South-South Ideas: How Coherent are Trade and Investment Policies of the Southern Finance Providers? A Case Study on Indo-Bangla Lines of Credit
Cooperation, United Nations Office for South-South | March 2019
South-South cooperation (SSC) has acquired heightened importance in the context of mobilizing finance for the development of the developing countries. SSC, as a theoretical construct and as an option of development finance and praxis, has gained currency in contemporary international development discourse. The concept of SSC has acquired growing prominence in view of the growing ability of some of the Southern emerging economies to generate enough resources to emerge as providers of development aid and support. Some of these providers are new, while some can claim the track record of providers with some maturity. Ensuring coherence between trade and investment policies pursued by the recipient countries and the policies of Southern providers is particularly important because of the overriding role of trade and investment for the development of recipient countries in the era of the Sustainable Development Goals (SDGs). The achievement of a number of SDG aspirations, including no poverty (SDG 1), zero hunger (SDG 2) and decent work and economic growth (SDG 8), will critically hinge on how trade and investment policies are pursued and implemented in the developing countries. Additionally, SDG 17 (partnerships for the goals) specifically mentions how effective global policies are in the areas of investment (SSC and foreign direct investment (FDI)—SDG 17.3.1) and trade (share of developing countries and least developed countries (LDCs) in global exports) from the perspective of attaining the SDGs. From this vantage point, an enquiry into how coherent the trade and investment policies of Southern providers are, the extent to which they are aligned with the policies and demands of the recipient countries and whether they address the needs expressed through the SDGs are pertinent questions in the current context. The need for this enquiry is reinforced by the absence of a coherent framework for assessing the effectiveness of SSC. At a time when the aid spending of donor countries is under increasing pressure, policy coherence, defined in this paper as “the systematic promotion of mutually reinforcing policy actions across government departments and agencies creating synergies towards achieving the agreed objectives” (Danish Institute for Human Rights, n.d., citing an Organization of Economic Cooperation and Development (OECD) definition), can reduce the wasteful spending of limited investment funds and development assistance through readjustment of “competing” policies (Krätke, 2013). Consequently, an in-depth examination of whether recent SSC policies relating to trade and investment are aligned with development strategies and policies of developing countries has emerged as an urgent necessity. In this context, this paper intends to contribute to this emerging area through an informed and structured discussion regarding the state of coherence between trade and investment policies in SSC and the enabling factors that could strengthen the nexus between the two, particularly in view of the SDGs.
CitationCooperation, United Nations Office for South-South. 2019. South-South Ideas: How Coherent are Trade and Investment Policies of the Southern Finance Providers? A Case Study on Indo-Bangla Lines of Credit. © Centre for Policy Dialogue. http://hdl.handle.net/11540/10249.
Regional Development Finance
Financing of Infrastructure
Finance And Trade
Regional Trade Agreements
General Agreement On Tariffs And Trade
Foreign and Domestic Financing
International Monetary Relations
Tax administration and procedure
Effect of taxation
Foreign trade and employment
Mentoring in business
Bills of exchange
International banks and banking
Central banks and banking
Bills of exchange
Banks and banking
Balance of trade
MetadataShow full item record
Anatomy of South–South FTAs in Asia: Comparisons with Africa, Latin America, and the Pacific Islands Hamanaka, Shintaro (Asian Development Bank, 2012-09-01)In understanding the proliferation of free trade agreements (FTAs) in Asia since 2000, it is important to distinguish between two types of FTAs in terms of a legal basis on either General Agreement on Tariffs and Trade (GATT) Article XXIV or the Enabling Clause. The latter provision can be used when an FTA involves only developing countries. While there are a total of 34 Enabling Clause-based FTAs ...In understanding the proliferation of free trade agreements (FTAs) in Asia since 2000, it is important to distinguish between two types of FTAs in terms of a legal basis on either General Agreement on Tariffs and Trade (GATT) Article XXIV or the Enabling ...
Lipsey, Robert E.; Sjöholm, Fredrik (Asian Development Bank, 2011-08-28)This paper attempts to measure the size of South–South foreign direct investment (FDI) in developing East Asia and the trends in it, the characteristics of the investing countries, and the investments themselves. It also summarizes the findings of studies in individual countries of the effects of these investments. The studies of individual countries will be used to try to find some consensus ...This paper attempts to measure the size of South–South foreign direct investment (FDI) in developing East Asia and the trends in it, the characteristics of the investing countries, and the investments themselves. It also summarizes the findings of ...
Climate Action South Asia: The Economics of Climate Change in South Asia Adaptation and Impact Assessment Asian Development Bank (Asian Development Bank, 2015-05-04)Analyses show that the cost of early action on climate change in South Asia is lower than the cost of damage brought about by climate change impacts. The region will face water shortages and agricultural food production losses, which are vital to achieving poverty reduction and other Millennium Development Goals (MDGs). South Asian countries will gain most by early inclusion of climate adaptation ...Analyses show that the cost of early action on climate change in South Asia is lower than the cost of damage brought about by climate change impacts. The region will face water shortages and agricultural food production losses, which are vital to ...