Some thoughts on the restructuring of North-South interaction

The theory of international trade presents trade as a positive-sum game for all participants. Yet, most of the negotiations between the developed and the developing countries seem to have been conducted under a perception of reality that views North-South relations as a zero-sum game. The purpose of this paper is to suggest a general framework for institutional and structural changes to benefit all participants. A number of original proposals for international reforms to support equitable development in developing countries are presented. The major element of the proposals include a Land Reform Fund, a rural and industrial development package for LDCs, support for trade liberalization of impacts from land reform countries, and an industrial Assistance Fund to help industrial countries to restructure production pattern.The proposals contain obviously far reaching national and international political implications whose impact is assessed in the concluding part of the paper. There the claim is made that unless both sets of countries find cooperation mutually attractive, they will be unable to embark in development strategies characterized by the highest chance of success and with the fewest economic and social disruptions.