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International cooperation. Related Content. Things are different. The global economy has changed dramatically. It has become much more deeply integrated and interdependent. Yet, even though many developing countries have gained from expanding trade and finance, in broad terms, the outcomes are less than desirable. Globalization remains unbalanced and international income inequality has increased further.

At the same time, however, the recent food, fuel and financial crises have been felt globally.

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This is a manifestation of the growing globalization and the degree of interdependence. But there simultaneous occurrence has also made us aware that the factors driving these crises have been closely interconnected.

Trade and finance have been vehicles of expanding human activity, but unfortunately lack of concern for sustainable development has indirectly resulted in environmental degradation. These complexities clearly are more pronounced and hence different from 40 years ago. They also underscore getting to a NIEO not only the more urgent, but also the more challenging.

First , global trade has expanded dramatically, due to a reduction in trade barriers and changing production patterns. While some developing countries — most notably China and East Asian countries — benefited from a gradual exposure to world markets, the more recent emphasis on non-discrimination in the global trade regime has narrowed the policy space for developing countries to conduct industrial policies.