TNAG-0618-FCO40-766-Aid-framework-from-UK-to-Hong-Kong-1977 — Page 44

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2. OTHER FORMS OF FINANCIAL COOPERATION WITH DEVELOPING COUNTRIES

COMMONWEALTH DEVELOPMENT CORPORATION (CDC)

24.

..In

In accordance with the policy realignment agreed between CDC and ODM in 1975

further encouraging progress has been made in directing the greater part of CDC's new

commitmento towards the poorer countries and the field of renowable natural resources. of the new commitments totalling (38.47 million) entered into in 1976, nearly 80% were placed in lower income countries and over 70% in agriculture, ranching and forestry

projects. For these projects, which require lengthy planning and are slow to show any

return, Government advances to CDC carry a concessionary element. Through this change

in emphasis CDC's financial, technical and management resources and its long experience

in the settlement and training of small farmers are brought to bear more closely on the

needs of the under-privileged in rural areas. Overall CDC's operations are designed to

help developing countries to improve their purchasing power and balance of payments;

to encourage savings and reduce reliance on external borrowing; to create employment

and impart managerial and technical skills; and to contribute generally to more

equitable income distribution.

25. Under the arrangements introduced in 1969 whereby CDC may extend its are of

operation to non-Commonwealth countries, subject to UK Government consent in each case,

it has now been authorised to operate in 11 such countries.

The latest addition is

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1

the Philippines.