01:00:16 17 |
Speaker 1
This program was made possible by grants from the German Marshall Fund of the United States, the Corporation for Public Broadcasting, the Ford Foundation, and International Business Machines Corporation. |
01:00:44 45 |
Bill Moyers
These are rice fields in West Africa, the soil here is fertile. Here the people can find the land, grow their crops in their herd, and raise their children. But the people are leaving. They're leaving because there is a plague upon the land. And the plague is blindness. waters that nourish life also breed darkness, depriving people of their sight and livelihood, driving them away from the land that could sustain them. |
01:01:38 99 |
Bill Moyers
These are vibrant people. If the blindness is overcome, they can stay on this land. Life can be normal again and eye meant to see can see. Bill Moyers 2:23 I'm Bill Moyers they're about 1 billion people in the world who live on what Robert McNamara calls the 'margins of life.' They live without enough to eat, and with very little hope that things will get better. There are many reasons why they're poor, and they usually can't control those reasons. Some of the victims of a cruel and capricious climate. Others were born where nature left nothing to grow ourselves. Still others live where opportunities are frustrated because of overcrowding, disease, corruption, and exploitation. In this edition of my journal, we will meet some people whose lives could be better, were it not for a tiny winged insect that thrives on the source of life itself. And we'll talk with the president the World Bank, Robert McNamara, who believes that it doesn't have to be that way. |
01:03:24 204 |
Bill Moyers
These are the people of the Volta River Basin in West Africa, where river blindness is a plague upon the land. Bill Moyers 3:35 The area covers parts of seven countries, Upper Volta, Ivory Coast, Mali, Nigeria, Ghana, Togo, and Dahomey. Bill Moyers 3:44 1000s of people in villages like this suffer from onchocerciasis, river blindness. The disease impairs vision, and can ultimately destroy all sight. River blindness is transmitted by the bite of a female black fly. Dr. Nemo of the Ministry of Health in Northern Ghana, explains. |
01:04:12 252.56 |
Dr. Nemo
When this flight bites people, it transmits a worm, which we call the uncle circuit volvulus. And this worm is the smaller one. This smaller worm, or the onchocerca moves in the sub sub tissues of the human body, and it keeps moving, wandering around until it grows and becomes the adult. And you can get one male one female, always in a nodule, meeting together to produce many of the infant worms. And it's usually these infant worms which caused the trouble- they wander around the eye, produce certain changes and cause the blindness. Bill Moyers 5:01 To the people of West Africa, the first of gifts is water, their most precious resource. But these fertile river valleys are also the home of the black fly. Entomologist Renee Labear of the World Health Organization. |
01:05:15 315 |
Renee Labear (entomologist, exact name unclear)
In places like this with fast running water, the fly is leaving the female lays eggs on the leaves on the grass and on the rocks. And the larvae developed on this substrate. They become pupae and the female and males hatch. Afterwards, the female is biting man to start blood. And as a female, for example, takes about two to five minutes for a fly to suck blood after this flight is going away. And after three or four days, this fly is laying eggs and they slap it on the leafs on the rocks and a new generation begins. Bill Moyers 6:08 River blindness affects people in many parts of the world, but it's most severe in the seven West African countries. Until recently, anyone who lived near the river almost certainly would have been bitten by the fly some repeatedly until the blindness came. |
01:06:31 391.96 |
Bill Moyers
Over river valleys are oases in a dry parched land. For people and animals alike, the river has established the rhythm of existence. Bill Moyers 7:05 Without water, no life survives. Near it, a person can suffer as many as 13,000 fly bites in one day 13,000. |
01:07:27 447 |
Bill Moyers
There is a familiar cycle of life in the villages along the Volta rivers, birth, death work and play. But with river blindness, the social pattern abruptly changes. Women do the work of men, boys and girls that work with adults. The blind are always with them. Bill Moyers 8:07 In some villages as many as 15% of the people are totally without sight. Many are men in their 30s and 40s. Men in their prime. |
01:08:28 508 |
Speaker 4
When you leave out blindness, a lot of people are blind, but they eat so safe people has to work very much for them for children for old people and for blind people. Bill Moyers 8:47 The burden on the families is enormous. Here the father, mother and three children are blind are suffering from other diseases. Only one son. age 11, is well on him as the weight is planting, harvesting and carrying water from the river. But he has the all too familiar nodules. Like his father, he too will one day be blind. Who will take care of the family then? |
01:09:28 568 |
Bill Moyers 9:28
Farming here is hard. usually t's the man's job. But it's even harder to sow and harvest when you cannot see. Bill Moyers 9:44 Life in the villages must go on supported mainly now by women and children. In time the afflicted village begins to die. |
01:09:58 598 |
Bill Moyers
Young people leave as soon as they can, trying to escape the fly, there are fewer marriages and fewer children and the blind. The blind live on in darkness, isolated, lonely and dependent life at the end of a stick. Bill Moyers 10:33 Chief Galbraith sobre rules the village of fungo, on the white volta, its villagers die 27 of the 200 people who live here are totally blind, others are beginning to lose their vision too. Chief Sabra cannot quite believe that a small black fly has been the thief of his sight. But having lived here all his life, he knows well the old village saying the river will eat the eye. |
01:10:28 629 |
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01:11:07 667 |
Bill Moyers
