Journal Issue

Letters to the Editor

International Monetary Fund. External Relations Dept.
Published Date:
March 1976
  • ShareShare
Show Summary Details

What is development?

The articles in the September 1975 issue of Finance & Development attempt to spotlight current economic problems from the point of view of the writers in this issue.

The division of the world into “developed” and “developing” needs certain clarification especially in the context of the rich culture and historical background of almost all the countries of the “developing” category.

It would appear that the term developed could be used to refer to those countries which have developed the fine art of exploiting the resources of the developing countries through the operation of multinational corporations and purchasing rings in the developed countries.

In this context the term developing country could be used to indicate those countries which are beginning to understand and control the various methods used by the developed countries to exploit the resources of the developing countries.

The crisis at the moment is to save the standard of living of the so-called developed countries at a time when all the developing countries have realized the magnitude of the exploitation. This realization was brought about very forcibly by the OPEC group when they revised the oil prices and obtained a major flow of funds.

The suggestion that the developed countries should contribute 1 per cent of their GNP to help the developing countries should be modified to bridge the trade deficit arising from … the different rates of growth of the index of import prices paid by developing countries for their imports from the developed countries and the index of export prices received by these countries for their exports from the developed countries.

The extent of the disparity could be gauged from the trade statistics maintained by any of the United Nations organizations.

A more equitable method would be to equate the currencies of each country at par on a given date….

Within developing countries the transfer of resources from those who have to those who need is being hampered by the tight control that the foreign lending institutions have on the lending policies of their domestic counterparts, thereby keeping the developing countries in a perpetual state of development….

Lionel F. W. Donnaiah Colombo, Sri Lanka

Food-fertility link

The article “Population: exploring the food-fertility link” in the December 1975 issue of Finance & Development brought back recollections of the first agricultural loan by the World Bank to India in the late forties, to reclaim huge areas infested by Kans grass in Madhya Pradesh and in Madhya Bharat, for wheat cultivation. End-use supervision of this loan indicated that while the yields anticipated were reached, the quantities marketed fell well below expectations. An observant statistician in the office responsible for the preparation of end-use reports in India noticed, however, that in the areas concerned the natality rate had begun to fall noticeably as soon as wheat production began to increase. In our unscientific way, we merely described the event as: people with full bellies go to sleep earlier.

Benjamin P. Spiro Lausanne, Switzerland

Argentine position

I am writing in regard to the map published on the cover of Volume 12, Number 1 (March 1975) of your journal, in which the Falkland and South Georgia Islands appear as “developed countries.”

May I point out that this qualification is not consistent with the Argentine Republic’s sovereign rights over those archipelagoes, which are not “countries” but rather integral parts of Argentine territory, administratively dependent on the National Territory of Tierra del Fuego, the Antarctic and South Atlantic Islands and illegally occupied by the United Kingdom.

In particular, in regard to the Falkland Islands it should be stressed that the United Nations, through Resolutions 2065 (XX) and 3160 (XXVII), has invited the Governments of the Argentine Republic and of Great Britain to initiate negotiations, which are now under way, to solve the dispute over sovereignty over the Islands.

Rafael M. Vázquez

Ambassador of the Argentine Republic Washington, D. C.

Articles on tourism

A few definitive articles on international tourism and its role in the Third World would, perhaps, be useful. The last I recall was by H. David Davis, whom I met on one of his assignments.

Cedric S. Senaratna Mount Lavinia, Sri Lanka

Thank you for the suggestion. We will bear it in mind for future issues of Finance & Development.

Letters to the Editor should be addressed to the Editor, Finance & Development, IMF Building, Washington, D.C., 20431. Please be brief. The Editor reserves the right to edit letters for reasons of space and clarity.


Over 100 countries report balance of payments statistics to the IMF which are presented in standard format in the Fund’s Balance of Payments Yearbook, together with explanatory notes. In order to make data available without delay, the Yearbook is issued in monthly parts as a loose-leaf book.

Volume 27, covering 1967-74 will be completed in late 1976, and will then be made available as a bound volume. Subscribers to the loose-leaf volume also receive provisional figures going beyond 1974.

Price of each volume

Loose leaf $7.50

Bound volume $6.00

Binder for loose-leaf sections $3.50

Special rates for universities.

For orders or details write to

The Secretary, International Monetary Fund, Washington, D.C, 20431, U.S.A.

IMF Survey

The IMF Survey is published by the International Monetary Fund twice each month except December, when a single issue is published. Editions are also published in French (Bulletin du FMI) and Spanish (Boletin del FMI). The IMF Survey is distributed by fastest available mail. Private firms and individuals are charged for delivery at an annual rate of US$5.00 in Canada, Mexico, and the United States; US$10.00 in Central and South America; and US$12.00 in all other areas. Apply for subscriptions to The Secretary, International Monetary Fund, Washington, D.C. 20431, U.S.A.

