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By Gamani Corea

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Extra resources for Need for Change. Towards the New International Economic Order

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Quite clearly, the energy problem for the developing countries is also one of how to obtain supplies in a situation of scarcity, of how to cushion themselves against the price impact of these supplies, either by assistance or rebates or by access to financial accommodation on a scale commensurate with the size of the problems, and of how they themselves could be helped by the international community to develop their indigenous energy resources in order to provide some assurance against the shortages that seem inevitably in prospect for the future.

So when one talks about solving the energy issue one has to reflect very seriously about the future pattern of supply and demand for energy, bearing in mind the very real scarcity of this non-renewable resource. The stability of capital and money markets arising out of the need of the oil-producing countries for investment outlets is also a matter of concern to the industrialized countries. For the non-oil-producing developing countries the energy problem is partly a problem of how they themselves can sustain their development in the context of rising energy prices, a problem of how they could be helped to develop their own sources of energy, how they could be helped in their own search for alternative sources and substitutes, and how they could be cushioned in some measure against the balance-ofpayments effects of the energy crisis.

My intention is only to offer some introductory remarks which I hope will serve as background material and help the Committee in its task. I shall be making available a somewhat longer note on some of the issues before the special session. Mr. Chairman, even before the recent increase in the price of oil and other commodities the world economy was subject to severe stresses and strains. Already the international monetary system had been shaken, whilst inflation had been growing rapidly from year to year.

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