Efforts to stabilize international markets in commodities have gradually intensified during the course of this century in keeping with the grow- ing complexity and interdependence of the world economy and the increasing involvement of government in economic activity. Successive Australian Governments have con- sistently supported the concept of commodity agreements and arrangements in an effort to lessen short term fluctuations in price and to moderate the boom/bust conditions which tend to charac- terize production and trade in many commodities._x000D_
The objective is to stabilize price at a level which equates supply and demand over the life of the arrangement. Such action involves a degree of market inter- vention and government involvement in the inter- national trade in the commodity concerned; the acceptability and desire to foster such arrange- ments varies from country to country depending upon attitudes to market intervention and man- agement. However attitudes, even among those opposing commodity agreements, have under- gone a major reversal in this century. Before the first world war, such intervention as existed almost entirely involved the physical producers._x000D_
There was almost no government involvement and at that level most regarded commodity agree- ments as neither desirable nor practical. However government regulation of such activities as pro- duction and marketing of food during World War I, coupled with post-war shortages, followed by overproduction and the crash in prices during the Great Depression, stimulated producer gov- ernment interest in commodity market regulation._x000D_
Consumer governments took a little longer and with a few exceptions, it was not until the post World War II period, that the fear of shortages of basic commodities brought some consumer countries to accept the concept.