these LCDs. There is an appallingly low per capita income, which is still much less than $1,000 per year in many countries. At the same time, the debt burden is increasing fast. Since the Arab oil embargo in 1973-1974, the debt of developing countries has more than quadrupled to $425 billion, causing more of their income to go for debt service at higher interest rates prevailing in the world financial markets.
The Third World countries want total global restructuring of the economies. They want both aid and trade, particularly favorable terms of trade. For many years, the United Nations asked the industrialized countries to provide $7 of every $1,000 of output--seven--tenths of 1 percent of GNP. Although the United States is the world's largest donor in absolute terms, it supplies only $2 in aid for every $1,000 of GNP. The Western nations as a group meet about half of the United Nations target, which obviously is not enough, and the LDCs want the Western countries to fulfill that goal.
The Third World countries also want to increase trade with the Western countries. They want the IMF to relax the conditions of its loans and provide more access to SDRs, the instruments nations use to settle accounts with each other. They want the World Bank to set up a special energy affiliate that will facilitate Third World countries' paying for their energy debts. Under their proposal, the affiliate would provide aid amounting to $30 billion from 1982 through 1986 to cut their oil-import bills by $25 to $30 billion in inflation-adjusted dollars during this decade. These are strong demands to make of the Western nations, who are, themselves, beset with inflation and unemployment. It was no wonder, then, that the Cancún meeting ended with rhetoric and platitudes, as have so many summit conferences before.
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Publication information: Book title: OPEC, the Petroleum Industry, and United States Energy Policy. Contributors: Arabinda Ghosh - Author. Publisher: Quorum Books. Place of publication: Westport, CT. Publication year: 1983. Page number: 148.
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