To these people blindness as another of life's mysteries of fate they can neither understand nor overcome. Bill Moyers 11:19 Its toll is high. Along the White River volta almost 50 villages have been abandoned, and more are dying. If the black fly continues to thrive here, this rich Delta country of Africa could become a wasteland. Dr. Nemo 11:38 The population is moving away from the river, across when has very close to the river does the time come over and bite them on when they move away from the river. Or the unfortunate thing is that they go on to some barren land so that they can't farm or they can't get good produce from the farms. |
01:12:05 725 |
Bill Moyers
10 million people spread over seven countries are potentially the victims of this cycle. They live in a region of great agricultural possibilities. If it is developed, they could feed themselves grow crops to sell and be on the road to a better economic life. Bill Moyers 12:27 First, the disease that saps their sight and strength and drives them from these valleys to poorer land. First, it must be controlled. And that will not be easy. Bill Moyers 12:48 There is only one doctor here for about every 93,000 people. And there are too few clinics like this one, where infected people can be treated. |
01:13:02 782 |
Bill Moyers
A small skin biopsy is the best method of diagnosis. Under a low power microscope, the disease bearing larva can be identified at an early stage. The use of this equipment is efficient, the results more accurate. Unfortunately, people must travel a long way to the clinic, and then wait, wait for some word that their disease can be arrested. wait to hear that. Maybe some sight can be saved. For many it is a frightening experience. As they wait they cannot forget that the disease they bear is hard to cure. Man 13:42 (man speaking a Wes African language) Bill Moyers 13:51 Two drugs are available today for treating river blindness. And both must be administered in clinics or hospitals that under the supervision of a doctor. While both drugs kill the worm, both also have unpleasant side effects. One causes toxic reactions, the other brings on a wild itching. The side effects require the constant presence of trained personnel. A simpler cure must be found |
01:14:17 857 |
Dr. Nemo
must be able to get a good drug, which will not give the patients any reaction so that they would be taking the drugs. The other aspect too, we need so much campaign and it's going to take us so long, even probably more than 20 years to be able to eradicate this. Bill Moyers 14:37 There is only one effective way to control river blindness. And that is to kill the black fly that causes it. insecticides have to be put in the river upstream of the breeding place. Dr. Nemo 14:48 They what do we be using here in the upper Region of Ghana is the DDT and the unfortunate situation is that we are getting so much DDT into our rivers, especially the Volta lake. And with time, this is going to poison the fish life. Now we've stopped using the DDT and we hope that we are going to get another chemical which will be easily broken down. |
01:15:16 916 |
Bill Moyers
Scientists have come up with an insecticide that will kill the larva of the flight without harming other forms of plant or animal life. Bu to treat an entire region, with its several major river systems and 1000s of streams is an enormous task. After the insecticide has been distributed, it must be kept under constant surveillance, n case the fly develops a resistance to it, or the chemicals upset the delicate web of nature, and bring a Silent Spring to West Africa. Bill Moyers 15:51 Helicopters are being used to carry the war against the flight to remote areas. During the rainy season, the foliage along the rivers thickens and hides countless streams and small rapids for the fly breed. Rains wash out the roads and make it impossible to reach the breeding site by land. Yet every location must be hit. The black fly has an amazing flight range of up to 100 miles and can easily return to lay more eggs. |
01:16:35 995 |
Bill Moyers
The fight can be won. We know now that river blindness can be controlled. There is proof here in the village of Finkolol in Mali. Once the people were leaving to escape the flood, and experimental program was begun. And today but people are back, tea plantations flourish and village life has resumed its natural rhythm. Bill Moyers 17:35 The children go to school, they can be children again. Lessons, games in the schoolyard time to be curious and mischievous. Take the place of growing old too soon of having to provide for their families because their fathers are helpless. |
01:18:06 1086 |
Bill Moyers
There are still blind people here that the battle against the plague is being won that people in Finkolo can see again. To that day when blindness is rare. And the rivers once more bring life Bill Moyers 18:24 Finkolo is just one village among many in the Volta Region area. Hope for the whole region depends on an international effort that has been mounted by four different agencies, the Food and Agricultural Organization, the United Nations Development Program, the World Health Organization, and the World Bank. Each plays a different part from helping to control the disease to treating the victims to marshaling financial resources to improving agricultural techniques. My guest this evening is the president of one of those organizations Robert McNamara of the World Bank. Mr. McNamara's former president of Ford Motor Company and Secretary of Defense under Lyndon Johnson and John F. Kennedy. The World Bank is the major international institution in the world for making loans for development. |
01:19:12 1152 |
Bill Moyers
How did you get involved you the bank and you personally in this project in the Upper Volta Region, Robert McNamara 19:17 In part it was excellent. My wife and I were visiting Upper Volta I tried to visit the nations that are members of the bank, there are 125 of them I visited perhaps 75 Or 85 At the present time. And while in Upper Upper Volta in Ouagadougou, the Capitol, I was told of this play that was was destroying the literally destroying the lives the opportunity for economic advance and the the actual life itself of 10s of 1000s of their people. And I was told at a research center examining the the vector and the the larva that were the cause of the plague it was located within Upper Volta at a town called Bobo Dioulasso. So, so I went there to see this, and found three or four scientists who had dedicated major parts of their lives to determining the cause and possible remedy for this disease. In their eyes, the only thing that stood in the way of controlling it was lack of money. I think perhaps they were a little optimistic at the time. But that was their feeling |