Agreements reached by the Interim Committee in Jamaica in January provide for new policies for the use of Fund resources, disposition of a portion of the Fund’s gold, establishment of a trust fund to assist developing countries, consideration of higher quotas in an enlarged IMF, and the first steps toward a reformed international monetary system. These subjects will provide the main focus of the IMF Survey in the months ahead. New developments will be reported as they occur, and then followed up with fuller explanations, providing a chronicle of the evolution of the international monetary system.


Providing comparable data for 115 countries with topical coverage including

Exchange Rates

International Reserves

External Trade


Money and Credit

Government Finance

National Accounts

is available both in book form and machine readable tape.

The subscription price for twelve monthly issues of IFS is $20; single issues may be purchased at $2 each. Reduced subscription rates for university libraries, faculty members, and students are given in the inside cover of current issues of IFS.

The IFS tape subscription offers long time series with, depending upon availability, annual entries from 1948, quarterly entries from 1957, and monthly entries from 1964. IFS tape subscriptions provide 12 tapes a year simultaneously with the availability of the book edition. Each tape is complete and replaces its predecessors. See inside cover of International Financial Statistics for further details. Price: $1,000 a year, but universities may subscribe for $300 a year.

Tape subscriptions in the same format are also available at the same prices for the Fund’s other statistical publications: the Balance of Payments Yearbook and Direction of Trade.

Write to The Secretary, International Monetary Fund, Washington, D.C. 20431, U.S.A.

From the World Bank and The Johns Hopkins University Press

Patterns of Development 1950-1970, by Hollis Chenery and Moises Syrquin. Cloth ISBN 0-19-920075-0, £4.50 ($14.50); paper ISBN 0-19-920076-9, £1.50 ($5.00); xvi + 234 pp.; technical and statistical appendixes; index.

Intercountry comparisons play an essential part in understanding the processes of economic development and in the formulation of development policy. Many analyses have been made previously in many fields, but they have been difficult to combine since they have used different methods and data bases. By treating the material within a uniform econometric framework, this book is able to provide a consistent picture of the development process as a whole, to describe a number of interrelated types of structural change, and to identify systematic differences in development patterns among countries following different strategies.

Economy-Wide Models and Development Planning, edited by Charles R. Blitzer, Peter B. Clark, and Lance Taylor. Cloth ISBN 0-19-920073-4, £8.50 ($23.75); paper ISBN 0-19-920074-2, £3.75 ($10.25); xiii + 369 pp.; index.

This volume surveys a large number of economy-wide models built in recent years for application in developing countries, and it discusses their value in relation to the costs of construction. The emphasis is on multisector models that focus on medium- and long-run economic problems. Some chapters deal with the planning process, including the relations among researchers, planners, and policymakers; some are devoted to outstanding methodological issues; some discuss such specific economic problems as foreign trade, employment, project evaluation, and intersectoral consistency.

Again available, in second (revised) printing, Redistribution with Growth, by Hollis Chenery, Montek S. Ahluwalia, C.L.G. Bell, John H. Duloy, and Richard Jolly. Paper (only) ISBN 0-19-920070-X, £2.50 ($6.50).

The World Bank Catalog lists all publications of the World Bank and is available without charge to individuals and institutions having a serious interest in economic and social development. Address requests to: Publications Office, The World Bank, Washington, D.C. 20433, U.S.A., or to the World Bank European Office, 66, avenue d’lèna, 75116 Paris, France.

From the World Bank and The Johns Hopkins University Press


Size Distribution of Income: A Compilation of Data, compiled by Shail Jain. Paper (only) ISBN 0-8018-1831-1, $5.75 (£3.75), xv + 137 pp.; index and bibliography. Income distribution data from 81 countries in a standard format that allows direct comparisons among the results, with a uniform set of inequality indexes.

World Bank Country Economic Reports published during 1975

Kenya: Into the Second Decade. Cloth ISBN 0-8018-1754-4, $18.50 (£10.15); paper ISBN 0-8018-1755-2, $6.95 (£3.50), 7 × 10. xiv + 533 pp.; 6 maps; 6 technical appendixes; agricultural sector survey.

Lesotho: A Development Challenge. Paper (only) ISBN 0-8018-1833-8, $4.75 (£3.10), 8½ x 11. xx + 98 pp.; 1 map; statistical appendixes.

Turkey: Prospects and Problems of an Expanding Economy. Paper (only) ISBN 0-8018-1837-0, $15.00 (£9.75), xxiii + 476 pp.; 4 maps; technical and statistical appendixes.

Yugoslavia: Development with Decentralization. Cloth ISBN 0-8018-1702-1, $18.50 (£8.80); paper ISBN 0-8018-1715-3, $8.50 (£4.25); xiv + 490 pp.; 1 map; appendixes, glossary, and index.

All World Bank Country Economic Reports are now distributed solely by The Johns Hopkins University Press, Baltimore, Maryland 21218, U.S.A.

Other Resources Citing This Publication