text: developed countries. Nevertheless, if the developed countries rere to share in a,orld-wide expansion, lhe terms of trade wou 1d not only renain stable, they mightwell turn in favour of developing countries. Second; there is no appreciableincrease in che impact of protectionist rneasures, tariff or non-tarifft this rouldbe Possible if all countries, deeeloped and developing, partlcipated in a general expanaion of the world economy. 168. FinaIIy, there are financial implicat.ions of this optinistic scenario. civeha general expansion of world trade and world GDp as envisioned above, thedevelolxnent effort of developing countries nuat be financed by sone conbination ofdcmestic and foreign resources. There is, honever, no guarantee that sufficientresources would be nade availabre fron excess savings of developed countries and OPEC couneries to cover the excess denand for funds on the part of developingcountries. fndeed, the opCinistic acenarlo is a normative calculation forprecisely the reason that no such assunption is made. The rnatn purpose lnanalysing the higher-gronth scenario is to exarnine the feaslbllity of attainment bythe developing countriea of growCh rates as high as the Strategy target of7 per cent assuning that the developed countrLes will share in this expansion, andto €sse€es tbe requlred foreign resources and the rlkelihood of such resourcesbeing rnade ava itable. 2.. Economic performance relative to the basellne scenario 169. Table 28 dlsplays the nain results of the higher-growth scenario in a fornatconparable to table 26 for the baseline scenario. Real growth for the developlngcountries, gradually approacbing the Strategy target of ? per cent, rnight b€ ashigh as 5 per cent for the renainder of che lggos, and over 6 per cent on averagefor the 1990s. The target rate is actually reached by nany developing couneries,not inatantaneously nor eeen by l9g0 but, on average, 60metine ln lhe niddle of tsheTable 28. Prolections of growth rates of GDP' incone and private consumption, and capital-output ratios (Higher-growthA/40 /5L9 English Page 8l levels of per caPlta incremental Projections).a/ Real GDP qrowth rate (Percentage)
analysis: The text discusses the potential benefits of a general expansion of the world economy, focusing on the growth rates of developing countries and the required foreign resources. It examines the feasibility of achieving high growth rates, assuming that developed countries will share in this expansion. The text's main concern is the economic performance of developing countries, particularly their growth rates, capital-output ratios, and required foreign resources.