01:20:24 1225 |
Bill Moyers
Too optimistic? Robert McNamara 20:26 Well, I think that they felt they had the answer and March of 1972, it's pretty clear now they didn't, but they were on the right track. They were designing new pesticides, they were designing new methods of applying the pesticides. And the project that we finally started as a matter of fact, just last week, the helicopters began spraying the area applying the pesticide which which over a period of 20 years, we believe will control the vector sufficiently to allow the the larva which exists in the human bodies to ultimately die. And that 20 year period is required for this because these larvae will live in a body 17 years and until the larva die, a resurgence of flies will allow them to transfer the larva from one body to another body and allow the whole disease to to expand again. So what So the the essence of the program is to kill the flies that grow in running water, we're applying pesticides by air to the running water to kill the flies. And as soon as that has reached a point where the fertile valleys the the white volta the red hole, the black hole, the valleys are reasonably clear flies people can move back to the fertile farmland is that they were forced out of by this disease become productive provide their own livelihood. It's a vision of hope. |
01:21:53 1314 |
Bill Moyers
When I when you say the unproductive poor, whom do you mean who are they? Robert McNamara 21:58 Let me tell you just briefly about the bank. That it's it's an amazing institution created at Bretton Woods at the same time, the International Monetary Fund was created after World War II, 1946. It's owned by 125 nations, these 125 nations are represented in this building by 20, full time resident directors and 20, full time alternate director so the bank is literally governed by them. And the division of power, if you will, all right, take just a second between between the management of the bank on the one hand and the governing body and the other is very interesting. I can't present I can't approve any loan by myself. But the board can't consider any loan I don't present to them. And this was done to prevent log rolling so that one country can't say, well, if you approve a loan for me, Mr. Country, I'll approve them for you. It can't be done. This institution is run on a hard headed economic basis. But what's our objective? Our objective is to help the 2 billion people that live in the 100 developing countries that are members |
01:22:59 1380 |
Bill Moyers
2 billion? Robert McNamara 23:00 2 billion people. Our objective is to help those 2 billion people help themselves. And we can only help them if we help them increase their productivity. And what kind of people are these? 1/3 to one half a little malnourished. The average caloric intake, for example, is roughly 2000 calories a day. Ours is 50% more. And it's becoming increasingly clear that that malnourishment itself is a cause of lack of development. We are now understanding that protein deficiency in the last part of pregnancy, the last third of pregnancy in the early years of life, literally restrict the development of the brain. And in individuals are denied the right to realize the potential of the genes they were born with. Malnutrition is number one, number two, high infant mortality. 20% of the children die before they're five years old. low life expectancy, our life expectancy is 20 years more than theirs. They're literally condemned to an early death at birth, high illiteracy, roughly 800 million illiterates out of these two, 2 billion 100 million more than 20 years ago, the percentage of illiteracy has dropped. But the population increase been so great that the numbers increase high unemployment. We're concerned about 8% in this country, rightly so. They have 20 to 25. This is the universe we deal with |
01:24:22 1462 |
Bill Moyers
when you reporedt it to the World Bank governors last fall. I think it was you said the situation of many of these people is desperate. Is it still desperate? Has anything been done? Robert McNamara 24:32 Roughly 800 million of this 2 billion live if you can call it that on about 30 cents per day. Bill Moyers 24:38 So where do they where do you find them mostly what countries? Well, it's Robert McNamara 24:41 Well it'a Bangladesh. As an illustration, 75 million people in Bangladesh living in 50,000 square miles or 50,000 Square Miles was the area of the state of Florida 75 million people living in the state of Florida. Alternately Bangladesh is is a two thirds of it is flooded about six months of the year and remaining six months dry. |
01:25:02 1502 |
Bill Moyers
About a year ago. In fact, as recently as a year ago, we were talking about the third world. This is a term that was commonly used around around the world. Now everybody's talking about the fourth world are you? Are these the people you're talking abou? Robert McNamara 25:13 The fourth world might say, it consists of the perhaps 800 million to a billion people who have average incomes of less than $200 per capita, and that consists of Bangladesh. In India, Pakistan, the Sahelian zone I was talking about her earlier, upper golden, Melina Jarrett said are many of the countries of French, West Africa, Mauritania, for example, Senegal, Amman, East Africa, Kenya, Tanzania, that's the fourth world if by that you mean countries with incomes of roughly $200 per capita per person, it's very difficult for us to understand what that means our income per capita on a comparable basis is on the order of $5,000 |
01:25:58 1559 |
Bill Moyers
As I traveled, and as we all read, I'm encountering more and more the question, Well, is it worth it trying to save these people? It's time isn't it? The argument goes to be some apart unsqueamishly self interested, that is we, there aren't enough resources in the world. To really save countries like Bangladesh, there aren't enough resources to make a marginal difference. So the best thing to do is to simply save those that have some capacity to cope and survive and let the others regrettably go down the drain. How do you feel about that? |
01:26:34 1594 |
Robert McNamara
