New Instruments
We feel that there is a necessity to build up new institutions, mechanisms and instruments which would facilitate and promote exchanges among developing countries. There are two ways in which this co-operation can be utilised. One is by setting up through developed co-ordinated action, a countervailing power to the world, so that there can be equality in bargaining strength. On the other hand, trade and other exchanges can be intensified through preferential trading arrangements, and payments agreement.
The value of trade amongst developing countries accounts for only twenty per cent of their total exports, as against the developed countries accounting for 75 per cent of their exports to each other. New measures have to be defined, based on a system of preferences covering trade between developing countries, capitalising on existing or new forms of specialisation. Such measures to be effective, would have to include both tariff and non-tariff preferences for primary and manufactured goods.
Joint action by producer-developing countries to regulate supplies coming on the world market could enhance their bargaining position in global negotiations with either developed States or transnational corporations. These are a few of the ideas that need to be explored through institutions which have yet to be set up.
At the last session we stressed the need for co-operation rather than confrontation. We stated that the problems faced not only by the developing countries but by the entire world as well would not be removed by creating conditions of chaos or of bitter confrontation between the rich and the poor. It is still our firm belief that only through co-operation and mutual accommodation can we hope to achieve a wiser and fairer use of the world's resources.
The world is facing today an economic crisis of un-precedented magnitude and one which has so many components that it is difficult to decide where to begin the process of resolving it. We cannot hope to solve all the problems immediately. Nor can we afford to delay consideration of any one problem in favour of others. While our priorities may be different, the need for a simultaneous, many-sided and integrated approach is generally recognised as essential.