Page 30 - Echoes of the Global South V2

geoeconomic ambitions. Balancing relations with these powers while maintaining leadership in Africa presents a
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complex diplomatic challenge.

4.2. Non-Western Actors in a West-dominated Landscape

The Global South is witnessing growing competition between Western powers and emerging non-Western actors,
particularly China, India, and Russia. Both groups of countries are seeking to expand their influence through trade,
investment, and strategic partnerships.

China’s growing influence has raised concerns in the West about the potential for debt dependency and the strategic
implications of Chinese investments. On the other hand, proponents of China’s approach emphasise the tangible
benefits of infrastructure development and argue that China provides an alternative to the conditionality often associated
with Western aid and investment. This competition between China and the West in the Global South is evident in areas
such as telecommunications, where Chinese companies like Huawei have become dominant players, and in resource
extraction, where China’s demand for raw materials has reshaped global commodity markets. The strategic rivalry
between China and the United States, particularly, has implications for the Global South as countries navigate the
complex dynamics of aligning with one power or balancing relations with both.

India has also emerged as a significant player in the Global South, pursuing a strategy of engagement that emphasises
South-South cooperation, regional integration, and economic diplomacy. India’s development partnerships are often
framed as mutually beneficial, with a focus on capacity building and technical assistance. India’s role in the Global South
is particularly prominent in South Asia and Africa. Again, the competition between India and China in the Global South,
particularly in Africa and South Asia, indicates the broader multipolar dynamics reshaping global economic and political
relations. For many countries in the Global South, this competition presents both opportunities and challenges as they
seek to maximise the benefits of engagement with both powers while minimising the risks of dependency on the West.

In response to the growing influence of non-Western actors, Western powers have also sought to strengthen their own
engagement with the Global South. This has involved both reaffirming existing partnerships and exploring new avenues
for cooperation. For example, the European Union’s “Global Gateway” initiative aims to mobilise up to €300 billion in
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investments for infrastructure development in the Global South, positioning it as a counterweight to China’s BRI. In a
similar vein, the US and Japan are pursuing their respective Indo-Pacific strategies for economic cooperation. 80

The increasing geoeconomic competition between Western powers and emerging global actors like China and India
presents a unique opportunity for countries in the Global South to strategically enhance their own positions. By carefully
managing relationships with multiple powerful actors, the Global South can leverage this competition to secure more
favourable terms in trade, investment, and aid agreements and gain greater autonomy in pursuing their national
development goals. Countries in the Global South can use the presence of multiple suitors to negotiate better trade
agreements. For instance, if a Western power offers a trade deal with stringent conditions or less favourable terms, a
Global South country could use the interest of China or another emerging economy as leverage to push for better terms.
By positioning themselves as critical partners in these power dynamics, Global South nations can demand greater
concessions, such as reduced tariffs, more lenient rules of origin, or increased access to technology and markets.

Diversification of investment sources is another way to leverage geoeconomic competition. Rather than relying heavily
on investment from a single country or region, Global South countries can attract investments from diverse partners.
For example, infrastructure projects could be funded by a mix of Chinese capital, Western development funds, and
regional investment from other Global South countries. This diversification not only spreads financial risk but also reduces
dependency on any one external power, giving countries more room to manoeuvre in their policy choices.

78. Daniel F. Runde and Romina Bandura, “U.S. Economic Engagement in Africa: Making Prosper Africa a Reality”, Center for Strategic and International
Studies, April 26, 2019, https://www.csis.org/analysis/us-economic-engagement-africa-making-prosper-africa-reality#:~:text=On%20December%20
13%2C%202018%2C%20the%20Trump%20administration%20launched,other%20nations%20who%20have%20business%20interests%20in%20Africa.
79. “Global Gateway”, International Partnerships, European Commission, https://international-partnerships.ec.europa.eu/policies/global-gateway_
en#:~:text=Global%20Gateway%20aims%20to%20mobilise%20up%20to%20%E2%82%AC300,sector%20to%20leverage%20investments%20for%20
a%20transformational%20impact.
80. Ambar Kumar Ghosh, Debosmita Sarkar, and Anasua Basu Ray Chaudhury, “Security, Economy, and Ecology: Setting Priorities for Cooperation in
the Indo-Pacific,” ORF Special Report No. 184, February 2022, Observer Research Foundation, https://www.orfonline.org/public/uploads/posts/
pdf/20230522170754.pdf

30 ECHOES OF THE GLOBAL SOUTH