nieo and opec changing geo political order

8/19/2019 nieo and opec changing geo political order

1/19

POLITICAL SCIENCE-III

ON

OPEC AND NEW INTERNATIONAL ECONOMIC ORDER CHANGING

GEOPOLITICAL WORLD ORDER.

Submitted to:

Prof. CHETAN SINGHAI

M.Rubesh

B.A., LL.B (HONS.), 5th Semester,

Section- B, BA0!0050

1 | P a g e


2/19

"#b$e o% &ontents

'. 'N"RO&"'ON***************************.!

''. M+"HOOLO***************************

#. A'M

b. OB/+&"'+ O1 S"

c. "H+M+

d. 2ROBL+M S"A"+M+N"

e. M+"HOOLO

1. R+S+AR&H 3+S"'ON

'''. L'"+RA"R+ R+'+4*******************...........5

'. H'S"OR'&AL 2R+'+4 O1 O2+& AN N'+O************

A. O2+&

B. N'+O

. S AN O2+& R+LA"'ONSH'2******************6

'. N'+O AN "H'R 4ORL &ON"R'+S*****************7

''. 'M2OR"AN&+ O1 N'+O B+"4++N 76 AN 766*********

'''. 'SS+S 4'"H N'+O AN '11+R+N&+S 4'"H'N O+&

AN "H'R 4ORL********************.............8

'9. &OM2AR'SON O1 O2+& AN N'+O***************...!

9. &ON&LS'ON*************************.

2 | P a g e


3/19

9'. R+1+R+N&+**************************

INTRODUCTION

4ho ru$es e#st +uro;e comm#nds the he#rt$#nd<

4ho ru$es the he#rt$#nd comm#nds the =or$ds- is$#nd:

4ho ru$es the =or$d-'s$#nd comm#nds the =or$d>

-M#c?inder, emocr#tic ide#$s #nd re#$it@, ;. 50

M#c?inder s#@s th#t #n@ ;o=er =hich contro$$ed the =or$d-is$#nd =ou$d contro$ =e$$ oer 50

o% the =or$dCs resources. Since the 7!0s there h#e been $in? bet=een the S #nd the Midd$e

+#st countries. 4hi$e Dener#$ inestment cu$tur#$ ties c#n be identi%ied, it is =ide$@ s#id th#t S

oerridinD interest in the reDion is to secure che#; #nd re$i#b$e enerD@ sources. "he intern#tion#$

3 | P a g e


4/19

theor@ o% neo-re#$ism #rDues th#t st#tes see?s ;o=er #s # me#ns o% suri#$. 't #$so #mount to

se$%-he$; in %oreiDn #%%#irs. +nerD@ securit@ is it#$ to the oer#$$ suri#$ o% the S #nd cert#in

dee$o;ments #nd con%$icts in the intern#tion#$ #ren# $end su;;ort to neo-re#$ist theories. "his

;#;er s#@s #bout ho= S interenes in m#?inD %oreiDn ;o$ic@ in re$#tion =ith Midd$e +#stern

countries. Ho= S in%$uences in oerridinD the Midd$e +#stern countries.

Ne= intern#tion#$ +conomic order is ;#rt o% # $#rDer c$#ss i% merc#nti$ist str#teDies em;$o@ed b@

#rious countries #t ;#rticu$#r moments in histor@ to redress ;o$itic#$$@ im;ort#nt economic

imb#$#nces. "he uniEue ;resent north - south con%$icts is in mu$ti$#ter#$ ch#r#cter. "his is bec#use

o% the orthodoF@ o% de;endenc@ #nd =or$d s@stem theor@. "his ;#;er #$so s#@s #bout the ne=

intern#tion#$ economic order #nd the re$#tionshi; bet=een north- south countries. Ho= it

in%$uences the re$#tionshi; bet=een north-south countries. Ho= core countries eF;$oits theresources #nd r#= m#teri#$ %rom the ;eri;her#$ countries.

"his ;#;er m#in$@ de#$s =ith S interention in %oreiDn ;o$ic@ m#?inD on Midd$e +#stern

countries #nd N'+O ho= it h#s ch#nDed the interde;endenc@ bet=een north-south countries.

4h@ the south countries or the third =or$d countries or dee$o;inD countries #re sti$$ dee$o;inD

ins;ire o% N'+O is %or the =e$%#re o% the dee$o;inD or third =or$d countries. 4h@ it is beinD sti$$

under dee$o;inD reDion. "his issue is beinD de#$t =ith ;o=er #nd =or$d s@stem theor@.

AIM

"he #im o% this ;#;er is to $e#rn #bout orD#niG#tion o% the ;etro$eum eF;ortinD countries #nd the

ne= intern#tion#$ economic order: &h#nDinD Deo;o$itic#$ =or$d order.

OBJECTIVE OF STUDY:

4 | P a g e


5/19

"he obectie o% this stud@ is to sho= =h@ S sho=s their interest to=#rds Midd$e +#stern

countries #nd ho= it is in%$uencinD these n#tion. "he dee$o;ed countries ho= it is eF;$oitinD

dee$o;inD countries b@ =#@ o% ne= intern#tion#$ economic =or$d order.

THEME

"he theme o% this rese#rch ;roect is to ho= the Deo;o$itic#$ =or$d order h#e been ch#nDed b@

the orD#niG#tion o% the ;etro$eum eF;ortinD countries (O2+&) ,# ;erm#nent interDoernment#$

orD#niG#tion #nd the ne= intern#tion#$ economic order (N'+O) =hich is # set o% ru$es ;ro;osed

b@ united n#tionCs con%erence on tr#de #nd dee$o;ment.

