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Essay on The New International Economic Order

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The New International Economic Order

In the early 1960's the economic gap separating the first world from the third or other world began to explode. With the industrialized states controlling more than 3/4ths of the global economy the disadvantage facing the third world could easily be seen. Third world countries lacked the start-up capital, the education, and the technology to compete with the first world. In the early 1970's the United Nations began to listen to the cries from these third world states, and set out to develop a strategy at which to combat these problems. This strategy lead to the development of The New International Economic Order (NIEO) or the Group of 77 in 1974. The group consisted of 77 members " which would …show more content…

The issue upset particular rich states which had corporations located in third world states mining these different natural resources. Before this agreement rich states were basically stealing the only profitable items some of these third world states had to offer. With this issue it was stated that if there were any natural resources located in a states border. Than those resources belong to that individual state.

The third issue stated is that the prices of raw materials should be directly related to the prices of manufactured goods. This issue focuses on the continuing rise of inflation in the first world versus the stagnant growth of prices for raw materials produced by the third world. By looking at prices in the present time you can see that this issue was never accepted by all the members. The reasoning is that it would hurt us living in the developed world. As an example, the price of new automobiles has risen dramatically in just the past ten years. But the price of iron ore which is needed to make the steel frames for those automobiles has virtually stayed the same in the past ten years. So in the past ten years prices for automobiles have increased substantially due to the development of new technologies, but imagine if besides paying for these new technologies we also had to pay more for iron ore due to inflation. We as Americans would be outraged at the increase in price for iron

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