78-04-A7
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Two Worlds [Foreign Aid, World Bank]
TranscriptMost Americans are aware that they continue to support foreign aid through A.I.D.--the State Department's Agency for International Development. And, while many think it is unnecessarily wasteful, there is a generous side to the American native which keeps him from rising up and saying, "enough already". But few Americans are aware that A.I.D. is only one hole in a sieve. Our money goes through a dozen agencies of the United Nations and such financial institutions as the World Bank, International Monetary fund, Inter-American Bank and the Asian Development Bank. Congressman Charles Thone from Nebraska has called attention to the fact that even the liberal Brooking institution--citing the inefficiencies of A.I.D.--has called for its abolition. The administration in Washington, however, has proposed an increase in A.I.D.'s spending and the hiring of more staff all around the world. But let's take a look at the world inhabited by those who work and earn in those international financial institutions we support with tax dollars. World bank salaries are 30 to 40 per cent higher than those in comparable jobs in the federal government. In addition to which the bank provides lavish fringe benefits: payment for family travel and restaurant tabs (possibly even for three martini lunches). The administration proposes increased funding for the World Bank . The International Monetary fund has its own country club in Washington, says Congressman Thone, and its average salary (including pay for clubs and janitors) is $43,000 a year. On top of that employees can borrow from the World Bank at four per cent interest. By contrast, some of the money provided to foreign nations to help the poor is loaned by governments of some of those nations to their own citizens at 17 per cent interest. Now the "world" those World Bank and International Monetary Fund employees live in is very real to them, I'm sure, but only because they can't see over their own horizon to the world where the providers of their good life dwell. In that world--the one you and I live in, the federal treasury last year took for its purposes 70 per cent of all funds in the security investments market. The figure goes up if you add local and state borrowing. This virtual monopoly on available capital has left little money for the kind of investment that creates jobs in business and industry. Interest rates are forced up for individual borrowers and small businesses. Then, individuals with savings accounts in banks and savings and loan associations withdraw this money to get the higher yield available on U. S. Treasury bills. Banks alone reported a one month outflow of $75 million. Mortgage money will be harder to come by--which could affect the construction industry. In the meantime the number of federal employees increased by more than 52,000 in the first 10 months of 1977. Which world do you live in? This is Ronald Reagan. Thanks for listening. |
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