HUMAN RESOURCES FOR ECONOMIC DEVELOPMENT

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80B01676R004200150014-7
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 31
• Document Creation Date: December 15, 2016
• Document Release Date: October 15, 2002
• Sequence Number: 14
• Publication Date: November 15, 1957
• Content Type: MF

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15 November 1957
MEMORANDUM FOR: Director of Central Intelligence
VIA; Deputy Director (Plans)
SUBJECT: Human Resources for Economic Development
REFERENCES: a. Memorandum dated 31 October to the
Assistant to the President from the
Secretary of Labor, the Deputy Under
Secretary of State (Robert Do Murphy),,
the Acting Director of USIA (S. Bradford)
and the Director of ICA. Subject: Human
Resources for Economic Development,
be Memorandum dated 18 October to the
Secretary of Labor, the Deputy Under
Secretary of State, the Director of USIA
and the Deputy Director for Program and
Planning for ICA from a working group
comprised of State, Labor, USIA and ICA.
Subject: Human Resources for Economic
Developmente
c. Memorandum from the White House dated
9 November to the Director, Central
Intelligence Agency requesting that he
comment on references A and B.-
1. This memorandum contains a recommended action (para. 6)
in the form of dispatch of a letter in reply to a White House memorandum
from General Goodpaster.
2. The 18 October memorandum was prepared by a task force
in response to a request by the President. The 31 October memorandum
reviews and summarizes the earlier paper and concurs in it. Neither
of these papers comes to grips with certain central aspects of the
problem and their recommendations appear to be a little on the
impractical side. Neither is exactly a model of incisiveness or
clarity.
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3. The two basic papers state, in effect, that:
a, lack of skilled personnel in underdeveloped countries
seriously impedes their capacity to advance economically and
politically and to absorb and benefit from foreign aid;
b. the U. Si S. R. and other Communist countries and the
U. S are making efforts to remedy this deficiency;
c, the U: S; effort, which has official and non-official
sponsorship, is uncoordinated and. is less than needed;
d, the U; Si effort should be increased by:
(1) exploring specific needs through canvassing field
missions, making certain special studies, and mounting
trial projects;
(2) framing proposals for expanded effort as a part
of the FY 1960 Mutual Security Program.
4. After considering referenced memoranda and other data,
this Staff concludes that:
a. Additional U. S. effort is warranted but certain questions
have to be answered before a meaningful program can be
devised, i. e., we do not know the number of people who should
have training, the content of this training, and determination of
which countries need it most;
b. Studies to establish the scope and content of the program
should be carried out by some one or more of the foundations,
and the Ford Foundation should certainly be consulted on this
aspect of the problem at an early date; enough work has been
.done in this field so that a preliminary estimate can probably
be made in short order.
c. If this program is to have any very decisive effect it
will obviously have to be very large, possibly larger than. the
resources the U. Si can practically muster for its support.
Why not solicit the interest, cooperation and contributions of
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other Western powers, particularly the Europeans, and possibly
using "NATO assistance to underdeveloped countries" as an
instrumentality?
d. The organization and coordination of this effort in
Washington will present difficulties. While the details of
coordination within the government could be handled by the
OGB, it will probably be desirable to set up some kind of high
level advisory board with public and private members;
(Chester Bowles would be a good choice to head such a board.)
5. These comments are not directly contradictory of the
proposals advanced in the referenced memoranda, although they
include some points of difference. We propose an investigation of
probable magnitude and content of the program through non-governmental
research. The memoranda advocate a sort of piecemeal approach to
this investigation conducted by government agencies; we feel that this
will not get the data needed. We propose a cooperative effort with
Western allies. The memoranda speak of coordination with such
international agencies as the United Nations and the World Bank. We
think that there would be obvious merit in actively interesting NATO
in this program. Our view that the organization and coordination of
the program should be through an advisory board and the OCB is not
reflected in the basic memorandum.
6. These suggestions are embodied in the draft memorandum
to the White House that follows as Tab A.
25X1
Acting Chief
Psychological and Paramilitary Staff
Attachments (4):
Refs a, b and c
Tab A
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 CONFIDENTIAL
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October 31, 1957
MEMORANDUM
To; The Assistant to the President
From: James P. ;Mitchell, Secretary of Labor
Robert D. Murphy, Deputy Under Se4ary of State eV&c4 *,
Saxton Bradford, acting Director, USIA r5.ow/L,
,n vv
J. H. Smith, Jr., Director, IC.A
Subject: Human Resources for Economic Development
In a memorandum dated April 12, you advised that the President asked
that a small task force be brought together to prepare a program for the
development of high level human resources as a part of foreign aid and technical
assistance programs. This memorandum provides an interim report in response to
the President's request.
The Task Force has reviewed the attached staff study analyzing this
problem and concurs with its general conclusions and recommendations. In
summary these are:
.A. Conclusions
1. One of the critical problems of the industrializing countries is the
development of high level human resources for economic development.
2. It is in the United States interest to assist free world countries
which wish to have such assistance in evaluating their needs in this area and
in taking necessary steps to meet such needs. Such U. S. programs are valuable
not only as a means of facilitating the economic development and promoting
economic and political stability in the countries involved, but also of in-
fluencing the direction of their development along democratic lines. Unless
the U. S. exerts a greater effort on both the governmental and private levels
to meet these needs, the USSR is likely increasingly to fill the gap in this
critical field.
