The supply of international liquidity to developing countries

Abstract

The gravamen of the comments by the developing countries on the problem of the supply of international liquidity is that since 1970 they have been at a great disadvantage as far as the distribution of the newly created international liquidity is concerned. At the annual IMF meeting in Manila in early October 1976 they therefore put forth a demand for a fresh allocation of SDRs¹. The question that has to be asked in this connection is whether the developing countries are justified in their criticism concerning the supply of liquidity and whether another SDR allocation is needed in order to solve their liquidity problems if any exist.