Explain the significance and importance of the demand raised by the developing countries for a New International Economic Order (NIEO). Are they likely to achieve their objectives of NIEO in foreseeable future?. (UPSC CSE Mains 2020 - Political Science and International Relations, Paper 2
The demand for a New International Economic Order by the developing countries goes back to the first session of the UNCTAD in 1964 when the call for NIEO was based on the realisation that most of the countries were not even independent when the current economic order came into play. Its fundamental objective was to transform the governance of the global economy to redirect more of the benefits of transnational integration toward “the developing nations”—thus completing the geopolitical process of decolonization and creating a democratic global order of truly sovereign states.
The NIEO called for the management of volatile commodity markets, preferential trade access to rich country markets, greater stability in exchange rates, monitoring of trans-border capital flows, greater aid to the least developed, favourable debt rescheduling, and regulation of multinational corporations to ensure that they comply with national laws and foster technology transfers.
The NIEO today is almost entirely forgotten. Their demands were backed by the fragile solidarity of the third world. The international laws were always in the favour of the developed nations and the north could always use its great economic, political and military might to restrain the south.
However, today the picture has changed. The developing countries have higher capacity and many institutions have been established exclusively by them like BRICS, RCEP, and SCO. They are assertive with their demands and are visible in various fora. e.g., the Doha round of talks, Kyoto Protocol etc. Hence, it appears possible to gradually achieve a New and Equal international economic system.
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