v l e n n a , B h a d r a 28, 1883.
September ,19,. 1967.
4
The f o l l o w i ~ i ~s t h e , t e x t of t h e speech made. by,
-
S h r i Rl'orarji 2. Desai, P i n m c e 8 I i n i s t e r of I n d i a , a t t h e
annual meetln6 of t h e doard of Governors of the
'i
I n t e r n a t i o a a l Bask f o r aecons t r k c t i o n and Development:
I would: w i s h t o a s s o c i a t e my Governme~~t,
nly
'
d e l e d a t i o n a c i rnyself w i t h t h e deeg sellae of l o ~ s
recol'dcd by t h i s Assembly t i l i s m o r n i n s i n t h e t r a g i c
d e a t h o f Dag Hmmarul.;jiild.
i3e
was indeed a man
dedicated to h i s t-hsk; o u t s t a l d i nI g ' ~ x o r 1 gh i s many
v i r t u e s was h i s t r a i s p a r e n t honr3%ty o f purpose m d
immense cvuragep and ho d i c d , a s he l i v e d , i n t ~ ~ e
g r e a t cause of klu~riGi$.j and peace.
We a r e u s e d t o
3
good r e c o r d o f perfornl&ce'b"y
I
But
t h e B m k whicli i t h z s k e p t uy d u r i n b i n e y e j r .
t h i s y e c r t s $c:;sions ii,tve
.
-
i2 Q ~ L = ' C ~ Ls iLg~x i f i c r n c ' i ;
i n tlict
,
we b ~ v ciscl'c~i~c
U S t h e f i r s t r e p o r t u f ISfLE The Bank
1
'
'
has.,
inah
27 l s a l ~ ti o ' i n d i a .ag.
8r e , a t i n ~
million.
lad%;
v;nich
Tiic
I
1.
"
$GOO-'->
*f
I
;tnr
happy ti, say, work? w i d e r
.
.
t h e same ,olilc 6ircutj.cn ;ild n=nz.E,elllent as tho Bank, h a s
\
a l s o .coi;iiicni.cd
\
4
U ~ B ~ L - G ~ O ILIT?
IS 2
s i g ~ i f ' i c m tS
C ~ Bby
s u g p l 2 ~ 1 c ; n t ~ rmy u ccmplementzry,
two i n s - t i Lu'ii.cns ,re
xnd I ~ r nSL~R
th-t w i l i l ? t l l z I D A w i l l prcjfit g r e u t l y
frum tile ~ x ; . . ~ r i i n c;nci
e e x k ~ r t i s~ ~; tfh e B z n k r I b e l i e v e
u l s c t h ~ tt h c 2 ~ t t e r nc f l a n d n g m G t h z terms GIID' A
o p e r ~ t i c i ;..,s
~ tiiay i;re emerging are p ~ i n t e k sto t h e
d i r e c t i ~ nof f u r t h s r ~ d v ~ n bjc e t h e Bmk i t s e l f .
8vi.r s i n c s 'the c i m p l e t i o n cf t h e p o s t ~ a rr e c o n s t r u c t i c n p h z s s o f i t s wcxk, t u e S m k hzs been c b n c c n t r a t i n g
a t t e n t i o n on prcbloms c f ec,noiilic devslopmznt.
The
c o n t r i b u t i o n i t h ~ ril~cle
s
t c w ~ r d st h e s b l u t i b n ~f t h e s e
problems, b o t h t h r c u g n f i n - r c i z l
,ssistance a d
t e c h n i c a l a d v i c e , lias baen i ~ ~ p r o s s i v;ea d h ~ es v ~ k e d
well-deserved p r a i s e .
I
2r;l
h ~ p p yt o sdy t h ~ tire
t
Bulk
i
has bodn i n c l c s e t;uca
tr;rLugrivut n - i t h t h e p r ~ b l e m s .
