International seminar on diversification strategies in the global south: Rethinking development 70 years after Bandung
[Video message]
His Excellency, Pak Airlangga Hartarto,
Honourable Ministers, distinguished delegates, experts, colleagues,
Ladies and gentlemen, dear friends,
It is an honour to address you today, for this important seminar “Diversification strategies in the Global South: Rethinking development 70 years after Bandung.
Let me begin by expressing my sincere appreciation to our co-host, the Institute for Development of Economics and Finance (INDEF) Indonesia, and to the Global Development and South-South Cooperation Fund of China for sponsoring this timely event.
I would also like to thank my dedicated team at UNCTAD for their support in making this contribution possible.
Seventy years ago, on 18 April 1955, Bandung became the stage for a landmark moment in international diplomacy. The Bandung Conference, also known as the Asian-African Conference, brought together 29 newly independent nations, representing more than half of the world’s population at that time.
It was a moment of unity, of defiance and of aspiration – a legacy that laid the foundation for South-South integration, cooperation and solidarity.
This legacy resonates deeply as we face today’s challenges, which are indeed great. But looking back, I have no doubt in my mind that if the architects of Bandung would see the world as it is today, 70 years later, they would be proud of the many steps forward we have taken together.
Since Bandung, the Global South has undergone one of the most remarkable transformations in modern economic history.
In the 19th century, North-North trade represented 80% of all trade, and by the time of the Bandung Conference, this figure was still above 60%. Today, North-North trade equals South-South trade, at around 30% each.
What is more, these trends will surely continue. Forecasts suggest that over 70% of all economic growth in the next five years will come from the Global South.
This progress has not come easily. It has been the result of innovation, perseverance, and determination. In particular, it has been the result of the theme of this meeting – structural transformation. The countries at the vanguard of the rise of the Global South have been precisely those who have been able to diversify their economies, add value to their exports and overcome centuries-old patterns of commodity dependence.
However, more than half of developing countries and two thirds of the least developed countries still depend on commodities for more than 60% of their export revenues.
Diversification is not something that will happen automatically. Even as technology advances and global supply chains become more complex, new types of commodities risk becoming new sources of dependence. In particular, so-called critical minerals, which are critical for the two biggest transitions of the day – digitalization and clean energy, have taken renewed importance, as the Global South is home to most of these minerals.
Here, Indonesia has shown that resource wealth can be a catalyst for local value addition. As home to the world's largest nickel reserves, Indonesia transformed its approach to resource development. Rather than simply exporting raw ore, its value addition in nickel exports increased from $1.1 billion in 2012 to $20.8 billion in 2021, while tax revenue from nickel downstream activities rose from $266 million in 2019 to $1.3 billion in 2022.
Your excellencies,
I want to close by recalling the words of President Sukarno's opening speech at the Bandung Conference in 1955, words which have an important resonance today.
"What can we do? The peoples of Asia and Africa wield little physical power. Even their economic strength is dispersed and slight. We cannot indulge in power politics. Diplomacy for us is not a matter of the big stick...
…What can we do? We can do much! We can inject the voice of reason into world affairs. We can mobilize all the spiritual, all the moral, all the political strength of Asia and Africa on the side of peace. Yes, we! We…far more than half the human population of the world, we can mobilize what I have called the Moral Violence of Nations in favour of peace. We can demonstrate…that we, the majority, are for peace, not for war…
…Let us not be bitter about the past, but let us keep our eyes firmly on the future."
Today, the South needs itself more than ever before. South-South trade and cooperation can become a cushion to growing trade tensions, a source of stability, prosperity and resilience. Let the spirit of Bandung guide us toward a more prosperous, equitable future for all.
Thank you.
