a new economic order through the non-aligned movement

Author(s): kamal karunanayake

Source: India International Centre Quarterly, Vol. 3, No. 3, Role of Non-alignment in a
Changing World (July 1976), pp. 111-118
Published by: India International Centre
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a new economic order through

the non-aligned movement
kainal

karunanayake

The gradual liquidation

of

gence

two

Power

of the Second

blocs

of the western empires

led

the

by

USA

and

the

last

decades.

during

Asia and

Africa which gained independence

three

USSR

with

Along

under-developed.

the

end

on international

of the

Many

the emer

after

World War had a significant impact

relations

economically

and

in

colonies

during this period were

the

other

under-developed

countries they constituted a group of 81 in 1963. This was an important

in international
factor which tended to change the balance
politics.
or

Equally

more

was

significant

existence

the

of

two

blocs.

power

With their military and economic power, they ventured on a course

of expanding their sphere of influence and authority in various parts
of

the

world.
were

there

of a major

Because

always

confrontation

of the

tation

of

a danger

less

the

between

developed

manner

the power
and
the

the

Middle

they

East

were

powers.
of

On
the

the

arms

and

their

disposal,

destruction

in case

other

exploi

hand

con

nations

advanced

In this situation there were direct and

the economic
and political systems in

could

fall

within

the

created
Heavy

as

a part

strategic

weapons

Korea,

was
to

incurred

bolster

one

of

Berlin
between

of confrontation

expenditure

where there were millions of human

below the poverty line.

of

influence

Centres of tension in Indo-China,

blocs.

contending

production

that

human

them.
by

at

weapons

scale

nations

tinued under neo-colonialism.

indirect attempts to control
such

nuclear

of large

their

on

the

power

beings all over the world living

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112

kamal
was

It

this

against

any

particular

held in New Delhi,

Relations
Nehru

made

Asian

must

go

in this

participated
"a

which

stressed

Questions

build-up

of these

leaders

was

held

the
in

world

countries,

for

the

this

that

in power

is

who
to

necessary

not

working
and

of all

peace

another

was held in Colombo

between

understanding

on

of Asian

covered

by

and

economic

the

the

and

in

coun

nuclear

colonialism,

Subsequently

Conference

fact

Conference,

in Indo-China,

Issues

it

progress

of

discussed.

Bandung

1955.

the

initiative

African

Conference

nat

included
of

emancipation

the

countries.

The

Conference

interference

in the

other's

Asiatic

mutual

anti-colonialism

disarmament,

equal
but

the war
were

Asian

Bandaranaike

that

Prime Ministers
to

the

stated

a continuation

relating

aligned

on

involved

being

also

advantage,
as

tries of the region,

armaments

and

of five Asian

conference
1954.

own

Almost

mankind".

the

accepted

affairs

internal
as

sovereignity
that

it is clear

it set

the

of

principles
of each

other

that were considered

pace

for the

of

respect

When

future

non

coexistence,

and

guidelines.

important

and the issues

those principles
ence,

a Conference

without

together

of free

developing

the late Prime Minister Shri Jawaharlal

conference

federation
for their

merely

third

at

1947,

Our late Prime Minister Mr S. W. R. D.

blocs.

ions

In

statement

important

countries

have

bloc.

power

of the

the dangers of being

countries of the third world realized

to

some

that

background

karunanayake

we

each

examine

by this Confer
move

non-aligned

ment. In fact the very idea of non-aligned with its basic objective of
attaining peace and prosperity for mankind by avoiding harmful con
flicts, is an Asian concept. In this regard the inspiration that many of
Asian leaders derived from the ideas of tolerance and justice in
The Ban
and Buddhism cannot be easily discounted.
Hinduism
Conference

dung

actually
in

movement

aligned

the

paved

the

future.

The

for the

way

growth

of the

meeting

of Yugoslavia, India and Egypt in July 1956 which

of non-aligned
quently and the first Conference
1961

in

created
after

Belgrade

may
the

amongst
the
This

Bandung
was

Mr

Bandaranaike

regarded
developed

as

an

outcome

countries

was held

subse
held in

nations
of the

of Asia

non

of States

awareness
and

Africa

Conference.

a period

ges both politically

be
less

of the

Heads

when

the

world

and economically.
put

it:

"The

world

was

going

through

great

As our late Prime

is in

a state

of change

chan

Minister,
and

flux

today. The world is going through one of those rare occasionsthey

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a new

economic

order

at certain

happen

the

through

a change

intervalsof

113

movement

non-aligned

over

from

one

to

society

another from one civilization to another. We are living today, in fact,

in a period of transition between two civilizations,
the old and the
new. During a period like this, all kinds of conflicts ariseideologi
cal, national,
and

in the

here

and

economic,
these

past
there.

