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'Fhe underdeveloped countries sell most of their exports
to the developed countries. In this way, they exchange
farm products and minerals for manufactured goods.
But most exports of the developed countries are sold to
other developed countries. There is still only a small
market for manufactured products in the underdevel-
oped countries, because most of their people are poor.
Most persons in the developed countries have relatively
high incomes. They can afford to buy a wide variety of
manufactured goods, such as automobiles, television
sets, or household appliances.

The developed countries constantly compete in the

world market with up-to-date electric computers, jet
airplanes, sports cars, or synthetic materials such as
nylon and rayon. The underdeveloped countries lack
the industrial strength to produce manufactured goods
for the world market. These nations are trying to in-
crease their share of world trade by speeding their
industrial progress. But they are so far behind that they
need help from the developed nations. Without such
aid, the underdeveloped nations will remain largely
agricultural. If they fail to progress industrially, their
people — about two-thirds of the world's population —
will probably continue to have a low standard of living.

The developed nations conduct large assistance pro-
grams to aid the underdeveloped countries. This help
amounted to more than $6,000,000,000 a year during
the mid-1 960's. Most of this assistance is used to develop
large-scale public works such as highways, railroads,
and hydroelectric plants. All these help in the indus-
trialization of a developing country.

Much economic aid to underdeveloped countries is


administered by the United Nations and other interna-
tional organizations. The UN Special Fund finances in-
dustrial research, surveys of natural resources, and
technical training programs to teach modern methods
of farming or manufacturing. The underdeveloped na-
tions get financial aid from institutions such as the
International Bank for Reconstruction and Develop-
ment, also called the World Bank. In addition, most
developed countries make direct grants and loans to
the underdeveloped countries. Investments in the mines
and industries of many underdeveloped countries are
made by private firms of developed countries. Many
large industrial companies of the developed nations also
build factories in the underdeveloped countries. Some
companies operate branch factories in these coimtries.
For the details and history of international economic
assistance, see Foreign Aid; International Mone-
tary Fund; Cold War (Economic Power).


Many nations are members of economic groups called common mar-
kets. As a rule, a common market unites countries of a certain re-
gion. The chief purpose of a common market is to stimulate the in-

dustrial growth of the entire region. The members of most common
markets agree to remove tariffs and other trade barriers within
the group. The mop, below, shows five common market regions.


European Economic Community (EEC), better known as the
Common Market or the Inner Six, is mode up of Belgium, France,
Italy, Luxembourg, The Netherlands, and West Germany. EEC was
formed in 1957. Greece and Turkey ore associate members.
European Free Trade Association (EFTA), also called the
Outer Seven, is composed of Austria, Denmark, Great Britain, Nor-
way, Portugal, Sweden, and Switzerland. EFTA was established in
1 959 in Stockholm. Finland became an associate member in 1 961 .
Latin-American Free Trade Association (LAFTA) unites
nine nations in an economic alliance. lAFTA was formed in 1 961 by
Argentina, Brazil, Chile, Mexico, Paraguay, Peru, and Uruguay.
Colombia and Ecuador joined later that year.

Central American Common Marlcet (CACM)is on economic
alliance of five countries — Costa Rico, El Salvador, Guatemala,
Honduras, and Nicaragua. These nations signed several trade
agreements between 1957 and 1962 that estoblished the CACM
cooperative program. The official name of the alliance is The Gen-
eral Treaty for Central American Economic Integration.
Council for Mutual Economic Assistance (COMECON) is on
organization of Russia and eight other communist countries. It was
formed in 1 949 to unite the economic efforts of Russia's satellite
nations. COMECON members are Bulgaria, Czechoslovakia, East
Germany, Hungary, Mongolia, Poland, and Romania. Albania is
also a COMECON member, but does not now participate.


