Why is it that on the whole, international stabilization schemes have been only moderately successful in their attempts to stabilize prices of various products such as wheat, rice, sugar and coffee?

International stabilization schemes are agreements between countries aimed at stabilizing the prices of certain commodities on the global market. These schemes are based on international cooperation and require the coordination of various policies such as production and export, market interventions, and buffer stock management. Their main objective is to reduce price volatility and protect the interests of both producers and consumers, ensuring a stable and predictable market.

Commodity prices are influenced by various factors such as changes in supply and demand, weather conditions, global economic conditions, and government policies. Supply can be affected by factors like natural disasters, agricultural policies, and technological advancements. Demand factors can include population growth, income levels, consumer preferences, and dietary changes. These factors can lead to fluctuations in commodity prices, making it difficult for stabilization schemes to maintain stable prices consistently.

International stabilization schemes often face several challenges in their attempts to stabilize commodity prices. These challenges include: 1. Coordination difficulties: Achieving effective coordination among participating countries can be difficult due to differences in their national interests, policies, and economic conditions. 2. Limited market intervention tools: Schemes often rely on tools such as buffer stocks, production controls, and export restrictions, which may not always be effective in stabilizing prices. 3. Incomplete participation: Not all major producers and consumers of a particular commodity may participate in a stabilization scheme, reducing its overall effectiveness. 4. Adverse external factors: Global economic shocks, natural disasters, and other unforeseen events can undermine the effectiveness of stabilization schemes.

Based on the factors outlined above, we can conclude that international stabilization schemes have achieved only moderate success in stabilizing commodity prices due to the following reasons: 1. The complexity of managing the supply and demand factors affecting commodity prices. 2. The difficulties in coordinating policies and actions among participating countries. 3. The limitations of market intervention tools available to these schemes. 4. The impact of external factors and unpredictable events that can disrupt market stability. By understanding these factors, we can better comprehend the reasons behind the moderate success of international stabilization schemes in their attempts to stabilize the prices of various products such as wheat, rice, sugar, and coffee.