South-South cooperation Evolving realities, drivers and partners May 2004

1. The past

South-South cooperation In 70s and 80s, S-S an expression of political solidarity and aspiration of developing countries Based on sponsorship of capacity and needs matching exercises, e.g.: TCDC fairs bringing countries together Data collection/dissemination (INRES; now the interactive Web of Information on Development – WIDE) Provision of data on experts, institutional capacities and best practices

South-South cooperation (contd.) Helping establish suitable policy frameworks within government for integrating TCDC in national planning processes Helping establish suitable policy frameworks within government for integrating TCDC in national planning processes Helping establish TCDC focal points in governments; developing institutional arrangements Helping establish TCDC focal points in governments; developing institutional arrangements Moving TCDC exchanges beyond govt-to-govt networks to include private sector, civil society Moving TCDC exchanges beyond govt-to-govt networks to include private sector, civil society New Directions strategy in 1996 involving establishment of pivotal countries, triangular cooperation, &c. New Directions strategy in 1996 involving establishment of pivotal countries, triangular cooperation, &c.

Some limitations of past approaches Cooperation hindered by: Cooperation hindered by: Insufficient differentiation between countries in terms of technologies and expertize limiting mutually beneficial exchanges Insufficient differentiation between countries in terms of technologies and expertize limiting mutually beneficial exchanges Most countries similarly situated in terms of resource endowments and export markets Most countries similarly situated in terms of resource endowments and export markets Lack of communication and transportation linkages Lack of communication and transportation linkages Tension between political aspirations and desire to obtain state of the art technology from the North Tension between political aspirations and desire to obtain state of the art technology from the North Resulted in sporadic, unconnected exchanges with uncertain results Resulted in sporadic, unconnected exchanges with uncertain results

Historical relationships between North and South Emerging 21 st century realities Possible trajectories S-S conceived under conditions of 70s and 80s S-S cooperation can be repurposed for a changing world Seizing on an evolving context

2. The present

No longer monolithic North and monolithic South Developed Countries / Sectors Emerging Least developed Countries / Sectors

Flow in trade, finance, investment and ideas Developed Countries / Sectors Emerging Least developed Countries / Sectors Flow of global trade, finance, investment and ideas mostly within developed countries / sectors Flow of global trade, finance, investment and ideas mostly within developed countries / sectors Limited no. of emerging countries / sectors benefiting Limited no. of emerging countries / sectors benefiting Many least developed countries / sectors not currently benefiting; experiencing reverse development Many least developed countries / sectors not currently benefiting; experiencing reverse development

Emerging responses Important new bodies and alliances, e.g.: Important new bodies and alliances, e.g.: Rise of people-to-people networks, civil society, NGOs Rise of people-to-people networks, civil society, NGOs Sub-regional groups on WTO issues Sub-regional groups on WTO issues Post Cancun: IBSA Post Cancun: IBSA Regional solidarity e.g. African Union, East African Community, SAARC, CARICOM Regional solidarity e.g. African Union, East African Community, SAARC, CARICOM OHRLLS OHRLLS

New Drivers of South-South cooperation for MDGs Advances in education, science and technology in parts of South, allowing beneficial technological transfers Advances in education, science and technology in parts of South, allowing beneficial technological transfers Build up of capacity, experience and knowledge in solving social and economic issues in LDCs, SIDs and land-locked states Build up of capacity, experience and knowledge in solving social and economic issues in LDCs, SIDs and land-locked states Growing experience in meeting challenges of governance (e.g. performance of public administration, delivery of services) Growing experience in meeting challenges of governance (e.g. performance of public administration, delivery of services) Strong growth in some economies, demonstrating potential to respond successfully to new global challenges Strong growth in some economies, demonstrating potential to respond successfully to new global challenges Leapfrogging possible owing to ICT Leapfrogging possible owing to ICT

Emerging Countries / Sectors Improving capacities and experience; some needs Least developed Countries / Sectors Limited capacities, some experience; significant needs Developed Countries / Sectors Established capacities and experience; some needs Summary of capacities, experiences and needs

So what is the objective of South-South cooperation in this changing context?

Developed Countries / Sectors Emerging Countries / Sectors Least developed Countries / Sectors To utilize capacities and experience available in emerging countries / sectors

Developed Countries / Sectors Emerging Countries / Sectors Least developed Countries / Sectors To enable win-win situations for more inclusive globalization, in pursuit of the MDGs

3. Moving forward

From Pivotal Countries to Prime Movers from recent meetings in Hangzhou, China and Marrakech, Morocco Notion of Prime Mover countries developed Notion of Prime Mover countries developed Focus on most pressing development needs, esp. those of least devd countries / sectors Focus on most pressing development needs, esp. those of least devd countries / sectors Channel available and relevant experience in Prime Movers for least devd countries / sectors Channel available and relevant experience in Prime Movers for least devd countries / sectors

From Pivotal Countries to Prime Movers, contd. Partner and pool resources for strategic results, fulfilling mutual interests Partner and pool resources for strategic results, fulfilling mutual interests Particular interest shown by prime movers in Africa (incl. Brazil, China, India, Malaysia and Thailand) Particular interest shown by prime movers in Africa (incl. Brazil, China, India, Malaysia and Thailand) Readiness to formulate scaled-up programme facilitated by Special Unit Readiness to formulate scaled-up programme facilitated by Special Unit

General criteria for programming by the Special Unit for SSC Linked to Millennium Declaration and MDGs Linked to Millennium Declaration and MDGs Benefits 2+ countries; emphasis on LDCs Benefits 2+ countries; emphasis on LDCs Demand driven; using extant and relevant capacity / experience Demand driven; using extant and relevant capacity / experience Builds domestic capacity Builds domestic capacity Based on record of results, lessons learnt Based on record of results, lessons learnt Potential for mobilizing local, national, regional and international resources Potential for mobilizing local, national, regional and international resources Builds on existing mechanisms, where feasible Builds on existing mechanisms, where feasible Facilitation by Special Unit considered essential Facilitation by Special Unit considered essential

S-S cooperation: potential initiatives for 04 & beyond FOCUS POTENTIAL INITIATIVES Governance Awareness building for S-S trade and investment Conflict resolution for a stable public environment Trade and investment Institutionalizing AABF mechanism Global SME network Business environment: banking and vendor development Education Knowledge-based / ICT skills for employment in a global workplace

Food security Post harvest services Food processing Public Health ARVs; pharmaceutical joint ventures Medical services (incl. ultrasound); training Responses to preventable and communicable diseases, incl. NGO solutions Manufacture of disposable medical supplies Peace building Democratic systems DeminingReconstruction S-S cooperation: potential initiatives, contd. FOCUS POTENTIAL INITIATIVES