LDC POSITIONS ON TECHNOLOGY TRANSFER ISSUES

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January 1, 1978
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Approved For Release 2002/06/13 : CIA-RDP80T00702A000400040005-8 ;Approved For Release 2002/06/131: CIA-RDP80T00702A000400040005-8 25X1 Approved For Release 2002/06/13 : CIA-RDP80T00702A000400040005-8 Next 1 Page(s) In Document Exempt Approved For Release 2002/06/13 : CIA-RDP80T00702A000400040005-8 Approved For Release 2002/06/13 : CIA-RDP80T00702A000400040005-8 CONFIDENTIAL LDC Positions on Technology Transfer Issues Central Intelligence Agency National Foreign Assessment Center Key Judgments The diversity of issues subsumed under the rubric of technology transfer for development almost precludes a meaningful summary. Nevertheless, a review of relevant country factors and stances in the North-South dialogue does point up a few important themes. ? Individual less developed countries (LDCs) have widely differing perceptions of what should be included in technology transfer agendas and substantially different interests in obtaining any given concession. ? Unlike the Common Fund and debt issues, . he leading spokesmen on technology transfer are-and will likely remain-the more advanced LDCs. In particular, several of the Latin American countries have built on their well-known versions of the role of the multinational corporation and strong feelings of national sovereignty to focus one aspect of the discussion on the fairness of technology costs. ? Most LDCs-little inclined to do battle over technology transfer issues-have gone along with the G-77 ' positions partly for logrolling purposes and partly because they see this as yet another device to increase real resource transfers. ? Many LDCs, especially the poorer and less open, appear not to grasp the 'institutional barriers that would mire radical proposals for costless technology transfer. Such unrealistic demands, broadly supported at conferences in the interests of bloc unity, tend to mask the greater sophistication of the higher income LDCs which provide private firms the incentives needed for innovation. ? There are probably few LDCs with expectations _of_&aining anything more substantial than a technology transfer code at the-various 'See appendix C for a glossary of terms and acronyms. CONFIDENTIAL Approved For Release 2002/06/13 : CIA-RDP80T00702A000400040005-8 Approved For Release 2002/06/13 : CIA-RDP80T00702A000400040005-8 25X1A 25X1 international meetings of 1978-79. Accomplishing even this will not still the farfetched rhetoric on technology banks and compensation for "brain drain," however. With regard to technology transfer, as in other areas of the North-South dialogue, the G-77 will probe widely and frequently to see if the developed countries spontaneously suggest some practical equivalents for the Third World's initial polemic demands. ? By and large, the developed countries are far from resolving how best to respond to the long list of assorted LDC demands. The United States, whose positions are only beginning to jell, is nevertheless, probably better prepared than most developed countries (DCs) on this subject. ii CONFIDENTIAL Approved For Release 2002/06/13 : CIA-RDP80T00702A000400040005-8 Approved For Release 2002/06/13 : CIA-RDP80T00702A000400040005-8 Key Judgments ........................................................................................ Background and Key Features of the Dialogue ...................................... 1 History of Technology Arguments ...................................................... 1 Current G-77 Stance ............................................................................ 2 Key LDC Actors .................................................................................. 3 Developed-Country Attitudes ................................................................ 6 LDC Technology Transfer Matrix .......................................................... 6 Appendixes A. Technology Transfer Section of the Manila Declaration ............ 29 B. Measuring S&T Development in LDCs ........................................ 35 C. Glossary of Terms and Acronyms ................................................ 39 iii CONFIDENTIAL 25X1 25X1 Approved For Release 2002/06/13 : CIA-RDP80T00702A000400040005-8 Approved For Release 2002/06/13 : CIA-RDP80T00702A000400040005-8 This report on LDC positions in regard to international technology transfer draws on all available sources of information to provide an up-to-date reference for US policymakers and technicians. It was prepared in recognition of the diversity of issues and professional interests that will arise in the several international meetings on technology transfer scheduled for 1978-79. The core of the analysis is a 94-country matrix on aspects of technological development and political positions in the North-South exchange on technol- ogy. For those less concerned with the details of the individual countries, an overview and a summary table present major features of the history of the technology transfer discussion and the interests of the key LDC actors. Few issues in the North-South dialogue between developing countries and developed countries are murkier than the question of technology transfer to the less developed countries. This stems from (a) the difficulty of defining technology transfer; (b) the complexity of the process of technology transfer and accession; and (c) the differences in the institutions of technology suppliers and recipients. Further complicating the issue is the tendency of I,DCs to include on the technology transfer agenda items ranging from the behavior of multinational corporations (MNCs) to international cooperation in the design of new products. Finally, the vast range of separate topics involved requires the services of large numbers of specialists from many different, fields, thus increasing the number of technical languages and concepts to be explored. It is hoped that this paper will promote a greater understanding of the differences among the key players, especially with regard to the meetings scheduled for 1979. At the same time, we recognize that the scope of country coverage and the dynamics of the conferences themselves increase the probability of inaccuracies or change in any one country statement. To maintain the best possible current knowledge of country positions on the issues of technology transfer, we invite comments and suggestions, now or in the future. V CONFIDENTIAL 25X1 25X1 25X1 25X1 Approved For Release 2002/06/13 : CIA-RDP80T00702A000400040005-8 Approved For Release 2002/06/13 : CIA-RDP80T00702A000400040005-8 25X1 25X1 LDC Positions on Technology Transfer Issues Background and Key Features of the Dialogue The North-South dialogue has moved full force into what may prove the most complex and. unstructured area for discussions-international technology transfer. On the broad assertion that he existing channels for this critical process are often inadequate or too costly, the LDCs have for some time been seeking substantial institutional changes, financial concessions, and suggestions for other improvements from the developed coun- tries. Now science and technology (S&T) issues are center stage in major conferences dedicated to them, whereas, until recently, they generally had surfaced as parts of broader reviews of North-South problems.' The step-up in the pace of meetings on the technology transfer theme is apparent from a glance at the schedule for the next 15 months. ? In August and September 1978 the industri- alized nations and the LDCs have been par- ticipating in a UN conference on technical cooperation among developing countries. ? In October 1978 negotiations will open on an international code of conduct for the transfer of technology. ? Extensive preparations are now under way for the UN Conference on Science and Tech- nology for Development scheduled for Au- gust 1979. ? In late 1979 there will be a diplomatic-level conference to revise the Paris Convention on Industrial Property (patents, trademarks, and industrial designs). 2 One continuing example of this sort of inclusion in other conferences is the deep seabed mining discussion in the Law of the Sea negotiations. Most industrialized countries see these confer- ences as a means to review the diverse elements involved in scientific and technical cooperation; many LDCs, however, see them as opportunities to gain additional financing and concessions on the technology process itself. The differences of views between developed-country and develop- ing-country representatives and among special- ists from a variety of technical fields suggest the need for a better initial understanding of the circumstances that led to the upcoming rounds of talks. History of Technology Arguments Although LDCs have long recognized in- proved S&T capabilities as a condition for deve-- opment, relatively little political importance was attached to this issue before the 1970s. (An extensive inventory of S&T needs of the LDCs was conducted under UN sponsorship in the 1960s; after completion, it was quietly shelved.) Technology transfer as a political issue began to take form at the 1970 conference of nonaligned nations in Lusaka. Concern with the topic grew when the Charter of Economic Rights and Du- ties of States, a brainchild of Mexican President Echevcrria, was proposed in 1972. The final declaration of the UN General Assembly in 1974 proclaimed the right of every country to benefit from the advances and developments in science and technology. The consolidation of LDC-DC issues into the context of the North-South dialogue gave the question of technology transfer a strong push after 1975. Because of the amorphous nature of the technology issue, however, decisions among the LDCs themselves on the subject proved more difficult than those on such issues as the Coin- 25X1 25X1 25X1 Approved For