Mohammed Saqib, COGGS
[ Synopsis: The Global South shares common challenges related to economic development, social inequality, and geopolitical positioning. Regional cooperation among the Global South countries has been recognised as a crucial strategy for addressing these shared challenges and promoting sustainable development. However, cooperation among the countries of the Global South faces numerous obstacles.]
Over the years, successful regional initiatives have achieved remarkable gains in economic, political, and sustainable development. Consequently, regional cooperation has emerged as a crucial strategy for the Global South nations to tackle common challenges, harness their collective strengths, and accelerate socio-economic progress. This approach has gained momentum in recent years owing to the growing global realisation that global issues are interconnected and cooperative action can generate mutual benefits. The developing countries are increasingly looking towards regional partnerships to address complex challenges and exploit growth opportunities in the context of rapid globalisation, climate change, and economic interdependence.
It is a departure from traditional development models emphasising North-South cooperation and bilateral aid relationships. Instead, it focuses on South-South cooperation through collective action among nations facing similar developmental obstacles. These could range from formal economic integration/trade agreements to shared infrastructure projects, including joint resource management or harmonised policy responses to transnational issues within a region. These initiatives include agriculture, energy, education, health care, and environmental protection. By combining resources, expertise, and political willpower, countries in the Global South can achieve economies of scale, thus enhancing their bargaining power at the global level and devising more effective ways of dealing with common problems.
In addition to ensuring economic growth and social progress, it also enhances stability and security at regional levels due to increased interdependency or shared prosperity among states involved. It further serves as a platform for knowledge exchange whereby countries learn from each other’s experiences and best practices (Foster et al., 2018). In some cases, solutions that work in developed economies may not be suitable for developing ones directly.
Advantages of Regional Cooperation
The positive outcomes of this form of partnership include enhanced trade conditions between regions, leading to greater economic stability and political sovereignty, as well as improved prospects for achieving ecological sustainability (OAU/AU).
Economic Attractiveness
One key economic advantage of regional cooperation is the possibility of increasing intra-regional trade. According to the United Nations Conference on Trade and Development (UNCTAD), intra-regional exports among developing countries increased from 42% in 2006 to 52% in 2018 (UNCTAD, 2019). This shows that South-South trade is becoming more critical. When ASEAN implemented the ASEAN Free Trade Area (AFTA) in 1992, there has been a remarkable increase in intra-ASEAN trade. Between 1993 and 2020, the ASEAN Secretariat put its total trade at $2.8 trillion, increasing from $123.1 billion in intra-ASEAN trade.
Regional cooperation can also increase the appeal of member states for foreign direct investment (FDI). It is observed that the larger markets and harmonising regulations attract more FDI into regional blocs. In Latin America, for example, ECLAC notes that “regional integration efforts” have influenced FDI inflows, as the region received $160.7 billion in FDI inflows in 2019 (ECLAC, 2020).
Cooperation can also boost the economy to protect it from external shocks. Regional integration is another important factor in helping African economies cope with global financial crises (AfDB, 2019). For example, African countries with closer regional ties had less severe economic contractions during the 2008 global financial crisis (AfDB, 2019).
Political Stability and Security
Regional organisations often provide mechanisms for peaceful conflict resolution among member states. One of these frameworks is the African Peace and Security Architecture (APSA) developed by the African Union (AU), which includes conflict prevention, management, and resolution mechanisms. As a result of APSA’s contribution, there has been a reduction in interstate conflicts across Africa, from 16 armed conflicts in 2002 to only seven in 2019 (SIPRI, 2020).
Democratic norms and good governance are often enforced through regional bodies. For instance, the Organization of American States (OAS) has played a crucial role in supporting democratic processes all over Latin America. In developing countries, participation within such organisations increases the chances of democratic transition and consolidation, according to Pevehouse’s study cited by Brooks et al. (2005:727).
The collective security capabilities are enhanced by regional cooperation. Terrorism and drug trafficking have forced several Central Asian countries’ governments into joint military exercises as well as intelligence sharing through the Shanghai Cooperation Organisation (SIPRI). UNODC (2019) has reported that such collaboration led to a 17% increase in drug seizures between the years 2014-18.
Sustainable Development
Regional cooperation is required to tackle cross-border environmental issues. The Association of Southeast Asian Nations (ASEAN) has implemented the ASEAN Agreement on Transboundary Haze Pollution against forest fires and haze since its establishment in 2003, leading to a 36% decline in hotspots regionally, according to the ASEAN Secretariat (2020).
Climate change responses could be better managed at the regional level. A good example is the Caribbean Community Climate Change Centre (CCCCC), which has played a significant role in devising climate change strategies for the region. In the Caribbean, coordinated regional action can reduce costs of climate adaptation by up to 25% compared to country approaches, according to the World Bank (2018).
