question_answer

Highlight the circumstances which gave birth to the idea of New International Economic Order (NIEO). Explain any two factors that weakened this initiative.

Or

In what three ways did the collapse of the Soviet Union affect the world politics? Explain.

Answer:

The idea of New International Economic Order (NIEO) originated with the realisation that United Nation Conference on Trade and Development brought out a report in 1972 entitled towards a new trade policy for development.

(i) Give the LDC?s control over their natural resources exploited by the developed western countries.

(ii) Obtain access the western market so that LDCs sell their product and make trade more beneficial for the poorer countries.

(iii) Reduce the cost of technology from the western country.

(iv) Provide the LDC?s with a greater role in the international economic institution.

Reasons of weakening of NIEO:

(i) It had faded mainly because of the stiff opposition by the developed countries.

(ii) NAM became an economic pressure group.

Or

The collapse or Soviet Union and the Socialist systems in Eastern Europe had profound consequences on World Politics.

(i) The firstly, meant the end of Cold war. This led to -

(a) The end of ideological disputes over whether Socialist system is better or capitalist.

(b) Since this dispute had triggered massive arms race and accumulation of nuclear weapons and existence of military blocs, now with its end, arms race ended and gave hope for a new peace in the world.

(ii) The end of Soviet Bloc meant the emergence of many new countries. All these countries had their own independent aspirations and choices. Some states like Baltic States (Estonia, Latvia, Lithuvania, Ukraine, Georgia) and the Eastern European states wanted to join the European Union and become part of the NATO. The Central Asian countries wanted to take advantage of their geographical locations. So they continue to have close ties with Russia at one side and with West, the US, China on the other side.

(iii) The Power Relation in the World also changed and so did the relative influence of ideas and institutions. The end of Cold War left the possibility of:

(a) Either remaining superpowers i.e., US would dominate and create a unipolar system.

(b) Different countries or group of countries could became important players in the international system, thereby bringing a multipolar system where no one power could dominate.