The European Journal of Management and Public Policy Public

VOLUME 13 • No.1 (2013) issn 1726-6475

VOLUME 13 • N o .1 (2013) .1

EUROPEAN CENTER FOR PEACE AND DEVELOPMENT EUROPEAN CENTER FOR PEACE AND DEVELOPMENT UNIVERSITY FOR PEACE ESTABLISHED BY THE UNIVERSITY FOR PEACE ESTABLISHED BY THE UNITED NATIONS

eE  J  of M and P  P VOLUME 13 • No.1 (2013) issn 1726-6475

Contents

Project Note 1

Introduction 3

Boutros Boutros Ghali Letter of Invitation 6

Idriss Jazairy Opening Remarks 8

An Chen, Fan Yang From a Perspective of International Economic Law With Chinese Characteristics 20

Abdlatif Al-Hamad Contribution to the Group 77 50th Anniversary 64

Paolo Acanfora The Global South in the New International Disorder: the Idea of a Shared Society 67

Idriss Jazairy In Defence of Special Procedures of The Human Rights Council: an Alternative Narrative from the South 71

Ismail Serageldin The Next Half Century 78

Branislav Gošović South-South Cooperation: An Opportunity for South to Change the World Economic and Political Order 86

Raoul Weiler, Timi Ećimović The Nature of the Planet Earth and New Sciences of Networks and Complexity 97

Kemal El Shairy Course of Oil – The Libyan Case 102

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EUROPEAN CENTER FOR PEACE AND DEVELOPMENT UNIVERSITY FOR PEACE ESTABLISHED BY THE UNITED NATIONS European Journal of Management and Public Policy Academic Journal and Professional Forum on Interface between Business and Society Published by the European Center for Peace and Development of the University for Peace established by the United Nations For the Publisher: Prof. dr Negoslav P. Ostojić, ECPD Executive Director issn 1726-6475 Editor ŽELJKO ŠEVIĆ, Ph.D. (London) Professor of Accounting, Finance and Public Policy Glasgow Caledonian University Scotland, UK Permanent Visiting Professor in Business and Public Administration European Center for Peace and Development University for Peace established by the United Nations Belgrade Editorial Assistant GORDANA HOFMANN, Ph.D. (Belgrade) European Center for Peace and Development University for Peace established by the United Nations Belgrade, Serbia E-mail: [email protected] Editorial Assistant EDOUARD MAMBU MA KHENZU, Ph.D. (London) University of Greenwich Business School London, England, UK E-Mail: [email protected] Language editor VERA GLIGORIJEVIĆ (Belgrade) Design NATAŠA OSTOJIĆ-ILIĆ, M.A. (Belgrade) Editorial Office EUROPEAN CENTRE FOR PEACE AND DEVELOPMENT (Belgrade) UNIVERSITY FOR PEACE ESTABLISHED BY THE UNITED NATIONS Terazije 41, 11000 Belgrade, Serbia phone +381 11 3246 041...045 • fax +381 11 2651-344, 3240-673 e-mail: [email protected], [email protected] • www.ecpd.org.rs

CIP – Каталогизација у публикацији Народна библиотека Србије, Београд 005(497.11) The EUROPEAN Journal of Management and Public Policy : academic journal and professsional forum on interface between usiness and society / edi- tor Željko Šević. – (2002) –Belgrade : European Centre for Peace and Develop- ment, University for Peace Established by United Nations, 2002 – (Belgrade : Graficom-uno). – 24 cm Dva puta godišnje. ISSN 1726-6475 = The European Journal of Management and Public Policy COBISS.SR-ID 32228879

The European Center for Peace and Development (ECPD) is a regional, international and research organization. The ECPD represents a unique in- stitution in Europe and has special significance to countries of South-Eastern Europe. The ECPD was established in 1985, with the main tasks and objectives “to organize and carry out postgraduate studies, research projects and dissemination of knowledge, which contribute to the promotion of peace, development and international cooperation”. Following its mission defined in its Statute, the ECPD ”…brings together the intellectual po- tentials from all parts of the world for the benefit of implementation of the programs of education and research project devoted to the fulfillment of the ECPD aims and objectives”. Dr. Simonida Marjanovic, Ambasador Paul-Marc Henry (long serving UN Under-Secretary Genaral and Presi- dent of the OECD Development Center) and Dr. Pierre Maries-Gallois served as president, while Professor Norman Scott CMG, Professor Shinichi Ichimura and Professor Takehiro Togo chaired the ECPD Council. The Basic tasks and objectives of the ECPD have been incorporated into its program structure, which feature: (A) Studies leading to postgraduate degrees and specialist training in Management, European Union, European Union Law and International Busi- ness Law, Diplomatic Studies, Banking and Finance, Sustainable development issues, (B) Interdisciplinary research on sustainable development issues, regional development, multicultural, multi-confessional and inter-ethnic relations and international relations; (C) Organizing international meetings, conferences, round tables, symposia, and workshops on topical issues from its programme; (D) Publishing conference, proceedings, professional and scientific texts, research papers, case-studies, textbooks, etc. The ECPD organizational structure is based on its Executive Staff, consisting of the Executive Director and the ECPD Secretariat as well as profes- sors core and expert team. The ECPD Executive Director represents the ECPD in public, national and international organizations, coordinates the ECPD activities and manages the ECPD Secretariat. In focusing its activities on education and research that foster sustainable development and the promotion of peace, the ECPD has a very well-de- veloped educational network in various countries, a number of research units and an extensive publication program (with more than 200 books published). printed in Belgrade by Graficom-uno Editorial Policy

The European Journal of Management and Public Policy publishes original scholarly papers across the whole spectrum of disciplines encompassing Management and/or Public Policy (widely de- fined). The areas of interest include Accounting, Finance, Human Resource Management, -Or ganisational Behaviour, Industrial Organisation, Marketing, Public Administration, Public Poli- cy, Transformation and Transition Studies, etc. but this list is by no means exhaustive. The Journal aims to be eclectic and pluralistic and, consequently, multidisciplinary work and work endorsing different (even conflicting) schools of thought is welcome. The Journal desires to be an influential policy forum and therefore the submissions must be primarily policy oriented and capable of in- fluencing the policy processes at both the micro and macro levels. However, good quality theoreti- cal papers, which may also be considered for publication, should clearly demonstrate the potential for replication and further extension by the professionals and policy-oriented scholars. Each pa- per submitted for publication will be judged, based on its own merit and international standards of excellence. The editors and referees will pay particular attention to the originality of the topic, the quality of the methodological approach, the paper’s relevance for future developments of and within the discipline and the overall quality of exposition. Although the Journal promotes high quality, original empirical and theoretical work, high quality review articles are also welcome, es- pecially if they demonstrate excellence to the extent that they may influence the directions of fur- ther research on the particular topic or in the focus area. All published papers must be accessible to both academics and practitioners, who should be able to understand papers published without being experts on the particular topic or area of research. All papers submitted will be judged in the first place by the Editor. If the paper is initially judged to be suitable for publication in the Journal, the Editor will send the paper to at least two anonymous referees. The referees can recommend a paper for publication without revision, publication with minor revisions, publications with major revisions and to reject publication of a submitted paper. In all cases where they recommend some changes to be made, the referees must provide a detailed report listing all the changes that are rec- ommended. Based on the referee reports, the Editor will decide on the status of the submitted pa- per. The decision of the Editor is final and cannot be disputed. The Journal aims to publish contributions of the highest quality possible that can be of interest to the wider international professional public. However, the research topics should preferably reflect research interests and traditions of Europe, notwithstanding the comparison of different approach- es existing in other parts of the world. The prospective authors may contact the Editor and respective Regional Associate Editor (if ap- pointed) with questions regarding the suitability of the paper for publication in the Journal. How- ever, the final decision can only be made on the submitted full paper. The editors can assess sub- missions that are incomplete, using their discretion, but their comments are not binding regarding any decision on a later submitted full paper. The editors will not provide detailed comments on pa- pers prior to formal submission to the Journal. The Editor reserves the right to return manuscripts to the authors without the full refereeing process if, in his professional and academic judgement, the paper is not of a quality acceptable to the Journal, or for any other reason. However, the Editor or his nominee will provide a prospective author with reasons for such a decision, especially if the paper falls outside the editorial policy or the authors seriously disregarded the Notes to the Con- tributors, published on the back cover of the Journal. The Journal is committed to best publishing practices and emphasises that the full referee proce- dure will be completed within 16 weeks from the date of submission to the Journal. The Editor will personally confirm receipt of the submission in writing and keep authors informed on the progress of their submission. Every effort will be made by the Editorial Board to inform the author of the decision within the committed 16 weeks from the date of submission. No submission fee is cur- rently being charged. Editorial Board EDITORIAL BOARD

