and facilitation and improvement of distribution. They advocated the use of inter-
national commodity arrangements as a means for promoting stability and orderly
development. It was also recommended that `adequate reserves should be main-
tained to meet all consumption needs' and that `provision should be made, when
applicable, for the orderly disposal of surpluses'. The report of the conference
distinguished three types of `functional disorders' in international commodity
distribution: short-term fluctuations in prices; disorders concomitant of general
cyclical depressions; and disorders that were structural modifications in relations
between existing productive capacity and the need of society for certain commod-
ities or groups of commodities. The conference unanimous agreed that `the world
after the war should follow a bold policy of economic expansion instead of the
timid regime of scarcity which characterized the 1930s'. Different views were
expressed on the nature of international commodity regulations. Some delegates
envisaged future arrangements chiefly for the establishment and operation of
buffer stocks. But it was not possible to reach agreement concerning the part to be
allotted to quantitative regulation for both short-term fluctuations and long-term
disequilibrium. In a resolution summing up the conclusions of the conference,
it was recommended that international commodity arrangements should be so
designed as to promote `the expansion of an orderly world economy'. A `body of
broad principles' should be agreed upon, which should include fair prices for both
consumers and producers.
FAO's constitution was approved by which member nations `being determined to
promote the common welfare' pledged `to work separately and collectively' for
the purposes of FAO, which were defined as
· contributing toward an expanding world economy [and ensuring humanity's