Release 2002/06/13 : CIA-RDP80T00702A000400040005-8 Approved For Release 2002/06/13 : CIA-RDP80T00702A000400040005-8 25X1 25X1A mon Fund or debt. Instead of a relatively few clear objectives, there tended to be many differ- ent national goals or concerns that were driven by factors such as stage of development of the economy, indigenous technical and scientific ca- pability, attitude toward the foreign private sec- tor, and willingness to cooperate in joint ven- tures. At best, these goals could only be represented in broad patterns. Some LDCs were primarily concerned with the acquisition of the most advanced technology, with costs a sec- ondary issue. Some were suspicious that high charges for technology transfer were a mask for profit remittances unrelated to the transfer and wanted to reduce this loss of foreign exchange. Still others saw the simplification and adaptation of products and processes as th; most important issue and were eager to cooperate in the implied research. And finally, more than a few LDC representatives at international meetings had lit- tle grasp of the basic transfer processes and even less ability to suggest changes The result was often a disordered-and extremely long--list of subjects for discussion, ranging from control over MNCs to aspects of technical assistance. LDC views on a technology agenda jelled somewhat in 1976 when G-77 ministers adopted the Manila Declaration, a comprehensive statement of LDC demands on technology transfer and a broad range of other North-South issues.3 The Current G-77 Stances North-South negotiations at higher diplomatic levels have until now centered on commodity price stabilization, commodity agreements, and debt relief. The wealthier and more advanced LDCs, however, have had little interest. in such issues and have supported G-77 positions mainly for the sake of group solidarity. On S&.T issues the situation is reversed. The high income LDCs consider the transfer and acquisition of advanced technology to be critical for their development, while most poorer LDCs remain largely bystand- ers. In return for their earlier advocacy of G-77 positions, the upper tier LDCs now expect sup- port from the largely indifferent poorer nations on technology transfer issues. 'The text of the technology transfer section of the Manila Declaration is in appendix A. The most recent comprehensive statement of G-77 S&T demands, the Manila Declaration, puts the LDCs on record as seeking: ? Implementation of policies at the national, regional, and international levels to strength- en technological capacities in LDCs. ? Establishment of a legally binding interna- tional code of conduct for the transfer of technology, which would bear heavily on the operations of MNCs. ? Revision of the international patent system to improve LDC access to proprietary technology. ? Adoption of policies to stem the outflow of skilled manpower from LDCs and to compen- sate them for this "brain drain." 25X1? Until now, the LDCs have focused their ener- gies on the development of a technology transfer 25X1 code, one of the first areas to be explored in the international meetings. They attach great impor- tance to this element because they feel their development plans are often thwarted by technol- ogy choices dictated by the MNCs, the industrial nations, and international institutions dominated by the DCs. The code, therefore, represents to them the most direct means of attacking what is viewed as a brake on suitable development. Ses- sions of experts on the topic during 1977-78 have helped fuel interest, and a. ' f LDC resolve will probably be shown at the related meeting This October. In contrast to the specific demands of the G-77 on a technology transfer code (which the LDCs have been working on since 1975), the developing nations are less well prepared to cope with the broader range of the S &T discussions at the 1979 UN Conference on Science and Technology for Development. The scheduled submissions to the UN Secretariat of national papers describing each country's S&T situation and needs are lagging, and the technical weakness of the dele- gations representing the LDCs at preparatory meetings has hindered substantive discussions with the industrialized nations. Developments at the UNCSTDD therefore, seem likely to parallel 25X1 Approved For Release 2002/06/13 : CIA-RDP80T00702A000400040005-8 Approved For Release 2002/06/13 : CIA-RDP80T00702A000400040005-8 25X1A 25X1A this month's UN Conference on Technical Co- the question of technical cooperation among `operation Among Developing Countries, with-the LDCs. major result being little more than a narrowing of the scope of the now overly ambitious North- South S&T agenda. .More ominous than this muddling, however, is the risk that concrete proposals by the develqped countries may only heighten the confusion. Given the diversity of the S&T interests of the LDCs, a unified G-77 position beyond broad polemics -*-111 be hard to achieve and sustain at the upcoming meetings in the face of Group B proposals de- signed to respond to one or another set of LDC needs-Ironically, such instability poses a danger to the industrialized nations, as some Group B offers made in good faith may be viewed by G-77 actors as calculated attempts to divide the LDCs. Whatever their technological merit, the offers could then be spurned by the G-77 leadership for political reasons. The political risk inherent in this is that some LDCs will become restless and perhaps confrontational over the failure to achieve more rapid progress in exacting changes in technology transfer processes. Key LDC Actors Despite growing attention to transfer of tech- nology issues, many LDCs have essentially re- mained spectators in the preparations for the related international meetings. Only a relative few have had the technological breadth and bureaucratic depth to present well-developed ar- guments. Within this latter group (shown in table 1), the several larger Latin American countries--Argentina, Brazil, Colombia, Mex- ico, and, Venezuela--have been most outspoken in formulating technology-related demands.- The Brazilians and Mexicans have argued strongly for the establishment of an internationally bind- ing technology transfer code: They have been restrained and flexible, however, compared with Venezuela, Colombia, and other Andean Pact nations; for the latter, a more aggressive stance reflects the desire to bring other countries into line with the tough standards they already set for profit remittances, transnational licensing ar- rangements, and other MNC operations in their countries. Argentina also holds strong views on technology issues and is taking a leading role on In Asia, only India, Indonesia, and Malaysia have been especially active in addressing S&T matters. Both India and Indonesia lobby for G-77 proposals, with special emphasis on the 25X1 A code of conduct. Among the three, Malaysia takes the most restrained views, consistent with its policy of actively courting foreign investment. Throughout this aspect (and most others) of the North-South dialogue, there is a conspicuous absence of the several East Asian exporters of manufactures-Taiwan, South Korea, Singa- pore, Hong Kong-for whom technology transfer is, nonetheless, critical. Here the key feature seems to be mutual discomfort: the East Asians see better opportunities for gain in distancing themselves - from G-77 polemics; the G-7,, in turn, usually regards them as willing captives of the existing international order. The positions of the major OPEC countries on S&T matters have been less strident than on 25X1A other aspects of the North-South dialogue. Alge- ria has been the most outspoken, actively sup- porting G-77 demands on the technology transfer code as well as brain drain controls The Persian Gulf states have been quiet on the brain drain issue, in large part reflecting their status as major users of skilled foreign labor. More gener- ally, the Saudis and Iranians have shown only moderate interest in technology transfer ques- tions. Iran's main concern, like that of many of the more advanced LDCs, has been to assure access to sensitive military and civilian technol- ogies. This last issue remains key for Brazil, Argentina, India, and most of the Middle East- ern countries. Missing from the list of key actors are the 25X1 A many small African and other least developed countries. This, of course, tends to rob the ex- change of the authenticity that would come from a, greater G-77 effort to shape technology propos- als'-for early stages of development. Ostensibly, the poorest and smallest LDCs are relying on their bigger and more advanced brothers to look out for their interests in the wide-ranging discus- sions. In reality, at least__ twice during G-77 Approved For Release 2002/06/13 : CIA-RDP80T00702A000400040005-8 Approved For Release 2002/06/13: CIA-RD Algeria ...._..._... Access to basic and advanced technology for development of the hydrocarbons sector (refineries, petrochemicals, LNG plants, pipelines). Argentina ........ Oil exploration and development of nu- clear energy. Brazil Access to advanced industrial technology, including nuclear power. Colombia Access to advanced technology for petro- leum and coal exploration, production, and processing. Egypt Seeks to increase inflows of Western tech- nology by easing restrictions on private foreign investment; particularly inter- ested in communications and desert reclamation techniques. India ................ Access to technology for energy explora- tion and development; seeks advanced technology in computers and arma- ments. Indonesia .......... Access to minerals, engineering, and agri- cultural S&T. Iran .................. Access to modern armaments; nuclear power plant equipment; petrochemical industry technology; direct reduction steel plants; copper refining technol- ogy. Iraq .................. Access to a wide range of technology for petroleum, nuclear power, computers, petrochemicals, food processing, and irrigation. Ivory Coast .... Access to modern production methods in light industry and commercial agricul- ture. Technology to develop agriculture and water resources; technical training for the labor force. Technological cooperation with other LDCs. Assurance of fair payments structure for patents and copyrights. Wants to avoid foreign control of technol- ogy; seeks transfer apart from foreign investment whenever possible. Watches technology charges and profit remittances closely. Seeks to attract increased direct foreign investment without sacrificing control over sectoral development. As a socialist economy, seeks to avoid new private foreign investment, relying in- stead on turnkey projects. Actively supports G-77 demands on tech- nology transfer code and brain drain issues. Actively supports G-77 proposals; host of August-September 1978 UN TCDC conference. G-77 coordinator on technology transfer code negotiations; generally seeks to avoid confrontation with Group B. Active on brain drain and technology transfer code issues; believes G-77 ne- gotiators are disposed to .make too many early concessions on property rights. Active on brain drain and technology transfer code issues; focuses on removal of "obstacles" at the international level to the application of S&T for development. Active in formulation of G-77 positions on technology transfer code, TCDC, and brain drain; hosts international S&T conferences. Actively supports G-77 prosposals. Has shown only mild interest in technol- ogy transfer code negotiations. Supports G-77 positions on technology transfer code and brain drain issues. Strong ties to French private sector re- strain activism in G-77 forums. Approved For Release 2002/06/13 : CIA-RDP80T00702A000400040005-8 25X1A Approved For Release 2002/06/13 : CIA-RDP80T00702A000400040005-8' Jamaica ......... Access to foreign minerals and manufac- turing technology. Jordan .............. Access to advanced military and basic and advanced industrial technology. Kuwait .............. Access to modern production methods in light industry, petroleum, and petro- chemicals. Libya Access to petroleum technology. Access to advanced technology, particu- larly in extractive industries and energy. Watches technology charges and profit remittances closely. Seeks increased foreign private invest- ment. Seeks advanced equipment and techni- cal/managerial services through in- creased foreign investment. Wants to minimize foreign influence in technology transfers. Actively seeks foreign investment. Development of indigenous R&D capa- bility. Mexico ............. Seeks assurance that technology costs are not inflated (to mask profit remit- tances) or charged against outmoded equipment/processes; access to ad- vanced S&T. Nigeria .. ........ Access to technology for development of petroleum sector, heavy and light in- dustry, and agriculture. Pakistan .... ._... Access to technology for the energy sec- tor, including nuclear reprocessing. Peru Access to technology for mining, agricul- ture, and light industry. Philippines ..... Saudi Arabia... Sri Lanka Seeks increased foreign investment as a channel for technology transfer. Suspicious of large foreign business en- terprises. Elimination of restrictive business prac- tices that hinder technology transfer. Sees technology transfer negotiations as integral part of NIEO; activism based more on political than economic con- cerns; supports G-77 position partly for logrolling reasons. Proposes an international compensatory facility to aid LDCs suffering from the brain drain. Supports G-77 stances on technology transfer code and brain drain issues. Seeks technology transfer code to protect national sovereignty. Embraces G-77 demands but takes re- strained stances in discussions and negotiations. Formulates and spearheads LDC de- mands on S&T issues. Support for G-77 proposals tempered by desire for private investment. Supports G-77 proposals for a technology transfer code. Supports G-77 prosposals on most S&T issues; advocacy of G-77 stances has decreased markedly over the last two years as external payments problems have mounted. Actively supports G-77 proposals although S&T issues generally do not have high priority. Shows some support for G-77 technology transfer code proposals. Supports G-77 positions on technology transfer code and brain drain issues. Plays a leading role in promoting G-7i demands; primary drafter of G-77 reso- lution on obstacles to application of S&'C for development. Access to basic and advanced industrial technology to upgrade role of manufac- turing. Access to advanced technology for oil refining and to develop the petro- chemical industry. Access to technology with favorable em- ployment effects. Access to technology for petroleum sector and for its expanding nonpetroleum industrial sector. Seeks to control foreign investment in accordance with government develop- ment plan. Technology to develop agriculture and water resources. Seeks to stem losses of skilled manpower through migration. Seeks controlled increase in foreign in- vestment as a vehicle for technology transfer Approved For Release 2002/06/13 : CIA-RDP80T00702A000400040005-8 Approved For Release 2002/06/13 : CIA-RDP80T00702A000400040005-8 discussions of the issues the poorer African na- 25X1 A tions accused the Latin Americans of'being too cautious and of using technology transfer forums to advance their own national ,inresis. There is, in fact, nothing at this stage comparable to the "second window" of the Common Fund to pro- vide a trading point for group unity on particular proposals. A review of country positions on technology transfer indicates no reason to characterize some key actors as radicals and others as moderates. 25X1 A In this field more than others, such a split is 25X1 25X1 particularly inappropriate. Almost all of the countries that have made concrete proposals and which sustain discussions over the means and costs of technology transfer already have exten- sive contacts with the private sectors of the developed nations and recognize some of the institutional limitations on their absorbing tech- nology. Various extreme formulations that have flowed out of the G-77 stance are largely sops to countries unlikely to be able to participate in technical discussions should these develop any, real momentum. Recognizing this, the"f'i re ad- vanced or open LDCs have not pressed especially pa= hard to encourage widespread ro~a g P partici tion on S&T issues through G-77 caucuses such as those that supported the Common Fund and debt topics. what they view as contractual matters between LDC buyers and private supplying firms. The same attitude influences the views of developed countries on adopting a technology transfer code. The LDCs want such a code to help set interna- tionally binding regulations on profit remit- tances, royalty payments, and the like. The major industrial countries, however, feel that voluntary codes like that on MNCs adopted by the OECD in 1976 are the way to handle such matters. Moreover, they note that even the vo- luntary OECD code proved difficult to achieve because of differing views on the proper regula- tory role of government. Similarly, LDC technology transfer demands in the aid context are not susceptible to simple solutions. As the dialogue takes shape, the great- er emphasis on the interests of high- and middle- income LDCs seems to imply a departure from bilateral programs aimed largely at the poorest. Difficulty in defining security interests also com- plicates the responses of the advanced countries. In particular, the United States has been unwill- ing-for security reasons- to provide certain sensitive technologies to the LDCs; and, in some cases, there is disagreement among developed countries over what is sensitive. LDC access to nuclear technology is a particularly thorny issue that has produced an open rift between the United States and West Germany. Developed-Country Attitudes Thus far, although they have shown consider- able willingness to participate in discussions, the developed countries have felt little pressure to accede to the LDCs' initial S&T demands or timetables. They typically counter LDC empha- sis on easier technology supply conditions with arguments pointing out the need for Third World countries to remove domestic obstacles to their development and to identify problem areas likely to be resolved by the application of science and technology. As this is done, they argue, the related needs for cooperation on S&T will natu- rally emerge and will often yield to existing technology. On the questions of appropriate technology transfer and transfer costs, governments of the developed countries are hesitant to intervene in LDC Technology Transfer Matrix The technology transfer matrix is an attempt to provide a frame of reference for the major technology issues in the North-South dialogue. The matrix provides information for each devel- oping country on its technological environment, its perception of its technology needs, and its support for the various G-77 positions in the North-South technology conferences. The statis- tics presented in the matrix are approximations and are intended mainly to facilitate compari- sons among countries. The following information is presented as a guide to interpretation of the matrix. The Country column lists countries alphabeti- cally with 1976 per capita income shown in parentheses below each entry. 