DEVELOPMENT PROSPECTS AND IMPORT POLICIES 1

Summary The developing economies when viewed collectively met the targets for growth laid down by the United Nations for the First Development Decade. But this achievement was recorded against a background of very diverse experiences from one developing economy to another. Some of these economies gained as a result of the special advantages stemming from natural resources such as crude oil. Other developing economies were less fortunately placed. The Second Development Decade has been set higher targets. The immediate prospects are not so encouraging because of the recent disturbances in international monetary and economic relations. Moreover, the prospects for expanding the flow of official and private assistance are not good. Thus the earning of foreign exchange to finance certain costs of development schemes will become of increasing importance during the seventies. In this respect there is an important need for the developed market economies to maintain if not expand access to their domestic markets for developing economies. But this will call for domestic policy techniques for adjusting the industrial structure to cushion the impact of import flows. As yet these techniques are embryonic both in Australia and other advanced industrial countries. One possibility would be to combine adjustments in the industrial structure with development assistance to neighbouring economies.