1
-z
a d p r o g r e s s of .development i n ng c ~ u n s r y ,and t h e sane
is'tme, I
s
i
s u r e , cf' c t h , r dvvelcpin,
Sccn sf t ~ C!L.J
r l a s t ddlnu,l
Bzak h a s s c n t ~ u ~t t z m
F i v e Yecr P l a n ,
1'v:;o
vf
c c u n t r i a s a s well.
t i n e i n kasi?ingtcn, t h c
e x p u t s t o study c u r t h i r d
The t ~ m
prc,i;uct?d
2
well-stuitied m d
a b l y ~ r ~ s ~ i i - di.cunznt,
tcd
and sir.cG tnen e x p e r t s i n
d i f f e r e n t f i c l d s f r ~ mtt?;i B z n k hzve been v i s i t i n g I n i i s '
with thc object cf
assist in^ i n t h e seldc-+ion ~f p r j ~c c t s
f ~ Bmk
r
mil I D A u s s i s t m c e .
2
Tie Bvik h;s
a l s o pl-ged
c r u c i z i s c l c i n thi; c ~ n p ~ r t i u nr e! e~ t i n e s t h d t i t h,,s
c o n v s n ~ dkc; 2,ssist I n d i ~ P~ lsd s ~ t In iiiust
~
t z k e tliis
-
o p p c r t i u l i t y ti, s2y ncw wo i n Indi,. c & k r G c i G t zLb i l e 1c.r~Ccrs h i p m d c x p c r t i b o I,rd~vid.i.d i n -chis ccnnoctic;fi by t h e
2 r e s i d e n t cf t h e i j a k . u l i ~ B
. l a c k , by Sir fiillim Lliff
Our c x p ~ renci:
i
i n t . ~s ~r+,,;rd
i
unique,
i s, I &m s u r e 9 not
IYly f c l l c w Gcvkxnors w i \ ~ ~ 1u 2n d ~ u b t e d l ' y endorse
Finsnce Minis t e r f s speech
-
contd ,
t h e s t a t e m e n t - i n t h e n n n u ~ lReport cf the Bank t h z t
It
the
a c t i v i t i ~ s :of t h e Bank were p a r t o f e'brondenirlg s t r e m
o f f i n z n c i d md t e c h n i c d l a s s i s t a n c e
t c.-l
the l e s s
developed c o u n t r i e s i t a n d t h ~ "t f u - r t h z r p r o g r e s s was
-
#.
made w i t h o t h e r i n t e r n a t i b n a l i n i t i a t i v e s
tc/
increzsc;
t h e flow of Cevelopmeilt f m ~ as d ti, c ~ t . , r t l i n ~ et ef f c r t o
I
t c assi s t e c d o m i c developmcnt.
e
There i:>t o d ~ ~fya r g r e ~ t c rr e c ~ g nti
i oli t!.lm.
-econcmic ~ e v c l o p x i s n tand t h z ~ s p o n s i b i lti
i ~ ; s.;nil
clbli@tic,ns cf i n d . u s t r j . a l l y aCvaiced cc,untr.i 3s i n t h i s
c0ntex.t; t h i s i s cvidan.ced, if cviilence be neerled, by t h e
v e r y c o n s t r u c t i v e snd c l o s e l y r-onst.n'~rispeech we'he:~rG t h i s
m"rning f ' r o i i ~ cur c c l l e a ~ u e , tile Govcrnor for. t h e UniteC
S t a t e s , I need hardlly s t r e s s t h e p ~ i n tt h a t t h e majcr bnnntmd..
prirn;ry r c s y o n s i b i l i t y bf t h e t.2sl.i~cjf develo.prncnt, i n terms
of t h c f c;rmu-lstion of p r o g r m s , t h e i r execu t i e n and t h e i r
f i x a n c i n e :..].st- Tall cjn t h e deve.l.opin5 cou-ntries t h c ~ ~ z s c l v e @ ,
This i s ? ~ l o i i l n t i c , But;, t h o need a ~ scGpe
d
fur intcm~tiio~iL
c c o p e r e t i c n i n ,:this f i e l d a r e very v a s t and i-ivary e f f c r t h e s
t o be m ~ d et c , s t r e n b t h e n . (wlC e n l d r g e t h i s c o o p e r a t i c n i n the.
