text: provided that it is confi.ned to trade in goods only and priority is given to implementing the Declaration of the 1982 GATT Ministerial Meeting. 97. Developing countries have noted with concern that the prices of primary commodities have remained far below their 1980 levels in spite of the recovery in industrial countries. civen the importance of commodities in the total export earnings of many developing countries, the continuinq weakness of these prices has serious implications for the economies of these countries, includinq their capacity to repay lheir external debt. In this context, the developing countries stress lhe need for bringing the Common Fund for Commodities into operation and call for urgent ratification of the Agreenent for its establishment. 1Monelarv i. ssues 98. Developing countries have catled attention to a number of major aspects of the international rnonetary system in which reform and improveoents are urgently needed as a concomitant to measures in lhe fields of trade, debt and resource flows for development. These aspects concern the exchange rate r6gime, international liquidity and SDR allocations, the process of ba la nce-of-pa yments adjustments, IMF surveillance, IMF conditionality and the adequacy of IMF resources. 99. with regard to the exchange rate r6gime, most countries noted that, while i.t was generally expected that the systen of floating rates uould lead to an increase in the variability of nominal" and real exchange rates, it was not expected lhat these tould be as volatiLe as they had been. Moreover, inter es E-r espons ive and speculative capital flo!,rs and a Lack of co-ordination of economic policies amonq the major industrial countries have caused exchange rates to b€come and to remain for some tine, out of line with the requirements of basic balance in inlernaEionalA/40/708 Eng li sh Page 24
analysis: The text discusses the economic issues faced by developing countries, specifically the impact of low commodity prices on their economies and the need for reforms in the international monetary system. The text also touches on the importance of trade and the need for the Common Fund for Commodities to be brought into operation.