Europe and the Third World

Directorate-General For Translation European Commission

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A study on interdependence
Development aid
Development policy

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• Publié par: EUROPEAN-COMMISSION
• Nombre de lectures: 7
• Langue: English
• Poids de l'ouvrage: 7 Mo

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COMMISSION OF THE EUROPEAN COMMUNITIES
dossiers
Europe and the Third World
A study on interdependence
DEVELOPMENT SERIES — 1978 Europe - Third World :
Interdependence This publication is also available in the following languages
DA ISBN 92-825-0917-6
DE ISBN 92-825-0918-4
FR ISBN 92-825-0920-6
IT ISBN 92-825-0921-4
NLN 92-825-0922-2
A bibliographical slip can be found at the end of this volume
This opinions expressed in this book are those of the author, Michael Noelke,
independent journalist and economist.
© Copyright ECSC/EEC'EAEC, Brussels and Luxembourg, 1979
Printed in lhe FR of Germany
ISBN 92-825-0919-2 Catalogue number: CB-NX-79-O02-EN-C Commission of the European Communities
Europe-Third World
Interdependence
Facts and Figures
by
Michael Noelke
Preface: Claude Cheysson
Illustrations: Roland Denaeyer
Collection Dossiers
Series Development No 2
Brussels, February 1979 List of abbreviations and symbols in the illustrations
W less developed countries ^5à industrialized countries
oil producing LDCs ΟΞ EC
Wry non­oil producing LDCs I Β | Belgium
|orec| OPEC I DK | Denmark
|ACP| ACP (Lome­Associates) I D I FR of Germany
C I Arab countries F | France
I IRL| Ireland
I | Italy
E^ exports J Luxembourg
|^­ imports I NL | Netherlands
^^ production I UK | United Kingdom
{£) consumption I E | Spain
|GR| Greece
I Ρ I Portugal
£% term materials I EFTA | EFTA
^"^ agricultural products |USA| USA
^^ food products I ♦ I Japan
I & I Eastern central planned economies %β minerals
" USSR © iron ore
non­ferrous metals
^% manufactured goods
IJ2k machines and electronic equipment
¿*^ clothing Table of contents
Preface
1
Energy, a challenge for Europe and the Third World 11
Raw materials, vital both for Europe and the Third World 31
51 The Third World — a rapidly developing market for EC exports
Industrialization of the Third World — danger or good fortune for Europe 67
87 Matching needs and resources
Glossary 111
117 Sources Preface
Michael Noelke has rendered an excellent service in providing us with an instrument
for measuring accurately the state of interdependence which links us irrevocably to
the Third World. He has done this by means of his text, his tables and illustrations.
Using this interdependence, which is so clearly demonstrated, as a starting point I
should like to draw certain conclusions for the medium and long term as they con­
cern the European Community and its peoples.
We are dependent on the Third World here and now as well as in the future. It, in
turn, depends on us to a considerable degree. Our interests are linked. We should
therefore try to express this dependence clearly and irrevocably. Let us go beyond
yearly or short-term arbitrary arrangements and forge contractual links between us.
These contracts will link together firms and enterprises on both sides; they will be
agreements binding on all which will set out the guiding principles of our policies and
the rules by which we will abide. Let us also give ourselves the possibility of looking
to the future together, to draw up our own plans and to fix the priorities which will
govern how the means of each partner will be put to use. One of the aims of the
Lomé Convention, which links the Community with 64 Third World countries, is to
encourage enterprises to embark on the joint ventures where their interests are link­
ed. It should be one of the aims of the Community, in the future, to provide guaran­
tees from its budget for European investors who wish to harness the resources of
our partners for their mutual benefit. This should be the object of consultations with
our overseas friends at the time they make their investments so that production by
them and us can be harmonized and attuned to market demand and so that we can
adjust our economic policies accordingly and ensure a balanced growth pattern. On
our side the Community can seek to add the maximum possible dimension: in the
future, the European unit of account (ECU) should be the reference currency not
only for the Europeans but also for their principal clients and suppliers in the Third
World.
These developments should take place against a background of freedom of trade
and open access to markets. Planning has a part to play but it has to be in the con­
text of the market economy. The essence here is a huge trade-off between oursel­
ves and our partners. They get guaranteed contractual access to the biggest market
in the world, the European Common Market while we in return build up secure and
stable relations with these countries. It must be clearly understood that such a policy involves us all. If our partners sell
more on our markets, it may adversely affect our employment levels. But the balance
will be re-established as we Increase our sales of equipment and consumer goods
to rapidly expanding developing nations hungry for such items. Industrialists and
business operators must take the appropriate economic and technical action in
order to make such a system work with the help of and in the frame work set by pub­
lic authorities. The workers must have their rightful place In any new relationship and
their just reward. Their representatives, the trade unions, have a principal role to
play.
It is particularly gratifying that precisely on the part of the trade unions there is such
a clear understanding of the real long-term interests of workpeople, who form the
mass of our populations. They have understood that there can be no growth in out­
put and accompanying growth in employment without additional consumption. And
they know, after more than a century of existence, that it is the poor and the under­
privileged that have the greatest need to Increase their consumption in order to sur­
vive and develop. They demand therefore that the industrialization of our Third World
partners increase the purchasing power of their populations. But with this one
natural proviso, they are ready to lend support to such a development.
The areas of Interdependence are countless. The most important are set out by Mr
Noelke: energy, raw materials, foodstuffs. But it is in all sectors of human activity
that Interdependence and cooperation must be fostered.
8