OIL: Cooperate or Else

Acting in concert, oil-exporting countries have raised petroleum prices 480% since 1970. Reacting individually, oil importers have had no alternative but to pay—and eventually they may be un able to do even that. In a lucid and frightening analysis in the July issue of Foreign Affairs, Oil Economist Walter Levy contends that the importers must choose, in the words of his title, "World Oil Cooperation or International Chaos."

This year, Levy calculates, consuming nations will pay $100 billion to import oil, v. $20 billion in 1972. For poor countries, the oil bill will more than offset all the foreign aid...

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