Organization for economic cooperation and development; Partnership for Progress, Introduction

Partnership for progress. The story of economic growth. Past. Present and Future. Under the Organization for Economic Cooperation and Development. This special background report on this presented by the National Association of educational broadcasters. Now you're now a writer and producer. The radio network's Washington analyst John Lewis. The report you are about to hear concerns an organization to which you belong. One in which you and I have a big stake. Gentlemen this is it. Meeting she did. I'm sure. The first option of a gender on the menu commands on the agenda. No comments. The agenda is to prove. The second point. You may never have heard of the OEC but you are one of the half billion

citizens of the free world who may proudly claim membership within its ranks as an American taxpayer you have had a vital part in helping to create a CD which is now nearly 14 years old though its name and your active participation in the Partnership for progress began less than a month ago. It all began one June day back in one thousand forty seven on the campus of Harvard University. At that time the economy of Europe was in desperate straits despite post-war reconstruction assistance from the United States and Canada. Recovery of that war torn continent across the Atlantic had been so severely hampered by the inadequacy of financial reserves rebuilding was pitifully slow

in most areas negligible and others overall production of goods and services in Western Europe was still 7 percent below pre-war levels. Population however was 8 percent greater coal and steel recovery lags far behind the impetus to economic rebirth from the ruins of the century's Second Great War was elusive at Harvard that spring day the speaker was George Catlett Marshall general of the Army is now retired. He offered a comment that was to become the nucleus of a plan to require the rehabilitation of your. Life. But probably. You know the. European economy. What. Are you really going to.

Require me to proceed to a western Europe that sought no charity but desperately needed financial help. General Marshall offered a message of hope. On June 27 three weeks after that address the then British foreign secretary Ernest Bevan and French foreign minister George B doe called a three power meeting with Soviet Russia in Paris. The three countries agreed that additional assistance from the U.S. would be helpful but the Soviets quite willing to take aid demurred at accepting the US condition of European cooperation for self-help cooperative recovery was not in the Russian scheme of things to come and they withdrew from the conference. France and Britain persisted. One thousand forty seven was a harsh year on the continent. The winter had been severe draining limited fuel supplies and agricultural production was down 25 percent from the pre-war per capita level. Europe's dwindling financial

reserves were near exhaustion and the United Kingdom which had borrowed heavily from the US and Canada to facilitate initial postwar recuperating was approaching bankruptcy. The two Western powers called a continental conference on European Economic Cooperation. When the meeting date of July 12th one thousand forty seven arrived only Western European countries showed up. But those who participated sincerely hope the rest of Europe would soon join them. A committee was named to study Europe's recovery needs and this committee was then charged with the responsibility of reporting its findings to Washington with an outline of economic demands anticipated over the four year period of one thousand forty eight to fifty two. Western Europe asked the United States for 19 billion dollars. We studied the proposition representative Christian Herter of Massachusetts later to become secretary of state in the Eisenhower administration led a delegation of his congressional colleagues abroad to check the requests.

He returned with a favorable report when all the evidence was in. We countered with an acceptable offer calling for expenditures of between 12 and 17 billion dollars for the four years. The Marshall Plan thus became effective in April 1948. The plan and the money to finance it were to cover a lot of ground. The challenge was stupendous from the beginning of World War to the year 1939 Western European countries alone had sustained the loss of four million dwellings a quarter of a million railroad cars 8 million gross tons of shipping. Not to mention the disrupted trade and domestic economies staggered by the adjustment from war to peace.

When the US approved the Marshall Plan the leaders of Europe's desperate millions wasted no time. Agreement was reached readily and rapidly on the establishment of a permanent organization for European Economic Cooperation. A permanent forum of consultation where the rule of unanimity prevailed. That was see a method for exchanging information that would permit member countries to advise one another frankly and to mutual advantage was established at the top of the sea was a ministerial council the Council's first chairman was Belgium's Paul Henri Spock the vehicle for cooperation was thus established. The funds were made available. Europe's economy moved slowly but

certainly into high gear for the big drive toward economic advancement and stability. In these first years of rebirth and rebuilding American aid was instrumental in financing essential import needs accelerating investment and reconstruction from one thousand forty seven thousand nine hundred fifty our aid it financed one fourth of Europe's total imports of goods and services almost two thirds of its merchandise imports from the dollar area helping to strengthen Europe's hand was the U.S. proviso that the yearly recommendations for allocations of Marshall Aid to individual countries would have to come from the OEC. Now in fact as well as name the organization for European economic cooperation since each country had special burdens and special demands and since unanimous agreement had to be reached on any recommendations the stamina and determination of Western Europe was revealed most eloquently by its