i n t e r ~ s - l - of'
s sJc;zble i!.:iii e x p m d i n s w o r l d grc s p e r i ty ,
M r . 31~:clr, c u r p r e n l i ~diplcma'~
~~
1;f
eci/n~rnicdevclopr~zent
h z s , i n h i s .t;h~.i~g;;h%--pri~v~king
~?,uL;.T'c?ss
'to hs ~ r l i siliolnill;o;,
ref 3r:red :;i. c Vi:!ry irni-jortcn-t, csccc-l c;i' t h i s c;ioperztion; vJith
t n r ? t.ccc.;n.':: 2ccc.v.r;:r:!
t f thi; 13,: !rl.il si.;:.cc t h e -w,r
with the
- .
r,,p;i 1 i3~~~i:f,,L
G.- :I 1~r_.,~.?.s.tri~1Izzd
c(icnt12iz s 11~ad
? POs s i b l c by
e
n , i
c a b 2-r~l-icnz,~c ; > ! : ; ) i t ~
3 si sucli ~ C beccine
S
m ~ y ee 2 L ~ . l o-J.,;
,..>.. ~ :-. , '.,.e,
LI
,it; +lie s~,ms;;ln.e, i.n developing
cc untri G s ~vi,i
c+ll
2 t o c._~-t;=l?
u.7~
r v:i t!l drrcL,7.a of griw'tli, t h e
nc?r d :c\l n,w ,911.. .,T':,r.i2itn c , t ~ . i t - . lh;s c.usst.r*.i.ppedt h e gri;vv.th of
debt fin,,iic.iii,:, c:.,.p,i.ci~,y ~oils.ii.;'c:,i?d i r i c';r~O S ~ I ~ ~ ; G O XS C I I S G ~ VJC
L r 5 .; L ; ~ , ti,
~ L C r : -+:...-, :j, -;l.,,, c -.-; i ~s 2n
~
cw;?ker?intr, i;~, triis problem i n
. - . .
,:l';-i~-~.;jl..!l,s
c ~ . L , ~ J ~ ?;:- ~ Lr2'fid
.~
hope tllc,t l o z ~ l l sc;n t e r n s fzr l e s s
c
.
OnEriu.;, s
;.!o'. c'~i.ilv~nti01l:~1
v f i l l b e f v r e l c n g beccr.!~: t h c r u l e .
~ ~ ~ - t ; t.~;;i!~
~ l c ; =tn; ::xc c :Jt i a n i n ilit e m a t n cjnal c r o d i ts.
I t ~ V L U ~-i;i.,ke
G
ne tooi'cr ?bfi.eld i f I wem2e t o expouni
t h i s t:1e-22 cf nc.v, ti, s t r o n g t h e n and enlarGc? t h e flow 02
c a p i t s 1 i'rc~:. t h e x c r e devel.oi2ed t o t h e less ciuvolopcd
~ ( j l ~ ~ l t ~Y3u9
i c s!Vir.
~ C'hAimai, hzve air,e,dy d e a l t v!itli t h i s
m_;ttV2rac;i;iii.;:bly i n y ~ u opening
r
a d d r e s s . Bd-t, while I m
'
.
.
~
T
..
T
i . . 2 7 ~
-
J'
.
0
L' ,
.I
L\.JL
on t h i s
...,
_-
ZYna~ceV ; ~ i s ' i ~'S
? r speech- contg.
------..-.-*----I----_
- 4
-
on this s u b j e c t , X should l i k e t o mention a p o i n t o r t w o
r e g i r d i n g t h e f h r t h e r l i n e s o f advance by t h e B s k and t h e
I might p e r h s s t a k e t h e l a t t e r f i r s t , The 1. D.A*
1,D.A.
