In 1986, developing countries (often referred to as the South) accounted for 15% of the total usage of ozone-depleting substances. By 1991, this figure had risen to 21%. China alone increased its usage 20% per year in the 1980s.
The Montreal Protocol allowed developed countries (referred to as the North) to export CFCs and other substances to the South, but denied the South permission to produce CFCs for export. Replacing old CFC technology would have been at considerable expense for developing countries. Their focus had to be on providing basic needs for their citizens, who rely on refrigeration and agriculture, which make use of the banned substances. Since the cost of CFC imports and replacement of old technology was high, these countries would have suffered a severe financial strain if CFCs were immediately banned.
As a result, the South was given a 10-year grace period for eliminating the use of all banned substances. The expense, however, will still be high. Northern manufacturers were concerned about freely transferring new technology to the South, because of the subsequent loss of profits and investment. The attitude of the South, however, was that since the North was responsible for the problem, it should pay to fix it. To resolve the conflict the Montreal Protocol established a Multilateral Fund as a vehicle for the Northern countries to help developing countries with the transition to the new technology. However, the developed countries were to determine the means of technology transfer and the amount of money to be spent.
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