1. Michael Moffitt, The World's Money: International Banking from Bretton Woods to the Brink of Insolvency (New York: Simon and Schuster, 1983), p. 30.

2. For the early effects of the Vietnam War on the U.S. economy, see Gabriel Kolko, The Roots of American Foreign Policy (Boston: Beacon Press, 1969), pp. v-vi, 88-132.

3. In 1975, the Washington, D.C.-based Indochina Resource Center estimated the U.S. expenditure on the Indochina wars at $150 billion, compared with approximately $3 billion channeled to the North Vietnamese and National Liberation Front from China and the Soviet Union (Indochina Resource Center, A Time to Heal: The Effects of the War on Viet Nam, Laos, Cambodia and America [Washington, D.C.: Indochina Resource Center, 1976], p. 4).

4. David P. Calleo and Benjamin M. Rowland, America and the World Political Economy: Atlantic Dreams and National Realities (Bloomington: Indiana University Press, 1973), p. 120.

5. The subject of the early 1970s dollar crises and the related shifting U.S. international political position has been dealt with extensively by both political scientists and economists. Some key readings in this broad literature are David H. Blake and Robert S. Walters, The Politics of Global Economic Relations (Englewood Cliffs, N.J.: Prentice-Hall, 1976); Calleo and Rowland, America and the World Political Economy ; Susan Strange, "The Politics of International Currencies," World Politics 23 (January 1971): 215-31; Fred Block, The Origins of International Economic Disorder: A Study of United States International Monetary Policy from World War II to the Present (Berkeley and Los Angeles: University of California Press, 1977), pp. 164-225; Margaret G. de Vries, The International Monetary Fund, 1966-1971: The System Under Stress , 2 vols. (Washington, D.C.: IMF, 1976), vol. 1, pp. 527-30; Stephen D. Cohen, International Monetary Reform, 1964-1969 (New York: Praeger, 1970); John Williamson, The Failure of World Monetary Reform, 1971-1974 (New York: New York University Press, 1977), chapter 9, "Why Bretton Woods Collapsed"; and Robert Triffin's classic Gold and the Dollar Crisis: The Future of Convertibility , rev. ed. (New Haven, Conn.: Yale University Press, 1961), which warned of the impending breakdown of the Bretton Woods system.

6. See Neil Sheehan, Hedrick Smith, E. W. Kenworthy, and Fox Butterfield, The Pentagon Papers (New York: Bantam Books, 1971), pp. 589-93.

7. Kolko, Roots , p. 88.

8. Willy Brandt, Chairman, Report of the Independent Commission on International Development Issues — North-South: A Program for Survival (Cambridge, Mass.: MIT Press, 1980), p. 203 (hereafter cited as Brandt Commission Report).

9. William H. Branson, "Trends in United States International Trade and Investment Since World War II," in The American Economy in Transition , ed. Martin Feldstein (Chicago: University of Chicago Press, for National Bureau of Economic Research, 1980), p. 185.

2. For the early effects of the Vietnam War on the U.S. economy, see Gabriel Kolko, The Roots of American Foreign Policy (Boston: Beacon Press, 1969), pp. v-vi, 88-132.

10. For details of the interactions, see Branislav Gosovic and John Ruggie, "On the Creation of a New International Economic Order," International Organization 30 (Spring 1976): 309-45. A more detailed description of what these new international economic order demands entailed can be found in the Brandt Commission Report; "The International Monetary System and the New International Economic Order," Development Dialogue , no. 2 (1980); and E.A. Brett, "The International Monetary Fund, the International Monetary System and the Periphery," IFDA Dossier , no. 5 (March 1979): 1-15. Perhaps the best overview of the scholarly debate over the significance of the North-South negotiations can be found in Michael W. Doyle, "Stalemate in the North-South Debate: Strategies and the New International Economic Order," World Politics 35 (April 1983): 426-64. Two perceptive analyses of what the North-South dialogue does and does not mean are Richard Nations, ''The Long Hard Road from Algiers to Cancún,'' Far Eastern Eco nomic Review (November 6, 1981): 108-10; and Elizabeth Bradshaw and Henry Holland, "Cancún: Rhetoric and Reality," Economic and Political Weekly (November 12, 1981): 1897-99.