Friiuhj Grou,,, a sl.'UUf hy Hfiiry Moore


Challenge of the World

Man has achieved great success in his efforts to con-
trol the physical world in which he lives. He can move
mountains and create lakes, and he can send space
capsules to the moon. But in spite of his scientific and
technological progress, man has not been so successful
in dealing with human problems. All humanity lives in
dread of war, and more than half the peojilc of the
world are hungry.

The United Nations represents man's greatest effort
to prevent war and to solve the problems of hunger,
poverty, and disease. In 1965, the UN celebrated its


twentieth year as an organization of nations working for
peace and security. The UN anniversary year was offi-
cially designated International Cooperation Year. UN
Secretai-y-General U Thant explained the origin and
the purpose of the observation in these words:

"•i)ay after day we read and hear so much about con-
flict and strife in this world that we sometimes do not
realize the vast extent to which peoples are working
together. It was Prime Minister Nehru of India
(Jawaharlal Nehru (1889-1964]) who, more than three
years ago, drew attention to the quiet way in which

cooperation does in fact go on between countries. He
then proposed that one year be devoted to calling more
attention to this international cooperation, especially
for peace and in the interest of peace.

"... I am not going to ask yon to believe that inter-
national cooperation is easy, even outside the political
field. It requires strenuous and continuing efforts by
people from many lands and many cultures. It is a
course with many hurdles. In traversing this course,
we must be prepared for setbacks as well as triumphs.
... If humanity is to survive, and to make progress,
the peoples of the United Nations have no choice but
to cooperate."

International Cooperation Year was inaugurated at
ceremonies held at United Nations Headquarters in
New York City. At the ceremonies, seven prominent
men, each from a different cultural region, lectured on
"International Cooperation in Our Time." These out-
standing men contributed important opinions on vital
problems facing the people of the world. The editors of
World Book have selected parts of each lecture that
help set forth the challenge of the world today.

Alberto Lleras Camargo, former president of Colombia:

". . . Today it is not only the heads of government
or their immediate collaborators who can talk about
national problems, but an army of technicians who
have woven a network of complicated international
communications beneath the foreign offices that is the
despair of diplomats, but which is doing more to create
a world more suited to the needs of mankind than all
the treaties ever signed. That is the world of inter-
national cooperation. ... It is a world composed of
modest workers, technicians, people of good will, men
and women in sweaters, without diplomatic unifomis, a
vast middle class that will prove its unity to the world,
its ability to an increasing human race, attest to its
modernity, its sense of justice and organization.

"There is no longer any way clearly to define and
mark the fields of international cooperation, for daily
they become more and more fused with people's activi-
ties. This is the great humanist revolution in the sense
that nothing human is alien. Culture, science, educa-
tion, agriculture, international trade, atomic energy,
cartography and the measurements of the planet,
space, the rights of oppressed and unprotected minori-
ties, migratory currents, statistics, fertility problems and
mortality rates, narcotic drugs, special care for children,
colonialism, labor, transport, international currency,
encouragement and development of backward peoples,
telecommunication, meteorology, the law of the sea,
are not national problems but international questions.
. . . The interest of all peoples lies in their study and
adequate solution so that no one, on the pretext of
sovereignty, can interrupt or hold back the achievement
of human destiny. . . ."

Gabriel Marie d'Arboussier, /ormfr minister of justice
of Senegal:

"It is for us . . . to see that eveiything man knows,
that is to say, everything man can do, no longer con-
flicts with what he is, but allows his being to grow to
fit the dimensions of his world. . . . Man's new dimen-
sion is no longer that of the individual or the particular
moment, or even that of the nation, at a specific point
in a temporal process. His dimension is that of the
world and of the conquest of time. The great movements


that are sweeping our world along are therefore forcing
man, in order to avoid destruction, to exercise his power
on a world scale to master the future — and even the
past, by abolishing or redeeming it.

