Thanks are due to Eileen Marshall for comments on an earlier draft of this article.
2.
See, for example, Sidney Dell and Roger Lawrence. "Towards an Equitable International Adjustment Process", Trade and Development, Spring 1979.
3.
For an elaboration of the arguments see W.M. Corden, Inflation, Exchange Rates and the World Economy: Lectures on International Monetary Economics (Oxford University Press, 1978). "The effects of the Oil Price Rise on the International Economy", in M. Artis and R. Nobay (eds.), Essays in Economic Analysis ( Cambridge University Press, 1978). "Implications of the Oil Price Rise", Journal of World Trade Law, March/April 1974, and W.M. Corden and P.M. Oppenheimer, "Basic Implications of the Rise in Oil Prices", Moorgate and Wall Street, Autumn 1974.
4.
For a fuller presentation of the argument see Geoffrey Maynard, "Keynes and Unemployment Today", Three Banks Review, December 1978.
5.
The Brandt Report maintains that "if developing countries outside OPEC had cut their imports of manufacturing goods to meet the increased oil prices of 1973-4, there would have been three million more unemployed in the OECD countries" (North-South: A Programme for Survival, p. 238).
6.
A more detailed explanation of the mechanism through which this could be done is contained in Graham Bird, "An Integrated Programme for Finance and Aid", The Banker, September 1979, and "Proposals for an Aid Augmented Substitution Account", mimeographed, 1980.
7.
For a fuller explanation of the link proposal see Graham Bird, The International Monetary System and the Less Developed Countries (Macmillan , London, 1978), or Graham Bird "Less Developed Countries and the Reform of the International Monetary System", ODI Review, No. 1, 1977.
8.
Surpluses do not however constitute the single most appropriate criterion for deciding which countries are most suited to donate aid. Surplus countries are not always the richest ones. Thus although they may be able to finance a large current aid flow, the grant element may have to be low. See, for a fuller discussion, John Williamson, "The International Financial System " in E. R. Fried and C. L. Schultze (eds.) Higher Oil Prices and the World Economy (Brookings Institution, 1975), and "More Flexibility in Meeting Aid Targets Could Raise the Value of Aid to Recipients", IMF Survey, November 4, 1974.
9.
A more elaborate but basically similar proposal has been put forward by Abbott, op. cit. International Indebtedness and the Developing Countries ( Croom Helm, London, 1979).
10.
See Graham Bird, "Primary Product Price Instability: A proposal for Financing Stabilization Schemes", Economic Notes, 1975, and Graham Bird, "The Role of SDRs in Financing Commodity Stabilization". Journal of World Trade Law, 1976.
11.
This is at the low end of a range suggested by A.G. Hart, N. Kaldor and J. Tinbergen, "The Case for an International Commodity Reserve Currency" in Proceedings of the UN Conference on Trade and Development, Vol. III, New York, United Nations, 1964.
12.
The Brandt Report refers to an econometric study which suggests that the effect of an increase in the transfer of resources to non oil developing countries, of $20 billion annually would raise the exports of industrial countries by about 3 per cent. per year. The largest single long term contribution to the additional resource flow to developing countries might be expected to come from the move to an SDR based system in conjunction with the introduction of an SDR/aid link. Contributions coming from changes in IMF conditionality, recycling, and debt relief though probably smaller, could however still be significant (p. 241).
