Trends in World Trade and the Advocacy for South-South Co-operation: an Appraisal

Abstract

Economic injustices that are meted out to Third world Countries as a result of the traditional North-South trade links are well documented. Some development economists have concluded that the structure of the current trade links has been the major cause of underdevelopment. An alternative suggested strategy, to overcome this unequal alliance is South-South co-operation which among other things would find practical expression in increased South-South trade. That suggestion has been hailed by some Third World economists and politicians alike. The aim of this paper is to examine the nature of world trade network and flows between 1963 and 1983 with the view to identifying the roles of the three major economic blocs - Developed (Advanced) a Market Economies (DMES) Centrally Planned Economies (CPES) and Less Developed Countries (LDCS) in world trade and how they influence development. Statistics show that there was a significant growth in intra South trade in the mid-1970s which has been interpreted as a response to the advocacy for South-South co-operation in those years. The paper however attributes the growth to some major world economic changes that took place in that period, for example the oil boom and the rise of OPEC. Despite those economic changes South-South co-operation has not attained any appreciable height as at present. Growth constraints in South-South trade', are, therefore, identified and analyzed. The author's conclusions are that South-south trade is tied to major economic changes in the world which could affect it positively or negatively? Economic changes aside, there are other formidable barriers to increased, South-South trade which are also discussed. But-that does not imply that increased South-South trade is impossible because the 1973 significant growth rate was achieve in the face of those problems and again if one; considers the fact that presently, t .13:0 South is a major net importer' of almost all major world exports.