we

Today

all know what it means."

we
so

have

to live

much

that

and

were

rine

He

when

he

afford

when

the

also

said

we

cannot

to sacrifice

prepared

of coexistence."

some

by

in the past,
nice

little

war

for

of war,

luxury

we

He went on to say that "this is an age when

peace or for some other reason.

alignment

settled

cannot

let live,

are

we

That has happened

political.

conflicts

to hate

afford

all

mankind

other

each
name

in the

of

This is the philosophy behind the doct

related

clearly

"that

is why

we

this
do

need

to the

not

for

non
on

ourselves

range

the side of this power bloc or that power bloc.

That is the philoso
of
neutralism."
Hence
in
this
momentous
phy
period of history
the nations that were not committed to any specific power bloc had
a very important role to play in relation to their common economic
and social problems, as well as the destiny of the entire mankind.
In the first instance their non-involvement in the power bloc
politics had a salutary effect on isolating the conflict situation that
were

era.

considerable

world

test

extension

bans.

held

so

on

the

opinion
as

Thirdly,

of

the

war

cold

a result

far

have

they

need

for

of their

of the

post-war

and declarations

in the resolutions

conferences

non-aligned

clear

an

as indicated

Secondly

the

as

about

brought

disarmament

numerical

of
a

create

helped

and

nu
the

strength,

non-a igned countries have been able to yield considerable

influence
on the decision making process in the international
organizations.
Often

the

These

critics

United

Nations

than

conferences

non-aligned

resolutions

passing

passing

forget
had

making

that

even

not

taken

resolutions.

of the

aspirations

formal

also

disarmament

major

to reduce

powers

of China
the

and

forget

earliest

to the

United

demands

grade and Cairo.

tension

non-aligned

even

Nations
made

in

at

various
after

non-aligned

for

the

merely
issues.

various
such

steps

on

major

fact

that

the

as

the

issues
detente

though falling far

agreement

coexistence.

peaceful

on

organization

a step in line with the consistent demands

on

criticized

effective

and SALT

of the

been

declarations

much

They

between the major powers,

short

have

and

countries

was

indirectly

of the non-aligned
Various

steps

areas

and

a long

time,

conferences

the

nations

taken

by

admission

met
held

some
in

of
Bel

The political transition towards a new civilization

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114

kamal

mentioned

Mr Bandaranaike

by the late
But

completion.

the

most

is now in the last stages of

the

important,

karunanayake

economic

is yet

transition,

to begin.
The large majority of the 81 countries that constitute the non
movement

aligned

are

while

average,

the

in

low

comparatively

level

Western

for

average

indicators

as

such

economic

per capita income in Asia, Africa

$ 140, S 165 and $ 345 respectively on the
countries

and

the

of

number

Communist

The social deve

countries stood at $ 1,605 and $ 1,075 respectively.

lopment

of

The

and social advancement.

and Latin America were

patients

doctor

per

and

For example
per teacher also show similar disparities.
the average number of patients per doctor in Asia, Africa and Latin
America was 7,140, 13,420, 1,875 respectively, whereas the average
students

in

number

Western

countries

was

and

775

in

Communist

countries

had

considerable

have

would

human

been

either

was

was $ 580
countries
developed
230 billions in the

that many of these

resources

use from a national

not put to any purposeful

resources

and

natural

it

in 1965

The gross domestic product at factor cost

710.
billion in Socialist countries, $ 1,190 billion in
alone accounting for $ 590 billion) and $
(U.S.
Third World.1
But the irony of the situation is

point

exploited

which

were

of view.
the

by

Such

developed

countries to their advantage or remained unutilized due to the lack

leaders who failed to mobilize
of foresight on the part of national
In

of

consequence
as

serving

countries
a very

for national

enthusiasm

people's

materials

less

to

the

independence.

developed

countries

developed

industrial

for their finished goods still continues

Neo-colonialism

national

after

of

position

raw

markets

changes.

and

reconstruction

former

of

suppliers

and

few

national

the

which

thwarts

levels,

most

at

operates

of less

attempts

the

with
inter

developed

countries to break away from this vicious framework. Their attempts

to

economies

diversify

and

new

adopt

to

approaches

development

have been disrupted as a result of the disruptive international

that

pattern

countries.
countries
terms

favours

During
faced

of trade.

developed
reasons
developing

for

such

the last

balance

of

Pierre

countries

Jalee

few

decades

payments
calls

as

to

terms
influence

exports by their own actions.

of

Hence

from

arising

adverse

extracted

spoils

by

of the Third World.

trade
the

market

developing

many of the Third World

the

this

the

against

problems

from the peoples

adverse

countries

countries

developed

price

was

the
levels

exploitation

inability
of

imports

continued.

