Leading countries of the developing world are together reshaping global power dynamics a new era of human development progress, says “The Rise of the South: Human Progress in a Diverse World,” the 2013 Human Development Report, launched by the United Nations Development Programme (UNDP) here today.
“The rise of the South is unprecedented in its speed and scale. Never in history have the living conditions and prospects of so many people changed so dramatically and so fast,” says the Report. “The South as a whole is driving global economic growth and societal change for the first time in centuries.”
Nations in Eastern Europe and Central Asia are on the frontier of that change: “Connecting the North and the rising South is the transforming East,” the Report says, referring to the region.
Dozens of developing countries worldwide have achieved impressive growth and dramatically improved peoples’ lives with pragmatic policies that typically combine strong government leadership, open markets and imaginative social programs, the Report says.
“The 2013 Report makes a significant contribution to development thinking by describing specific drivers of development transformation and by suggesting future policy priorities that could help sustain such momentum,” writes UNDP administrator Helen Clark in the Report’s foreword.
Some of the largest countries have made rapid advances, notably Brazil, China, India, Indonesia, South Africa and Turkey. But there has also been substantial progress in smaller economies, such as Bangladesh, Chile, Ghana, Mauritius, Rwanda, Thailand and Tunisia.
The experience of many states in Eastern Europe and Central Asia in managing a rapid transition from centrally planned to market economies holds useful lessons for developing countries elsewhere, says the Report. The first phase of the transformation began with a sharp drop in living standards and human development. While each country managed a subsequent recovery, the overall experience underscores the importance of social inclusion and a responsible role for the state.
2. RISE OF THE SOUTH:
• TECTONIC SHIFTS
• EXPANSION OF HUMAN
CAPABILITIES AND CHOICES
3. GLOBAL REBALANCING
60
50
% Share of world output (PPP)
40
30
20
10
0
1820 1845 1870 1895 1920 1945 1970 1995 2050
Brazil, India, China Germany, France, Italy, UK, US, Canada
A CHANGING
WORLD
4. REALIGNMENT OF WORLD TRADE
60
% share of world merchandise trade
50
40
30 South-South
North-North
20
10
0
1980 1985 1990 1995 2000 2005 2010
A CHANGING
WORLD
5. RAPID HUMAN DEVELOPMENT
ACROSS THE GLOBE
1
Korea, Rep.
Chile
Brazil Mexico
Malaysia
0.8 Mauritius
Thailand Turkey
Tunisia
China
Indonesia
Viet Nam
0.6
HDI 2012
Ghana
India
Lao PDR
Bangladesh
Uganda
0.4 Rwanda
0.2
0
0 0.2 0.4 0.6 0.8 1 A CHANGING
HDI 1990 WORLD
6. MUCH HUMAN
PROGRESS, PARTICULARLY IN LOW HDI
COUNTRIES
Avg. Annual Growth rate 2000-12 HDI Spread– highest vs. lowest
1.80 1 Norway
1.60
0.9
1.40 Bahrain
0.8
1.20 Croatia Tonga
1.00 0.7
Tunisia
0.80 0.6
Congo
0.60
0.5 Swaziland
0.40
0.4
0.20
Niger
0.00 0.3
Very high HDI High HDI Medium HDI Low HDI Very high HDI High HDI Medium HDI Low HDI
7. MASSIVE EXPANSION OF THE
GLOBAL MIDDLE CLASS
1990 (1.8 billion)
2020 (3.2 billion)
2030 (4.9 billion)
Europe and North America
Asia-Pacific
Central and South America
Rest of the World
A CHANGING
WORLD
8. INTERNET CONNECTIVITY
1800
1600
1400
Internet users (millions)
1200
1000
800
600
400
200
0
1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010
South North
9. Why have some countries done
better than others?
What can we learn from them?
What are the common drivers?
10. PROACTIVE
DEVELOPMENTAL STATES
1
Commitment to
long-term human
development
2 Actively promoting
job creation
3 4
Enhancing public
Nurturing industrial
investment in health
capacities
and education
DRIVERS
11. TAPPING GLOBAL MARKETS
1
Investment in
people to make the best
2
of trade opportunities
Investing in
infrastructure to
facilitate market access
3 Expanding into non-
traditional markets
DRIVERS
12. SOCIAL POLICY INNOVATIONS
1 2
TURKEY
Health care for all
BRAZIL
and targeting the Expanding education
poor access by equalizing
funds across regions and
municipalities
3 4
MEXICO INDIA
Poverty reduction Extending development
through innovative cash benefits to the broader
transfer programmes society key to accelerating
progress DRIVERS
13. How can we sustain human
development for the
generations to come?
14. PROMOTING EQUITY, VOICE
AND ACCOUNTABILITY
1 2
Countries with less
Women’s education
inequality do better is essential to reduce
and improve more in gender inequality
human development
3 4
Educated, interconnect Participation and
ed youth demand
greater
inclusion essential to
accountability stability and social
cohesion
SUSTAINING
MOMENTUM
17. IS DEMOGRAPHY DESTINY?
1 Education is key to
reduce fertility rates
2
Skills formation and
productivity gains can help cope
with a rapidly aging population
3
To reap a demographic dividend
and benefit from youth bulge, job
creation should have priority
SUSTAINING
MOMENTUM
18. THE RISE OF THE SOUTH
• Governance for a changed world
• Opportunities for new development
partnerships
19. REDESIGN FOR A NEW ERA
1
COHERENT PLURALISM
Rise in regional institutions
2
and finance mechanisms
MORE SPACE FOR NON
STATE ACTORS
Citizen networks and social
media can promote new
3
norms to reinforce
GLOBAL GOVERNANCE accountability of both state
For fair representation and and private actors
shared responsibility, 20th
century institutions must
adapt to 21st century realities
IMPLICATIONS
20. NEW INSTITUTIONS, NEW MECHANISMS
• Infrastructure
development banks
• New institutions can
facilitate regional
integration and South-
South relationships $6.84 trillion
• A new South Commission
$3.36 trillion
IMPLICATIONS
21. PRIORITIES FOR A NEW ERA
• Rising economic strength must be matched by a full
commitment to human development
• LDCs can learn and benefit from the success of emerging
economies
• Greater representation for the South and CSOs can
accelerate progress on major global challenges
• In a more connected world, the South continues to need
the North and the North now needs the South as well
Editor's Notes
Global rebalancing: historical reallocation of world output shares towards developing countries
New international trade patterns with south-south trade growing substantially: global shares of North-South trade stable and of North-North trade declining
Strong HD across the world: Over 40 developing countries with better performance in HDI by 2012 given what would have been expected based on their HDI 1990 values
Massive expansion of the global middle class: To triple by 2030 with growth concentrated in Asia.
Interconnectedness: Accelerating Internet user proliferation in the South
What can we learn from this development success? Why have some countries done better than others?
Educated, interconnected youth are demanding greater accountability from national institutions
Confront environmental challenges: Should an environmental disaster scenario materialize, the gains in poverty reduction can be reversed
Ageing challenge has to be met partly with rising productivity through skill formationDemography is not destiny: Education and job creation are key for some countries to tackle unbalances due to ageing and for others to benefit from the demographic bonus
What does the rise of the south mean for human development policy and strategy?
The world is more connected than ever – south needs the north, north needs the south
New governance arrangements that reflect the new world order are called for based on underpinnings of coherent pluralism and responsible sovereigntyForeign reserves and sovereign wealth funds could be tapped to finance infrastructure for development: A relatively modest percentage channeled to developing countries could meet a substantial share of the existing gap