Identify the incorrect statement with reference to NIEO (New International Economic Order).

A. Majority of the non-aligned countries were categorised as developed countries
B. The United Nations Conference on Trade and Development brought a report in 1972, proposing reform of the global trading system
C. To raise the cost of technology from the western countries
D. Provide the LDCs with a greater role in international economic institutions
E. To give LDCs control over their natural resources

Choose the correct answer from the options given below:

A and C only

The correct answer is Option 3 - A and C only

Given statements:

A. Majority of the non-aligned countries were categorised as developed countries (Incorrect)
B. The United Nations Conference on Trade and Development brought a report in 1972, proposing reform of the global trading system
C. To raise the cost of technology from the western countries (Incorrect)
D. Provide the LDCs with a greater role in international economic institutions
E. To give LDCs control over their natural resources

Explanation:

The non-aligned countries were more than merely mediators during the Cold War. The challenge for most of the non-aligned countries — a majority of them were categorised as the Least Developed Countries (LDCs) — was to be more developed economically and to lift their people out of poverty. Economic development was also vital for the independence of the new countries. Without sustained development, a country could not be truly free. It would remain dependent on the richer countries including the colonial powers from which political freedom had been achieved

The idea of the New International Economic Order (NIEO) originated with the realization of the necessity to have sustained development. The United Nations Conference on Trade and Development (UNCTAD) brought out a report in 1972 entitled Towards a New Trade Policy for Development. The report proposed 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.