3. The problem of high level manpower is related to but different from
the broader problem of supplying large numbers of technically trained people
at various levels in developing countries. It is concerned with the equipment
for their functions of a relatively small group of key personnel of essential
and strategic importance to economic development in each country.
. Past and present programs have provided a substantial amount of training
useful for economic development. However, such programs need to be reinforced
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C ONFIDE NTIXL
The Assistant to the President - 2 -
and expanded to adequately meet needs for assistance in the special area of
developing key and strategic personnel.
5. Action to intensify and improve present programs in this area would seem
to be feasible especially through further efforts to: (a) integrate training
with specific capital projects to meet immediate needs; (b) intensify present
programs aimed specifically at developing key personnel; (c) coordinate existing
programs to achieve the integration and concentration necessary; (d) give more
em,-)hasis to the creation and expansion of facilities within underdeveloped
countries directed toward the development of such personnel including, where
necessary, financial assistance for capital and initial operating costs of
such facilities; and (e) provide longer term assistance for the education of
potential leadership personnel in the U. S.
6. Efforts to develop needed high level manpower must be concerned not just
with provision of the necessary skills as such but with the motivations and
attitudes of the personnel involved and with the timely provision of suitable
employment opportunities and generally with effective utilization of such personnel.
7. Such programs, involving as they do the training of present and potential
leadership of the developing countries, necessarily come close to the sensitive
nerves of nationalism. They must, therefore, be carefully adapted to the needs,
interests and receptivity of each country.
B. Recommendations
The Task Force recommends a three-pronged attack on this problem:
1. Immediate action to meet cooperating country requests for additional
specific projects in this field, within the limits of existing legislation, funds
and programs; and otherwise to enhance the impact of current activities in this
area.
2. Immediate action to explore the specific needs and receptivity of co-
operating countries to a broader and more intensive U. S. program in this field
going beyond present legal and fund limitations. This would be undertaken through
a canvass of field missions and special studies as outlined in the staff study,
followed by the mounting of trial projects of any new types which may be developed.
U. S. resources for such an expanded program will also be studied.
3. Depending on the results of these survey and trial activities, the framing
of proposals for a special intensive program in this field for consideration as a
part of the FY 1960 Mutual Security Program. Such a special program might involve
a request for a specific and separate fund earmarked for meeting the high level
manpower development needs of underdeveloped countries not covered by present
programs.
In addition to its substantive contribution to U. S. foreign policy ob-
jectives, an intensified U. S. program in this field could, if properly presented
and carried out, have widespread appeal both in the U. S. and abroad. However,
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The Assistant to the President - 3
the Task Force recommends that no publicity be given to this subject at the
present time, and that no approaches regarding a possible special program be
made to any foreign government, until further studies have made it possible
to specify the nature and size of such a program.
Subject, of course, to the wishes of the President in this matter,
the Task Force therefore plans to proceed with the proposals for immediate action
listed above and to continue in being with a view to making a final recommenda-
tion on the desirability of a special program for FY 1960, as described above,
as soon as possible.
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CONFIDENTIAL
October 18, 1957
MEMORANDUM
To: James P. Mitchell, Secretary of Labor
Robert G. Murphy, Deputy Under Secretary of State
Arthur Larson, Director, USIA
John H. Ohly, Deputy Director for Program and
Planning, ICA
Froms. Daniel Goott, Department of State
Robert Oshins, International Cooperation Administratioi/
Bernard Wiesman, United States Information Agency,
Subject: Human Resources for Economic Development
The Working Group has prepared recommendations concerning
activities which will give greater emphasis to the development of
high-level human resources in economic development, as requested in
the 1'lemorandum of the Assistant to the President to each of you.
Leo R. Werts, Department of Lab
The recommendations in Attachment I are submitted for
your policy approval. If these are approved, it is suggested that
you send an interim report to the President. A proposed report is
attached (Attachment II).
The Working Group recorAmends no publicity at this time
and that the program be referred to as: "Human Resources for Economic
Development" since the term "High-Level Human Resources" may be mis-
construed abroad.
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11%.XORA NDU ICI
Subject: Human Resources for Economic Development
As requested by the ?resident, a small task force has surveyed
problems relating to the above subject, reviewed existing programs in this
area and is suggesting better ways of coordinating them. On the basis of
this analysis it was to suggest a broad orogram for the development of high
level human resources as a part of foreign aid and technical assistance
programs.
The task force has now completed its preliminary studies and makes
herewith an interim report and recommendations. Its conclusions and.recom-
mendations are summarized below. The body of the report follows:
CONCLUSIONS
1. One of the critical problems' of the industrializing countries
is the development of high-level human resources for economic development.
The shortage of adequately trained administrators, managers, engineers and
other categories of high-level manpower and decision makers represents a
major impediment to balanced economic development. These countries are
dependent upon the advanced countries for assistance in developing these man-
power resources. It is in the United States interest to assist interested
countries in evaluating their needs and training these resources not only as
a means of facilitating their economic development and promoting economic-and
political stability but also to influence the direction of their development
along democratic lines. The communist world has already evidenced the importance
which it attaches to this problem by its many offers of aid and programs in
which it is already engaging. Although complete data are not available, it is
known that the USSR has, for example, invited substantial numbers of skilled
workers, engineers and future managers from many countries to study at educa-
tional institutions within the Soviet Union. Unless the United States exerts
a greater effort on both the governmental and private levels to meet these
needs, the USSR is likely increasingly to ;fill the gap in this critical field.