11. Although more research is currently being undertaken on the new international division of labor, the questions it encompasses are, as yet, not sufficiently studied. The work by members of West Germany's Max Planck Institute, Folker Fröbel, Jürgen Heinrichs, and Otto Kreye, The New International Division of Labour: Structural Unemployment in Industrialized Countries and Industrialization in Developing Countries , trans. Pete Burgess (Cambridge, England: Cambridge University Press, 1980; trans. of original edition, Hamburg: Rowohlt Taschenbuch, 1977), which includes a detailed account of West Germany's textile and apparel industry, stands as a classic in the field. André Gunder Franks review, "New International Division of Labour?" ( Economic and Political Weekly [December 17, 1977]: 2093-96) is also useful. Samir Amin's work should be consulted; for example, "The New International Economic Order and the Future of International Economic Relations," paper presented at the International Conference of Alternative Development Strategies and the Future of Asia, New Delhi, March 11-17, 1980. See also Dieter Ernst, ed., The New International Division of Labor, Technology, and Underdevelopment: Consequences for the Third World (Frankfurt: Campus, 1980); and Gary Hawes, "Southeast Asian Agribusiness: The New International Division of Labor," Bulletin of Concerned Asian Scholars 14 (October-December 1982): 20-29.

12. A brief but insightful historical overview of the rise of corporate power over the last hundred years can be found in UNCTAD, Fibres and Textiles: Dimensions of Corporate Marketing Structure , TD/B/C.1/219, Geneva, November 19, 1980, pp. 3-19.

13. Calculated from Table 3.

14. In 1980, for example, average profit rates on U.S. direct investment abroad were above 30 percent in South Africa, Indonesia, Malaysia, Singapore, Hong Kong, Nigeria, Libya, Egypt, the Bahamas, and Argentina (calculated from computer printouts on U.S. direct foreign investment abroad, supplied by the U.S. Department of Commerce, November 1981). Profit rate equals income plus fees and royalties as percentage of total investment.

15. Survey of Current Business (February 1981): 41, 51.

16. See Walter Kiechel III, "Playing the Global Game," Fortune (November 16, 1981): 111-26.

17. The U.S. government (particularly the military), for example, invested substantial funding and effort in electronics research and development. By 1980, the Pentagon financed almost a third of U.S. research and development; the Ministry of International Trade and Industry financed 16 percent of Japan's ( International Herald Tribune , December 2, 1981).

18. Kiechel, "Playing the Global Game," p. 114.

19. Ibid., pp. 111-26.

20. Many volumes have been written on the microprocessor revolution. A good but already somewhat outdated bibliography can be found in Mary Alison Hancock, comp., Women and Transnational Corporations: A Bibliography Working Papers of the East-West Center Culture Learning Institute, Impact of Transnational Interactions Project (Honolulu: East-West Center, 1980), pp. 42-44. Of particular note are A. Sivanandan, "Imperialism in the Silicon Age," Monthly Review 32 (July-August 1980): 24-42; Barbara Ehrenreich and Annette Fuentes, "Life on the Global Assembly Line," Ms. Magazine (January 1981): 53; Rachel Grossman, "Women's Place in the Integrated Circuit," Southeast Asia Chronicle , no. 66 (January-February 1979), and Pacific Research 9 (July-August 1978); Peter Marsh, The Silicon Chip Book (London: Sphere Books, 1981);. J. Rada, The Impact of Microelectronics: A Tentative Appraisal of Information Technology , United Nations, International Labour Organization, World Employment Programme Study (Geneva, 1980). With special reference to the Philippines, see Enrico Paglaban, "Philippines: Workers in the Export Industry," Pacific Research 9 (March-June 1978).

