Collective Self-Reliance of Developing Countries
The world economy is now in intense agony — sharper than ever experienced since the War. The international monetary order, carefully constructed with gold as its lynchpin and with fixed exchange rates, is in a shambles. Trade patterns, laboriously built up since the War, are facing their biggest challenge. The entire framework of domestic policies built on the assumption of steady growth (or only minor recessions) is now under questioning. Expectations of decline in industrial output ranging over 10 per cent are no longer restricted to whispers at cocktails. They are officially pronounced. Unemployment in the developed countries, some say, could swell nearly anywhere up to 10 per cent — levels which only a year ago were thought of as impossible. The identification of economic power with international liquidity has been all but destroyed in the wake of the oil price rise. Prices of other primary commodities are falling rapidly.
KeywordsBurning Depression Europe Income Assure
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- 7.For details, see Surendra J. Patel, ‘Some implications of the structural change in exports of developing countries’, Foreign Trade Review (New Delhi, Jan–Mar 1971).Google Scholar