2. The problem of high-level manpower is related to but different
from the broader problem of supplying large numbers of technically trained
people at various levels in developing countries. It is concerned with the
equipment for their functions of a relatively small group of key personnel
of essential and strategic importance to economic development in each country.
There are two key elements to the problem: (a) upgrading existing high level
manpower; and (b) developing adequate numbers of properly trained and oriented
personnel to meat future needs.
3. Past and present programs have provided.a substantial amount of
training useful for economic development.
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However, action to intensify and improve present public and private
programs in this area would seem to le feasible especially through special
efforts to: (a) integrate training with specific capital projects to meet
immediate needs; (b) give more attention to the developr,tent of a relatively
small group of key personnel; (c) coordinate existing programs to achieve the
integration and concentration necessary; (d) give more emphasis to the creation
and expansion of facilities within underdeveloped countries directed toward the
development of such personnel; and (e) provide longer term assistance, where
necessary, for the education of potential leadership personnel in the U. S.
4. one of the principal limitat1_ons on development of institutions
within underdeveloped countries to supply needs of high level manpower has been
lack of funds to meet the capital and operating costs of establishing, expanding
and improving training and other relevant institutions and facilities. Local
currencies generated by PL 480 sales and other U. S.-owned or jointly controlled
local currencies offer a possible means of 'supplementing technical cooperation
funds for this purpose, and other economic aid might perhaps be adapted to meet
a part of this need.
5, Efforts to develop needed high level manpo4er must be concerned
not just with provision of the necessary skills as such but with the motivations
and attitudes of the personnel involved and with the timely provision of suitable
employment opportunities and generally with effective utilization of such per-
sonnel.
6. Such programs, involving as they do the training of present and
potential leadership of the developing countries, necessarily come close to the
sensitive nerves of nationalism. They must, therefore, be carefully adapted to
the:needs, interests and receptivity of each country.
7. Such programs involving as they do expanded use of U. S. resources,
both.public and private, relationships with business foundations and institutions
of higher education must be expanded and their full support and endorsement
sought.
MC OMPIENDATiONS
1. For immediate implementation:
(a) That an instruction be sent to posts abroad outlining
the nature of the problem and requesting them to
analyze and appraise, from data available to them, the
needs of the countries in question for development' of
high level manpower of the typo envisaged, and the
degree to which current programs meet them; and to
report their estimate of the host government's attitude
towards a program, modified or expanded, designed
specifically to meet them. Posts should be instructed
not to approach the host governments with specific
inquiries at this time.
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(b) That a small group of manpower experts be brought
together immediately, to serve as an advisory staff
in evaluating the replies from the missions, and in
selecting a few countries in the underdeveloped areas where
apparent needs and other conditions would justify the
sending of small survey teams to make on-the-spot
studies.
(c) That, depending on mission replies and the evaluation
mentioned above, small survey teams be sent to a few
selected countries to make more intensive studies.
(d) That subsequently with the assistance of the manpower
experts, the mission replies and the on-the-spot
studies by the survey teams will be examined in an
effort to establish the level and character of training
needs in excess of that 'currently provided by all
programs. The principal criteria for this estimate
should be (i) the meeting, at essential levels, of
present needs, and (ii) the equipping of underdeveloped
countries, at the earliest practicable data, to meet
their expanding needs.
(e) That present and feasible additional projects and acti-
vities of existing types in this area be given special
attention by ICA and IES in carrying out Fiscal Year
1958 programs and in developing Fiscal Year 1959 programs.
If necessary, a small portion of special aid funds should
be made available for this purpose in Fiscal Year 1958.
(Attachment I lists examples of current projects.)
(f) That special consultations be held between ICA, Export-
Import Bank and IES' on the possibilities of so arranging
their programs as to improve mutual coordination and
support in the field of managerial and technical training;
and that they examine ways and means of coordinating and
supplementing these programs with and by the efforts of
private organizations.
This would call for (1) special consultations with repre-
sentatives of industry, foundations and institutions of
higher education to discuss and acquaint them with the
problem, seek and support their coordinated efforts over-
seas and (2) appraising generally the U. S. resources and
how they may best be utilized to support such expanded
efforts overseas.
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(g) That ICA and the Export-Import Bank take any additional
steps which may be necessary to make certain that the
skilled, technical and managerial manpower requirements
of all capital projects financed by them are met as.
integral components of the projects, that such training
requirements be eligible for financing as part of the
capital cost, and that adequate use of technical coopera-
tion funds be made to supplement this training.
(h) That, similarly, essential training components of capital
projects be eligible for financing by the new Development
Loan Fund to the extent consistent with the lending
criteria of the Fund.
(i) That ICA and the Department of State, together with the
Bureau of'the Budget, be requested to examine immediately
the possibilities of expanding the uses of PL 480 local
currencies for educational and training purposes under
the terms of Sections 104(g), 104(h), 104(i) and 104(j)
of that Act, to expand the training of high level manpower
within underdeveloped countries. In this connection
reference is made to Section'400(c) of the Mutual
Security Act of 1954 as amended by Public Law 85 - 141
(85th Congress, S. 2130) - otherwise known as the Mutual
Security Act of 1957.