21. The microprocessor work carried out in developing countries involves tedious, vision-impairing microscopic work and dangerous chemical baths. For details, see Grossman, "Women's Place"; Council for Primary Health Care (Manila), "Eye Care in the Electronics Industry: Whose Main Concern?" Health and Workers Bulletin , no. 2 (February 1984); and Thomas H. Gassert, Health Hazards in Electronics: A Handbook (Hong Kong: Asia Monitor Resource Center, 1985).

22. Grossman, "Women's Place," p. 7; Mary Alison Hancock, Electronics: The International Industry , Working Papers of the East-West Center Culture Learning Institute, Impact of Transnational Interactions Project (Honolulu: East-West Center, 1980), p. 29, table 7.

23. This refers to c.i.f. (cost, insurance, and freight) value at current prices for Item 729.3 of the Standard International Trade Classification (SITC), which also includes such things as thermionic valves and tubes, and transistors. In 1972 the value was $346 million; by 1976 it had surged to $1,357 million (Rada, Impact of Micro-electronics , p, 22, citing statistics from OECD, Trade by Commodities , Series C, 1972 and 1976).

24. These data refer to the total semiconductor imports to the United States under U.S. tariff code items 806.30 and 807 (United Nations Industrial Development Organization, Global and Conceptual Studies Branch, Division for Industrial Studies, Restructuring World Industry in a Period of Crisis — The Role of Innovation: An Analysis of Recent Developments in the Semi-conductor Industry , UNIDO/IS.285, December 17, 1981, pp. 246, table 6.8, and 247).

25. Rada, Impact of Micro-electronics , p. 22.

26. UNCTAD, Fibres and Textiles , pp. 237-44, presents a specific breakdown of the technological advances in spinning, weaving, and knitting.

27. Ibid., p. 167, table 45. Indeed, LDCs' share of the global apparel market is greater than heir share of any other industrial sector.

28. See UNCTAD, Fibres and Textiles , p. 171, chart 18, for comparison of capital invested per employee in twenty U.S. manufacturing sectors.

29. In the world of textile exporters, the case of India, which deliberately stuck to its labor-intensive handlooms, is something of an anomaly. Figures aggregating textile exports from LDCs can be somewhat misleading; spun yarn makes up a good portion of the total amount and, in countries such as Pakistan, is not necessarily the output of modern enterprises. In 1977, developing countries exported 19.4 percent of world textile yarn and fabric exports; developed countries, 72.7 percent (ibid., p. 167, table 45; p. 185, table 49).

30. This, of course, blurs the critical LDC world-order distinction: the industrial activity was not spread uniformly throughout the developing world but was concentrated in thirty or so LDCs.

31. IMF, Philippines: Recent Economic Developments , July 18, 1980, p. 32; Philippine Development (Manila) 6 (December 28, 1979): 29. Manufactured exports here refer, more precisely, to what the Philippine government calls "nontraditional" manufactured exports. Nontraditional manufactured exports accounted for 40 percent of total exports in 1980, whereas their share was less than 10 percent in 1970 ( World Business Weekly [August 20, 1981]: 49).

32. Economist (December 20, 1980): 67.

33. See, e.g., W. Arthur Lewis, Growth and Fluctuations, 1870-1913 (Cambridge, England: George Allen & Unwin, 1978), pp. 26, 29, and 280-81, table A-11; Charles Kindleberger, Foreign Trade and the National Economy (New Haven, Conn.: Yale University Press, 1962), pp. 23-25. Freight charges as a percentage of value of imports in overall world trade fell from 7.75 in 1970 to 6.55 in 1979, for example (UNCTAD, Review of Maritime Transport, 1980 , TD/B/C.4/222, May 25, 1981, p. 40, table 25).

34. It is true that certain factories that are essentially assembly-line, e.g., for automobiles, were set up in a few LDCs in the 1960s, but these were largely restricted to the richer LDCs with large internal markets, such as Brazil, Mexico, and Iran.

