The Developing World and the IPE

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The Developing World and the IPE

• Lecture 14

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The Emergence of South-South Cooperation

• The Bandung Conference - 1955 beginning of the
  non-aligned movement
• UNCTAD 1964, the G-77
• Cooperation during the Doha round of the WTO
• Regional economic cooperation

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NIEO demands
Developing countries must be entitled to regulate
and control the activities of multinational
corporations operating within their territory.
They must be free to nationalize or expropriate
foreign property on conditions favourable to
them. They must be free to set up associations
of primary commodities producers similar to the
OPEC all other States must recognize this right
and refrain from taking economic, military, or
political measures calculated to restrict it.
International trade should be based on the need
to ensure stable, equitable, and remunerative
prices for raw materials, generalized
non-reciprocal and non-discriminatory tariff
preferences, as well as transfer of technology
to developing countries and should provide
economic and technical assistance without any
strings attached. (source the wikipedia)
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2000 G77 SummitHavana Programme of Action

• Trade reforms
• Monetary reforms
• Institutional reforms
• Economic modernization
• Political and economic sovereignty
• Greater labour migration
• Elimination of economic coercion
• Economic aid
• Debt relief

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LDC Action

• Early Development Policy
• Nationalizing MNCs
• Establishing cartels
• Protectionism
• Recent policies
• Learn to compete with the EDCs

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The Asian Miracle

• States guided the markets in line with long term
  national interests but market signals helped to
  governments informed and effective
• Land reform
• Large scale industrialization
• Balancing variables

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What factors contributed?

• Culture, geography, leadership and luck
• Confucian emphasis on conformity and the needs of
  the social whole, hard work, respect for
  education, and authority exercised with
  compassion
• South Korea, ethnically homogenous, weakness of
  social classes, strong leadership
• International context
• Politics and governance

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