UN General Assembly
1970

14. The problems hampering economic growth in the developing countries are many and varied. Many of these problems have an external source and cannot be resolved by the domestic policies of these countries. Perhaps the most acute of these problems is in the field of trade. The export trade of developing countries is largely dominated by primary products, the prices of which are very unstable. These fluctuations in export earnings restrict the extent to which developing countries can purchase capital goods and machinery from the developed countries. These fluctuations also adversely affect the capacity of developing countries to meet interest and amortization payments on foreign loans. This in turn prejudices the long term creditworthiness of developing countries which, in turn, again reduces the incentive to the flow of loan funds for development purposes. The steady deterioration in the terms of trade creates a vicious circle which the developing countries cannot break without greater assistance from the developed nations. The practical results of the First United Nations Development Decade have not been particularly encouraging.