25X1 25X1 Approved For Release 2002/06/13 : CIA-RDP80T00702A000400040005-8 25X1 Approved For Release 2002/06/13 : CIA-RDP80T00702A000400040005-8 25X1 25X1 The Manufacturing Sector column provides J measures of the relative importance of industry in the country's economy by showing the percent- age of GNP accounted for by manufacturing activity, and the number of workers employed in the manufacturing sector (excluding extractive industries). Data are for 1976 or the most recent available year. The Engineering Products Trade column shows the total dollar value of the country's international trade in machinery and transport equipment--Section 7 of the UN's Standard International Trade Classification scheme (SITC). The percentage of the country's total trade accounted for by such products is shown in parentheses. Except where noted, data in this column are for the most recent year reported for the period 1974-76. The S&T Development columns contain en- tries based on composite indexes of S&T attri- butes and a subjective estimate of net loss or gain in the migration of scientific personnel (the so- called brain drain). The letters H, M, and L stand for high, medium, and low rankings as compared to other LDCs. The term "scope" denotes the relative complexity of S&T skills available anywhere in the country, and "depth" signifies the extent to which S&T aptitudes are spread among the population.' India, for exam- ple, stands high in the scope rankings because of its advanced S&T personnel and facilities, places low in the depth rankings because of its wide- spread illiteracy and low per capita income, and turns up as a net loser under migration of S &T personnel. The Key Technology Concerns column lists the sorts of technology transfer (or related prob- lems) that most interest the particular LDC. Entries reflect concerns that would drive the country's S&T policy even in the absence of the North-South dialogue. The Stances on G-77 Proposals column, the primary element of the matrix, presents any and all information we have about each country's views on LDC technology transfer proposals, including its stances on such issues as: ? Enactment of an international code of con- duct on technology transfers. ? Policies to stem the outflow of skilled man- power through migration (the brain drain or reverse transfer of technology issue). ? Increased technical cooperation among devel- oping countries (TCDC). ? Increased official technical assistance. 'See appendix B. CONFIDENTIAL Approved For Release 2002/06/13 : CIA-RDP80T00702A000400040005-8 Approved For Release 2002/06/13 : CIA-RDP80TOO702AO00400040005-8 25X1A Table 2 Technology Transfer Matrix Country (per Capita GNP) Economic GNP System Share Algeria Socialist economy; foreign approx. ($885) investment unwelcome ex- 10% cept for projects involving high technology or export industries, has used service contracts to secure skills/ processes from multina- tional corporations. Angola Socialist in modern sector. Jess than Argentina Market economy with 34% ($1,810) large government produc- tive enterprises in energy and transportation; seeks foreign direct investment to complement national investment. Engineering Products Trade Labor Force Imports Exports Scope ' Depth'Migration z (Thousands) (Million $ and %) 660 870 17 H M - (38) (less than 1; (1973) NA 214 8 (34) (less than 1i 2,500 810 399 H H (20) (14) Key Technology Concerns Access to basic and advanced industrial technology; technol- ogy to develop agri- culture and water resources; technical training for the la- bor force. Access to both basic and advanced agri- cultural and light in- dustrial technology; seeks help in: oil production; iron ore, copper, and dia- mond mining; rail- road transportation; and commercial farm production and processing of coffee and sugar. Oil exploration; de- velopment of nucle- ar energy. Stances on G-77 Proposals Actively supports G- 77 demands on tech- nology transfer code and brain drain is- sues. Inactive in interna- tional technology transfer discussions. Activity on S&T is- sues contrasts with relative lack of in- terest in other G-77 demands; seeks tech- nology transfer code and development of measures to deal with brain drain problem; host of Aug: Sept. 78 UN Conference on Tech- nical Cooperation among Developing Countries. Approved For Release 2002/06/13 : CIA-RDP80TOO702AO00400040005-8, Approved For Release 2002/06/13 : CIA-RDP80T00702A000400040005-8 Bahamas ($3,500) Market economy; actively 16% 14 69 16 L H + seeks new foreign direct (4) (1) investment; tax haven. Seeks technology cost arrangements-par- ticularly in the oil industry-that do not strain the bal- ance of payments. Also seeks assur- ances that imported technology will not displace the local work force. Bahrain ($2,000) Bangladesh ($85) Market economy with 42% NA 393 89 L H + large government produc- (40) (26) tive enterprises in the pe- troleum sector; seeks for- eign investment to develop as a regional service and commercial center. Market economy with less than 1,560 136 NA L L - large government enter- 10% (14) prises in all major indus- tries; seeks direct foreign investment and manage- ment (service) contracts. Barbados Market economy; seeks approx. 25 39 6 L H ($1,370) foreign investment; offers 10% (18) (6) tax and tariff incentives. Access to industrial/ petroleum technol- ogy; emphasizes training indigenous personnel to replace foreign workers. Seeks foreign sup- port in oil and gas exploration, fertilizer production, and oth- er advanced sectors. Prefers labor inten- sive activities where possible. Access to modern production methods in light industries; also concerned about technology transfers that might jeopar- dize local employ- ment opportunities. Approved For Release 2002/06/13 : CIA-RDP80T00702A000400040005-8 Limited interest in issue, but supports most G-77 formula- tions. Inactive in interna- tional S&T confer- ences. Supports G-77 tech- nology transfer code proposals; seeks in- creased financial and technical assistance for development proj- ects. Limited interest in issue but supports most G-77 formula- tions. Approved For Release 2002/06/13 : CIA-RDP80T00702A000400040005-8 Technology Transfer Matrix (Continued) Manufacturing Sector Engineering S&T Development Products Trade Country (Per Capita Economic GNP Labor Force Imports Exports GNP) System Share (Thousands) (Million $ and %) Scope' Depth 'Migration E Benin Socialist in modern sector; less than 117 43 2 L L - ($190) requires that new foreign . 10% (26) (6) investments be joint with government as minority shareholder. Bolivia Market economy with approx. 200 61 NA M M ($430) large-scale government 10% (34) participation in mining (19;2) and petroleum; seeks for- eign direct investment and-in petroleum-se_r- vice and operation con- tracts. Botswana Market economy; sees for- less than 8 NA NA L M ($285) eign investment as a key 10% factor in its development plans; actively seeks pri- vate capital for develop- ment of minerals, manu- facturing, and agriculture. Key Technology Concerns Access to basic agri- cultural and light in- dustrial technology, including coffee, co- coa, and such simple consumer industries as match factories, tire plants, and proc- essed foods. Petroleum explora- tion and tin and oth- er mineral mining and processing. Access to basic agri- cultural and indus- trial technology; rail- road transportation technology; and min- ing and processing technology for cop- per, nickel, and dia- monds. Approved For Release 2002/06/13 : CIA-RDP80T00702A000400040005-8 Stances on G-77 Proposals Inactive on most S&T issues; seeks greater technical as- sistance. Supports C-77 posi- tions on technology transfer code and brain drain. More concerned with relations with South Africa than with G- 77 positions on glo- bal technology trans- fer. Approved For Release 2002/06/13 : CIA-RDP80TOO702AO00400040005-8 Brazil ($1,010) Burma ($120) Burundi ($105) Cameroon ($385) Primarily free enterprise, but parastatals are impor- tant in extractive indus- tries, manufacturing, ship- ping, and some foreign trade; welcomes foreign investment, particularly to promote transfer of ad- vanced technology and to expand exports. 25% 5,340 4,305 957 H H + (32) (9) Only slowly emerging 10% 855 60 NA L L from self-imposed political (34) isolation; socialist econo- my; prohibits private for- eign investment; permits off-shore oil exploration by foreign firms. Market economy with ele- less than 48 ments of socialism in mod- 10% ern sector; very liberal in- vestment code; seeks investment in minerals and agricultural sectors having export potential. Market economy; encour- ages private foreign invest- ment within the guidelines of the official develop- ment plan. 190 11 (32) (2) Access to advanced industrial technol- ogy; assurance of fair payments struc- ture for patents and copyrights. Oil production tech- nology, primarily- but not exclusively- offshore; marine and fresh water fishing modernization and fish-product process- ing. Basic agriculture and industry, especially processing for agri- cultural products, such as coffee and tea. L M NA Ongoing develop- ment plan focuses on agricultural in- dustries, light con- sumer goods indus- tries, and oil pro- duction. Approved For Release 2002/06/13 : CIA-RDP80TOO702AO00400040005-8 Plays a leading role in UNCTAD efforts on international code of conduct for tech- nology transfers; as G-77 coordinator on transfer of technol- ogy code issues, seeks to develop stances amenable to negotiation with Group B while keep- ing confrontation minded LDCs in check; status as a C- 77 member that benefits from the brain drain a poten- tial source of embar- rassment vis-a-vis other LDCs. Unknown. Burma only recently began to talk to IFIs (ABD, IMF, IBRD) and re- mains aloof from most N/S discus- sions. Supports G-77 ef- forts for technology transfer code; seeks increased technical assistance. Has shown some in- terest in technology transfer code nego- tiations. Approved For Release 2002/06/13 : CIA-RDP80T00702A000400040005-8 Technology Transfer Matrix (Continued) Country (Per Capita Economic Manufacturing Sector Engineering Products Trade S&T Development GNP Labor Force Imports Exports Share (Thousands) (Million $ and %) Scope' Depth IMigration 2 Central Afri- Market economy; prefers 13% NA can Empire joint ventures that contri- ($170) bute to economic develop- ment. Chad ($75) Market economy; offers less than 26 tax and customs exemp- 10% tions for new investments; prefers joint ventures. ($810) tensive government par- ticipation in copper min- ing, other mineral re- sources, and energy sector; actively seeks large-scale foreign investment. Colombia ($660) Market economy; general- 19% ly favorable toward for- eign investment, but An- dean Pact regulations apply. 