The New International Economic Order
In the early 1960's the economic gap separating the first world from the third or other world began to explode. With the industrialized states controlling more than 3/4ths of the global economy the disadvantage facing the third world could easily be seen. Third world countries lacked the start-up capital, the education, and the technology to compete with the first world. In the early 1970's the United Nations began to listen to the cries from these third world states, and set out to develop a strategy at which to combat these problems. This strategy lead to the development of The New International Economic Order (NIEO) or the Group of 77 in 1974. The group consisted of 77 members " which would rectify what they see as the structural, global, economic inequality that operates to the Other World's distinct disadvantage" (Weatherby 90). The NIEO convened at the United Nations and proposed 6 major issues which they felt needed to be agreed upon in order for the third world states to close this economic gap which they faced.
The first of these issues was the idea that each state would be free to determine their own economic and political structure. This has not been the case though with Neocolonialism. On the surface it looks as though these third world countries have control over their economic and political structures because the control exercised over these states is indirect. " This influence is exercised through the interaction of the dominant nation's banking, business, cultural, and military leaders with the Other World's elites" (Weatherby 35). Because of the third world's dependence on dominant powers for economic survival they must in essence follow the desires of the more powerful states or face even greater poverty and economic hardship. The second issue facing the NIEO was the statement that each state was free to control their own natural resources. The issue upset particular rich states which had corporations located in third world states mining these different natural resources. Before this agreement rich states were basically stealing the only profitable items some of these third world states had to offer. With this issue it was stated that if there were any natural resources located in a states border. Than those resources belong to that individual state.
The third issue stated is that the prices of raw materials should be directly related to the prices of manufactured goods. This issue focuses on the continuing rise of inflation in the first world versus the stagnant growth of prices for raw materials produced by the third world. By looking at prices in the present time you can see that this issue was never accepted by all the members. The reasoning is that it would hurt us living in the developed world. As an example, the price of new automobiles has risen dramatically in just the past ten years. But the price of iron ore which is needed to make the steel frames for those automobiles...