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the

The
of

the
and

While

a new

order

economic

the

countries

developed

the

through

on

kept

115

movement

non-aligned

the

increasing

of manufac

prices

tured goods, capital goods and freight charges to cope with inflation,
the

in

less

countries

developed

were

any significant way.

practices
past

by

conferences.

It

in

helpless

of

question

countries

developed

non-aligned

almost

The

had

been

was

found

their

products

trade

discriminatory

discussed
in

at

1970

of the

many
the

that

share

of world trade of the developing

countries had come down from
31 per cent in 1950 to 21 per cent in 1960 and 18 per cent in 1968.2
In the matter of capital flow from developed
countries and inter
national

It has

prevails.

to

agencies

lending

been

noted

that

a worse

countries

developing
US

investments

of

most

countries

developing

that

prove

the

in

bring

far higher return in the Third World than elsewhere.

nce

situation

alone

The experie

net

benefits

from

interests and capital

foreign capital after repatriation of dividends,
is only marginal.
The world food crisis and the oil price hike
further aggravated
the economic
problems of many of the Third
World countries.
With their fast growing populations, the problems
of providing food, employment
and shelter became
increasingly
difficult.

affected
sure

The

economic

tion

has

most

action

to

solve

forum

in

the

or appealing

present
the

made

no

In

avail.

and

detente

without

enter

have

growth

and

The
of the

sufficient

mere

at

decades

into

the

to

for

the

SALT

Big

have

of

been
them

the

agreements,

best

resolutions
would

not

proved

that

had

when

its

decisions

been

to arrive

Powers

en

incep

concerted

common

countries

accept

thus
its

diverted
of

passing

powerful

pressure

had
idea

countries

to arrive

seriously

from

the

Time and again it has

it took

fact

home

World

challenge.

conscience

above

and

problems

bring

Third

help much in this regard.

appeals

to

movement

non-aligned
to

these

of

movement

non-aligned

with

The

rate

higher

conferences

them.

the

meeting

a
The

concerned

at

mentioned

problems

to achieve
freedom.

been

attention

on

adverse

attempts

the

of
at

non

aligned countries has passed resolutions on arms limitations and the

This creates
ending of the cold War, as early as 1961 in Belgrade.
the

impression

that

any

issue

of

importance

will

be

settled

only

when superpowers feel it justified to do.

In the present econo
mic situation can be Third World countries wait and tolerate the
order until the
inequalities and injustices in the world economic
feel it justified to grant a few con
superpowers and rich countries
cessions?
clearly

that

The experience
resolutions,

of the GATT

codes

or

ethics

and UNCTAD

would

hardly

shows very

have

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any

effect

116

kamal

on the attitude of developed

to

countries

developing

kanmanayake

countries, and it will be futile for the

to be

concessions

accept

so

granted

readily

The Third World countries are going through

by the rich countries.
the most difficult times of their history and they can no longer re
main

silent

peaceful

expecting

the

situation

to

wield

to

of richer

conscience

case of the oil

Middle East.

have

They

influence

on

as

effectively,

by oil producing

to

world

then will it be

only

countries

increase

price

improve.

greater

and transport because

production
prick

the

action

joint

take
trade,

to

possible

shown

the

in

of the

countries

The question of achieving this objective should receive pride of

con
of the forthcoming non-aligned
place in the deliberations
and
In fact deliberation
aimed
at promoting peace
ference.
elimination
ing

arms

of

resources

for

The Colombo
to

the

help

ly.

race

should

vital

tasks

Third

be

viewed

from

the

and

social

economic

of

will have to decide

Conference

the

From

the

to assert

countries

World

made

statements

by

development.

on a definite strategy
themselves

economical

of state

heads

many

of releas

angle

who

intend

participating in the Conference, and the topics listed for discussion,

it can be seen that more emphasis will be placed on economic
aspects,
We

have

to

whether

examine

among

cooperation

countries.
countries

non-aligned

other

and

countries through their own initiatives could create a

order in the world, and if so how it could be achiev

Third World
new economic
The

and

solidarity

countries and other developing

non-aligned

ed.

economic

particularly

of 81

membership

present

countries

a large

covering

part

of the globe consists of 1,327 million people. In view of the depleting

resources

in

together

can

the

materials.

are

They

materials

from

valuable

minerals.

