At Manila, the Managing Director of the IMF described as paradoxical the fact that the industrialized countries, most of which are not using their production potential to the full, hesitate to increase their financial aid to poor countries. This is despite the fact that such aid could result in increased global demand and thus contribute to reactivating world trade in a recovery of production. He argued there is nothing in the present state of deflationary chain reactions in the industrialised world, stagnation feeding inflation, which would counsel against such an increase in financial aid. Richard Jolly urges that this impressive call for action be turned into a joint initiative combining some Keynesian stimulus to world demand with a restructuring in such key sectors as energy, agriculture, industry and some commodities. Both North and South could gain from such an initiative. By increasing employment, its implementation would remove some of the fears of and opposition to adjustment in other areas.