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Nesterboy [21]
3 years ago
15

Developing countries demanded a new international economic order (NIEO), What purpose did it solve?

History
1 answer:
omeli [17]3 years ago
7 0

Explanation:

- Most of the developing countries did not benefit from the fast economic growth of western countries.

- In order to catch up with the development in advanced industrial countries, the developing nations organized themselves as a group – the Group of 77 or G-77 to demand a New International Economic Order (NIEO).

- By this they aimed to have a system that would give them control over their natural resources, more development assistance, fair prices for raw material and better access for their manufactured goods in the developed countries, market.

- They also stressed on equitable distribution of wealth between developed and developing nations.

- The IMF and World Bank, often referred to as the Bretton Woods twins, were designed to meet the financial needs of industrial countries. These were not equipped to face the challenge of poverty and lack of development in the former colonies.

- On the other hand, the developing countries too needed to help of agencies like IMF and World Bank. So they too reacted to the need of the colonies.

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