ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846
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Monetary Policy- Unconvincing Alibis

existence' will have a subscribed capital of only $ 400 million, in 1980 prices. Even of this only 30 per cent is payable in cash; the rest is to be on call. Moreover, the Fund has not been given the powers to raise resources through international market borrowings. In- stead it is supposed to raise funds through the members' commodity agreements. As things stand, out of the four international commodity agreements which existed, two, cocoa and tin. have expired because their renewal could not be agreed upon between producing and consuming countries. The remaining two, coffee and sugar, even if not in imminent danger, have access to some limited funding of their own. For them to agree to pool their funds with the Common Fund could set in motion forces which might well endanger the very existence of the present arrangements. The question the Third World countries, must, therefore, ask themselves is whether they have in the end got anything of substance at all.

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