New International Economic Order
The New International Economic Order (NIEO) is a set of proposals advocated by developing countries to end economic colonialism and dependency through a new interdependent economy.[1][2] The main NIEO document recognized that the current international economic order "was established at a time when most of the developing countries did not even exist as independent states and which perpetuates inequality."[3] In the spirit of "trade not aid," the NIEO called for changes in trade, industrialization, agricultural production, finance, and transfer of technology.[1] The United Nations General Assembly adopted the Declaration for the Establishment of a New International Economic Order and its accompanying program of action on 1 May 1974.[4]
History
The idea of a new international economic order emerged from the experiences of decolonization after the Second World War. Newly decolonized countries gained political sovereignty but "felt that their de jure political colonization ended only to be replaced by a de facto economic colonization."
Key themes of the NIEO included both sovereign
In 1974, the United Nations General Assembly adopted the "Declaration for the Establishment of a New International Economic Order" along with its accompanying program of action and formalized this sentiment among nation states.[9] A few months later the UN General Assembly adopted the "Charter of Economic Rights and Duties of States".[10] Since then, there have been many meetings to realize the NIEO. In 2018, the United Nations General Assembly adopted the resolution "Towards a New International Economic Order", which reaffirmed "the need to continue working towards a new international economic order based on the principles of equity, sovereign equality, interdependence, common interest, cooperation and solidarity among all States."[11]
Principles and proposed reforms
The main principles of the NIEO are:
- The sovereign equality of all States, with non-interference in their internal affairs, their effective participation in solving world problems and the right to adopt their own economic and social systems;
- Full sovereignty of each State over its natural resources and other economic activities necessary for development, as well as regulation of transnational corporations;
- Just and equitable relationship between the price of raw materials and other goods exported by developing countries, and the prices of raw materials and other goods exported by the developed countries;
- Strengthening of bilateral and multilateral international assistance to promote industrialization in the developing countries through, in particular, the provisioning of sufficient financial resources and opportunities for transfer of appropriate techniques and technologies.[12]
The main reforms required by the NIEO are:
- An overhaul of the rules of international trade, especially those concerning raw materials, food, the system of preferences and reciprocity, commodity agreements, transportation, and insurance.
- A reform of the international monetary system and other financing mechanisms to bring them into line with development needs.
- Both financial and technology transfer incentives and assistance for industrialization projects in developing countries. This industrialization is understood as essential for the diversification of economies, which during colonization focused on a very restricted range of raw materials.
- Promotion of cooperation among the countries of the South, with a view to greater individual and collective autonomy, broader participation and enhanced involvement in international trade.[12] This cooperation is called Economic Cooperation among Development Countries, which replaces colonial dependence with new interrelationships among developing countries based on trade, production, and markets and builds collective self-reliance.
Legacy
The United States government rejected the NIEO almost immediately.
Within the context of the worldwide debt crisis in the 1980s, it was very difficult to realize the NIEO. Unrealized NIEO proposals contributed to the formulation of the
Parts of the NIEO were realized, such as the non-legal, non-binding Restrictive Business Practice Code adopted in 1980 and the Common Fund for Commodities, which came in force in 1989. In addition, in World Trade Organization, Matsushita et al. state, "The realization of the New International Economic Order was an impetus for developing country support for the Tokyo Round of trade negotiations. Critics of the WTO continue to state that little of substance for developing countries came out of either the Tokyo or Uruguay Rounds.[18] The adoption of the 1974 Declaration and the much more recent 2018 resolution "Towards a New International Economic Order" keeps the ideas of the NIEO visible in the policy arena.[11]
In the 21st century, the idea of an NIEO has been endorsed by the Group of Friends in Defense of the Charter of the United Nations.[19]
See also
- Group of 77
- New World Information and Communication Order (New International Information Order, NIIO)
- Non-Aligned Movement
- Trade justice
- Trade Justice Movement
- United Nations Conference on Trade and Development (UNCTAD)
- Washington Consensus
References
- ^ a b c Laszlo, Ervin; Baker, Robert Jr.; Eisenberg, Elliott; Raman, Venkata (1978). The Objectives of the New International Economic Order. New York, NY: Pergamon Press.
- JSTOR j.ctv3znwvg.
- ^ "Declaration on the Establishment of a New International Economic Order". United Nations Digital Library. 1974. Retrieved 17 December 2020.