35. TNCs could carry out these minor operations directly, or indirectly through an operation called subcontracting or outward processing .

36 . Kennedy's Alliance for Progress was a precursor of this strategy. See Jerome Levinson and Juan de Onis, The Alliance That Lost Its Way: A Critical Report on the Alliance for Progress , Twentieth Century Fund Study (Chicago: Quadrangle Books, for Twentieth Century Fund, 1970).

37. Jonathan E. Sanford, Multilateral Banks: Can U.S. Limit Use of Its Contributions ? U.S. Library of Congress, Congressional Research Service, Issue Brief IB79114, January 13, 1980, update of October 19, 1979, p. 5. See also Margaret G. Goodman and Jonathan E. Sanford, The United States and the Multilateral Development Banks , U.S. Library of Congress, Congressional Research Service, for Congress, House, Committee on Foreign Affairs (Washington, D.C.: Government Printing Office, 1974).

38. Statement of W. Michael Blumenthal, Secretary of the Treasury, in U.S. Congress, House, Committee on Appropriations, Hearings Before the Subcommittee on Foreign Operations on Foreign Assistance and Related Appropriations for 1980 , 96th Cong., 1st sess., March 14, 1979, p. 13; and statement of C. Fred Bergsten, Assistant Secretary of the Treasury; in U.S. Congress, House, Committee on Appropriations, Hearings Before the Subcommittee on Foreign Operations on Foreign Assistance and Related Appropriations for 1978 , 95th Cong., 1st sess., February 16, 1977, p. 150.

39. Results of a 1975 Harris poll cited in Walden Bello and Severina Rivera, eds., The Logistics of Repression and Other Essays (Washington, D.C.: Friends of the Filipino People, 1977), p. 4. See United Nations Association of the U.S.A., United States Foreign Policy and Human Rights (New York: United Nations Association of the U.S.A., 1979).

40. Jonathan E. Sanford, U.S. Foreign Policy and Multilateral Development Banks (Boulder, Colo.: Westview Press, 1982), pp. 34-37; Victoria E. Marmorstein, "World Bank Power to Consider Human Rights Factors in Loan Decisions," Journal of International Law and Economics 13, no. 1 (1978): 113-36; Elizabeth P. Spiro, "Front Door or Back Stairs: U.S. Human Rights Policy in the International Financial Institutions" in Human Rights and U.S. Foreign Policy , ed. Barry M. Rubin and Elizabeth P. Spiro (Boulder, Colo.: Westview Press, 1979), pp. 134-37.

41. See James Petras and Morris Morley, The United States and Chile: Imperialism and the Overthrow of the Allende Government (New York: Monthly Review Press, 1975), pp. 83-105, 162-67; Jonathan E. Sanford, "The Multilateral Development Banks and the Suspension of Lending to Allende's Chile," in U.S. Congress, House, Committee on Foreign Affairs, Subcommittee on Inter-American Affairs, The United States and Chile During the Allende Years, 1970-1973 (Washington, D.C.: Government Printing Office, 1975), pp, 417-48; and David Gisselquist, "IMF Primer," International Policy Report (June 1981). The question of why the IMF continued lending to the Allende government, albeit on a small scale, has yet to be adequately analyzed.

42. Quoted in Philippines Daily Express (Manila), May 21, 1976. That loan was, in fact, hotly debated by the Banks board of directors, but the Scandinavian countries, not the United States, led the debate. Reportedly, the loan required the first actual vote by the Banks board on any of the more than two hundred loans in that fiscal year.

On the overall question of bilateral and multilateral aid and support for authoritarian regimes, see Noam Chomsky and Edward S. Herman, The Political Economy of Human Rights , vol. 1: The Washington Connection and Third World Fascism (Boston: South End Press, 1979); Walden Bello and Elaine Elinson, Elite Democracy or Authoritarian Rule ? (Oakland, Calif.: Philippine Solidarity Network and the Coalition Against the Marcos Dictatorship, June 1981); and Sanford, U.S. Foreign Policy .

