POINT FOUR PROGRAM

U.S. policy of technical assistance and economic aid to underdeveloped countries, so named because it was the fourth point of President Harry S. Truman's 1949 inaugural address. The first appropriations were made in 1950. The program was originally administered by a special agency of the Department of State, but in 1953 it was merged with other foreign-aid programs. Although it was unclear at the outset what form aid to underdeveloped countries would take, emphasis quickly was placed on technical assistance, largely in the fields of agriculture, public health, and education. To private capital, on a remunerative basis, was left the task of providing public structures and resources needed in industry. Some technical assistance was furnished through specialized United Nations agencies, but most was provided initially mainly by the United States and, on a bilateral basis, frequently through contracts with U.S. business and educational organizations. Eventually several new national and international organizations were created to contribute to various aspects of developmentsuch as the International Finance Corporation (1956) for investing equity capital in private enterprises in underdeveloped countries, the Development Loan Fund (1957) for long-term credits, and the Inter-American Development Bank (1961) for regional loans. The United States also sought increased capital for such existing agencies as the Export-Import Bank, the World Bank, and the International Monetary Fund.