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17 - May 1981



In September 1981, France invited the "low income countries" to UNESCO, in an attempt to find a solution to their acute problems. On this subject, it is useful to review a proposal respecting the monetary problems.

The International Monetary Fund creates units of Special Drawing Rights (S.D.R.s) distributed among three branches, allotted to member countries in proportion to their quotas, so that the developing countries, whose quotas are small, only receive a reduced allocation.

The allotment of S.D.R.s for development answers a wish many times expressed by Third World countries and constantly turned down by industrial countries, apposed to the supranational, political power that the agency entrusted to apportion them would be endowed with.

A proposal which avoids this difficulty was published in the September 1979 issue of "Forum for Development", an international United Nations magazine. A French economist, who died recently, Charles WARIN, a graduate of the French Polytechnic Institute, suggested that S.D.R.s created by the International Money Fund be channeled to the World Bank so they may be used for provision of interest bonuses, on long term loans for rural development.

Those loans would provide for numerous, miscellaneous enterprises, on village or small towns scale, which would be undertaken following the needs of the people themselves and mostly with the help of local labor and local means : digging wells, sewage, road building, soil improvement, building of schools, maternity wards, silos, repairing-shops, etc..

With the help of world Bank executives sent to the location who would look over the cost and execution of these projects, the World Bank loans would be used, step by step, as each program is being achieved, not above its cost, therefore in accordance to the ability of the country receiving the loan to a self-supporting position.






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