UN General Assembly
1963

It is unprofitable to debate whether the donor or the receiver countries are responsible for this state of affairs, but it is a fact that in many cases the conditions for quick and effective use of capital are absent and that too little has been done to create these conditions. Transfer of knowledge and cultivation of the ability to organize are prerequisites for the investment of development capital. This is where the United Nations Special Fund is doing such valuable work, although the need for more remains imperative. The multilateral relationship between more and less developed countries may be adversely affected when the world is caught in a net of tied loans. Such a situation will have its effects on trade policies and it will alter the pattern of the world economy. Finally, the question arises: is there really much point in talking about credits and credit conditions when the foreseeable burden of interest and repayment will eventually be so high as to absorb the entire foreign currency income of the debtor country?