NAM was considered a ‘third option’ by Third World countries. How did this option benefit their growth during the peak of the Cold War ?

(i) The ‘third option’ i.e., not to join either alliance benefitted the growth of Third World countries during the peak of the Cold War. Most of the non-aligned countries were the Least Developed Countries(LDCs). The challenge before them was to be more developed economically and to lift their people out of poverty. Economic development was vital for the independence of these countries. By not joining the either bloc, they got help from both the camps.

(ii) The idea of a New International Economics Order too originated during this period. The United Nation's Conference on Trade and Development (UNCTAD) in its report - Towards a New Trade Policy for Development - proposed a reform of the global trading system which provided LDCs a greater role in international economic institutions and control over their natural resources.

(iii) Gradually the nature of non-alignment changed to give greater importance to economic issues and it became a economic pressure group. Thus, third option — not to join either alliance — benefitted their growth during the peak of the Cold War.