Negoslav Ostojić, President of the Board, ECPD Mervyn K. Lewis, University of South Australia, Executive Director Australia Ljubiša Adamović, Florida State University, Jonathan R. Macey, Yale University, US Montenegrin Academy of Sciences and Arts, Montenegro Susan Martin, University of Michigan, US Blaise Allaz, Haute Ecole de Commerce, France Robert W.McGee, Barry University, US David Amborski, Rayerson University, Jeffrey B. Miller, University of Delaware, US Jürgen G. Backhaus, Erfurt University, FR Lucia Miree, University of New England, US Germany Lawrence E. Mitchell, George Washington Frantz F. Butynets, Zhytomyr Technical State University, US University, Philip O’Hara, Edith Cowan University, Australia Anto Bajo, Institute of Public Finance, Croatia Nickolay Nenovsky, Bulgarian National Bank, Roberta Benini, NOMISMA, Italy Bulgaria Peter Boorsma, University of Twente, the Netherlands Barry Pettman, Hull, England Jonathan Bradley, University of West England, Geodfrey Pirotta, University of Malta, Malta England Christopher D. Rogers, University of Dundee, Philip J. Bryson, Bingham Young University, US Scotland Prodromos Chatzoglou, University of Xanti, Joshua Ronen, University, US Greece Alexander Russell, Glasgow Caledonian Mark Chandler, Stockholm School of Economics University, Scotland in Riga, Latvia Vlado Kambovski, Macedonian Academy of Boris Cizelj, SBRA, Belgium Sciences Enrico Colombatto, University of Turin, Italy Mark Saunders, Oxford Brookes University, Patrick Dawson, University of Aberdeen, England Scotland Ron Singleton, Western Washington Jayesh Dahya, Baruch College, US University, US Tran Dat, National Economics University, Vietnam Hideaki Shiroyama, University of Tokyo, Japan Mieczyslav Dobija, Krakow University of Jan Smolarski, University of Stockholm , Sweden Economics, Poland Branislav Šoškić, Montenegrin Academy of Michael Drew, Queensland University of Sciences, Montenegro Technology, Australia Vladimir Stipetić, Croatian Academy of Science, Eva Eberhartinger, University of Croatia Economics and Business Administration, Shyam Sunder, Yale University, US Gabor Peteri, LGI Development, Hungary Hideaki Tanaka, Ministry of Finance, Japan Tauno Kekäle, VAMK University, Finland G. Roland Kaye, University of East Anglia, Metka Tekavčič, University of Ljubljana, Slovenia England Jean Tesche, US Treasury, US David M. Kemme, University of Memphis, US Richard Thorpe, University of Leeds, England Herbert Kotzab, Copenhagen Business School, Roland Tuninga, Maastricht School of Denmark Management, the Netherlands Chandrasekhar Krishnamurti, Monash Tony Verheijen, The World Bank, US University, Australia Kenneth Kriz, University of Guglielmo M. Volpe, London Metropolitan Nebraska-Omaha, US University, England Yoji Koyama, Niigata University, Japan Markéta Vylitová, Mercer, Chech Republic John R. Lampe, University of Maryland, US Bruce Webber, London Business School, England Project Note ECPD International Round Table on the Global South: 50 and Beyond?

Following its 2013 Conference, ECPD organized a round table on “Whither the global South in the 21st Century”. Following a very interesting exchange, it was decided to in- vite additional views and opinions and thus initiate a broader discussion on this impor- tant topic. Based on this decision, the Chairman of the ECPD Honorary Council, Dr. Boutros Boutros Ghali, wrote a letter to a large number of personalities and experts in the South and to several institutions, seeking their reflectiona and inputs. A copy of this letter is attached. He letter was accompanied by a background note, the next of which follows:

The Group of 77 celebrates its 50 years in 2014; the Non-Aligned Movement celebrated its 50 years in 2011. The two twin groupings of the developing countries represent an important factor in the world arena. As they embark on the second half of the century of their existence and activity, it is impor- tant to ponder on the nature and prospects of the Global South, and on the challenges and opportunities it will face in the coming period. The South Commission, in its report The Challenge to the South, launched in 1990, noted that: “The countries of the South vary greatly in size, in natural resource endowment, in the structure of their economies, in the level of economic, social, and techno- logical development. They also differ in their cultures, in their political systems, and in the ideologies they profess. Their economic and technological diversity has become more marked in recent years, making the South of today even less homogenous than the South of yesterday. Yet in this diversity there is a basic unity. What the countries of the South have in common transcends their differences; it gives them a shared identity and a reason to work together for common objectives. And their economic diversity offers them opportunities for co-operation that can benefit them all.” The Commission went on to identify some of the bonds that linked the coun- tries of the South and were the basis of their solidarity expressed at the global level by the Group of 77 and the Non-Aligned Movement, including: • “their desire to overcome poverty and underdevelopment and secure a better life for their citizens”; • the fact that they “are unfavourably placed in the world economic system” and that“they are individually powerless to influence these processes and in-

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stitutions and, hence, the global economic environment which vitally affects their development”; • and that, for the above reason, “they have made a collective demand for the reform of the international economic system so as to make it more equita- ble and responsive to the needs of the vast majority of humanity-the people of the South”. The Commission concluded that “The struggle for a fairer international sys- tem has consolidated their cohesion and strengthened their resolve to pursue united action”. Twenty-five years have elapsed since this broad definition of the South was originally formulated. This has been an eventful, turbulent and challenging period for the Global South, as the international community underwent pro- found changes and experienced serious economic, financial, political and ge- opolitical crises. The aim of the ECPD exercise, undertaken in cooperation with the Group of 77, is to elicit views and opinions about the state and prospects of the Glob- al South from distinguished national leaders and personalities that have been engaged in and/or are familiar with the joint efforts of the developing coun- tries to confront challenges of development and to evolve an equitable world economic and political order through the United Nations. Among the issues that merit attention, for example, are: • what is the contemporary raison d’être of the Global South; • how to harness the potential of the rapidly evolving and diversifying South-South cooperation and at the same time to give it an inspiration and meaning that differs from the mercantilistic, neo-liberal rationale that has prevailed in traditional North-South economic dealings; • how to improve the efficiency, efficacy and influence of the Global South in the international arena, given its growing group potential and power; and • what are the elements of unity in great diversity that is characteristic of the developing countries that belong to the Global South, and how can this unity be translated into a platform of basic principles and objectives, or a charter of the South that can have a lasting value and contribute to the struggle to evolve a positive and cooperative global order and main- tain world peace. This Round Table discussed the same topic, and considered the papers re- ceived in advance and made them available to the participants. Introduction ECPD Second International Round Table “The Global South – At 50 And Beyond” Belgrade, October 25, 2014

The second ECPD International Round Table on the Global South was or- ganized and held in Belgrade, on 25 October 2014. It was held in continua- tion of the tenth ECPD International Conference on reconciliation, tolerance and human security in the Balkans. The first ECPD International Round Table on the Global South was organ- ized in 2013 to discuss whether the 21st Century could be the Century of the Global South,while the second Round Table was organized with the aim to consider the old and new international economic order and to mark the Fif- tieth anniversary of the Group 77. The organizer of the Second Round table (ECPD) was directed by the no- tion that the architecture of the old (and actual) international economic or- der was created by and in the interest of the developed, mostly old coloni- al states. Interests of underdeveloped countries and colonies were almost ne- glected. In the meantime the world order has been dramatically changed. The decolonization was successfully completed, new independent states es- tablished and Global South became reality, whithin which new great econo- mies are emerging. Trough the time the world political and economic order assumed new geo- political form. In the early 1960s it was consisted of two political and mili- tary coalitions (Eastern and Western) and the Third world (Southern). Each coalition adopted rules of internal economic relations. The Council for Mu- tual Econimc Assistance (Comercon) was established to regulate economic cooperation among countries of Eastern coalition, while the Western coali- tion adopted Threaty of Rome on which basis the European Economic Com- munity was established to regulate economic cooperation among its mem- ber countries. The Third world, however, remained unorganized and subjected to the com- petition of the two coalitions, serving for a long time as a “market taker” and the “raw material giver”.At early 1960s the Non-Aligned Movement (NAM) was established. As a group of the Third world countries (without the largest – China) the NAM was formed to challenge the two coalitions rather then struggle for rearrangement on the old international economic order. In the same time (1967) the Group 77 was established (also without China) with the aim to articulate and promote their collective interests and enhance their

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joint negotiating capacity on the major economic issues within the United Nations system. The strength of the Group 77 and its capacity was far behind European Economic Community, not to mention European Union. The European Center for Peace and Development realized that the old inter- national economic order should be reformed or replaced with the New one, invited the numerous scientific workers, from almost all over the world to discuss the matters, comment and/or propose solution for establishment of the new international economic order, which would better suite the Global South countries. The Second ECPD International Round Table was attended by the most par- ticipants of the Tenth ECPD International Conference. It was chaired by H.E. Ambassador Idriss Jazairy, who presented his opening address. H.E. Mr. Boutros Boutros-Ghali, former UN Secretary-General and actual President of the ECPD Honorary Council, initiator of holding the Round Table (his let- ter of invitation, endorsed) was not able to attend the Rounde Table. Howev- er, most of the attendees presented their papers, spoke and/or discussed the issues indicated in the Agenda.

