One of the key reasons for the formation of the Non –Aligned Movement was to declare solidarity between nation states with a shared history of oppression and facing similar challenges of technological and economic development. The cold war which became the pretext of this new solidarity also influenced many political and cultural changes in many nation states.

The need for NAM back then during Cold War ushered in with factions dividing the world into two grabbing for power creating a vacuum between US led West and Soviet Union leading the East turning other nations as mere pawns to their own game of power and authority on the global chessboard. However, NAM came into existence bringing a balanced outlook and catering and protecting also while strengthening the developing countries. But in the present where the relevance of NAM has been questioned again and again, Non-Aligned Movement has a very relevant and vital part to play with certain important issues facing the Southern countries on the globe.

The Movement has not only sought a greater role in increasing the assertion of the developing world in the international order, but has also striven for active participation of its member state in international financial institutions, so as to ensure transparency and bridge the divide between the global North and the Global South. One of the major contributions of the Non–Aligned Movement towards this objective is the conceptualizing of the New Economic International Order (NEIO).

Developing countries have lost their growth due to asymmetric global economic order. They have lagged due to technology deficiency, exploitation of their resources by developed countries and ever increasing debt burdens .They have fallen under dependency in under the unequal impact of globalization. Born out of the African-Asian Solidarity Conference held in Bandung, Indonesia, in 1955, the Non-Aligned Movement (NAM), created officially in Belgrade in 1961, allowed the Third World Countries to affirm an autonomous political existence and call for more equitable economic exchanges between North and South.

NAM has co-sponsored a number of resolutions presented by the Group of 77 on issues such as trade and development, cooperation for industrial development, environment and sustainable development, human settlements, population, external debt, food and sustainable agricultural development, an Agenda for Development and renewal of the dialogue on strengthening international economic cooperation for development through partnership. NAM has urged the developing countries to review their development policies in view of the global economic situation. This involves issues like how the global south can rely less on exports to the West and rely more on domestic and regional demand and on South-South trade and investment, and promote a strong role of the state in economic policies, along with devising appropriate policies for industry, agriculture and services, including financial policy in developing countries. NAM has urged the need for South-South coordination and cooperation. As North-South relations go through difficult or tumultuous times, South-South solidarity and action is even more urgent. NAM has a critical role to play in this.

From its inception, the idea of South-South cooperation was very much based on a model of solidarity among developing countries and collective self-reliance through various co-operation agreements to address common development challenges. The emergence of a number of large developing countries as major players on the international stage has brought the question of South-South co-operation to centre-stage once again. South-South ties, be it economic or political, are more important now than they have ever been. But within the broader concept of South-South co-operation, there is also a specific development co-operation dimension. It typically combines aid with investment and enhanced market access opportunities. The southern actors are delivering “expertise and financial support to foster the economic and social welfare of other developing countries”.