The theories of international development attempt to explain how countries can become more economically developed and prosperous. These theories also seek to identify the factors that are important to achieving economic growth and development, as well as address the effects of globalisation on international development. One example of such a theory is the New International Economic Order (NWICO), which was proposed in 1974 by the United Nations Conference on Trade and Development (UNCTAD). The NWICO aimed at improving economic conditions for developing countries, particularly those in Africa and Latin America, through greater economic cooperation among states.
Theories of International Development and the NWICO
The NWICO proposed a number of changes that would help promote international economic integration between rich and poor nations. Firstly, it called for increased aid from wealthy countries to poorer ones, including debt relief measures and foreign investment incentives. Secondly, it sought to increase trade liberalisation between countries by reducing tariffs on imports from developing countries, granting preferential access rights to their exports, providing support for local industry through subsidies or other means of protectionism, and guaranteeing minimum wages within certain industries. It also advocated fairer terms-of-trade agreements between developed counties and less developed economy (LDCs) so that LDCs could obtain a fair price for their exports while maintaining competitive advantages over wealthier nations. Furthermore, it suggested reforms in agricultural production policies so that farmers in poorer nations would receive better prices for their crops while allowing richer nations access to cheap agricultural products.
Finally, the NWICO called for an overhaul of world monetary systems with the aim of creating more stability within exchange rates between different currencies particularly those used by LDCs whose economies were highly dependent on foreign currency flows caused by unequal terms-of-trade arrangements with wealthier nations . The NWICO sought an alternative system based upon fixed but adjustable exchange rate regimes along with a special fund designed to provide liquidity or credit facilities needed during times when balance-of payments deficits occurred due sudden changes in cross border capital flows or currency speculation activities taking place across larger financial markets such as those found within Europe or North America
In conclusion ,the NWICO was an ambitious proposal put forward by UNCTAD which attempted to address some of the major imbalances present within prevailing models if international economic relations at this time . Although many elements have since been incorporated into global governance structures established since then its primary focus remains largely unrealised although still relevant today . As pressure mounts from civil society organisations calling attention towards inequality issues linked with free market neoliberal capitalism figures such as Joseph Stiglitz continue advocating alternatives solutions similar in content albeit not form from what was originally proposed under the umbrella concept offered up via he NWICo