Discuss the United Nations Declaration on the establishment of a New International Economic Order along with the Charter of Economic Rights and Duties of States.

Background to the NIEO and CERDS

The NIEO and CERDS emerged from the backdrop of the Third World's assertion of its independence and demands for fairer treatment in the global economy. The Non-Aligned Movement (NAM) played a crucial role in articulating these demands. The oil crisis of 1973, which significantly impacted global economies and highlighted the vulnerability of developing nations, further amplified the call for a restructuring of international economic relations. The perceived bias of the Bretton Woods institutions (World Bank and IMF) towards developed countries was a key grievance.

The United Nations Declaration on the Establishment of a New International Economic Order (NIEO)

The NIEO declaration, adopted at the Sixth Special Session of the United Nations General Assembly, was a comprehensive blueprint for a radically different global economic system. It articulated a vision where developing countries would have greater control over their resources and economies.

• Key Provisions:
  • Commodity Policies: Advocated for greater control by developing countries over their natural resources, including the right to nationalize them.
  • Trade Policies: Demanded an end to discriminatory trade practices and preferential treatment for developed nations. Proposed a Common Fund for Commodities to stabilize commodity prices.
  • Finance & Technology: Called for increased development assistance, debt relief, and access to technology transfer on preferential terms.
  • Multilateral Institutions: Suggested reforms to the UN system and the Bretton Woods institutions to make them more representative of developing nations.

The NIEO was seen as a challenge to the existing global order and was met with resistance from developed nations who viewed it as infringing on their sovereignty and economic interests.

The Charter of Economic Rights and Duties of States (CERDS)

The CERDS, adopted alongside the NIEO, provided a legal framework for the principles outlined in the declaration. It aimed to define the economic rights and duties of states in the international system.

• Key Provisions:
  • Sovereign Economic Policies: Affirmed the right of states to pursue their economic policies independently.
  • Right to Participate in International Economic Relations: Recognized the right of all states to participate in international trade and investment.
  • Duty to Promote Economic Development: Placed a duty on states to promote economic development and improve living standards.
  • Duty to Avoid Economic Policies Harmful to Others: Required states to refrain from economic policies that could damage other countries.

Article 24 of CERDS, concerning the right to nationalization, was particularly contentious and drew criticism from developed nations.

Comparison and Criticism

Feature	NIEO	CERDS
Scope	Broad declaration outlining a vision for a new economic order	Legal framework defining economic rights and duties of states
Focus	Trade, commodity policies, development assistance, institutional reform	Sovereignty, economic policies, participation in international relations
Criticism	Unrealistic demands, potential for protectionism, infringement on national sovereignty	Vague language, difficult to enforce, potential for abuse

Both documents were criticized for being overly ambitious and lacking concrete mechanisms for implementation. Developed nations argued that the NIEO’s proposals would undermine free trade and investment, while developing nations felt that the measures outlined were insufficient to address the structural inequalities of the global economy.

Impact and Legacy

Despite their lofty aspirations, the NIEO and CERDS failed to fundamentally transform the global economic order. The proposals were largely symbolic and faced consistent opposition from developed nations. The oil crisis of the 1970s initially provided some leverage for developing countries, but this was short-lived. However, these documents did have a lasting impact on international economic discourse.

• Increased Awareness: They brought attention to the issues of global economic inequality and the need for reforms.
• Shaped Subsequent Negotiations: They influenced subsequent rounds of trade negotiations and development assistance programs.
• South-South Cooperation: They fostered greater cooperation among developing countries.

The NIEO and CERDS remain significant historical documents that reflect the aspirations of the developing world for a more just and equitable global economic system. While they did not achieve their original goals, they contributed to a greater understanding of the challenges faced by developing nations and helped shape the ongoing debate about global economic governance.

The United Nations Declaration on the Establishment of a New International Economic Order and the Charter of Economic Rights and Duties of States, born out of a desire for economic justice, ultimately proved difficult to implement due to inherent political and economic complexities. While failing to revolutionize the global order, they remain crucial documents signifying the developing world's struggle for fairer representation and highlighting the persistent challenges in achieving equitable economic relations. The call for reform within international institutions and a more balanced approach to trade and development continues to resonate today, influenced by the legacy of these foundational declarations.