The Latin American Free Trade Association (LAFTA), established by the Treaty of Montevideo in 1960, was an attempt by the participating countries to seek a way out of the dilemma of declining demand for their exports, on the one hand, and the inadequacy of a solely inward-looking strategy in...

The North-South dialogue on a New International Economic Order has reached deadlock. To revive it Prof. Sautter is counseling an offensive application of the basic principle of the Social Market Economy to the global economic relations between industrialised and developing countries.

The switch from demand management to “supply-side economics” advocated in some industrial countries is also colouring development policy. The measures perceived to be right for the industrial nations are being urged on the developing countries and they are also to serve as new criteria for...