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Published online by Cambridge University Press: 11 November 2008
There has been an extended discussion in universities, governments, and international organisations throughout the post-war years of the potential and the means for increasing the flow of private long-term capital into the under-developed areas. This flow has been intended to ease the immediate constraints, principally those of capital and foreign exchange, upon development in these areas. Yet, in 1966, private foreign investment in the under-developed areas fell by 12 per cent, and by an absolute amount greater than the increase in official aid. This investment is, in any case, highly concentrated in a very few under-developed countries. Since 1964, income payments on earlier private investments have probably exceeded the total inflow of private capital which the developing areas have received.1 What prospects exist for gaining more private capital for the use of the under-developed world?
Page 17 note 1 The Economist (London), 26 08 1967, p. 737.Google Scholar
Page 18 note 1 See, for instance, Grubel, H. G. and Scott, A. D., ‘The International Flow of Human Capital’, in The American Econom c Review (Menasha, Wisconsin), LVI, 2, 05 1966.Google Scholar
Page 19 note 1 Maddison, Angus, Foreign Skills and Technical Assistance in Economic Development (Paris, O.E.C.D., 1965), p. 40.Google Scholar
Page 20 note 1 Kamarck, Andrew M., The Economics of African Development (New York, 1967), p. 72.Google Scholar
Page 20 note 2 Ibid. pp. 198–9.
Page 21 note 1 This suggestion was recently made by Paul Streeten, ‘New Approaches to Private Overseas Investment for Development’, a paper prepared for the October 1967 conference at Bellagio.
Page 22 note 1 I was recently approached by the ‘economist’ for an American consulting firm preparing a road feasibility study who was visiting Tanzania for just long enough to line up someone who would send him in America, for a low wage, some general data on the area through which the road is to run, on the basis of which he plans to write his report. His activities contribute nothing to the stock of human capital in Tanzania, extract heavy payments, and do not, because of his short stay, even provide much tourist revenue (which is a possible justification for some of our otherwise unhelpful ‘expert’ visitors).
