Institution Building Through Technical Assistance—Old Values and New Techniques

ECONOMISTS are divided on the issue as to whether it is in the 6verall interest of the developed nations to assist the developing nations in their economic development. Those who overemphasize the political and ideological motivations for development assistance argue that such assistance cannot be justified on pure economic considerations for the simple reason that it would be illogical for the developed nations to help build up the strength of their future competitors. Others argue that the market-creating effects of economic development far outweigh its market destroying effect, and development on a global basis will, in the long run, benefit not only the developing nations but also the developed world.1 Irrespective of whether economic justification exists or not, the pattern and flow of economic assistance during recent years indicate that bilateral assistance programmes have close linkages with various non-economic factors, and political, sociological and ideological considerations influence, to a fair extent, the pattern and scope of the assistance. It is to be noted that, in order to enable the developing nations to achieve their economic objectives, a considerable measure of international cooperation is essential. The developing nations are, therefore, often faced with the difficult decision as to whether the much needed economic assistance having political and ideological overtones may be accepted or not. The race between different interest groups to woo the developing nations often improves their barg~ining position but, on the whole, they find themselves at a disadvantage. A factor that tends to make the situation more difficult is that politicai and economic independence in the emerging nations usually grow along parallel paths and the growing awareness of their political rights and privileges coupled with distrust due to past colonial experiences, generates strong internal pressures against any form of tied external assistance. The developing nations have, thus, to formulate their policy on external assistance in the context of these conflicting and diverse factors.