New York Times

September 16 1971


World Bank Says Refugee Cost May Stunt Indian Development

By Sydney H. Schanberg

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Serious Jolt to Economy

This represents nearly 20 per cent of the Indian Government's planned development program for the fiscal year of 1971–72‐ a serious jolt to an economy that must sustain development momentum if it is to keep pace with an annual population increase of 13 million.

Put another way, the net total of foreign aid’ for development purposes that India will receive in the 1971–72 fiscal year will be consumed by the cost of the refugees. Total foreign development aid, nearly all of which comes from a consortium of 13 nations acting under the World Bank umbrella, will be $1‐billion for the fiscal year. But over $600‐million of this must’ go to repay previous foreign debts, leaving $400‐million for development use—not enough to cover the $500‐million refugee bill.

Even gloomier for India is the fact that World Bank officials here according to the authoritative sources predict that the impact will be much more severe next year.


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