PKU Insight | Rise of the Global South
Aug. 13, 2024
LI MIN/CHINA DAILY
By steadily fostering a sense of identification and solidarity, developing countries are reshaping the international economic order
The rise of countries in the Global South is reshaping the international economic landscape and pushing the profound transformation of the global economic order. This historical process, a representation of the universally beneficial, inclusive and balanced "re-globalization", embodies the economic takeoff of developing countries and the diversification of the global power structure. Against such a background, the countries in the Global South are pushing, in a way that has never been seen before, to form a new economic order that better reflects fairness and win-win efforts.
Data from the International Monetary Fund show that in 2023, the GDP of emerging economies and developing economies accounted for 58.9 percent of the global economy, a 7.6 percent increase after they first surpassed the developed economies in 2008. From 2000 to 2023, the emerging economies and developing economies averaged an economic growth rate of 5.2 percent, 3.3 percentage points higher than the average growth of developed economies. The rapid economic growth in the countries and regions of the Global South has contributed to the diversification of global economic growth and played a major part in boosting the world economy. The Global South, represented by BRICS, is making greater contributions to global economic growth than developed economies represented by the G7. According to statistics, China continued to contribute 30 percent of the world's economic growth in 2023, and will remain the largest contributor over the next five years.
Regarding trade in goods, in 2022, the export and import of goods of developing economies accounted for 45.1 percent and 40.4 percent of the global total respectively, while the proportion of developed economies shrank drastically. In terms of investment, foreign direct investment to developing economies, with a 4.0 percent increase, accounted for 70.8 percent of the world's total FDI. At the same time, to improve the regional consistency in trade and investment policies, developing countries have signed many bilateral, multilateral and regional economic and trade agreements. This has steadily removed the trade and investment barriers among countries of the Global South, given rise to new international trade routes and new models of capital flow, and advanced the depth and breadth of global economic integration.
The huge consumer market in the Global South, with the Chinese market as the locomotive, has been effectively activated, offering new pivots for the global industry and supply chains. The markets of the Global South countries will be connected to create a more open and inclusive business environment, provide high-quality supply to meet the world's new demands, and help optimize the global allocation of resources and production capacity.
Countries in the Global South, sharing a common position, have deepened their cooperation in various forms to enhance their collective discourse power. These countries, upholding true multilateralism, have engaged more actively in reforming the multilateral system. They advocate independent political rights and interests, mutually beneficial cooperation for win-win results, fair and rational rules and regulations, an open and inclusive governance system, and green and sustainable development models. As such, they are sure to play a more important role in global economic development and governance.
As leading representatives of emerging markets and developing economies, BRICS countries made up only 10.4 percent of the global economy in 1980, but the figure shot up to 31 percent in 2020, higher than the proportion of G7. At the 15th BRICS Summit in August 2023, Saudi Arabia, Egypt, the United Arab Emirates, Argentina, Iran, and Ethiopia were invited to become new BRICS members. In January 2024, Saudi Arabia, Egypt, the United Arab Emirates, Iran, and Ethiopia became official members of BRICS, meaning the organization now has 10 members, whose economic aggregate accounts for 36 percent of the global total. The expansion of BRICS has magnified the voice of the Global South countries, reinforced their negotiating capability, given them more power to fight for the right to development in the international system, and enhanced their economic resilience as a whole. By working more closely together, the Global South countries have become the stabilizer of international economic order.
The Global South countries are committed to the people-centered sustainable development enshrined in the UN's 2030 Agenda for Sustainable Development. They played an active part in the 27th session of the Conference of the Parties to the United Nations Framework Convention on Climate Change (COP27) in 2022 and the Group of 77 plus China Summit in 2023, vowing to strengthen unity and collaboration among themselves to jointly cope with the international challenges. In addition to economic benefits, the Global South countries, in their cooperation and development, place more stress on inclusive growth and integration of diversities, shedding new light on the path of global development.
After World War II, the US-led Western countries spearheaded neoliberal globalization. This, however, has evidenced a series of drawbacks and increased the global economic governance deficit. In 2013, China put forward the Belt and Road Initiative and its vision of global governance featuring extensive consultation, joint contribution and shared benefits. Countries in the Global South will have a bigger say in global governance and consequently push the revision of international rules and standards in order to better represent developing countries' appeals and core interests. With their rising national strengths and international influence, those countries have already become a key force in propelling reforms in the global governance system, playing a positive role in climate response, energy governance and many other aspects.
Statistics show that in 2023, China exported 4.91 million automobiles, of which 1.2 million were new energy vehicles, a year-on-year increase of 77.6 percent and marking the ninth consecutive year when Chinese NEV production and sales volume topped the world. NEVs have become a highlight of China's auto industry. China's success in this sector is solid proof that the Global South countries are able to be pioneers in high-tech domains. As the digital, green and inclusive trend of globalization prevails, they will join hands in refining their toolbox of economic policies to bridge the gap in the digital economy and the green and low-carbon economy.
Some Western developed countries have been trying to output a single road of modernization to the world. Now the appearance of the Chinese path to modernization is showing the world that there is more than one way to do that. The Global South countries, based on their cultural traditions, systems and mechanisms, and reality of development, can pursue development paths suiting their own conditions, thus helping create a more diversified and just new order of global development and governance. It is with respect for diversity and inclusiveness that they have risen as a group. In the meantime, they have increased the understanding and support for each other through cultural exchanges and mutual learning, promoting the global exchange and integration of different cultures and laying the cultural foundation for building a more inclusive and equitable world. The Global South will be an indispensable driver of the "re-globalization" process and the mainstay in building a new international economic order.
Wang Dong is a full professor with tenure at School of International Studies of Peking University, and the executive director of the Institute for Global Cooperation and Understanding at Peking University. Gao Dan is a post-doctoral fellow at the School of International Studies at Peking University.
Source:
China Daily
Written by:
WANG DONG and GAO DAN