PROBLEM STATEMENT

"he O2+& n#tions =ith h#inD oi$ resources =hich is # it#$ resources %or other n#tions #nd

=hich #re in need o% the s#me, here O2+& =hich #re nothinD but the midd$e e#st n#tion =hich is

beinD hiDh$iDhted b@ S in order to Det in%$uence oer the oi$. S beinD su;erior n#tion tries to

t#?e hiDh$iDht on the midd$es e#st n#tions. "he ne= intern#tion#$ economic order %or the third=or$d countries =hich in%$uence the Deo;o$itic#$ =or$d order b@ me#ns o% tr#de o% the resources

=hich the o;ec n#tions eF;orts. "his =#s introduced in order to incre#se the interde;endenc@

=ithin the core countries #nd ;eri;her#$ countries. 'n s;ite, it =#s introduced in order to he$; the

third =or$d countries to Det dee$o;ed but this in turn h#s incre#sed the in%$uence oer the third

=or$d countries #nd #s # resu$t the third =or$d countries #re sti$$ inside the reDion o% third =or$d

countries. M#n@ ;o=er%u$ n#tions $i?e SA to st#rt =#r on the n#tions $i?e 'r#E =hich co$$ides

the ;e#ce =ithin n#tions. "his ;roect tries # so$ution %or these ;rob$ems.

METHODOLOGY

"he rese#rch method used is inductie method. "he ;rim#r@ resources #re boo?s, ne=s;#;er,

#rtic$e #nd ourn#$s issued b@ =or$d orD#niG#tion. "he second#r@ resources #re some #uthoriGed

=ebsites o% =or$d orD#niG#tions

5 | P a g e


6/19

RESEARCH QUESTION

•

4h#t is the re$#tionshi; bet=een S #nd O2+&I

• N'+O to=#rds third =or$d countries or dee$o;ed n#tionI

LITERATURE REVIEW

M#c?inderCs the DeoDr#;hic#$ ;iot o% histor@ Dies the ide# o% ho= DeoDr#;h@ ;$#@s #n

im;ort#nt ro$e in intern#tion#$ re$#tions #nd ho= n#tions %iDhts =ithin other n#tions b@ DettinD

#ttr#cted to=#rds the DeoDr#;h@. "he historic#$ %#cts h#s been ;roed in this boo?

ho= DeoDr#;h@ ;$#@s #n im;ort#nt ro$e in =#r bet=een n#tions. "he thin?inD o% M#c?inder #%ter

4or$d 4#r ' #nd the re#son behind his thin?inD h#s brie%$@ discussed.

Sem;#Cs M#c?inderJs =or$d describes the b#c?Dround to M#c?inder thin?inD =h@ M#h#nJs se#

in#sion =#s o;;osed h#s been c$e#r$@ eF;$#ined. "he re#son behind eer@ thin?inD

o% M#c?inder h#s been c$#ri%ied. "his he$;s to Det the re#$ ;o$itics behind n#tions in#dinD other

n#tions %or n#tur#$ resources

4#$tG, Kenneth theor@ o% intern#tion#$ ;o$itics Dies # brie% ide# on neore#$ism #nd ho= it

#ries =ith other t@;e o% re#$ism. "he intern#tion#$ re$#tionshi; #nd #n#rchic n#ture intern#tion#$

#ctor h#s been discussed brie%$@. "he intern#tion#$ re$#tions #nd ro$e o% su;eriorit@ b@ me#ns o%

DeoDr#;h@ h#s been eF;$#ined c$e#r$@. "he neore#$ist ide# th#t is the #n#rchic o% n#ture =or$d

countries in other =ords no ;o=er oer the =ho$e =or$d.

"he 'ntern#tion#$ 2o$itics o% the Midd$e +#st (800!). 'n this boo?, Hinnebusch #rDues th#t the

Midd$e +#st economies eFhibit m#n@ o% the c$#ssic %e#tures o% de;endenc@J =hich inc$ude

de;endence on # %e= b#sic eF;ort commodit@, most not#b$@ oi$< the %#i$ure to ;rocess these r#=

m#teri#$s into %inished hiDh-#$ue Doods, thus m#?inD their economies de;endent on the core< the

;o$itic#$ s#$ience o% de;endenc@ $in?s bet=een $oc#$ economic#$$@ domin#nt c$#sses #nd the core,

6 | P a g e


7/19

=hich det#ches these e$ites %rom the $oc#$ ;o;u$#tions #nd inhibits the dee$o;ment o% n#tion#$

economies< #nd # =estern- %in#nced #nd su;;orted mi$it#r@-securit@ structure =hich re;resses

ch#$$enDes to these de;endent core-;eri;her@ re$#tions. 1or Hinnebusch, the modern histor@ o%

the Midd$e +#st is # ;er;etu#$ struDD$e bet=een $oc#$ indiDenous %orms o% resist#nce, such #s the

r#dic#$ Ar#b n#tion#$ist #nti-im;eri#$ist struDD$es in the 760s, #nd 4estern st#tes #nd

mu$tin#tion#$s =ho h#e continu#$$@ succeeded in re;ressinD these #ttem;ts #t n#tion#$

#utonom@, most not#b$@ throuDh the trium;h o% neo-$iber#$ism in the 70s #nd the subseEuent

co$$#;se o% Soiet nion =hich $e%t the S #s the unch#$$enDed heDemon in the Midd$e +#st.

