Capitalism and World Countries

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REG NO: DS/0043/07


Using examples discuss the view that New International Economic Order (NIEO) is not international and neither is it an order. Submission date:

The New International Economic Order (NIEO) was a set of policy proposals put forward put forward in the 1970s through the United Nations Conference on Trade and Development (UNCTAD). Third world countries were seeking ways of making their terms of trade favorable and maximize its benefits from its involvement in international trade. NIEO aimed at overhauling international political and economic order so as to reduce the adverse effects of third world involvement in international trade. NIEO was simply seeking a reversal of the global trading practices institutionalized by the Bretton Woods system. The term was derived from the declaration for the establishment of a New International Economic Order adopted by the United Nations general assembly in 1974. It happened within the framework of North-South dialogue. It is very important from the onset to really excruciate what the New International Economic Order really is and its ramifications especially to the third world in the current global economic order. Primarily NIEO connotes policy directives adopted by the G-77 with a view of stemming out the west’s hegemonic influence in the global economic pecking order. The inspiration behind the NIEO can be traced to the came with the Bandung plan where optimism from the newly independent countries of Asia, Africa and Latin America were looking for ways of reforming the global trading and political system. The main aim was to find a framework within which the third world would find the solutions to their problems of underdevelopment within the ideologue of interdependence imposed by the world economy. The crux of this essay is to make an inference whether economic parity between the west and third world countries is possible in the global capitalist system. The begging question has always been whether the world would move towards a more poly-centric economic balance of power or whether it would be locked indefinitely in the cocoon of mono-centrism, with USA as the axis of the western capitalist camp in their bid to maintain the status quo as pertains to the global balance of power and continually fleece of the third world off valuable resources often with inadequate financial remuneration. But as the third world were as passionate as ever about coming up with a new world order the west coalesced behind the so called Washington consensus and met the pro-third world movement with equal passion and desire to maintain the status quo. NIEO was an order that aimed at achieving the following;

Ensure that third world countries were able to benefit from extraction of third world resources. •Ensure that there was adequate capital flow from the centre to the periphery coupled with infusion of efficient and cost effective technologies in the third world countries. •Rally for a reform of the global order and correct the mistakes arising from the Bretton woods order and institutions. •Ensure that the third world got fairer terms of trade in the global trading system, together with reasonable value for exports to the periphery. •Enhance the strength of regional organizations within the third world like the EAC, COMESA and others in Asia and Latin America, this was aimed at increasing the volume of trade within the third world and improve general economic and technology transfer engagements within the third world. And also enhance the third world’s right to set up regional marketing and producer organizations. •NIEO also aimed at controlling the activities of Multi National Corporations, their activities and their roles as agents of...
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