A NxEARLimR article in this series' posed the general problem of the necessity for foreign developmental assistance to the under-developed parts of the world, and dealt with the questions of choice of law and remedy applicable to economic development loan agreements made with these States by other States or by international organizations. Numerous policy declarations by spokesmen of States of the western world indicate that a substantial portion of the funds for economic development must come

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... om private sources. 2 From the free world perspective, an important reason in support of substantial private assistance to less developed countries is that private investment tends, though not invariably, to associate with private areas of the economy in the recipient State. This association may serve to establish and sustain the type of mixed public-private economy that western States have found conducive to maintaining a large degree of individual choice in political and economic matters. At the same time, it provides the modicum of governmental participation that seems essential for planning on a long-range national scale and assisting the economy during extreme fluctuations in the business cycle. If we conclude that private investment in the less developed countries is both an economic necessity and a desired policy approach, then it would appear desirable to identify means of encouraging its flow and assuring the performance of agreements by which such assistance is extended. A variety of means of protecting private investments in underdeveloped areas have been advanced from numerous quarters in the last decade.