[lbo-talk] Questions for Pugliese & Dolgoff on the CubanEconomy

Doug Henwood dhenwood at panix.com
Tue Jan 4 12:20:58 PST 2005


lweiger at umich.edu wrote:


>mperial aid=the rocket booster theory. Why not make or at least point to a
>convincing argument that this variable was as important as you suggest?

I don't have stats for the 1950s at hand, but in the 1960s, S Korea received a total of $1.6 billion in "official unrequited transfers" - free money from foreign governments, meaning U.S. aid. The aid shrank as the decade passed and SK's economy grew, but from 1960-62, the aid averaged almost 8% of GDP; for the decade as a whole, it was 4% of GDP. That's a pretty big number, that allowed SK to finance a large merchandise trade deficit painlessly.

Doug



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