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Abstract

The aim of this paper is to study international economic relations and the position of developed and undeveloped countries within them. We will show that existing social-economic order – represented by the neoliberal phase of the capitalist world-economy –unequally treats countries and that it has established institutional framework to maintain that state. This situation condemns certain countries to permanent poverty. The subject will also deal with the criticism of neoliberalism and neoclassical and ricardian philosophy of free markets and a competitive advantage in the context of international trade. Moreover, we will emphasize the fact that neoliberalism causes numerous economic and social inequalities, and that developing countries have a narrowed maneuvering space for an autonomous trade policy, because they are in a subordinate, often neocolonial position.

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