Echoes of blackmail

NEW DELHI’s refusal to be overawed by some foreign donor’s threat to cut off aid is a measure of economic and political maturity. Development and other aid without strings has always been welcome, but Mrs Gandhi has made it clear that we will not bow to any aid-cut blackmail. Some countries which were willing to assist India when it was weak, she has said, “have become intolerant of the steps this nation is taking to become strong.” Japan is stated to be reviewing its aid policy towards India, posing to policy-makers “the fundamental question” whether nuclear India is a developing nation that qualifies for aid. It has, however, ruled out a sudden switch in aid policy. The US and Canada are also reconsidering their stand. But not all donors have been swayed by prejudices assiduously fed by Pakistani propagandists. Sweden has no intention of stopping aid “at the moment”. Far more significant, executive directors of the World Bank have approved a $150-million long-term loan for India despite protests by representatives of the US and Canada. They expressed doubts about the priorities being extended to India’s development effort. But even they did not block the credit — the ninth advanced to this country in the current year to promote production through imports of raw material by about 800 medium and small-scale industrial enterprises. Some of the vital projects which would benefit from the new soft-term loan relate to tractors, fertilisers, electrical equipment and machine tools. Most of them might otherwise have suffered a reverse.