ABSTRACT
This chapter examines the function of international commodity agreements and futures markets from the viewpoint of international political economy. It aims to consider the raison detre and devices of international commodity agreements, and the adequate position of futures markets within a conceptual framework. The chapter describes international regime theory. It looks at the correspondence with sociological and anthropological types. The chapter also examines the correspondence with schemes of international commodity agreement. The international commodity agreement would be used as a device for government to mobilize resources for mitigating uncertainty. The schemes of international commodity agreement which correspond to First quadrant might be a mechanism for introducing a function of futures markets and for mitigating uncertainty through searching efficiency. In order to develop the commodity futures markets, the main policy should be not government intervention but for better works of the market mechanism.
