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The author found that some evidence exists that trade openness promotes multilateral environmental cooperation, but with limitations. Clearly, self interest is a dominant factor in determining the level of cooperation.

Strong economic development and Third World growth will be based on self-reliance, or the participatory role assume by those countries. This participation will necessitate their sharing in distribution, advantages, and its material rewards as well as contributing to their formation. Autonomy of decision making and notions of resource use are the components of self-reliance. Co-operative dealings among Third World nations must be encouraged. Basic manufacturing and agricultural product exports must be increased. Research points to the enhanced success of development projects where local participation is involved. The foremost determinant of participation on the local level is a desire for autonomy.

An optimal behavior model is developed for the current account, the exchange rate, terms of trade and real interest rates. A reduced form of prices and current account emerges. Net savings decisions lead to an understanding of the current account.

Under uncertainty a transfer is shown to lower the welfare of the recipient and raise the donor's welfare. Production is affected by transfer. The form of transfer payment determines the welfare consequences of the transfer.