Muhammad Bahrul Ulum

The Economic Charter consists of 34 articles and a preamble. It is divided into 4 chapters, i.e.: (a) Fundamentals of International Economic Relations (Article 1); (b) Economic Rights and Duties (Article 2-28); and (c) Common Responsibility towards the International Community (Article 29-30); and (d) Final Provisions (Article 31-34).

The preamble declared the fundamental purpose of the charter is to promote the establishment of the NIEO based on equity, sovereign equality, interdependence, common interest and cooperation among all states, irrespective of their economic and social system. It also emphasizes the need to establish and maintain a just and equitable economic and social order through:

• the achievement of more rational and equitable international relations and the encouragement of structural changes in the world economy;
• the creation of conditions which permit the further expansion of trade and intensification of economic cooperation among all nations;
• the strengthening of economic independence of developing countries; and
• the establishment and promotion of international economic relations taking into account that agreed difference in development of the developing countries and their specific needs.

In respect of fundamental principles, Chapter 1 provides the economic as well as political and other relations among states shall be governed by the following principles:

1. Sovereign territorial integrity and political independence of states;
2. Sovereign equality of all states;
3. Non-aggression;
4. Non-intervention;
5. Mutual and equal benefit;
6. Peaceful co-existence;
7. Equal rights and self-determination of people;
8. Peaceful settlement of disputes;
9. Remedying of injustices which have been brought about by force and which deprive a nation of natural means necessary for its normal development;
10. Fulfillment in good faith of international obligations;
11. Respect for human rights and fundamental freedoms;
12. Non-attempt to seek hegemony and spheres of influence;
13. Promotion of international social justice;
14. International cooperation for development; and
15. Free access to and from sea by land-locked countries within the framework of above principles.

The Economic Rights and Duties of States form the essence of the economic charter, i.e.:

1. Permanent sovereignty over wealth and national resources;
2. Foreign investment;
3. Transnational corporations;
4. Nationalization and expropriation of foreign property;
5. Organization of primary commodity procedures;
6. Transfer of technology;
7. Promotion, expansion and liberalization of the world trade;
8. Utilization of resources freed by effective disarmament measures;
9. Elimination of colonialism, apartheid, racial discrimination, neo-colonialism and restitution and full compensation for exploitation of the national and other resources of the territory affected;
10. Extension of tariff preferences;
11. Most-Favoured-Nation treatment;
12. Indexation of prices; and
13. Common responsibilities in respect of sea-bed.

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