ABSTRACT
The principal problem underlying the demand for a New International Economic Order (NIEO) is how to make the poor of the world richer. The NIEO is a very legitimate expression of demand and an extremely imperfect expression of supply. Income involves additions to and subtractions from the stock of economic goods per unit of time, that is, production and consumption. The mechanism proposed for improving the terms of trade is cartelization, that is, an attempt to change the relative price structure in favor of the exports of the poor countries by the exercise of monopoly power. If the cartel is successful in raising the price of a particular product, the subsequent increase in production, particularly outside the cartel, will eventually undermine the cartel itself. The NIEO, it has been said, is like the Holy Roman Empire, which was neither holy, nor Roman, nor an empire.