The following papers presented by their authors are included in the Proceedings His Excellency, Ambassador Idriss Jazairy, in his opening remarks referred to the evolving circumstances within which the Global South operates. He reviewed, with some critical tone, the South’s response and suggested some conclusions as to where the Global South should move from where it now stands. Two Chinese scientists, Professor dr An Chen and Professor dr Fan Yang, sent to ECPD their study on reforming the old and establishing the New In- ternational Economic Order, to be presented at the Scond ECPD Round Ta- ble. Referring to the Global South Coalition (GSC) and the Group 77 work, they emphasized the necessaty of reforming the old and/or establishing the New International Economic Order and brought our some specific Chinese points of view on these matters. H.E. Mr. Abdlatif Y Al-Hamad, being also unable to attend the Round Ta- ble, sent his paper which was, as well, presented at the Round Table. In his paped he summerized accomplishments the Group 77 achieved and at the same time suggested what the Group 77 should do in the new and dramati- cally changed circumstances. Proffesor drPaolo Acanfora in his paper confirmed that the best way to de- scribe the present international conflicts is the one “Sam Hunington came up with” in his Clash of Civilization. He tried to defy a new concept of cosie- 5 Introduction ty, that of Shared Society and modernity where all nations can live together, sharing a common sense of belonging and maintaining their own identities. H.E. Professor Idriss Jazairy, besides his opening remarks, presented the ad- ditional paper titled:”In defense of special procedures of the Human Rights Council: An alternative narrative from the South”, in which Ambassador Jazairy discusses the changing environment for the Global South and its evolving role in the world affairs. Mr. Ismail Serageldin in his paper analized the Old International Econom- ic Order created on the Bretton Woods results: the International Monetary Fund, the World Bank and the International Trade Organization. According to his views, these institutions were designed by and served the interest of colonial powers. He analized further the dramatic changes in the world eco- nomic order and demanded for new approaches towards establishing such an international economic order which would better satisfy needs of less devel- oped countries. PhD candidate, Mr Kemal El Shairy on his presented paper “Curse of Oil – the Lybian Case” analised devastating internal and external policy of late Moammar El Ghadafy and its consequences. The Lybian February Revolu- tion and aftermath has also been deliberated by Mr. Shairy. Speaking about South-South Cooperation, Dr. Branislav Gošović said that for five decades South-South Cooperation was an orphan of the internation- al development agenda; it was in the shadow of North-South Cooperation. At the same time, he highlited the major reason why it was so and stated that now when the big economies in the Global South are emerging the circum- stances for South-South Cooperation are improving. Professor dr Raoul Weiler and Professor Dr. Timi Ećimović in their joint paper said that since the end of 19th century sciences were undergoing trans- formation from the sciences of nature to the sciences of mankind. They tried to clarify their transformation and its complexity. BOUTROS BOUTROS GHALI Letter of Invitation

Once again, on account of other obligations, I regret deeply to be unable to take part in this tenth ECPD annual conference. I would have liked to be again in Belgrade and in this region, which I am attached to and familiar with its problems which I experienced during my term as the UN Secretary- General. I welcome and congratulate ECPD on its excellent, highly valuable work over the last three decades, and encourage it to continue and expand its signifi- cant activities. Problems besetting the West Balkans today are similar and often identical to those experienced by developing countries in different parts of the world, namely those arising from the interrelated challenges of: a) attaining devel- opment objectives and aspirations; b) maintaining peace, including domestic peace; c) protecting national sovereignty and dignity; and, d) playing a role and having an influential say in the conduct of world affairs. It is important to recall that some 50 years ago, these very objectives brought together lead- ers of developing countries from Africa, Asia and Latin America in our host city Belgrade, objectives which, to the present day are shared by all develop- ing countries and which they promote jointly through their group action in the United Nations and in the global arena. Lessons learned and experiences in this region are of relevance to all devel- oping countries and especially to the Arab countries, to the United Nations, and also concern multilateralism and global governance. Here, I single out the need to manage and respond to realpolitik practices of contemporary ge- opolitics, which have resuscitated some ghosts from the recent and more dis- tant past. Today, they continue to affect and are felt acutely in the West Bal- kans, as well as in the Arab world, both well-known for their turbulent histo- ries, especially in the 20th century. How your countries and peoples deal with and confront these multiple, in- terrelated challenges of peace and development is thus of wider, global sig- nificance. I insist that in these efforts it is essential to transcend bigotry, religious and political fundamentalisms and populisms, and jointly to address the root

* President of the ECPD Honorary Council, Former Secretary-General of the United Nations

The European Journal of Management and Public Policy Vol. 13, No.1 (2013) • issn 1726-6475 7 B.B. Ghali: Letter of Invitation causes of old and new problems, in search for solutions through common ef- forts, solidarity and enlightenment. ECPD, as an institution established un- der the UN mandated University for Peace, has been trying to contribute to this goal through its unique activities. It is my sincere wish that in this manner it will also contribute to rebuild- ing, on new foundations, a community of peoples and nations that existed in the region during the era of SFR Yugoslavia, by promoting economic coop- eration, mutual trust, and solidarity in the quest for common welfare in the West Balkans. As someone who comes from Egypt, today facing social, economic and polit- ical upheavals, and wars in the Arab world, I also wish to salute the eff orts by ECPD to revive its important earlier work on development and South-South cooperation, domains which can help Arab countries to solve and overcome their internal problems. I wish you success in your deliberations and proceedings. Boutros Boutros-Ghali Former Secretary-General of the United Nations President, ECPD Nonorary Council IDRISS JAZAIRY Opening Remarks

Last year, our ECPD conference addressed the secular change in the environ- ment of the Global South. We asked ourselves whether the latter could regain the initiative of setting the global multilateral agenda. Would we be equal to the task of promoting broader-based accountability of global institutions still reflecting the balance of powers emerging from WWI? In other words, could we succeed in making world standards less power-driven and more value- driven? Finally we raise the issue of whether the South-South format could continue to effectively enhance through cooperation and solidarity the long- term interests of the developing countries. Basically my assessment was that the South was sitting on the horns of a para- dox: When it was economically weak but politically strong and united, it was able to reshape, if not the reality, at least the international agenda on the reform of the world economy. But when it later became stronger and able to generate over half of world GNP1, its status was downgraded from “market maker” to “market taker” in a globalised economy. I referred however to the fact that the Global South had an historic opportunity, as the locomotive of world econom- ic growth 2010–20132, to participate more effectively in channelling the global forces that shape the international economy and to make them subservient to the acceleration of income convergence between South and North. Since we met in these auspicious surroundings last year, many events have had a direct bearing on last year’s assessment of “whither the Global South”. This year, with the benefit of our previous analysis of 2013 on secular changes in the world environment of the Global South, we can assess the evolving circum- stances within which the South operates. This is the purpose of the first part of my presentation. Against this background, I then propose to review critically the South’s response thereto. Such is the purpose of the second part of this presenta- tion. In the third part of my remarks, I will suggest some policy conclusions as to where the Global South should move from where it now stands. My presentation does not claim academic rigour nor aim at providing an ex- haustive picture of the challenges and opportunities which lie ahead. It will

* Ambassador; Permanent Representative of Algeria to UN office in Geneva, 1 50.4% versus 49.6% according to IMF World Survey 2014 2 UNCTAD Trade and Development Report 2013

The European Journal of Management and Public Policy Vol. 13, No.1 (2013) • issn 1726-6475 9 I. Jazairy: Opening Remarks have served its purpose if it triggers a discussion from which new approach- es may emerge. i. On the evolving environment within which the South has been operating recently The overall climate of the world economy has been sullen over the past year. As noted with concern by the recent Summit of the G77 plus China, we have witnessed since the beginning of this Millennium increasing concentration and asymmetry in the distribution of wealth world wide but more special- ly in some major developed countries. This was graphically demonstrated by Professor Piketty in his book “Capital in the Twenty-First Century”. The at- tendant increasing polarization of incomes is leading to an intensification of inequality which appears to be a market failure of neo-liberal globalization where fiscal policies do not mitigate income gaps sufficiently. While the Bretton Woods institutions and their main sponsors long claimed that such policies had benign effects on growth, probably being conducive to savings and therefore helpful to investment, it now appears that empirical ev- idence points in the opposite direction. Indeed a recent publication of IMF3 shows that inequality reduces growth and that if growth occurs while leading to greater inequality, it is unlikely to be durable. This together with the sub- stantial bailouts of the main culprits of the 2008 crisis goes a long way toards explaining the limited impact of macro-economic policies which have been taken to overcome the obstacles to growth. Thus since the 2008 crisis, continental Europe has been in and out of reces- sion, latching on to austerity policies and fiscal restraint at a time when even the IMF recognizes4 the inappropriateness of its usual prescriptions as a way out of the current slowdown. The ECB is only now engaging on some condi- tional quantitative easing. When in the past developing countries were in cri- sis, the IMF was wont to impose through structural adjustment budget cuts, fiscal tightening, cut down on subsidies and an ending of such “State prof- ligacy “ as engaging on Keynesian infrastructure development programmes to fight against unemployment. However when the US and other developed countries were durably affected in the aftermath of the crisis of 2008, the IMF reversed its policy and advocated both quantitative easing and the appropri- ateness of launching public works financed through borrowing. This course of action helped the US and the UK to avoid the repeat crises of continental Europe albeit at the cost of added indebtedness. The pick-up of their economy however was tardy and not sufficiently vigorous to relay the developing-country locomotive. The pace of the latter had decelerated hav-