". . . Let us then create more and more institutions,
public or private, that can support the work of the
United Nations. Let us exchange our young people.
Let us pair our cities. And let us bring together our
intellectuals, our workers, our women, in order ... to
stimulate due interest in every act of international

"... International cooperation is the only solution
to the crises which continue to paralyze and vex the
world, for it attacks them at their roots. The United
Nations, which has already gone through a number of
crises, will never see the end of them unless international
cooperation becomes a reality and a rule of life for all

Edgar Faure, former premier of France:

"... Cooperation means recognizing the other per-
son; it means recognizing him wherever he may be. The
choice is indivisible, and the application is universal.
This truth imposes itself today on the mind of men.

"For it is wrong to think, as people are all too apt to
say automatically, that man has made progress in power
and techniques only. He has advanced by leaps and
bounds in intelligence and lucidity, in the thirst for
knowledge and the ability to understand. Those who
contest this fact are basing themselves on an aristocratic
concept of culture. They call to mind the procession of
thinkers who have dominated their century and they
say: 'They will never be surpassed.' . . . They forget
that if there is to be much humanism there must be
many humanists. They do not give a thought to the
multitude of humble souls who are just beginning to
have some glimmering of those "lights' which only used
to appear so sparkling because they were parsimoniously

". . . The civilizations of the past were imperfect
civilizations. They were civilizations for the use of their
elite only and within the limits of their territory. Now,
for the first time, we see the makings of a civilization
without frontiers or watertight compartments, universal
in both the extent of its geographical dimensions and
the depth of its social dimensions. Cooperation means
nothing else but that. . . . Just as famines and economic
crises have been warded off, so we shall perhaps find out
one day that the crises of civilization are not fatal

Mohammed Kamel Hussein of Egypt, a professor of

"International cooperation is the great creation of
our age, and only our age could have created it. At no
other time has the world possessed the resources, ma-
terial and scientific, iiecessaiy for the successful execu-
tion of this remarkable concept. Never before were na-
tions ready, morally and psychologically, to offer aid to
other nations on such a scale, having been for centuries
conditioned to look upon each other as rivals and poten-
tial enemies.

"". . . What will the world be like in the next 20
years? I am convinced that cooperation will have de-
veloped into partnership between nations in all that



is great or worthwhile. Teamwork, in which the com-
petence and not the nationality of participants is the
prime consideration, will be the universal rule as it is
now in all major scientific work. Great sources of energy
will be available to all, and may actually be pooled
when necessaiy. Enterprises useful to all the world, such
as desalinization of seawater, will have been achieved
with the fullest international partnership. I believe that
people will get into the habit of agreeing together. Dis-
agreement is, in some cases, a bad habit developed
through the tradition of rivalry betw een nations.

"I am also convinced that in a few years' time, there
will no longer be any talk of thermonuclear war. People
will wonder what the scare was all about. I do not
think that there will ever be any such war. The circum-
stances which can render nuclear war necessary are
inconceivable. No purpose can ever be served by world-
wide devastation. The degree of hatred or enmity be-
tween nations will have to reach red heat before such a
war is waged, and this will never take place once people
work together peacefully and usefully."

A. K. Brohi of Pakistan, a lawyer:

"Man is living in an electronic age. The scientific and
technological revolution of our time, by annihilating
distance, has reduced the planet on which man's lot is
cast to the size of a sort of vast but over-congested
global village. The network of communications which
girdles the planet, thanks to electronic technology, has
brought about what is, after all, a new phenomenon in
history — an extension of the brain of an individual man,
as a sovereign source of contact and communion with
the total family of mankind. Few there are who are
meaningfully aware of the implications of this extension
and the capabilities of man. His eyes today can see what
is happening anywhere, his ears can hear what is said
anywhere, and his words can be, in turn, heard all over
the globe. His muscle-power is steadily being withdrawn
from processes which contribute to the production of
wealth and the servicing of human needs. The produc-
tion of goods is being increasingly handed over to auto-
matic machines and the labor force supplied by man is
now seen steadily withdrawing its support from the
stimulation of economic activity. . . . (It) is being
progressively made available to the sei-vice of the higher
operations of the life of man. His time, his energy can
now be employed in the service of the higher life of the
mind, of the soul, and of the spirit.

