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:
“The naive notion that a mother naturally acquires the complex skills of childrearing simply because she has given birth now seems as absurd to me as enrolling in a nine-month class in composition and imagining that at the end of the course you are now prepared to begin writing War and Peace.”
—Mary Kay Blakely (20th century)
“Since body and soul are radically different from one another and belong to different worlds, the destruction of the body cannot mean the destruction of the soul, any more than a musical composition can be destroyed when the instrument is destroyed.”
—Oscar Cullman. Immortality of the Soul or Resurrection of the Dead? The Witness of the New Testament, ch. 1, Epworth Press (1958)
“If I don’t write to empty my mind, I go mad. As to that regular, uninterrupted love of writing ... I do not understand it. I feel it as a torture, which I must get rid of, but never as a pleasure. On the contrary, I think composition a great pain.”
—George Gordon Noel Byron (1788–1824)