CONCLUSIONIt is tempting to be somewhat negative when drawing conclusions on the trade and aid relations between the Community and the
developing countries. Positive steps have certainly been taken in increasing aid, increasing the number of countries eligible for
preferential treatment, and establishing a reasonably efficient export earnings stabilization scheme. Nevertheless, the total amount
of aid as a proportion of EC GNP, the modest amount of monies
allocated to STABEX, the limitations of GSP, and the actual reduction in the proportion of trade over time all indicate a less than
desirable relationship. Add to this the overriding impression that
the primary goal of these relations is to continue to protect EC
markets against competition while simultaneously maintaining low-
cost tropical goods supplies, and the less than totally positive at-
titude of the less-developed countries toward the Community is at
TERMS AND QUESTIONS FOR REVIEW
|1. ||What was the impetus behind the first Lomé Convention?|
|2. ||What, in the eyes of the developing world, have been some of
the problems with EC relations with LDCs through the Lomé Conventions?|
|3. ||Why might there be, theoretically, a secular deterioration in
the terms of trade of the LDCS? What is the historical record on this?|
|4. ||Why might the source of a product's price decline make a difference on the revenue lost from export earnings?|
|5. ||Why is STABEX considered an efficient means of income
support for LDCS?|
|6. ||How does the concept of insurance apply to the functioning
|7. ||Why does the GSP in fact give little inducement to LDC exports to the EC?|
Questia, a part of Gale, Cengage Learning. www.questia.com
Book title: The Economic Principles of European Integration.
Contributors: Stephen Frank Overturf - Author.
Place of publication: New York.
Publication year: 1986.
Page number: 101.
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