The growth of develop-for-import projects

This article examines develop-for-import projects financed by development loans and mixed credits supplied by export-import banks and other financial institutions of the central governments of France, Japan and the Federal Republic of Germany. The projects discussed are those producing bauxite, alumina, aluminium, chromium, copper, iron, manganese, molybdenum, nickel and tungsten, in developing market economies, Australia and Canada. The article estimates the volume of these metals committed to France, Japan and FRG to pay for loans and credits, examines the types of financial arrangement involved in develop-for-import projects, and considers the compatibility of these arrangements with the multilateral liberalized world trading system developed by the General Ageement on Tariffs and Trade (GATT) over the past 40 years. To the extent that these arrangements do not fully reflect changes in international market forces, world trade in metals will tend to be distorted and discriminatory.