McNamara: Oil Not Basis Of Inflation
UNITED NATIONS, N.Y., Oct. 19 (AP) ÛÓ Robert S. McNamara, president of the World Bank, sided with the oil-exporting countries last night in rejecting the argument that higher crude-oil prices are the main cause of world inflation.</br></br>Speaking before the United Nations Economic and Social Council. McNamara said that inflation ÛÏbegan before prices of petroleum and other primary commodities rose and is only partially explained by those increases.Û</br></br>Even with inflation, he added, ÛÏtraditionally wealthy nations continue to be wealthyÛ and should aid nations on the brink of famine.</br></br>The oil-exporting countries have shown a cooperative spirit about making their new riches available for use by others, McNamara said, adding that these nations are expected to be the source of much of the $13 billion the World Bank plans to borrow in the next five years.</br></br>The oil-producing countries, he said, ÛÏhave been most cooperative with the bank, and in recent months we have received commitments from them totaling $2 billion.Û