s how l a r g e has been t h e gap between t h e t h e o r y and p r a c t i c e . However, t h e ve ry f a c t t h a t some of t h e p r o p o s i t i o n s d iscussed i n t h i s book cou ld be t r a n s l a t e d i n t o concre te p r o j e c t s and p o l i c y dec is ions i s i n i t s e l f s i g n i f i c a n t .

. THE PARTICIPATORY RESEARCH PROJECT

Background and objec t ives : The Par t ic ipa tory Research Projec t of the Interna- t ional Council f o r Adult Education was formally i n i t i a t e d in September 1977. The projec t grew out of a common concern with l inking research t o ac t ion on one hand and with supporting approaches which st imulated and gave voice t o the ana- l y s i s and in t e rp re t a t i on of the exploited or oppressed on the o ther . The objectives of the projec t a r e :

- the support of a network of persons engaged in par t ic ipa tory research;

- t he i den t i f i ca t ion and dissemination of case s tud ie s and r e f l e c t i v e wri t ing re la ted to par t ic ipa tory research;

- the analys is of concrete experiences f o r the production of improved prac t ica l and theore t ica l mater ia ls .

Operational development: The projec t i s characterized by a decentralized approach. The cent re of the projec t i s s a id t o be in the v i l l ages and the workplaces of the world and not a central locat ion . Each region i s independent and has developed i t s work and s t y l e along the l i nes which f i t bes t within i t s p o l i t i c a l and cul tu- ra l r e a l i t i e s . A conscious e f f o r t has been made t o develop work which i s shared among equals engaged in s t ruggle which avoids dependency e i t h e r f i nanc ia l ly or through the imposition of ana ly t i c frameworks. Major decisions a f f ec t ing the overa l l projec t have been made by the regional coordinators working together . For convenience, ce r t a in communications functions have been delegated t o the co- ordi nator i n Toronto.

In ternat ional forum planned: In Apr i l , 1980, the Par t ic ipa tory Research Project wi l l bring together key case s tudies and r e f l ec t ive projec ts f o r an in ternat ional workshop a t which point the r e s u l t s of several yea r s ' communication and discus- s ion wi l l be brought together. The locat ion of t h i s workshop wi l l most l i k e l y be Yugoslavia with pa r t i c ipa t ion l imited t o key a c t i v i s t s in each region. Wide- spread dissemination in jargon-free language i s being planned.

Further information i s avai lable from Internat ional Council f o r Adult Education, 29 Prince Arthur Ave., Toronto, Ontario, Canada M5R 1B2.

. Marion Anderson, The Impact of Mili tary Spending on the Machinists Union (Washington, D.C. : In ternat ional Association of Machinists, 1300 Connecticut Ave. N.W., Washington, D . C . 20036; January 1977).

Since the ea r ly 1940s most Americans have believed tha t a high level of mi l i t a ry spending i s good f o r the economy. But, although the mi l i t a ry budget goes up every year and i s now a t the highest level in the h is tory of the USA, unemployment remains a t l eve l s of 6 o r 7% in both Republican and Democratic adminis t ra t ions . (The f igures f o r unemployment i n c i t i e s , among minor i t ies and among the young a re , of course, much higher) .

The impact of mi l i t a ry spending on the economy of the USA has recent ly come under intense sc ru t iny . This study comes t o the conclusion t h a t mi l i t a ry spend- ing keeps back r a the r than increases employment.

The repor t f i r s t shows the impact of t he mi l i t a ry budget upon employment nationwide. I t shows how many jobs are gained through mi l i t a ry contrac ts and s a l a r i e s and compared t h i s f i gu re with t he number of jobs which would have been created i f the tax funds going t o the defense department had stayed in t he taxpayers ' hands t o be spent on consumer goods.

The s tudy then analyses t h e impac t o f m i l i t a r y spending on employment on a s t a t e - b y - s t a t e b a s i s and f i n d s t h a t , as t h e m i l i t a r y budget goes up and p r o - curement c o n t r a c t s r i s e , jobs i n t h e m i l i t a r y i n d u s t r y s t e a d i l y d e c l i n e .

