New International Economic Order (NIEO) | International relations | BA 3rd Year | Principle of NIEO

Summary

This video covers the concept of the New International Economic Order (NIEO), explaining its historical context, emergence, and underlying principles. The NIEO arose after World War II due to the political independence of many Asian, African, and Latin American countries, but their continued economic dependence. The video delves into how major powers, including the US, proposed an economic system, but developing nations demanded a more equitable alternative. Key principles of NIEO include sovereignty over resources, fair trade, and reducing economic inequalities. Despite the establishment of NIEO, developing nations still face economic challenges in the global market.

Takeaways

• 😀 The New International Economic Order (NIEO) emerged as a response to the economic inequality between developing and developed nations after World War II.
• 😀 After World War II, many Asian, African, and American countries gained political independence but struggled with economic dependence, leading to the need for a new economic order.
• 😀 The Bretton Woods Conference in 1944 laid the foundation for the new economic order, with major powers like the USA, UK, France, and China supporting the plan.
• 😀 Developing countries, or 'third world countries', demanded an alternate economic order because they felt excluded from the interests of major powers in the existing system.
• 😀 The primary goal of NIEO was to ensure economic justice, equality, and democracy in international relations between developed and developing nations.
• 😀 Key principles of NIEO include full national sovereignty over natural resources, eliminating price fluctuations for raw materials, and narrowing the price gap between raw materials and manufactured goods.
• 😀 The NIEO advocated for increasing trade preferences with developing countries and promoted industrial exports from these nations.
• 😀 One of the goals of NIEO was to close the technology gap between developing and developed countries to help boost economic development.
• 😀 Despite these principles, developing countries continued to face challenges such as high dependency on imports and limited control over their resource exports.
• 😀 Problems faced by developing countries included a circular economy where profits from resource exports were often funneled back to developed nations to pay off existing debts.
• 😀 Developing nations failed to cooperate with each other, opting for competition instead, which ultimately benefited developed nations more than the developing ones.

Q & A

What is the 'New International Economic Order' (NIEO)?

The New International Economic Order (NIEO) is a concept introduced to address the economic inequalities between developing and developed nations. It aims to establish fairer global economic relations based on justice, equality, and democracy.

What historical event led to the need for the New International Economic Order?

The aftermath of World War II highlighted the economic struggles faced by newly independent Asian, African, and American countries. Despite gaining political independence, these nations remained economically dependent on more powerful nations, prompting the need for a new economic order.

When and where was the plan for the New International Economic Order first proposed?

The plan was first proposed at the Bretton Woods Conference in 1944, where major countries like the USA, UK, France, and China participated.

Why did the Third World countries demand an alternative economic order?

Third World countries, or developing nations, felt that the existing economic order primarily served the interests of developed nations, leaving them out. They demanded a new economic order that would prioritize their interests and foster fairer global trade.

What were the core principles of the New International Economic Order?

The core principles of NIEO included national sovereignty over mineral resources, elimination of price fluctuations for raw materials, narrowing the gap between raw material prices and manufactured goods, extending trade preferences with developed countries, and improving technology transfer between developing and developed countries.

What role did the United Nations play in establishing the New International Economic Order?

The United Nations General Assembly played a crucial role in establishing the NIEO by hosting special sessions, such as the one in 1974, where it formally declared the establishment of the new economic order.

How did developing nations struggle in the global market despite the NIEO?

Developing nations faced multiple challenges, such as exporting mineral resources but receiving little profit due to the need to pay off debts. Additionally, they were still heavily dependent on imports, which limited their economic growth.

What was one of the major problems faced by developing nations when attempting to expand their trade?

A major issue was that developing nations competed with each other instead of collaborating. This lack of cooperation among them worked in favor of developed nations and hindered the development of the Third World.

Why was transportation technology an important challenge for developing nations in global trade?

Developing nations struggled with transportation technology as they couldn't match the advanced capabilities of developed countries, making it difficult for them to efficiently participate in global trade.

What was the impact of debt repayment on developing nations' economies under the existing global economic system?

Many developing nations faced a cycle where the money they earned from exporting raw materials went back to developed nations to pay off their existing debts. This system prevented them from retaining sufficient wealth to foster economic growth.