New International Economic Order

New International Economic Order (NIEO)

an economic and political concept that advocates the need for fundamental changes in the conduct of INTERNATIONAL TRADE and ECONOMIC DEVELOPMENT to redress the economic imbalance between the DEVELOPED COUNTRIES and the DEVELOPING COUNTRIES. The UNITED NATIONS responded to the call of developing countries for such a change by issuing in 1974 a Declaration and Programme of Action on the Establishment of a New Inter-national Economic Order that laid down principles and measures designed to improve the relative position of the developing countries. These initiatives have centred on the promotion of schemes such as:

1. INTERNATIONAL COMMODITY AGREEMENTS to support developing countries’ primary-produce exports;
2. the negotiation of special trade concessions to enable developing countries’ manufactured exports to gain greater access to the markets of the developed countries;
3. the encouragement of a financial and real resource transfer programme of ECONOMIC AID;
4. an increase in economic cooperation between the developing countries.

These aspirations have been pursued primarily through the UNITED NATIONS CONFERENCE ON TRADE AND DEVELOPMENT

but as yet have met with little success. new-issue market see CAPITAL MARKET.

Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005