Tries to alter the rules of the game was further

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tries to alter the rules of the game was further bolstered by the success of OPEC oil-producing developing coun- tries in raising oil prices in 1973. The agenda of the NIEO covered trade, aid, investment, the international monetary and financial system, and institutional reform. Developing countries sought better representation in international economic institutions, a fairer trading system, more aid, the regulation of foreign investment, the protection of eco- nomic sovereignty, and reforms to ensure a more stable and equitable financial and monetary system. A kind of summit diplomacy which also took place in the 1970s was that between North (the industrialized countries) and South (developing countries). These nego- tiations were underpinned by a different kind of thinking and scholarship about IPE. The developing countries' push for reform of the international economic system reflected dependency theory and structuralist theories of inter- national economic relations which highlighted negative aspects ofinterdependence. In particular, these theorists were concerned to identify aspects of the international economy and institutions which impeded the possibili- ties of development in the South. Their central concern was to answer why so many countries within the world- economy remained underdeveloped, in spite of the promises of modernization and global growth. The most sympathetic official 'Northern' answer to these concerns was voiced in the Brandt Report in 1980, the findings of a group of high-level policy-makers who had been asked to examine how and why the international community should respond to the challenges of interdependence and development. The NIEO campaign was unsuccessful for several rea- sons. The United Nations General Assembly (UNGA) was an obvious institution for developing countries to choose in making their case since, unlike the IMF or World Bank, it offers every country one vote. However the UNGA had no power to implement the agenda of the developing countries. Furthermore, although many industrialized countries were sympathetic to the developing countries' case in the 1970s, these governments did not act on the agenda in the 1970s and by the 1980s a new set of gov- ernments with a distinctly less sympathetic ideology had come to power in the United States, the United Kingdom, and Western Germany. The 1980s opened with a shift in US economic policy. In 1979 the US Federal Reserve dramatically raised inter- est rates. This action was taken to stem inflation by con- tracting economic activity in the United States. However, the reverberations in the rest of the world -economy were immediate and extensive. During the 1960s and 1970s US and European policies had facilitated the rapid growth of global capital markets and financial flows. In the 1970s these flows were further buoyed by the investments of oil producers who needed to find outlets for the vast profits made from the oil price rise of 1973. The money found its way to governments in developing countries who were

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