Discuss the relevance of the demand for New International Economic Order (NIEO) in the present era of globlization. (UPSC CSE Mains 2022 - Political Science and International Relations, Paper 2)
- The U.N. General Assembly at its Sixth Special Session in April –May 1974 called for the establishment of new International Economic Order (NIEO) and approved a programme of Action to achieve it. The call for the creation of new international order was an acknowledgement of the fact that the existing international economic order was defective so for as it perpetuated and aggravated international inequalities and that new relationship of inter dependence should replace the older pattern of dependence and unequal exchange. It was argued that the rich developed countries are morally obliged to increase and facilitate the flow of resources to less developed countries and that it was in their self-interest to encourage the promotion of growth and development of the poor countries in so far as they would provide them expanded markets.
- New International Economic Order-NIEO is plan for eliminating the existing international economic system, which with all its characteristics, is catering to the needs and interests of the developed countries to the detriment of the third World developing countries. Its objectives to adopt ‘Code of Conduct’ for developed nations with the purpose to make the international economic system fair, just and equitable. Though the colonialism has come to an end, yet it still exists in its new form by the name of Neo-Colonialism and the newly independent countries are still being exploited by the developed nations, though by different means. The New International Economic Order seeks to end the existing imbalance in economic relations between the underdeveloped and the developed world.
- Though theoretically the NIEO was construed as a failure, it is more prudent to see its impact in todays ‘socio-political movements’ which are being pursued for betterment of future generations to enable them realise their aspirations. It implies that though the specific conceptual aims of the NIEO could not be achieved in totality, the reinforced latest thinking on the lines of erstwhile NIEO remains significant even today.
- The latest avatar of NIEO is visible today in global multilateral negotiations being constantly undertaken with regards to the pressing issues e.g. climate change and international economic cooperation. For example, in respect of climate change negotiations, G-77 is following the line of economic reasoning which reverberates the tenets of erstwhile NIEO. It holds the basic premise that the north has a significant obligation for protection of the atmosphere and the south has a ―right to development. In this scenario, any reasonable climate control treaty would appear to be lopsided, with obligatory responsibilities only for the north. The G-77 also believes that the north should ensure Transfer of Technology (ToT) to south countries. In fact, the NIEO‘s latest image of a universal mandate remains valid in the form of climate change negotiations that have become one of the most significant global concern today.
- The entrenched liberalism and modernization are still deeply embedded in the Western nations. The so called ―Third World ideology offers a dramatic break from the North Atlantic domination of the world economy carrying on since times immemorial.
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