BACKGROUND

The past decade has seen a dramatic (-cance of some countries of the South,

&G'*>*7&

Africa. Their rise is part of an ongoing but punctuated process of catch-up growth and development which began with the &' = the second-tier East Asian economies 01`@ 01z@⁰ The recent rise of countries in the South during the last decade has, by contrast been much more widespread, including in Africa, with the anticipation that new growth poles, such as Egypt and Nigeria, will continue ( ( !K

&)*?@@1"

Sustained growth and economic expansion of a number of these countries has been made possible by interrelated factors, includ-ing their growinclud-ing capabilities in manufactur-ing and services, technological investments &'& ( (' ( ( capita incomes and the concomitant growth of domestic demand, these factors have && )(

on both the supply and demand sides of the economy, which have helped to underpin the strong growth performance.

Steady economic growth in these countries has also translated into an increase in South-South cooperation in trade, investment and technology over the past two decades, ena-( ena-(ena-(- ((-ing partners with other develop((-ing countries ?@@@ ! 00 0?" >&

trends of enhanced South-South coopera-tion are in line with the political aspiracoopera-tions ( & ( ) 013@* & ) political initiatives to collectively change the

terms of their engagement in global pro-cesses in an effort to further their !8„ 00" -mal recognition by the global community of the need to support technical cooperation among developing countries.

At that time, however, these countries did %&

structural capacities they now have to sup-port and expand South-South cooperation.

Given the rapid progress made by some developing countries, there has been a re-newed interest in how they could improve cooperation among themselves in trade, investment and technology to further pro-mote growth and to ensure strong gains from the closer integration of the South in the global economy. Growing disappoint-ment in a variety of international forums for trade, technology and development, including the Uruguay Round of trade ne-( ! * ?@0@"*

prompted a revival of interest in South-South cooperation as a means of address-ing critical development issues.

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Population growth in some of the emerg-ing countries, particularly China and India, is another important factor explaining rising South-South trade and investment trends.

Some developing countries, along with their growing economic clout, have widened their ( ' ( ( governance architecture. These are, in part, k (&

development cooperation and assistance.

Recent studies estimate that development assistance from developing countries has (( * (6z_„

?@0@!V>*?@0@"²

In an effort to further their geopolitical as-pirations, newer alliances are also being

The rise of the South…

is part of an ongoing but punctuated process of

catch-up growth and development.

Ongoing South-South cooperation extends

far beyond simple economic linkages.

4 TECHNOLOGY AND INNOVATION REPORT 2012

forged among countries. This is G7> $ G'* &

Federation,^_ India, China and South Africa

$7G#$7*G'&#

$ (& &

platforms for an extended South-South dis-course. These countries, for instance, have &J -ment cooperation with other countries of the South, as evident in their annual

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(& &

growth performance across developing

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gaps, the recent surge in growth in an in-creasing number of developing countries

signals the beginning of a new era in global development, with a shift from a hitherto ! =&"

& !=&=&"

As a result, there is a real potential for a new paradigm for international develop-ment to emerge, which extends the exist-ing boundaries of engagement to include ( & $ &

& !L>" $ & (' ( economic system. Realising that %& ( ( way the global economy is governed, to ) = a burgeoning literature, supported by growing empirical evidence, has already highlighted the potential merits of increas-ing South-South trade and investment.

Box 1.1: A brief history of South-South cooperation

G&(> 0133 J &=& * ?2& #

# && 4 &&

(5^a This Afro-Asian Conference was followed by a much larger initiative by the countries of the South to ( &( =( !#9"* (01`0 J #9 4 ((&

5D (& 4 = 5*

this date remains the strongest statement of South-South cooperation.

G 01z?01zz* < # * #9 <&zz -(& !<=zz"* &( -(&

their efforts to increase technical cooperation among themselves. The General Assembly responded by deciding to establish a )((&& ( (& !>>"‡ & &

D( !D" >>‡ (=

‡ >> ( < #

!D*0112"

701z2* (& V 7 V !7V"

># ( (=& ( ( &

=&(& (& 7V (& ( ( ( !> 01zzQ0zz=0z{"& %& * ( ( *&(>#*

) &

> > ( (>& 01z{ G& # D#( ( !)G#D#"#&*G#D#

J& >>7 = ( (& & G#D# 01z{<

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a O>&%&Š #=#> G&(*?2#0133* QQ++) &( &+O‹

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This signals the beginning of a new era in global development,

with a shift from a hitherto bipolar development dynamic

to a potentially more pluralistic.

5

CHAPTER I : THE IMPORTANCE OF THE SOUTH

Table 1.1: Real GDP growth rates, 1980–2010

1980 1990 2000 2005 2010

Developed countries 0.30 2.65 3.88 2.45 2.66

Developing countries 4.68 3.96 5.78 6.80 7.48

Africa 3.59 2.64 3.46 5.45 3.99

Latin America and the Caribbean 6.31 0.52 4.41 4.58 5.98

Asia 3.63 6.48 6.79 7.87 8.44

East Asia 4.98 5.75 8.11 8.63 9.53

South Asia 0.96 6.51 4.04 8.24 7.14

South-East Asia 6.37 8.33 6.15 5.80 7.99

West Asia 2.93 6.55 6.43 6.86 6.36

& Q >#

Q O &* & # Q #(* G( * G&* 7* 7 !7 &"*9 * *D)*L)V# Q>* D K &X *M(X(!#>"*9!#>"*9(* &X * D > &=V # Q G& &* >* 7 * 9* 9* ( * * L D K &* D * =L * H Z # Q G* 7%* W* X&* L * & D * * ~* & #* # &* # V * &) * ‰ L # > Q #(&* #(& G&* #( * #&*

G* G* G ' * G* G'* > 7* > * >* > * >&*

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9 8*9 * # *(&*D*D(&*D &*X * L&* H < * & * (* &) >

7*&(&*H '& & # QG*L **&#*

'

-4 -2 0 2 4 6 8

1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010

Real GDP growth rate

Developed countries Developing countries

Figure 1.1: Real GDP growth rates of developed and developing countries, 1980–2010 (Per cent)

& Q >#

There is a real potential for a new paradigm for international

develop-ment to emerge.

6 TECHNOLOGY AND INNOVATION REPORT 2012

However, the analysis remains general, and data on some other important issues are

&& ( k )&-tion capabilities in developing countries as a whole.

#()(&*TIR 2012 ar-gues that the time is ripe to move beyond analysing current trends in South-South trade and investment and begin conceptu-'( 8 &=

South cooperation could help address ( (

& & ( ( technological divide so as to promote

in-&' & (' within the developing world as a whole.

B. SOUTH-SOUTH