UNDP Report: New Governance Trends
UNDP by Victoria Cole, July 27, 2015 Adjust font size:
The United Nations Development Programme, in partnership with the CCIEE and the SIIS, published a report entitled, "Rebalancing Global Economic Governance – Opportunities for China and the G20 beyond 2015." The report highlights the importance of global governance and sustainable development to "add value to ongoing debates and inform the work of policy makers and practitioners in China as well as around the world."
How Can Global Economic Governance More Actively Support Global Development Cooperation? (Chapter 2)
2.2.1 The Rising South and Global Power Diffusion
New trends are emerging, largely characterized by a dramatic power shift that has seen many developing countries making use of existing international economic institutions, strengthening regional economic cooperation by further deepening regional monetary and financial cooperation, and investing more resources in the establishment of trans-regional or mini-lateral economic cooperation mechanisms.
Between 1991 and 2010, developing countries increased their share of global GDP by 16.7%, from 31.2% to 47.9%. According to IMF’s 2012 data, the purchasing power parity (PPP) GDP of emerging and developing countries has converged with the PPP GDP of developed economies for the first time in modern history.
In 1992, the top ten trading economies were all developed economies. The G7 countries alone accounted for 51.8% of global goods and service exports. Since then, the G7 countries' share of global exports has decreased to 31.2%. Additionally, this year, China became the leading trading economy in the world.
The distribution of global capital is changing and the capital stock held by emerging and developing countries is growing. By 2012, China, Brazil, India and Russia together accounted for 18% of global capital stock, equal to the share held by the U.S. As a result, the structure of foreign direct investment (FDI) has also changed significantly. Before 2000, developed economies were the main FDI providers, providing 91% of FDI; in 2012, however, emerging and developing countries provided 35% of global FDI.
In the past, the main international aid providers were OECD-DAC (Development Assistance Committee) and OPEC (Organization of the Petroleum Exporting Countries) member countries. Currently, based on broad estimates, the share of aid supplied by OECD countries has decreased to 76%, around 10 percentage points lower than 10 years ago. Moreover, many researchers believe that the volume of aid provided by emerging countries is largely underestimated.