43 . The Philippines is a case in point. See World Bank, Philippines — Country Program Paper , March 26, 1976, p. 2. Officials at U.S. AID in Bangkok acknowledged that this trend could also be found in assistance to Thailand interviews with officials [anonymity requested], U.S. AID, Bangkok, Thailand, July and August 1979).

44. Robert L. Ayres, "Breaking the Bank," Foreign Policy (Summer 1981): 113; Business in Thailand (October 1980): 5; Asian Wall Street Journal , June 6, 1978.

45. The Committee of the Board of Governors on the Reform of the International Monetary System and Related Issues existed from July 1972 to June 1974, when it gave its final recommendations. Its successor was the Interim Committee, so named because it was supposed to give way to an IMF Council. For an in-depth analysis of the work of the Committee of Twenty in the arena of international monetary reform, see Williamson, Failure of World Monetary Reform .

46 . Norman Girvan, Richard Bernal, and Wesley Hughes, "The IMF and the Third World: The Case of Jamaica, 1974-80," Development Dialogue , no. 2 (1980): 116; John Williamson, The Lending Policies of the International Monetary Fund , Policy Analyses in International Economics 1 (Washington, D.C.: Institute for International Economics, 1982), p. 22; A.W. Hooke, The International Monetary Fund: Its Evolution, Organization and Activities , IMF Pamphlet Series 37, 1981, p. 45. Likewise, as UNCTAD negotiated its integrated program for commodities, the Big Five provided more support for the IMF's expanded compensatory finance facility. The IMF's interest-subsidy scheme is another example of a marginal concession to the South's demands. As of 1982, the IMF guidelines permitted "an annual use of its resources up to 150 percent of quota and up to 450 percent of quota over a period of three years" (Joseph Gold, Order in International Finance, the Promotion of IMF Stand-By Arrangements, and the Drafting of Private Loan Agreements , IMF Pamphlet Series 39, 1982, p. 41). By 1984, the IMF was reversing this trend of "enlarged access" as it moved to tighten its loan limits.

47. Williamson, Lending Policies , p. 20.

48. Sidney Dell, On Being Grandmotherly: The Evolution of IMF Conditionality , Essays in International Finance 144 (Princeton, N.J.: International Finance Section, Department of Economics, Princeton University, 1981), p. 27.

49. IMF, Annual Report of the Executive Board for the Financial Year Ended April 30, 1980 (Washington, D.C.: IMF, 1980), p. 116; Michael Zammit Cutajar, comp., "Background Notes on the International Monetary Fund," Development Dialogue , no. 2 (1980): 111; and Asian Wall Street Journal , August 16, 1979.

50. The May 1981 loan agreement marked the fourth time the Saudis provided funds to the IMF under special borrowing arrangements. Asian Wall Street Journal , May 9, 1981; Far Eastern Economic Review (April 24, 1981): 92; "The IMF and World Economic Stability—Interview with Richard Erb, U.S. Executive Director at IMF," Challenge (September-October 1981): 23.

51. Formally the Intergovernmental Group of 24 on International Monetary Affairs, the Group of 24 is a subset of the Group of 77. However, the Group of 24 styles itself more as an offshoot of the IMF than of UNCTAD, and IMF publications, such as IMF Survey , tend to give it credibility and legitimacy by reporting on its activities as if it were an official IMF committee.

52. Asian Wall Street Journal , June 20, 1980. This is not to ignore the expansion in the Funds resources, beginning with the extended fired facility in 1974. This was, however, overshadowed by the Banks expansion in the second half of the 1970s ( Finance and Development 15 [September 1978]: 2-3). The IMF was not a net lender in either 1977 or 1978, or even in the first half of 1979 ( Economist [November 3-9, 1979]: 92). Moreover, there has continually been a large gap between the commitments claimed by the IMF and the net disbursements made; see UNCTAD's Trade and Development Report 1981 (Geneva, 1981) on this subject.

