7th Hongqiao International Economic Forum - Sub-forum 4: Sustainable Development of Global South and China-Africa Cooperation
Your Excellency, Mr. Li Fei, Vice Minister of Commerce of China,
Excellencies, distinguished participants, dear colleagues and friends,
It is a great pleasure to welcome you to this sub-forum, co-hosted by UNCTAD and the Ministry of Commerce of China here in Shanghai.
Let me first extend my congratulations to the Vice-Minister and the Ministry of Commerce on the successful opening of the 7th China International Import Expo and the Hongqiao International Economic Forum. The opening statement by Premier Li Qiang was truly inspiring.
UN Trade and Development greatly appreciates China’s commitment to globalization, sustainable development, multilateralism and the United Nations.
These are issues central to our world today that has a strong Global South.
As of 2023, developing countries accounted for 42 per cent of global GDP, 44 per cent of merchandise exports and 65 per cent of FDI inflows.
This is a remarkable shift from sixty years ago when developing countries held only 17 per cent of global GDP, 22 per cent of merchandise exports, and attracted very little FDI inflows.
Moreover, South-South trade and integration have grown rapidly. Today, South-South merchandise trade comprises a quarter of global trade, surpassing South-North trade.
But while we are now living in a world with a strong Global South, it is also a world where the Global South still needs more voice.
The beneficial integration of the South into the global economy has been core to UNCTAD ‘s mission and the founding principles of the Group of 77 and China, both established 60 years ago.
At the Third South Summit in Kampala, Uganda, this past January, the 134 member States of the Group of 77 and China called for “placing the Global South in a more influential and equal footing in the international arena and in mutually beneficial cooperation with all partners”.
During UNCTAD’s 60th anniversary celebration, our Secretary-General Rebeca Grynspan proposed a new, forward-looking agenda that combines multipolarity with multilateralism to decentralize the global economy and political power while promoting greater inclusion.
We were honoured that His Excellency, Xi Jinping, President of China, addressed the Global Leaders Forum via video.
He expressed appreciation for UNCTAD’s role and contribution to South-South Cooperation and North-South Dialogue.
China’s generous financial contribution to UNCTAD will allow us to further support the Global South in achieving sustainable development.
Ladies and gentlemen,
Today’s event offers an opportunity to explore development pathways for the Global South taking into account the insights from the Trade and Development Report, our flagship publication, that we have just released.
The report calls for a rethinking of development strategies amid a global slowdown.
Global growth, including in the three major economies, is at a new, low normal. We expect the world economy to grow at only 2.7 per cent in 2024 and 2025. This is well below the pace needed to meet our development goals.
Although global trade will grow more than anticipated due to a stronger rebound in merchandise trade, the dynamic trends observed earlier this year are likely to slow down as the two largest global economies decelerate. However, trade in services remains more dynamic than trade in goods.
Debt continues to be a major concern for many developing countries, with debt burdens risking to transform into a development crisis in many countries in the South. Reforming the international financial architecture and building a development-focused global financial system is therefore urgent.
In a sluggish economy with rising debt, coupled with pressures from climate change, the energy transition and social services demands, developing nations face tough policy choices.
This landscape calls for new development strategies.
And there are opportunities.
Strategies could, for example, tap into the potential of the services economy and the expansion of South-South trade. UNCTAD has long championed South-South Cooperation as a valuable component of the international development agenda.
The growing demand for critical minerals essential to the energy transition can also present a real opportunity for resource-rich developing countries. Success will depend on their capacity to add more local value, diversify their economies and support redistribution. This will also require international action, such as technology transfer or more policy space.
Ladies and gentlemen,
The opportunities for new development strategies are vast. But without strategic policy shifts, they could be lost.
Since our emergence on the world stage in 1964, UNCTAD has been a voice of the aspirations and concerns of the Global South for a more inclusive global economy.
We have always emphasized that the development challenge is as much an international as a domestic issue, and that global economic governance needs to better reflect developmental aspirations.
I now look forward to hearing from today’s speakers and their insights on sustainable development pathways for the Global South.
But I want to end my remarks with a heartfelt thank you to the Ministry of Commerce and the Shanghai Municipal Government for their warm hospitality to the UNCTAD team and our invited speakers.
Thank you.
