adopted by the UN General Assembly: “the Declaration on the Establishment of a New
International Economic Order”(resolution 3201 (S-VI) (referred hereinafter to as “the
declaration”) and “the Programme of Action on the Establishment of a New International
Economic Order”(resolution3202 (S-VI)).
The declaration emphasizesthe need for “active, full and equal”participation of all states
in the “formulation and application of all decisions that concern the international
community”(resolution 3201, par. 3). It also afﬁrms the need to enhance the voice and
participation of developing countries in international economic decision-making and norm-
setting. The realization of this new economic order is founded on the full respect of the
principle of equitableeconomic governance as explicitly stated in the declaration(Resolution
3201, par. 4).
In the context of international ﬁnancial regulations (IFRs), the declaration of NIEO
coincides with the collapse of the Bretton Wood’sﬁxed exchange rate that marked the
emergence of a new ﬁnancial system and regulatory developments (Giovanoli, 2000). After
43 years of the collapse of the BrettonWood’s system, the regulation of international ﬁnance
is now dictated by scattered bodies with a varying representation and legal status. The
present paper examines this period to reﬂect on the success or failings of the notion
equitable economicgovernance in the global ﬁnancial regulatory system.
Our analysis sheds light on differentaspects that are important with respect to equitable
economic governance. In broader terms, our assessment shows that the notion of equitable
economic governance as envisioned by the NIEO appears to have been largely ignored by
the global ﬁnancial regulatorysystem. The reforms made over the years concerning the idea
that the global ﬁnancial regulatory system needs to be structured to enhance the voice and
participationof developing countries is still superﬁcial rather than practical.
The discussion in the upcoming sections, therefore, proceeds as follows. Section 2
discusses the UN resolutions proclaiming the “New International Economic Order”.Italso
brieﬂy surveys the support or opposition expressed by different countries during the
adoption process. Section3 explores the global ﬁnancial regulatory system that has emerged
since the declaration of NIEO. Section 4 provides a critical analysis of informal networks
relevant in the regulatory architecture of global ﬁnance from a vantage of equitable
economic governance. Section 5 analyzes whether the idea of “equitable economic
governance”itself is still a relevant notion to the current diverging economic realities and
structure of ﬁnancial markets.Section 6 draws conclusions.
2. The New International Economic Order
The economic order in the aftermath of WWII represented by the International Monetary
Fund (IMF), the World Bank (WB), and the GATT and completely dominated by a minority
of developed states was considered inequitable when evaluated through the new global
economic and political realities that emerged in the late 1960s and early 1970s (Mahiou,
2011). The system was essentiallydesigned at a time when most of the developing countries
did not even exist as sovereign states. For the majority of states emerging from
decolonization, it was less attractive to advance ideas of equitable representation in
internationaleconomic decision-making and norm-setting.
Accordingly, new claims of equitable economic governance started to emerge with the
establishment of the G-77 in the mid-1960s(Chatterjee, 1991). A huge stride is taken in this
regard when a “New International EconomicOrder”(referred hereinafter to as “NIEO”) was
heralded in 1974 following two resolutions adopted by the UN General Assembly: “the
Declaration on the Establishment of a New InternationalEconomic Order”(resolution 3201
(S-VI) and “the Programme of Actionon the Establishment of a New International Economic