non alignment.pdf

a new economic order through the non-aligned movementAuthor(s): kamal karunanayakeSource: India International Centre Quarterly, Vol. 3, No. 3, Role of Non-alignment in aChanging World (July 1976), pp. 111-118Published by: India International CentreStable URL: http://www.jstor.org/stable/23002011 .Accessed: 15/07/2013 10:48

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a new economic order through the non-aligned movement

kainal karunanayake

The gradual liquidation of the western empires and the emer

gence of two Power blocs led by the USA and USSR after the end

of the Second World War had a significant impact on international relations during the last three decades. Many of the colonies in

Asia and Africa which gained independence during this period were

economically under-developed. Along with the other under-developed

countries they constituted a group of 81 in 1963. This was an important factor which tended to change the balance in international politics. Equally or more significant was the existence of two power blocs.

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. Because of the nuclear weapons at their disposal,

there were always a danger of large scale human destruction in case

of a major confrontation between them. On the other hand exploi

tation of the less developed nations by the advanced nations con

tinued under neo-colonialism. In this situation there were direct and indirect attempts to control the economic and political systems in such a manner that they could fall within the influence of one of

the power blocs. Centres of tension in Indo-China, Korea, Berlin and the Middle East were created as a part of confrontation between

the contending powers. Heavy expenditure was incurred on the

production of arms and strategic weapons to bolster their power

where there were millions of human beings all over the world living below the poverty line.


112 kamal karunanayake

It was against this background that some of the developing

countries of the third world realized the dangers of being aligned to any particular power bloc. In 1947, at a Conference on Asian

Relations held in New Delhi, the late Prime Minister Shri Jawaharlal Nehru made a important statement which stressed the fact that

Asian countries must go together without being involved in power

blocs. Our late Prime Minister Mr S. W. R. D. Bandaranaike who

participated in this conference also stated that it is necessary to

have "a federation of free and equal Asiatic countries, working not

merely for their own advantage, but for the progress and peace of all

mankind". Almost as a continuation of this Conference, another

conference of five Asian Prime Ministers was held in Colombo in 1954. Questions relating to mutual understanding between the coun

tries of the region, the war in Indo-China, colonialism, nuclear armaments build-up were discussed. Subsequently on the initiative

of these leaders the Bandung Conference of Asian and African nat

ions was held in 1955. Issues covered by the Conference included

disarmament, anti-colonialism and economic emancipation of the

third world countries.

The Conference accepted the principles of coexistence, non

interference in the internal affairs of each other and respect of each

other's sovereignity as important guidelines. When we examine

those principles and the issues that were considered by this Confer

ence, it is clear that it set the pace for the future non-aligned move

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 Hinduism and Buddhism cannot be easily discounted. The Ban

dung Conference actually paved the way for the growth of the non

aligned movement in the future. The meeting of the Heads of States

of Yugoslavia, India and Egypt in July 1956 which was held subse

quently and the first Conference of non-aligned nations held in 1961 in Belgrade may be regarded as an outcome of the awareness

created amongst the less developed countries of Asia and Africa

after the Bandung Conference.

This was a period when the world was going through great chan

ges both politically and economically. As our late Prime Minister, Mr Bandaranaike put it: "The world is in a state of change and flux

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


a new economic order through the non-aligned movement 113

happen at certain intervalsof a change over from one society to

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, economic, political. That has happened in the past, and in the past these conflicts were settled by some nice little war

here and there. Today we cannot afford the luxury of war, for we

all know what it means." He went on to say that "this is an age when we have to live and let live, when we cannot afford to hate each other

so much that we are prepared to sacrifice all mankind in the name of

peace or for some other reason. This is the philosophy behind the doct rine of coexistence." He also clearly related this to the need for non

alignment when he said "that is why we do not range ourselves on

the side of this power bloc or that power bloc. That is the philoso phy of neutralism." Hence in this momentous 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 brought about as an extension of the cold war of the post-war

era. Secondly as indicated in the resolutions and declarations of the non-aligned conferences held so far they have helped create a

considerable world opinion on the need for disarmament and nu

clear test bans. Thirdly, as a result of their numerical strength, the

non-a igned countries have been able to yield considerable influence on the decision making process in the international organizations. Often the non-aligned conferences have been criticized for merely

passing resolutions and making declarations on various issues.