I
has been designed t o fill a gap i n i n t e r n a t i o n a l finance
which t h e I B R D o r Che o t h e r e x i s t i n g i n s t i t u t i o n s wuLd n o t
f i l l , It takes up hhat a r e cryptic&l.l;y but n o t c p i t e h a p p i l y
c a l l e d n o n - b a ~ k s b l e p m j e c t s. L E A c r e d i t s a r e f r e e o f i n t e r e s t
and a r e repayable o v e r a mu&
l o n g e r p e r i o d t h m t h e Bank
These c r e d i t s have many o-i;her h e l p f i l f e a t u r e s , on
which 1 need n o t dwell at t h e p r e s e n t moment, The 1 L'A, as
1 s a i d e a r l i e r , has made a good beginnir,g, but no one could
p o s s i b l y f a i l t o n c t e t h a t t h e r e s o u r c e s a% i t s d i s p o s a l a r e
much t o o inadequate i n r e l a t i o n t o needs. I t h i n k it i s
clear t'naJ; t h e s e r e s o u r c e s v & l l need t o be s u b ~ t ~ t i a l l y
t h e was7s and m e a s of doing so explored b e f o r e
enlarged,
l o n g i f th2.s fiew i n s t i t u t i o n i s t o be m-a5isd t o prove e q u d t o
t h e tasks
j_-5k(qa
t o ~ f l d e f i ~ k eT, h i s p o i 2 t 52s been r a i s e d
by Mr. Blac!: t,>is norning a d I aa sure t h a t Governors
convened h e r e vJj.13- g i v e due tnought t o i t ,
P i s bring me t o a n o t h e r observation a d this
one r e l a t e s t o t h f i I n t e r n & t i o n $ L B a k e I have spoken already
.of the
t i se.
r.z'-.-:.??e E2.2k h a s played i n a s & s t i . n g development
and I: shou1l;. ,1:'~: th,$ <he Bmk w i l l Inerf2;lbly be c a l l e d upon
Zn t h z zon?'_~.~
j.2al.s
p l a an e v a more 7,$tajl and onemus
'-.Q
parC, Etli all t h t -r- . -.--'cJ
n r r e s s t h a t has becn made, t h e underdcveloj1:td wr:l G, c;:
-:(-J
M r , Chairm2n p o i n t e d out y e s t e r d a ,
i s stii.1 sr* ti?-(-?
,.r~xe~.:c~ld,
some p a r t s o f it only barely
an6 ias?.:s;*e.?-jr so, aLd it vd.11, f o r several years, t o come,
need
1nox-s
I+,i s ,
-.
J.
b o t h by
' ~ ffi n a n c e a d , of technical. know-how,
think., irn>o&=t
i n t h i s conte:G t o s t r e s s t h e
'
t r u l y i n t en2ational. c h a r a c t e r of t h e Bulk, A Biunber o f
new agencies have r e c e n t l y been s e t up by t h e i n d u s t f i d i s e d
-Finance
Minis tsr r s s ~ e e c h- contd _,
- 5 c o u n t r i e s with a view t o c o o r d i n a t i n g t h e i r a i d e f f o r t , Such
i n s t i t u t i o n s , 7hi-le u s e f u l and i m p o r t z n t , a r e by t h e i r v e r y
n a t u r e l i m i t e d i n terms o f s t r u c t u r e a s well a s functions,
The I n t e r n a t i o n a l sank h a s both i n i n t e n t a d i n o p e r a t i o n
p r o g r e s s e d on a w i d e r b a s i s , and i t i s n o t , i f I may s u s o ,
by some odd chance o r by any c o n s i d e r a t i o n s o f economy i n
words t h a t it h a s c-ome t o b e known a s t h e World Bank, It
f o l l o w s from t h i s
-- n m e l y ,
-- :nd t h i s
is' t h e p o i n t
I wish t o emphasise
t h a t t h e Bank h a s t o s t r i v e , c o n s c i o u s l y and
d e l i b e r a t e l y t o e n s u r e t h a t it g e t s on i t s t h i n k i n g t h e
-
f u l l impact o f t h e n e e d s and experierice o f a l l c o u n t r i e s ,
especially of those t h a t are i n t h e early stages of
development.
