Wednesday, 1 December 1999

From "A Marshall Plan for the Third World"

By Sir Bernard Braine (Third World Quarterly, Vol. 1, No. 2. (Apr., 1979), p. 48).

Take first the question of access to markets. There is evidence that tariff cuts by richer countries permitting an increase in imports of lower cost manufactures from developing countries would lower prices and have more than a marginal anti-inflationary effect. Would this not save some jobs which might otherwise be threatened? Better market access for the developing countries would enhance their capacity to buy more from the developed, especially capital goods that they so greatly need. Would this not stimulate production and employment in the developed countries? Then again, the stabilisation of commodity prices by international agreement would help substantially to keep inflation under control. It would do so by preventing violent price fluctuations and the uncertainties which these cause and which in turn hamper investment in new sources of supply of primary commodities, especially minerals, and so prevent that steady increase in production which an expanding world economy requires.

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