Functional Analysis of Public International Lending Operations
In Chapter II public international loans were classified according to function. In this chapter, we shall analyze these functions as they apply to economic development. To facilitate this analysis, we shall divide loans into the following broad categories: (1) non-project loans in support of development; (2) loans for specific infrastructure projects; (3) loans for specific projects in directly productive activities; (4) loans for social projects or programs. Sometimes international loans to development banks or to national credit institutions designed to finance certain types of economic activity are listed as a separate category. However, since the purposes for which the funds are used include one or more of the above categories, loans to national credit institutions will be regarded here as techniques for making external credits available, rather than being considered a distinct function or purpose. We shall, however, deal with the special problems of loans to national development banks and other specialized credit institutions in a separate section of this chapter.
Under the broad heading of "non-project loans in support of development" we shall include all loans that are not tied to a specific project or a group of projects,