One response to “Where is South-South cooperation going?”

  1. John Tresadern

    I think Martin Khor raises an important issue when he says that “much has been made of increased trade among the countries of the South, but much of it consists of intermediate components to be used in assembling goods destined for markets in the North.”

    The fact is that companies in the North do not ‘compete’ with companies in the South; they compete with other Northern companies, especially to see who can most rapidly and effectively outsource production to lower-wage countries in the South. Much of the import activity in global supply chains is in fully finished goods.

    There is fierce South-South competition between producers for contracts with Northern-led companies, but hardly any North-South ‘competition’ as such.

    As Martin went on to say, “Only when the developing countries begin to trade with and invest in each other’s economies, in the way that developed countries do, will we know that a structural shift has occurred”.