The European Investment Bank's Promotion of Industry in the Associated African and Malagasy States

An insistent demand from developing countries for capital to finance their economic growth has characterized the second half of this century. The transfer of resources from industrialized countries has, however, encountered difficulties, on the one hand, because of growing economic nationalism which has limited the scope for direct investment and, on the other hand, because of the emergence of excessive debt service burdens in developing countries. As a result, a variety of ways of transferring resources, which would be acceptable to donor countries as well as to the recipients, have had to be explored. One of the means to which the European Economic Community has resorted is the extension of the functions of the European Investment Bank, working in conjunction with the Economic Development Fund, to provide financial assistance outside the territorial limits of the European Community under a series of agreements including successive agreements with the Associated African and Malagasy States.