Why did the developing countries organised the G-77? Give three reasons.
- THE formation of the New International Economic Order (NIEO) 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 market.
- The developing countries did not benefit from the fast growth of the western economies experienced under the guidance of the World Bank and IMF. Thus, there arose a need for the developing countries to organise themselves into G-77 group to demand a new International Economic Order.
- The formation of the G-77 was a response to certain changes in the international financial system proposed by the Bretton woods conference. The IMF and World Bank (Brettonwoods Twins) were designed to meet the financial requirement of industrial countries. Although there was unprecedented growth in the west and Japan, nothing was done about the poverty and lack of development in the countries which were earlier colonies.