(j) That ICA and IES should undertake, within the limits of
present budget and legislative authority, limited pilot
projects in Fiscal Year 1958 and Fiscal Year 1959 designed
to test the effectiveness of several types of activities
not generally included in present programs, including
specifically; (1) assistance to cooperating countries in
covering capital and initial operating costs of special
institutions and facilities for the development of high
level manpower; (2) special in-service, U. S. and third
country training programs and institutes in leadership,
per se; and (3) longer-term scholarships for potential
key personnel.
2. For eventual implementations
Depending on the outcome of the further studies and pilot
projects outlined above, the Administration be prepared to
consider requesting a special program including changes in
the legislative restrictions on the use of funds in Fiscal
Year 1960. Such changes might involve a request for a specific
and separate fund earmarked for meeting the high level manpower
development needs of underdeveloped countries not covered by
present programs.
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3. Oth nr :
That no publicity be given to this subject at the present
time, and that no approaches regarding a possible special
program Le made to any foreign government, until further
studies have made it possible to specify the nature and
size of such a program.
With reference to the above recontnendati.ons, the task force
wishes to note particularly that 1(f), concerning consultation
between ICA, IU9 and Export-Import Bank, has been cleared-with
and concurred in by the Export-Import Dank.
DISCUSSION:
Problem.
In a memorandum dated April 12, the Assistant to the President advised
that the President had asked 'that a small task force be brought together to
prepare a program for the development of high level human resources as a part
of foreign aid and technical assistance programs." This request followed a
statement on the problem presented to the President.
The major conclusions of the basic paper were:
1. That a shortage of suitable high level manpower was likely to be
a serious bottleneck in the rapid development of underdeveloped areas along
democratic lines.
2. That., while the underdeveloped countries themselves and the
various bilateral, multilateral and private technical cooperation and economic
programs were making many significant contributions to overcoming this shortage,
this aspect of the problem has received inadequate emphasis in relation to the
need.
3. That there was, therefore, need for further intensive efforts to
develop an orderly appraisal of the specific. magnitude and dimensions of this
problem in various underdeveloped countries and to assist them in meeting the
needs so identified.
Policy Guidance
The policy guidance contained in Mr. Adams, memorandum cited above
is ,upplemented by current basic U. S. policy, which specifically provides:
Dangers to Free World stability are particularly acute
in the less developed areas.,,.The task of speeding up
economic growth and promoting stability presents a multi-
tude of political, social and economic problems, and calls
for some ch.,uzges in traditional habits and attitudes and
for greatly expanded training in administrative skills.
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U. S. financial assistance alone cannot produce satis-
factory economic growth in less developed areas....In addi-
tion to the provision of financial assistance, the United
States should devote more effort (by training programs, aid
to local institutions, and providing competent advisers) to
the development of local leaders, administrators and skilled
personnel, recognizing that such people are essential for
using and managing other resources effectively.
Definition of High Level Human Resources for Economic Development
The task force has adopted, for the purposes of its study of. the
problem, the following definition of the term "high level human resources"
in the context of economic development requirements.
"High level human resources" includes those persons who are, or
will in the-future be, in fairly high administrative positions and those who
provide, or will be needed to provide, strategic leadership in the economic
and political development of their countries. The term covers three broad
classes of personnel--planners, operators or managers, and trainers of
others--with the test in each category being their essentiality to economic
development. Specifically, the term includes:
1. In public administration:
(a) Administrative personnel in charge of major
government offices,
(b) Key professional personnel, with high training,,
who constitute the "top manpower". of such Do-,
partments.
2. In industry or business, agricultural and labor
organizations;
(a) Entrepreneurs, managing directors, and all executives
above the level of first-line supervision,
(b) Staff specialists, technologists and experts
including scientists, engineers, labor officers,
etc., who are thought of as "part of management.'%
3. In educational institutions:
(a) University administrators, deans and other
executive personnel,
(b). Chairmen of Departments and key professional
personnel in vital fields such as engineering,
economics, public administration and business
organization and management.
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It is recognized that the needs of particular countries will vary, and that
the above categories must be flexibly interpreted.
Review of ?resent Programs
Organized inter-governmental programs for the transmission of technical
skills and knowledge to the underdeveloped countries date only from the end of
World War II, principally since 1950. Since then such programs have been
instituted by the United States, the United Nations and its specialized inter-
national agencies, the Colombo Plan nations, and by a number of private founda-
tions and other private organizations. Data on activities of the Soviet Union
in this field are not available but it is known that that country has provided
considerable technical and general education and training for the people from
the underdeveloped countries and has sought vigorously over many years to reach
and influence key personnel in education, government, labor organizations and
the professions in such countries.
A rapid review of available evidence indicates that a probable total
of some 30,000 to 35,000 persons from underdeveloped countries may be receiving
advanced education or training each year in fields or subjects useful for
economic development, in foreign countries outside the Sino-Soviet Bloc. Of
these an estimated 9,000 to 10,000 receive education or training under three
programs (UNTAA,, ICA, and Colombo Plan) specifically designed to afford training
for economic development.l/ These same three programs supply annually, on an
average,' some 6,180 experts to underdeveloped countries for technical advice
and assistance in training. The activities of the three. programs are supple-
mented indirectly by those of the Department of State's International Educa-
tional Exchange Service'and of private foundations and organizations. Statisti-
cal tables annexed to this report give details of the available evidence.
