International commodity problems and schemes for international compensatory financing

Abstract

Several economic and political problems have arisen from the fall in commodity prices over the last ten years. The existing international commodity agreements, while useful, in practice face several difficulties. For this reason, the article proposes a development insurance fund to stabilize export proceeds. These schemes do not attempt to influence the terms of trade or to stabilize market price or output. Therefore, their operation in relation to commodity agreements requires further investigation. JEL: F10, F31, F33, F42

Keywords

• Commodity prices
• international arrangements
• insurance fund
• export proceeds