Page 9 - Echoes of the Global South V2

Another emerging trend is the deepening of regional cooperation within the Global South. Organisations like the African
Continental Free Trade Area (AfCFTA) and the Association of Southeast Asian Nations (ASEAN) are playing an increasingly
important role in promoting economic integration and collective bargaining power on the global stage. , These regional
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initiatives are seen as vital for addressing shared challenges, such as trade barriers, infrastructure gaps, and economic
diversification.

However, the path to influence has not been straightforward. These countries face many challenges, including economic
inequality, political instability, and the need to balance growth with sustainable development. The region faces significant
economic disparities, with some countries experiencing rapid growth while others struggle with poverty, inequality, and
underdevelopment. The COVID-19 pandemic exacerbated these challenges, leading to increased debt burdens and
economic vulnerabilities.

Figure 2: COVID-19-induced Economic Vulnerabilities

Tens of millions of people are being pused into extreme poverty by health spending
Number of people pushed into poverty due to health spending, by poverty line

Source: Blake and Wadhwa (2020) 10

The Global South is also becoming a critical battleground for great power competition, particularly between the United
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States and China. The shifting global power dynamics have created new pressures and opportunities for Global South
countries as they navigate this complex geopolitical landscape. As these powers vie for regional influence, Global South
countries are leveraging their geoeconomic strategies to maximise their benefits while minimising dependencies. This
competition significantly affects the region's economic development and geopolitical positioning.

This paper explores the geoeconomic strategies being employed by countries in the Global South and how these
strategies are reshaping global power dynamics today. Geoeconomics, which sits at the intersection of economic strategy
and geopolitical interests, offers a unique lens through which to understand the actions of Global South countries as they
navigate the complexities of a multipolar world. The study will analyse how these nations utilise economic tools, such as
trade, investment, infrastructure diplomacy, and regional cooperation, to advance their national and regional objectives
and also examine their challenges, including debt dependency, structural economic limitations, and competition with

6. Niall Duggan, Juan Carlos Ladines Azalia, and Marek Rewizorski, “The structural power of the BRICS (Brazil, Russia, India, China and South Africa) in
multilateral development finance: A case study of the New Development Bank”, International Political Science Review, 43(4), 495-511, October 14, 2021,
https://doi.org/10.1177/01925121211048297
7. Christopher Clayton, Matteo Maggiori and Jesse Schreger, “A Framework for Geoeconomics”, Stanford Institute for Economic Policy Research (SIEPR),
Working Paper No. 24-01, January 2024, https://siepr.stanford.edu/publications/working-paper/framework-geoeconomics
8. 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
9. Koichi Ishikawa, “The ASEAN Economic Community and ASEAN economic integration”, Journal of Contemporary East Asia Studies, 10(1), 24–41, March
02, 2021, https://doi.org/10.1080/24761028.2021.1891702
10. Paul Blake and Divyanshi Wadhwa, “2020 Year in Review: The impact of COVID-19 in 12 charts”, World Bank Blogs, World Bank Group, December 14,
2020, https://blogs.worldbank.org/en/voices/2020-year-review-impact-covid-19-12-charts
11. Michael Power, “In the rapidly shifting world of geoeconomics, the Rest is getting tired of the West”, Daily Maverick, November 02, 2023, https://www.
dailymaverick.co.za/opinionista/2023-11-02-in-the-rapidly-shifting-world-of-geoeconomics-the-rest-is-getting-tired-of-the-west/

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