Economic Development in Africa Report 2010

South-South Cooperation - Africa and the New Forms of Development Partnership

image of Economic Development in Africa Report 2010
The increasing role of large developing countries in global trade, finance, investment and governance, coupled with their rapid economic growth, has stimulated debate on the implications for Africa’s development. The Report examines recent trends in the economic relationships of Africa with other developing countries and the new forms of partnership that are animating those relationships. The report discusses the variety of institutional arrangements that are guiding and encouraging these new economic relationships. It provides up-to-date information on African trade with other developing countries outside Africa, as well as on official financial flows and foreign direct investment into Africa from those countries. It places the new relationships and multiplying partnerships within the context of South–South cooperation. Finally, it assesses important policy issues that arise from the new relationships in each of these areas.

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Southern official flows to Africa: Trends, features and challenges

In recent years, Africa has received significant amounts of financial contributions from both developed and developing countries. While Africa’s traditional partners generally refer to their contributions as aid or ODA, Southern partners do not consider their financial contributions to other developing countries as aid or ODA. Rather they describe these as “expressions of solidarity and cooperation borne out of shared experiences and sympathies”. Despite these differences, it should be noted that there is no agreed language on what these contributions from Southern partners to other developing countries should be called. Consequently, in this report we use the term “official flows”, where appropriate, to describe contributions from Southern partners with the recognition that in the literature “official flows” generally refers to ODA and transactions of the official sector with developing countries that do not meet the conditions for eligibility as ODA (box 4).

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