Amid changing world, Global South must chart new development path to navigate rising tensions

Going down in history as the Bandung Conference, the legacy of its stirring declaration, which set out the principles of non-alignment, remains relevant to this day.

Unctad will celebrate its 60th anniversary this year and hold a Global Leaders’ Forum with the theme: “Charting A New Development Course in the Changing World”. It is thus timely to reflect on the world of today and the development path ahead.

While the world has changed much since then, a lot has stayed the same. Geopolitical rivalry between major powers remains one of the biggest risks to the world’s economy.

Coupled with major disruptions to supply chains, revolutionary new technology and the existential threat of climate change, and we find ourselves in a new world filled with uncertainty.

As with during the Cold War, developing countries stand at a crossroads. There is great pressure to again choose sides in the new rivalries of our age, as well as to abandon the path of economic cooperation for protectionism and populism.

While the international order that is now being shaken is far from perfect, it would be a grave mistake for the developing world to read this as a sign for us to turn inward.

While countries can benefit from the de-risking of supply chains and strengthening of national security, the ultimate cost of poorly managed economic fragmentation will far outweigh the benefits – with developing countries losing out the most.

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What is needed, rather, is a new development path for this new world. Five points will be crucial in charting it.

First, we need more, not less, integration and cooperation. Growing trade restrictions will cost the global GDP around 7 per cent. Trade