0 Nimrat Asked: September 8, 20212021-09-08T12:16:32+05:30 2021-09-08T12:16:32+05:30 Write note on”UNCTAD’s Integrated Programme on Commodities.” 0 Write note on”UNCTAD’s Integrated Programme on Commodities.” 1 Answer Voted Oldest Recent Nimrat 2021-09-08T12:21:31+05:30Added an answer on September 8, 2021 at 12:21 pm UNCTAD: The United Nations Conference on Trade and Development (UNCTAD) was established in 1964 in order to forum where the developing countries could discuss the problems relating to their economic development. UNCTAD was set up to handle the peculiar problems of developing countries. One of the functions of the UNCTAD is to find a solution to the commodity problems. The UNCTAD has prepared a number of commodity agreements UNCTAD has set up a committee to study problems of commodities of interest to developing countries and suggest various ways of ameliorating adverse effects of the prevailing commodity trade. A major achievement of UNCTAD has been to formulate the following: (1) Integrated Programme on Commodities (IPC) (2) Common Fund Integrated Programme On Commodities (IPC) It may be argued that if more than one commodity is to be the subject of an international commodity agreement then gains may be made by establishing a common fund to finance buffer stock operations. The basis of the arguments is that of ‘risk sharing’. Unless commodity prices move perfectly in step with one another, the fund of money that will be needed to finance operations in a combined buffer stock scheme will be lower than the sum of the funds needed to finance individual schemes. The establishment of such an integrated scheme, involving 18 commodities, was proposed by UNCTAD in the mid-1970s. The proposed scheme involved both price stabilisation through a buffer stock and price enhancement through production controls. The proposal has attracted considerable criticism, both as evidence of a failure to learn from past experience and as involving commodities for which there are already effective price-raising schemes or for which either production control or buffer stock schemes are infeasible. The funding of the scheme (agreed in 1976) appears to be too small for it to have any significant impact. The UNCTAD’s Integrated Commodities Programme is expected to be comprehensive. As an UNCTAD document puts it: “ Fundamental to the proposed new approach is the setting of for wider objectives for international commodity arrangements, including improvement of marketing systems, diversification (horizontal and vertical), expanded access to markets, measures to counter inflation, in addition to the traditional objectives of stable and remunerative prices.” It is also considered a major sustained and comprehensive attack on commodity problems. However, Integrated programme on commodities could not achieve its objectives due to following reasons: (1) There was no agreement between the developed and the developing countries. (2) There was also not adequate agreement among the developing countries themselves. (3) The world economic scene changed dramatically in the eighties. The developing countries were highly indebted and dependent on developed countries. (4) The enthusiasm about the possibility of entering into a large number of international commodity agreements was unrealistic given the historical experience. Common Fund–Common fund was established in 1985 under integrated commodity programme. Its primary objective is to support buffer stocking operations. Following are its features: (1) Common Fund has been formed by all members of United Nations. (2) Common Fund is the only organisation where the developing countries have a major say in the decision-making system. (3) Its funds can be used to promote research into improving productivity and competitiveness of primary commodities. 0 Reply Share Share Share on Facebook Share on Twitter Share on LinkedIn Share on WhatsApp Leave an answerLeave an answerCancel reply Featured image Select file Browse Answer Anonymously Save my name, email, and website in this browser for the next time I comment.