North-South Commerce and Oficial Development Aid: Some Contradictory Evidence

Abstract

That, traditionally, North-South commerce is unfavorably tilted towards the interests of the former is not new: but how is a countries official Aid for Development implicated in the equation? This two-pronged relationship is the subject of the article, which, based on statistics from 1988 to 1995, underlines the importance of the global petroleum trade in the balance between Spainís contribution to Aid for Development and Spainish commercialimport-export gains with countries in the South. By using petroleum as a key ingredient in analyzing the overall relationship, the author demonstrates the quantitative deterioration of Spainish Aid for Development during this period which, in constant prices, revealsthat only in 1991 did the Aid for Development show favorable results for the countries of the South vis a vis the commercial relationship.