Out

content,

nearly

45%,
Crude
94%.3
countries

them.

ore

Petroleum

exploited

This

25%,
made
most

is shown

e.g.

supply

metal

ores

world

taken
for

raw
for

today
and

other

of Iron ore with

world production

the

sources

of supply
of

source

sub-soil,

of

World

source

held

was

production

by

In the case of Antimony ore it was 51-52%,

51.6%,

who

But

major

of the

ore

Copper

60%,
Lead

the

Third

important

the

23%

Third World countries.

Bauxite

very

almost

extractive

metal

the

countries,

developed

constitute

ore

Natural
use

ore

Cobalt

44%,

Zinc

about

21%,

72%,
Tin

Phosphates
of

of these

these

in the low

and

30%
at

prices

percentages

95%,

Chrome

The

resources?

resources

ore

Manganese
concentrates

developed

favourable

of production

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ore

to

of

a new

economic

order

manufactured

looms

only

1964, the

As far back as

World.

was

117

movement

non-aligned

goods in the Third

of cotton

percentage

the

through

whereas

19%

it produced

42%

of cotton in the entire world.

the Third
Even in steel production,
World constituted only 4% of the total production while it was 5%
in the case of primary aluminium.
Hence there is vast potential if
a

common

for production

strategy

and

of markets

control

is adopt

ed to do away with the inequalities that are now prevalent.

Even
in the field of agricultural production,
with their vast land and
water

resources

commercial

to

to

certain

meet

some

of

the

had

extent

by the imperialists

purposes

them

help

which

been

earlier,
food

urgent

for

exploited

will

action

joint

affect

that

problems

Land utilized for agricultural

large sections of their population.
and other purposes
in 1964 in Latin America remained at 26%
of the total, Near East at 69%,
Far East at 36% and Africa at
40%.
The Third World also holds the major suppliers position for a
number of agricultural products consumed by the developed count
ries. They produce nearly 73% of tea in the world, 50% of coffee,
100% of cocoa beans, 98% of bananas and 79% of groundnuts in
the world.
In the field of cotton production the Third World held
in
The total production of natural rubber also
42% and
jute 100%.
comes from the Third World.4
The question of using this strength depends entirely on greater
and understanding between the Third Worid countries.

cooperation
The

new

rich

great deal
an

of

members

economic

force

Some
non-aligned

to be

the

with.

of the initial

steps

movement

this

for

help

so that they can become

financially

reckoned

can

movement

non-aligned

them

in supporting

that

may have to be taken by the

are

purpose

the

of

establishment

machinery to bring about regional and inter-regional cooperation

on economic affairs within the Third World.
Economic
unions,
producer
other

country

natural

ments

for

agreements,

resources,

of

nuclear

nces

improved

poorer

and

conditions

technology,

common

of transnational

wherever

countries.

energies,

catastrophic
cooperation on research and

crisis, regional
the activities

for

investment

stocks to tide over

to share

schemes

cooperative
use

peaceful

joint

necessary
These

measures

legal

land

developing
funds,

joint

Third

such

as

arrange

World

training,

and

buffer

world

food

programmes

frameworks

to

contain

confere

companies,
joint shipping
differential pricing systems to help
should

be

viewed

from

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the

angle

kamat karunanayake

118

Even in individual
of developing self-reliance in the Third World.
countries the objective
at least in the early stages should be self
is wiped off and the new
reliance and sacrifice until neo-colonialism
order takes firm roots so that disparities
economic
power between nations and individuals are minimized.
For

this

there

purpose

be

should

more

of economic

solidarity

amongst

the

Third World countries.

They should be able to adopt a policy of
take
the objectives purely through peaceful
and
and
pursue
give
means

as

a method

of self-preservation.

The

oil-rich

Arab

countries

will have to shoulder a considerable

portion of the responsibility in
a
such
scheme
off
the
get
ground.
They could lead the way
helping
oil
for
prices
by fixing concessionary
supplies and reasonable rates

of interests for capital to the developing countries. In fact a gradual

withdrawal of their investments in the developed world and a shift
towards

other

areas

such investments
present

economic

could

help

the

Third

should not be designed

order

that

the

World

a great

to perpetuate

non-alignment

deal.

But

the ills of the

movement

attempting to change.
NOTES
2.

New York, 1971.

The Third World in World Economy.
Pierre,
Towards
Accelerated
Development.
U.N.,New
York, 1970. pp. 1-3.

3.

Jalee,

4.

Ibid.

1.

Jalee,

Pierre,

op. cit., pp. 41-47.

pp. 23-24.

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pp. 10-11.

is