Essay on the Four Main Demands of the South Developing Countries !
The Conviction prevailing among the States of South that they do not get a fair deal from the existing international economic order has led them to collectively demand a fair and even preferential deal in the field of trade, money and finance, technology and investment, and participation in international decision making. Their main demands are the following:
1. Trade:
(i) Remuneration prices for the exports from the developing countries of South. This also encompasses adoption of an integrated programme of commodities, including a common fund, for the regulation of prices and qualities.
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(ii) Steps to improve exports from the south of manufactured goods and reduction of protectionism in the North, especially non-tariff barriers.
(iii) Promotion of trade among the states of South on regional or sectorial bases.
2. Money and Finance:
(i) Larger share of Special Drawing Rights (SDRs) of IMF to the states of South and adoption of SDRs — aid link for this purpose.
(ii) Increasing Official Development Assistance (ODA) with greater attention to the least developed countries.
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(iii) Development of automatic sources of revenue e.g. taxes on brain drain and exploitation of non-renewable resources, sharing of revenues from ocean exploitation etc., and
(iv) More generous debt relief.
3. Technology and Investment:
(i) Transfer of suitable technology to the states of south at a reduced cost—
(ii) Control and regulation of the activities of multinational corporations, including the right of the states of the South to nationalize and expropriate foreign investment according to national, instead of international law.
4. Participation in international decision – making:
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(i) Shifting of more economic issues to UN forums, where the states of south have a strong voice.
(ii) Changing the weighted voting formulae in other forums such as IMF and World Bank.
(iii) Better co-ordination among different international economic organisations.
The above demands constitute a demand for structural changes in international economic relations.
The existing (old) international economic system based on exchange depreciation, protectionism, preferential trade blocs and discriminatory restrictive devices have brought about virtual destruction of the economics of the south.
The problem of balance of payment of the south in getting difficult. Their industries are not in a position to hold in competition with the well established industries of the North. The general feelings of the post second world war international trading, monetary, financial, institutional, technological and resources transfers systems and development patterns have been prejudicial to the interests of the South vis-a-vis the North has led to the demand for a New International Economic Order (NIEO).