The paper highlights the necessity of reform of the international monetary system and the consequent importance of financial cooperation amongst developing countries (FCDC). An assessment is made of the role that OPEC plays in transferring liquid assets to some developing countries following the massive build up of surplus capital due to the oil price hike in 1973/74. Fluctuations in oil prices have depleted this surplus to the extent of creating a deficit in OPEC’s external accounts, the major portion of the resources being in the hands of the advances industrial countries (AIC’s). The redeployment of this surplus to the DCs is thus likely to be constrained by OPEC’s vertcallinks with the AIC’s and their own obligations to their areas of local concern. PCDC will have to look for fresh initiatives within the third world to make any significant advances in the days ahead.