The Evolution of South-South Cooperation: A Personal Reflection

This brief analysis discusses the evolution of South-South cooperation and examines the current practice in this regard and the challenges facing countries of the South that wish to use the mechanism as a means of boosting development assistance, private sector development and trade.

Policy Implications

• Developing countries stand to gain from South-South cooperation in particular when confronting a common problem, even if the countries concerned are at different stages in tackling the problem.
• Because of the growing economic diversity and vast difference in the size of the countries of the South, no standard models of South-South cooperation have emerged. Some of these countries – notably the larger economies – have begun to see South-South cooperation as a component of their foreign and economic policy in their relations with the smaller economies of the South.
• South-South cooperation would seem to be most successful when it focuses on technical cooperation and knowledge transfer rather than more traditional donor-based projects, programmes or budget support.
• For the smaller countries, South-South cooperation is not a substitute for North-South cooperation, but a useful complement for promoting development and trade.