53. When Robert McNamara assumed the presidency of the Bank in 1968, he brought with him the experience of seven difficult years as U.S. secretary of defense, where he stood as President Johnson's chief deputy overseeing the war effort. Although McNamara's background, as "whiz kid" turned Ford Motor Company president, endowed him with a technocratic and authoritarian style that he never relinquished during his reign at the Bank, his Pentagon days left the deepest imprint on his views of development and revolution. An extremely revealing article by a former World Bank vice-president (whose term at the Bank almost precisely overlapped McNamara's) describes McNamara's development policies as emanating from his sense of impotence over what, by 1964, had been dubbed "McNamara's War." These views matured at the Bank as American black ghettos exploded in race and class wars in the mid and late 1970s (William Clark, "Robert McNamara at the World Bank," Foreign Affairs [Fall 1981]: 167-84).

A number of books and articles have been written about McNamara's thirteen years as Bank president; two men obviously close to McNamara and the inner sanctums of the World Bank wrote exceptionally revealing ones. In addition to Clark, see Robert L. Ayres, Banking on the Poor: The World Bank and World Poverty (Cambridge, Mass.: MIT Press, in cooperation with the Overseas Development Council, 1983); and Ayres, "Breaking the Bank," McNamara voiced his support for economic aid even earlier, during his term as secretary of defense. In 1966, addressing the American Society of Newspaper Editors, he noted "the certain connection between economic stagnation and the incidence of violence," a relationship suggesting that, if the situation were left, "the years ... ahead for the nations in the southern half of the globe [would be] pregnant with violence" ( New York Times , May 19, 1966).

54. Ayres, Banking on the Poor , p. 5.

55. Ibid., p. 226.

56. The phrase is the Banks own (William Ascher, "Political and Administrative Bases for Economic Policy in the Philippines," World Bank, November 6, 1980, p. 4 [hereafter cited as Ascher Memorandum]).

57. What "basic needs" means and does not mean has been debated elsewhere at length. For the World Banks own sense of "defensive modernization," see its 1975 Assault on Poverty , its 1975 Sector Policy Paper on rural development, and McNamara's speeches. Critical assessments include Cheryl Payer, The World Bank: A Critical Analysis (New York: Monthly Review Press, 1982); and Walden Bello et al., Development Debacle: The World Bank in the Philippines (San Francisco: Institute for Food and Development Policy, 1982), pp. 67-99. See also Frances Moore Lappé, Joseph Collins, and David Kinley, Aid as Obstacle: Twenty Questions About Our Foreign Aid and the Hungry (San Francisco: Institute for Food and Development Policy, 1980); Betsy Hartmann and James Boyce, Needless Hunger: Voices from a Bangladesh Village (San Francisco: Institute for Food and Development Policy, 1979); and Aart J. M. Van de Laar, The World Bank and the Poor (Boston: Martinus Nijhoff, 1980).

58. Ayres's own estimate ("Breaking the Bank," p. 108) is that "considerably more than one-half and perhaps as much as two-thirds of combined bank and IDA lending remains traditional."

59. For a more detailed sense of this ministerial meeting and the Group of 77 demands, see Cutajar, "Background Notes on the International Monetary Fund," p. 105; Clark, "Robert McNamara," pp. 181-82; and Ho Kwon Ping, "A Deadlock on Development," Far Eastern Economic Review (October 3, 1980): 56-57.

60. See Robert McNamara, Address to the Board of Governors, Belgrade, Yugoslavia, October 2, 1979 (Washington, D.C.: World Bank, n.d.).

61. Justinian F. Rweyemamu, "Restructuring the International Monetary System," Development Dialogue , no. 2 (1980), p. 86. See also Brandt Commission Report, pp. 232-34, 255, 274.

