in which their interests would be better represented. This call integrated many of the proposals that has been discussed previously at UNCTAD and other world forums.
Specific proposals for changes in the economic system were advanced at the Summit Conference of Non-Aligned Nations held in Algers in September 1973. Following that, the Sixth Special Session of the U.N. General Assembly was called hastily for April 1974. This session adopted, without a vote, a manifesto entitled "Declaration and Program of Action of the New International Order." in December 1974 the General Assembly approved the Charter of Economic Rights and Duties of States.
The NIEO is essentially a 18 clause document that seeks certain changes in the international system that would allow less-developed countries opportunity to build their way out of the never-ending cycle of poverty. Several main clauses stand out.
adoption of an integrated approach to price supports for an entire group of developing country commodity exports;
the indexation of developing country export prices to tie them to rising prices of developed countries’ manufactured exports;
the attainment of official development assistance to reach the target of 0.7 percent of GNP of the developed countries;
The linkage of development aid with the creation of the IMF’s Special Drawing Rights (SDRs);
the negotiated redeployment of some developed countries’ industries to the developing countries;
the lowering of tariffs on the exports of manufactures from the developing countries;
the development of an international food program; and
the establishment of mechanisms for the transfer of technology to developing countries separate from direct capital investment.
The Charter of Economic Rights and Duties of States included two basic and controversial propositions:
it affirmed each state’s full permanent sovereignty over its natural resources and economic activities, which was specifically set out to