Cooperation makes it possible to manage shared natural resources efficiently. This river basin organisation has coordinated sustainable development and management of the Mekong River Basin, including several Southeast Asian countries, such as Lao PDR, Cambodia, Vietnam, and Thailand. As a result of these efforts, fish stocks increased by 12% and water quality improved by about 15% between 2010 and 20 (MRC, 2021).
Regional power pools and energy cooperation can ensure energy security and promote renewable energy uptake. For instance, the Southern African Power Pool (SAPP), which facilitated electricity trading among southern African countries, increased the region’s renewable energy capacity by 22% from 2015 to 2020 (International Renewable Energy Agency, 2021).
Obstacles to Regional Collaboration and Solutions
Economic Inequalities
One of the major hurdles in regional cooperation is economic inequalities among member countries that may stall cooperation. Rich countries might be hesitant to share their resources with others or open up their markets because they fear economic losses. For example, within the East African Community (EAC), Kenya’s GDP per capita is almost twice as much as Tanzania’s and four times higher than it is for Burundi’s (World Bank, 2022), which puts trade discussions into tension.
A possible way to subvert this inequality problem in regional cooperation is to implement asymmetric integration strategies that allow less developed countries more time to adapt to regional policies. The ASEAN-minus-X formula, which gives space for some members to temporarily opt out of certain economic initiatives, has been useful in managing disparities (Asian Development Bank, 2019).
Political Stability and Conflicts
Political instability or conflicts at the country level can derail regional efforts to promote cooperation. An ongoing conflict in South Sudan, for instance, has impeded the progress of the Intergovernmental Authority on Development (IGAD) in eastern Africa.
Strengthening regional capacities for resolving conflicts and their peacekeeping abilities will mean greater gains. Economic Community of West African States (ECOWAS) successfully intervened in several conflicts, such as The Gambia’s 2017 case, thus showcasing how regional bodies can ensure stability (International Crisis Group, 2019).
Weak Organisational Capacity
Numerous organisations in the global south regions lack sufficient institutional frameworks and means to enforce these. South Asian Association for Regional Cooperation (SAARC) has not succeeded due to poor institutions implementing most of its initiatives. Enhancing institutional capacity requires investment in capacity-building activities targeting regional institutions while creating clear rules that can be implemented and enforced at all times. The African Union’s reform process, which commenced in 2016, seeks to increase the organisation’s effectiveness and efficiency (African Union, 2020).
Sovereignty Concerns
Countries might feel challenged to surrender their decision-making powers to regional bodies because of fears about loss of sovereignty. For instance, Mercosur has faced a problem deepening its integration among South American countries due to the member states’ unwillingness to give up their economic policy autonomy.
A practical solution involves adopting a flexible approach to integration that respects national sovereignty while promoting cooperation. The Pacific Alliance has been successfully pragmatic and business-oriented, thus making strides in areas like trade and investment without compromising members’ autonomy (Inter-American Development Bank, 2018).
External Influence
Global South regional cooperation must take into account external influences. For example, individual agreements between China and some ASEAN countries sometimes complicate ASEAN’s collective bargaining position. It is important to formulate joint strategies for dealing with outside powers to solve this. The African Continental Free Trade Area (AfCFTA) is a good step towards strengthening Africa’s collective bargaining power in global trade negotiations (United Nations Economic Commission for Africa, 2021).
Infrastructure and Connectivity Gaps
Poor physical and digital infrastructure can significantly hinder the actualisation of regional cooperation initiatives. For instance, inadequate transport linkages in Central Asia have significantly limited the potential for intra-regional trade within the Central Asia Regional Economic Cooperation (CAREC) Program. Regional infrastructure projects must be prioritised while multilateral development banks’ funding capacities are tapped. To bridge the continent’s infrastructure gap, the African Development Bank supported the Programme for Infrastructure Development in Africa (PIDA) (African Development Bank, 2020).
Public Support Inadequacy
Limited public awareness and support for regional integration sometimes impede the political will to collaborate. For example, the low voter turnout in East African Legislative Assembly elections shows little public engagement with EAC. To address this, it is crucial to increase the level of education and public outreach about the benefits of regional cooperation. This program has helped create a regional identity through student exchanges that could be replicated in other regions (European Commission, 2019).
These challenges underscore how complicated regional cooperation can be in the Global South; however, potential solutions show that these hurdles can be crossed given political willingness, innovative approaches, and sustained efforts. Successful regional cooperation must be multidimensional since it covers economic, political, and social aspects while still being flexible enough to accommodate the specificities of different regions.
Conclusion
Regional cooperation in the Global South has proven to be a powerful catalyst for development, ensuring economic growth, political stability, and sustainable progress. The benefits of this collaborative approach are manifold, including increased intra-regional trade, improved foreign direct investment attractiveness, enhanced conflict resolution mechanisms, and more efficient management of shared natural resources. However, various obstacles persist, such as economic inequalities, political instability, weak institutional capacity, sovereignty concerns, external influence, infrastructure gaps, and insufficient public support.
