After the Second World War, many parts of the world were still under European colonial rule and It took over two decades for the colonies in Asia and Africa to become free independent nations. When they became free, they faced many other problem such as poverty, lack of resources, etc. Economies and societies were handicapped for being under colonial rule for long periods.

The IMF and the World Bank, often referred to as the Bretton Woods twins, were designed to meet the financial needs of the industrial countries. As most developing countries were not much benefited from the fast economic growth of Western countries, therefore they formed a group called – the Group of 77, (or G-77) in order to catch up the development in advanced industrial countries. G-77 countries is an abbreviation for the group of 77 countries that demanded a new international economic order (NIEO); a system that would give them real control over their natural resources, without being victims of neo-colonialism, that is, a new form of colonialism in trade practiced by the former colonial powers.

The G-77 can be seen as a reaction to the activities of the Bretton Woods twins, because the International Monetary Fund and the World Bank were designed to meet the financial needs of industrial and developed countries, and did nothing for the economic growth of former colonies and developing nations.

They demanded:

(i) A new international economic order (NIEO) with actual control over their natural resources.

(ii) More development assistance.

(iii) Fairer prices for raw materials.

(iv) Better access for their manufactured goods in developed countries’ market.