Well, I read exactly the same argument two or three weeks ago and magazine section in the New York Times it was labeled triage. And they used use the illustration of the wounded after World War One, when or during World War One, when medical services weren't sufficient to take care of all they divided them groups, one group didn't need it. Another group needed it but wasn't enough to take care of them and let them die. The third group needed it and they applied it. The medical service, you can't deal with nations that way. They don't die, you can't bury them, they're there. That's number one. The second point they made was, it's like a lifeboat. We've got a lifeboat, the capacity is 100. We've got 125 people in a day, we don't quickly throw overboard 25 Let them die kill them. Every one of the 125 will die. It's morally repulsive. And it's technically wrong. If you want to use a lifeboat analogy that lifeboats capacity is 100. We only got 75 in it. |
01:27:30 1650 |
Bill Moyers
but you're being you're being moral and sentimental. And these critics say this is not the time to be moral and senimental. Robert McNamara 27:36 I believe in being both moral and practical. I don't think I'm sentimental. My point on the analogy with the lifeboat is that it's technically wrong. The lifeboat isn't full, the world's capacity is not being utilized. I don't care whether it's food or what it is you're talking about. We have the capacity to expand production in the countries that need it in the India's Bangladesh and elsewhere, to expand production to begin to deal with these problems. |
01:28:04 1684 |
Bill Moyers
What about the argument, though, that nature is self regulating? Nature has its own limits, a rising death rate will compensate for the adversities brought on by a rising birth rate. And that the more we try to tamper with this system, the more actually in the long run, we're going to create misery. Robert McNamara 28:22 I'm not sure we know the linkages there clearly linkages, but I think they might even be the reverse of just that argument. If we if we let more people die in reduce the thirst. I rather doubt that. It's interesting that in India, my statistics may be slightly off because they're from memory, bBut it illustrates the point. It's interesting that in India, the actual number of births per woman is on the order of 6.5. The number of births per woman required to have a high probability that a male will survive to the later years alive for the parents is on the order of 6.6 or seven. I don't think that's coincidental. I think it's the high mortality of Indian infants, that is driving up that fertility rate and therefore and so does the government by the way, and therefore the Indian government has asked us to work with them to develop a population project. We'll experiment with it. So we in two districts in India, each with populations of more than 10 million we have a population project, which is trying out a large number of actions designed to reduce the fertility rate. One of the actions is to change the nutrition by increasing the nutrition to try to reduce infant mortality to see whether that was will stimulate a reduction in fertility. We're almost certain it will. |
01:29:48 1788 |
Bill Moyers
Your enthusiasm is is of course contagious, but I remember right after World War Two, the general belief in this country was that with enough capital, and enough technology we could rescue the poor of the world from their poverty and look at it today. Robert McNamara 30:04 I think we can, but we can't do it overnight. In the last 25 years, the poor of the world have many of the poor of the world have been rescued. It's hard to get a single measure development. But I suspect that the best single measure is life expectancy. That's the end of the call. Bill Moyers 30:21 You mean the number of years you expect to live Robert McNamara 30:23 The number of years you expect to live. Bill Moyers 30:25 Are people going to die before these problems are resolved? Robert McNamara 30:29 Definitely. Yes, no question. They're dying now. I wrote a report a few weeks ago, I don't know how accurate it is that 100,000 that died in Ethiopia, of starvation. The last several months, I read a report from the Red Cross that said that this was a few months ago that a million in the Sahelian zone of Africa were on the verge of starvation. I know 1000s have died in Bangladesh and India in the last year or so. |
01:30:54 1855 |
Bill Moyers
So you think that the term you use last fall desperate. And you also use the term appalling, still is true in Robert McNamara 31:03 No question about it, and 10s of 1000s, probably hundreds of 1000s are going to die in the next five or 10 years, because of neglect, neglect by their own governments and neglect by the governments of the Western world, including Japan. Bill Moyers 31:18 So what's going to what what what, what is his going to do to the psychological attitude of the world? Robert McNamara 31:25 I, in the short run not much. Because people have been dying from neglect by their own governments or other governments for centuries. And as I indicated, the life expectancy of these people who's rising, their condition is actually getting better. It's very hard to believe that when you see the terrible misery that exists in these cities, as I move around, I never come back from a visit to one of these fourth world countries out feeling depressed. But the conditions are better today than they were. And they will be better in the future. But the rate of advance is not yet optimal. |
01:32:01 1921 |
Bill Moyers
Shouldn't you tie your assistance to hard, tough programs with population stabilization? Robert McNamara 32:08 Well, perhaps we shouldn't we knew what those were. But we don't. The world doesn't yet know what the linkage is between fertility reduction on the one hand, and I'm going to call it economic, advanced economic and social advance on the other. I think it's becoming increasingly clear that there are linkages is not just a question of practicing in the rhythm, method or accepting contraceptives. It's the problem of motivation, and how do you motivate a family to to want to have lesser number of children. Using India as an example, there are 100 million couples in India, of which the wife is in the fertile range. 100 million. And those 100 million couples must be persuaded that it's in their interest to do certain things I haven't been doing, to persuade them that they're 40 or 50,000 people in India, dedicated to that job employed by the government of governments to do that. It's a tremendous administrative problem. Beyond that, is not clear whether primary education for females will have more impact on on their motivations than then cheap contraceptives. So one doesn't really know exactly how to do that. Beyond that, I should hasten to add, even though we didn't know, we don't have the power to to order sovereign nations to follow policies, other than those that they're willing to adopt. |