Several recommendations can be made to overcome these challenges and fully harness the potential of regional cooperation. Firstly, implementing asymmetric integration strategies can help mitigate economic disparities among member countries. Secondly, strengthening regional conflict resolution and peacekeeping capacities is essential for maintaining political stability. Thirdly, investing in the institutional capacity of regional organisations can improve their effectiveness and efficiency. Fourthly, adopting a flexible approach to integration that respects national sovereignty can alleviate concerns about the loss of decision-making power.
Moreover, formulating joint strategies for dealing with external powers can help safeguard the interests of regional blocs. Prioritising regional infrastructure projects and tapping into multilateral development banks’ funding capacities can help bridge infrastructure gaps. Finally, enhancing public education and outreach regarding the benefits of regional cooperation can cultivate stronger public support and greater engagement with these initiatives.
Regional cooperation does not solve all the development challenges. However, in an increasingly interconnected world, regional cooperation is a vital strategy for countries in the Global South to address common challenges and leverage their collective strengths. To more effectively pursue their development objectives and establish their positions within the global economy, countries need to pool resources, harmonize policies, and present united fronts. Therefore, leaders in the Global South should build upon existing achievements, learn from past mistakes, and deepen their commitment to regional integration for the benefit of their people and the global community.
[Annexure]
Successful Regional Cooperation Initiatives
The examples below demonstrate successful regional cooperation in the Global South. They underscore the importance of political will, practical approaches, and institutional frameworks in realising the success of regional cooperation initiatives. Although challenges persist, these initiatives offer valuable insights to advance regional integration efforts worldwide.
-
- ASEAN Economic Community (AEC) Launched in 2015, the AEC aims to create a single market and production base within Southeast Asia.
Key Achievements:
- Intra-ASEAN trade increased from $498 billion in 2015 to $598 billion in 2019 (ASEAN Secretariat, 2020).
- Tariffs on 98.6% of intra-ASEAN trade items have been eliminated (ASEAN Secretariat, 2021).
Success Factors:
a) Gradual, phased approach to integration
b) Flexible consensus-based decision-making (“ASEAN Way”)
c) Strong institutional framework with regular high-level meetings
d) Focus on practical, achievable goals
- African Continental Free Trade Area (AfCFTA) Operational since January 2021, AfCFTA aims to create a single continental market for goods and services.
Key Achievements:
- Potential to increase intra-African trade by 52.3% (UNECA, 2021).
- Expected to lift 30 million people from extreme poverty (World Bank, 2020).
Success Factors:
a) Strong political will and leadership from the African Union
b) Inclusive negotiation process involving all African countries
c) Comprehensive scope covering goods, services, and digital trade
d) Built-in mechanisms for dispute resolution and monitoring
- Mercosur (Southern Common Market) Established in 1991, Mercosur is an economic and political bloc in South America.
Key Achievements:
- Intra-bloc trade increased from $4 billion in 1990 to $42 billion in 2019 (IADB, 2020).
- Successfully negotiated trade agreements with the EU and EFTA.
Success Factors:
a) Shared historical and cultural ties among member states
b) Initial focus on trade liberalisation before expanding to other areas
c) Establishment of dispute resolution mechanisms
d) Creation of Mercosur Parliament to enhance political integration
- Caribbean Community (CARICOM) Single Market and Economy: Launched in 2006, CARICOM aims to integrate the economies of its member states.
Key Achievements:
- Intra-regional trade in goods increased by 13% between 2006 and 2016 (CARICOM Secretariat, 2018).
- Successful implementation of free movement for certain categories of skilled workers.
Success Factors:
a) Strong focus on capacity building for member states
b) Development of regional institutions like the Caribbean Court of Justice
c) Emphasis on functional cooperation in areas like health and education
d) Regular engagement with the Caribbean diaspora
- Greater Mekong Subregion (GMS) Economic Cooperation Program
Initiated in 1992 by the Asian Development Bank, the GMS program focuses on infrastructure development and economic corridors.
Key Achievements:
- Completion of over 100 infrastructure projects worth $27 billion (ADB, 2021).
- Cross-border power trade increased from 2,493 GWh in 2010 to 75,738 GWh in 2020 (ADB, 2021).
Success Factors:
a) Clear focus on infrastructure and connectivity
b) Strong support from multilateral institutions (especially ADB)
c) Pragmatic, project-based approach
d) Regular high-level meetings to maintain political momentum
- Pacific Alliance: Formed in 2011, the Pacific Alliance aims to promote free trade and economic integration among its Latin American members.
Key Achievements:
- Elimination of 92% of tariffs among member countries (Pacific Alliance, 2020).
- Creation of the Integrated Latin American Market (MILA), merging the stock exchanges of member countries.
Success Factors:
a) Shared commitment to open markets and free trade
b) Focus on practical, business-oriented initiatives
c) Outward-looking approach, seeking engagement with Asia-Pacific
d) Streamlined decision-making process
[Mohammed Saqib is an Economist and Convenor, COGGS]
