RELEVANCE IN IR
• The important aspects of the free markets
principles were being modified and partially
• The NIEO program is generally for developing
countries and the world knows the potential
of these countries.
• The NIEO is very important in establishing
good economic international relations
between developed and developing countries.
• Economy always affects the IR of any country.
• Dismal picture of the international economic
structure had created a discontent among the
• Many developing countries were frustrated
with their growth prospects and started
demanding a better deal.
• Developed countries want better financial
possibilities to develop their economies.
• As the world remains divided between North
and South in the context of economic
prosperity and poverty , the need for seeking
economic justice will remain relevant.
• NIEO is based on the assumption that the
prevalent international order perpetuates and
aggravates international inequalities.
• Rallying in different organisations such as
NAM, GATT & ,they UNCTAD, argued for fairer
terms of trade and more liberal terms for
• The success of OPEC, after 1973 crises acts as
a catalyst to pull together developing
countries in support of a call for NIEO in which
their interests would be better represented.
• The origins of the NIEO can be traced back to
the Havana Conference in 1948 and from
economic and political tensions that had been
building between the developing and
• Specific proposals for changes in the economic
systems were advanced at the summit of NAM
in Sept. 1973.
• On May 1, 1974, the sixth special session of
the UN General Assembly adopted a
“Declaration on the Establishment of a New
International Economic Order”.
• In Dec. 1974, the GA approved the charter of
Economic rights and duties of states.
• In another resolution, the general assembly
adopted at the same session a programme for
establishment of an NIEO.
• The NIEO is an 18 clause document that seeks
certain changes in the international systems.
• The Charter of Economic Rights and
Duties, was adopted by the UNGA in its 29th
session in 1974.
WHAT IS NIEO?
• NIEO constitutes a framework for eliminating
the existing era of international economic
systems, with all its features and interests of
the developed countries to the detriment of
the third world.
• It seeks to end the imbalances inequalities in
the economic relations between the
underdeveloped and the developed worlds.
• Seeks to end the monopolistic controls of the
developed countries over international trade
after world war.
NEED FOR NIEO
• Due to the sharp and big changes in the
international system of the post war pd.
• Weakened position of Europe , emergence of
two super powers, emergence of cold war,
rise of strong anti imperialist and anti
• The rise of new consciousness among the
newly emerged countries of Asia, Africa &
Latin America, the examples of economic
recovery secured by European countries.
GENESIS OF THE NIEO
• Substantial imbalance in the distribution of
international monetary reserves.
• Rich nations benefit disproportionality in the
distribution of the value added to the products
traded between themselves and the poor nation.
• In order to protect and perpetuate profits and
jobs in uncompetitive and declining sectors,
nations resort to tariff protection of insufficient
domestic industries while restricting immigration
to maintain high wages.
• Unfairly benefits to MNCs.
DEMAND OF NIEO
Restructuring of the existing economic order.
Total recasting of the Bretten woods system.
Increased and definite share in world trade.
Grant of international developmental aid.
Due share in international decision making.
Writing off old – debts.
FACTORS INFUENCE DEMAND FOR
• The big North- South gap.
• Ever widening gap between north and south.
• Increased global interdependence but low role
of the south.
• Excessive exploitation of world income and
resources by the developed countries.
• Failure of the Bretten Woods.
• Neo colonial role of the north over south.
GOALS OF NIEO
• Lay emphasis on the distribution of world
economic resources among the rich as well as
• Mini income target.
• Common interests.
• Developing countries must be entitled to regulate and
control the activities of multinational corporations
operating within their territory.
• They must be free to nationalize or expropriate foreign
property on conditions favourable to them.
• They must be free to set up associations of primary
commodities producers similar to the OPEC; all other
States must recognize this right and refrain from taking
economic, military, or political measures calculated to
• International trade should be based on the need to
ensure stable, equitable, and remunerative prices for
raw materials, generalized non-reciprocal and nondiscriminatory tariff preferences, as well as transfer of
technology to developing countries; and should
provide economic and technical assistance without any
• LDCs alleged that failure to realize the NIEO is
due to lack of commitment and lack of their
• No structural changes observed in the
international economic scenario after five
years of adoption of NIEO.
• Refusal by developed countries to implement
the NIEO resolutions.
• Due to lack of South’s power in world politics
and the disparities created divergent interests
among members state.
• A New International Economic Order is the only alt.
that can go a long way in securing an equitable
partnership between the rich and poor nations.
• It can bring prosperity to poor nations and will
create harmony between developed and developing
• NIEO would also bring a new market for the products
of developed countries.
• Demand for greater power for these international
bureaucrats, disguised as a demand for more justice
for the ordinary people of the developing countries.
• International relations: Peu Ghosh
• An Introduction to International Relations: Gulam
• The New International Economic Order: Past
Failures and Future Prospect- Miguel Wionczek
• New International Economic Order: Robert
• Rationale and Relevance of the NIEO : Hiroshi
• The New International Economic Order: HARRY G.