Page 18 - Echoes of the Global South V2

b. Trade and Investment
The Global South has become increasingly integrated into global trade networks, with countries like China, India, and
Brazil playing significant roles in international trade. China, in particular, is the world’s largest exporter, with exports
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exceeding US$3.51 trillion in 2023. India and Brazil are also major exporters, with India focusing on services and
technology exports and Brazil on agricultural products like soybeans and beef. 34,35 However, many Global South
countries remain dependent on a narrow range of exports, often raw materials or low-value-added goods, which
limits their ability to benefit fully from global trade. For example, Angola and Nigeria heavily depend on oil exports,
while countries like Zambia and Chile rely on copper. 36,37

Table 3: Direction of trade of low & middle-income economies (% of total merchandise exports), by Regions
(2020)

Exports Imports
Regions
(excluding To low- and To low- and To From low- and From low- and From
high-income middle-income middle-income high-income middle-income middle-income high-income
economies) economies, economies, economies economies, economies, economies
Within region Outside region Within region Outside region

East Asia & 17.8 15.6 66.4 22 13.7 59
Pacific

Europe & 20.8 22.5 55.5 21.1 26 50.7
Central Asia

Latin America 9.9 19.4 70.1 11 28.8 58.2
& Caribbean

Middle East & 5.6 38.6 53.8 4.4 42.2 50.4
North Africa

Sub-Saharan 20.3 31.8 44.2 16.3 36.1 43
Africa

South Asia 7.1 29.1 62 5.1 43.7 49.9

Source: World Development Indicators
Foreign Direct Investment (FDI) flows into the Global South have also been uneven, with countries like China, India,
and Brazil attracting significant investments due to their large markets and growth potential. In contrast, countries
in sub-Saharan Africa and parts of Latin America have struggled to attract sustained FDI, often due to political
instability, inadequate infrastructure, and challenging business environments. More recently, with the region’s
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emerging economies gaining more economic weight, South-South cooperation has also become a significant feature
of investment patterns in the Global South, with countries like China investing heavily in Africa and Latin America.
China’s Belt and Road Initiative (BRI) is a prime example, with billions of dollars invested in infrastructure projects
across the Global South to enhance connectivity and expand China’s influence. The signing of the India-Middle
East-Europe Economic Corridor (IMEC) agreement between India and the US, the UAE, Saudi Arabia, the European
Union (EU), Italy, France, and Germany presents yet another avenue for significant investment flows for infrastructure
development in the region. 39

33. “Exports of goods and services (current US$) – China”, World Development Indicators, World Bank Group, https://data.worldbank.org/indicator/NE.EXP.
GNFS.CD?locations=CN
34. “India’s Services Exports Opportunities and Capabilities”, IBEF Blog, February 03, 2023, https://www.ibef.org/blogs/india-s-services-exports-opportunities-
and-capabilities
35. Constanza Valdes, “Brazil’s Momentum as a Global Agricultural Supplier Faces Headwinds”, Economic Research Service, U.S. Department of Agriculture,
September 27, 2022, https://www.ers.usda.gov/amber-waves/2022/september/brazil-s-momentum-as-a-global-agricultural-supplier-faces-headwinds/
36. Ross Harvey, “Why being endowed with oil is not always a boon: the case of Nigeria and Angola”, The Conversation, February 17, 2021, https://
theconversation.com/why-being-endowed-with-oil-is-not-always-a-boon-the-case-of-nigeria-and-angola-153892
37. Patricio Meller and Anthony Simpasa, “The Role of Copper in Zambia and Chile– Economic and Policy Issues”, Working Paper No. 43, Global Development
Network, June 2011, https://www.researchgate.net/publication/282576562_The_Role_of_Copper_in_Zambia_and_Chile-_Economic_and_Policy_Issues
38. “Foreign direct investment, net inflows (BoP, current US$)”, World Development Indicators, World Bank Group, https://data.worldbank.org/indicator/BX.KLT.
DINV.CD.WD
39. India-Middle East-Europe Economic Corridor (IMEC), https://imeec.in/

18 ECHOES OF THE GLOBAL SOUTH