ABSTRACT
In seeking to improve North-South relations, it is unfortunate that the developing countries have chosen a set of ill-designed measures to translate worthy objectives into reality. The one-way dependence of the South on the North has become a two-way interdependence. Some of the demand created in the North is from arms sales. If self-reliance raises incomes and purchasing power, it will give rise to new common interests between South and North. Investment by the North in the South in order to overcome the global scarcities can make a contribution to the resumption of long-term orderly growth without inflation. Reduced dualism and a more poverty-oriented approach will tend to create greater intra-Third World trade opportunities. Monetary cooperation can encourage trade expansion, and growing trade, e.g., through Third World preferences, can be financed by intra-Third World financial cooperation. The quantities are too small for the Third World to be an "engine of growth" for the industrialized countries.
