Question

NAM was considered a ‘third option’ by Third World countries. How did this option benefit their growth during the peak of the Cold War?

Answer 1

During the Cold War, the world was divided into two main power blocs. In this context the Least Developed Countries (LDCs) or the newly decolonised countries of Asia, Africa and Latin America were provided a Third Option in the face of Non-Alignment: countries not joining either of the alliance.

The Third Option benefitted these countries by way of providing them sustainable political and economic development through the New International Economic Order (NIEO) in the following ways:

(i) Control over resources- This new economic order gave the third-world countries, also known as the LDCs, control over their natural resources which were earlier exploited by the developed Western countries.
(ii) Access to Western markets- It allowed LDCs to expand market for their products and gain access to Western markets, making trade more beneficial and favourable for these nations.
(iii) Transfer of technology- It aimed at reducing the cost of technology from the Western countries, so that the poorer countries could develop their economies in a cost-effective manner.
(iv) Active role in international forums- NAM emerged as a powerful economic group and provided the LDCs a greater role and voice in international institutions like the United Nations, etc.