Of the 9,000 to 10,000 trainees currently accommodated by the three
special programs each year, ICA accounts for some 6;000 to 7,000, UN Technical
Assistance programs for about 1,800, and the Colombo Plan program about 1,500.
The numbers involved in each program have shown a rising tendency. Of the
6,180 experts provided to. underdeveloped countries, about 4,000 are supplied
by ICA (including contract personnel), about 2,000 by the UN Technical Assistance
program, and about 180 by the Colombo Plan pro ram. All three programs are
concentrated chiefly in Asia and the Far East ((from India eastwards) and Latin
America.
olombo Plan arrangements are not properly a single, organized program,
The C
but rather a series of bilateral programs carried out within the framework
of the Colombo Plan forum.
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z Their efforts are indirectly supplemented to a certain extent by%
the ordinary educational exchanges between nations. UNESCO data indicate
that of slightly less than 80,000 foreign students enrolled in 17 countries
in 1954-55 at college .,r higher lev ls, no less than 15,700 (57 per cent)
were from underdeveloped countries)/; and of a similar 80,000 enrolled in 19
countries, 67 per cent were studying in the fields of social science and law,,
medicine, engineering and technology, or natural science. Similarly, data
provided by IES (Department of State) indicate that of 4,443 grantees from
all countries studying in the U. S. in 1956, a total of 3,415 (76 per cent)
were pursuing studies in the social sciences, natural sciences, medical sciences,
engineering and education.
Beyond this, much valuable in-service training and transmission of
technical knowledge is directly associated with various other types of technical
cooperation projects and in connection with capital projects in underdeveloped
countries-financed by the Export-Import Bank, the International Bank for Re-
construction and Development and ICA. These Agencies normally, in their lending
operations, satisfy, themselves that the skilled manpower and management necessary
for successful operation of proposed projects are either available or arranged
for, which often involved a stipulation for the services of competent engineering
and management, firms to train management and skilled workmen as well as to
construct plant. In programs of this kind it is generally impossible to separate
out the training component from the rest of the contract, and no overall esti-
mates of its magnitude are available.
Certain activities of the International yank for Reconstruction and
Development in this field are worth special mention. Aside from financing
capital projects, it conducts at the request of member governments broad
economic surveys of countries and regions and formulates positive economic
development programs for the consideation of the requesting governments.
Fifteen such surveys have been made.-' In the process there is inevitably
a very considerable amount of "training" of government officials and others in
rational ways of approaching the problems of economic development. In 1955
the IBRD established an "Economic Development Institute" at its headquarters
in Washington, with financial support from the Ford and Rockefeller Founda-
tions. The objective of the Institute is contributing "to an improvement in
the quality of economic management in government and helping officials from less-
developed countries to equip themselves for dealing with the practical problems
of development." The officials attending "occupy senior positions in finance
ministries, ministries of economy, central banks, planning bodies of other
government agencies responsibile for economic development plans and policies."
Fourteen officials from 14 countries attended the first six-months course ending
in June 1956 and 18 officials from 16 countries attended the second course be-
ginning in October 1956.
Classifying as underdeveloped all countries of Asia (except Japan), all countries
of Latin America (except Cuba), the Middle East and Africa (except Union of
South Africa), Southeast Europe (except Hungary), and U.K. and French Colonial
Territories.
2/ British Guiana, Ceylon, Co.lpmb~a, Cuba, Guatemala, Iraq, Jamaica, Jordan,
Malaya, Mexico, Nicaragua, Nigeria, Surinam, Syria, Turkey.
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The ICA, UN and Colombo Plan programs in general appear sufficiently
coordinated, in a loose sense, to avoid serious duplication or overlapping.
Coordination is sometimes provided by the government requesting assistance;
several such governments have established coordination committees to meet the
problem. Since 1952 United States A ssion chiefs and UN resident representa-
tives in the field have been under instructions from their respective head-
quarters t o.establish liaison with each other and notify` each other of requests
for assistance. Coordination with Colombo Plan programs, which is facilitated
by'U. SI/participation in Colombo Plan meetings, is of a similarly informal
nature .--
The International Educational Exchange program of the U. S."Department
of State, though operated under legislative authority having nothing to do with
economic development or technical cooperation as such, supplements to some extent
the technical training and development afforded by the other programs. The
program is well coordinated with the activities of private organizations such as
universities, research organizations, etc., and is being increasingly coordinated
.(chiefly through liaison at'missions in the field) with the ICA program. The
program contributes to the development of high level manpower resources by
providing training to foreign graduate students, teachers, researchers and
opportunities for observation in the U. S. for "leaders" who are chosen as key
people in their countries.
Finally, there are the activities of the private organizations, such
as the Ford Foundation, the Rockefeller Foundation, various other organizations,
and especially of private business firms who in the course of their business
engage in a great deal'of training and personnel development. No data are
available on this sector of the problem and in only few cases is there any
effort to coordinate their activities with government programs.
All of these "external" programs are, of course, supplementary to the
large scale regular and special public and private programs of the various
developing countries themselves to train and develop their own people, both
at home and abroad, to meet their needs for technical and managerial manpower.