3 IMF Note on Redistribution, Equality and Growth, 25 April 2014 4 IMF, World Economic Outlook 2014 10 The European Journal of Management and Public Policy • Vol.13, No.1 (2013)

ing made heroic efforts to support the health of the world economy at arms length for several years. And these efforts were indeed heroic as the develop- ing countries lost half of their hard earned reserves in the process.5 Emerging countries were exposed to massive inflows of speculative capital which moved out of western stock exchanges where interest rates were very low only to move out no less massively when tapering was announced by the Fed. The correlation of investment flows and of asset prices in these countries com- pletely destabilised the economies of several of them. The pro-cyclical manage- ment of foreign funds in emergent countries is making matters even worse. While the debt burden in developed countries was higher than in develop- ing countries, the reserve currency countries i.e. the US, the Eurozone and the UK can, to different extents, service this debt more or less painlessly by printing money, that is by exporting inflation. This, of course, is not the case for developing countries thus making their more modest external debt more burdensome. No wonder then that the rates of growth have been more modest in the South though Africa is putting up a remarkable performance despite all odds. This is a reminder that globalisation has created a degree of interdependence which links growth trends worldwide in the medium term. Many of us considered last year, and I was one of those, that the developing countries should cut a better deal as a counterpart for playing the role of lo- comotive for the world economy over several crucial years after the 2008 cri- sis. Today we all share some disappointment at the South’s limited harvest of benefits even as we witness the loss of momentum of the Southern econo- mies. Not only did the South not derive benefits from its pilot role to pull the world economy out of the crisis but also it was exposed to arbitrary measures which run counter to the very precepts of globalisation and neo-liberalism. I will quote but a few: 1. Increased resort by advanced economies of unilateral coercive measures against emerging and developing countries. Such measures are illegitimate in international law when not sanctioned by the Security Council under Chapter VII of the UN Charter. Much has been said about the develop- ment of smart sanctions which are supposed to spare the living conditions of innocent civilians in the targeted countries. But what is now developing is a new form of economic warfare from which no one will be spared. In a world economic context where the resumption of growth is fragile, such sanctions and unavoidable retaliatory measures must be resorted to spar- ingly. Furthermore, history has proved with the embargo on Cuba, that

5 This information, backed by interesting statistics, is provided by Dr Andreas Antoniades in a pa- per entitled : »Beyond Democratising Global Government. : Furthering South-South Coopera- tion and the Role of BRICS » September 2014 11 I. Jazairy: Opening Remarks

sanctions are ineffective as a way for States to force changes in policies of other states… 2. Side-tracking of WTO rather than to seek to address the legitimate con- cerns of the developing countries in the WTO including ensuring the right to food for the destitute. There is an attempt by advanced countries to seek to obtain through regional transAtlantic­ or trans-Pacific free-trade deals the kind of agreements that have been elusive in WTO because they did not safeguard the interests of developing countries. Such trans-region- al deals sidetracking of WTO would also make it possible to introduce In- vestor-State Dispute Settlement Clauses that even industrialized countries find hard to palate. Reluctance by trading partners is due to the fact that there has been an abuse of international arbitration by multinational en- terprises, not to challenge arbitrary behaviour by expropriating states but to influence or undermine policies of sovereign states.6 3. Subversion of ICT by States for political purposes which undermines this modern mode of communication in its support of the expansion of inter- national trade and jeopardizes globalisation. 4. Claim to extra-territoriality of national legislation: A district court judge in New York can invalidate a restructuring agreement worked out by the Argentine Government with an overwhelming majority of lenders at the request of a “vulture fund”and orders the state to reimburse the fund at face value when the latter bought the bonds at 80% discount. This decision enables the vulture fund to make a 1600% profit on a short-term invest- ment at the expense of 40 million Argentines.7 In anther case, one advanced country, the US, decides of a unilateral ban on trade and financial transaction with a developing country the Sudan without Security Council approval. Another country, France, maintains normal relations with the same developing country and makes a payment to the latter using the sanctioning country’s international reserve currency, the US dollar, to make the payment. The French bank making the payment is subjected to a huge fine by the US. 5. Politicization of technical instruments for international financial set- tlements: The System of International Financial Telecommunications (SWIFT) created in 1973 and based in Brussels is apolitical. It has become part of the life of ordinary citizens in over 90 countries. Now powerful countries strive to politicize it by already having pressured it to ban finan- cial settlements with Iran and now to get it to do the same with Russia.8 These are dangerous precedents which could apply to any other develop- ing or emergent country.

6 See Financial Times: “Toxic talks”, 7 October 2014 7 Le Monde diplomatique : “Les effets planétaires d’une décision de la justice américaine” by Marc Weisbrot, No727 of October 2014. 8 See Financial Times : “A hidden cost to freezing Russia out of finance”, 3 October 2014. 12 The European Journal of Management and Public Policy • Vol.13, No.1 (2013)

These 5 items have a common feature: they are an expression of the dual standards practised by advocates of market forces and globalisation and can turn out to be counterproductive for all trading partners by introducing un- predictability and arbitrariness.

ii. The second part of my presentation reviews critically the response of the Global South to the evolving world environment in which it has been operating of late. This will be done from two perspectives: –– that of the response of the Global South in world fora –– that of progress in South-South cooperation. Both these perspectives were abundantly discussed at the Ministerial Meet- ing of the NAM in Algiers in May 2014 and at the Summit commemorating the Fiftieth Anniversary of the Creation of the G77 in Santa Cruz, Bolivia in June. The issues of the response of the Global South from these perspectives were further deliberated upon at the 60th commemoration of the Bandoeng Conference followed by another NAM-G77+China Joint Coordination Com- mittee meeting in New York in September 2014. This indicates the renewed determination of developing countries to take their future in their own hands and to revert to their initial position of market makers and not only of mar- ket takers in the world economy. In Santa Cruz, the Global South reiterated in a remarkable show of unity and solidarity its commitment to promote with renewed energy in world fora a new international economic order. Its need had become more pressing than ever in the wake of the world economic and financial crisis of 2008. It made it clear that it would also press for real democratisation of the UN and of the Bretton Woods institutions in terms of both decision-making concerning management and oversight and of end- ing the arcane procedures applied for appointing their Chief Executives. The democratisation of the procedure for designation of the Directors General of ILO and WHO also merit consideration. The ILO, which holds dear the prin- ciple of non-discrimination in employment, has never, since it was created in 1919, had an African or an Asian chief executive. Likewise the WHO has never had an African Director General. Therefore while the General Assem- bly of the United Nations should be given a greater role in the appointment of the Secretary-General as required by the Santa Cruz Summit, this should also be the case in ILO and in WHO. It is particularly shocking that in the latter, the WHO assembly is not even given the authority to chose between two candidate but has to vote on the proposal of a single name proposed by its restricted Board. Bizarre as this may appear, the principle of geographic rotation applied for the selection of the UN Secretary-General is opposed by Western countries when it comes to the appointments of the chief executives of ILO and WHO. 13 I. Jazairy: Opening Remarks

