The deterioration in financial flows to developing countries has caused international trade to become these countries• most important potential source of external resources. But the terms of trade for the non-fuel primary commodities upan which many developing countries rely have fallen to record lows. Even though there has been a rapid growth of trade in South and East Asian countries, including China, trade has been less buoyant in the highly indebted countries, particularly those in sub-Saharan Africa. Despite the overall expansion of world trade, protectionism flourished in the 1980s, especially in the developed world. It is disheartening that the growth of protection has been aimed at the most competitive exports, mostly from the developed world. In this regard, mention may be made of products such as textiles, clothing, footwear, leather goods, steel, shipbuilding and automobiles. Developing countries have therefore been penalized for their entry into manufactures, the most dynamic sector of the world economy. The increase in protectionism has clearly led to erosion of the rules of the General Agreement on Tariffs and Trade (GATT). In this regard, the world has witnessed small groups of nations striking special deals between themselves -for instance, the 1988 United States-Canada free trade agreement and the European Economic Community's plan to integrate fully by 1992: the most prominent examples of regional blocs. Indeed, arrangements such as these might have positive BCT/dl A/S-18/PV. 4 145 (Mr. Thoahlane, Lesotho) elements. However, the trend towards bilateral and regional blocs is worrisome in so far as they discriminate against other trading partners and are antithetical to multilateralism. BHS/dl A/S-18/PV. 4 146 (Mr. Thoahlane, Lesotho) It is a well-known fact that people are both the ends and the means of development. In other words, without people there would be no development and 
**Analysis**
The text discusses the challenges faced by developing countries in terms of international trade, protectionism, and the impact on their economic development. It highlights the decline in terms of trade for non-fuel primary commodities, the growth of regional blocs, and the erosion of multilateral trade rules. The text also touches on the importance of people as both the means and ends of development.

**Category**
International trade, Economic development