In general, the education or training in the U. S. or third countries
afforded under these governmental programs of assistance is at the college,
post-graduate or in-service level, and is limited to a maximum of-one year,
Specialized, non-academic training is frequently for shorter periods. The
more strictly academic training afforded by the Department of State's TES
program, and by private scholarship arrangements, is usually similarly limited
in time, though some scholarships are renewable for further periods.
Technical assistance projects of the UN, the ICA and the Colombo Plan
programs located in'the underdeveloped countries, especially the extension
college contract program of ICA, include assistance in the establishment, ex-
' pansion, and equipping of local technical educational and training institutions
17 The S outheast Asia 'reaty Organization (SEATO) has conducted a survey of
skilled labor needs in the area, but this is more concerned with need for
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within the underdeveloped countries. These projects are undertaken in coopera-
tion with the recipient country, the external assistance usually being limited
to assistance in organization and curricula determination and the provision of
equipment and some initial staff. In addition, both JN and ICA. arrange local
or regional seminars of short duration on various subjects related to economic
development.
Some ICA programs have also been undertaken to provide special training
for the entrepreneurial and managerial groups in government and private business.
ICA has arranged several regional seminars for them, has encouraged the establish-
ment of local business management institutes, andooprationewitht rivattes.
organizations has arranged similar seminar type gatherings
Limitations of Present ~'rograrns
The first notable characteristic of the various programs is that they
are dispersed over the whole range of educational and training needs of the
sufficiently on or emphasize
the and
developing countries
efforts to develop
The second notable characteristic is that in general the training
afforded is advanced training of those already employed LXCep eforfielthed ofcacti ity,
and is, in general, limited to a maximum of one year. . the of the UN, ICA and the done to assisting then preliminaryibasicttraining.
training facilities,
necessary to equip personnel for advanced study or training.
'ihe third notable characteristic is that most of these programs are
the and aintergovernmental level,, with
littlzd on the governmental
of private organizationsiinlthis
little done to relate them
field.
The specific limitations on current ICA programs in.this area are
two-folds (1) those inherent in the situation, such as the "absorptive
capacity" of underdeveloped countries and the limited availability of quali-
fied U. S. personnel, and (2) the limitations imposed by legislative and
budgetary restrictions on the one hand, and by administrative policy on the
other.
The "absorptive capacity" of underdeveloped countries for advanced
training is not unlimited. It is determined by the numbers of individuals with,
the pre-requisite level of qualifications and by the ability of the countryhere
concerned to'spare them for the period of absence required for training.
few qualified personnel exist, even fewer can be spared from the current opera-
tions either of government or business.
Nor is the number of qualified experts eligible for assignment to
underdeveloped countries unlimited. Engineers, technical experts, and quali-
fied teachers in practically all fields areinsshort supply cinithe Unthemited
States, and ICA has encountered increasing difficulty
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The' situation mi ht be eased by drawing on qualified non-U. S. personnel as
appropriate, in sel.~cied situations, as ICA has done in oxuanding its ""third-
country" training grog;ram; but in the world as a whole qualified experts are
relatively scarce.
The legislative and budgetary limitations on ICA programs are also
significant. Under existing legislative authorization technical cooperation
funds can be used only for the supply of technical advisers and experts., the
technical training of personnel of underdeveloped countries, and the provision
of "demonstration" equipment, but not for "bricks and mortar," or the operating
costs of local training facilities abroad. Technical cooperation funds might
be, but have not generally been, supplemented by other foreign aid funds and
PL 180 funds for these purposes. Similarly, technical cooperation funds cannot
be used to finance the "capital cost" of expanding the facilities of 4merican
educational and training institutions 9 lready strained) to accommodate an
increasing influx of foreign .students._
The administrative limitations have consisted in the past chiefly of
(1) relatively little emphasis on "the human component" of economic development
aslan essential and integral element of a successful economic development pro-
gram, (2) a concentration on providing for the immediate and purely technical
needs of projects and programs, rather than specifically fitting the training
program into a long.-range concept of creating, in underdeveloped countries,
a class of qualified technical administrators.andexperts capable of formulating
problems correctly, arriving at rational solutions, and giving forceful leader-
ship.
.?asically, what underdeveloped countries need is a relatively small
group of !tdcision-makers," who can be classified roughly as "planners,"
""operators and managers," and "trainers of others." In the beginning of an
economic development process the need for "planners" - government officials
and private entrepreneurs - comes first, followed by the need for "operators
and'managers" - technicians, experts and managers - as projects are completed;
while "trainers of others" are needed from the very beginning to supply the
flow of trained personnel for the other stages. But as economic development
proceeds the need for key trained personnel at all levels expands rapidly.
Finally, it appears that there might well be some greater degree of
coordination and cooperation among U. S. Government Agencies concerned with
the development of foreign personnel and the promotion of economic development.
The activities of ICA could perhaps be coordinated somewhat better with those
of the International Educational Exchange Service and with the lending opera--:
tions of the Export-Import Tank. Whether it is possible similarly-to coordinate
government activities with those of private organizat?ons in the field is not
known, but should be explored.
1 The same limitations ordinarily apply to UN programs.
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We specific needs of underdeveloped countries for development of
high level human resources of the kind en7isa ed 1by this paper cannot at
present be evaluated from data available in lIashington. It is impossible
therefore to say how far the programs reviewed above go to meet them. It
is significant to note the common recognition of need for the expansion of
managers and administrators,. Those responsible for economic development in
developing countries as well as informed observers are placing increased
emphasis on the significance and importance of managers, administrators and
managerial technicians in economic development.
