The Expansion of Processing in Developing Countries and International Policy Requirements

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Evaluation of the Role of Expanded Domestic Processing in the Development Process
A variety of policy proposals and options have been put forward in recent years with respect to the role of primary commodities in the development process. This has been due to a number of factors which include a perceived failure of trade to act as agent of dynamic internal economic change; the many problems encountered with the level and stability of primary export revenues; the terms of trade of exporters of primary commodities; the fact that during the United Nations First Development Decade (1960-70) the position of LDCs generally worsened vis-a-vis the advanced economies, and in some respects even absolutely;(1) an increasing pursuance of economic nationalism and emphasis on self-reliance. All these elements culminated in collective action at an international level, aiming at the establishment of a New International Economic Order. (2)
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