The Least Developed Countries Report 2011

The Potential Role of South-South Cooperation for Inclusive and Sustainable Development

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In light of the current economic difficulties facing traditional development partners and the non-sustainable and non-inclusive nature of performance of the Least Developed Countries (LDCs) over the last decade, LDC governments need new development paths to tap into dynamic growth poles in the South. This publication explores the role of South-South cooperation and regional developmentalism, and finds that, in order to benefit from evolving South-South relations, LDCs need to transform into Catalytic Development States that are highly sensitive to LDC vulnerabilities and offer new policy agendas.

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Activating the developmental state in LDCs: The role of South-South cooperation

The objective of this chapter is to examine how least developed countries (LDCs) and their Southern partners can enhance the development impact, and realize the development opportunities, of South-South cooperation. The chapter argues that the most effective way for LDCs to do this is to build a catalytic developmental State (CDS) tailored to LDC circumstances. Building a developmental State in LDCs is not a simple matter, as discussed in the Least Developed Countries Report 2009. However, this chapter argues that South–South cooperation has features which make it more likely to support and encourage such State–building than the traditional forms of development cooperation currently do. It is thus possible to create a positive interaction between building developmental States in LDCs and South–South cooperation. New modalities and structures are required to strengthen the interdependence between the two phenomena in the post-crisis environment. In this regard, developmental regionalism is particularly important, as well as mechanisms to address the financial resource challenges of effective developmental States.

English Spanish, French

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