HISTORICAL PREVIEW OF OPEC AND NIEO

OPEC

"he OrD#niG#tion o% the 2etro$eum +F;ortinD &ountries (O2+&) is # ;erm#nent,

interDoernment#$ OrD#niG#tion, cre#ted #t the B#Dhd#d &on%erence on Se;tember 0, 70,

b@ 'r#n, 'r#E, Ku=#it, S#udi Ar#bi# #nd eneGue$#. "he %ie 1oundinD Members =ere $#ter

oined b@ nine other Members: 3#t#r (7)< 'ndonesi# (78) sus;ended its membershi; %rom

/#nu#r@ 8007< Lib@# (78)< nited Ar#b +mir#tes (76)< A$Deri# (77)< NiDeri# (76)<

+cu#dor (76!) sus;ended its membershi; %rom ecember 778-October 8006< AnDo$# (8006)

#nd #bon (76577). O2+& h#d its he#dEu#rters in ene#, S=itGer$#nd, in the %irst %ie@e#rs o% its eFistence. "his =#s moed to ienn#, Austri#, on Se;tember , 75.

O2+&Cs obectie is to co-ordin#te #nd uni%@ ;etro$eum ;o$icies #monD Member &ountries, in

order to secure %#ir #nd st#b$e ;rices %or ;etro$eum ;roducers< #n e%%icient, economic #nd reDu$#r

su;;$@ o% ;etro$eum to consuminD n#tions< #nd # %#ir return on c#;it#$ to those inestinD in the

industr@.

NIEO

"he Ne= 'ntern#tion#$ +conomic Order (N'+O) is # nited N#tions dec$#r#tion in 76, the

N'+O =#s the most =ide$@ discussed tr#nsn#tion#$ Doern#nce re%orm initi#tie o% the 760s. 'ts

1 OPEC: Brief History at http://www.opec.org/opec_web/en/about_us/24.ht !"ast

#isite$ at % &epteber 2'1%(

7 | P a g e

http://www.opec.org/opec_web/en/about_us/24.htm%20(lasthttp://www.opec.org/opec_web/en/about_us/24.htm%20(last


8/19

%und#ment#$ obectie =#s to tr#ns%orm the Doern#nce o% the D$ob#$ econom@ to redirect more

o% the bene%its o% tr#nsn#tion#$ inteDr#tion to=#rd the dee$o;inD n#tions>Pthus com;$etinD the

Deo;o$itic#$ ;rocess o% deco$oniG#tion #nd cre#tinD # democr#tic D$ob#$ order o% tru$@ soereiDn

st#tes...

ie=ed %rom our ;resent conuncture, the N'+O seems $i?e #n #;;#rition, #n im;rob#b$e

;o$itic#$ cre#ture th#t sur%#ced out o% the economic #nd Deo;o$itic#$ dis$oc#tions #nd

uncert#inties o% the e#r$@ to mid-760s, on$@ to sin? #=#@ #D#in ust #s Euic?$@. A;;e#rinD tod#@

#s the %iDment o% # no= #$$ but $ost ;o$itic#$ im#Din#r@, the N'+O s;r#nD %orth durinD # n#rro=

#nd s;eci%ic =indo= o% Deo;o$itic#$ o;;ortunit@, # moment o% disunction #nd o;enness,> =hen

=i$d$@ dierDent ;o$itic#$ ;ossibi$ities #;;e#red sudden$@ ;$#usib$e8.

US AND OPEC RELATIONSHIP

"he united st#tes interests to=#rds midd$e e#st h#s # historic#$ b#c?Dround %rom 7!0s st#nd#rd

$i%orni# #nd "eF#co =on the %irst concession to eF;$ore %or oi$ in S#udi Ar#bi#. "he $in?

bet=een Americ#n oi$ com;#n@ #nd S Doernment =ere est#b$ished %rom th#t e#r$@ ;eriod #nd

b@ the Second 4or$d 4#r, us ;o$ic@ m#?er be$ieed th#t it =#s # stu;endous source o% str#teDic

;o=er since %rom the histor@.

S unbe$ie#b$@ becominD more ino$ed in Midd$e +#st con%$ict. 4h#t is more, there #re #

number o% #;;#rent inconsistencies in its ;o$itics in the reDion ! this #boe sentence c#n be =e$$

understood %rom the %#ct th#t S su;;ortinD 'r#E to o;;ose 'r#n durinD 'r#n- 'r#E =#r #nd

outriDht the hosti$ities #D#inst 'r#E in 800! 'r#E =#r.

ArDument b@ m#n@ ;o$itic#$ thin?ers th#t i% the Midd$e +#st is rich in #n@ other sources other

th#n oi$ then scen#rio =i$$ be tot#$$@ di%%erent. "he im;ort#nce o% Midd$e +#st h#s %urther

incre#sed =hen the dec$in#tion o% S oi$ dec$ined in 760. "h#t is the time %or the Midd$e +#st

countries to Die # m#ssie entr@ to=#rds the com;$eF interde;endenc@ b@ Midd$e +#st countries

2 Bob )essop* +,hat -o""ows -or$is On the Perio$iation of Capita"is an$ its

0egu"ation* in Phases of Capitalist Development: Booms, Crises and Globalizations*e$. 0obert 3 Britton et a". !Basingstoe: Pa"gra#e* 2''1(* 252677.

8 9ye. un$erstan$ing internationa" con;icts < an intro$uction to theory an$ history

8 | P a g e


9/19

in the %orm o% O2+& in 76! #n intern#tion#$ oi$ emb#rDo ;erceied to be bi#sed, inc$udinD S.

'n 76! the er@ continuous ;o$ic@ #s # %#ctor in economic dee$o;ment the oi$ ;rice in 76!.

"he issue shou$d be understood in =or$d ;o$itic#$ ;oint o% ie= the current hiDh oi$ ;rices is to

be t#?en into #ccount. "he S the continuous con%$icts #nd tension th#t h#s triDDered its

re$#tionshi; =ith the =or$dCs $#rDest ;etro$eum resource b#se. "his tension c#nnot m#?e #

scen#rio =ithout ch#os this interde;endenc@ in oi$ h#s =orsen the situ#tion =hich c#use o% this

re$#tionshi; the ri;;$e e%%ect is on the rest o% the =or$d.

