The Rise of the Global South: A New International Economic Order

The Rise of the Global South: A Look Back at the New International Economic Order

In a world where the balance of power is shifting, the global south is on the rise. With China now the world’s largest economy, the top trading partner of over 120 countries, and the single biggest development financer, a new multipolar world order is emerging. The formation and expansion of the BRICS+ bloc and the resurgence of a Latin American “pink tide” challenging U.S. influence in the region are signs of this shift.

But this rise of the global south is not a new phenomenon. Fifty years ago, at a conference in Bandung, Indonesia, formerly colonized nations came together to assert their shared interests and challenge the unfair global economic system. The Third World movement, named in contrast to the First World and the Second World, was born. In 1974, these nations, backed by allies in the Second World and oil-exporting nations, passed landmark documents at the United Nations General Assembly, outlining a New International Economic Order (NIEO).

The NIEO aimed to rewrite the rules of the global economy, advocating for sovereignty, equity, and international cooperation. It called for control over natural resources, access to key technologies, regulation of multinational corporations, debt relief, democratization of institutions like the IMF, and preferential treatment for poorer countries in trade and financing. While the NIEO offered a blueprint for a more equal global economy, it faced challenges in the following years.

The power of the Third World movement faltered in the face of Cold War dynamics, violent regime changes, mounting debt crises, and the collapse of the Soviet Union. The global economy transformed, but not in line with the NIEO’s vision. Multinational corporations grew more powerful, trade agreements protected their interests, debt burdens increased, and technology monopolization became law.

Today, the global south is once again asserting its demands for a fairer international economic system. Countries are pushing for intellectual property loosening, global tax policy reform, debt cancellation, and governance democratization. The reemergence of the global south may challenge the existing U.S.-led international order, but it also offers opportunities for shared prosperity, multilateral cooperation, and a more just world.

Recognizing the legitimacy of the global south’s demands and the opportunities presented by its growing strength is crucial. While challenges may arise, building a new international economic order can lead to a more prosperous and peaceful world for all. The dream of a fairer global economy, first envisioned in Bandung in 1955, may finally be within reach.