ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Irrigation- Water on Sand

drastically curtail their lending to these countries is to say the very obvious. Why is it that the rescue of the upper income developing countries (or rather of the commercial banks which had over-lent to them) had to be under- taken at the expense of the poorer countries? It is true that the low income countries' payments deficit on current account was at its peak level in 1981, but the situation in 1982 was almost as bad and the decline in the deficit in 1983 was only marginal. So it cannot be said that in terms of need the position of the low income countries had in any way improved in the past two years. The Fund's Annual Report itself points out how when the process of 'adjustment' forced upon the developing countries took the form of 'import compression' , the burden of such adjustment was particularly harsh on the African countries the volume of whose imports had already begun to decline in 1981 and continued to do so through 1983. These countries' plight was aggravated by the 15 per cent deterioration in their terms of trade from 1980 through 1983 and by the recurrent droughts in large parts of the continent, particularly

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