307. world trade prices were generarly stable ln the 1960s, but there rras a st.eadytendency toward a further deterioration in the terms at which exports of tbedeveloping market economies were exchanged for irnports. This had a negaLive effecton their ability to earn foreign exchange, as dial the greater instability of theprices of thei.r exports as conpared with those of the developed market economies.lihus. white the income terms of trade of the developeal markeL economies rose almost125 per cenl from 1960 to 1970, the corresponding increase in the capacity of thedeveloping countries to ioport was only gO per cent. Finauy, it should be notedthat. although the increase in the value of developing sountry commodity exportsover lhe course of Lhe decade exceeded the corresponding increase in theircommodit.y imports. the ba tance-of-paymen ts accounEE of lhese countries recordedcontinuinq and more than offsetting imbalances oft thei.r net servi.ce trade.A/40 /sLg Engli sh Paqe 147 308. Thus, by 19?0 no significant improvement in lhe relative positlon of the develcipi.ng countries in rrorld trade or in their ba lance-of-payments positlon could be not.ed. Merchandise exports from developlng countries afiPunted to less than 18 per cent of the value of world trade (see annex table 10). Primary commodities remained the maln source of export revenue and accounted for almost 85 per cent of aII export earnings of developing countiies. The 16 per cent of developing country exports that represented trade in manufactured goods (Standard International Trade Classlfication (SITC) categories 5 to I less 67 and 58) accounted for just over 5 per cent of rdor ld trade in manufactures ln that year. The lagglng increase in the export volumes of developing counEries to the rest of the $orld and the deterioration in Lhei.r terms of trade t'ith the developed econooies caused their. external trade to fall as a share of total norld trade fron over 15 per cent in 1960 (and over 20 per cent in 1950) to just over 13 per cent in 1970. More significantly, a further erosion in the closenesg of the trade link a mong developing countries could also be noted in 1970 aa the share of trade rrith other developing countries fell to less than 2l per cent of their total exporlsT or only 4 per cent of total uorld trade. Although a substantial
**Analysis**
The text discusses the trade trends and balance-of-payments position of developing countries in the 1960s and 1970s. It highlights the decline in their terms of trade, the limited increase in their capacity to import, and the erosion of their trade link with other developing countries. This suggests that the text is primarily focused on the economic development and international trade aspects of the topic.

**Category**
International trade, Economic development