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TABLE I. IC& TRAINING ACUITIES, FISCAL YEARS 1955-57
Arrivals of Participants in U. S. and Third Countries
Year
19 6
1957*
U.S. Third Countries Total
4,946 566 51 1
41734 1,045 5,779
2075 748 3,623
* Through December 31, 1956 only
By Field of Activity
1955 1956 1957
Agriculture & Natural
Resources 1,075 1,242 596
Industry & Mining 2,044 1,540 789
Transportation 291 322 282
Labor 543 582 270
Education 623 635 716
Health & Sanitation 391 635 452
Public Administration 441 553 346
Com.Develop.& Soc. Welfare 79 47 53
Housing 25 30 335
5
General & Misc. 193
Through December 31, 1956 only.
B Area of Origin
Area 1955 1956 1957
Europe 2,083 1,479 567
Near East 925 963 670
South Asia 239 188 206
Africa 93 126 70
,Far East 1,0#37 1,665 1,063
Latin America 1,085 1,358 1,047
* Through December 31, 1956 only.
Sources Hearings, MS Appropriations (1958), Subcommittee of House
Committee on Appropriations, p. 279.
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`i'. T?7, ~ 1 ? COL0 li`ll t T?ril'i TI(AINI'w`.f, 1950- 66
Ne:;ot,ial,'ions for !TY..li.nin,, Corlplet::d >h. ;Ti: I UIIir3r oaf TraiIlees
from each JounIr.y ray Years, 'i uchnical Cooticraticn `:chemo, July
1950 to June 195
Country
1950-92
1952-53
19 53-51.1..
19514-55
1955.56
Brunei
-
2
-
2
2
Burma
-
7
21
37
132
Cambodia
-
-
-
2
8
Ceylon
121
147
138
106
198
India
198
154
102
-1.02
209
Indonesia
16
60
55
156
291
Japan
-
-
-
-
3
Laos
1.
1
Malaya
27
38
114
54
129
Nepal
5
5
5
195
93
N. Borneo
la
7
2
13
30
Pakistan
05
118
115
175
221
Philippines
25
21
58
63
Sarawak
6
6
2
16
20
Singapore
1
15
29
211
33
Thailand
4
13
4
22
53
Vietnam
-
-
-
4
66
TOTALS 548 597 508 1,022 1,522
Sources Report for-1955-56 by the Council for Technical Cooperation in
South and Southeast Asia, pp. 12-13.
By Field of Training
Field To Doc. 52 Jan 53-June 54
1954-55
1955-56
Education
67
68
170
269
Medical & Health
90
78
12)
232
Food, Agr. & Forestry
1211
144
l ?
198
Power & Fuold
97
26
23
17
Engineering
86
106
139
310
Industry & Trade
54
77
f38
124
Transport & Communic.
92
40
63
81
Administration
116
150
162
167
Social Services
21
12
18
41
Statistics
44
39
18
12
Fisheries
5
4
1
11
Cooperatives
-
-
21
16
Banking, Finance, Ac-
countancy, Taxation,
Insurance, etc.
51
62
23
74
TOTALS
M
847
806
1,022
1,522
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TABLE III. UN TECHNICAL ASSISTANCE OPERATIONS, 1953 56
Year Experts Fellowships Equipment* Total Cost*
1953 1,825 1,195 1,701 17,818
19511 1,652 1,524 1,377 15,112
1955 2,108 2,431 2,390 21,310
1956 2046 2,128 3,302 25,322
* Value in thousands of U. S. dollars
Sources Data from Annual Report of the Technical Assistance Board,
1956, p. 8.
By Area (Expanded Program)
Area 1953 1954 1955 1956
Experts Fell. Experts Fell. Exerts Fell. Experts Fell.
Africa 171 43 161 186 215 282 288 156
Asia & FE 631 365 517 242 618 525 744 734
Europe 175 315 163 453 157 609 187 430
Latin Amer. 423 269 379 344 557 552 706 1158
Mid. East 392 203 381 289 512 463 515 321
Sources Data from Annual Report of the Technical Assistance Board for
1956, pp. 96-105.
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TABLE IV.
l OitviGN `.;1UDE ,~'S E:ii'ULLED I;; "a CET- h,` ' :IL'/,.~
I:+: ~'I1lJTIOi S
l
Countries
No
Reliable Inf orm:ition
No. Countles
Year Tota
.
1954. 12L,000
56
38,000
N. A.
43
1955 126,000
56
116,000
Source: "Study Abroad", UNESCO, 1957, P. 15.
197 -1955, EY CO1J `FRY TF (JRIGIN
Total Number
79,703
Number from Underdeveloped Countries
45,700
3f Original table gives breakdown by country of origin and country of
study. included in above total for underdeveloped countries are
students from all countries of Asia and Far East except Japan, all
from Middle East and Africa except Union of South Africa, all from
Latin America except Cuba, all from southeast Europe, except Hungary,
and all from U.K. and French colonial territories.
Sourcei Data from "Study Abroad", UN' SC0, 1957, Pp - 30-33.