These critics forget that even a formal organization such as the

United Nations had not taken much effective steps on major issues

than passing resolutions. They also forget the fact that the detente

between the major powers, and SALT agreement though falling far short of the aspirations of the non-aligned countries was indirectly a step in line with the consistent demands of the non-aligned nations on disarmament and peaceful coexistence. Various steps taken by

major powers to reduce tension in various areas and the admission

of China to the United Nations even after a long time, met some of

the earliest demands made at non-aligned conferences held in Bel

grade and Cairo. The political transition towards a new civilization


114 kamal karunanayake

mentioned by the late Mr Bandaranaike is now in the last stages of completion. But the most important, the economic transition, is yet

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

aligned movement are in a comparatively low level of economic

and social advancement. The per capita income in Asia, Africa and Latin America were $ 140, S 165 and $ 345 respectively on the

average, while the average for Western countries and Communist

countries stood at $ 1,605 and $ 1,075 respectively. The social deve

lopment indicators such as the number of patients per doctor and

students per teacher also show similar disparities. For example the average number of patients per doctor in Asia, Africa and Latin America was 7,140, 13,420, 1,875 respectively, whereas the average number in Western countries was 775 and in Communist it was

710. The gross domestic product at factor cost in 1965 was $ 580 billion in Socialist countries, $ 1,190 billion in developed countries

(U.S. alone accounting for $ 590 billion) and $ 230 billions in the Third World.1 But the irony of the situation is that many of these countries had considerable natural and human resources which were

not put to any purposeful use from a national point of view. Such resources would have been either exploited by the developed

countries to their advantage or remained unutilized due to the lack of foresight on the part of national leaders who failed to mobilize

people's enthusiasm for national reconstruction after independence.

In consequence of the former position of less developed countries

serving as suppliers of raw materials to the developed industrial

countries and markets for their finished goods still continues with a very few changes. Neo-colonialism which operates at the inter

national and national levels, thwarts most attempts of less developed

countries to break away from this vicious framework. Their attempts to diversify economies and adopt new approaches to development

have been disrupted as a result of the disruptive international market

pattern that favours developed countries as against the developing

countries. During the last few decades many of the Third World countries faced balance of payments problems arising from adverse

terms of trade. Pierre Jalee calls this the spoils extracted by the

developed countries from the peoples of the Third World. The reasons for such adverse terms of trade was the inability of the

developing countries to influence the price levels of imports and

exports by their own actions. Hence exploitation continued. While



the developed countries kept on increasing the prices of manufac

tured goods, capital goods and freight charges to cope with inflation, the less developed countries were almost helpless in their products in any significant way. The question of discriminatory trade

practices by developed countries had been discussed at many of the

past non-aligned conferences. It was found in 1970 that the 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 lending agencies to developing countries a worse situation

prevails. It has been noted that US investments alone bring in a

far higher return in the Third World than elsewhere. The experie nce of most developing countries prove that the net benefits from

foreign capital after repatriation of dividends, interests and capital 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. The adverse problems mentioned above have seriously affected attempts to achieve a higher rate of growth and thus en

sure economic freedom. The non-aligned movement from its incep tion has been concerned with these problems and had diverted its

attention at most conferences to bring home the idea of concerted

action to solve them. The Third World countries have the best

forum in the non-aligned movement to arrive at common decisions

on meeting the present challenge. The mere passing of resolutions

or appealing to the conscience of the powerful countries would not

help much in this regard. Time and again it has been proved that

appeals made without sufficient pressure to accept them had been of

no avail. In fact it took decades for the Big Powers to arrive at a

detente and enter into the SALT agreements, when the non

aligned countries has passed resolutions on arms limitations and the

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

inequalities and injustices in the world economic order until the

superpowers and rich countries feel it justified to grant a few con cessions? The experience of the GATT and UNCTAD shows very clearly that resolutions, codes or ethics would hardly have any effect


116 kamal kanmanayake

on the attitude of developed countries, and it will be futile for the

developing countries to accept concessions to be granted so readily

by the rich countries. The Third World countries are going through the most difficult times of their history and they can no longer re main silent expecting the situation to improve. They have to take

peaceful joint action to wield greater influence on world trade,

production and transport because only then will it be possible to

prick the conscience of richer countries effectively, as shown in the

case of the oil price increase by oil producing countries of the Middle East.

The question of achieving this objective should receive pride of

place in the deliberations of the forthcoming non-aligned con ference. In fact deliberation aimed at promoting peace and elimination of arms race should be viewed from the angle of releas

ing resources for the vital tasks of economic and social development.

