The Rise of the South: Perspectives from Asia and the Pacific

2013 UN Day Seminar / ESCAP

Shun-ichi MurataDeputy Executive Secretary of ESCAP

Founding of the UN

• The name ‘United Nations’, was coined by President Franklin Roosevelt; first used in the Declaration by United Nations of 1 Jan. 1942, during WW II, when representatives of 26 nations pledged their Governments to continue fighting together against the Axis Powers

• In 1945, representatives of 50 countries met in San Francisco at the United Nations Conference on International Organization to draw up the United Nations Charter.

• The Charter was signed on 26 June 1945

UN Charter

Article 55:the United Nations shall promote:

• higher standards of living, full employment, and conditions of economic and social progress and development;

• solutions of international economic, social, health, and related problems; and international cultural and educational cooperation; and

• universal respect for, and observance of, human rights and fundamental freedoms for all without distinction as to race, sex, language, or religion.’

Article 56:All Members pledge themselves to take joint and separate action in co-operation with the Organization for the achievement of the purposes set forth in Article 55.

ESCAP-an inclusive forum

With the establishment of the Economic Commission for Asia and the Far East a new chapter opens in the economic history of the countries included in its territorial scope, For the first time a forum is provided by the United Nations at which the accredited representatives of the governments of the region can meet together to discuss common economic problems, establish agreed principles of action and carry out, if they choose, the policies determined by mutual agreement. Such a thing has not

been known in the past”, (Survey 1947, p. 1)

“

Rise of Asia-Pacific

Real per capita income

1947(USD)

2012

Sri Lanka 91 1,884Philippines 88 1,501

India 43 1,107Indonesia 35 1,732

China 23 3,348Japan Less than 100 36,938USA 1,269 43,063UK 660 37,849

Most dynamic region

Real GDP growth by regions of the world

Yet, challenges remain

Development challenges

Actual and projected shares of world economic output, 1990, 2010 & 2030 Per cent of world GDP, PPP (1990 Geary-Kheamis dollars)

Contribution to incremental global output, 2000-2012 Billions of constant 2010 USD

The South rises

South-South share in total world trade and southern trade, 1995-2011 Per cent of merchandise trade exports

South-South trade + otherexchanges rising with growing synergies

Developing Africa’s exports Developing America’s exports

Inter-regional South-South trade has also expanded rapidly in recent years

Growing share of Asia-Pacific

Share of Outward FDI Flows from Developing Countries in Global FDI Flows

Growing share of Asia-Pacific South-South FDI

Vibrant South-South servicestrade and investment flows

Total international reserve assets, 1990-2012 Millions of SDRs

Development assistance flows from non-DAC donors Millions of current USD

Rising South-South developmentassistance and potential for financial cooperation

Long history of coordination in global economic forums

• 1955 Bandung Conference and establishment of Non-aligned Movement in early 1960s

• G-77+China for coordination in the United nations

• A number of issue-based coalitions in the WTO: G-20 and G-33 on agriculture, NAMA-11, among others

• G-24 in Bretton woods Institutions

• BASIC in climate change negotiations

Recently new groupings have been formed by emerging countries to promote cooperation and exploit synergies:

• IBSA (India-Brazil-South Africa) Trilateral Commission - promoting South-South Cooperation

• BRICS grouping- voicing concerns on global issues - setting up the BRICS Development Bank to finance infrastructure

development in developing countries

Average South-South and South-North trade costs, 2007-2010 Per cent ad valorem equivalent (international relative to domestic trade costs)

Issues for the future agenda

Developing Africa’s exports to Developing Asia Developing America’s exports to Developing Asia

Need for a policy framework to guide South-South economic relations to exploit their full potential and follow a more equitable and sustainable path

Towards a policy frameworkfor equitable S-S cooperation

•Institutional promotion of inter-regional trade and investments among developing countries

- Implementing GSTP Sao Paolo Round;

- Extending the coverage and scope to more countries and more products

- Extending the scope of GSTP to trade in service•South-South Investment Promotion and Protection and Double Taxation Avoidance Agreements to facilitate FDI flows•Special promotion of greenfield South-South FDI flows in LDCs that help to build productive capacity to enable them to trade value-added products •Adoption of Duty-Free-Quota-Free schemes by more developing countries, a la India, China for LDCs to enable them to export value added manufactured products•Highlighting and exchanging good practices in South-South cooperation•Major emerging countries such as BRICS leading by example in terms of good practices•Developing a set of voluntary guidelines to shape South-South investments and economic relations in a more equitable and sustainable manner

Thank you!