Primary Commodities: Importance, Problems and Measures

This paper talks about the importance of primary commodities for developing and underdeveloped nations basing on the theoretical model of Raul Prebisch and Singer. They have discussed in detail about the problems- long term and short term which these countries face while basing their economy on the export of primary commodities. For supply and demand of primary commodities these countries have to depend-upon the developed nations which not only regulate their price but market also. These problems can be tackled by takingsteps such as diversification into stable products and creating buffer stocks etc.