9 - Objectives of the New International Economic Order

Abstract

This chapter discusses the objectives of the New International Economic Order (NIEO). Awareness of the mutuality of interests in the interdependent world economy is rising in the developed market economy countries, and the principle of cooperation between countries having different social and economic systems is affirmed with fresh vigor in the centrally planned economies. The implementation of the full set of NIEO objectives would go a long way toward redressing structural imbalances in the world economy, thereby liberating the countries where two-thirds of the human population now suffers from structural dependence on foreign economic forces. The chapter also discusses international trade issue. A fundamental need for many developing countries is to earn the foreign exchange required to pay for imports and service foreign loans. Their capacity to earn foreign exchange is highly dependent on their ability to gain access to world markets. Imports from participating countries should be exempt from automatic licensing requirements, statistical licensing requirements, and invoices or other commercial documents for statistical purposes. The main features of the integrated program should include indexing of basic commodity prices, guidelines for a new policy on international commodity agreements, financing of buffer stocks at the national and international levels, and compensatory financing.