U.N.C.T.A.D. and After:Anatomy of a Failure

The first third of the 1960's was marked by growing concern over the inadequacies of the international economic system and a series of ambitious initiatives for its reform. The Kennedy Round of negotiations conducted through G.A.T.T. (General Agreement on Trade and Tariffs) was launched with the avowed aim of ending protective tariffs and related obstacles to world trade. Almost all governments, central banks, and international monetary organisations supported—in one form or another—international liquidity reform in order to break the artificial dependence of trade expansion on gold mining and on United States and United Kingdom payments deficits, and to replace these variables by a managed system, based on an international reserve unit. Both the World Bank and the Organisation for Economic Co-operation and Development (O.E.C.D.) argued the case for expanded, longer- period, development assistance on easier terms and with fewer ties to purchase the exports of lender or donor countries. Spokesmen not only of developing but also of industrial economies appeared to endorse this line of argument. Regional economic integration among developing economies moved out of the realm of academic speculation and vague speeches and into the category of political-economic programmes for early implementation.