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.

Sustainable Development Goals:

Affordable and Clean Energy

Industry, Innovation and Infrastructure

Peace, Justice and Strong Institutions