Interview: China's role pivotal in shaping future south-south cooperation trends

Despite a fledgling global economy, experts predict a bright future for south-south cooperation, especially in light of China's growing relevance in the provision of aid, investment and advice in Least-Developed Countries (LDCs) and developing countries around the world.

"The extent to which China conducts south-south cooperation will shape how other countries will do so," Paolo Yu, South Center's head of administration and coordinator of the Global Governance for Development Program, told Xinhua.

Speaking at the intergovernmental organization's Geneva-based office, Yu explained that as well as being one of the biggest south-south cooperation providers, China's investment and development projects in both LDCs and developing countries is critical insofar as it offers a viable alternative to Western donor organisms.

This leads to what he called "Chinese branding" of south-south cooperation, based on a number of key principles which include respecting state sovereignty as well as non-interference.

Central to China's approach, this means China does not impose policy reform as a conditionality of what it provides to a given country, Yu explained, adding that this conduct harks back to guidelines promulgated by then Chinese Premier Zhou Enlai in the 1960s.

This contrasts with the conditions attached to many Western aid packages. Though there are exemptions to the rule, "there is a tendency to link ODA (Official Development Assistance) to a set of policy reforms," said Yu, who highlighted that ODA is becoming more and more a tool for economic diplomacy.

By abiding by guidelines of non-interference and respect for state sovereignty, China, as well as other countries such as India, Brazil and South Africa, have managed to create a cleavage between northern and southern cooperative efforts.

Though south-south cooperation used to be based on bilateral relations, it has now become a multilateral environment where regional south-south initiatives converge with new south-centred institutions, such as the Asian Development Bank and the Bank of the South in Latin America.

In light of these trends and since the mid-2000s, "there has been a growing interest from Northern donors and countries who wish to help promote south-south cooperative efforts," Yu explained.

This creates what he defined as "triangulation," as developed countries seek to influence the way south-south cooperation takes place, which may skew the relationship if the latter is weak and the influence of Northern partners is strong.

While flagging this possibility, Yu iterated the geopolitical upside of bringing many aid and development providers to the table as it enables more countries to choose where to get support for their development ambitions.

"Basically, the more choices you have in terms of who you want to partner with the better," said Yu, adding this furthermore enables certain countries to avoid loan directives with institutions.

"China has brought in new dynamics, not just in Africa but also in Latin America," he said.

The South Center's special adviser on economic and development finance, Li Yuefen, also confirmed China's influence in the international development area, while outlining how this rising clout impacts south-south cooperation efforts.

"We believe that China will continue to grow in strength, enabling it to be more actively involved in the making of 'game rules' in the world of finance and trade, while improving fair play in the democratization process of global cooperation and global governance and making more contributions to south-south cooperation," she concluded.

Established by an intergovernmental agreement which came into force on July 31, 1995, the South Center is an intergovernmental organization of developing countries that helps combine their efforts and expertise to promote their common interests in the international arena. Endit