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William Loehr - Threat To Development

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Book:
Threat To Development
Author:
William Loehr / John P Powelson
Publisher:
Taylor & Francis
Genre:
Books / Politics
Year:
2021
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Threat to Development: Pitfalls of the NIEO

Also of Interest

From Dependency to Development: Strategies to Overcome Underdevelopment and Inequality , edited by Heraldo Muoz

Transnational Enterprises : Their Impact on Third World Societies and Cultures , edited by Krishna Kumar

Technology and Economic Development: A Realistic Perspective , edited by Samuel M. Rosenblatt

Credit for Small Farmers in Developing Countries , Gordon Donald

Finance and Development: The Role of International Commercial Banks in the Third World , Michael DaCosta

The Theory and Structures of International Political Economy , edited by Todd Sandler

The Lending Policy of the World Bank in the 1970s: Analysis and Evaluation , Bettina S. Hurni

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The Challenge of the New International Economic Order , edited by Edwin P. Reubens

Debt and the Less Developed Countries , edited by Jonathan David Aronson A Select Bibliography on Economic Development: With Annotations , John P. Powelson

US. Foreign Policy and the New International Economic Order: Negotiating Global Problems, 19741981 , Robert K. Olson

Science and Technology in a Changing International Order: The United Nations Conference on Science and Technology for Development , edited by Volker Rittberger

Governments and Mining Companies in Developing Countries , James H. Cobbe

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Available in hardcover and paperback.

Westview Special Studies in Social, Political, and Economic Development

Threat to Development: Pitfalls of the NIEO
William Loehr and John P. Powelson

Far from transferring resources from the rich to the poor, as intended, the New International Economic Order (NIEO)if fully implementedis more likely to transfer them from the poor to the rich. Thus assert the authors, who present their analysis of trade and investment data in support of their conclusions. The NIEO, a program adopted by the United Nations, proposes increased prices of primary products, tariff preferences for exports of less developed countries to the industrial world, a code of conduct for multinational corporations, international monetary reform, debt forgiveness or rescheduling for the third world, plus a number of other provisions designed to help third world countries.

But, the authors contend, all these provisions will further enrich the already rich within the third world, while adding to the poverty of the already poor. Higher prices for primary products would benefit the rich producers at the expense of the poor who buy them. Debt rescheduling would help only those rich enough to incur debt in the first place; because aid is available in finite quantities, this help might be at the expense of the poor. Likewise, trade preferences would also help the rich, who are the major exporters.

The NIEO has been widely acclaimed in industrialized as well as in third world countries; this book demonstrates how the effects of the NIEO could well be the opposite from what is widely believed.

William Loehr is an associate professor of economics at the University of Denver. In 1979 he was a visiting professor at the University of Chile. His publications include The Economics of Development and Distribution (1981; with J. P. Powelson) and Public Goods and Public Policy (1978; edited with Todd Sandler). John P. Powelson is a professor of economics at the University of Colorado, Boulder. He has been senior economic adviser to the ministries of finance of Kenya and Bolivia and has published numerous books and papers, including A Select Bibliography on Economic Development: With Annotations (Westview, 1979).

First published 1983 by Westview Press

Published 2019 by Routledge

52 Vanderbilt Avenue, New York, NY 10017

2 Park Square, Milton Park, Abingdon, Oxon OX14 4RN

Routledge is an imprint of the Taylor & Francis Group, an informa business

All rights reserved. No part of this book may be reprinted or reproduced or utilised in any form or by any electronic, mechanical, or other means, now known or hereafter invented, including photocopying and recording, or in any information storage or retrieval system, without permission in writing from the publishers.

Notice:

Product or corporate names may be trademarks or registered trademarks, and are used only for identification and explanation without intent to infringe.

Library of Congress Cataloging in Publication Data

Loehr, William.

Threat to development.

(Westview special studies in social, political, and economic development)

Bibliography: p.

Includes index.

1. International economic relations.2. Underdeveloped areas.I. Powelson, John P.,
1920- II. Title.III. Series.

HF1411.L554 1983 337 82-4777

ISBN 13: 978-0-367-27396-5 (hbk)

Contents

Guide

Figures

Tables

Since the Declaration of a New International Economic Order (NIEO) was adopted by the United Nations in 1974, its supporters have multiplied. They include not only diplomats from less developed countries (LDCs), but also agencies of the United Nations such as UNCTAD (United Nations Conference on Trade and Development), UNIDO (United Nations Industrial Development Organization), and UNITAR (United Nations Institute for Training and Research). UNITAR has developed a library that includes fifty-seven volumes of material on NIEO. In addition, a support movement has swelled among nongovernmental organizations in more developed countries (MDCs).

These supporters stress that the old economic orderthe way in which international business and banking have been donehas primarily benefited the rich countries. Relative richness and poverty have been explained, at least in part, by the workings of this old order. We accept this proposition, and it is not what this book is about.

Rather, we believe that a more sober analysis of the proposed new order is timely. UN publications refer to the NIEO as a wave of the future, inevitable, and a natural extension of the struggle against colonialism. Perhaps it is, in part. But the declaration is also a document prepared by the governments of less developed countries, and it is not always clear that NIEO represents the interests of the whole country as opposed to the modern sector elites.

For the most part, we believe that the NIEO is a way of transferring resources from the poor to the rich. The fact that it may do so and still gain wide political support stems from one of the quirks of economic reasoning: The ultimate impact of a proposition may be the opposite of what appears on the surface. We plan to show, in the present book, how that quirk is the case with the principal planks of the NIEO plan and how this fact will ultimately reduce the prospects for its widespread acceptance.

This book can be read by nontechnical as well as technical readers. Generally, little prior knowledge of economics is required. In the instances where an understanding of complex economics principles is important, however, we have attempted to provide illustrative material that will make our points clear to the general reader.

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