The possible uses of commodity agreements
Keywords:Commodity agreements, buffer stocks, developing countries, assistance
In recent years, the idea of commodity agreements has gained traction and a system of such agreements centred on buffer stocks is now being vigorously sought by developing countries. The present work argues, however, that even if disputed issues such as resource investment in and control over operations are resolved, it is probable that the hopes of developing countries for assistance from commodity agreements are doomed to disappoint. To argue this, the author considers each of the possible purposes that might be served by a commodity agreement - developing countries gaining control of their own resources, stabilisation and improved terms of trade.
JEL: F10, F30, F40