26 Negl L L (38) 21 Negl L L (Negl) 635 439 8 H (23) (Negl) 728 583 32 (39) (2) Key Technology Concerns Critical need for ba- sic agricultural tech- nology-most rural production is for subsistence only; po- tential for uranium mining; simple con- sumer goods indus- tries including tires, food processing, and textiles. Access to basic agri- cultural and indus- trial technology, such as irrigation, food processing, and food production; access to oil extraction and refining technology. H + Access to technology for offshore petrole- um exploration, food processing industry, and exploitation of mineral and timber resources. - Access to advanced technology for pe- troleum and coal ex- ploration, produc- tion, and processing. Stances on G-77 Proposals Inactive on global technology transfer issues. Seeks increased offi- cial technical assist- ance. Shows greater inter- est in S&T issues than in other G-77 proposals; host of subregional confer- ence in preparation for UNCSTD; drop- ped out of Andean Pact in 1976 to avoid Pact restric- tion on direct for- eign investment. Active on brain drain and technol- ogy transfer code is- sues; believes C-77 negotiators are dis- posed to make too many early conces- sions on property rights. Approved For Release 2002/06/13 : CIA-RDP80T00702A000400040005-8 Approved For Release 2002/06/13 : CIA-RDP80T00702A000400040005-8 Congo State-controlled socialist approx. ($430) economy except for petro- 10% leum industry, where gov- ernment participation is 35%. Costa Rica Market economy; encour- 20% ($1,300) ages a wide range of f or- eign investment, especially those which use local raw materials. Dominican Market economy; incen- 18% Republic tives provided for import ($785) substitution, assembly op- erations for reexport, and tourism. Ecuador Market economy; natural 17% ($715) resource exploitation and some basic industries re- served for public sector in- vestment. 88 59 Negl L M NA Access to agricultur- (36) al technology for coffee, cocoa, palm products, tobacco, and groundnuts. Re- cent departure of French leaves criti- cal technology gap in most state-owned industries: cement, pot- ash, sugar refining, and copper and zinc mining. 130 187 15 M H - Access to basic and (27) (3) advanced technol- ogy; gives conces- sions to foreign ca- pital as incentive to increase technology inflows. 104 106 NA L M - Seeks technology (34': transfer arrange- ,1971) meats that do not strain the balance of payments; other- wise, issue has low priority. 260 273 4 M M NA Access to technology (40) (Negl) particularly for pe- troleum exploration and refining and for hydroelectric gen- eration. Egypt Mixed capitalist-socialist 22% 1,000 1,175 11 H M ($340) economy; since 1973, the (30) (less government has encour- than 1) aged and facilitated pri- vate foreign investment. especially in export-orient- ed projects. Seeks to increase in- flows of Western technology by eas- ing restrictions on private foreign in- vestment; particular- ly interested in com- munications and de- sert reclamation techniques. Approved For Release 2002/06/13 : CIA-RDP80T00702A000400040005-8 Inactive on global S&T issues. Generally supports G-77 positions on trade and develop. ment matters. Be- lieves developed coun- tries have duty to give trade and tech- nological assistance to the developing countries. Relatively inactive on S&T issues. Technology transfer perceived as much less important issue than others in N;'S dialogue; will sup- port broad G-77 formulations. Supports G-77 posi- tions on technology transfer code and brain drain issues. Active on brain drain and technol- ogy transfer code is- sues; helped draft strong G-77 resolu- tion on obstacles to the application of S&T for develop- ment. Approved For Release 2002/06/13 : CIA-RDP80T00702A000400040005-8 Technology Transfer Matrix (Continued) Country (Per Capita Economic El Salvador Market economy; provides ($540) tariff and tax incentives for foreign investment. Ethiopia ($100) Socialist in modem sector; nationalized most large foreign investrn ! in the mid-1970s. Fiji ($1,000) Market economy; wel- comes foreign investment; grants tariff and tax con- cessions to processing and manufacturing industries. Manufacturing Sector Engineering S&T Development Products Trade GNP Labor Force Imports Exports Share (Thousands) (Million $ and %) Scope' Depth IMigration 192:0 210 158 12 M H (26) (2) approx. 565 84 10 L L 10% (28) (4) approx. 16 54 4 M H NA 10;0 (20) (2) less than 64 2 L H + 10% (41) (1) Gabon Market economy; actively ($3,000) encourages foreign invest- ment; seeks to diversify beyond mineral exploita- tion and timber produc- tion. Gambia ($200) Market economy; wel- less than 5 comes foreign investment 10% in labor-intensive and ex- port-oriented industries. (1973) needs substantial foreign technology in all phases of agri- culture and indus- try; anxious to ex- pand local partici- pation at manageri- al level, but remains dependent on French expertise to keep modern economy func- tioning. 7 NA L L NA Basic agricultural (14) and industrial tech- nology, particularly irrigation and light consumer industries. Approved For Release 2002/06/13 : CIA-RDP80T00702A000400040005-8 Key Technology Concerns Basic agricultural and industrial tech- nology; geothermal energy. Access to technology for agriculture, cof- fee processing, and light industry. Access to technology for expanding and diversifying agricul- tural output and ex- ploiting its major mineral resources- gold and copper. Ambitious 1976-80 de- velopment program Stances on G-77 Proposals Supports G-77 tech- nology transfer code proposals. Wants increased of- ficial technical as- sistance. Inactive on global S&T issues. Has shown interest in brain drain issue. Seeks increased offi- cial technical as- sistance. Approved For Release 2002/06/13 : CIA-RDP80T00702A000400040005-8 Ghana Market economy with approx. ($450) large-scale government 10% participation in cocoa marketing; provides incen- tives for substantial foreign investments in petroleum exploration and produc- tion, bauxite/alumina, and deep sea fishing; requires joint ventures- Guatemala Market economy; favor- 16% ($685) able attitude toward for- eign investment; provides some tax relief. Guinea Socialist economy in mod- less than Guyana ($525) em sector; deals flexibly 10% with foreign investors; seeks to expand food pro- duction, reduce import de- pendence, and increase ex- ports. Market economy with ele- approx. ments of socialism; govern- 10% ment policies discourage foreign investment Haiti Market economy; provides approx. ($195) tariff and tax incentives 10% for foreign investment; seeks increased investment in agriculture, natural re- source development, re- gional diversification, im- port substitution, and assembly industries. Honduras Market economy; seeks foreign investment to speed economic develop- ment; prefers joint ven- tures with local majority. 570 198 1 M M (25) (Negl) 180 110 8 M M (26) (2) (1973) Access to technology in such areas as co- coa production, pe- troleum, bauxite, alu- mina, and light con- sumer goods. - Access to technology for exploitation of petroleum, copper, and nickel resources. L NA Particularly anxious to bring in agricultur- al technology; mod- ern sector largely dependent on baux- ite/alumina indus- try for which no in- digenous expertise is available. 28 55 Negl L H (22) 312 29 2 L M (20) (3) 75 113 NA L M (28) Access to technology for exploration of bauxite reserves and alumina processing. Agricultural devel- opment. Access to technology for development of agriculture, forestry, and electric power generation and dis- tribution. Supports G-77 posi- tions on technology transfer code and brain drain. Supports G-77 tech- nology transfer code proposals. Supports C-77 pro- posals for increased official technical as- sistance. Inactive on interna- tional S&T issues; generally supports G-77 proposals on other issues. Supports G-77 posi- tions on brain drain and increased tech- nical assistance. Generally supports G-77 proposals on technology transfer code. Approved For Release 2002/06/13 : CIA-RDP80T00702A000400040005-8 Approved For Release 2002/06/13 : CIA-RDP80T00702A000400040005-8 Technology Transfer Matrix (Continued) Per Capita Economic GNP Labor Force Imports Exports I . GNP ) Manufacturing Sector Engineering S&T Development Share (Thousands) (Million $ and %) Scope' Depth 'Migration 2 India Market economy; public 16% 26,520 983 322 H L ($125) ownership of big new fa- 1 (16) (7) cites connected with mo- derization-steel mills, oil refineries, armament- and of railroads, energy Sector. and coalli'vrial banks; highly selective cri- teria for foreign invest- ment; seeks projects that expand exports or result in technology transfer. Indonesia Largely free enterprise less than economy but includes ma- 10% jor government firms in oil and domestic trade For- eign investment sought to supplement domestic ef- forts; incentives favor mainly labor-intensive, ex- port-oriented, and re- source-processing indus- tries. 6,600 2,310 53 H M + (41) (less than 1) Iran Market economy with approx. 2,120 4,990 NA large government petrole- 10% um sector; seeks foreign investment, particularly in high technology and ex- port-oriented enterprises; requires joint ventures with local majorities. Iraq Socialist economy; does approx. 156 ($1,395) not seek new foreign in- 10% vestment. 