When considering the funding of the UN and of its subsidiary bodies, the G77+China Summit in Santa Cruz expressed concern at the growing imbal- ance between assessed and voluntary contributions. Starving the UN of budgetary resources and giving the possibility for West- ern donors to finance projects à la carte “bilateralizes” what is meant to be multilateral cooperation and undermines the meaning of multilateralism. This unfortunate trend affects not only economic agencies such as UNCTAD but also agencies that are particularly vulnerable to political manipulation such as the Office of the High Commissioner for Human Rights. It is no ac- cident under the circumstances that the majority of the staff in both these agencies remains from western countries. This is particularly disturbing for UNCTAD where the remark applies to both staff and consultants, giving the impression that the elites of the South are not equally qualified to address the economic problems of the South! With the recent doubling of its resources, the OHCHR could also have done a better job at correcting the geographi- cal imbalance of the staff as repeatedly invited to do so by the Human Rights Council, the Secretary-General and the Joint Inspection Unit. I referred earlier to attempts to sidetrack WTO. The main reason for this is the relative success achieved by the group action of the Global South to make this body become more responsive to the basic needs of their peoples. Free-trading countries of the South such as Brazil are supporting the claims of more vulnerable partners to protect their peasant agriculture and to up- hold the right to food. The challenge here for all trading partners is to give new impetus to the Doha Round that pains to deserve the epithet of being “for development” while progressively prying open the stranglehold of the “Quad”9 on the evolution of WTO or lack thereof. As indicated earlier, the advocacy of free trade has not prevented free traders from introducing restrictive practices such as unilateral bans on trade and transfers of funds targeting countries outside their sphere of influence. Cus- toms unions between developing countries can reduce vulnerability of devel- oping countries to such practices. An alternative to SWIFT may have to be put together at the initiative of de- veloping countries using modern communications technology if the current system cannot be insulated from political interference. But there are few al- ternatives to reliance on the current set of world reserve currencies. This would warrant the meeting of a group of experts from the South to mull on the possible elaboration of a code of conduct to protect currencies of account of international transactions from political manipulation by the country of origin of the said reserve currency. Restrictive practices on the transfer of scientific knowledge and technology have also hampered the growth of developing countries. The South African decision in 1999 to permit unlimited access to retroviral drugs at affordable

9 US, EU, Japan, Australia 14 The European Journal of Management and Public Policy • Vol.13, No.1 (2013)

prices for treating citizens contaminated by AIDS was a landmark. It put in perspective a fact that should have been obvious to all that is that the sancti- ty of life has precedence over the sanctity of patents. This timely initiative has given a new twist to the TRIPS in WIPO and was one of the factors leading to the development agenda of WIPO spearheaded by a broad-based group of developing countries. Another recent instance of response of the Global South to restrictive prac- tices from the North is the move of the G77+China Group in support of Ar- gentina. It initiated a resolution which was adopted by majority vote to set up a mechanism for restructuring sovereign debt that will not be open to abuse. Referring apparently to this case and to others I mentioned earlier the Santa Cruz Summit rejected the extra territorial extension of national laws and reg- ulations. It also rejected economic coercive measures imposed unilaterally in particular against Cuba and the Sudan. Last but not least in terms of joint responses of the Global South in world fora is its position in terms of the post-2015 Development Agenda. I men- tioned last year the limited impact of the MDGs on the inequities of the cur- rent international economic system. I stressed at the time that 7 out of the 8 goals had to do with mainly domestic policy prescriptions while the 8th had to do with international cooperation. Not to introduce reforms but just to do what had been decided several decades ago. Goal 1(a) called for the reduc- tion by half by 2015 of the proportion, not the numbers as initially pledged, of people suffering from hunger. The fact that the world was getting closer to this shrunken objective was the cause of wide acclaim. It is presented as a great UN achievement although it would, at the current rate take a full 150 years for hunger to be eradicated.10 This is a far cry from the 15-year time span which the UN High Level Meeting set last year as a goal for the eradi- cation of hunger. Providing the right response, the Santa Cruz Summit emphasized the need for the post-2015 Development Agenda to be broader with coordinated and comprehensive goals leading to rapid, sustained and comprehensive growth. In order for action to be sustainable at the multilateral level, it must be com- plemented by progress of action to reinforce South-South cooperation, both having a systemic interaction. This is the second perspective from which to assess the response of the global South to evolving challenges. The best way to argue persuasively with Northern partners about the neces- sity of doing away with colonial pact approach to trade is to apply patterns of South-South trade which generate employment and local value-added for all trading partners involved. After an initial focus on imports of raw materi-

10 UN Chronicle, Vol. LI, Number 1,2014, “Fiftieth Anniversary of the G77” by Idriss Jazairy, p.13, note2. 15 I. Jazairy: Opening Remarks al from Africa against Chinese manufactured exports, China is now assisting its trading partners in the South in developing their infrastructure and mov- ing up the value chain. Nor is there a better way of alleviating western-imposed conditionality on loans by BW institutions than to make such loans available on economic merit without policy strings attached, in the ambit of South-South coopera- tion. This is what the BRICS have decided to do by creating the New Develop- ment Bank. Admittedly, its paid-up capital of $50 billion is relatively modest when compared, say, with the debts of Brazil and China alone to the World Bank which are in the range of $65 billion. However the new Bank’s author- ized capital is $100 billion and is open to private capital. Irrespective of its capital stock, the founding members will keep 55% of the shares as against 35% in the World Bank. It is not clear however if the largest shareholder in the NDB has a blocking share of the votes as is the case in the WB. The paid- up capital is fully in US$ while this currency is limited to 10% of the World Bank’s capital. The BRICS also decided to set up in the same spirit the Currency Reserve Arrangement with a capital of $100 billion. This is reminiscent of the Chiang Mai currency swap arrangement of about $250 billion set up between 13 de- veloping countries of Asia. Both have the same feature of requiring from bor- rowers an approved agreement with the IMF, above a certain ceiling of 30% of quotas in the case of the CRA. That may explain why the Chiang Mai deal has not so far served its purpose. Hopefully the CRA will be spared such a fate. It will be interesting to see how these two new institutions can protect their activities from the kind of political manipulation of the reserve currency country of origin that I have referred to earlier in this presentation. Both ini- tiatives are still in their infancy and deserve strong support from developing countries to reinforce their autonomy and effectiveness. It is likely that these initiatives and other similar ones like the Asian Infrastructure Bank under the aegis of China will lead by their example. In this case their policies and practice will encourage the Bretton Woods institutions to become more sen- sitive to the aspirations of the borrowers and not only of the lenders. Resort to the creation of new regional and cross-regional financial institu- tions by emergent countries will continue so long as they are prevented from enjoying more equitable representation, side by side with other developing countries, in existing world bodies. It remains to be seen whether this leads to an improvement in the voting power of emergent countries in the Bretton Woods institutions for instance. The paralysis of the modest outcome of the 2010 reform of voting rights in IMF adding some 6% to the share of emerg- ing countries is not a good omen in this regard. 16 The European Journal of Management and Public Policy • Vol.13, No.1 (2013)

Likewise, efforts to open up the recruitment of the Heads of Bretton Woods institutions and to make merit a determining factor in the process, failed to change the status quo of Western dominance of these organizations. While being refused formal recognition as key players in development agen- cies, the more influential developing countries get co-opted to participate in informal for a like the G20 where the agenda is determined in advance by big powers. Discussions are thus circumscribed to status quo issues preclud- ing advocacy of reform by countries of the South whose presence neverthe- less lends legitimacy to G20 decisions. I referred last year to the slow progress towards the entry into force of the GSTP between developing countries which was signed by only about half of its members at Fos do Iguacu in December 2010. Its anaemic performance tends to show that WTO type patterns may not be the only solution to pro- mote South-South trade. Indeed we have witnessed in the course of the past few years a spectacular expansion of trade between developing countries. It now represents 25% of their overall trade as compared to 10% three decades ago. Emerging countries are now leading the process of intensification of trade and financial relations between developing countries. Under their leadership promising new forms of South-South partnership have taken shape. Thus in- dividual emerging countries such as Brazil, Turkey, China and India have en- gaged with Africa as a regional group. These partnerships involve trade, fi- nance and capacity building. They tend to be successful because they are gov- erned by the principles of mutual interest, non-interference in internal af- fairs of partners, respect for sovereignty and shared experience as develop- ing countries. Such formats are now being replicated by France, the EU and even recently for the first time, by the US all of which have organised Summit with Africa. This is increasing the visibility and attractiveness of the Continent in areas other than extractive industries and commodities. The possibility for these novel forms of partnership to proliferate outside the UN in fora over which they have no control has incited Western countries which were previously hostile to using UNCTAD’s budgetary resources for South-South cooperation to reconsider their position. They have now ap- proved the creation in UNCTAD of a unit for cooperation and integration among developing countries 11 years after having eliminated an ECDC unit in the same agency.11 Similar action has been taken by developed countries in UNDP.

