INTRODUCTION
The New International Economic Order (NIEO) is a set of proposals put forward by developing countries in the 1970s to address the unequal economic relationship between developed and developing countries. The NIEO called for a restructuring of the global economic system in order to correct the imbalances created by colonialism and neo-colonialism, which had left developing countries with limited control over their own resources and economies.
The NIEO proposals included measures such as the transfer of technology from developed to developing countries, the establishment of a fairer system of international trade, and the creation of a new international economic organization to replace the International Monetary Fund and World Bank.
THE KEY ELEMENTS OF THE NIEO INCLUDED :
- Reform of the international monetary system to stabilise exchange rates and reduce the vulnerability of developing countries to external shocks.
- Expansion of the volume and stability of export earnings from primary commodities.
- Transfer of technology from developed to developing countries on favourable terms.
- Increased financial assistance to developing countries, including both development aid and increased access to credit.
- Establishment of a new international economic system that would give developing countries a greater voice in global economic decision-making and promote their integration into the world economy.
FACTORS RESPONSIBILE FOR DEMAND OF NIEO
The demand for the New International Economic Order (NIEO) was driven by several factors, including:
- GAP BETWEEN RICH AND POOR COUNTRIES : The widening gap between rich and poor countries was a major factor in the demand for the NIEO. Developing countries were frustrated by their inability to close the gap and achieve economic growth and prosperity despite their efforts.
- INTERDEPENDENCE OF DEVELOPING COUNTRIES : Developing countries recognized that their economic fates were interlinked, and that their ability to achieve economic growth and prosperity was dependent on a more equitable and just global economic system.
- NEO-COLONIALISM : Developing countries saw their relationship with developed countries and multinational corporations as one of neo-colonialism, in which they were being exploited and their resources were being extracted for the benefit of developed countries and multinational corporations.
- INCREASING MULTINATIONAL CORPORATIONS : The increasing power and influence of multinational corporations was seen as a major challenge to the economic sovereignty of developing countries and a threat to their ability to achieve economic growth and prosperity.
CONCLUSION
The NIEO was an important moment in the history of international economic relations, as it marked the first time that developing countries had come together to demand a more equitable and just global economic system. Although many of the NIEO's proposals have not been fully implemented, its ideas have had a lasting impact on the development discourse, and have helped to shape the current debates on global economic governance.
Today, the call for a new international economic order remains relevant, as many developing countries continue to face significant challenges in their efforts to achieve sustainable economic development. However, in order to achieve the vision of a fairer and more equitable global economy, it will be necessary for both developed and developing countries to work together and find common solutions to the challenges facing the world today.