Another important event is the emergence of the "third world". It has been liberated and has come into its own. It has also organised certain institutional forums to assert itself. One feature is the non-aligned movement, one of the important forces the world has to work with, recognise and accept. We have seen that most of the non-aligned nations are developing countries and belong to the "third world". What have we seen in the last year? Both the special and the General Assembly sessions of the U.N. demonstrated that the "third world" and the peoples of the "third world" are not merely struggling to come into their own but are asserting their rights. They are asking for justice and are also finding out ways and instruments to achieve justice and equity.
These are the basic elements in the international scene today. Of course, there is another reality also which we have to take into account. And that is the very acute economic situation that has overtaken the world in the last two or three years, particularly in the form of inflationary conditions and their effect on the economy of those countries. This is a new reality we have to take into account.
Politico-Economic Matters
There was a reference to "confrontation" between oil-consumers and oil-producers. Naturally India as a developing and a non-aligned country, took a line that even the
oil-producing countries have a certain right as sovereign states to fix the prices of oil, though it certainly would cost us more. We took a principled position and supported it. At the same time, we pointed out to the world that this had a rather harmful effect on our economy. Instead of an approach of confrontation, we can certainly adopt an attitude of co-operation. It is on those lines that we have worked at different international forums. I hope that, with this approach of co-operation it might help us to go ahead.
I have mentioned economic matters because the present economic and monetary problems and economic crisis are a factor in the international scene which will influence policy-making in foreign affairs. You cannot separate economic and political Matters.