"... The whole of earth is now the home for man to
serve the higher purposes of realizing the oneness of
mankind, no matter where he is. The earth sustains him
and, today, the food that he nourishes upon comes from
different parts of the world. The ideas and the informa-
tion on which depends the growth of his mental life are
contribiUed by thinkers \\ho are working in different
parts of the world.

"... The ideal for the modern man, then, is to con-
tribute to the making of humanity. He can make an
effective contribution towards its growth and develop
ment if he conceives of himself as a serviceable element
in a wider synthesis which is no other than the total life
of mankind. This is another way of saying that we have
to realize the Divine in histoiy and so establish the
Kingdom of Heaven on earth."

Mikhail Dmitrievich Millionshchikov »/ Russia, a

"... The energy resources available to mankind
today are very unevenly distributed and even more un-
evenly used. Asia, the most populous part of the world
. . . accounts for less than one-tenth of the world's elec-
tric power output. Although the populations of North
America and South America are roughly equal, the
former produces about 20 times more electricity a year
than the latter. Particularly disturbing is the fact that
this discrepancy is almost nowhere being reduced, while
in places it is increasing.

"... The rapid rate of growth of the population of
our planet makes the food problem particularly acute.
And this is not due to the scarcity of food resources, but
to the unsatisfactory way in which they are utilized. . . .
Yet if all existing material, scientific and technical re-
sources were mobilized and properly distributed, the
problem of food would be completely solved in a short

". . . Undernourishment, a low level of living, and
disease form a vicious circle of their own. Himdreds of
millions of people in the countries of Asia, Africa, and
Latin America are suffering from trachoma, malaria,
tuberculosis, leprosy, and sleeping sickness. It is pre-
cisely those countries that are worst off for medical care.

"... The further advance of scientific knowledge is
a basic prerequisite for all social progress today; this will
apply more strongly tomorrow. Consequently, no matter
how much . . . energy must be expended on grappling
with the vital problems of the present day, and the
feverish eveiyday rush, man remains the custodian of
ideas and scientific foresight. The scientific and tech-
nological revolution is still in its infancy; it is only be-
ginning to turn into a second industrial revolution.
Nevertheless, we can already see that there is a direct
cause-and-effect relationship between the thoroughness
of scientific research and the scale of change in the de-
velopment of social productive forces. . . . The isolation
of scientific thought must become a thing of the past.
Common sense demands that all scientists should be
brought into extensive contact with one another.

". . . In our era, science is called upon to revolu-
tionize not only the economic, social, and political
life of society, but also its very way of thinking. By pene-
trating and dominating all spheres of social activity,
scientific reason, as the most highly organized and most
disciplined mode of thought, can and must help to find
a rational solution for the problems of mankind."

Walter Lippmann of the United States, a commentator on
world affairs:

"... When we look beneath the surface, we shall see
that there is imderway what we may call the Great
Revolution, and it is upon this Great Revolution that
we must rely to bring about peace and stability on
which eventually the universal society can flourish.

". . . What is the Great Revolution? It is a radical
change in the human condition. It is a product of man's
advancing knowledge, his knowledge of how to control
the material conditions of his life on earth.

". . . The modern age differs from all the ages that
have gone before in that the conquest of poverty has
for the first time become a rational object of policy for
all states. This has come about because of a conjimcture
of discoveries and inventions arising from new knowl-


edge, from the sciences and the arts which have to do
with the conscious and deliberate regulation of human
aft airs — the regulation of the growth of population and
the planning of its environment.

