By I. M. D. Little

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United States aid is, among that of Western donors, the most completely tied. S. procurement: in West Africa, the lower figure of 80 per cent seems to prevail, but this anomaly is probably transitional. A. is also experimenting with opening dollar credit lines to the value of the local cost component of the projects it supports—the counterpart funds being available to meet such local costs. A. A. A. will not insist on such imports being additional to normal imports. , the latter may, to some extent, succeed in channelling the additional imports, which arise indirectly from local currency expenditure, towards itself.

Donors struggle so hard to supply goods themselves that it is not surprising that recipients come to believe that it is a benefit rather than a sacrifice to them. Sometimes, indeed, this is the case. Nevertheless, J . A . Hobson's theory of economic imperialism has more credence in Africa than it deserves. 2. S. 's extremely " s o f t " loans at nominal interest rates with repayment over 40-50 years, and the Eastern loans at 21 per cent with repayment up to 20 years, all the way to short-term loans at around 6 per cent.

1. Project versus Plan A i d : the End-uses of Aid Recipient countries have been encouraged by the donors to produce Economic Plans. e. the set of coherent projects and other expenditures— to these problems and ends, and explain in detail the need for external assistance. Ideally, the donors would study the Plan closely; consider the urgency of the problems; the appropriateness of the means; the extent to which the country was doing its best to help itself; and finally, no doubt, its political importance and the nature and outlook of its government: then, in consultation with each other, they would decide what level of support to promise to that country over the Plan period; if they wanted to give aid for specific projects, 35 AID TO AFRICA whether for commercial reasons or the better to tie their aid, they would pick them from the Plan, which they would interfere with as little as possible.

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