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interest rate, but an increasing share of the bilateral credits is being extended on terms of 50 years and 0.75% interest rate. Bilateral aid is provided primarily for education, health, clothing, family planning, and refugee assistance.

Some shifts have occurred in the geographic distribution of bilateral aid. In the past, Swedish aid policy concentrated strictly on those countries with low per capita incomes, and the largest aid appropriations went to India, Ethiopia, and Pakistan. There has been an intensified effort by the Social Democrats, however, to extend more aid to countries with leftists, "progressive" regimes — such as Tanzania, North Vietnam, and Cuba — that are considered sympathetic with Sweden's current political orientation. Moreover, aid is being channeled to African liberation movements — primarily in Angola, Portuguese Guinea, and Mozambique. A small sum is also being given as "humanitarian" aid to the national liberation movements in Indochina, the Pathet Lao and Viet Cong. At the same time, Sweden has chosen not to replenish its share in the Asian Development Bank because the Swedes consider it to have aided rightist military regimes.

Sweden offers several additional kinds of economic support to the developing countries. A system of governmental guarantees of private investments and suppliers' credits has been in effect for some time. In June 1971 Sweden exempted from customs duty almost all imports of industrial goods and processed raw materials from the developing countries. Raw material imports from those areas are also generally duty free. A reserve fund of approximately US$10.4 million for catastrophe aid is also being considered by the Swedish International Development Authority.

Places and features referred to in this chapter (U/OU)

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