ABSTRACT
Prior to 1974, a number of low income developing countries were already experiencing economic difficulties due to the effects of bad weather, poor domestic policy conception or execution, and external economic set-back. The international community was not insensitive to the needs of these countries; major aid and relief programs were mobilized, particularly for those affected by natural disasters. In 1972–73, the prices of primary product exports and the levels of primary product and manufactured exports of the developing countries were rising rapidly. The increase in the price of oil and of other imports has affected the developing countries in several ways beyond the direct addition to their import bill. The short-run reactions of the non-oil developing countries were quite varied. For the middle income countries, the period leading up to 1974 had been one of increasing growth and prosperity.
