ABSTRACT

The failure of the South, or more concretely the Group of 77, to secure demands sunk the talks. The wheat talks, however, may never have been a realistic arena for North-South bargaining. Public grain reserves is an old idea whose time seems to come and go with each major shift in food supplies. Its suitability for trade and fungibility in meeting food needs make wheat politically and economically the most central crop in the world’s food supply. Market stability has been sought by grain producers, exporters, and importers to reduce economic risk. Low or falling grain prices in the twentieth century have triggered considerable interest in international action to prevent a market glut and to provide a fair return to producers. Security against global shortages has rarely been a factor in establishing reserves. The proposal to create a system of international grain reserves, though resisted by developed countries, was never controlled by the South.