Developing Nations Quotes
Despite developed nation calls for free trade, The US, EEC and Japan maintain an extensive system of agricultural subsidies which are politically difficult to eliminate while expecting developing nations to eliminate their protectionist practices.
His definition of foreign aid given in this quotation is a classic example of political rhetoric. It is exaggerated somewhat, but basically true. The poor in America do not really pay much in taxes that would pay for foreign aid. However the middle class does. In the foreign counties much of the foreign aid money gets siphoned off by graft and corruption which is inevitably dominated by some of the rich of the country. Even if the money is spent without any graft or bribery, materials have to be procured and labor has to be supplied and foreign rich people own the companies which make the profits selling goods, labor and services to the foreign aid projects. In some nations the rich had set up a two-tier pricing for their products and services. One for normal business and commerce; a higher one for foreign aid projects.
These loans come from either the World Bank or the International Monetary Fund, both of which are headquartered in Washington. Usually, financially distressed countries participating in such a program have to agree to a series of economic reforms which the government of the country would not make if the pressure were not there. Therefore some like Goldsmith argue that there is a loss of sovereignty.
This was an incredible prediction that few people thought was possible. This speech was given in the early days of WWII when it was far from clear that we would win.