ABSTRACT
Starting from maximal positions, the African, Caribbean, and Pacific (ACP) states in the negotiations demanded that a guarantee of the purchasing power of their major export products should form part of the stabilization system for their export earnings. An evaluation of the Lome export-earnings stabilization system must lead to the conclusion that the concept of an equalization fund to offset fluctuations in the export earnings of developing countries can serve as a model for future improvements of development-aid policies. The convention allows an expansion of product coverage by a decision of the highest organ of the convention, the Council of Ministers. The financial resources for the STABEX mechanism have been limited to 375 million units of account for the duration of the convention, divided into five annual tranches of 75 million units of account. The special arrangement made for the 34 less-developed ACP states and the tendencies indicated make it unlikely that repayments would be forthcoming.