11 Branislav Gosovitch Economic and Political Order : “South-South Cooperation – An Opportu- nity for the South to Change the World Economic and Political Order”, Paper of 25 August 2014. 17 I. Jazairy: Opening Remarks iii. Some policy conclusions as to the direction of the Global South’s future endeavours: 1. The old chestnut about delinking the South from the North is neither real- istic nor practicable: it is not realistic because industrialised countries and emerging countries are already one economic and financial cluster repre- senting 90% of world GNP and 2/3 of world population. It could not be practicable in this era of globalisation. 2. It does not make sense to separate South-South cooperation from South- North interaction if only for the following reasons: (a) The trade and financial flows of developing countries are still predom- inantly between North and South. South-South cooperation while not substituting for North-South interaction, can broaden the policy space of developing countries. It can also egg on Northern partners to evolve in their attitude vis-à-vis the South towards a more business-like, win- win partnership. (b) Through greater solidarity between different groupings of the South from the G77+China to the bewildering alphabet-soup list of their dif- ferent sub-groups, developing countries can be increasingly successful in enlisting the support of the North to reshape the world economic sys- tem. Will then the South be finally listened to when it seeks to achieve greater democracy and transparency in international institutions? Will the South be able to reverse the current erosion of multilateralism? Much will depend on its member countries’ capacity to resist the “divide and rule” tactics of the North and to let strategic commonality of inter- est prevail over the pursuit of narrow short-term interests. 3. In their pursuit of the improvement of the fate of their people, national leaders of the South drew up in the ‘seventies of last century, agendas for international negotiations which were transformational of the status quo. From the ‘eighties onward, this agenda lost steam as the Berlin wall went down. An era of triumphant neo-liberalism ensued which prevails to this day and which underpinned the basics of the MDGs and of the outcome of the 2005 UN Summit. The question which remains is whether it will be possible for the South to catch up with the North by continuing to rely on the neo-liberal rationale. It may have looked like the right choice in the heady period between 2000 and 2009 when the rates of growth of emerging countries were exceeding 7% and reaching double digits in some cases, therefore more than dou- bling each decade. Africa’s economy alone has grown fourfold since the be- ginning of the Millennium according to the President of the African De- velopment Bank12. Had this trend continued, “convergence with a venge-

12 Financial Times, FT Special Report : The New Africa, “Continent starts to become master of its own destiny” by Donald Kaberuka, page 7, Monday 6 October 2014 18 The European Journal of Management and Public Policy • Vol.13, No.1 (2013)

ance” of emerging countries which was one of the scenarios I mentioned last year at this ECPD meeting, would have occurred with the US over the next three decades. But the situation is now different. Apart from China, the growth of emerging countries which was previously nearly double that of rich countris is now less than half a percentage point ahead. 13If, as is now more likely, this trend continues to prevail, then the second scenar- io I offered last year, i.e. “convergence with temperance” with, oh so much temperance, will be the bitter lot of the South. The time horizon for catch- ing up under this scenario would be more like 3 centuries.14 So we are back to square one: Will the political leadership of the South revert to a transformational agenda to address traditional and evolving new challenges including environmental protection and climate change? This seems to be the option retained by the Santa Cruz Summit of the G77+China. It remains to be seen how this will translate in joint positions to be taken in North-South fora. A first reality test will be the content of the post-2015 Development Agenda for which a Summit in schedules to take place probably in 2015. 4. The South needs to be aware of the migration of political, economic ad so- cial conditionality from the IFIs to the Human Rights Council. A policy is being shaped to reintroduce in this forum a number of, though not all, the domestic issues which are the subject of conditionality elsewhere. For what reason? Because conditionality may have to be toned down in the BW con- text for reasons of competition with emerging-country lenders or lending institutions. Conditionality is thus in search of, and may have found a new home where some of its issues can legitimately be raised and where some relevant policies may be enforced. Human rights, whether civil and political rights or economic, social and cul- tural rights are in themselves worthy objectives to be pursued by all coun- tries, developing and developed. The trend of the current international hu- man rights machinery is to focus on protection of alleged victims in specific country situations. This results in reducing the political space of mainly de- veloping countries. However this machinery cannot do much to support, through technical assistance and training, national policies of prevention. This is because it lacks budgetary resources and voluntary funding is usually; earmarked for investigative purposes. Despite its reforms of 2008, this machinery remains driven by North-South pressure politics and is therefore far from being value-driven. The South is divided in confronting this new challenge while the North is united. Each country of the South should do its utmost to comply with human rights cov-

13 Estimates of World Bank’s International Comparative Programme, April 2014 14 The Economist, “Briefing Economic convergence: The headwinds return”, pages 24 to 26, 13 Sep- tember 2014 19 I. Jazairy: Opening Remarks enants. South-South cooperation can even be pursued to achieve the high- est standards in this regard; However G77 and NAM solidarity should extend more specifically to defeating politically motivated initiatives to undermine the sovereignty of their member-states. It is recommended that the harmonisation of a G77+China and NAM po- sition on UN human rights issues be promoted by their periodic Summits and that voting discipline be improved as occurs in the Western group al- so known as WEOG and that the diplomatic missions of group members adopt a joint platform on key issues before each session of the Human Rights Council. An CHEN, Fan YANG Senior Professor at Law School, Xiamen University; AN CHEN*, FAN YANG** Ph.D. Candidate of International Economic Law, Xiamen University, People’s Republic of China The Voice from China on Reforming Oieo and Establishing Nieo

THE VOICE FROM CHINA ON REFORMING OIEO AND ESTABLISHING NIEO Abstract: The great career of Global South-South Coalition (SSC) has just entered its fif- ties, if we take the establishment of Group 77 in 1964 as its origin. For half century, in or- der to eradicate the unfairness and injustice embedded in the old international econom- ic order and legal rules, to fight for a better developmentAbstract: environment, The great through career wholeof Global- South-South Coalition (SSC) has just entered its fifties, if we take the establishment of Group 77 in 1964 as its origin. For half century, in order to hearted cooperation and joint action, the Global South has won some achievements, yet eradicate the unfairness and injustice embedded in the old international economic order and not without encountering a number of difficulties. Forlegal the rules,past fiveto fight decades, for athe better course development environment, through wholehearted cooperation of SSC has seen its ups and downs. Confucian philosophyand of joint China action, advocates the Global for a com South- has won some achievements, yet not without encountering a prehensive self-reflection every decade, so as to combnumber the past of experiencedifficulties. for For the the sake past five decades, the course of SSC has seen its ups and downs. of future self-improvement. At this historical turning Confucianpoint, it is philosophyof necessity of to China retro -advocates for a comprehensive self-reflection every decade, so spect SSC’s past accomplishments and difficulties. Contemporaryas to comb theinternational past experience econom for- the sake of future self-improvement. At this historical turning ic circumstances should also be combined to revalue thosepoint, ups it isand of necessitydowns, so to as retrospect to re- SSC’s past accomplishments and difficulties. Contemporary affirm the confidence of this long-term strategy, andinternational to avoid tactical economic short-sightedness. circumstances should also be combined to revalue those ups and downs, In this way, the career of Global SSC could absorb the solearned as to wisdom re-affirm and the rebuild confidence the of this long-term strategy, and to avoid tactical short- original confidence, then ready to sail out once againsightedness. for new accomplishments In this way, the atcareer the of Global SSC could absorb the learned wisdom and rebuild age of “knowing the decrees of Heaven”. For Chinese scholars,the original it is confidence,also necessary then and ready a to sail out once again for new accomplishments at the age of “knowing the decrees of Heaven”. For Chinese scholars, it is also necessary and a responsibility to retrospect the New China’s self-position on the course of SSC, so as to responsibility to retrospect the New China’s self-position on the course of SSC, so as to provide provide another kind of experience from the aspect of ananother involving kind developingof experience country. from the aspect of an involving developing country. It is noteworthy It is noteworthy to point out that China has since 2008to takenpoint theout leadthat Chinain participating has since 2008 taken the lead in participating and promoting the BRICS and promoting the BRICS countries’ activities to applaudcountries’ and embrace activities the reformationto applaud and embrace the reformation of OIEO. Such pioneering of OIEO. Such pioneering undertaking has reached a newundertaking height, ashas in reached 2014 the a worldnew height, as in 2014 the world has seen a substantial breakthrough has seen a substantial breakthrough in reforming the internationalin reforming financial the international regime. The financial regime. The New Development Bank of BRRICS New Development Bank of BRRICS countries is expectedcountries to usher is expectedin a whole to newusher sys in- a whole new system to compete with the World Bank and IMF, tem to compete with the World Bank and IMF, which couldwhich be could taken be as takena newly as generata newly- generated breeze that is now gently blowing from the above of ed breeze that is now gently blowing from the above of duckweedduckweed (“(“风起于青萍之末”), with a possibility to start a chain reaction and to cause the with a possibility to start a chain reaction and to causeButterfly the Butterfly Effect, Effect, and evolves and evolves eventually into a powerful hurricane. Such metaphor is also a eventually into a powerful hurricane. Such metaphor ispowerful also a powerful evidence evidence for a possible for a bright future of the course of South-South collective self- possible bright future of the course of South-South collectivereliance. self-reliance.

