 BY JEROME MWANDA
IDN-InDepthNews Service
NAIROBI (IDN) - Developing nations are faced with huge economic and financial problems and need funds and technical cooperation from Europe and the United States. But this is only one aspect of reality. They have meanwhile acquired a higher profile in world economy and in global decision-making.
Two new reports by the UN Secretary-General underline some critical trends that are often ignored: South-South merchandise trade has grown by an average 13.4 per cent each year since 1995 -- reaching $2.4 trillion, or 20 per cent of world trade, by 2007.
Exports from emerging markets and developing countries have grown to about 40 per cent of overall world total. During the same period, the South-South share of African exports grew by an average of 7 per cent a year, and combined annual African exports to India and China rose to about $40 billion.
The reports state that the total outgoing flows of foreign direct investment (FDI) from developing nations hit record $253 billion in 2007, constituting about one-eighth of the world total. More than 40 per cent of developing-country FDI was invested in the economically vulnerable least developed countries. With developing countries having become increasingly important sources of development assistance, total aid flows could reach $15 billion by 2010, if pledges are met, the reports say.
However, these South-South success stories are leavened by other difficult and destabilizing trends, including sharp economic reversals in many countries during 2008-2009, difficulties in attaining the Millennium Development Goals (MDGs) an increase in the number of malnourished people, expected to exceed 1 billion, and the ominous impacts of climate change.
The reports have been released to coincide with the UN Conference on South-South cooperation in Kenya's capital Nairobi Dec. 1-3.
Described as “the most important United Nations meeting on South-South cooperation in decades”, the conference will highlight growing political and economic ties within the developing world, as countries of the South assume leading roles in decisions on hot global issues ranging from economic recovery to food security and climate change.
Hosted by Kenya the conference will seek to promote and sharpen the benefits of mutual support among developing and transition economies, as well as maintain support for the process from the developed world through “triangular cooperation”, UN officials said.
The Nairobi meeting marks the 30th anniversary of the United Nations Conference on Technical Cooperation among Developing Countries, in Buenos Aires.
Major developments in South-South cooperation date back to the preceding decade. New international agreements that have helped shape world events ever since the 1960s include the formation of the Group of 77 developing countries, the Organization of Petroleum Exporting Countries (OPEC), the Non-Aligned Movement, the Association of Southeast Asian Nations (ASEAN) and the Organization of the Islamic Conference (OIC).
Since 2008, the kinds of discussions on global economic policy once carried out in the relatively exclusive Group of Eight (G8) club of countries are taking place in the more inclusive Group of 20 (G20), and both the Secretary-General and the United Nations General Assembly are driving home the point that the consequences of the economic crisis are felt by another group -- the G192. They point out that all countries feel the effects of the crisis and need to be involved in setting the terms of recovery and reform.
With world hunger growing, 26 developing and developed countries met at the G8 Summit in L’Aquila, Italy, in July, to agree on a forceful and comprehensive action plan on food, backed by commitments for increased official development assistance (ODA) for agriculture. These principles were more widely endorsed by United Nations Member States in November Rome, at the Summit on World Food Security. Though, its decisions turned out to be “toothless”.
Recognizing the complexity of climate change negotiations and the limited time before talks resume this December in Copenhagen, the Secretary-General convened the largest-ever climate change summit during the General Assembly in September. Arriving at a response to perhaps the biggest global challenge of the generation will entail a North-South partnership, and both sides have been taking steps to move closer to agreement.
Underlining the need for South-South cooperation, the nine-page draft of an “outcome document” says that it is an important element of international cooperation for development and offers viable opportunities for poor nations in their “individual and collective pursuit of sustained economic growth and sustainable development”.
In view of the fact that many developing countries continue to face serious economic and financial challenges and are “not on track to achieve the internationally agreed Millennium Development Goals”, South-South cooperation might indeed open up new vistas, the UN document says.
But this kind of cooperation cannot be imposed upon any single or a group of countries. “South-South cooperation and its agenda have to be set by countries of the South and should continue to be guided by the principles of respect for national sovereignty, national ownership and independence, equality, non-conditionality, non-interference in domestic affairs and mutual benefit,” the document adds.
It goes on to say: “We recognize that South-South cooperation takes different and evolving forms, including, inter alia, the sharing of knowledge and experiences, training, technology transfer, financial and monetary cooperation and in-kind contributions.”
South-South cooperation should not be seen as Official Development Assistance (ODA), provided by rich industrial nations as grant or highly concessional loans. Nor should it be regarded as a substitute for North-South cooperation. It is rather a complement to economic, financial and development cooperation between rich industrial and poor and emerging economies.
The document states: “We recognize the value of the increasing support provided by developed countries, international organizations and civil society to developing countries, upon their request, in improving their expertise and national capacities through triangular cooperation mechanisms, including direct support or cost-sharing arrangements, joint research and development projects, third country training programmes and support for South-South centres, as well as by providing the necessary knowledge, experience and resources, so as to assist other developing countries, in accordance with their national development priorities and strategies.”
The document welcomes efforts by multilateral, regional and bilateral financial and development institutions to increase financial resources to promote South-South cooperation, where appropriate, including for the least developed countries and countries with economies in transition. (IDN-InDepthNews/30.11.09)
Copyright © 2009 IDN-InDepthNews Service
External link
http://southsouthconference.org/wp-content/uploads/2009/11/Final-outcome-document-SSC.doc
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