Page 16 - Echoes of the Global South V2

A Global South Perspective on Growth, Trade,
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Investment and Regional Cooperation

Various countries in the Global South have adopted distinct geoeconomic strategies to navigate the complexities of the
global order. These strategies are not monolithic but shaped by each country’s historical context, economic structure,
political aspirations, and geopolitical environment. The region encompasses many countries across continents, each
with its unique economic profile. This diversity is also one of the defining features of the Global South today, as it includes
both emerging economies like China, India, Brazil and South Africa, which have achieved significant economic growth
and global influence, and less developed countries, particularly in sub-Saharan Africa and parts of Southeast Asia, which
continue to struggle with extreme poverty, inequality, and economic instability.

3.1. Regional Variations and Historical Context
Spread primarily across geographical regions, each group of economies have witnessed a divergent growth and
development trajectory shaped by the political economy of their development processes. Asia is home to some of the
world’s fastest-growing economies, such as China and India. These countries have leveraged their large populations,
rapid structural transformations to industry and services, respectively, and the strategic use of technology to achieve
significant economic growth in recent years. Southeast Asia, with nations like Vietnam, Indonesia, and Thailand, has also
seen substantial economic progress driven by export-oriented industrialisation and regional integration initiatives like the
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Association of Southeast Asian Nations (ASEAN). However, the region is also marked by significant disparities, with
countries like Myanmar and Cambodia lagging in political stability and economic development.

Africa presents a stark contrast, with countries like Botswana and South Africa having relatively large and diversified
economies. In contrast, others, such as Chad and Niger, remain heavily dependent on agriculture and natural
resource extraction. The African continent is rich in resources, including minerals, oil, and agricultural land, but many
countries struggle with political instability, inadequate infrastructure, and limited access to global markets. The recent
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implementation of the African Continental Free Trade Area (AfCFTA) aims to enhance economic integration and boost
intra-African trade. However, challenges remain in harmonising policies and overcoming infrastructure deficits. On the
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other hand, the Middle East and North Africa (MENA) region is characterised by significant economic disparities. Oil-
rich Gulf states like Saudi Arabia, the UAE, and Qatar enjoy high per capita incomes and substantial influence in global
energy markets, while countries like Yemen, Syria, and Libya are mired in conflict, resulting in significant economic
disruption. The region’s economic fortunes are closely tied to the global oil market, and efforts to diversify away from oil
dependency, such as Saudi Arabia’s Vision 2030, are underway but face significant challenges. 30

Latin America, with economies like Brazil, Mexico, and Argentina, has experienced recurrent cycles of economic boom
and bust, often linked to fluctuations in global commodity prices.31 Although the region has made strides in reducing
poverty and inequality through social programs and economic reforms, challenges such as political instability, corruption,
and high levels of external debt persist. The region’s reliance on commodity exports, such as oil, minerals, and agricultural
products, makes it vulnerable to global market shifts.

3.2. Economic Landscape in the Global South
The economic landscape across Global South countries varies widely, with some economies heavily reliant on
agriculture, others on manufacturing, and yet others on services and technology. For instance, while India has become
a global leader in information technology and services, Nigeria’s economy is still predominantly based on oil exports,
and Ethiopia remains heavily dependent on agriculture. These structural differences have significant implications for

27. Hal Hill and Jayant Menon, “ASEAN Economic Integration: Features, Fulfillments, Failures and the Future”, ADB Working Paper Series on Regional Economic
Integration No. 69, Asian Development Bank, December 2010, https://www.adb.org/sites/default/files/publication/28551/wp69-hill-menon-asean-
economic-integration.pdf
28. Alexis Habiyaremye, “Natural Resource Abundance: A Hidden Drag on Africa’s Development?” in The Palgrave Handbook of African Political Economy,
Palgrave Handbooks in IPE. Palgrave Macmillan, June 24, 2020, https://doi.org/10.1007/978-3-030-38922-2_38
29. Joe Bavier, “African free trade bloc opens for business, but challenges remain”, World Economic Forum, January 05, 2021, https://www.weforum.
org/agenda/2021/01/african-free-trade-bloc-business-challenges/#:~:text=The%20African%20Continental%20Free%20Trade%20Area%20
%28AfCFTA%29%20began,and%20excessive%20border%20bureaucracy%20will%20not%20disappear%20overnight.
30. Ahmed Galal Ismail, “These 5 megatrends will shape the Gulf and beyond over the next 25 years”, World Economic Forum, April 28, 2024, https://www.
weforum.org/agenda/2024/04/megatrends-shape-arab-world-next-25-years/

16 ECHOES OF THE GLOBAL SOUTH