Introduction: SSC at the age of “KnowingIntroduction: the SSC at the age of “Knowing the Decrees of Heaven” Decrees of Heaven” While summarizing his own life course of gradual progress and attainments, the While summarizing his own life course of gradualMaster progress Confucius and attainments, said, the Master Confucius said,

!29 * Senior Professor at Law School, Xiamen University; ** Ph.D. Candidate of International Economic Law, Xiamen University, Reconciliation, Tolerance and Human Security in the Balkans People’s Republic of China – New Balkans and European Union – Peace, Development, Integration

The European Journal of Management and Public Policy Vol. 13, No.1 (2013) • issn 1726-6475 21 A. Chen, F. Yang: The Voice from China on Reforming Oieo and Establishing Nieo

At fifteen, I had my mind bent on learning.At fifteen, At I thirty,had my I mindstood bent firm. on learning. At forty, At thirty,I had I stood firm. At forty, I had no doubts. no doubts. At fifty, I knew the decreesAt fifty, of I Heaven.knew the decrees At sixty, of Heaven. my earAt sixty, was my anear was an obedient organ for the recep- tion of truth. At seventy, I could follow what my heart desired, without transgressing what obedient organ for the reception ofwas truth. right. At seventy, I could follow what my heart desired, without transgressing (“what子曰:吾十有五而志于学,三十而立,四十而不惑,五十而知天命, was right . (“魐⋰:吾⼗〸十有五志于学, 15 顺,七⼗〸十从所欲不矩。六十而耳 ,七十从心所欲不矩。”). ”). 1ﰳ三⼗〸十틋,四⼗〸十不惑,五⼗〸十知天命,六⼗〸十 For a human organization, as for anFor individual a human person, organization, there is as also for ana processindividual of person, there is also a process self-evolution and self-promotion throughof self-evolution persistent and learning self-promotion from study through and persistent learning from study practice. As per Confucius’s summary,and practice. the careerAs per Confucius’sof global summary,South-South the career of global South-South Coalition or Cooperation (hereinafter SSC) is now just entering the life stage Coalition or Cooperation (hereinafterof SSC)“knowing is now the just decrees entering of Heaven”, the life providedstage of one recognises the establish- “knowing the decrees of Heaven”, providedment of Groupone recognises 77 in 1964 the as establishmentits origin. of Group 77 in 1964 as its origin. But how shall the phrase “knowing the decrees of Heaven” be interpreted? But how shall the phrase “knowing theAccording decrees to of popular Heaven” opinions be interpreted? among Confucian scholars, this phrase means that “one begins to realize his mission, and endeavours to accomplish it”.2 In- According to popular opinions among Confucian scholars, this phrase means dividuals and organizations have taken on 16different characteristics on this that “one begins to realize his mission,point. Normallyand endeavours speaking, to it accomplishtakes decades it”. to accumulate life experience and Individuals and organizations haveto taken expand on thedifferent field ofcharacteristics vision before individualson this can gradually make sense point. Normally speaking, it takes decadesof their toown accumulate mission (as life for experience Confucius and himself, to this process had taken 50 expand the field of vision before individualsyears), while can most gradually organizations make senseare born of ortheir created with a purpose, and thus own mission (as for Confucius himself,are vested this process with missions. had taken As per50 years),the Charter while of Algiers of Group 77, the SSC most organizations are born or createdcareer with comprises a purpose, mainly and thusthe following are vested categories with of missions: on the politi- cal level, to fully realise the independence of South Countries and to consoli- missions. As per the Charter of Algiersdate equalityof Group among 77, the world SSC nations; career oncomprises the economic level, to promote coop- mainly the following categories oferation missions: and commonon the politicalgrowth among level, Southto fully countries in fields like trade, in- realise the independence of South Countriesvestment, andfinance to consolidate and development equality aid; among on the technical level, to encourage world nations; on the economic level,the exchange to promote and proliferationcooperation of and technologies. common 3 In order to accomplish these growth among South countries in missions,fields like one trade, important investment, approach finance is to fight and for a fairer and more reasona- development aid; on the technicalble level,new international to encourage economic the exchange order (hereinafter and NIEO) through reforming the existed unfair and unreasonable old international economic order (here-

1 See Confucius, The Analects (translated by James Legge), Book II, Wei Chang, Chapter IV. 2 See e.g., Peirong FU, Reading the Analects, available at: http://blog.sina.com.cn/s/blog_4a57bcc­ 15 See Confucius, The Analects (translated by9010004zi.html, James Legge), last Book accessed II, Wei on Chang,August 31,Chapter 2014. IV.FU ascribes the source of this mission to the Heaven, thus the terminology “decrees of Heaven”. He summarizes Confucius’s mission as the 16 See e.g., Peirong FU, Reading the followingAnalects three, available contents: firstly,at: http://blog.sina.com.cn/s/ to take on political and educational activity, in order to make the blog_4a57bcc9010004zi.html, last accessedsociety on August return 31, to the2014. righteous FU ascribes path; secondly, the source to choose of this what is good and hold fast to it, in order to forge oneself into perfectness; thirdly, to understand and accept the hardness and helplessness mission to the Heaven, thus the terminologyembedded in“decrees destiny, andof toHeaven”. do one’s best He is summarizesgood enough. Confucius’s mission as the following3 Besidesthree thecontents: SSC, South-North firstly, to Cooperation take on politicalis also keen and to the comprehensive development of the educational activity, in order to make theworld society developing return countries to the righteous or even to path; the whole secondly, international to society. South-South Cooperation choose what is good and hold fast to it, andin order South-North to forge Cooperation oneself into are perfectness; two critical partsthirdly, of globalto cooperation, but they differ greatly understand and accept the hardness andin helplessness the sense of politicalembedded foundation, in destiny, economic and to foundation, do one’s inherent essence and practical effect. best is good enough. For detailed analysis, see An CHEN, An CHEN on International Economic Law, Fudan Universi- !30 ty Press, 2008, Vol. I, pp.455 – 462.

Proceedings of the Second International Round Table 22 The European Journal of Management and Public Policy • Vol.13, No.1 (2013)

inafter OIEO)4, so as to construct an international environment in which the South Countries can acquire a better chance to develop.5 However, there has always been a contradiction, known as the South–North Contradiction, between the strong powers and the weak states during the course of the development of international economic order and internation- al economic law (hereinafter IEL), since the former have always intended to reserve and expand their vested interests, while the latter struggled to secure equal economic rights and to establish an NIEO. The South–North Contra- diction boils down to the redistribution of wealth around the globe. And the fundamental difference between NIEO and OIEO is based on fairness in re- distributing global wealth. The OIEO has always been known as a serious block against the course of the South Countries seeking for their economic and political independence. It is under this logic that the SSC career could be understood as the construction of a fairer NIEO, which is then bound to closely relate to IEL. As is commonly accepted in the academia in China as well as around the globe, IEL can be mainly divided into international trade law (including trade of goods, services and technologies), international investment law and inter- national financial law. Meanwhile, fundamental issues in public internation- al law such as sovereign equality and the attribution of natural resources can also directly influence the theory as well as the practice of IEL. Consequent- ly, we could review the progress of SSC career in fulfilling its missions by in- vestigating the historical facts of law-making, law-interpreting, law-enforc- ing and law-reforming in these sub-fields or branches of international (eco- nomic) law. Especially at this turning point, it is of great necessity to retro- spect the past and comb the achievements as well as difficulties of SSC in its historical course, and to contemplate the changed and changing background of SSC at present time, so as to look forward to possible future development. With our faith in SSC re-affirmed, we shall set out once again, and promote further this righteous strategy. For Chinese scholars, there is yet another un- avoidable task or mission, to reveal towards the world academia the real atti-

