ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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NORTH-Triumph of the Wheat Belt

at Santiago. Must developing countries rely heavily on exports of one or two primary products that are subject to considerable prices fluctuations. Sonic of these products, like tea, are also subjected to high levels of customs and/ or internal taxes resulting in lower export earning to their exporters. The situation is somewhat different in respect of such commodities us sugar, wheat, rice, vegetable oils, tobacco and cotton. Domestic production of these commodities in the developed countries is heavily protected through import quotas as well as price support policies. It is estimated that all the developed countries including Japan, spend an estimated $ 21-24 billion in payment of direct subsidies or in sustaining managed prices above free market levels. This is far in excess of the official aid flowing from these countries to the developing countries. The developing countries ought to be pressing their ease for at least some entry into these protected markets. According to one estimate, the developing countries would stand to gain $ 10 billion of export earnings by 1980 if all the protective devices were removed. It should not be impossible for the developed countries to make a phased reduction of the present levels of production of many of these items as employment opportunities grow in other lines of production. And in the case of those West European countries which are experiencing labour shortage such a scheme could be introduced without causing much economic disruption.

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