The latest Treasury Bulletin for Industry contains material on the "Trend in World Trade" which shows clearly how the terms of woild trade are operating against the underdeveloped countries,
"Between 1950 and 1961 the value of world trade doubled end its volume increased by 85%. There have been two slight interruptions to the rise: exports fell by 1% in volume in 1952, and by 2% in 1958, with slightly larger falls in value. The fall in 1952 was confined to food and raw materials, while the 1958 fall was mainly in the volume of manufactured goods. These were only short and shallow hesitations in a strongly persisting upward trend. During this period exports have been rising considerably faster than production — the production of primary commodities rose by two-fifths and of manufactures by about 70%
"In 1952 exports of food and raw materials were about 13% less than exports of manufactured goods at current prices. Since 1952 both have risen in volume at about the same rate. In value terms, however, manufactures have risen much more rapidly, as the price of manufactures has been rising while primary product prices have tended to falls
Export prices (1953 equals 100)
1950 1955 1961 Manufactured goods 86 99 13) Primary products 102 102 ore)
"The growth of the trade of the undS2Sloped areas of the world has recently been much more rapid than that of the under—devdoped areas.
Import (volume) 1958 equals 100
1950 L955 1961 Industrial countries 64 87 133 Other countries Fl 92 i190
Exports (volume) Industrial countries 62 83 127 Other countries : 78 91 Lis
Since 1955 the volume of imports into the industrial ecuntrios has tended to rise faster than the volume of their exports, while the experts of the under-developed areas have been rising faster than their imports. in value terms however, these movements have been offset by changes in the toxems of traco, which have become more favourable to the indurtial countries, less favourable to the Other countries. sscene'!
to be continued in the next issue