The Colombo Conference will have to decide on a definite strategy to help the Third World countries to assert themselves economical

ly. From the statements made by many heads of state 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, particularly economic solidarity and cooperation among

non-aligned countries and other developing countries. We have to examine whether non-aligned countries and other

Third World countries through their own initiatives could create a new economic order in the world, and if so how it could be achiev ed. The present membership of 81 countries covering a large part

of the globe consists of 1,327 million people. In view of the depleting resources in the developed countries, the Third World sources taken

together can constitute a very important source of supply for raw

materials. They are almost the major source of supply today for

extractive materials from the sub-soil, e.g. metal ores and other

valuable minerals. Out of the world production of Iron ore with metal content, nearly 23% of the world production was held by

Third World countries. In the case of Antimony ore it was 51-52%, Bauxite 60%, Copper ore 44%, Cobalt ore 72%, Manganese ore

45%, Lead ore 25%, Zinc ore about 21%, Tin concentrates 95%,

Crude Petroleum 51.6%, Natural Phosphates 30% and Chrome ore

94%.3 But who made use of these resources? The developed

countries exploited most of these resources at prices favourable to

them. This is shown in the low percentages of production of



manufactured goods in the Third World. As far back as 1964, the

percentage of cotton looms was only 19% whereas it produced 42% of cotton in the entire world. Even in steel production, the Third 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 strategy for production and control of markets 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 which to a certain extent had been exploited for

commercial purposes by the imperialists earlier, joint action will

help them to meet some of the urgent food problems that affect

large sections of their population. Land utilized for agricultural 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

42% and in jute 100%. The total production of natural rubber also comes from the Third World.4

The question of using this strength depends entirely on greater cooperation and understanding between the Third Worid countries. The new rich members of the non-aligned movement can help a

great deal in supporting them financially so that they can become an economic force to be reckoned with.

Some of the initial steps that may have to be taken by the

non-aligned movement for this purpose are the establishment of

machinery to bring about regional and inter-regional cooperation on economic affairs within the Third World. Economic unions, producer country agreements, joint schemes for developing land and

other natural resources, cooperative investment funds, joint arrange ments for peaceful use of nuclear energies, Third World buffer

stocks to tide over catastrophic conditions such as a world food crisis, regional cooperation on research and training, programmes to share improved technology, common legal frameworks to contain

the activities of transnational companies, joint shipping confere nces and wherever necessary differential pricing systems to help poorer countries. These measures should be viewed from the angle


118 kamat karunanayake

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

power between nations and individuals are minimized. For this purpose there should be more solidarity amongst the

Third World countries. They should be able to adopt a policy of

give and take and pursue the objectives purely through peaceful means as a method of self-preservation. The oil-rich Arab countries

will have to shoulder a considerable portion of the responsibility in

helping such a scheme get off the ground. They could lead the way by fixing concessionary prices for oil 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 could help the Third World a great deal. But

such investments should not be designed to perpetuate the ills of the

present economic order that the non-alignment movement is

attempting to change.

NOTES

1. Jalee, Pierre, The Third World in World Economy. New York, 1971. pp. 10-11. 2. Towards Accelerated Development. U.N.,New York, 1970. pp. 1-3. 3. Jalee, Pierre, op. cit., pp. 41-47.

4. Ibid. pp. 23-24.


Article Contentsp. [111]p. 112p. 113p. 114p. 115p. 116p. 117p. 118

Issue Table of ContentsIndia International Centre Quarterly, Vol. 3, No. 3, Role of Non-alignment in a Changing World (July 1976), pp. i-viii, 1-146Front Matterwelcome speech [pp. v-vii]part i: non-alignment: past present &futurewhat is non-alignment? [pp. 3-7]an introductory statement [pp. 8-12]the role of non-alignment in a changing world [pp. 13-15]the relevance of non-alignment [pp. 16-24]non-alignment: persistence and change [pp. 25-31]the role of non-aligned countries in the present world situation [pp. 32-35]africa in a changing world [pp. 36-46]the major characteristics and dilemmas of non-alignment in contemporary international relations [pp. 47-55]

part ii: non-alignment and international securitydetente and non-alignment [pp. 59-64]china and non-alignment [pp. 65-67]non-alignment and international security [pp. 68-81]

part iii: economic coordinationthe importance of development of economic cooperation [pp. 85-89]some economic aspects of non-alignment [pp. 90-102]non-alignment and economic development [pp. 103-110]a new economic order through the non-aligned movement [pp. 111-118]

part iv: dissemination and understandingnon-alignment: dissemination and understanding [pp. 121-124]the dissemination of information [pp. 125-130]

Appendix i: Reports of discussions [pp. 131-139]Appendix ii: List of participants [pp. 140-145]Back Matter

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