"his scen#rio shou$d be t#?en in the $ens o% =e$$-?no=n schoo$ o% thouDht th#t is the neore#$ist

ide#s. Here the theories shou$d be the s#ior in order to underst#nd the re$#tionshi; bet=een the

some o% the midd$e =#s countries #nd S

1or # tr#dition#$ re#$ist the interest o% the st#te is to ensure n#tion#$ securit@ #nd ;o=er or in

other =ords use o% %orce. "he@ #$so ;erceie th#t the =or$d order #s beinD inherent$@ #n#rchic

o=inD to the #bsence o% # centr#$ #uthorit@ c#;#b$e o% en%orcinD order.

Re#$ist $ens c#n on$@ be used b@ S ideo$oD@, its ;essimism #bout e$imin#tinD =#r h#s been

criticiGed #s %#i$inD to o%%er #n@ ;rescri;tie %r#me=or? %or %oreiDn ;o$ic@.

"he $iber#$ism other $ens used b@ the m#or =riters th#t 'R theor@ #rDues th#t the Dro=inD

interde;endence #monD n#tions is ch#r#cteriGed b@ economic $in?s, %$o= o% c#;it#$ #nd

intern#tion#$ institution =hich sto;s =#r in this modern =or$d.

"he su;rem#c@ o% mi$it#r@ #nd ;o$itic#$ %#ctors b@ u;ho$dinD, neo-re#$ists be$iees th#t the

im;ort#nce o% economic %#ctors #nd the contribution o% intern#tion#$ institutions c#n be in #n

#n#rchic =or$d. "his theor@ be$iees th#t the ;o=er o% # st#te shou$d be considered not on$@ in

mi$it#r@ terms but #$so in terms o% the economic, techno$oDic#$ #nd di;$om#tic c#;#bi$ities #t its

dis;os#$. 't #$so s#@s th#t the r#nDe o% ;otenti#$ thre#ts to the st#te h#s ch#nDed %rom ;h@sic#$ to

#n economic conseEuences.

Americ#Js #ctions to=#rds Midd$e +#st c#n be =e$$ underst#nd th#t this is %or n#tion#$ securit@

not %or mi$it#r@ or ;o$itic#$ su;eriorit@, but %or economic domin#nce. "his motie is eidenced

9 | P a g e


10/19

b@ 2resident eorDe BushJs recent em;h#sis on the thre#t o% Dro=inD com;etitors $i?e 'ndi# #nd

&hin# to Americ#Js economic $e#dershi;.

"he re$#tions bet=een the S #nd the Midd$e +#st Die rise to mi$it#r@ %orce, ;o$itics, economic

#nd tr#de $in?s #s =e$$ #s cu$tur#$ ties, di;$om#c@ #nd # deDree o% re$i#nce on intern#tion#$

institutions.

"he =or$d h#s ch#nDed. "he c#;#cit@ o% S#udi Ar#bi# to #ct #s # s=inD su;;$ier is diminished b@

the $o= $ee$ o% inestment in in%r#structure th#t resu$ted %rom the $o= crude oi$ ;rices o% the $#te

70s. +mb#rDos #nd hurric#nes in the u$% h#e % =e#?ened the in%r#structure situ#tion.

Moreoer #%ter the success%u$ ;#st conser#tion ;roDr#mmers #nd industr@ %ue$ substitution,

there is once #D#in # r#;id incre#se in consum;tion o% ;etro$eum in the S, =ith 0 o% oi$

reEuirements no= beinD im;orted.5

n$i?e ;reious ;rice s;i?es, it #;;e#rs th#t the sudden hiDh ;rices #re here to st#@. "he sim;$e

re#sons #re th#t the tr#dition#$ %eedb#c? $oo;s o% recession #nd reduction in dem#nd =hich

historic#$$@ stimu$#ted incre#ses in inestment #nd oi$ su;;$@ #re not =or?inD this time #round.

"he oi$ ;roducinD n#tions consider Q0 bb$. to be # %#ir ;rice %or oi$, there beinD no constr#ints

in the m#r?et. 4ith hindsiDht it #;;e#rs th#t Americ#Js #;;ro#ch to enerD@ ;o$ic@ m#@ h#e been

com;$#cent #nd there is no= re#$

't is im;ort#nt th#t oi$ is # sensitie commodit@ tr#ded in # D$ob#$ m#r?et .An@ short%#$$ on the

intern#tion#$ m#r?ets #s # resu$t o% disru;tions %rom the Midd$e +#st c#n be m#de u; %or %rom

other ;roducinD reDions. Simi$#r$@, oi$ emb#rDoes %rom one reDion or countr@ is me#ninD$ess in

ie= o% the inst#nt#neous o;er#tion o% oi$ m#r?ets. 'nste#d, it is #rDued th#t enerD@ securit@ is #

m#tter o% ;rice: the ;rice de;ends not on ho= much oi$ the S im;orts %rom the Midd$e +#st but

on ho= much Americ#, toDether =ith other countries, consume. 'n short, it =ou$d sere no

;ur;ose #s %#r #s enerD@ securit@ is concerned %or the S to reduce im;orts %rom the Midd$e

+#st.

