International commodity agreements and developing countries
Harris, S.A.
Span 21(2): 80-82
1978
ISSN/ISBN: 0584-8024 Document Number: 261730
This paper argues that every decade has its development panacea and that currently it is the International Programme for Commodities. Only 5 full ICAs were successfully negotiated between 1945 and 1976. The stated aims of the IPC are ambiguous - price stabilization does not necessarily lead to export earnings stabilization: another inconsistency is that prices are expected both to take account of world inflation and promote supply/demand equilibrium. 2 other fundamental issues are the effect of government actions on market instability (domestic industries will be expanded to take advantage of higher prices) and of the fluidity of world markets.