p The new type of economic cooperation established between independent African countries and the socialist states seriously influences the nature of the former’s relations with the capitalist world. This influence is determined by both the direct material contribution of the socialist community to the economy of the independent countries, and by the liquidation of the monopoly of the Western industrialised countries in imports, financing and the transfer of know-how. All this compels the capitalists to make concessions to the developing countries, render them aid on easier terms and lower interest rates.

p The capitalist states regard economic aid as a basic means of influencing the independent African countries: they use it to strengthen and even extend their enfeebled positions in many of these countries, and also to derive direct material benefit by using credits and technical assistance to gain markets for their industrial goods.

p Africa receives from 27 to 29 per cent of the total volume of “aid” furnished to the developing world by the industrialised capitalist states and international credit organisations. But the former colonial powers which are trying to hold on to their economic and political positions in Africa pay considerably more attention to that part of the world. Out of the $1,490.3 million which France furnished to the developing countries on the basis of bilateral agreements between 1973 and 1975, some $567.6 million or 38.1 per cent went annually to African countries.

p In the period from 1960 to 1975 France allocated $9.3 billion, Britain $2.7 billion and Belgium $1.4 billion out of their state funds to African countries.

p Those capitalist countries which did not have strong positions in Africa prior to the collapse of the colonial system and the winning of independence by African countries now believe that they have a good chance to widen them. The United States is now playing an active role in Africa. In 15 years, by the end of 1975, it had granted African countries $5.6 billion in credits.

p West Germany also pursues an expansionist policy in Africa, concentrating its efforts primarily on Kaiser Germany’s former colonies. Another donor-country, Canada, is displaying an increasing interest in Africa.

p Japan, which of late has been increasing its easy-term credits to the Arab countries in the North of Africa, is trying hard to gain access to the continent’s mineral riches.

p In the 1960s the average annual volume of economic “aid” from the capitalist states and international financial organisations to African countries was just over $1.6 billion. In the early 1970s the total volume of “aid” began to increase and in 1975 it amounted to $3.9 billion. But these figures only show the nominal “aid”, for the entire period was characterised by a rise in the prices of commodities and services provided under the aid programmes.

p Capitalist aid statistics likewise takes no account of the outflow of money from the developing countries in the form of interest on earlier credits. It has been estimated that ir 1974 the interest on credits granted by capitalist states and international financial organisations paid by African countries amounted to not less than $225 million or 7.1 per cent of the total volume of “aid” received that year. Taking all these factors into account, the actual inflow of resources within the framework of Western aid programmes to African countries in the mid-1970s was at least 20 per cent lower than at the beginning of the 1960s.

The enormous and steadily increasing foreign debt is one of the most acute problems of the independent African countries. This problem high-lights not only the difficulties involved in the development and restructuring of the economy of many African countries, but mainly the shortcomings inherent in the contemporary forms and terms of capitalist credit and the reluctance of the industrialised capitalist 149 countries to take effective measures to help the African countries to scale down their debts. In these circumstances loans cease to be a real material source for financing the development of the newly free countries.