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The author reviews the issues and problems which have arisen since May 1976, following the fourth meeting of the United Nations Conference on Trade and Development (UNCTAD). He concludes that prospects for agreement between the developing countries in the Group of 77 and the industrialized West are slight unless there is substantial modification of position by either side.

This paper discusses some major economic problems raised by proposals towards a new international commodity policy. The author analyses the economic implications of commodity price stabilization and price raising, and focuses on the questions of operationality of the IPC and on the alleged merits of a common financing of individual buffer stocks. He discusses financing schemes compensating for fluctuations of export earnings, and finally points to a number of areas in which Europe could make a constructive contribution to mitigate the commodity problem.