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that the basis of exchange is equitable. For many developing countries. neither condition is met.
76. Growth in many developing countries is being stifled by depressed commodity prices, protectionism. intolerable debt burdens, and declining flows of development finance. If living standards are to grow so as to alleviate poverty, these trends must be reversed.
77. A particular responsibility falls to the World Bank and the International Development Association as the main conduit for multilateral finance to developing countries. In the context of consistently increased financial flows, the World Bank can support environmentally sound projects and policies. In financing structural adjustment, the International Monetary Fund should support wider and longer term development objectives than at present: growth, social goals, and environmental impacts.
78. The present level of debt service of many countries, especially in Africa and Latin America. is not consistent with sustainable development. Debtors are being required to use trade surpluses to service debts, and are drawing heavily on hen-renewable resources to do so. Urgent action alleviate debt burdens in ways that represent a fairer sharing between both debtors and lenders of the responsibilities and burdens.
79. Current arrangements for commodities could be significantly improved: more compensatory financing to offset economic shocks would encourage producers to take a long-term view, and not to overproduce commodities: and more assistance could be given from diversification programmes. Commodity-specific arrangements can build on the model of the International Tropical Timber Agreement, one of the few that specifically includes ecological concerns.
80. Multinational companies can play an important role in sustainable development, especially as developing countries come to rely more on foreign equity capital. But if these companies are to have a positive influence on development, the negotiating capacity of developing countries strengthened so hey can secure terms which respect their environmental concerns.
81. However. these specific measures must be located in a wider context of effective cooperation to produce an international economic system geared to growth and the elimination of world poverty. (See Chapter 3 for a more detailed discussion of issues and recommendations on the international economy.)
2. Managing the commons
82. Traditional forms of national sovereignty raise particular problems in managing the 'global commons' and help shared – ecosystems the oceans, outer space, and Antarctica. Some progress has been made in all three areas: much remains to be done.
