Stabilizing export income

Reducing instability of export earnings

Description

Stabilizing export income involves implementing mechanisms to reduce fluctuations in revenue from international trade, particularly for countries dependent on a narrow range of exports. Essential actions include establishing buffer stock schemes, export insurance, price stabilization funds, and diversification of export products and markets. These measures aim to protect economies from volatile global prices, ensure predictable government revenues, and support sustainable development by mitigating the adverse effects of sudden income drops on national budgets and social programs.