Islamic Economic Co-operation in the South-South Context

The past two decades have witnessed great turbulence in the world economy in general and that of the developing countries in particular. Although there are currently signs of recovery, especially in the industrialised economies, many less developed countries (LDCs) are still experiencing the recessionary effects of the 1970s and those which occurred during the early part of the 1980s. If there is one single factor that could be made responsible for this economic turbulence, it was the oil shocks that occurred during the last decade. These economic shocks and turbulence have brought new perspectives and awareness between the developed and the developing countries. While the sharp increase in the oil price during this period has brought new wealth and excessive trade surpluses to the large oil producing countries, it has brought many LDCs into the grip of indebtedness. However the success of the OPEC countries in influencing world oil price, a natural resource that is largely exported to the industrialised countries, brought a new perspective and awareness to LDCs exporting other natural resources. They demand not only a more equitable price for their natural resources and commodities, but a more positive and equal relationship with the industrial countries of the north. This has given birth to the Group of 77, the North—South economic dialogue and the call for the New International Economic Order (NIEO).