Question 7. Which of the following statements about the NIEQ is false? (a) Give the LDCs control over their natural resources (b) Obtain access to Western markets (c) Reduce the cost of technology from the Western countries (d) Provide the developed countries with a greater role in international economic institutions Answer
Statement d is false. Explanation: NIEO or the New International Economic Order was an idea that originated with the realisation that economic development was vital for the independence of the new countries which more often than not was marked as Least Developed Countries or LDCs. A report in 1972 entitled Towards a New Trade Policy for Development brought out by the United Nations Conference on Trade and Development (UNCTAD) outlined a reform of the global trading system so as to: (i) give the LDCs control over their natural resources exploited by the developed Western countries, (ii) obtain access to Western markets so that the LDCs could sell their products and, therefore, make trade more beneficial for the poorer countries, (iii) reduce the cost of technology from the Western countries, and (iv) provide the LDCs with a greater role in international economic institutions.
