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Despite the fairly widespread move towards more open trade policies in developing countries relatively little attention has been paid to the effect of these policies on the terms of trade. Using a large sample of countries this paper tries to assess empirically the validity of the 'small country assumption' which underlies the Washington consensus on development strategies. Our evidence suggests that there is a sizable group of countries (LDCs and non-LDCs) for which the assumption of exogenous traded-goods prices can be rejected. One implication is that terms of trade considerations should be included in the assessment of trade-liberalization policies. These effects might rise considerably when several countries liberalize simultaneously.

During the last 40 years since the Prebisch-Singer terms of trade deterioration hypothesis was first proposed, the commodity composition of exports of developing countries has undergone a major change in the direction of dominance of manufacturers in their nonfuel exports, with strong growth in the volume of their manufactured exports. But this did not allow developing countries to escape unequal exchange relations with the industrial countries. Their barter terms of trade in manufactures showed signs of weakness rather than improvement, and clearly failed to reflect the respective productivity trends, leading to deterioration in factoral terms of trade.

The Keynesian Consensus was the dominant concept in the area of development thinking in the period after the Second World War. However, its reign came to an end in the early 1970s, when the Bretton Woods system of exchange rates collapsed in 1971 and, more importantly, when OPEC quadrupled the price of oil in 1973. However, there has been a movement away from the Washington Consensus in the 1990s. Increased inequalities between and within countries in globalization and free markets are the main developments during this era.

Compares the economic forecasts discussed in Austin Robinson's `The Economics of the Next Century' and John Maynard Keynes' `Economic Possibilities for our Grandchildren'. Similarities in the two forecasts; Differences.

Presents a study of the effects of attempts to stabilize the labor force in the modern urban sector of Kenya. Significance of a marked decline in labor turnover since the country's independence; Importance of changes in job turnover.

Discusses the distribution of gains between investing and borrowing countries. Problems with different commodities; Obstacles toward national industrialization; Enclave effects associated with foreign investment.

Examines the disincentive effects and policy implications of food aid in India. Four domestic uses of food aid; Effects of food aid on agricultural production; Implications for food aid allocation; Comparable disincentive effects of other types of aid.

Focuses on internal dualism and inequalities within developing countries. Definition of dualism; Description of dualism in the world economy; Application of dualism to western concepts.