01:33:29 2009 |
Bill Moyers
At the recent World Food conference, there was considerable talk that among newly developed nations that family planning is, to repeat your report, is not necessarily a cure for poverty. And they were constantly pointing to China, China's population has fallen tremendously, and yet they there's no famine in China. Do you think that China is a model for development in these countries? Robert McNamara 33:51 Well let me say first, I never been to the People's Republic, since it was the People's Republic. I'm not an authority on it. I don't think we in the western world have sufficient knowledge to come to firm conclusions, but as your country. So let me just say this, that, that there's ample evidence my wife was in China a year and a half ago and from what she said and others have said, there's ample evidence that the Chinese have adopted a population planning program. They do have barefoot doctors, the Barefoot doctors do educate the people on the desirability of reducing fertility, they've raised the marriage age, they've taken a number of very important steps. They've increased nutrition. They've they have equalized the distribution of food, they've reduced. illiteracy, I should say, raise the role of women. All of this is very important in reducing fertility rates. So my impression is on the impression rather than final judgment, my impression is they've gone far, to effectively reduced fertility rates. |
01:34:50 2091 |
Bill Moyers
But do you think the attitude that was expressed by some people at the World Food conference that family planning isn't a cure for poverty is going to make harder the kind of programs you were talking about? Robert McNamara 34:59 No, I don't think so. The was expressed more fully at Bucharest at the population conference than it was at the food conference in Rome. And there the the, the third and fourth world were trying to demonstrate their need for additional external assistance. And they therefore, I think exaggerated the the relationship between development measured in terms of economic per capita income on the one hand and fertility on the other. My own impression is that, that we must increase the exposure of females to primary education, we must improve the nutritional levels, we must raise the health levels before we can achieve optimum fertility rates. But we need not expect Bangladesh to reach a US per capita income level before their present 3.5% growth rate of population is cut to a more reasonable level such as 1%. |
01:36:05 2165 |
Bill Moyers
My wife is going to watch his show and she's going to say he singled out women and exposing them to the need for family planning techniques. What about men? Robert McNamara 36:14 Well, certainly men too, and the most effective programs and family planning involve both the man and the wife. I mentioned women because women are discriminated against in, in many countries the world, not just perhaps some of them think they are. But in certainly in the developing countries, and particularly in education. If you look at the the rates of school attendance as a percentage of the primary age groups, you'll find that in many countries, only 8% of the females will be attending primary school, whereas perhaps 30% of the males will. It just shows the degree of discrimination. And there's ample evidence to show that that as the the literacy level of females is raised, their their it affects their desires for numbers of children. |
01:37:07 2227 |
Bill Moyers
Let me share with you an attitude that I think is rather common around the country, at least it's been, it's been mentioned to me rather frequently later, they'd say, we are suffering the highest inflation rate of increase in the cost of living in this country in years. More people are out of work today than ever before. Our growth rate is slowing down dramatically. Don't expect us to help. We can't do it anymore. Mr. McNamara makes fine statements about what needs to be done. He diagnoses the problem explicitly and eloquently. But don't ask us to help we have our own problems. What's your answer to that? |
01:37:44 2264 |
Robert McNamara
It's worse than when they express it if that's the way they express it. Because not only is the has the growth, decline, there's been an actual setback. And the real income per capita in the US today is probably 5% less than it was a year ago. So how do we go to a person whose real income per capita has decreased and ask them to first support the existing programs and secondly, supporting an expanded program? Well, I think one approaches it on perhaps two or three grounds. First, he must understand that while he's had a setback, it's temporary. And it's a setback in a strongly rising trend. The real income per capita of the average American has increased about 100% in the last 25 years since the start of the Marshall Plan, as a matter of fact, and I don't care how you measure it. Meat consumption per capita is up 100%. Second cars, third TVs, the percentage of our of our children that are going to college is the security, the elderly, the life expectancy, the health, equity, and the health district in any way you want to measure the real income per capita, this country's increased dramatically. Therefore, our capacity to help others is increased. Now 25 years ago, when we had a real income per capita, perhaps half what it is today, our nation initiated the Marshall Plan, a program of help the Western Europe, Western Europe strong today, in part because of that Marshall Plan. At that time, we had half the real income per capita, but our economic assistance at the time of the Marshall Plan 25 years ago, in relation to the income was 10 times greater than it is today. |
01:39:22 2362 |
Bill Moyers