4 &tate of the =nion $$ress* )anuary 81 2''> athttp://www.whitehouse.go#/news/re"eases/2''>/'1/2''>'181


11/19

Second$@, the m#or oi$ tr#dinD ;#rtner o% the S is n#d# #nd not the Midd$e +#st.!! &$e#r$@

this situ#tion =i$$ ch#nDe in $ine =ith Deo$oDic#$ re#$ities, but it r#ises Euestions #bout the

historic#$ em;h#sis on the Midd$e +#st

NIEO AND THIRD WORLD COUNTRIES

"he di%%erence bet=een core #nd the ;eri;her#$ countries is Dener#$$@ oersh#do=ed b@

su;er;o=er b#$#nce, the rise #nd %#$$ o% intern#tion#$ economic reDime $#rDe$@ %ocused on the

needs o% #d#nced industri#$ist st#tes. M#n@ re#$ist scho$#r h#e tried #ttem;tinD to %ind

%und#ment#$ c$e##De bet=een the north- south re$#tionshi;s in re$#tion =ith this NCs ne=

intern#tion#$ economic order.

'n the ;#st the S h#s been =i$$inD to enD#De in con%$ict to secure oi$ su;;$ies. 't #$so continues

to court ?e@ #$$ies in the Midd$e +#st =hich is the reDion =ith the =or$dJs $#rDest oi$ reseres.

+nerD@ securit@ h#s been t#c?$ed er@ much %rom the neo-re#$ist ;oint o% ie=.

"he ;o$itic#$ economics o% enerD@ =or$d=ide is becominD incre#sinD$@ com;$eF #nd mu$ti-

%#ceted: the s;#te o% oi$ industr@ n#tion#$iG#tions in L#tin Americ#, Russi#Js #ssertion o% st#te

contro$ oer the industr@, domestic ;o$itic#$ issues in S#udi Ar#bi#, 'r#nJs nuc$e#r ;osition #s

=e$$ #s &hin#Js economic Dro=th #$$ incre#se uncert#int@.

"his ie= is su;;orted #nd it is #rDued th#t the time is riDht %or # ch#nDe o% ;o$itic#$ ideo$oD@ in

the S. "he incre#se in n#tion#$ism, terrorism #nd D$ob#$iG#tion indic#te # ne= =or$d order

=hich =i$$ not to$er#te one-sided #ctions b@ the S. 'm;ort#nt$@, the Dro=th in &hin#Js economic

strenDth =i$$ soon sere to counter S heDemon@. +nerD@ ;o$ic@ must re$@ more #nd more on

str#teDic me#ns di;$om#c@, inestment, diersi%ic#tion #nd techno$oD@. "his shi%t in %ocus =i$$

en#b$e the de-$in?inD o% enerD@ #nd Midd$e +#stern issues, #nd en#b$e #n obectie reso$ution o%

the $#tter

Re#$ist scho$#rs h#e s#id #bout the n#ture #nd oriDins o% north south con%$ict. 1or the ;#st t=o

dec#de =or$d s@stem theor@ #nd de;endenc@ h#e domin#ted. +conomic ;rocess =hich h#e

their roots %rom D$ob#$ c#;it#$ist s@stem =hich ;resumed the eF#cerb#te intern#tion#$ =e#$th

11 | P a g e


12/19

dis;#rities #nd the s?e=ed ;#tter o% third =or$d countries in economic order. ee$o;inD

countries ret#in their indiidu#$ ;o$itic#$ con%$icts but the@ #re #$$ united common im;ediments

cre#ted or #ssumed b@ the ;eri;her#$ ;osition in the intern#tion#$ diision o% $#bor. Nieo h#s

m#n@ re$#tionshi; =ith the north-south re$#tionshi; %rom =ithin the tr#dition o% re#$ism. M#n@

scho$#rs ch#$$enDes the orthodoF@ o% de;endenc@ theor@. "he ;o$itics =ithin the north - south

re$#tion #re not # ;redetermined one. 2o=er #nd b#rD#ininD is done both #n#$@tic#$$@ #nd

;r#ctic#$$@.

Re#$ist ie= th#t intern#tion#$ s@stem is #n#rchic or soereiDn st#tes to no hiDher #uthorit@. "he

st#tes #re r#tion#$, unit#r@ #ctors #nd st#tes see? ;o=er to c#$cu$#te their interest in terms o%

;o=er. Re#$ist ;o$itic#$ econom@ h#s incre#sinD$@ ;o;u$#r oer the $#st dec#de. B#sed on the

#boe s#id, re#$ist ;o$itic#$ econom@ h#s m#de its Dre#test ;roDress in the stud@ o% north-northre$#tionshi; #nd %oreiDn ;o$icies o% #d#nced industri#$iGed countries the t=o m#in ;rob$em the

#mbiDuous n#ture o% ;o=er #nd re$#tionshi; bet=een ;o=er #nd interest, rem#ins the centr#$

;rob$em o% re#$ist inEuir@. &$#ssic#$ re#$ist $i?e h#nsmorDenth#u ;ostu$#te th#t countries see? to

m#FimiGe ;o=er, th#t one on$@ one str#teD@ %or m#FimiGinD ;o=er eFists #nd this str#teD@ is

nothinD but n#tion#$ interest. 't is this $in?inD o% ;o=er #nd the n#tion#$ interest =hich #$$o=s

re#$ists to eF;$#in n#tion#$ ;o$icies #nd intern#tion#$ outcomes.

Robert ?eoh#ne (7: !) notes,

So;histic#ted contem;or#r@ thin?ers in the re#$ist tr#dition.....underst#nd th#t interest c#nnot be

deried... 1rom the eFtern#$ i.e., ;o=erT ;osition o% st#tes....Re#$ist #n#$@sis h#s to retre#t to #

%#$$b#c? ;osition th#t Dien st#te interests, =hose oriDins #re not ;redicted b@ the theor@,

;#tterns i% outcomes in =or$d ;o$itics =i$$ be determined b@ the oer#$$ distribution o% ;o=er

#monD st#tes.

