CFC asked to allocate more on research<\/p>\n
JAKARTA (JP): The Common Fund for Commodities (CFC) should
\nallocate more to commodity research and development if it is to
\nhelp developing countries, seminar members concluded yesterday.<\/p>\n
\"The CFC still has a future if it focuses its program on
\nfinancing the research and development of commodities,\" Budi
\nHartantyo, a former CFC managing director, told the seminar
\norganized by the Center for Strategic and International Studies
\n(CSIS).<\/p>\n
The seminar, moderated by CSIS director Hadi Soesastro, was
\nalso attended by senior economists Mari Pangestu and Pande Radja
\nSilalahi.<\/p>\n
Many officials and analysts, especially those in developed
\ncountries, doubt the future of the CFC, which is bogged down by
\nthe sharply differing views of developing and developed
\ncountries, said Budi.<\/p>\n
\"Several developed countries, such as the United States,
\nCanada and New Zealand, resigned right after the financial
\ninstitution started operations,\" he said.<\/p>\n
He said that the developed countries became CFC members for
\npolitical reasons. \"They don't see it as necessary for their
\neconomic interests.\"<\/p>\n
Budi pointed out that the CFC was set up in 1980 but that it
\nonly became active in September 1989 due to a ratification delay
\nby member countries. The 102-member CFC, which is based in
\nRotterdam, the Netherlands, receives its funding from member
\ncountries.<\/p>\n
Set up as a financial institution for commodities, the CFC has
\ntwo programs: Funding the buffer stock system for stabilizing
\ncommodity prices and financing commodity research and development
\nprojects.<\/p>\n
The formation of the CFC, he said, was the only concrete
\noutcome of the so-called North and South dialog that took place
\nbetween developed and developing countries in the 1970s.<\/p>\n
Mari Pangestu said that the buffer stock system has no future
\nbecause it is regarded as an intervening force. \"The developed
\ncountries do not agree with the kind of intervention which goes
\nagainst the market economy,\" she said.<\/p>\n
She added, however, that the CFC might survive if it focuses
\non research and development projects that are mutually
\nbeneficial. Then the developed countries will be willing to
\nparticipate, she said.<\/p>\n
According to Budi, the CFC has never been effective in
\nstabilizing commodity prices. However, he said, its studies on
\nthe processing of jute and rubber were successful.<\/p>\n
\"The technology for jute processing has been applied in China,
\nwhile the technology for processing rubber is regarded as
\nenvironmentally friendly,\" he said. (13)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/cfc-asked-to-allocate-more-on-research-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}