62. Andres Federman, "The Third World Bank: Making the Break," South (September 1981): 8.

63. Figures cited in Asian Wall Street Journal , October 8, 1980; Far Eastern Economic Review (April 24, 1981): 87. See also Economist (September 4, 1982): 46. These aims are explicitly stated by the World Bank Development Policy Staff's Senior Adviser, E. D. Wright, in "World Bank Lending for Structural Adjustment," Finance and Development 17 (September 1980): 21-23.

64. Williamson, Lending Policies , p. 21.

65. Ibid., p. 22.

66. Ibid., p. 21.

67. A packet of Bank and Fund memos and reports was put together for discussions the two institutions held on structural adjustment lending. Included in this packet were four memos and reports that summarized recent discussions: World Bank, "Structural Adjustment Lending—collaboration with the IMF," memorandum from Ernest Stern, vice-president of operations, to regional vice-presidents, June 9, 1980; IMF, "Statement by the Managing Director on Fund Collaboration with the Bank in Assisting Member Countries, Executive Board Meeting, May 28, 1980," 80/103, May 15, 1980; IMF, "The Chairman's Summing Up at the Conclusion of the Discussion on Fund Collaboration with the Bank in Assisting Member Countries, Executive Board Meeting, May 28, 1980," 80/114, June 2, 1980; and IMF, "Fund Collaboration with the Bank in Assisting Member Countries," memorandum from the managing director to department, bureau, and office heads, June 9, 1980. The quote is from IMF, "Chairman's Summing Up."

A Fund-Bank Development Committee (formally the Joint Ministerial Committee of the Boards of Governors of the Bank and Fund on the Transfer of Real Resources to Developing Countries) publicly and privately endorsed the expanded collaboration and cooperation between the two international financial institutions. Set up in 1974 after the Committee of 20 recommended that more be done to transfer resources to the South, the Development Committee was at this time headed by the Philippine finance minister, Cesar Virata (Cesar Virata, Chairman, Development Committee, Provisional Record of Discussion of the Twelfth Meeting of the Development Committee, Belgrade, Yugoslavia, September 30, 1979 , DC/79-14 [Washington, D.C.: World Bank, 1979]; and "Development Committee's 16th Meeting Held in Gabon on May 22, 1981," Press Communiqué [May 22, 1981]).

68. The literature on the World Bank and the IMF and the international division of labor is sparse. Fawzy Mansour breaks new ground in "The World Bank: Present Role and Prospects—An Outsider's View (draft)" (Dakar: U.N. African Institute for Economic Development and Planning, 1979), which stands as a critique of most radical critics of the Bank and the Fund (including Payer and Hayter). One of the few works from the Philippines dealing with the new international division of labor is the seven-part series "A Scenario of Neo-Colonialism," by Merlin Magallona of the University of the Philippines Law Center, published in the January and February 1981 issues of Makati Trade Times .

69 . Bela Balassa, "A 'Stages Approach' to Comparative Advantage," in Economic Growth and Resources , ed. Irma Adelman, proceedings of the Fifth Congress of the International Economic Association, Tokyo, Japan, 1977, vol. 4 (London: Macmillan, 1979), pp. 121-56. A growing literature criticizes the neoclassical notion of comparative advantage and studies the dynamics of international exchange from a Marxist perspective. These works dispute—many in theoretical terms Ricardo's theory of comparative costs and the Hecksher-Ohlin-Samuelson trade models that built on Ricardo's work. See Anwar Shaikh, "Foreign Trade and the Law of Value: Part I," Science and Society 43 (Fall 1979): 281-302; Shaikh, "Foreign Trade and the Law of Value: Part II," Science and Society 44 (Spring 1980): 27-57; John Weeks, "A Note on the Underconsumptionist Theory and the Labor Theory of Value,'' Science and Society 46 (Spring 1982): 60-76; Samir Amin, Unequal Development: An Essay on the Social Formation of Peripheral Capitalism , trans. Brian Pearce (New York: Monthly Review Press, 1976); Arghiri Emmanuel, Unequal Exchange: A Study of the Imperialism of Trade (New York: Monthly Review Press, 1972).