1,720 Negl H M + (41) Key Technology Concerns Energy exploration and development; seeks advanced tech- nology in computers and armaments, but with ndisn control; seeks technology trans. fer apart from foreign investment whenever possible: Easy access to foreign minerals S&T; seeks aid in basic agricul- tural and engineering S&T; watches technol- ogy charges and profit remittances closely. Nuclear power plant equipment; petro- chemical industry technology; direct reduction steel plants; copper refining. Nuclear power tech- nology; irrigation; petrochemicals; food processing equipment; comput- ers. Stances on G-77 Proposals Active in formulation of G-77 positions on technology transfer code, TCDC, and brain drain; helped draft strong C-77 reso- lution on obstacles to the application of SST for development; host for NAM and UNIDO S&T conferences. Actively supports LDC technology transfer proposals; assigns them fairly low prior- ity compared with Common Fund and other N/S issues. Has shown only mild interest in technol- ogy transfer code. Supports G-77 posi- tions on technology transfer code and brain drain issues. Approved For Release 2002/06/13 : CIA-RDP80T00702A000400040005-8 Approved For Release 2002/06/13 : CIA-RDP80T00702A000400040005-8 Ivory Coast Market economy; actively 16% 130 422 29 ($640) seeks direct foreign invest- ment. (33) (2) Jamaica Primarily free enterprise 13% 81 ($1,440) economy; some socialist features; prefers to work M H + Access to modem production methods in light industry and commercial agricul- ture-coffee, cocoa, and timber. on a joint venture basis with foreigners; incentives now provided for labor- intensive industries that are export oriented or im- port substitutive. Jordan ($820) Market economy; provides approx. tariff and tax incentives 10% for foreign private invest- ment. 94 232 21 M M + (32) (14) Kenya ($230) Kuwait ($12,500) Market economy; actively 14% 255 278 3 M M ? encourages private foreign (30) (1) investment; provides in- centives for import-substi- tuting and export-promot- ing industries. Market economy with Less than 88 1,090 185 M H + large government presence 10% (46) (2) in petroleum sector; wel- comes foreign investment to diversify petroleum- based economy; uses for- eign investment as a chan- nel for advanced foreign equipment and technical and managerial services. foreign minerals/ manufacturing tech- nology; watches technology charges and profit remit- tances closely. Access to basic and advanced industrial technology, espe- cially in the fertiliz- er industry. Basic technology in agriculture and in- dustry, especially textiles and auto as- sembly. Access to modern production methods in light industry and petroleum and pet- rochemical technol- ogy. Approved For Release 2002/06/13 : CIA-RDP80T00702A000400040005-8 Strong ties to French private sec- tor restrain activism in G-77 forums. Advocates formula- tion of a code of conduct for technol- ogy transfer; activ- ism on issue based more on political than economic con- cerns. Actively supports C- 77 brain drain posi- tions; proposed an international labor compensatory facili- ty to aid LDCs suf- fering losses of skilled manpower through migration. Supports G-77 brain drain proposals. Supports G-77 stances on technology trans- fer code and brain drain issues. Approved For Release 2002/06/13 : CIA-RDP80T00702A000400040005-8 Technology Transfer Matrix (Continued) Manufacturing Sector Engineering S&T Development Products Trade Country Key (Per Capita Economic GNP Labor Force Imports Exports Technology GNP) System Share (Thousands) (Million $ and %) Scope' Depth 'Migration' Concerns Lebanon Market economy; no new 15% ($400) foreign investments are being made because of un- stable conditions in the south, but foreign invest- ment is desired. Lesotho Market economy; seeks to less than ($180) maximize foreign invest- 10% ment by offering a wide range of generous invest- ment incentives. 110 312 128 M M (25) (26) (1973) Liberia Market economy; provides less than 58 ($600) tax and tariff incentives 10% for foreign investment. Libya Strong state intervention in less than 64 ($5,600) the economy; generally 10% discourages direct foreign investment, except on a highly selective basis in the crude oil sector; considers direct foreign investment a violation of national sover- eignty and existing policies call for disinvestment by foreigners. Stances on G-77 Proposals Fairly high level of Supports G-77 brain native business and drain proposals. technical manageri- al capability; tradi- tionally good access to foreign technical skills (especially in Europe); most press- ing new needs will depend on shape of reconstruction pro- grams after peace. Access to basic agri- Seeks increased offi- cultural and process- cial technical assis- ing technology and tance. advanced diamond mining technology; fears blockage by South African firms of developments that would be com- petitive in the South African market. cultural and indus- in technology trans- trial technology in- fer code. eluding food proc- essing, iron mining, and rubber produc- tion. 1,218 NA M M NA Wants foreign know- Supports C-77 pro- (34) how but desires to be posals for a technol- free of foreign influ- ogy transfer code. ence; seeks turnkey projects. , Approved For Release 2002/06/13 : CIA-RDP80T00702A000400040005-8 Approved For Release 2002/06/13 : CIA-RDP80T00702A000400040005-8 ($260) ments of socialism; mildly interested in joint ventures for exploitation of mineral resources. Malawi ($125) Malaysia ($855) Mali ($70) Market economy; desires foreign investment in la- bor-intensive industry with import-substitution capabilities. Market economy; increasing government role in econo- i 58 1 L 10% (21) (Neel) 15% 54 5 L (29) (4) 16% 1,151 239 M (33) (6) r- my is aimed toward acqu ing larger share of economic participation by ethnic Ma- lays; government actively promotes foreign invest- ment through tax and ex- port incentives Market economy with ele- less than ments of socialism; offers 10% tax incentives for foreign investment in selected in- dustries; requires 10- to 50- percent government equity. Mauritania Market economy with ele- 29% ($215) ments of socialism; nation- alized iron and copper properties in the mid- 1970s; does not actively seek foreign investment. Mauritius ($555) Market economy; wel- 15% comes foreign investment in export-oriented and la- bor-intensive industries. M NA Access to basic agri- cultural and indus- trial technology. Supports G-77 posi- tions on technology transfer code and brain drain issues. L NA Access to basic agri- Seeks increased offi- cultural and indus- cial technical as- trial technology. sistance. H Access to advanced technology, particu- larly in the extractive industries and to en- ergy-related technol- ogy such as LNG and oil equipment. Embraces LDC de- mands on technol- ogy transfer code and brain drain, but takes restrained stances in discus- sions and negotia- tions. Access to basic agri- cultural and industri- al technology, such as irrigation, food pro- cessing, beef produo- tion, and small con- sumer goods assem- 84 29 3 L L (16) (4) 16 36 6 L M (42) (5) (1972) 11 73 10 L (22) (3) bly. Access to basic in- dustrial and agricul- tural technology, such as beef produc- tion and irrigation; access to iron ore mining and process- ing and transporta- tion technology. M NA Access to basic agri- cultural (sugar) and industrial technol- ogy. Seeks increased offi- cial technical assis- tance. Not active on global S&T issues. Not active on global S&T issues. Approved For Release 2002/06/13 : CIA-RDP80T00702A000400040005-8 Approved For Release 2002/06/13 : CIA-RDP80T00702A000400040005-8 Technology Transfer Matrix (Continued) Country (Per Capita Economic Manufacturing Sector Engineering S&T Development Products Trade GNP Labor Force Imports Exports Share (Thousands) (Million $ and %) Scope'Depth'Migration - Mexico Primarily free enterprise 25% ($1,285) economy, but includes government firms in oil, commerce, and manufac- turing/processing; prohib- its foreign investment in many industries; permits direct foreign investment for import substitution. ex- port promotion, and devel- opment of lagging regions; prefers majority Mexican ownership. Morocco Market economy with ($470) dominant public sector; of- fers tax and credit incen- tives for tourism and se- lected industries. Mozambique ($250) Nepal ($95) 3,000 2,245 285 (37) (10) Key Technology Concerns H H + Seeks assurance that technology costs are not inflated (to mask profit remittances) or charged against outmoded equip- ment/processes; ac- cess to advanced S&T; development of indigenous R&D capability; govern- ment must approve all foreign technol- ogy transfers. 13% 750 732 7 M M (29) (Negl) Seeks foreign private in- approx. vestment, but transition 10% from market economy to socialism is restraining in- vestor interest. NA 79 NA M M (24) (1972) Market economy; encour- less than 100 ages private foreign invest- 10% ment in tourism. - Access to mining and processing tech- nology for phos- phates. Access to basic agri- cultural and indus- trial technology to improve domestic self-sufficiency; ac- cess to advanced technology in oil re- fining, transport, and mining; fears exploitation by pri- vate industry, par- ticularly by large multinational corpo- rations. Would welcome mul- tilateral official fi- nancial and technical support in developing hydropower resources. Approved For Release 2002/06/13 : CIA-RDP80T00702A000400040005-8 Stances on G-77 Proposals Formulates and spear- heads LDC demands on S&T issues; helped draft strong G-77 re- solution on obstacles to the application of S&T to development, Exhibits interest in G- 77 technology trans- fer code proposals. Not active on global S&T issues. Seeks increased offi- cial technical assist- ance. Approved For Release 2002/06/13 : CIA-RDP80TOO702AO00400040005-8 courage foreign invest- ment. Nicaragua Market economy; govern- 21% ($820) ment regulations and ad- ministrative practices en- al technology to in- S&T issues. crease exports. Niger Market economy; provides approx. ($105) incentives for foreign in- 10% vestment in a wide range of industries. Nigeria Market economy with gov- less than ($470) ernment participation in 10% petroleum, steel, banking and insurance; welcomes foreign investment that transfers technology, uses local raw materials, and produces import substi- tutes; requires joint ven- tures. North Yemen Market economy; seeks less than ($270) foreign investment for im- 10% port substitution and as a source of training for the labor force. 