Thc Board o f Ekecukive D i r e c t o r s , I know, h a s
t h i s a s p e c t of-.the Bank1 s work and r o l e c o n s t a n t l y i n view.
There i s , dl t h e same, :leed f c r s t r e n g t h e n i n g t h e r e 1
p r e s e n t a t i o n of t h e l e s s developed c o u n t r i e s at t h e h i g h e r
s t a f f l e v e l s i n t h e Bank, The l e s s developed c o u n t r i e s ,
it h a s been recognized, a r e s h o r t o f t e c h n i c a l p e r s o n n e l
'
and t h e y h a v e t o draw i n - L Ct h e i r own s e r v i c e a l l t h e
p e r s o n n e l t h e y hatre and more, 1 r e d i z e t h a t t h e Bank's
e f f o r t t o s e c u r e more adequate geographi c a l r e p r e s e n t a t i o n
on i t s st;&,
e s p e c i d 1 . y a t high $olizy-making o r p o l i c y -
assessment l e v e l s i s b e i n g i n h i b i t e d by t h e p a u c i t y o f
7
.
p e r s o n n e l t h a t t h e l e s s developed c o u n t r i e s can make
a v a i l a b l e , Neverthe&ess, I t h i n k i t i s i m p o r t a n t t h a t
t h i s should remain t h e d i r e c t i o n o f o u r e f f o r t , and
I b e l i e v e t h a t t h e l e s s developed c o u n t r i e s s h o u l d t r y
and make t h e r i g h t t y p e of p e r s o n n e l a v a i l a b l e f o r employment
i n t h o B a ~ kon
2
b a s i s , i f n e c e s s a r y , o f l i m i t e d assignment
p e r i o d s r ~ t h e rt h 3 n i n t c r m s o f a p e m a n e n t t r a n s f e r of
s e r v i c e s , t o work hfith Lhc Bank and b r i n g t h e r e s u l t s o f t h e i r
e x p s z i w u - ~ ~ ~ 3 - - t r B=krs
q ~ ~t h itn khi n g .
I ri~ed....
Finance Ministsrfs speech
-
contd.
- 6 -
I n e e d h a r d l y dilatc on t h e tasks before t h e Bylk
and t h e I D A . Ths P r c s i d o n t , K r .
Black, h a s i n h i s a d d r ~ s s
t h i s noming done t h i s task s p l m d i d l y a d d t h kis usual
imaginative and yot p r a c t i c a l i d ~ a l i s m . The o p e r a t i o n s
o f t h e Bank r e q u i r e a combination o f sound banking
practice wiZh forward-looking i d o a l i m d i c h is necessary
t o prorriotc developmznt. Basically t h e o b j e c t i v e s o f t h e Bank and
t h e I D A are t h e sane an3 i t would be surprising if t h e
Bmk, with i t s growing resources a d cxpcricncc, does n o t
Zind it possible, and i n d e e d necessary to adopt some
o f t h e t c d ~ n i q u u so f i t s o k s p r i n g ; .