ability to make such recommendations harmoniously. The Partnership for progress was functioning. Progress picked up momentum but was given a sharp setback in the middle of 1050 war erupted in Korea. New stresses were placed on raw material reserves new demands were made on available capital shipping had to be conserved for the long trek to the Pacific Theater of hostilities. Consumption of goods and services again had to be restricted. The equilibrium which had been achieved by Western Europe in terms of world trade was severely threatened. At this critical moment the newly formed European payments Union came into being

pooling resources and credit facilities in the name of all participating countries for the benefit of any member country. First to realize the value of the payments Union was the newest member of OPEC the Federal Republic of Germany. Germany won special credit extension when the outset of the Korean struggle taxed Germany's payments balance to the limit. At the same time the other European countries stepped up their purchases of German goods. The impact of the Korean war on Europe's economy was thus minimized. That was a turning point and from that time forward the organization gave particular attention to harmonizing economic policies in order to promote balanced growth in 1051 and acceleration in the growth rate necessary to meet domestic civilian needs as well as the demands of world security. Was ordered for the next five years to raise the gross product of OPEC member countries by 25 percent in 1052 a recession that swept much of the world slowed this ambitious

effort. There were other stumbling blocks. Manpower was limited. Consumer demand seemed to be slackening financial resources were strained in many areas. But despite the setbacks OPEC s program only narrowly missed achieving its objectives. Cold and Welling construction missed by a modest margin. Gross national product in five years climbed 24 percent when the Korean Armistice brought a leveling off of defense expenditures consumer demand rose mightily and was quickly followed by a private investment boom. The OEC agreed no new five year goals were required but they anticipated the expansion that was to come in road building motor car construction plant equipment replacement and continued expansion of investment opportunities. The big area of emphasis for OPEC member countries in the 1955 1960 period was in the expansion of educational facilities. Economic recovery was a fact. Under

Secretary of State for economic affairs George Ball put it this way. The United States is going longer the single towering Mt. Everest of nations the one great economic power among powers which have been badly broken by the war. We are. Only from an economic point of view. The largest giant. Among free world of Jarman's. Whereas in nineteen forty seven we were in a position where what the United States did and its own domestic policies. Had a great effect on the rest of the world and what the rest of the world did that had little effect on the United States. Today this is all changing. Today we're in a position where what each of us does has a great effect on the other. And the result is that we now must recognize as you have recognized and as we recognize a new situation of interdependence By 1960 the population of the OEC countries had jumped from one thousand

forty eight. Three hundred million to three hundred twenty six million. The production index for all industries had risen from the low point of 68 in one thousand forty eight to one hundred fifty five in 1960. Biggest growth was in chemicals followed closely by expansion of the textile metal products and basic metal industries. Electricity output increased two and a half times in the 12 years. Crude petroleum output rose seven times primary aluminum production increased four fold and so did the production of commercial vehicles while passenger cars were nine times greater in number in 1960 than they were in 1948. Home construction increased in 1960 at a rate two and a half times greater than in 48 Europe in modern dress had been reborn through a partnership for progress. The biggest accomplishments of the organization for European Economic Cooperation had been

one the establishment of the European payments Union which was able to settle by compensation alone 70 percent of the 46 billion dollars it was called upon to settle during eight and a half years of existence when at the end of 1958 the major European currencies became externally convertible the EPU is replaced by the European monetary agreement. Secondly the OEC succeeded in the progressive abolition of quantitative restrictions or quotas on goods passing between European member countries and thirdly the OEC had set up the European productivity agency and the European Nuclear Energy Agency together with a training programme for developing scientific and technical personnel. Most Americans are quite aware today that Europe is thriving. Marshall Plan aid ceased in 1952. Ever since Europe's economic leadership has been dynamic. Six of the member states in OEC have established a supra national organization of their own generally described as the Common Market. The common

market is not to be confused with the OEC for the inner six market countries have actually delegated executive legislative and judicial authority to a commission OEC coordinates the planning research and development of Western Europe without infringing on the governmental organization of some 20 member countries. Now with the advent of the 1960s the OEC has given birth to a new and greater organization and concept. On September 30th of this year 0 E.C. gave way to the Organization for Economic Cooperation and Development North America the original source of financial strength that led to the founding of European cooperation in economic matters has been taken into the fold. The reference to Europe as a specific entity has been dropped from the organization's title. The United States and Canada are full fledged members CDs secretary general Dr. Thorkild Christensen explains the reasons for this reorganization.