27 27 5 L L - Access to basic agri- (28) (5) cultural and industral technology, such as irrigation, food pro- cessing, and beef pro- duction; access to uranium mining tech- nology. 2,475 2,536 NA M L + Access to technology (42) for petroleum extrac- tion, refining, and distribution; heavy in- dustry (steel, cement); light industry (auto assembly, textiles, consumer durables); and agriculture (palm products, food-grains, coffee, cocoa, rub- ber). NA 46 Negi L L - Access to basic tech- (16) nology to develop infrastructure and agriculture and to train the labor force. Seeks greater offi- cial technical assis, tance. Support for G-77 proposals on tech- nology transfer code is tempered by de- sire for private in- vestment; seeks in- creased technical assistance. Supports G77 brain drain proposals; seeks increased official tech- nical assistance. Oman Market economy with gov- less than 56 278 NA L M + Access to foreign Shows interest in G- ($2,875) ernment participation in 10% (41) minerals/petroleum 77 technology trans- petroleum; encourages for- technology. fer code proposals. eign investment for im- port-substitution and em- ployment impact. Pakistan Market economy with 21% 3,470 513 15 M M ($170) large public sector; suspi- (24) (1) cious of large business en- terprises; favors foreign in- vestment that brings for- eign exchange earnings Oil and gas produc- tion technology; modernization of textile and fishing industries; larger and additional pow- er plants to meet in- creasing energy con- sumption needs, in- cluding a nuclear re- processing plant; im- proved medical tech nology. Supports G-77 pro- posals for technol- ogy transfer code. Approved For Release 2002/06/13 : CIA-RDP80TOO702AO00400040005-8 Approved For Release 2002/06/13 : CIA-RDP80T00702A000400040005-8 Technology Transfer Matrix (Continued) Manufacturing Sector Engineering S&T Development Products Trade Country (Per Capita GNP) Key Economic GNP Labor Force Imports Exports Technology Stances on G-77 System Share (Thousands) (Million $ and %) Scope 'Depth'Migration' Concerns Proposals Panama Market economy with 15% ($1,175) large public sector; pro- vides tax incentives for di- rect foreign investment. 30 155 NA M H NA Access to technology Supports G-77 pro- (20) for hydroelectric pow- posals for technol. er and copper explo- ogy transfer code. ration. Palma-New Market economy: seeks 15% 15) Guinea large-scale foreign invest- ($520) ment for development of its rich natural resources. Paraguay Market economy with 16% ($625) large public sector; pro- vides tax and tariff incen- tives for foreign invest- ments that process local raw materials and promote exports. Peru Market economy with ele- 26% ($775) ments of socialism; exten- sive government bureauc- racy discourages foreign investment. Philippines Market economy with 21% ($.385) large public sector in oil trade and development projects; seeks foreign in- vestment in accordance with government develop- ment plan. 87 13 M M NA Access to mining Not active on global (27) (2) technology for de- S&T issues. veloping copper, gold, and chromite resources; light in- dustry technology for fish canning and forestry. 27 NA L M - Access to basic tech- (38) nology for agricul- 800 522 11 M H (34) (less than 1) 1,320 1,198 10 H M (32) (Negl) Not active on global S&T issues. tural development and to advanced technology for hy- droelectric projects. Access to mining and processing tech- nology for copper, zinc, and lead; ac- cess to basic agricul- tural and light in- dustrial technology; elimination of re- strictive business practices that hin- der technology transfer. Supports G-77 pro- posals on most S&T issues; advocacy of C-77 stances has de- creased markedly over the last two years as external payments problems have mounted. Access to basic and advanced industrial technology; is at- tempting to upgrade role of manufactur- ing industry. Approved For Release 2002/06/13 : CIA-RDP80T00702A000400040005-8 Actively supports G- 77 technology trans- fer code and brain drain proposals, but generally does not give high priority to S&T issues. Approved For Release 2002/06/13 : CIA-RDP80T00702A000400040005-8 Qatar Market economy with less than ($12,660) large government petrole- 10% um sector; seeks foreign investment in the form of equipment and know-how; requires joint ventures with majority local partici- pation. NA 210 9 L H + (51) (17) Rwanda Market economy with ele- less than 19 25 Negi L L ($140) ments of socialism; seeks 10% (26) foreign private investment for export growth, import- substitution, and employ- ment effects. Saudi Arabia Market economy with less than 210 ($7,585) large government petrole- 10% um sector; seeks foreign direct investment for in- dustrialization; requires joint ventures; provides a variety of incentives to at- tract investments incorpo- rating advanced technol- ogy. Senegal Market economy with ele- 13% 80 ($385) ments of socialism; seeks foreign investment for de- velopment; provides gen- erous incentives. 1,050 Negl M M + (37) 184 51 M M (19) (8) Sierra Leone Market economy; seeks to less than 126 46 NA L M ($215) expand through foreign in- 10% vestment, particularly in mining projects. Singapore Market economy with 26% 153 ($2,520) large public sector; offers incentives for all foreign investment, particularly high technology industries . that increase productivity 2,346 1,663 H H (26) (25) Access to petroleum Not active on global and petrochemical S&T issues. technology. Access to basic agri- Not active on global cultural and indus- S&T issues. trial technology. Access to advanced technology for oil refining and the pet- rochemical industry; basic technology for development of agri- culture and water resources. Shows some support for G-77 technology transfer code proposals. Access to basic agri- cultural and industrial technology, such as ir- rigation and food pro- cessing; access to some advanced technology, such as oil refining and commercial sugar production. Access to basic agri- cultural and indus- trial technology, es- pecially iron and diamond mining. Government is shift- ing emphasis to higher technology industries; desires ready access to a broad range of ad- vanced technology. Supports G-77 tech- nology transfer code proposals. Supports G-77 tech- nology transfer code proposals. Supports LDC pro- posals, but main- tains very low profile role in inter- national forums. Approved For Release 2002/06/13 : CIA-RDP80T00702A000400040005-8 Approved For Release 2002/06/13 : CIA-RDP80T00702A000400040005-8 Technology Transfer Matrix (Continued) Manufacturing Sector Engineering S&T Deveiup.nent Products Trade (Per Capita Economic GNP Labor Force Imports Exports GNP) System Share (Thousands) (Million $ and %) Scope 'Depth' Migration s Somalia Market economy with ele- less than ($95) ments of socialism; lack of 10% clear guidelines has dis- couraged foreign invest- ment. priority to foreign invest- ments in heavy industry, chemicals, and electronics; prefers direct investment to technology licensing ar- rangements. South Yemen Principal services and in- less than ($295) dustry nationalized; pri- 10% vate enterprises limited mainly to trade and handi- crafts. Sri Lanka Market economy with 13% ($205) large public sector; offers wide range of incentives to attract private foreign in- vestment for export devel- opment. 31 Negl L L (22) ley Technology Concerns Access to technology for achievement of self-sufficiency in food supplies (espe- cially cereals and sugar), development of food processing industry, transport, communications, and export diversification. Easy access to ad- vanced foreign tech- nology and expansion of the domestic R&D base. key sectors for foreign technology are machinery, ship- building, electronics, electric power, met- als, chemicals, and textiles; desires to up- grade technology in industry, especially for export. Basic technology needed to build in- frastructure and to develop import-sub- stituting light indus- tries. 1,365 2,386 1,276 H H (27) (16) 13 1 L M (6) (1) (1969) 590 64 NA M M (9) Primarily interested in employment op- portunities; empha- sizes official foreign assistance for irriga- tion projects and private investment in export trade zone. Approved For Release 2002/06/13 : CIA-RDP80T00702A000400040005-8 Stances on G-77 Proposals Generally supports G- 77 technology trans- fer code proposals. Generally maintains low-key approach and goes along with G-77 positions; stance based more on politi- cal than economic concerns. Generally supports G- 77 position on tech- nology transfer code; seeks increased offi- cial technical assist- ance. Supports G-77 posi- tions on technology transfer code and brain drain issues. Approved For Release 2002/06/13 : CIA-RDP80T00702A000400040005-8 Market economy with ele- ($235) ments of socialism; pro- vides tax incentives for foreign investments pro- moting development. Surinam Market economy; offers ($1,250) generous tax and tariff concessions to foreign in- vestors in labor-intensive and export-oriented oper- ations; prefers joint ven- tures, particularly in ex- tractive industries. less than 306 307 10% (32) NA NA 36 (25) Swaziland Market economy; courts 13% ($400) foreign private investment for development of export industries. Syria Market economy with ele- 19% ($750) ments of socialism; permits wholly owned foreign in- vestment in free zones and joint ventures in state-con- trolled industries. Tanzania Socialist economy in the approx. ($145) modern sector; fears for- 10% eign domination of the economy; recent events, however, indicate some loosening of restrictions on investment. 