New International Economic Order (NIEO)
International Relations
- PYQs8
- Articles1
Background
NIEO represents a significant historical effort by developing countries to challenge the existing global economic order, highlighting the North-South divide and debates on global economic justice, which remain relevant in discussions on multilateralism and development.
The New International Economic Order (NIEO) was a set of proposals put forward by developing countries, primarily through the Group of 77 and the Non-Aligned Movement in the 1970s, aiming to reform the global economic system to be more equitable and responsive to their needs.
Facts & tables
- Advocates
- Primarily advocated by the Global South, led by the Group of 77 (G77) and the Non-Aligned Movement (NAM) in the 1970s.
- Core Objective
- Sought to transform global financial institutions like the World Bank and IMF to better serve the requirements of newly decolonised economies.
- Key Demands
- Aimed at addressing historical economic inequalities, promoting economic sovereignty, fairer terms of trade, and greater control over natural resources for developing nations.
- Historical Context
- Emerged during a period of decolonisation and increasing assertiveness of developing countries against the existing Bretton Woods system.
| Type | Reference |
|---|---|
| Conceptual area | International Relations |
| Body | Role |
|---|---|
| Group of 77 (G77) | Advocated |
| Non-Aligned Movement (NAM) | Advocated |
Prelims angle
Prelims angle: Statement-based questions
Prelims angle: Factual recall
- Proposed by Global South (G77, NAM) in 1970s.
- Aimed to reform global economic system for equity.
- Demanded transformation of IMF, World Bank.
- Sought fairer trade and control over resources.
- Reflected North-South economic divide.
| Year | Framing tags |
|---|---|
| 2025 | Multi-statement analysis, Institutional roles and functions |
| 2023 | Multi-statement analysis, Factual recall |
| 2019 | Factual recall, Conceptual understanding |
| 2016 | Factual recall, Conceptual understanding |
| 2016 | Statement-based questions, Conceptual understanding |
| 2016 | Statement-based questions, Factual recall |
| 2016 | Statement-based questions, Factual recall |
| 2014 | Factual recall |
Timeline
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International Relations
Conceptual area
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Prelims 2014
Factual recall
-
Prelims 2016
Factual recall, Conceptual understanding
-
Prelims 2016
Statement-based questions, Conceptual understanding
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Prelims 2016
Statement-based questions, Factual recall
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Prelims 2016
Statement-based questions, Factual recall
-
Prelims 2019
Factual recall, Conceptual understanding
-
Prelims 2023
Multi-statement analysis, Factual recall
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Prelims 2025
Multi-statement analysis, Institutional roles and functions
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Group of Seven | A platform for the globalised elite
The NIEO was a 1970s initiative by developing nations (G77, NAM) to establish a more equitable global economic system, demanding reforms in international financial institutions and fairer terms of trade.
See also
No related topics linked yet.
Past papers
2014–2025 · 8 questions
In the news
Group of Seven | A platform for the globalised elite
The NIEO was a 1970s initiative by developing nations (G77, NAM) to establish a more equitable global economic system, demanding reforms in international financial institutions and fairer terms of trade.
Try these PYQs
With reference to the International Monetary and Financial Committee (IMFC), consider the following statements:
1. IMFC discusses matters of concern affecting the global economy and advises the International Monetary Fund (IMF) on the direction of its work.
2. The World Bank participates as an observer in IMFC’s meetings.
Which of the statements given above is/are correct?
Statement 1 is Correct: The International Monetary and Financial Committee (IMFC) serves as a vital forum for discussing global economic issues and providing guidance to the International Monetary Fund (IMF). It brings together finance ministers, central bank governors, and other high-level officials from member countries to discuss challenges and opportunities facing the global economy. They also advise the IMF on its policy direction and work program. Statement 2 is Correct: The World Bank, while a separate institution, collaborates closely with the IMF. While not a formal member of the IMFC, the World Bank typically participates as an observer in IMFC meetings. This allows for better coordination and exchange of information between the two institutions on matters of mutual interest, such as global economic stability and development. Hence, option C is the correct answer.
