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The Industrialization of the World

Many Americans are prone to think of the industrialization of the newlydeveloped countries as a modern form of American noblesse, undertaken sacrificially for the benefit of others. On the contrary, the task of world industrialization, of eliminating the disparity between have and have-not nations, is as important as any issue facing America. The colonial revolution signals the end of an era for the old Western powers and a time of new beginnings for most of the people of the earth. In the course of these upheavals, many problems will emerge: American policies must be revised or accelerated in several ways.

1. The United States' principal goal should be creating a world where hunger, poverty, disease, ignorance, violence, and exploitation are replaced as central features by abundance, reason, love, and international cooperation. To many this will seem the product of juvenile hallucination: but we insist it is a more realistic goal than is a world of nuclear stalemate. Some will say this is a hope beyond all bounds: but is far better to us to have positive vision than a "hard headed" resignation. Some will sympathize, but claim it is impossible: if so, then, we, not Fate, are the responsible ones, for we have the means at our disposal. We should not give up the attempt for fear of failure.
2. We should undertake here and now a fifty-year effort to prepare for all nations the conditions of industrialization. Even with far more capital and skill than we now import to emerging areas, serious prophets expect that two generations will pass before accelerating industrialism is a worldwide act. The needs are numerous: every nation must build an adequate intrastructure (transportation, communication, land resources, waterways) for future industrial growth; there must be industries suited to the rapid development of differing raw materials and other resources; education must begin on a continuing basis for everyone in the society, especially including engineering and technical training; technical assistance from outside sources must be adequate to meet present and long-term needs; atomic power plants must spring up to make electrical energy available. With America's idle productive capacity, it is possible to begin this process immediately without changing our military allocations. This might catalyze a "peace race" since it would demand a response of such magnitude from the Soviet Union that arms spending and "coexistence" spending would become strenuous, perhaps impossible, for the Soviets to carry on simultaneously.
3. We should not depend significantly on private enterprise to do the job. Many important projects will not be profitable enough to entice the investment of private capital. The total amount required is far beyond the resources of corporate and philanthropic concerns. The new nations are suspicious, legitimately, of foreign enterprises dominating their national life. World industrialization is too huge an undertaking to be formulated or carried out by private interests. Foreign economic assistance is a national problem, requiring long range planning, integration with other domestic and foreign policies, and considerable public debate and analysis. Therefore the Federal government should have primary responsibility in this area.
4. We should not lock the development process into the Cold War: we should view it as a way of ending that conflict. When President Kennedy declared that we must aid those who need aid because it is right, he was unimpeachably correct -- now principle must become practice. We should reverse the trend of aiding corrupt anti-communist regimes. To support dictators like Diem while trying to destroy ones like Castro will only enforce international cynicism about American "principle", and is bound to lead to even more authoritarian revolutions, especially in Latin America where we did not even consider foreign aid until Castro had challenged the status quo. We should end the distinction between communist hunger and anti-communist hunger. To feed only anticommunists is to directly fatten men like Boun Oum, to incur the wrath of real democrats, and to distort our own sense of human values. We must cease seeing development in terms of communism and capitalism. To fight communism by capitalism in the newly-developing areas is to fundamentally misunderstand the international hatred of imperialism and colonialism and to confuse and needs of 19th century industrial America with those of contemporary nations.

Quite fortunately, we are edging away from the Dullesian "either-or" foreign policy ultimatum towards an uneasy acceptance of neutralism and nonalignment. If we really desire the end of the Cold War, we should now welcome nonalignment -- that is, the creation of whole blocs of nations concerned with growth and with independently trying to break out of the Cold War apparatus.

Finally, while seeking disarmament as the genuine deterrent, we should shift from financial support of military regimes to support of national development. Real security cannot be gained by propping up military defenses, but only through the hastening of political stability, economic growth, greater social welfare, improved education. Military aid is temporary in nature, a "shoring up" measure that only postpones crisis. In addition, it tends to divert the allocations of the nation being defended to supplementary military spending (Pakistan's budget is 70% oriented to defense measures). Sometimes it actually creates crisis situations, as in Latin America where we have contributed to the growth of national armies which are opposed generally to sweeping democratization. Finally, if we are really generous, it is harder for corrupt governments to exploit unfairly economic aid -- especially if it is to plentiful that rulers cannot blame the absence of real reforms on anything but their own power lusts.

5. America should show its commitment to democratic institutions not by withdrawing support from undemocratic regimes, but by making domestic democracy exemplary. Worldwide amusement, cynicism and hatred toward the United States as a democracy is not simply a communist propaganda trick, but an objectively justifiable phenomenon. If respect for democracy is to be international, then the significance of democracy must emanate from America shores, not from the "soft sell" of the United States Information Agency.

6. America should agree that public utilities, railroads, mines, and plantations, and other basic economic institutions should be in the control of national, not foreign, agencies. The destiny of any country should be determined by its nationals, not by outsiders with economic interests within. We should encourage our investors to turn over their foreign holdings (or at least 50% of the stock) to the national governments of the countries involved.

7. Foreign aid should be given through international agencies, primarily the United Nations. The need is to eliminate political overtones, to the extent possible, from economic development. The use of international agencies, with interests transcending those of American or Russian self-interest, is the feasible means of working on sound development. Second, internationalization will allow more long-range planning, integrate development plans adjacent countries and regions may have, and eliminate the duplication built into national systems of foreign aid. Third, it would justify more strictness of supervision than is now the case with American foreign aid efforts, but with far less chance of suspicion on the part of the developing countries. Fourth, the humiliating "hand-out" effect would be replaced by the joint participation of all nations in the general development of the earth's resources and industrial capacities. Fifth, it would eliminate national tensions, e.g. between Japan and some Southeast Asian areas, which now impair aid programs by "disguising" nationalities in the common pooling of funds. Sixth, it would make easier the task of stabilizing the world market prices of basic commodities, alleviating the enormous threat that decline in prices of commodity exports might cancel out the gains from foreign aid in the new nations. Seventh, it would improve the possibilities of non-exploitative development, especially in creating "soft-credit" rotating-fund agencies which would not require immediate progress or financial return. Finally, it would enhance the importance of the United Nations itself, as the disarming process would enhance the UN as a rule-enforcement agency.

8. Democratic theory must confront the problems inherent in social revolutions. For Americans concerned with the development of democratic societies, the anti-colonial movements and revolutions in the emerging nations pose serious problems. We need to face these problems with humility: after 180 years of constitutional government we are still striving for democracy in our own society. We must acknowledge that democracy and freedom do not magically occur, but have roots in historical experience; they cannot always be demanded for any society at any time, but must be nurtured and facilitated. We must avoid the arbitrary projection of Anglo-Saxon democratic forms onto different cultures. Instead of democratic capitalism we should anticipate more or less authoritarian variants of socialism and collectivism in many emergent societies.

But we do not abandon our critical faculties. Insofar as these regimes represent a genuine realization of national independence, and are engaged in constructing social systems which allow for personal meaning and purpose where exploitation once was, economic systems which work for the people where once they oppressed them, and political systems which allow for the organization and expression of minority opinion and dissent, we recognize their revolutionary and positive character. Americans can contribute to the growth of democracy in such societies not by moralizing, nor by indiscriminate prejudgment, but by retaining a critical identification with these nations, and by helping them to avoid external threats to their independence. Together with students and radicals in these nations we need to develop a reasonable theory of democracy which is concretely applicable to the cultures and conditions of hungry people.