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aim to create larger markets, enhance competitiveness, and attract investment. For example, the AfCFTA, which
became operational in 2021, is expected to significantly boost intra-African trade by reducing tariffs and non-tariff
barriers, fostering economic integration across the continent. Efforts also include significant investments in digital
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infrastructure to improve remote connectivity among countries in the region. Countries like India and China have made
notable progress in building technology hubs and promoting innovation through policies that support research and
development. For example, India’s emergence as a global leader in information technology and software services
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demonstrates the potential for Global South countries to compete in high-tech industries. Additionally, South-
South cooperation, such as technology transfer agreements between emerging economies, is playing an increasingly
important role in advancing technological capabilities across the Global South.

More recently, the impasse at the WTO Doha Round negotiations has stymied the formation of strong coalitions
among developing countries to some extent, especially as protectionist initiatives gain traction across the Global
South. Programs like India’s “Make in India” (2014) and China’s “Made in China 2015” exemplify efforts to consolidate
domestic production, often prioritising national competitiveness over regional integration. From a zero-sum perspective,
these initiatives can limit cooperation as countries increasingly vie to dominate strategic sectors rather than leverage
collective strength. This competition risks fragmenting the Global South’s unified voice on global trade issues, potentially
undermining collaborative efforts to reshape the international trade system to reflect their developmental needs better.

As mentioned earlier, investment in infrastructure development remains essential for overcoming the physical barriers to
economic growth. Major infrastructure projects, often financed through international partnerships and foreign investment,
are underway across the Global South. China’s Belt and Road Initiative (BRI) is a prime example, with infrastructure
projects ranging from ports and railways in Africa to highways and power plants in South Asia. These projects aim to
improve connectivity, reduce transportation costs, and facilitate trade, although they also raise concerns about debt
sustainability and geopolitical influence.

In this light, managing external debt and implementing fiscal reforms to ensure long-term economic stability becomes
critical for countries like Ghana and Rwanda, which have high debt-to-GDP ratios. These countries have undertaken
significant fiscal reforms, including improving tax collection, reducing public debt, and enhancing public financial
management. These reforms have helped stabilise their economies and attract foreign investment. Moreover,
international initiatives such as the G20’s Debt Service Suspension Initiative (DSSI) provide temporary relief to heavily
indebted participating countries, allowing them to allocate resources to critical sectors such as healthcare and
social protection during crises such as the COVID-19 pandemic. Between May 2020 and December 2021, the DSSI
suspended US$12.9 billion in debt-service payments for 48 low- and lower-middle-income countries. 58

56. The African Continental Free Trade Area: Economic and Distributional Effects, World Bank, Washington, D.C., World Bank Group, September 2020, http://
documents.worldbank.org/curated/en/216831595998182418/The-African-Continental-Free-Trade-Area-Economic-and-Distributional-Effects
57. “How India is emerging as the world’s technology and services hub”, EY India, January 27, 2023, https://www.ey.com/en_in/insights/india-at-100/how-
india-is-emerging-as-the-world-s-technology-and-services-hub
58. “Debt Service Suspension Initiative”, World Bank Group, March 10, 2022, https://www.worldbank.org/en/topic/debt/brief/covid-19-debt-service-
suspension-initiative

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