Question

Explain any four reforms proposed by the report brought out by The United Nations Conference on Trade and Development (UNCTAD) in 1972 titled ‘Towards a New Trade Policy for Development’.

Answer 1

The UNCTAD report of 1972 suggested reforms to improve the economic condition of developing countries. The important reforms were:

1. Fair Prices: Developing countries mainly export primary goods. The report called for stable, fair prices for raw materials so these countries could earn higher income from exports.
2. Trade Concessions: Developed countries were asked to reduce tariffs and remove trade restrictions on goods imported from developing nations to encourage exports from developing nations.
3. Control of MNCs: The report suggested regulating the activities of multinational companies to prevent the exploitation of resources and labour in developing countries.
4. Technology Transfer: Developed nations were encouraged to transfer modern technology to developing countries on easy and affordable terms to promote industrial growth.
5. Financial Aid: Developing countries require financial support. The report recommended granting loans on easy terms and increasing development assistance.
6. Equal Participation: Developing countries demanded a greater role in decision-making in international financial institutions like the IMF and World Bank