New International Economic Order

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The New International Economic Order (NIEO) was a set of proposals put forward during the 1970s by developing countries through the United Nations Conference on Trade and Development to promote their interests by improving their terms of trade, increasing development assistance, developed-country tariff reductions, and other means. It was meant to be a revision of the international economic system in favour of Third World countries, replacing the Bretton Woods system, which had benefited the leading states that had created it — especially the United States.

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, and referred to a wide range of trade, financial, commodity, and debt-related issues. This followed an agenda for discussions between industrial and developing countries, focusing on restructuring of the world's economy to permit greater participation by and benefits to developing countries (also known as the "North-South Dialogue"). Along with the declaration, a Programme of Action and a Charter of Economic Rights and Duties of States were also adopted.

In the 1970s and 1980s, the developing countries pushed for NIEO and an accompanying set of documents to be adopted by the UN GA. Subsequently, however, these norms became only of rhetorical and political value, except for some partly-viable mechanisms, such as the non-legal, non-binding Restrictive Business Practice Code adopted in 1980 and the Common Fund for Commodities which came in force in 1989.

The main tenets of NIEO were:

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 restrict it.
International trade should be based on the need to ensure stable, equitable, and remunerative prices for raw materials, generalized non-reciprocal and non-discriminatory tariff preferences, as well as transfer of technology to developing countries; and should provide economic and technical assistance without any strings attached.

1 Resource Allocation Mechanisms
2 References
3 See also
4 External links

[edit] Resource Allocation Mechanisms

A number of social mechanisms are possible to effect resource allocation in any economic order. An authoritative allocation mechanism involves direct control of resources while, at the other end of the spectrum, more market-oriented private allocation mechanisms are possible. Most of the debates within the NIEO occurred over allocation mechanisms, with the southern hemisphere countries favoring authoritative solutions. (citation: Haggard and Simmons)

[edit] References

Antonio Cassese (2001) International law. Oxford University Press. ISBN 0-19-829998-2. Page 400.
Hugo Ruiz-Diaz (2005-09) Une tribune pour les pays du Sud. Le Monde diplomatique. Pages 20 and 21.
Stephan Haggard and Beth A. Simmons (1987) Theories of international regimes. International Organization 41:3 pp 498.