Consider the following statements with reference to ‘IFC Masala Bonds’ -
1. The International Finance Corporation, which offers these bonds, is an arm of the World Bank.
2. They are the rupee-denominated bonds and are a source of debt financing for the public and private sector.
Select the correct answer using the code given below.
Statement 1 is Correct. The International Finance Corporation (IFC) is indeed an arm of the World Bank Group, a group of five international organizations that work together to fight poverty and promote sustainable development. The IFC specifically focuses on encouraging growth in the private sector of developing countries. Statement 2 is Correct. Masala bonds are rupee-denominated bonds issued by foreign entities (public or private sector) outside of India. These bonds raise capital for the issuer in Indian rupees, providing an alternative funding source. Therefore, the correct answer is 1 and 2 both are correct.
Consider the following statements in respect of the International Bank for Reconstruction and Development (IBRD):
I. It provides loans and guarantees to middle income countries.
II. It works single-handedly to help developing countries to reduce poverty.
III. It was established to help Europe rebuild after the World War II.
Which of the statements given above are correct?
The International Bank for Reconstruction and Development (IBRD) is a key arm of the World Bank Group, originally created for post-war reconstruction and now focused on development in middle-income nations. ✅ Statement I: Correct The IBRD provides loans and guarantees to middle-income and creditworthy low-income countries. ❌ Statement II: Incorrect The IBRD does not work single-handedly; it collaborates with other arms of the World Bank Group like IDA, IFC, etc. ✅ Statement III: Correct It was established in 1944 to help Europe rebuild after World War II.
Which one of the following is not a sub-index of the World Bank’s “Ease of Doing Business Index”?
The World Bank's Ease of Doing Business Index focuses on regulations that directly affect businesses. While maintaining law and order is a crucial aspect of a functioning economy, it's not directly measured in the Ease of Doing Business Index.
Consider the following statements:
1. New Development Bank has been set up by APEC.
2. The headquarters of the New Development Bank is in Shanghai.
Which of the statements given above is/are correct?
Statement 1 is Incorrect: At the fourth BRICS Summit in New Delhi (2012), the leaders of Brazil, Russia, India, China, and South Africa considered the possibility of setting up a new Development Bank to mobilize resources for infrastructure and sustainable development projects in BRICS and other emerging economies, as well as in developing countries. Statement 2 is Correct: The bank is headquartered in Shanghai, China. Hence, option B is the correct answer.
Show 3 more PYQs
Consider the following statements about G-20:
1. The G-20 group was originally established as a platform for the Finance Ministers and Central Bank Governors to discuss the international economic and financial issues.
2. Digital public infrastructure is one of India's G-20 priorities.
Which of the statements given above is/are correct?
* Both statements about the G-20 are correct * Statement 1 is correct: The G-20 originated as a forum for Finance Ministers and Central Bank Governors to address global economic and financial issues. It has since expanded its focus to other areas of international cooperation. * Statement 2 is correct: India, as the chair of the G-20 in 2023, prioritised digital public infrastructure as one of its key areas of focus. This included discussions on promoting responsible use of artificial intelligence, bridging the digital divide, and fostering inclusive growth through digitalization.
Which of the following organizations brings out the publication known as ‘World Economic Outlook’?
The organization that brings out the publication known as 'World Economic Outlook' is the International Monetary Fund (IMF).
Recently, which one of the following currencies has been proposed to be added to the basket of IMF’s SDR?
The SDR is an international reserve asset created by the International Monetary Fund (IMF) and not a single currency. Its value is based on a basket of five major world currencies - US Dollar (USD)
- Euro (EUR)
- Japanese Yen (JPY)
- British Pound Sterling (GBP)
- Chinese Renminbi (RMB) (added in 2016) The IMF reviews the composition of the SDR basket every five years to ensure it reflects the relative importance of currencies in the global trading and financial system. The inclusion of the RMB in 2016 signified the growing importance of the Chinese economy in the world.