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Principle 2: Promoting Regional Cooperation and Integration

Principle 2.1 Strengthening Regional Institutions
Regional cooperation is vital for addressing shared challenges and enhancing the Global South’s collective bargaining
power in international forums. Strengthening regional institutions and frameworks can foster greater economic integration,
political collaboration, and security cooperation.
a. Capacity Building for Regional Organizations: Invest in capacity building for regional organisations such as
the African Union (AU), ASEAN, and the Community of Latin American and Caribbean States (CELAC). Enhancing
their technical and financial capacities will enable them to play a more effective role in regional governance and
development.
b. Harmonisation of Policies and Regulations: Promote the harmonisation of policies and regulations within
regional blocs to facilitate trade, investment, and the movement of people. The European Union’s success in
creating a single market can serve as a model for regional integration efforts in the Global South.
c. Regional Dispute Resolution Mechanisms: Develop and strengthen regional dispute resolution mechanisms
to address conflicts and trade disputes within regional blocs. Effective dispute-resolution systems are essential for
maintaining trust and cooperation among member states.

Principle 2.2 Facilitating Intra-Regional Trade and Investment
Intra-regional trade and investment are crucial for economic growth and development in the Global South. By reducing
trade barriers, improving infrastructure, and fostering regional value chains, Global South countries can enhance their
economic integration and create new growth opportunities.
a. Reduction of Tariffs and Non-Tariff Barriers: Work towards reducing or eliminating tariffs and non-tariff barriers
within regional blocs. The AfCFTA, for example, aims to eliminate tariffs on 90 percent of goods traded within Africa,
which could significantly boost intra-African trade.
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b. Development of Regional Infrastructure: Invest in regional infrastructure projects that improve connectivity and
facilitate trade. Projects such as the Trans-African Highway Network and the ASEAN Power Grid are examples of
initiatives that enhance regional integration through improved transportation and energy infrastructure. 90,91
c. Promotion of Regional Value Chains: Encourage the development of regional value chains that enable countries
to specialise in different stages of production. This approach can help countries move up the value chain and create
jobs, particularly in manufacturing and agribusiness.

Principle 3: Leveraging Technological Advancements

Principle 3.1 Bridging the Digital Divide
The digital divide remains a significant challenge for many Global South countries, limiting their ability to participate
in the global digital economy. Bridging this divide requires investments in digital infrastructure, digital literacy, and the
development of local technology ecosystems.
a. Digital Infrastructure Investments: Prioritize investments in broadband infrastructure, particularly in underserved
rural areas. Public-private partnerships can be vital to expanding internet access and improving digital connectivity.
b. Digital Literacy and Skills Development: Implement national programs to improve digital literacy and skills,
particularly among young people and marginalised communities. Initiatives such as India’s Digital India campaign
offer a framework for other countries to emulate.
c. Support for Tech Startups: Foster the growth of local tech startups through access to finance, incubators, and
accelerators. Governments can provide incentives for innovation and entrepreneurship, as seen in countries like
Nigeria and Kenya, which have vibrant tech ecosystems.

89. 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
90. Håvar Bauck, “Trans-African infrastructure: a vital tool to ignite tourism and trade”, The Exchange: Africa’s Investment Gateway, https://theexchange.africa/
opinion/trans-african-highway-a-vital-tool-to-ignite-tourism-and-trade/
91. Sharon Seah and Mirza Sadaqat Huda, “Connectivity and Resilience in the ASEAN Power Grid 2.0 under Laos’ ASEAN Chairmanship”, Fulcrum Analysis of
Southeast Asia, Yusof Ishak Institute, January 26, 2024, https://fulcrum.sg/aseanfocus/connectivity-and-resilience-in-the-asean-power-grid-2-0-under-laos-
asean-chairmanship/

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