'n this neore#$ist ;ers;ectie, the $in? bet=een the ;o=er #nd interest is seered. "his is mist#?e

or # turn in =ronD direction. 2o=er #nd interest #re ineFtric#b$@ $in?ed. Re#$ism is to ;roide #n

e%%ectie #$tern#tie to economistic #;;ro#ches to intern#tion#$ ;o$itic#$ econom@, it must derie

s;eci%ic interest %rom the conce;t o% ;o=er #bs intern#tion#$ distribution o% ;o=er =here#s

neore#$ist #c?no=$edDinD the ;o=er #nd interest #re intert=ined, #nd these t=o conce;ts #re

12 | P a g e


13/19

#n#$@tic#$$@ di%%erent. 'nterest is somethinD =hich is deried %rom domestic ;o$itics it is #

determin#nt o% b#rD#ininD outcomes =hen interests con%$icts or # me#ns to Dien end. "he $in?

bet=een ;o=er #nd interest misinter;reted. "hird =or$dCs ;re#i$inD intern#tion#$ =e#?ness #nd

the interest =hich %o$$o= %rom it #re misidenti%ied. North south con%$ict #s m#ni%ested in N'+O

h#s historic#$ b#c?Dround.

IMPORTANCE OF NIEO BETWEEN 19! AND 19

"he sim;$istic ie= th#t #ttributes the resurDent north -south con%$ict to the success o% O2+&.

N'+O is # centr#$ issue in 760Cs =here#s $#tter conce;t =#s de%ined #s incre#se in the number o%

e%%ectie #ctors, the $ee$ o% uncert#int@ #bout the n#ture o% both domestic #nd intern#tion#$

tr#deo%%s %#ce b@ st#res #nd the com;$eFit@ #nd interde;endence o% the D$ob#$ economic s@stem.

"he $#c? o% siDni%ic#nt ;roDress on the N'+O ,on the other h#nd =#s # more m#tter o% re#$ #nd

#bidinD di%%erences oer economic #nd ;o$itic#$ Euestions th#n o% %#u$t@ orD#niG#tion o% the t#$?s

themse$es.

"he issues #nd con%$ict =hich diide birth #nd south #re $i?e$@ to ;ersist. 'n the $onDer run,

ho=eer, com;etition =ith the Soiet nion, the se#rch %or ;ros;erous eF;ort m#r?ets. "he

di%%erence =ithin the core #nd ;eri;her#$ countries the intern#tion#$ reDime ch#nDe #nd %oreiDn

;o$ic@ #re considered to be #r@inD %#ctors #nd decidinD %#ctors in indiidu#$ countries.

M#or issue in N'+O #nd the eFtent o% ;roDress on the issues bet=een 76 #nd 766. "he ;o=er

o% the third =or$d incre#sed but the reDimes rem#ined st#b$e in the #re#s o% %oreiDn #id #nd debt

re$ie%. But sti$$ no de%inite conc$usion c#n be dr#=n on the re$#tie im;ort#nce. ee$o;ed

countries in O+& there is # s;$it bet=een the Nether$#nds, Nor=#@ #nd S=eden =ho su;;orted

N'+O ;ro;os#$ =here#s erm#n@, #;#n, re#t Brit#in #nd the nited st#tes =ho o;;osed. 2

;er c#;it# #nd 2 in Dener#$ #re neD#tie$@ re$#ted to N'+O. ee$o;inD countries in re$#tion

=ith N'+O both %$eFib$e #nd there%ore it c#n receie =h#teer disru;tion the N'+O cre#tes. No

scho$#r c#n be #b$e to brinD # conc$usion reD#rdinD re$#tie ;o=er. +en thouDh O+& countries

> )e@rey . Hart* the new internationa" econoic or$er : Cooperation an$ con;ict innorth


14/19

c#n be #ccounted b@ ch#nDes in Doernment #nd domestic ;o$itics #nd soci#$ structure. 2o=er is

# b#rD#ininD outcomes bet=een countries Dien interest.

ISSUES WITH NIEO AND DIFFERENCES WITHIN OECD AND THIRD WORLD

On the re#$ist ie= north-south re$#tions. Hum#n needs, conention#$ $iber#$ #nd

interde;endence #rDuments h#s to be t#?en into #ccount. "he Euestion #rises here is i% ;o$itic#$

dem#nds #re re$#ted to economic ;er%orm#nce, =h#t is the re#son %or the c#$$ o% N'+O %or

emerDinD on$@ #%ter dec#des i% re$#tie ;ros;erit@ #nd incre#ses the st#nd#rds o% $iinD in third

=or$d. N'+O r#ther th#n m#FimiGinD economic =e#$th it is #ssumed th#t third =or$d $i?e #$$

st#tes #re concerned =ith ;o$itic#$ u$ner#bi$it@ #nd thre#t. "his Dies # conc$usion o% t#?inD

;o=er #nd contro$ #s # =e#$th. "he n#tion#$ ;o$itic#$ reDimes #re ;ro%ound$@ =e#? both

intern#tion#$$@ #nd domestic#$$@ #nd this distinDuishes dee$o;inD countries %rom others. A

dee$o;inD countries #re both re$#tie$@ sm#$$ #re me#sured b@ N2 #nd necessit@ ino$ed in

the intern#tion#$ econom@. "hird =or$d countries #re ch#r#cteriGed b@ soci#$ riDidit@ #nd #s =e#?

st#tes $#c?inD in #bi$it@ to eFtr#ct resources %rom their societies

"he Dro=inD ;o;u$#rit@ o% de;endenc@ theories durinD 70bthe third =or$d countries obt#ined

%or the %irst time # coherenc@ =or$d ie= =hich combines #n#$@sis #nd ;r#Fis =hich both

identi%ied the oriDin o% their re$#tie ;oert@ uni%ied dierse interests o% Drou;. "he dec$ininD ;o=er #nd #n emerDinD =or$d ie= eF;$#ins the under$@inD d@n#mic ;rinci;$es o% N'+O, the

n#ture o% eFistinD intern#tion#$ institution is the most ;roFim#te #nd im;ort#nt determin#nt o%

success.