The scope as well as
t h e terns of t h 2 Bank's o p e r a t i o n s have evolved In relation
to i.ts accepted objectives and they will, I am s u r e , be
a d a p t e d further t o t h s needs o f t h s situation i n the
li@to f experience,
I s h o u l d like at t h i s stage t o s a a b r i e f word
on t h e p r o b l m s o f my country. We havt? completed t w o
five
Year P l a n s and
we have launched t h i s y e a r o u r
t h i r d Plan. We envisage
a
investmmt p r o g r m e
phi&
a i l c modest i n ri?lation t o o u r n e e d c i s , L belivt?,
capable o f t a k i n g t h e dconomy s i - g n i f i c a n t l y forward
towards its goal. of r e a s o n a b l e z t m d a r d . o f l i f &
for
our p e o p l e viLthin a f o r e s e e a b l e f i t u r c , I n e v i t a b l y
i t would e n t a i l t h e fulles+u m o b i l i s a t i o n o f *domestic
resoarces. The Plan h a s a s u b s t m t i d f o r e i g n exchange
component, and t h e general import needs of t h e
economy a r e r i s i n g as development proceads. There i s
t h u s need f o r s e a r i n g an aaaquate f l o w of external
capit a1 into t h e c o ~ n t r y . I am happy t h a t a l a r g e
number o f l n d u s t r i a l i s e d c o u n t r i e s represented
h e r s have a l r e a d y promised assist;apce f o r t h e first
two years ol" t h e Plan, and I: a2 g l a d .t;o f i n d t h a t .
t h c r c is i n c r e a s i n g r e c o g n i t i o n of the need to provide
....
fin~tnce,
Finance
-
Minister 's s p e e c h - contd.
f i n a n c e on a b a s i s t h a t would a s s u r e t h e r i g h t t i m i n g and
s u f f i c i e n t advance on p l a n s a s well a s t o provide terms
of repayment t h z t do not burdm t h e short-term balance
of payments unduly. I n this context, m,zy I express my
thanks t o t h s P r e s i d e n t o f t h e Bank and Governors o f
t h e s e c o u n t r i e s h e r o f o r t h e c o o p e r a t i o n and a s s i s t a n c e
t h e y have cxtendaci. I w i l l not e n t e r i n t o a discussion,
fashionable axoizg exports, as t o t h e concept o f t h e
t a k e - o f f a i d how near I n d i a i s t o i t , But it docs seem
t o me that t h e g a i n s o f t h e p a s t few y e a r s have becn
consid2rable, even i f not specGacular, and every
consideration, economic a s well as s o c i d , p o i n t s t o
t h e need f o r all a c c c l c r a t i o n o f t h e pace o f advance,
I have o v c q hope t h a t a v e n t h e requisite e f f o r t on o u r
om p a r t
-- md wc
do not propose t o s t i n t i n t h i s r e g a r d
-- and corltinucd goodwill
and. coopeeation from f r i e n d l y
count r i c s abroad, we s h d l succeed.
Before I conclude, may 1 t a k e t h i s opportunity
-
of expressing, on b e h d f of t h o Governmefit o f I n d i a and
on my own, o u r c o r d i d t h a n k s t o t h c P r e s i d e n t and
Government of t h e l-icpublic o f Austria f o r t h e i r warm
hospitcilil;y. The P r ~ s i d c n to f t h e Republic h a s given
,l
fill of s a g a c i t y and wisdom,
u s m i n ~ . u g u r ~ address
I n t h e fcw d a s t h a t I have b - e ~h e r e I have been
deeply i m p r ~ s s c dby t h e chams o f Vienna and t h c
friendliness o f i t s p.r?oplc. Thesc: conferences we
h o l d o u t s i d e Washingtoll onca every t h r e e y e a r s
make, I am s u r b , a v d u s b l c c o n t r i b u t i o n t o o u r
undcrst *ding
and appreci &ion o f t h e problems facing
t h e various m~mbr3r countries t h a t form t h i s d i s t i n guished i n t c r n a t i o n d fra'cernity,
find1y.e..
,
Finance Ministar's s p e n c h
-
8
- contd,
-
F i n e l l y I wish t o j o i n you i n y o u r
expression of wclcomc to o u r n;w nmbors, i r l c l u d i n g
o u r good ndignbour, 11i";ep21,I wish a l s o t o r e c o r d
our w p r e c i a t i o n o f t h c excellent work done by
Mr. Gamer
both on tlzo-Bmk ~ 2 on
d t h e IFG. His
mantle is t o fall on Mr. b s m , t h e Executive ViceP r e s i d e r t , and I ex+,ellci t o him my good wishes,
PKR: BS:POOL