Abstract

Pogge's proposal of a,global resource dividend' (GRD) is intendend to compensate the poor, commodity-exporting countries of the developing world for terms of trade losses and unequal exchange in trade with the industrialized North. It can be shown that it is unlikely that Pogge’s GRD will be successful. On the one side, increased financial flows from the GRD funds may seriously inhibit the structural transformaton of an underdeveloped economy, whereas on the other side the internal distribution problem associated with GRD payments is not resolved.