Organization for economic cooperation and development; Partnership for progress, part 1

The plan and the money to finance it or 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 in 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 EEC 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 1952 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 CS program only narrowly missed achieving its objectives. Cold and dwelling 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 the world of giants. 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 changed.

Today we're in a position where what each of us does has a great effect on me other. Than the result is that. We now must recognize as you will recognize and as we recognize a new situation of interdependence By 1960 the population of the country said jump. 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 forty six 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 intersex 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 OEP sea 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 cruel rule. It is because of the rapidly growing inter dependence of economic and highly developed countries because of this interdependent. We must act now if New took regarding

economic bonuses and we got two countries in the process of development. There's been no relations with these come to us it is important that this organization the European New Moon and the need to come to and because Europe and North America move the law is markets of the best developed country and not just supply of capital. It could be said that the Soviet Union organized nation but responsibilities in Paris earlier this year. President John F. Kennedy ratified the Senate approved U.S. participation in the 0 ECD 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. Either Canada or 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 keen and close a potion for the privilege of joining together with Canada and our European friends as

full and equal partners in this new and historic step toward closer cooperation. Our economies are becoming increasingly interdependent and close economic cooperation between our countries has 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 abstention 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 the 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 knowledge as an instrument of economic growth will be. This is true. Our country has great technicians and skilled people

and great parents for having more education for their children. But it is even more for the less developed countries can be questioned when on more knowledge would not be the most efficient means of promoting and more rapid growth in the newly emerging countries. They could certainly have much 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 large groups have practically no education at all. There is not enough

market for the product to supply a capital investment. Indeed it may be even more important to share the knowledge with for the moment the less favored people. Indeed our final goal here is a very wide gap between the economics of the Western world and most developed countries. And this gap is widening in a dangerous way. The only way of providing for mankind is in fact to reduce and this means that you 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 in history been government that it should be the country today. It would be intolerable from a human point of view if we were left behind in a state. Now there is one further thing about education that I would like to explain the conference to provide more education means that we have more education in 1970. We must now begin to build schools.

We must also provide training teachers. And it takes many qualified experts for culture so much more to show that you must train teachers to be experts. We have for the moment a great show to teachers. When. Confronted by such challenges conferred and

reported in subsequent broadcasts you will hear the highlights of that conference here. What your Organization for Economic Cooperation and Development Planning doing in this partnership for progress. I'm her heir. Own

hoe for. The first. 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 N.A. ready on network 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.