It is important to have this organized nation of all the Western industrialized countries. It is not an instrument of the ko rule. It is because of the rapidly growing into a dependence of economical highly developed country. Because of this into dependence we must work closely together regarding our own economic policy and regarding aid to countries in the process of development especially in our relations with these come to it is important that organizations of those European new £20 to come to and because Europe and North America both the law is markets of the less developed countries whose supply of capital. It could be said that

the organization responsibilities in Paris earlier this year President John F. Kennedy ratified the Senate approved US participation in the CD with these words. All of the power relationships in the world have changed in the last 15 years and therefore our policies must take these changes into account. First is the change in Europe itself. In the 1940s Europe. Much of it was destroyed. Its productive capacity liquidated divided by a bitter war inflation rampant. And only those who were optimists of the most extreme sought. Would have ever predicted the astonishing renaissance of Western Europe today. Its people have energy and confidence. Its economic growth rate is higher

than that of the new world. I the Canada are the United States. Its dollar shortages have been converted into balances. Which have even disturbed the monetary stability of the United States. Additional comments were offered by the US secretary of the Treasury Douglas Dillon. The United States looks forward with Keenan to supply the privilege of joining together with Kaun the European friends as full and equal partners in this new and historic step toward closer cooperation. Our economies are becoming increasingly into the close economic cooperation between our countries have become essential. The roll call for economic cooperation has thus expanded in numbers and in the direction of effort. You and I are members of this greatest of international organizations applying to the Western world. Who else Austrians

Belgians Canadians Danes Frenchmen Germans Greeks Icelanders the Irish Italians Dutchman and Luxembourg there's Norwegians and Swedes Spaniards and Portuguese. The Swiss the Turks and the British and as observers the Yugoslavs This is the community of nations which we have now joined in the Partnership for progress a partnership which enumerates these objectives to achieve the highest substantial economic growth and employment and a rising standard of living in member countries while maintaining financial stability and thus to contribute to the development of the world economy to contribute to sound economic expansion in member as well as non member countries in the process of economic development and to contribute to the expansion of world trade on a multi lateral nondiscriminatory basis in accordance with international obligations.

It is fitting therefore that 14 years after General Marshall enunciated the basic concept of the Marshall Plan the first conference of this new Organization for Economic Cooperation and Development a regional organization with a world wide responsibilities should be held in the capital of Bowie CDs newest member. This October at the Brookings Institution in Washington OEC team members gathered to discuss their new goals for themselves and for their neighbors throughout the world. They conducted a policy conference on economic growth and investment in education with US European and Canadian members agree that education should be the key factor in future economic growth. The experience in these advanced countries is one thing the improvements that must be made here and abroad are another.

The special needs of the underdeveloped countries require additional immediate attention. As Dr. Christensen explains that an instrument of economic growth will be. This is true of our country of educated technicians and our expert skilled people and on the part of parents for having more education for their children. But it is even more for the less developed countries. In fact it can be questioned when on more knowledge would not be the most efficient means of promoting more rapid growth in the newly emerging countries. They could certainly have a much

higher standard of living if they were able now to exploit the techniques that we have that have been developed by modern science and by practical experiment. The tech cannot do that because in many cases only a small fraction of the population and in many cases have practically no education at home. Therefore it is not enough to provide markets for the product and to supply capital for investment. Indeed it may be even more important to share the knowledge with for all the moment people. Indeed our final goal here is a very

wide gap between the economics of the Western world and those less developed countries and in a dangerous way. The only way of providing for mankind in fact to reduce and this means that we should help the less developed countries to grow economically. We should help them to grow faster than we are growing ourselves because this is the only way in which the gap can be reduced. I wonder whether this has ever in history been Polish government but it surely must be the country today. It would be intolerable from a human point of view if there were a

crime left behind in a state of great. Now there's one other thing about it that I would like to explain. The character of this conference to provide more education means that we have to look. If there is to be more education in 1970 or 1980 we must now begin to build schools and universities. We must also provide training teachers over grades and it takes many to educate qualified experts for industry and agriculture so much more show that you must train the teachers who are to be experts. We have for the moment a great shortage of

teachers in the western world. We did not 20 years ago think enough of the need. What we have to do now. Therefore one of the purposes of this conference will be to discuss the needs of the future in order to know how much we must invest in school buildings and in the brains of teachers and so on. It didn't have to buy confronted by such challenges has now met conferred and reported in subsequent broadcasts you will hear the highlights of that conference. You show here what your Organization for Economic Cooperation and Development is say planning doing in this partnership for

progress. You have been listening to Partnership for progress a documentary report on

the Organization for Economic Cooperation and Development Partnership for progress was produced and narrated by John F.. Lewis for the National Association of educational broadcasters and was distributed through the facilities of the NSA he be ready on that work. Copies of this broadcast are available from the Washington office of the National Association of educational broadcasters. Dupont Circle building Washington D.C. This is the Radio Network.