4 (less than 1) (1972) NA L H NA 24U 48i 10 l1 H (29; (1) 224 236 NA L L (33) Access to technology Seeks increased of- for agricultural ex- ficial technical as- pansion, mineral re- sistance. serve exploitation (iron ore, chromite), and industrial devel- opment. Favors technology Assumes a low pro- improvement main- file on G-77 issues. ly in extractive in- dustries with em- phasis on methods transferable to other domestic industry. Access to basic agri. Not active on global cultural and food S&T issues. processing technol- ogy to enhance do- mestic self-sufficien- cy; and advanced consumer goods tech- nology for penetrat- ing South African markets (TV assem- bly, farm tractor pro- duction). Access to technology Supports G-77 posi- for nuclear power tions on technology development, oil ex- transfer code. ploration and pro- duction, and agricul- tural development. Access to basic in- Supports G-77 posi- dustrial and agricul- tion on technology tural technology transfer code; seeks with increasing em- increased official phasis on heavy in- technical assistance. dustry. Approved For Release 2002/06/13 : CIA-RDP80T00702A000400040005-8 Approved For Release 2002/06/13 : CIA-RDP80T00702A000400040005-8 Technology Transfer Matrix (Continued) Country (Per Capita Economic GNP) System Thailand Market economy; offers ($370) incentives for foreign in- vestment; uncertain politi- cal situation discourages foreign investment. ($215) ments of socialism; offers incentives for foreign in- vestment contributing to economic development. Trinidad and Market economy; provides Tobago incentives for foreign in- ($2,365) vestment; seeks joint ven- tures. Tunisia Market economy with ele- ($765) ments of socialism; active- ly seeks foreign investment in labor-intensive indus- tries and in industries pro- cessing raw materials for export. Uganda Market economy; chaotic ($220) public administration and neglect of the economy have seriously impeded both domestic and foreign investment. Manufacturing Sector Engineering S&T Development Products Trade GNP Labor Force Imports Exports Share (Thousands) (Million $ and %) Scope' Depth 'Migration 8 18% 1,170 1,140 36 M M - (35) (2) 48 1 L (28) (less than 1) 23% 245 13 M H - (16) (less than 1) approx. 266 526 10 M H - 10% (34) (1) less than NA 57 NA L L - 10% (44) Key Technology Concerns Access to technology to expand agricul- tural and industrial production, espe- cially for export; ac- cess to S&T for hy- dro-electric and nu- clear power devel- opment and explora- tion of offshore pe- troleum reserves. Access to basic tech- nology for agricul- ture and industry, including phosphate mining and cement production. Access to technology for offshore petrole- um exploration, re- fining, and develop- ment of industries based on natural gas. Access to mining S&T (phosphates, iron ore), and to technology for de- velopment of petro- leum and agricul- ture. Stances on G-77 Proposals Takes low-key po- sition on G-77 S&T proposals; not active in N/S discussions; generally supports G-77 positions on technology transfer code and brain drain. Not active on global S&T issues. Supports G-77 posi- tions on technology transfer code and brain drain issues. Supports G-77 posi- tion on technology transfer code. Access to basic agri- Seeks increased offi- cultural and light in- cial technical assist- dustrial technology. ance. Approved For Release 2002/06/13 : CIA-RDP80T00702A000400040005-8 Approved For Release 2002/06/13 : CIA-RDP80T00702A000400040005-8 United Arab Market economy with less than 40 Emirates large public sector; wel- 10% ($9,570) comes foreign investment for its technology and ex- pertise; has yet to formu- late a coherent or consis- tent policy toward foreign investment. Upper Volta Market economy; liberal ($100) investment code provides incentives for foreign in- vestment in mineral ex- ploitation and primary product processing. 150 41 Negl L L (27) Uruguay Market economy with ele- 23% 345 ($1,105) ments of socialism; wel- comes foreign investment in export industries based on domestic raw materials. Venezuela Market economy with gov- 19% ($2,500) emment control of basic natural resources; most foreign investment limited to minority equity posi- tion; seeks foreign invest- ment as a vehicle for tech- nology transfer; favors investments in agriculture, petrochemicals, and heavy industry. Zaire Market economy with less than ($125) state control of large firms; 10% generally welcomes for- eign investment. Zambia Market economy with ele- 13% ($400) ments of socialism; seeks foreign investment for de- velopment of agriculture and import substitution, requires joint ventures. 33 3 M H (18) (approx. 1) petroleum S&T and to technology to aid in development of social and economic infrastructure. Access to basic agri- cultural and indus- trial technology (ir- rigation, food proc- essing and tire re- treading); access to mining, construc- tion, and transport technology for the Tambao manganese project. Access to advanced industrial technol- ogy; assurance of a fair payments struc- ture. 2,793 25 M H + Access to technology (48) Negl for petroleum sector (offshore explora- tion, extraction and refining of very heavy oils) and for its expanding nonpe- troleum industrial sector (steel, alumi- num, hydroelectric generation). 711 300 6 M L (32) (less than 1) Access to basic tech- nology for agricul- ture, mining, and in- dustry; especially concerned with cop- per and other miner- als/metals technol- ogy. Not active on global S&T issues. Seeks increased offi- cial technical assist- ance. Supports interna- tional code of con- duct for technology transfers; issue has low priority. Plays a leading role in promoting G-77 demands on technol- ogy transfer, primary drafter of G-77 reso- lution on obstacles to application of S&T for development. Supports G-77 posi- tions on technology transfer code and brain drain issues. 130 329 N 4 L ivi N y Access to technology (35) for import substitu- tion (tires, shoes, textiles), develop- ment of the copper industry, and expan- sion oa agriculture, Not active on global S&T issues. Symbols m these columns denote high, nieiiiurra, ai,t :>u. ank oper;n attic i ..r r .r ..ti Symbols in this column are: +, for net gainer of educated people; -, for net loser; ?, for no sig ificant net flotiti; a.d NA, for no data available. Approved For Release 2002/06/13 : CIA-RDP80T00702A000400040005-8 Approved For Release 2002/06/13 : CIA-RDP80T00702A000400040005-8 APPENDIX A /` TECHNOLOGY TRANSFER SECTION OF THE MANILA DECLARATION Section F;ve TRANSFER OF TECHNOLOGY I. Action to strengthen the technological capacity of developing countries 1. Decisions should be reached at UNCTAD IV for strengthening the technological capacity of developing countries and thereby reducing their technological dependence. Developing countries should consider measures for formulating national policies, regulations and laws and establishing appropriate institL'tional structures at the country level, and expl-re the main lines of co-operation among themselves. These measures should be complemented by a full range of technical assistance activities necessary for interlinking the measures at the national, sub-regional, regional and international levels through the formulation of appropriate international policies. such assistance requires effective co-operation from the developed countries, as well as co-ordinated acti.o by international organizations. In considering these measures, account should he taken inter alia, of resolution 2 (') of the Committee on Transfer of Technology and General Assembly resolution 3507 (XXX). A. Action by the developing countries 2. The developing countries should give consideration, at the national level, to: (a) Formulation of a technology plan, as an integral part of their national development plans, as well as the co-ordination of policies in a number of interrelated areas, including licensing arrangements, transfer, development and adaptation of technology, industrial property laws and practices, foreign investments, research and development; 25X1A Approved For Release 2002/06/13 : CIA-RDP80T00702A000400040005-8 Approved For Release 2002/06/13 : CIA-RDP80T00702A000400040005-8 (b) EstablishmenL of oppropriat:: institutional machinery, including national centres for the development and transfer of technology with urgent attention being paid to defining the role and functions of such centres, including the principal linkages which need to be established wit? other national bodies or institutions; (c) Elaboration of all necessary measures to ensure optimum utilization of their qualified manpower resources. B, Co-operation amon evelopin countries 3. To supplement the national effort, the developing countries should give consideration at the sub-rc-J oval, regional and inter-regional levels to: (a) E-laboration of preferenti-al ? arrangements for- the development and transfer of technology among themselves; these preferential arrangements for co-operation should, inter alia, be consistent with arrangements involving sub-regional and regional co-operation and integration; (b) Establishment of sub-regional and regional centres for the development and transfer of technology which could serve as essential links with national centres in developing countries, ant' also to implement initiatives such as; (i) Exchange of information on technological alternatives available to developing countries as a means of improving their negotiating powers (ii) Institutional arrangements in resaect of common technological research and training programmes; (iii) Assisting national, centres effectively to fulfil their role, inter alia, in implementing a code of conduct for the transfer of technology and preparing model contracts for licensing agreements on patents; (c) Establishment of sub-regional, re