Poor countries are rarely net-gainers in international trade. This, Therefore, calls for an urgent need for export credit institutions and compensatory schemes and programmes for the losers in the current unequal exchange in international trade. Developing countries may gain mainly as a result of differences in income elasticity of demand of the commodities produced by different groups. It could be for the same reason that international commodity agreements endeavour to minimise fluctuations of income earners on the side of LDCs. That compensatory scheme should take into consideration the previous year's earning