- ^ "Declaration on the Establishment of a New International Economic Order". United Nations Digital Library. 1974. Retrieved 16 December 2020.
- ^ S2CID 214328899.
- OCLC 769979274.
- ISBN 978-1-4008-6854-4
- ^ Horn, Norbert. "Normative problems of a new international economic order". Journal of World Trade 16.4 (1982): 338-351.
- ^ "Declaration for the Establishment of a New International Economic Order": United Nations General Assembly document A/RES/S-6/3201 of 1 May 1974.
- ^ "Charter of Economic Rights and Duties of States": United Nations General Assembly document A/RES/29/3281 of 12 December 1974.
- ^ a b "Towards a New International Economic Order, 73/240". UN Docs. 16 January 2019. Archived from the original on 25 June 2021. Retrieved 24 December 2020.
- ^ a b Mahiou, Ahmed (1 May 1974). "Introductory Note, Declaration of the Establishment of a New International Economic Order". UN Audiovisual Library of International Law. Retrieved 17 December 2020.
- ISBN 9780143123941.
- ^ Bair, Jennifer (2009). "Taking Aim at the New International Economic Order". The Road from Mont Pelerin: The Making of the Neoliberal Thought Collective: 347–385.
- ^ .
- ^ The New International Economic Order, Harry G. Johnson, professor of economics, Woodward Court Lecture, 5 Oct 1976, pp. 6–7
- ^ The New International Economic Order, Harry G. Johnson, professor of economics, Woodward Court Lecture, 5 Oct 1976, pp. 11–12
- ISBN 0-19-927425-8.
- ^ "Joint inputs for the potential development of a new agenda for peace", Group of Friends in Defence of the Charter of the United Nations, 2022, paragraph 18.
Further reading
- ISBN 9780262021265.
- Charter of Economic Rights and Duties of States. Procedural history, related documents and photos in the Historic Archives of the United Nations Audiovisual Library of International Law
- International Progress Organization (1979) International Meeting of Experts on the New International Economic Order–Philosophical and Socio-cultural Implications
- Kuliabin A. Semine S. Some of aspects of state national economy evolution in the system of the international economic order.- USSR ACADEMY OF SCIENCES FAR EAST DIVISION INSTITUTE FOR ECONOMIC & INTERNATIONAL OCEAN STUDIES Vladivostok, 1991 Некоторые аспекты эволюции национальной экономики государства в. системе международного экономического порядка
- Franczak, Michael. (2022) Global Inequality and American Foreign Policy in the 1970s. Ithaca, NY: Cornell University Press. (Details US foreign policy response to NIEO.) online book review
- Looney, Robert. (1999) ‘New International Economic Order’ in Routledge Encyclopedia of International Political Economy. ISBN 0-415-14532-5
- Murphy, Craig. (1984) Emergence of the NIEO Ideology. Boulder, Colorado: Westview. ISBN 0-86531-664-3
- Pavlič, Breda and Cees J. Hamelink (1985) The New International Economic Order: Links between Economics and Communications. UNESCO. ISBN 92-3-102311-X
- Prashad, Vijay. The Darker Nations: A People's History of the Third World. New York and London: The New Press, 2007.
- Rao, M. P. (2004) The "New International Economic Order"
- Rist, Gilbert: Le développement, Histoire d'une croyance occidentale, Presses de Sciences Po, Paris, 1996. (English version: The History of Development: From Western Origins to Global Faith. London: Zed Books, 2008, Chapter 9).
- Rothstein, Robert L. (1979) Global Bargaining: UNCTAD and the Quest for a New International Economic Order Princeton: Princeton University Press. (Traces formation of UNCTAD and its role in the NIEO.) ISBN 0-691-02190-2
- Ruiz-Diaz, Hugo. (September 2005) Une tribune pour les pays du Sud. Le Monde diplomatique. Pages 20 and 21.
- Sattar, Zaidi. Review of Threat to Development: Pitfalls of the NIEO by William Loehr and John P. Powelson in Journal of Economic Literature 22(1)(March 1984): 130-131.
- Sneyd, Adam. "New International Economic Order". Globalization and Autonomy Online Compendium. Archived from the original on 1 August 2013.
- "Toward a History of the New International Economic Order", special issue of Humanity, 6(1), 2015.