include the right to nationalize foreign property in disregard of existing international laws.
Primary product producers have the right to associate in producers’ cartels and other countries had the duty to refrain from efforts to break these cartels.
No doubt the most important provisions in the program designed to establish the NIEO deal with the management and pricing of at least ten core commodities: cocoa, coffee, tea, sugar, hard fibers, jute, cotton, rubber, copper and tin and seven other commodities with slightly lower priority: bananas, wheat, rice meat, wool iron ore and bauxite. Specifically the objectives of the commodity program were to: (1) reduction of excessive price and supply fluctuations; and (2) establishment and maintenance of commodity prices in which in real terms are equitable to consumers and remunerative to producers.
To achieve these goals, the following integrated measures were proposed: (1) the establishment of international buffer stocks, (2) the creation of a common fund to finance these stocks, (3) the signing of multilateral trade commitments, and (4) the arrangement of improved compensatory financing to stabilize export earnings.
Both of these U.N. documents affix blame for the low incomes in the South on past exploitation under colonialism and neocolonialism. These terms come from the socialist-Marxist literature that define as exploitation commercial activities in which business firms retain any part of net revenue as profits or return to invested capital rather than paying it all in the form of wages to labor employed by the firm. This proposition follows directly from the Marxist proposition that any net income not going to wages, is surplus value. Under colonialism the instruments of exploitation were the colonial administration an under the neo-colonialism they are the modern multinational enterprises.
Confronted by the far-reaching demands for reform of the world’s economic and social systems, the North responded by calling for the Seventh Special Session of the U.N. General Assembly. This session, held in September 1975, was intended to arrive at a North/South compromise, and resulted in the issue of Resolutions 3362, which was adopted by consensus. This resolution basically endorsed the demands for New International Economic Order, the ideas for price indexation, the 0.7 percent aid target, the SDR aid link, and many other provisions originating with the South Coalition. The United States and other Northern delegates attached detailed reservations to the resolution, but its passage represented a symbolic victory for the South. The negotiations leading to the resolution had the main effect of changing slightly the militant tone of the proceeding documents and led to the incorporations of some demands for changes and programs proposed by the United States.