SINCE 1820 and till the beginning of the 21st
Century, the so-called growing economic gap between the developed world and the developing
countries has not changed its gloomy trend. The mentioned dismal tendency seemed to reverse
only for a few years, during 1950 to 1973.
In the 70s, the two oil-crises that unleashed inflation and reduced growth rates forced
economic theorists and practitioners to look for a new economic policy. This economic
restatement finally resulted in a shift of the pendulum, giving back the priority to the
market forces, which to some extent had surrendered to the public sector since the 30s. This
new economic restatement gave birth to a biased approach of the neoclassical model, which
applied to international and development economics generated the so-called Washington
Against what was promised and expected, the recommended international economic policy did not
ever work in the poorest countries, thus enabling the growing gap to continue. This phenomenon
added to long-lasting unresolved international political problems along with the consciousness
of constant neglect by the rich countries, has unleashed severe frustrations and in some cases
induced the appearance of international terrorism. In our view, the policies of continuous
insufficient international economic co-operation and biased trade negotiations with LDC, and
the unfocused and somewhat over-done reactions to eliminate terrorism as practised in the last
two years by western leadership, are doomed to fail.
According to our interpretation of recent history, if the society of nations wants to solve
the current economic and political problems for reaching global peace and security in
consistency with sustainable prosperity for all, it will have to increase, pool and reshuffle
international public transfers to poor countries. And this should be done while implementing
necessary reforms in international economic policies according to a rational sequencing of
application (first co-operation, then trade and private financial liberalisation).
At the same time a political reorganisation of the UN and its economic agencies is urgent,
since these institutions are asymmetric in decision -making, and rather operating in the
interest of the powerful, thus holding back the application of efficient economic means to
reach global stability.