Dependence to (Inter) Dependence: Review of Debate on the (New) International Economic Order

Abstract

The Bretton Woods compact that regulated the post-World War II world economic system till 1973 is dead, while a new one to take its place is yet to take shape. The controversy sparked off by the Third World demand for a new international economic order (NIEO) may be seen as a debate on what should replace Bretton Woods. This essay attempts to disentangle the assumptions, questions, and expectations pertaining to NIEO, especially in relation to the subject of dependence and interdependence. It analyses the affiliations and ideologies, concerns and interests of the advocates of both and evaluates the present stage of NIEO debate. In the end it examines the possibility of a North-South convergence around the nexus of self-reliance (mainly on the part of the South) and self-restraint (mainly on the part of the North) in a sustained effort to prepare for a planned transition, away from Bretton Woods and towards a more equitable and integrated system.