Originally published in 1993, this book provides an excellent analysis of commodity policies internationally during the late 20th Century. It discusses 2 major methods of market regulation: price stabilization – based on buffer stocks or export quotas – and compensatory finance. The authors analyse whether major commodity policies have reached their primary objectives and to what extent they have had economic side effects. Discussion of more general policy issues centres around three international commodity agreements for coffee, rubber and cocoa. The authors also look at the policies adopted by individual nations to regulate commodity trading and assess to what extent they have reached their objectives. A discussion of the intervention of the International Monetary Fund and STABEX assesses the degree of stability they can provide in a highly volatile and variable environment. Nearly 30 years later, volatile world commodity markets are still a major issue in the policy dialogue. Although topics, policy instruments and concepts have changed, this book remains a fundamental contribution to the study of international commodity policy. It will be of great interest to students of commodity policy and economic development and economists in national and international organizations dealing with market stabilization.
Part 1: The Politics and Economics of Commodity Agreements and Compensatory Financing 1. The History of Politics of International Commodity Agreements and Compensatory Financing 2. The Economics of Stabilization: A Historical Survey Part 2: Compensatory Financing: An Economic Evaluation of Current Programmes 3. The International Monetary Fund’s Compensatory Financing Facility 4. Commodity-Related Financial Compensation by the European Community 5. Food Security and Compensatory Financing: A Discussion of the International Monetary Fund’s Cereal Import Facility Part 3: Commodity Arrangements: An Economic Evaluation of Current Programmes 6. The International Coffee Agreement 7. The International Natural Rubber Agreement 8. The International Cocoa Agreement 9. Commodity Protocols 10. A Comparison and Evaluation of the Arrangements.