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IMF History (1966-1971) Volume 2
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Report of the Executive Directors (June 27, 1969)

Author(s):
International Monetary Fund
Published Date:
February 1996
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At its Twenty-Second Annual Meeting in Rio de Janeiro, the Board of Governors adopted the following Resolution:

Resolution No. 22-9 Stabilization of Prices of Primary Products

Whereas Governors of the Fund and the Bank for Cameroon, Central African Republic, Congo (Brazzaville), Ivory Coast, Dahomey, France, Gabon, Upper Volta, Madagascar, Mali, Mauritania, Niger, Senegal, Chad and Togo have transmitted to the Managing Director of the International Monetary Fund the following request:

Considering the decisive importance of the stabilization of prices of primary products at a remunerative level for the economic advancement of the developing countries and the improvement of the standard of living of their populations, the Governors meeting in Dakar request that in Rio study be made of the conditions in which imf, ibrd, and ida could participate in the elaboration of suitable mechanisms involving balanced commitments on the part both of the producing and of the consuming countries, and devote the necessary resources thereto.

And whereas the Board of Governors recognizes the importance of this subject in relation to the purposes of the Fund,

Now therefore the Board of Governors resolves that the Managing Director is hereby invited to have the staff, in consultation with the Bank staff, prepare a study of the problem, its possible solutions, and their economic feasibility, in the light of the foregoing, to be submitted to the Executive Directors who are requested to transmit it with such comments or recommendations as they may have to the Board of Governors for consideration and appropriate decision by the Board, if possible at its next Annual Meeting.

In response to this Resolution the staff prepared jointly with the staff of the Bank a general and analytical section of the study (Part I), which, at the request of the Executive Directors, the Managing Director of the Fund, on September 12, 1968, transmitted to the Board of Governors.

At the 1968 Annual Meeting in Washington, D.C., the Board of Governors adopted the following Resolution:

Resolution No. 23-13 Stabilization of Prices of Primary Products

Resolved:

that the Board of Governors

  • (a) Note the section of the study already prepared on the problem of the stabilization of prices of primary products;

  • (b) Invite the Managing Director to have the staff complete as soon as possible the work already initiated, particularly by completing a section which considers specific financial measures and other ways in which the Fund might assist in finding feasible solutions to the problem; and

  • (c) Request the Executive Directors to transmit to the Board of Governors the section of the study referred to in (b) above not later than June 30, 1969, together with such comments or recommendations as they may have on the entire study and a report on any actions regarding it which they may have taken.

In accordance with this Resolution, the staff of the Fund continued its work toward the completion of its study, with particular reference to an examination of possible courses of action by the Fund, and has prepared Part II of the study, entitled “Scope for Action by the Fund.” This Part II of the study is transmitted herewith to the Board of Governors in response to the above Resolution.

The Executive Directors have considered this study, which includes an examination of ways in which the Fund might assist members in finding feasible solutions to the problem of stabilization of prices of primary products, and wish to express their appreciation for the staff’s work. As a result of their deliberations, the Executive Directors find themselves in general agreement with the approach to Fund policy set out in Part II of the study.

The Executive Directors have adopted on June 25, 1969, a decision which is attached to this Report.

Having regard to the importance of stabilization of prices of primary products for members of the Fund, the Executive Directors intend to pay continuing attention to all relevant aspects of the subject, and to review the decision in the light of experience and developing circumstances. In its work in the commodity field, the Fund will, where appropriate, consult closely with the World Bank Group and maintain contact with other international organizations active in this field.

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