70. Bela Balassa, The Process of Industrial Development and Alternative Development Strategies , Essays in International Finance 141 (Princeton, N.J.: International Finance Section, Department of Economics, Princeton University, 1980), pp. 25-26. This essay contains the Graham Memorial Lecture by Balassa at Princeton University, April 17, 1980.

71. Bela Balassa, "Industrial Policies in Taiwan and Korea," in International Economics and Development: Essays in Honor of Raul Prebisch , ed. Luis Eugenio Di Marco (New York: Academic Press, 1972), p. 179.

72. Robert McNamara, Address to the United Nations Conference on Trade and Development, Manila, Philippines, May 10, 1979 (Washington, D.C.: World Bank, n.d.), pp. 29, 15, 27.

73. World Bank, Annual Report 1981 (Washington, D.C.: World Bank, 1981), pp. 70-71. Cf. World Bank, Annual Report 1980 (Washington, D.C.: World Bank, 1980), pp. 67-68.

74. Williamson, Lending Policies , p. 22.

75. International Herald Tribune , March 18, 1981. On the growth of TNB lending to LDCs over the 1970s, see Deborah L. Riner, "Borrowers and Bankers: The Euro-Market and Political Economy in Peru and Chile," Ph.D. dissertation, Princeton University, 1982.

76. Mansour, "World Bank," p. 42, citing the preliminary work of the Brandt Commission.

77. Arthur Bums, "The Need for Order in International Finance," speech at annual dinner of Columbia University Graduate School of Business, April 12, 1977, pp. 13, 14, 21, quoted in Howard M. Wachtel, The New Gnomes: Multinational Banks in the Third World (Washington, D.C.: Transnational Institute, 1977), p. 36.

78. United States, Council of Economic Advisers, Economic Report of the President (Washington, D.C.: Government Printing Office, 1977), p. 130.

79. An overview of the influence of powerful business groups and councils is presented in Lawrence Shoup and William Minter, Imperial Brain Trust: The Council on Foreign Relations and United States Foreign Policy (New York: Monthly Review Press, 1977). See also Kim McQuaid, Big Business and Presidential Power: From FDR to Reagan (New York: William Morrow, 1982).

80. World Bank, Annual Report 1980 , p. 70. As early as mid-1981, bankers, wary of the Philippines' already inflated debt, said that loans to the Philippines continued to carry favorable terms because of the structural adjustment program ( Far Eastern Economic Review [September 17, 1981]: 43).

81. Articles 806.30 and 807 of the Tariff Classification Act of 1962 permit temporay export of raw materials and components for further assemblage and processing abroad. On reentry to the United States, duty on the product is assessed only on its value added; earlier laws taxed the product on its full value. Similar laws exist in Western Europe (UNCTAD, Intra-Industry Trade and International Subcontracting , TD/B/805/Supp. 2, August 6, 1980).

82. For more on subcontracting, see UNCTAD, Fibres and Textiles , pp. 202-6; and Dimitri Germidis, ed., International Subcontracting: A New Form of Investment , Development Centre Studies (Paris: OECD, 1980).

83. Eleven countries in Asia, nine in Latin America, and five in Africa composed the twenty-five. Frank, ''New International Division of Labour?" p. 2095; Tsuchiya Takeo, "Free Trade Zones in Southeast Asia," Monthly Review 29 (February 1978): 31-32; Ibon Facts and Figures , no. 22 (July 15, 1979): 2.

84. Among the best work on EPZs has been done by Pacific Asia Resources Center (PARC), a Japanese research group. See PARC, "Free Trade Zones and Industrialization of Asia," Ampo: Japan-Asia Quarterly Review (1977), which shows how the World Bank worked with UNIDO in its promotion of EPZs.