The r e p o r t concludes t h a t a n a t i o n ' s s e c u r i t y i s founded on i t s economic s t r e n g t h . The l a r g e sums which a re s iphoned o f f t o the Pentagon undermine t h i s s t r e n g t h and d i m i n i s h t h e c o u n t r y ' s s e c u r i t y ; t h e y render c i v i l i a n i n d u s t r i e s i n c o m p e t i t i v e i n the w o r l d marke t and l a r g e armies o f c i t i z e n s a re thrown o u t o f work. Jobs and j o b s e c u r i t y can be c rea ted , and the end o f i n f l a t i o n can be envisaged, when t h e s w o l l e n m i l i t a r y budget i s reduced and funds a re t r a n s - f e r r e d t o employment-creat ing a c t i v i t i e s i n t h e c i v i l i a n s e c t o r s .

Susan George, Feeding t h e Few: Corpora te C o n t r o l o f Food, Amsterdam: 1979) 79 pages, I n s t i t u t e f o r P o l i c y S tud ies .

(Wash i n g t o n -

The r e p l y t o t h i s q u e s t i o n g i v e n by Susan George i n h e r w e l l documented s tudy i s c a t e g o r i c a l : f o r h e r t h e NIEO c o u l d a lmos t s t a n d f o r t h e New I m p e r i a l i s t Economic Order , un less t h e T h i r d World c o u n t r i e s a r e a b l e t o use e f f i c i e n t l y t h e i r j o i n t b a r g a i n i n g power and t o develop s u b s t a n t i v e l y i n t r a - t r a d e among themselves. She shows t h a t guaranteed and s t a b l e p r i c e s f o r p r i m a r y p roduc ts m i g h t w e l l se rve Amer ica ' s needs. Wh i le Europe and Japan would pay t h e g r e a t e r share o f t h e c o s t s , t h e p r i c e s t a b i l i z a t i o n scheme would n o t p r e v e n t i n n o v a t i v e American c a p i t a l i sm f rom i n t r o d u c i n g a1 t e r n a t i v e s o l u t i o n s e x a c t l y t a i l o r e d t o i t s own needs. C a r g i l l has a l r e a d y i n v e n t e d a soy-bean-based choco la te s u b s t i t u t e , an a l t e r n a t i v e techno logy i s based on molasses; c o f f e e s u b s t i t u t e s may be based on b a r l e y , oa ts o r peanuts, w h i l e t h e 1974 i n c r e a s e i n sugar p r i c e s he lped t h e h i g h f r u c t o s e c o r n s y r u p t o e s t a b l i s h i t s e l f on t h e market . The book quotes examples o f s u b s t i t u t i o n s f o r severa l co re commodit ies.

The a u t h o r p o i n t s t o t h e f a c t t h a t t h e US i s pu rchas ing fewer and fewer c o r e commodit ies p r o p o r t i o n a l l y t o i t s t o t a l impor ts , b u t more and more l u x u r y f o o d f rom t h e T h i r d World, as p a r t o f a g r i b u s i n e s s s t r a t e g i e s . The b u l k o f h e r s tudy i s devoted t o exposing t h e n e g a t i v e impac t on t h e T h i r d Wor ld o f t h e t r a n s p l a n t a t i o n t h e r e o f t h e f o o d p r o d u c t i o n systems dev ised and r u n by a g r i b u s i n e s s TNCs. The r a t i o n a l e o f these systems i s a l r e a d y q u e s t i o n a b l e i n t h e American c o n t e x t :

"Americans a r e perhaps t h e o n l y peop le on e a r t h p r i v i l e g e d t o buy un- breakable, p e r f e c t l y c a l i b r a t e d , dehydrated, r e h y d r a t e d p a r a b o l i c p o t a t o c h i p s packed i n vacuum-sealed t e n n i s b a l l cans - a t dozens o f t imes t h e c o s t o f t h e o r i g i n a l , l o n g - f o r g o t t e n p o t a t o " . (p.30)

B u t when a g r i b u s i n e s s goes abroad, t h e r e s u l t s a r e even worse. The seed companies a r e sowing e c o l o g i c a l d i s a s t e r as t h e y reduce t h e w o r l d ' s g e n e t i c base. F r u i t s and vegetables a r e g e n e t i c a l l y s e l e c t e d f o r a d a p t a b i l i t y t o mechanica l h a r v e s t i n g , n o t t o n u t r i t i o n a l con ten t . The i n t r o d u c t i o n of h i g h techno logy f a n n i n g reduces s t i l l more t h e employment o p p o r t u n i t i e s , concen t ra tes l a n d h o l d i n g , reduces r e a l wages and provokes r u r a l m i g r a t i o n t o towns. Small farmers a r e be ing i n t e g r a t e d i n t o t h e system t o t h e e x t e n t t o which t h e y cons- t i t u t e p o t e n t i a l buyers o f i n p u t s u p p l i e s and t h a t t h e y engage t o pay f o r t h e i r purchases by s e l l i n g t h e i r produce t o a g r i b u s i n e s s . The Green R e v o l u t i o n has n o t as y e t c o n t r i b u t e d t o t h e b e t t e r m e n t o f s e l f - p r o v i s i o n i n g fa rm ing s e c t o r . The a g r i b u s i n e s s a r e o f t e n encouraging p r o d u c t i o n f o r e x p o r t s t o t h e d e t r i m e n t o f l o c a l s u p p l i e s o f food:

