So much of the Global South is Rural too

Global South Needs New Path of Development

GENEVA, Nov 17 (IPS) - The convergence of leading countries from the global South - China, India, Brazil and South Africa, among others - to assist the poorest countries in sub-Saharan Africa and elsewhere constitutes a new "dynamic" in the emerging global economic partnerships, says the United Nations Conference on Trade and Development.

In a report released on Thursday on the poorest countries - often referred to as the least-developed countries (LDCs) - UNCTAD calls for "a new path of development" to break from the "structural maladjustment" policies that led to "boom and bust cycles and growth collapses."

There are currently 48 poorest countries with low per capita income of less than a dollar a day. About two-thirds of LDCs are located in Africa, and all indicators suggest that they are the worst affected by the International Monetary Fund (IMF) and World Bank’s market-oriented policies.

"The neo-liberal policies (fostered by the IMF and World Bank) devastated these countries," says Dr. Supachai Panitchpakdi, UNCTAD’s secretary general. "These policies turned most sub-Saharan African countries from net food producing countries into net food importing countries."

Team leader for the report, Zeljka Kozul-Wright, said that the LDCs are the victims of "structural maladjustment" policies followed over the last 40 years, which resulted in "boom-bust cycles and growth collapses."

"LDCs suffered unstoppable marginalisation, and what we are saying is that if the current trends persist, the LDCs would become major locusts for extreme poverty in the global economy sooner rather than later," cautions Charles Gore, UNCTAD’s chief for the African division, LDCs and special programmes.

"The only way to reverse this trend is to create a new type of catalytic developmental state in the poorest countries with an adequate policy framework that would strive for structural transformation," Gore told IPS.

"South-South cooperation opens up more opportunities and policy space needed to build such a catalytic developmental state," he argued, suggesting that the economic and technical assistance offered by China, Brazil, and India comes without any conditionalities.

He dismissed suggestions that LDCs are merely exporting oil and other vital raw materials to China. Though the report cautions about "commodity-dependence", it also says that there are positive examples where manufactured exports from LDCs to other developing countries increased by 18 percent per annum during the last decade.

Faced with worsening international trading conditions and haemorrhaging economic crisis in the centres of leading industrialised countries, LDCs face major challenges. The only plausible path to stay afloat in these difficult times and sustain their economic growth in the short and medium term is by enhancing their partnership with the Southern champions of economic development, the report says. (END/2011)