Think Tanks Seek Global South Convergence for Power Shift

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Global South Members Must Gain Strategic Convergence: Research Paper

By Raisina Correspondent

New Delhi, November 5: Two think tanks have stated that Global South nations are exploiting economic strategies and geopolitical interests to advance their goals amid deepening drift between the two world powers since the onset of the Ukraine War.

The Center of Geoeconomics for the Global South (Dubai) and Academy of Contemporary China and World Studies jointly conducted the research on how the Global South is becoming more important in global power dynamics. “Countries in this region are using economic strategies and geopolitical interests to advance their goals in a multipolar world,” said the joint research paper.

Arguing against just focusing on traditional geoeconomics, the research paper called for understanding the Global South’s economic diversity and strategic actions. The research looks at how emerging powers in this region use infrastructure, investments, and trade to boost their global influence.

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The paper also flagged challenges like debt diplomacy with potential to harm economic stability and sovereignty. “Regional cooperation shows potential but faces issues such as inequality and weak institutions,” added the joint paper of the two think tanks.

It asserted that the “involvement of Western powers and the competitive nature of their strategies impact regional development. A balanced geoeconomic approach that emphasizes sustainable development, economic growth, environmental sustainability, and social inclusion is crucial for achieving the Global South’s long-term goals.”

Global South refers to countries mainly in Africa, Asia, Latin America, and the Caribbean, which share a history of colonialism and economic exploitation, while also clubbed in the category of developing nations. China and India are the economic leaders of the Global South.

The Global South nations account for over 40 per cent of the world’s GDP with China, India, and Brazil being key players.

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The Global South is becoming more prominent through its economic weight and strategic actions, such as China’s Belt and Road Initiative, which boosts its global presence through infrastructure projects. Regional organizations like the African Continental Free Trade Area (AFCFTA) and ASEAN are also enhancing cooperation within the region.

This research examines the geoeconomic strategies of Global South countries, analyzing how they use economic tools and regional cooperation to shape global power dynamics. It also explores challenges such as debt dependency and competition with Western powers, and offer recommendations for optimizing these strategies.

On geoeconomics in a multipolar world, the research clarifies that geoeconomics is the strategic use of economic tools to achieve geopolitical objectives. “It’s more than just economic growth. It’s about how economic power can be used to influence global politics and shape international relations,” added the paper.

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Sifting the shift from a unipolar world dominated by one superpower to a multipolar world with multiple influential actors, the paper argues that the Global South stands to gain with a more significant role in global affairs and to engage with a variety of partners, not just traditional Western powers.

“Economic power can be exerted through various means, such as controlling critical resources, having large financial reserves, influencing trade through FTAs, and providing loans to other countries,” added the research paper.

On Global South perspective on growth, trade, investment, and regional cooperation, the paper argues that “the diversity and complexity of the region’s economic landscape and the strategic actions taken by countries to address challenges and capitalize on opportunities will be key aspects of future roadmap”.

It states that the historical and political economy of the Global South members in Asia, Africa, Latin America, and the Caribbean influenced their distinct growth trajectories. It emphasizes the varied development paths due to factors like colonial history, resource endowments, and political stability. Despite their geographic and cultural differences, these countries share common challenges, such as the legacy of colonialism, uneven economic development, and vulnerability to external shocks.

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“The Global South has shown significant vitality in economic growth, particularly the rapid growth of large economies like China and India, which has had a substantial impact on the global economic landscape. In terms of trade and investment, the Global South is increasingly integrated into global trade networks,” adds the paper.

Yet, it adds, many countries remain reliant on a narrow range of exports, making them susceptible to global market fluctuations. “Foreign Direct Investment (FDI) flows to these countries are uneven, with some attracting substantial investment due to market size and growth potential, while others struggle due to political instability and inadequate infrastructure,” adds the paper.

It listed human and natural capital development challenges for the Global South. “Although these countries have a young population and abundant natural resources, shortcomings in education, health, and employment opportunities constrain human capital development. Concurrently, environmental degradation and overexploitation of resources put pressure on natural capital,” adds the paper.

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Delving on strategic economic behavior and geoeconomic influence, the paper states the key strategies employed by countries like China, India, Brazil, and South Africa seek to enhance their geoeconomic footprint.

“Among global actors, China initiated the Belt and Road Initiative, focusing on infrastructure development to create economic corridors and dependencies. Brazil leverages its resource wealth, particularly in agriculture and minerals, to gain a stronger voice in global commodity markets and regional leadership within Latin America. South Africa aims to lead continental integration efforts through the African Continental Free Trade Area, using its industrial and mineral resources to foster intra-African trade and investment,” adds the paper.

The paper in its policy recommendations called for Global South members to diversify their economies to reduce vulnerability to external shocks. “Policies to encourage development of value-added industries and integration into global value chains will be key roadmap along with strengthening regional institutions and promoting intra-regional trade and investment to enhance economic integration and collective bargaining power,” added the paper.

The report also argued for investments in digital infrastructure, emerging technologies, green growth strategies, addressing climate change, and conserving biodiversity to ensure sustainable development. It also called for the Global South to enhance its diplomatic engagement and advocacy in international forums to shape global norms and standards that align with its development priorities.

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