Composition
It was initially constituted with four members:
- Chile
- Peru
- Zaire
- Zambia
A further four were added to the cartel in 1975
- Australia
- Indonesia
- Papua New Guinea
- Yugoslavia
CIPEC represented around 30% of the world's refined copper, and more than 50% of the proven reserves of copper. The intent of the members to get higher prices failed, particularly of increasing the price during the crisis of 1975-1976, and the subsequent change of behavior of Chile finally finished the cartel.
Many experts consider that the market power of this cartel was negligible, because the residual demand that they faced was elastic (much higher than OPEC, for example). The inability of coordinating output cutbacks during the extensive period of life of CIPEC seems to validate this hypothesis. It was dissolved during the 90`s.
Read more about this topic: Intergovernmental Council Of Copper Exporting Countries
Famous quotes containing the word composition:
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—David Hume (1711–1776)