TRANSFORMATION IN THE WORLD ECONOMY
South-South cooperation and development
Basically speaking, the biggest bottleneck in the development world economy is the unbalanced development of developing countries. Over long time, the unequal distribution of resource wealth and resource result in the vicious cycle of developing countries. Thus, accelerating economic and social development of developing countries is the important way to achieve prosperity of the world. South-South cooperation is now playing an important role in the world economy. Since 1960, to reduce dependency and dominance from Northern powers, some developing countries like China, Brazil, India and South Africa which are known as countries of the global south have exchanged the resources, technology and knowledge. In 1978, the United Nations established the Unit for South-South cooperation to promote south-south trade and collaboration within its agencies. However, the idea of south-south cooperation started to influence the field of development in the late 1990s. One of the main objectives of the cooperation is to strengthen and promote economical cooperation. Some of the areas which these "southern" nations look forward to developing further consist of mutual investment in energy and oil, and a common bank. The trade among developing countries not only lead to capital and technical flow on mutually beneficial areas, and also improve the competitiveness of developing countries through overcoming the trade barriers and condition. Another area that the developing countries intend to see big developments is in the political area. It means that the cooperation will give the countries more political power in the matter of a global arena. Some leaders hope that the cooperation will offer a total freedom in choosing a political system. For example, Hugo Chavez hopes to use the South-South cooperation as a stage to get his message of what he calls "21st Century Socialism" across. China, as a developing country, has committed to the South-South cooperation in the way of providing assistance within its capacity. Shortly after the founding of New China in 1950s, although it’s own financial resources are tight, China provides economic and technical assistance to other developing countries and gradually expand the range of assistance in the late 1970s. The international assistance of China to developing countries makes a lot of benefit in promoting South-South cooperation. This essay starts with reviewing the background of south-south cooperation and the characteristics of the current South-South cooperation. Then it outlines the economic and political dimension of south-south cooperation, particularly in the case of china. Background overview of the south-south cooperation
South-South cooperation refers to operative activities including the economic, political and technical cooperation among developing countries, as most developing countries are located in the southern hemisphere or southern countries in the northern hemisphere. The main contents of South-South cooperation include the promotion of technical cooperation, economic cooperation and commitment to strengthen the infrastructure construction, energy, environment and human resource development etc. south-south cooperation aims to develop self-reliance and to share the knowledge or experience in order to strengthen economic ties among nations whose market forces is more similarly matched than in corresponding North-South relationships. With the process of decolonization, many developing countries lack of trained professionals, experienced managers, skilled personnel and funds after World War II. Throughout the 1950s and 1960s, developing countries are increasingly concerned about its dependence on foreign aid. There is always a gap between the supplier and demander. For example, technologies provided by developed countries are often not suited to conditions in developing countries....
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