I n t h e agr ibus iness i n t e r n a t i o n a l economic o r d e r t h e r e i s every reason t h a t American c a t s take precedence over West A f r i c a n people, s i n c e t h e former can pay and t h e l a t t e r f r e q u e n t l y cannot".

The agr ibus iness dominat ion over p a r t s o f T h i r d World a g r i c u l t u r e c o n s i s t s i n c o n t r o l l i n g upstream and downstream p r o f i t - y i e l d i n g a c t i v i t i e s , w h i l e l e a v i n g t o t h e l o c a l farmer t h e r i s k s i n v o l v e d i n f o o d growing p r o j e c t .

" N e s t l e has become t h e w o r l d ' s second l a r g e s t food c o r p o r a t i o n w i t h o u t e v e r owning a s i n g l e cow o r a s i n g l e ac re o f c o f f e e o r cocoa bushes". (p.49)

I n t h e wake o f UNCTAD V Susan George's pamphlet makes a sober ing reading. I t reminds us o f t h e r e a l c o n f l i c t s o f i n t e r e s t s tand ing i n t h e way o f N I E O .

. B a l a i Seni Toyabungkah ( A r t Centre o f Toyabungkah)

E s t a b l i s h e d i n 1973 i n Toyabungkah, Lake Ba tu r , B a l i , t h e c e n t r e b r i n g s t o g e t h e r c r e a t i v e a r t i s t s , t h e o r e t i c i a n s o f a r t and c u l t u r e , Ba l inese , Indonesians as w e l l as f o r e i g n e r s t o d iscuss t h e problems o f a r t and c u l t u r e i n our t ime . I t i s e s s e n t i a l l y a c e n t r e of r e f l e c t i o n and c r e a t i o n and i s headed by P r o f . T a k d i r A l is jahbama. The c e n t r e a l s o pub l i shes a n e w s l e t t e r " A r t and The Fu tu re" .

F u r t h e r in fo rmat ion : c /o J a l a n Dr. Sahar jo 290, Tebet, J a k a r t a Selatan, Indonesia.

TOWARDS ANOTHER DEVELOPMENT I N SCIENCE AND TECHNOLOGY

This is the title of the latest issue of Development Dialogue, the journal of the Dag Hammarskjold Foundation. It includes the summary conclusions and some of the papers presented at a seminar on "The development of Third World autonomous capacity in science and tech- nology" organized in Uppsala in December by the Dag Hanunarskjold Foundation in cooperation with IFDA. This issue, which is a con- tribution to the United Nations Conference on Science and Technology for Development (Vienna, 20-31 August) could be obtained from the Dag Hammarskjold Foundation, 2 Ovre Slottsqatan, S-752 20 Uppsala, Sweden. The full table of content is the following:

. Science and Technology in the North-South Context: A Swedish Perspective by Hans Blix

. Towards Endogenous Science and Technology for Another Development by Francisco R. Sagasti

. Controlling Technology for Development by Ignacy Sachs

. Technological Bridgeheads for Self-Reliant Development by Ashok Parthasarathi

. Struggling for Self-Reliance in Science and Technology: The Peruvian Case - ITINTEC by Isaias Flit

. India's Efforts to Build an Autonomous Capacity in Science and Technology for Development by Ashok Parthasarathi

. Summary Conclusions

. Pugwash Guidelines for International Scientific Cooperation for Development

alien images colonize your thoughts tarnish your sight shackle your tongue make y o u self a bu sive dis true tive rise rage release dai k phantoms of your being t o ancient rituals dance d r u m in your head t o liberate your thoughts purify your sight unshackle your tongue &' make you frecccec/man

-- *I by Orlando Wong, from the book ca l led "Echo", Sangsters Bookstore l imi ted , -

11.1.