The Challenge of the South

Abstract

The rise of the South poses three broad challenges. The first challenge is for developing countries to seize the momentum for accelerating human development. Nearly all of the fastest-growing economies in this century are in the South, and many have an opportunity to rise from their low rankings on human development. The second challenge is to ensure that South-South trade does not replicate the traditional asymmetric pattern of North-South trade. Trade based on the import of commodities and export of manufactures can set back the industrial ambitions of Africa. The pitfalls of commodity dependence can be avoided through smart government and proven industrial policy - fostering linkages, entrepreneurship and productive capabilities - and a developmental state supportive of human development. The third challenge involves development cooperation. South-South cooperation should expand and complement North-South cooperation. The United Nations can and should make a special effort to enlist the South as a leader on development cooperation.