But today, you do have something called the age of scarcity. And a lot of people are saying we can only help other countries if we're willing to give up something ourselves and quite frankly, not willing to talk. Robert McNamara 39:33 I think it's correct. This is a choice. We can consume all we're consuming and also add to the help we give other countries and you're saying that it's a choice that it's within our capability to make, particularly when one recognize the amounts are so small. I was interested in a poll I noticed the other day that asked American people what percent of the the government's budget was dedicated economic assistance and they said 10% Now they're the errors Just 10 fold. It's 1%, not 10%. But the next question was, in the light of your answer, ie 10% of the budget goes to economic says, Do you believe that we should continue economic system? The answer was yes. 65% of the people said that they believe that 10% of the budget should go to economic assistance when only 1% goes, now it is conclusion from the conclusion I come to is that, that there's an underlying support for economic assistance. And that support is based on on a moral feeling, as well as a feeling that it's in their self interest to do it. And we can talk about that, if you wish. So that's the first point. The second point I want to draw from it is that the amount of additional assistance required to reach what I'll call optimum levels, however you wish to define it five or 10 years from now is very small in relation to to our income, and it can be obtained over the next decade, by dedicating just a small percentage of the gain that we will achieve in that period. In real terms, I'd say, two to 3% of the gain in real income, if diverted to the developing countries would make the difference. Are you saying misery and a good life? |
01:41:11 2471 |
Bill Moyers
Are you saying that we can't help without giving up anything? Robert McNamara 41:15 We cannot help without giving up something, but the amount we have to give up is very small, and it's out of a tremendously bountiful life? Bill Moyers 41:22 Why shouldn't the oil producing countries take on the burden of this task? They have all this newfound cash? Robert McNamara 41:26 Well of course, the answer is whether they should or not, they are and this is very interesting. Bill Moyers 41:31 They are? Robert McNamara 41:31 They are tremendous amount of economic assistance has been committed. Bill Moyers 41:36 How much? |
01:41:36 2497 |
Robert McNamara
Right, well, it's it's a little difficult to be absolutely sure, but it exceeds $10 billion from the oil producing countries while producing countries who the fourth to the to the developing countries, that includes the third and fourth world within the past 12 months $10 billion. Now there, they they've just newly received this huge flow of foreign exchange, they haven't yet had time to do develop their own long term programs and development. But out of that they have diverted committed $10 billion are more actually the figures we have are 12.5 or something like that to the developing world and of that they've dispersed 2 billion. And whether it's because of what they're doing, whether that's enough or not, who can say we have cut back. That's the tragic thing. The the economic assistance of the Western world, Western Europe, US, Canada, Japan, in real terms has decreased. It hasn't kept track haven't kept pace with inflation. And as a percentage of our of our income. It's it's declined dramatically. At the time of the Marshall Plan. Two and a half percent of our gross national product went for economic assistance today, it's just a 10th of that point two five. |
01:42:48 2569 |
Bill Moyers
Do you think this is the result of insularity of retreating? Robert McNamara 42:53 It's, it's a result of frustration? Yes, it isn't. It isn't insularity. And it is a retreat. And it's been more noticeable the last year or two, I think that's to be expected. Bill Moyers 43:02 I'd Why do you think the last year or two? Robert McNamara 43:05 Well we've we've, as I say, in this country, we've had an increase in real income of 100% in 25 years now, what's it represented by automobiles, some of them bought on time, credit, much improved housing, much of it mortgaged, increased participation by our children and colleges, some on a credit basis. And when when income declines 5% It's very difficult to adjust that consumption pattern 5% Not that the consumption pattern doesn't have a third TV set or a second automobile or a vacation home, that could be taken out of it. But it's very difficult to take it out after you bought it and its own mortgage payment. Bill Moyers 43:45 So you say they feel frustrated. |
01:43:46 2627 |
Robert McNamara
So they feel frustrated, and there's a malaise and I think the the malaise is a result of this sense of frustration. It's a result of, of an expectation gap rather than lack of progress. And we failed to distinguish between these two, we set our hopes higher than than we were capable of realizing. And then when we didn't realize them, we became disappointed and frustrated, and in a sense, ineffective. Bill Moyers 44:10 Is there a paradox in the fact that part of the problem these countries face is the result of an increase in fuel prices, which goes into fertilizer and other projects that the Arab and oil producing countries are coming in to give them help in a sense to subsidize the price of that oil and we are increase if we if we increase our health, we're having to increase our health in effect to subsidize the wealth of the oil producing countries. Isn't that a paradox? |
01:44:37 2677 |
Robert McNamara
The the economic systems if we increase it, which we haven't, but I hope we will, would not go to subsidize the transfer while the oil price increase occurred at a time when several other major changes in the world economy were adversely affecting the developing countries and it's this package of poor Problems that has to be dealt with the oil price is only one Bill Moyers 45:04 what are the other two or three Robert McNamara 45:05 The others are drought conditions in much of Asia and part of Africa, which lead to food scarcities serious food shortages and rising food prices. dramatic increases in in prices in the industrialized world because of prosperity. They the rates of development, the rates of economic advance, and in the Western Europe, Japan and North America in 1971, 2, & 3 were among the highest on record. This strain the production system, demand put pressure on supply, this tended to stimulate the price increase. That's been the major reason for worldwide inflation. As that occurred, governments tried to take action to correct it, the actions lead to recession as the recession occurred, the export markets of these developing countries began to shrink. And they depend on exports for foreign exchange, to pay for their imports, the imports, they need for more fertilizer, more, more irrigation. Foundation for their economic advance. So that occurred at the same time, their terms of trade began to deteriorate, which simply means the prices their imports went up more rapidly than the prices of their, their exports. And the combination of these several things, the increase in the price of oil, the shortage of food and rising prices of food imports, the reduction in their export markets, and the deterioration in their terms of trade. It's that package of adversity that we have to try to help them deal with. |
