The buffer stock-price compensation scheme with special reference to natural rubber

Abstract

One major characteristic of developing countries is their high degree of concentration in the production of a few primary commodities which are exported to a few developed countries. This makes them vulnerable to the vagaries of interna- tional trade in such primary products. Because of the vital role of the export sector in the structure of developing economies, unfavourable changes in trade in primary products have serious repercussions on their social and economic development. Develop- ment disrupted by trade instability has political implications which are usually "unhealthy".