The case for an integrated programme for commodities

This article argues that much of the economic criticism of the Integrated Programme for Commodities has been based on outdated and simplistic models and that fears of ‘dirigisme’ and price raising derive from a misunderstanding of the fundamental focus of the IPC on price stabilization. Moreover, the proposed IPC would, it is argued, generate benefits significantly in exces of its costs, which themselves have often been exaggerated. The article concludes by arguing that compensatory finance should be viewed as complementary to, not competitive with, the IPC.