This mi<l-term review and appraisal of progress in the implementation of the International Development Strategy for the Second United Nations Development Decade takes place at a time when the intemational economic situation is continuing to change and when events have been following each other so rapidly as to shake the foundations of the existing economic order. In the first half of the Decade there has been a succession of crucial events. The Bretton Woods system broke down in 1971. From January 1973, the prices of food, fue! and fertilizer rose so rapidly that, together with ever-increasing prices of capital goods, equipment and scrvices, the balanceof-payments situation of most dcveloping countries deteriorated. During 1974, most commodity priccs slumped. Existing structura.l imbalances in agricultura! production were aggravated by, intcr alia, a continuation of unfavourable climatic conditions. The situation in developing conntries was further exacerbated by the economic recession in the developed market economies, combined with thc acccleration of the pace of inflation. During the first half of the Decade, an alanning increase occurred in the ¡rnp between developed and developing countries. and thcrc wa, also an irreversible and most promising change in thc relationship of forces of the world. The devcloping countries emerged as a more powerful factor, as a necessary consequence of the new and growing perception of the reality of interdcpcndence. This newly found strength of the developing countries opens up promising avenues for enlarging and reinforcing cc-opcration among thosc countries on the basis of the fraternal solidarity of thcir pcoples in facing the challenge of development, justice and cquity. Particularly important is the joint action of the devcloping countries to safeguard their permanent sovereignty ovcr thcir natural resources and economic activities, and to strengthcn thcir .icgotiating power for obtaining a just and equitablc trcatmcnt for their exports of both primary prcxlucts and manufactured goods. Fmthermore, parts of thc developing world are sti.11 subject to foreign aggression and occupation, apartheid and