01:46:42 2802 |
Bill Moyers
All of this comes down to a feeling not unlike that of a man who said to me recently in Dallas, I woke up one morning in the world that I knew that known in the triad and identifiable world, financially was gone. What happened to it? But I think you said something of that, of what happened to it. But then the question becomes, even though the technical terms are beyond most people, including me, is the world developing new monetary and financial structures to deal with this strange new world that has suddenly emerged? Robert McNamara 47:15 Yes, I think that that's part of our responsibility. And we're trying to help and that and the events of the last two or three weeks should be a cause of optimism for your Dallas friends. Because the finance ministers of the world, the governors of the International Monetary Fund and the World Bank met here in Washington to consider this problem. And they took several actions to begin to deal with the financial problem. Bill Moyers 47:41 In layman's terms, what do they mean? |
01:47:42 2862 |
Robert McNamara
Well, the first problem is that it's caused by the fact that the oil that we're buying, we can't pay foreign goods today. Because the oil producers lack the capacity to absorb the goods. In a sense, that's good, because we don't pay for it and goods, there's no pain to us, we're paying for the oil in part with paper. And we pass the paper over to the oil producers, and then that paper must circulate through the world evenly. So that they'll take the Bangladesh paper and Italy, paper, Italian paper and the paper from Great Britain and all nations equally. And if that paper stopped circulating, then we have a serious disruption in the world economy, there was danger that the paper would stop circulating the risks of standing behind it. We're getting greater than the commercial banking system or the world could accept, and it was necessary for governments to agree to begin to accept some of those risks. That's essentially what was done. Last week and the week before the finance ministers agreed to set up two funds. One known as the safety net fund that Secretary Kissinger had posted proposed and has to be set up by the OECD nations and the other known as the oil facility, the International Monetary Fund was to be set up by all the nations that are members that and these two funds will help assure that these pieces of paper continue to flow evenly and help assure therefore that that there is no serious distortion of the economies of these consuming nations caused by a failure of the paper to flow evenly during the next year. Similarly, these finance ministers approved the expanded bank, world bank lending program, we borrow from OPEC, we put those funds to work in the developing countries. This is another form of what's known as recycling all designed to minimize the impact of this oil price increase. Ultimately the world will have to adjust to it too. They'll have to adjust to the oil price increase by transferring goods to the oil producer. |
01:49:43 2983 |
Bill Moyers
Are you saying inflation is here to stay as a little while nominal Robert McNamara 49:47 I'm not I'm just talking about adjusting to the oil price increased by by paying for it in real terms and that's going to have to be done in goods and when it's done. It's a real penalty. There's no we can't close your eyes to advise the penalty. All of us All oil consumers paid, but the amount of the penalty is absorbable. Within our societies, it might amount to two to 3% of one year's income. And we can absorb that we need not allow this to disrupt the societies, the industrialized nations, and we should not allow it to disrupt the societies, the developing nations. And I'm not arguing whether it's right or wrong. That's not my, my, |
01:50:23 3024 |
Bill Moyers
But you are saying some structure is emerging that will give some consistency to the world, Robert McNamara 50:28 some structure exactly some structures emerging, which will allow the world to adjust over a period of time to this price, assuming the price continues. Bill Moyers 50:36 You've been in this job now, six years. You have the image to many people of the modern manager, Harvard Business School, Ford Motor Company, Secretary of Defense for seven, eight years. Have you learned anything at the World Bank that would startle or scare your old friends about the nature of the world economy? Robert McNamara 50:58 Well one thing I've learned, I've learned my wife was right, she pointed out to me four or five years ago, a passage from T.S. Eliot, which I haven't forgotten since then, he wrote it. I think it was in his Fourth Quartet, he wrote these lines, we shall not cease from exploring. And at the end of our exploration, we will return to where we started, and know the place for the first time. And I think that my service with the World Bank is part of this journey of exploration. And it's it's tremendously expanded my understanding of nations and peoples. |
01:51:28 3089 |
Bill Moyers