Re#$ism %ocuses on #ccess to intern#tion#$ institution cre#tes 'mre $#?#tos (760) terns #

deDener#tie ;roDr#mmer, #n un%ortun#te st#te o% #%%#irs =here #b #d hoc h@;othesis not dr#=n

%rom the $oDic theor@ is reEuired to #ccount %or # ;erceied #nom#$@. Such m#neuers shou$d be

used #t $#st. Most im;ort#nt$@ re$#tionshi; bet=een third =or$d ;o=er #nd interests is not #s c$e#r

#nd str#iDht%or=#rd. "hird =or$d countries #re not homoDeneous or domestic#$$@ =e#?.

Ne=$@ industri#$iGinD countries (N'&s) demonstr#te, #t $e#st some dee$o;inD countries #re

#DDressie$@ %$eFib$e. "he N'& m#@ constitute eEu#$$@ #d#;t#b$e %orm o% st#te cor;or#tism. "hird

=or$d st#tes c#nnot enD#De in m#r?et $ed #dustment #s their dee$o;ed counter;#rts do. "his is

14 | P a g e


15/19

bec#use the dee$o;inD countries h#e no o;tion but to #$$o= intern#tion#$ m#r?et %orces to ;#ss

throuDh into their domestic economies is # centr#$ tenet o% de;endenc@ theor@. "he #ri#tion

#cross third =or$d countries on this score, ho=eer is $i?e$@ to be Dre#t. "hird =or$d countries

#re nor #$$ #$i?e. "heir source o% domestic strenDth #nd =e#?ness need to be considered more

conteFtu#$$@ i% this $ine o% #rDument is to be sust#ined. Sm#$$ countries c#nnot be #s intention#$$@

=e#? #s Kr#sner #sserts either. '% sm#$$ countries not #b$e to contro$ their enironment, the@ =i$$

;ossess o%%settinD o;tion to %ree ride on intern#tion#$ reDimes not ##i$#b$e to $#rDer countries.

Bec#use the@ #ccount %or re$#tie$@ sm#$$ sh#res o% =or$d tr#de. "hird =or$d countries h#e been

#b$e to t#?e #d#nt#De o% ste#di$@ $o=er t#ri%% $ee$s in the north =hi$e o%%erinD %e= reci;roc#tinD

concessions in the A"". "hird =or$d countries h#e been #b$e to de#$ue their currencies, o%ten

%iFed to the currenc@ o% their $#rDest industri#$iGed tr#dinD ;#rtner, =ithout the %e#r o% ret#$i#tion

th#t con%ronts $#rDer countries. "hese #re the centr#$ issues to=#rds N'+O #nd di%%erence =ithin

the third =or$d #nd O+& countries.

COMPARISON OF OPEC AND NIEO

O2+& #nd N'+O both emerDed in 760CS both Dies # com;#rison. "his shou$d be re$#ted =ith

=or$d s@stem theor@ =here ;o=er is # centr#$ theoretic#$ e$ement %or both m#instre#m #nd

constructiist #;;ro#ches to intern#tion#$ re$#tions theor@. Here both #Drees th#t econom@ o% one

n#tion #s #n im;ort#nt %#ctor. O2+& n#tion =hich =ere considered to be # dee$o;inD countries

in 760 #nd be%ore. Since the@ =ere =ith ;$ent@ o% oi$ resources beinD # ;eri;her#$ countries

the@ oined toDether #nd st#ndinD toDether =ith dee$o;ed n#tions. "he hiDh D#s ;rices $e#d to

O2+& n#tions becominD rich. "his =#s #rDued in the theor@ o% =or$d s@stem theor@.

N'+O beinD s#id to %ocusinD on ;eri;her#$ countries it is sti$$ under dee$o;inD n#tions $ist. "his

both N'+O #nd O2+& both Dies # resu$t to criticiGe =or$d s@stem theor@. "his both Dies #n

eF#m;$e #nd #ns=er to=#rds =or$d s@stem theor@. "his is =h#t h#;;ens =hen ;eri;her#$

countries b#nd toDether. =hich =i$$ $e#d to oerthro= the core countries. "he er@ Dood eF#m;$e

c#n be s#id %rom the #boe th#t ho= domin#nt su;er ;o=er countries tr@ to #cEuire O2+&

countries #nd thus m#int#ininD soci#$ inter#ction or to be seen constructiist ;oint.

15 | P a g e


16/19

But t#?inD N'+O =hich sti$$ the countr@ is DettinD dee$o;ed. 4here#s m#in obectie o% the

;ro;os#$ o% this order is to dee$o; ;eri;her#$ countries but #s # resu$t it is dee$o;ed n#tion

=hich DettinD dee$o;ed more. /#;#n, "#i=#n etc. #re m#or eFce;tion to this theor@. Since these

countries =ithout h#nds o% core n#tion c#me to # Dood ;osition. L#tin Americ# =hich tr#des =ith

+uro;e is sti$$ rem#ins #s under dee$o;ed =here#s #;#n =hich #oided cont#ct =ith +uro;e is

no= # better countr@.