". . . If the universal society is to live and flourish, it
must have some more interesting thing to do than to
stand by, and now and then to intervene in some quar-
rel when it breaks out. Defense is a primary and indis-
pensable fimction of any organized society. But not
defense alone. No less indispensable is the promotion of
the welfare of the members of the society. This is true
of all organized governments, and it is true of the United
Nations. While the United Nations must do what it can
to influence the powers to make peace, while it must do


what it can to keep the peace, while it must rally its
whole power and influence to avert big war, it will not
live by peace alone. That is too gray a horizon. The
horizon should be vivid with splendor and hope. The
masses of mankind from the poorest to the richest are
preoccupied above all else with the problem of living
with this Great Revolution which brings the promise
and the prospect of the fulfilment of their hopes. With
these promises and these prospects of the Great Revolu-
tion, the United Nations must identify itself."

Phillip Bacon, Paul Bohannan, Stewart E, Fraser, and

Ravmund F. Mikesell


Study Aids

Related Articles. For detailed infoiTnation about the
physical world, see E.\rth with its list of Related Articles.
For the story of man's progress, see World, History' oi-;
Prehistoric Man; Civilization with their lists of Re-
lated Articles. See also the foUowine;:

Countries and Continents

See the separate articles on each continent, country,
and dependency listed in the Nations oj the World section
of this article.



Far East

Pacific Islands


Latin America

Southeast Asia

Central America

Middle East

Other Related Articles





International Law

Public Health

Art and the Arts


Races of Man





















United Nations


Olympic Games





1. Nations of the World

M. Geography of the World

111. People of the


A. The Population of the World

B. The Races of the World

C. The Languages of the World
IV. Life of the World

A. The Cultures of the World

B. The Religions of the World
V. Arts and Recreation of the World

VI. Education and Science of the World
VII. Economy of the World

A. The Wealth of Nations

B. The Economic Development of Nations

C. The Work of Nations

D. The Interdependence of Nations
VIII. Challenge of the World

IX. Study Aids


How much of the earth's surface is covered by water?
What is the largest country? The smallest country?

Who worked out the first complete world weather

What is the largest continent? What is the smallest

What are some of the languages in the Indo-European
language family?

What three oceans make up the world ocean?

What is the most densely populated continent?

How are the rich countries helping the poor countries
speed their industrial development?

What was the purpose of International Cooperation

Why do most people of the world li\c on plains or in
hilly regions?

Books for Young Readers

Bacon, Phillip, ed. Golden Picture Atlas of the World
Golden Press, 1960. 6 vols.

Epstein, Edna. The First Book of the United Nations 2nd
rev. ed. Watts, 1963.

Hyde, Margaret. This Crowded Planet. McGraw, 1961.
This book describes the problems of the great increase
in the world's population. Exploring Earth and Space.
3rd ed. McGraw, 1963. This book describes the scien-
tific studies conducted by the International Geo-
physical Year.

Life (Periodical). The Epic of Man: Special Edition for
Toung Readers. Golden Press, 1962. An illustrated
survey of human history.

Sechrist, Elizabeth, and Woolsev, Janette. It's Time
for Brotherhood. Macrae Smith, 1962. This book de-
scribes individuals and organizations devoted to fur-
thering understanding among peoples.

Books for Older Readers

Bohannan, Paul. Africa and Africans. Doubleday, 1964.

A survey of the background of African life and culture.
Cooke, Alistair. One Man's America. Knopf, 1952. Views

on American life and manners.
Fr-^ser, Stewart E., ed. Governmental Policy and Interna-
tional Education, ^ohn Wiley, 1965.
Gaer, Joseph. What the Great Religions Believe. Dodd,

1963. An introduction to the major beliefs of some of

the world's great religions.
Mikesell, Raymond F., ed. U.S. Private and Government

Investment Abroad. LIniv. of Oregon Books, 1962.
Morgan, Murray. Doctors to the World. Viking, 1958. A

description of the activities of the World Health

Ward, Barbara. The Rich Nations and the Poor Nations.

Norton, 1962. This book describes the political and

economic problems of the underdeveloped nations of

the world.



The conlnbulor aj this arltclf is T. W'altfr W'allbank,
Professor Emeritus of History at the University of Southern

Online LibraryField Enterprises Educational CorporationThe World book encyclopedia (Volume 20) → online text (page 70 of 103)