these nations as a whole accounted for only about 8 

 percent of the world 1 s output of manufactured goods in 

 1976, according to World Bank estimates. And yet, 

 developing nations constitute over half the world f s 

 population. 



The stated goal of the Group of 77, l as expressed 

 in the Declaration of Lima of UNIDO II (U.N. Industrial 

 Development Organization) and reiterated at UNCTAD IV, 

 is to increase this share to at least 25 percent by the 

 year 2000. Even if this difficult goal is reached, 

 industrial output per capita for the Group of 77 as a 

 whole would still be less than half of the per capita 

 output of the industrialized nations. While developing 

 country spokesmen recognize that there are many reasons 

 for this state of affairs, they are virtually unanimous 

 in believing that a greater ability to acguire, devise, 

 and utilize modern technology in industry is crucial to 

 changing the balance. Thus U.S. initiatives that are 

 harmonious with this perception will have strong 

 appeal. 



Mutuality of Interest 



U.S. initiatives must, however, meet other tests. 

 The most critical is to ensure that both the United 

 States and developing countries have a real mutuality 

 of interest in the effects of an initiative. 

 Initiatives that will lead to increased manufacturing 

 capacity abroad raise sensitive questions about the 

 U.S. interest. 



In the broadest sense, the United states has 

 usually maintained that its own long-range interests 

 are best served by foreign assistance policies that 

 strengthen the economies of all friendly nations. By 

 means of the Marshall Plan, the postwar reconstruction 

 in Germany and Japan, President Truman's Point IV 

 program, and successor foreign aid programs, the United 

 States has sought to foster economic and social 

 development abroad. As the world becomes more 

 interdependent, the wisdom of these policies becomes 

 more apparent. 



With respect to developing countries, a generally 

 accepted proposition is that, quite apart from 

 considerations of basic equity and philanthropy, 

 improved economic welfare will increase the probability 

 that these nations will recognize that their interests 

 are largely parallel to those of the United States. 

 Alternatively, it is perceived that, if the developing 

 nations were to remain hopelessly impoverished while 

 the developed nations continued to prosper, resentments 

 would build, and the economic, security, and other 

 results would be inimical to the interests of all. 



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