Substitute for Foreign Aid

“Substitute for Foreign Aid.” The Freeman 3 (April 6, 1953): 482–484.


“For the time being financing for rearmament has in a large measure taken the place of other forms of capital movements to Europe. But this provides only a partial and temporary solution to the problem with which in recent years this country has tried to cope through large-scale governmental loans and grants. These may have been the most appropriate ways of dealing with the acute transition and restocking problem immediately after the war. But nothing illustrates better the ineffectiveness of intergovernmental lending as a remedy for Europe’s long term problems than the fact that the shortage of capital today is still almost as serious an obstacle to the revival of private business in most parts of Europe as it was five or six years ago.”

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