Minister of the Organisation for Economic Cooperation and Development began their annual meeting in Paris on Wednesday (May 29).
Minister of the Organisation for Economic Cooperation and Development began their annual meeting in Paris on Wednesday (May 29). The delegations from 24 member nations met amid perhaps the most disturbing economic backdrop since the Organsiation was set up in 1958. The main items on the agenda concern inflation, now running at an annual rate of some 16 percent in the OECD area.
The inflationary trend has been gradually growing since about a year ago due to unforeseen circumstances. The food shortages which resulted from crop failures in the Soviet Union, Australia, Chian and many parts of South Cast Asia, and their resultant effects on the world economy have been added to the burden of many member nations.
During the opening session, the Vice-President of the European Common Market Commission, Sir Christopher Soames said the Community whole-heatedly endorsed the principle of a draft declaration aimed at avoiding trade restrictions which is expected to be approved during the conference.
The state of the OECD budget is expected to be the main topic of discussion. It's been estimated that the overall deficit for the OECD area in 1974 will be some 40,000 million U.S. dollars (16,500 million sterling) mainly due to higher oil prices.