Change and the New International Economic Order

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Articles

  1. UN Reports on Progress towards New International Economic Order | News | SDG Knowledge Hub | IISD
  2. Center for Strategic & International Studies
  3. About Legal Aspects of the New International Economic Order

The developing countries that had been advocating radical resolution for their vision of a new economic order, reluctantly agreed to compromise.

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UN Reports on Progress towards New International Economic Order | News | SDG Knowledge Hub | IISD

This article concludes that the quest for a new economic order at the first UNCTAD resulted in little achievement, because the countries that were involved did not have any concrete ideas or concepts to build suitable new international trade and development policies. Reflecting the confrontation with Southern countries, the Northern countries tried not only to develop international cooperation arrangements but to reactivate the GATT through tariff cuts and trade liberalizations.

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Center for Strategic & International Studies

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In the s, however, U. Moreover, the collapse of the Bretton Woods system in meant that the United States had to rely more on macroeconomic policy coordination mechanisms with other developed countries to maintain the international monetary order.


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The outbreak of the subprime mortgage crisis in the United States, as well as the sovereign debt crisis in Europe, changed the long-established belief that developed economies are immunized from financial crises. As the international economic system has become increasingly incapable of dealing with the detection, prevention, and treatment of crises caused by the wave of globalization, regional or cross-regional economic governance platforms are playing an ever more important role.

Despite numerous challenges, the primary architecture of world economy remains largely unaltered. And the reform of the current international economic system should focus on three main issues. According to statistics released by the World Bank, U. GDP amounted to Despite the monetary hegemony that the U.

About Legal Aspects of the New International Economic Order

Since the beginning of the twenty-first century, developing countries have maintained rapid economic growth, and their united strength is approaching that of the Group of Seven industrialized countries G7. According to IMF estimates, in G7 nations accounted for nearly Besides, they have begun to participate in top-level global governance design and thus play an increasingly important role in certain important global institutions. This situation is reflected above all in the rise of the Group of Twenty G20 , which encompass major developed and developing economies, and acts as the most important platform for international economic cooperation.

Unfortunately, developing countries have still not gained the status or voice proportionate to their strength and the momentum of their economic growth in the international economic system. All in all, the redistribution of interests, obligations, and power entailed by the rise of developing countries will have an explosive impact on the international order.