chapter  12
28 Pages

Beyond the New International Economic Order

WithNathaniel H. Leff

The call of the developing countries for the creation of a New International Economic Order (NIEO) has aroused widespread interest. Some observers have gone so far as to advocate that the new order be made the centerpiece of future economic and political relations between the United States and the Third World. Before making such a commitment, however, it is worth considering what would be the likely effects if the measures of the NIEO were, in fact, implemented. Such an analysis is the first purpose of this chapter. The authors then consider the major economic and political shifts that affected the less-developed countries and the United States from 1972 to 1978, when the NIEO first received widespread attention. For some reasons, US acceptance of the NIEO would soon lead to a worsening, rather than an improvement, of political relations with the Third World. The NIEO would also involve a large increase in resource transfers from the rich to the poor countries.