Does it say anything to you about the need to radically change the way things are? Do you think the assumptions on which we've lived in a capitalist society for so long have to be tackled and altered? Robert McNamara 51:41 I mean well, we're changing our assumptions I don't like the program allows time for us to go into it fully. But we are changing our assumptions. We're becoming much more sensitive to the rest of the world, we, it is true that that in this present, period of difficulty, economic difficulty in the US, we tend to be turning inward. But that's just a minor dip and a rising secular trend of turning outward, certainly in your lifetime, and surely in mine, this nation has become much more sensitive to problems elsewhere in the world, much more willing to try to join in meeting those problems. I think we've learned we can do it all by ourselves. And we shouldn't try. But we're understanding, then on our own narrow self interest, we should deal with these problems. Our children cannot live on an island of affluence in a sea of poverty, that's not a secure world, it's not going to be a prosperous world. For him, it's not going to be a happy world for them. We can only live if we take account of the problems of other nations. I think that philosophical, political, economic changes occur. |
01:52:41 3162 |
Bill Moyers
What I was getting at in particular is that if you take the bank where I think, and others think you seem to be taking it, you're going to go right into the heart of some of the most difficult questions we face in the world, the redistribution of income and wealth, taking it from here and giving it to here, and land reform. And every time you get into land reform in many countries, the ruling class says, Wait a minute, not here. Isn't that going to cause you some consternation |
01:53:14 3194 |
Robert McNamara
That has, it will cause my successor difficulties? Most of all, it'll cause the governments of the developing countries difficult, as it is causing the US government difficulty. Our argument today, in the US Congress and between the Congress and the administration is exactly on that point. How is the burden of sacrifice going to be distributed? That's the essence of the problem. And we face that every day in every one of these developing countries, we're just beginning to understand ourselves that the depth of the problem and some of the actions that need to be taken to solve it, the income distribution in the developing countries, in general, is more unequal than it is in the developed countries, there are many, many developing countries in which the top 20% of income receivers have incomes 20 times the level of the bottom 20%, a comparable ratio in the western world is eight to one, not 20 to one. So there are greater income distortions there than than here. This simply reflects the mental distribution of political economic power. And, exactly and as you suggest, over time, to begin to deal with the problem to do what I think must be done, which is to increase the productivity of the load productivity elements in those societies. That's the only |
01:54:30 3270 |
Bill Moyers
The landless poor Robert McNamara 54:32 The landless poor, exactly refer what we call the lowest 40%. The only way to deal with the lowest 40% is to raise their productivity, redistribution of income is not going to do it, but to raise their productivity. There has to be a redistribution of government services. You got to stop treating the urban centers as privileged centers for purposes of primary education and get that primary education on to the rural areas. You've got to have roads out there. I think I'm right in saying 50% of the rural people in in Ethiopia are more than one day's walk from the nearest dirt road? How can you expect them to do increase their productivity and produce a surplus for cash sale, which they may then used to build a better house or buy a school or something when they can't get their product to market? But throughout the developing world, there's a maldistribution of services, education, health, water, etc, that's got to be changed, it's going to take time to do it. The political power is in the hands of those who don't want to give it up. |
01:55:37 3337 |
Bill Moyers
Well, that's the nature of power is not what yield and that's you flying in the face of nature? Robert McNamara 55:41 Yes, surely. But of course, that's the story of civilization. And, and that's been the history of power. And in the industrialized case, countries, it's certainly happened here. Look at the income tax that was fought that's been a shift of economic power, look at our own. Look what's happened in, in the US Congress in the last several weeks, that's a shift of power. And this is all part of the process to begin to deal with some of these inequalities. I think the world has made great progress in dealing with them. But my God, it's an imperfect world, and I'm afraid it's gonna be for over 1000s of years to come. |
01:56:14 3374 |
Bill Moyers
One final question. When you come into confrontation with these facts of nature, with power, with a disparities in income, when, as you have done, you see the faces of these 800 million people who are living in what you call desperate conditions, what is there that makes you not simply want to chuck it all? And, and, and go lead a more serene life? Robert McNamara 56:40 Well, hope, I guess, first a realization that progress has been made. Sometimes I forget that. And I have to go back and read the data and read the story to really refresh my mind and see that there is a basis for hope. Because all we really need to do is, is extend the trend of the past. The last 25 years, I've seen tremendous advances. There's widespread misery today, but much less today than it was 25 years ago. I can remember it in part myself. A little over 25 years ago, I was in the US Air Force India. At the time I was in Calcutta. There were 10,000 dead bodies on the streets of Calcutta. They weren't dying by the 1000s they were dying by the hundreds of 1000s in India at that time, that was the terrible famine of 1943. We haven't had that today. We need not have it tomorrow. And it's a hope to avoid it. I think underlies our world. |
01:57:40 3460 |
Bill Moyers
On that note, I want to thank you for spending this hour with Public Television. I've been talking with Robert McNamara the president of the World Bank until next week, good night. |
01:58:33 3513 |
Speaker 1
For a transcript, please send $1 to Bill Moyers Journal box 345 New York New York 10019. This program was made possible by grants from the German Marshall Fund of the United States, the Corporation for Public Broadcasting, the Ford Foundation, and International Business Machines Corporation. |
Description: Title: #104 – A Conversation with Robert MacNamara OBD: 2/6/75 The World Bank President discussed problems of developing countries and the economic and political relations between these countries and the industrial nations.
Keywords: 1975
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