TABLE VI. FOREIGN S`1'UD'EI%TIS E-N'ROLLED IN 19 SELECTED COUNTRIES, 1954-55,
BY FIELD OF STUDY,*
Total Number
79,398
Studying :
Humanities
19,611
Education
1,613
Fine Arts
2,309
Law
5,772
Social Sciences
9,258
Natural Sciences
11,177
Engineering and Technology
12,732
12r 2
Agriculture 11913
Non-specified 1,259
TABLE V. FOREIGN STUDENTS ENROLLLT) IN 17 SELFCTE') CC'UNiRIES,
Covers same countries of study as Table Vabove, with China, Colombia
and Greece added and Guam and Hawaii dropped as separate entities,
Source: "Study Abroad", UNESCO, 107, pp. 34-35.
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A'ITACHr'UT I
Technical Asa:Ls Lance -Pro jects 'i1hich Contr buts to the Jievolo rnent of
Hicth-Level Human P.esourccn
1. Overseas Workshops; EPA 1.014, "Jorkshops on ;ducation for I?Iana;emont";
workshops on management similar to that held for ICARE, Chile; encouraging
and supporting management workshops for top level governmental officials;
specialized workshops abroad in such fields as accounting, budgeting, records
management, in-service training, etc. as being utilized in many countries for
working level administrators.
2. Overseas Conferences. National and regional professional meetings that
encourage dissemination of management experiences and knowled~es such as the
regional conference of public administration being sponsored by the Institute
of Public Administration, Philippines; the regional conference of accounting
which is sponsored by the Philippine Accountants Society; the annual meetings
of the International Institute of Administrative Sciences; the CIOS meetings'
in Europe; etc.
3. Leader Workshops and Trainer Projects in public and private management
organized in the _. nited States for national or multi-national participation
quch as EPA 329, "Training' of European Teachers of Business Administration";
the Pakistan project for top governmental officials; the Vanderbilt project;
the land reform conference at the University of Wisconsin; specialized university
projects such as the Tax Study Project at Harvard and the Industrial Administra-
tion project at the Carnegie Institute of Technology.
4. Individual Training and ObservationrProjects in the United States for
nationals of middle and upper management, and for scientific and technical
training.
5. U. S. Universities and Professional Organizations Conducting Conferences
and Specialized Training work - e.g. The American Management Association, the
Publicrsonnel Association, the American Society for Public Administration,
arrangements for specialized attention at U. S. universities, etc.
6. Inter-University Contracts to develop national educational centers in
universities or as governmental academies in public and/or business administra-
tion education such as those in France, Iran, the Philippines, Vietnam, and
Japan.
7. Expanding National Professional Interests through such organizations as
CIPM which encourage formation of more local professional interested groups
for the support of management training in their countries, such as is being
done by ICARE in Chile, the Austrian Association of Manufacturers recently
fornnd in Vienna, the Chapter of the International Management Association
recently established in Japan, etc.
8. U. S. Universities Support of Executive Training projects sponsored by host
institutions abroad such as Harvard Executive Development Program run under the
sponsorship of Keio University, Tokyo; the summer workshop for teachers of
business ~lpiprdlepe>el~$O~~1hI~ddF~ ~1R~~7619141~?1~~Y of
Ed.uG ation, Prance,
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 Approved For Release 2002/1 .
THE WHITE HOUSE
MEMORANDUM FOR
L,X
I
)U R004200150 14-7q. fL4/
November 9, 1957
The Honorable Allen Dulles
Director
Central Intelligence Agency
Governor Adams asked if you would be
good enough to look into the attached report,
and let him have the benefit of any comments
you might have on it.
x4i
. J. Goodpater
Brigadier General, USA
i
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Tab A
Draft Memorandum. to the White House from the
Director of the Central Intelligence Agency
1. With reference to the memoranda on Human Resources for
Economic Development, forwarded under a White House memorandum
of 9 November 1957, I concur fully with the proposal for additional
U. S. effort to aid underdeveloped countries in training executive
personnel for government and private enterprise. Such a program is
essential if our economic aid to these countries is to achieve fruitful
use and counteract Communist efforts in this field.
2. Before the specifics of such a program can be framed in terms
of scope or content, some fairly comprehensive studies will be required.
I think that these will be best accomplished outside of the Government,
through one or more of the foundations, but certainly including the
Ford Foundation. The object would be to ascertain how much and what
kind of training is needed to make a decisive impact, and just where it
is needed most, so that effort is not spread too thinly for any real effect.
3. It appears likely that the total effort adequate for a solution to
the central problem would be costly in funds and manpower. Our allies
have the same interest in the problem as we do, and are in a position
to contribute ideas, manpower and some funds. This is particularly true
of our NATO allies. Consideration should be given to enlisting their
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participation, possibly throp.gh some such instrumentality as a "NATO
Plan for aid to underdeveloped countries. " This could result in a
significant contribution to solving the problem and it would have a
beneficial effect on. NATO solidarity as well.
4. It is obvious that this program would require a great effort,
both within and without the Government. To give this effort impetus,
direction, organization and. coordination will present a good many
difficulties. I believe that this aspect of the problem can best be
handled by setting up a high-level advisory board with public and
private members. It occurs to me that, given his interests and
experience in this field, Chester Bowles would be a first-rate choice
to head such a board. The details of coordination of this effort within
the Government can, in my view, best be taken care of by assigning
the responsibility to the QCB.
5. While it would appear that the Central Intelligence Agency
would not appropriately be directly involved in the proposed program,
we are, of course, ready to contribute in any way that appears
feasible and desirable.
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