South Centre’s Views on South-South Cooperation

The following points were made by the South Centre’s Executive Director Martin Khor at the meeting of the G77 Eminent Personalities Panel in Fiji.

South-South cooperation is basically and qualitatively different from North-South cooperation.  S-S cooperation is based on a voluntary cooperation among equal countries based on the principles of solidarity and mutual benefit.  On the other hand, North-South cooperation (as in aid and trade preferences) is based on historical responsibility and on the differences in economic levels between North and South.   While we promote and advocate South-South cooperation, it cannot be a substitute for N-S cooperation.  S-S cooperation principles and practice should also be a matter for countries of the South to determine.

Areas of S-S cooperation

South-South cooperation can be in a number of areas:  policy coordination in international negotiations, the sharing of experiences and good practices, and concrete South-South programmes and projects.

Policy coordination in international negotiations and affairs

This is important because the developing countries need to unite and have common positions in order to be effective in international negotiations that involve N-S relations.  The G77 has a crucial role in such coordination.  The following are some key areas for the G77 to further develop:

• On trade, the South needs to promote a multilateral trading system that is oriented towards development, with the interests of developing countries in the centre.  The Doha Round negotiations should be revived in this regard, with the focus on effectively reducing agricultural subsidies and high tariffs of developed countries, while recognising the needs of small farmers livelihoods and food security of developing countries;  on  strengthening special and differential treatment and resolving the implementation issues put forward by developing countries;  and giving priority to the needs of LDCs especially in the extension of their transition period in the TRIPS agreement  (as stated in their request) and duty-free quota-free market access.
• On bilateral free trade agreements between developed and developing countries, these should be balanced and oriented to development needs of developing countries, which cannot be  expected to provide reciprocal obligations as trade preferences should be provided to developing countries.  There should also not be obligations on non-trade areas such as investment, services and intellectual property, in ways that are WTO-plus.
• Bilateral investment agreements should be reviewed to ensure that they meet the needs and interests of developing countries.  In particular, there are concerns about the investor-state dispute system and arbitration system that has resulted in legal suits being taken against developing countries by foreign investors, some resulting in hundreds of millions or even billions of dollars of claims.  Developing countries should share experiences in order to take appropriate action in this regard.
• Developing countries should be able to have fair agreements and contracts with transnational companies and foreign investors, including in relation to extraction and development of natural resources, so that due benefits accrue to the developing countries.  Capacity building and advice to developing countries should be developed to enable them to negotiate effectively.
• In various fora where IPR issues are being negotiated, developing countries should coordinate their policies  more effectively to enable a development-oriented international approach and framework.  This includes  further developing a Development Agenda in WIPO, and negotiations in CBD, FAO and WTO.
• Negotiations in sustainable development issues, including the Rio+20 follow up processes such as the SDGs, high level political forum, finance and technology.
• The UN post-2015 development agenda.

S-S cooperation in programmes and sectors

This could be developed further in the following areas:

• S-S trade in a manner that is mutually beneficial to all parties.
• Commodities trade among developing countries, that is more fair and balanced as between consumer and producer countries as compared to N-S commodities trade.
• Also, developing countries should take coordinated action to address speculation in the commodity markets that have caused volatility in prices adversely affecting developing countries.
• S-S investments that are mutually beneficial to all parties, including the local communities.
• Promotion of generic medicines in developing countries, including trade among developing countries and investments including through joint ventures and technology transfer.
• South-South cooperation in mutual benefits in the use of genetic resources and biodiversity.
• S-S cooperation in sharing experiences and assisting one another in climate change and other environmental issues.