New International Economic Order

New International Economic Order in Global Commerce Policy

In this regard, new international economic order is: NIEO. The entries on trade policy are here. A campaign launched in the early 1970s by developing countries to bring about radical changes in the international economic order. The entries on trade policy are here. It was based on a perception that the economic and technological progress since the end of World War II had not enriched the lives of people in developing countries in any meaningful way. Developing countries dependent on commodity exports in particular felt that they were caught by the early 1970s between the so-called revolution of rising expectations and falling commodity prices. The entries on trade policy are here. A perception was also building up that development through concessional, but conditional, loans only increased the debt burden of developing countries and thus put them increasingly at the mercy of developed country policies and actions. Demands for the NIEO gained considerable impetus through the decision by the 1973 OPEC ministerial conference to raise oil prices fourfold. The evident success of this policy in increasing the revenues of OPEC member countries encouraged the view that other commodities would lend themselves to the furthering of developing country aspirations. The OPEC decision was seen by many developing countries as having been taken for the right reasons. These were that on the one hand, Arab countries sought to use oil as a political weapon in the wake of the 1973 war with Israel. The entries on trade policy in the Encyclopedia are here. On the other hand, they had discovered a way to increase their revenues at what seemed to be mainly the expense of developed countries. The entries on trade policy are here. It was against this background that the United Nations NIEO program was adopted in 1974. The entries on trade policy are here. It consisted of a Declaration on the Establishment of a New International Economic Order and a Programme of Action on the Establishment of a New International Economic Order in the form of General Assembly resolutions 3201 (S-VI) and 3202 (S-VI), respectively. The Declaration was concerned particularly with the problems of raw materials and development, noting that since 1970 the world economy had experienced a series of grave crises with severe repercussions on developing countries. The entries on trade policy are here. It stressed the reality of interdependence of all countries and proposed a new international economic order based on the following principles, given here in abbreviated form: (a) sovereign equality of states and self-determination of all peoples, (b) broadest cooperation of all states to banish prevailing disparities and to secure prosperity, (c) full and effective participation on the basis of equality in the solving of world economic problems in the common interest of all countries, (d) the right of every country to adopt the economic and social system it deems the most appropriate for its own development, (e) full and permanent sovereignty of states over their natural resources and all economic activities, including the right to nationalization or transfer of ownership to its nationals, (f) the right of all states under foreign occupation to restitution and full compensation for the exploitation of natural resources, (g) regulation and supervision of the activities of transnational corporations by taking measures in the interest of the national economy, (h) the right of developing countries under colonial domination to achieve their liberation and regain effective control over their natural resources and economic activities, (i) extension of assistance to developing countries under foreign domination or subjected to other coercive measures, (j) just and equitable relationship between the prices of raw materials, primary commodities and manufactures exported by developing countries and their capital goods and other imports with the aim of improving their unsatisfactory terms of trade, (k) active and unconditional assistance to developing countries by the whole international community, (l) a reformed international monetary system assisting the developing countries and ensuring an adequate flow of resources to them, (m) improved competitiveness of natural materials facing competition from synthetic materials, (n) preferential and non-reciprocal treatment for developing countries in all fields of international economic cooperation, (o) securing favourable conditions for the transfer of financial resources to developing countries, (p) access for them to science and technology achievements, promotion of the transfer of technology and the creation of indigenous technology, (q) an end to the waste of natural resources, including food products, (r) developing countries to concentrate all their technical resources for development, (s) strengthened technical cooperation among developing countries as well as through economic, trade and financial activities, and (t) facilitating the role of producer associations in promoting sustained growth in the world economy and accelerated development. The Programme of Action was equally ambitious. The entries on trade policy are here. It sought solutions to the fundamental problems of raw materials and primary commodities as related to trade and development, and the food crisis. The entries on trade policy are here. It also proposed a long list of trade actions, including compensatory financing arrangements, an improved GSP and the setting up of commodity buffer stocks. The entries on trade policy are here. Improvements were sought also in transport and insurance and the international monetary system. Many of these items were pursued in UNCTAD, leading, for example, in 1976 to the proposal for the establishment of a Common Fund for Commodities and the Integrated Programme for Commodities. The entries on trade policy are here. Aspects of the NIEO ran into fierce opposition from developed countries, but some of the major developed-country commodity producers were seduced by the prospect of higher export returns if the commodity measures could be made to work. The entries on trade policy in the Encyclopedia are here. Other international organizations, including the GATT in the concurrent Tokyo Round, also paid greater attention to developing country views, but the NIEO as a program had run its course by the early 1980s. See also Charter of Economic Rights and Duties of States and North-South dialogue.[1]

New International Economic Orderin the wold Encyclopedia

For an introductory overview on international trade policy, see this entry.

Resources

Notes and References

1. Dictionary of Trade Policy, “New International Economic Order” entry (OAS)

See Also