NCERT · Class 10 · Social Science · History: The Making of a Global WorldWhy did the Group of 77 (G-77) countries demand a New International Economic Order (NIEO)?

Most developing countries did not benefit from the rapid economic growth that the Western economies experienced in the 1950s and 1960s. To address this disparity, they organized themselves as a group – the Group of 77 (or G-77) – to demand a New International Economic Order (NIEO). By NIEO, they meant a system that would give them real control over their natural resources, more development assistance, fairer prices for raw materials, and better access for their manufactured goods in developed countries' markets. The existing Bretton Woods institutions (IMF and World Bank) were designed to meet the financial needs of industrial nations and did not adequately address the poverty and development challenges of newly independent developing nations, prompting the G-77 to seek a fairer global economic system.