CONCLUSION

B#sed on the rese#rch stud@ on O2+& #nd N'+O #nd ho= it ch#nDes the Deo;o$itic#$ =or$d

order. As s#id in the %irst ;#rt =hich b@ M#c?inder. "h#t is s#id to be true th#t =or$d domin#nt

n#tion #re tr@inD to t#?e contro$ oer the midd$e e#st n#tions in order m#?e other n#tion

de;endent on the su;erior n#tion. O2+& =hich is ch#nDinD the =ho$e Deo;o$itic#$ =or$d order

b@ h#inD cert#in oi$ resources #s s#id e#r$ier the S interention on Midd$e +#st countries is

nothinD but to #ttr#ction b@ the Midd$e +#st countries #nd thus m#?es eer@ other n#tion to

de;endent on the Midd$e +#stern n#tion. Since it h#s the $#rDe oi$ reseres. 'n =hich oi$ m#?es it

to be sensitie interde;endenc@ o% other n#tion to=#rds O2+& n#tion. "his c$e#r$@ st#tes #bout

=h#t is s#id b@ M#c?inder is true. But sti$$ once the reseres in Midd$e +#st countries Det eFtinct

=h#t =i$$ the st#te o% the Midd$e +#st countries =i$$ it be sti$$ #%%ectinD the Deo;o$itic#$ =or$d

order

SuDDestions h#e been m#de th#t in recoDnition o% the $imit#tions o% its ;o=er, the .S. shou$d

#do;t # de%ensie %oreiDn ;o$ic@, Du#r#nteeinD the securit@ o% se$ected it#$ interests r#ther th#n

continuinD the ;re#i$inD ;o$ic@ o% uni$#ter#$ism =hich endorses the use o% ;re-em;tie #tt#c?

str#teDies.

B#sed on the stud@ O2+& n#tions on$@ h#s oi$ reseres #nd considered to be rich countries. Once

the resources in Midd$e +#st countries #re eFtinct it =onJt sti$$ ch#nDe the Deo;o$itics. 't =ou$d

be $e%t undisturbed =ithout interention o% domin#nce ;o=er t#?inD contro$ or h#inD soci#$

inter#ction.

"hen cominD into N'+O this doesnJt ch#nDe the Deo;o$itics o% the =or$d order much. But sti$$ to

# $itt$e eFtent it does. Since the N'+O is %or the third =or$d countries th#t he$;inD h#nd Dien b@

16 | P a g e


17/19

the dee$o;ed countries or core countries. But once the need o% the dee$o;ed n#tion is done it is

$e%t or;h#ned or the dee$o;ed su;er ;o=er sti$$ su;;resses the dee$o;inD n#tion b@ eF;$oitinD

their resources or t#?inD #=#@ the r#= m#teri#$ =hich the ;rocessed r#= m#teri#$ is #D#in used

b@ the ;eri;her#$ countries. MeFico h#inD $#rDe oi$ resources but =ithout the dee$o;ed

industries it is un#b$e to become dee$o;ed. "he S uses MeFico #s resered oi$ resources #nd

MeFico =i$$ in %uture =i$$ ch#nDe the Deo;o$itic#$ #s O2+& no= does. Once the ;eri;her#$

n#tions come in toDether in order to oercome core n#tion un$ess #nd unti$ this scen#rio is

screened ;eri;her#$ =i$$ sti$$ rem#ins ;eri;her#$. &ore =i$$ be core. "here%ore S interention on

O2+& #nd other =or$d countries concentr#tinD on dee$o;inD n#tion #s # N'+O =i$$ on$@ be ti$$

resources #re sti$$ #nd st#b$e. Once the resources #nd r#= m#teri#$ #re eFtinct #nd eF;$oited b@

the dee$o;ed n#tion there #rises # situ#tion $i?e there c#nnot be sti$$ more eF;$oit#tion. "hen

there #rises # situ#tion o% ch#nDinD Deo;o$itic#$ =or$d order. "o conc$ude =ith it do ch#nDes the

Deo;o$itic#$ =or$d order sti$$ it is on$@ ti$$ the resources #re there once i% it is eFtinct there =onJt

be #n@ ch#nDes in the Deo;o$itic#$ order.

17 | P a g e


18/19

R+1+R+N&+

• Bob /esso;, 4h#t 1o$$o=s 1ordismI On the 2eriodiG#tion o% it#$ism #nd its

ReDu$#tion,> in Phases of Capitalist Development: Booms, Crises and Globalizations, ed.

Robert AL Britton et #$. (B#sinDsto?e: 2#$Dr#e, 800),

• /e%%re@ A. H#rt, the ne= intern#tion#$ economic order : &oo;er#tion #nd con%$ict in north

-south +conomic Re$#tions ,76-766(Ne= or? :St. M#rtinCs ;ress, 7!)

• St#te o% the nion Address, /#nu#r@ ! 800 #t

htt;:===.=hitehouse.Done=sre$e#ses80008000!-0.htm$

• N@e. underst#ndinD intern#tion#$ con%$icts - #n introduction to theor@ #nd histor@

• St#te o% the nion Address, /#nu#r@ ! 800 #t

htt;:===.=hitehouse.Done=sre$e#ses80008000!-0.htm$

18 | P a g e

http://www.whitehouse.gov/news/releases/2006/01/20060131-10.htmlhttp://www.whitehouse.gov/news/releases/2006/01/20060131-10.html


19/19

• O2+&: Brie% Histor@ #t htt;:===.o;ec.orDo;ecU=eben#boutUus8.htm ($#st isited

#t 5 Se;tember 805)

• 4HA" 'S "H+ R+LA"'ONSH'2 B+"4++N "H+ N'"+ S"A"+SJ +N+R

2OL'& AN '"S 1OR+'N 2OL'& 'N "H+ M'L+ +AS"I B@ NAN&

A"'+MO

• 2o=er #nd the third =or$d: "o=#rds # re#$ist 2o$itic#$ +conom@ o% North-south Re$#tions

b@ #id L#?e, niersit@ o% $i%orni#, Los AnDe$es.

19 | P a g e
http://www.opec.org/opec_web/en/about_us/24.htm%20(lasthttp://www.opec.org/opec_web/en/about_us/24.htm%20(last

nieo and opec changing geo political order

Documents