4 In a given historical period, international economic relations in international economic inter- course tend to turn into a kind of relatively stable pattern, structure, or model, which is com- monly labeled as international economic order. The establishment and changes of international economic order are determined by the balance of economic, political, and military strength of members of the international community. In the course of international fighting, compromise, and cooperation, international rules of international economy, i.e., international economic law, binding and enforceable to some extent, are gradually adopted to uphold the existing order. In- ternational economic law is not only an important tool for consolidating the existing internation- al economic order but also a crucial means of promoting the process of reforming the existing order and establishing the NIEO. See An CHEN, The Voice from China: An CHEN on Interna- tional Economic Law, Springer-verlag Press, 2014, p.168. 5 See also What is South-South Cooperation, available at: http://ssc.undp.org/content/ssc/about/ what_is_ssc.html. 23 A. Chen, F. Yang: The Voice from China on Reforming Oieo and Establishing Nieo tude of this newly arising power on SSC course, against the many doubts or even malicious speculations preached in Western world. This Article is thus organised as follows: Chapter I will make a brief review of the SSC course in the past half century; through four sub-chapters of Chap- ter II, different branches of IEL will be investigated in terms of practical ex- periences of law-making, law-reforming and their subsequent performance; Chapter III will try to provide some China-specific points of views on this is- sue; Chapter IV will then conclude. 1. From Bandung to Fortaleza: the Sinuous Course of SSC’s History After the Second World War, the developing countries made strong appeals for the complete transformation of the their accumulated poverty caused by centuries of colonial rule; for the complete elimination of the inequity in the international allocation of wealth; for the renewal of international law-mak- ing; and for the total reform of the inequitable, unjustifiable old internation- al economic order to institute an equitable and reasonable new international economic order. Those appeals, though legitimate, were constantly blocked and confounded by the hegemony of the few, those who carried out the orig- inal colonial hegemony even in contemporary times, and who by all means intended to maintain and extend their vested rights and maintain the estab- lished system of international law-making and the old international econom- ic order, backed up by their accumulated strong economic power after colo- nial rule and plunder. Due to the sharp contrast in power between the South and the North, the course of the South’s pursuit of the legitimate appeals could only advance arduously and slowly. The Final Communiqué of the Asian-African Conference,in April 1955, de- clared to the world the goal and code of conduct of the weak and powerless Asian and African nations, which included the rapid eradication of the evils of colonialism, the maintenance of sovereignty and national independence and international co-operation conducted on the basis of mutual benefit and sovereignty equality. For this purpose, the Asia-Africa nations, “when neces- sary, could take collective actions and take accordant position, or institute com- mon policy, or make forehand consultation in international negotiations so as to stimulate their common economic interest”.6 It can be said that, it was that time when the developing countries had shaped clear strategic thought as to the nature of the South–South coalition under the circumstances of acute South–North contradictions and the sharp contrast in power between the weak South and the strong North. From then on, the SSC started a rather un- smooth yet dedicated journey, which could be roughly generalized under the following categories and historical phases.

6 The Final Communiqué of the Asian–African Conference, An Economic Co-operation; available at: http://big5.china.com.cn/chinese/2005/wlhy50/838285.htm (in Chinese). 24 The European Journal of Management and Public Policy • Vol.13, No.1 (2013)

1.1. Group of 77 The Group of 777, established within the United Nations Conference on Trade and Development (hereinafter UNCTAD) in June 1964, is the most important structure under which the developing countries carry out the SSC strategy and is also an important means for developing countries to renew international law-making and impel the regeneration of the OIEL through the consolidation of otherwise dispersed power. As the largest Third World coalition in the United Nations, the Group of 77 has been in existence for 50 years, during which it has undergone a rough de- velopment process. The Group of 77, in the general course of South–North contradictions, the South–North dialogue and South–North co-operation, has, through this South–South coalition, made great accomplishments in the aspect of renewing international law-making but has also met with enor- mous hardships leading to the diminishment of its influence. The joint struggle of the Group of 77 in its initial period was highly fruitful, and two events stand out. (1) The Group of 77, during the period 1964 to 1968, strongly advocated and instituted at first hand reformative guidelines and jurisprudential principles, inter alia, on non-preferential treatment that is favourable to the developing countries, promoting the partial reform of the old General Agreement on Tariffs and Trade (hereinafter GATT) 1947 legal system.8 (2) In the second place, under the impetus of the Group of 77, the Declaration on the Establishment of a New International Economic Order9 was passed, and the Charter of Economic Rights and Duties of States was adopt- ed by an overwhelming majority10 by the United Nations General Assembly.

7 At this time, the Members of the Group of 77 number 133, although its original name of histor- ical significance is followed. After China’s restoration to its membership in the United Nations and the Permanent Membership in the Security Council, it has kept in close contact with the Group of 77, actively supporting the Group’s defense of the small and weak nations’ legitimate interests, along with their justifiable demands for the renewal of international law-making and the push for regeneration of the international economic order. They usually take a stand under the model of “Group 77 and China”. See Clement Robes (Chair for the Group of 77 and China for 1999), The Group of 77 and China: Current Priorities, New York, 12 January 1999; available at: www.southcentre.org/southletter/s133/s133-06.htm. 8 See, respectively, the Decision of the GATT L/3545,L/4093; Wang Xuan, The Trade Liberaliza- tion Under GATT; and Gao Yanping, The GSP in International Trade, Chinese International Law Journal, 1986, pp.44, 59, 60, 63 and 161–163. 9 Declaration for the Establishment of a New International Economic Order, United Nations Gener- al Assembly document A/RES/S-6/3201 of 1 May 1974, available at: http://www.un-documents. net/s6r3201.htm, last accessed on August 31, 2014. 10 Charter of Economic Rights and Duties of States: United Nations General Assembly document A/RES/29/3281 of 12 December 1974, available at: http://www.un-documents.net/a29r3281. htm, last accessed on August 31, 2014. The Charter was adopted with 120 votes of approval, among which were mainly developing countries; the 6 votes of dissent were from the , Great Britain, the Federal Republic of Germany, Denmark, Belgium and Luxemburg. Ten countries, including Japan, France, Italy, Canada, Austria, Netherlands, Norway, Spain, Ireland and , abstained from voting. 25 A. Chen, F. Yang: The Voice from China on Reforming Oieo and Establishing Nieo

From the early eighties to the mid-nineties of the 20th century, due to the comprehensive effect of various reasons, in many international negotiations, especially the eight-year long (1986–1994) GATT/WTO Uruguay Round ne- gotiations and then emerging bilateral negotiations on concluding invest- ment treaties, the developing countries, failing to jointly take the same po- sition, to make collective decisions or to take joint action, were regularly trapped in the position of inferiority in multilateral negotiations. Developed countries, especially the economic hegemonists, in contrast, could dominate in the institution of grand international trade/investment policy and legally binding game rules (legal rules) under the old system through the exercise of their power to manipulate the whole situation.

1.2. The South Center Therefore, the developing countries, after reflecting upon and summariz- ing the failures and lessons in this phase, recognized the importance of the SSC in the South–North Dialogue and the renewal of international law-mak- ing and commenced to integrate their own power. They reached in 1994 the Agreement to Establish the South Centre, and an intergovernmental organiza- tion, the South Centre, was thereby created by the South for the South, with the main purpose to strengthen the unity of Southern countries and rein- force research on the various issues that developing countries are confronted with, especially those they faced under the circumstances of escalated eco- nomic globalization, along with their supposed common policy orientation and policy on collective action, bringing about proposals before the Group of 77 and all other developing countries as reference or for adoption. Subsequently, the South Centre turned out to be a small think tank that pro- vides tactics for the developing countries. As time lapses, it is evident that the South Centre increasingly performs the role of a think tank in the aspect of assembling the will and power of the developing countries, reinforcing South–South union, promoting South–North equitable dialogue, and mutu- ally benefiting cooperation and the renewal of international law-making. The research of the South Centre emphasizes that, under the escalated devel- opment of economic globalization, the macroeconomic working of the glob- al economy and relevant international law-making were in fact subject to control and manipulation by the few economic powers which comprise the Group of 7 and that no single developing countries could change the status quo on its own. Therefore, in the later international fora and multilateral ne- gotiations on a series of global issues, it is more necessary than ever for the developing countries of the South to take joint actions to win an equitable, justified, and reasonable outcome. To defend the fundamental common in- terest of developing countries, it is imperative for the South to adapt itself to the change of circumstances, through delicate research and scientific design, 26 The European Journal of Management and Public Policy • Vol.13, No.1 (2013)

and to reorient and renew the guidelines of the Group of 77, harmonizing various interests and reinforcing common understanding and internal cohe- sion.11 1.3. Summit Meeting of Group 77 The Summit Meeting of the Group of 77 held in Havana, Cuba, in 2000 was the first-ever high-level and large-scale meeting in the 36 years since the for- mation of the Group of 77, which was attended by heads of states or govern- ments from 132 developing countries to deliberate over the macro working of the global economy, the main themes of which were how to cope with the severe challenges and risks posed by the escalated economic globalization to the South countries; how to press the South–North Dialogue to strive for both the South and the North’s equitable participation in the decision- and rule-making in the macroeconomic working of the global economy; and how to institute an equitable, fair, and reasonable international new economic or- der through mutual South–North beneficial cooperation. The Summit con- cluded with release of the Declaration of the South Summit and the Havana Programme of Action, the latter promulgated with the purpose of implement- ing the declaration.12 Because the Group of 77 is a loose organization which imperatively needs a rather stable core institution, the Summit made a decision to set up the South Coordination Commission, which will include the chairmen of ASE- AN (the Association of Southeast Asian Nations), CARICOM (the Caribbe- an Community and Common Market), OAU (Organization of African Uni- ty), NAM (the Non-Aligned Movement), and similar regional organizations, whose aim is to prepare the South better for negotiations and to follow up on the Summit’s action plan.13

11 See Thirty Years of the Group of 77 (1964–1994), United for a Global Partnership for Development and Peace, South Centre Publications, 1994, pp. 13–16. See also The Future of the Group of 77, South Centre Publications, 1996, pp. 5–11. 12 See Declaration of the South Summit; Havana Program of Action; available at: www.g77.org/ Docs/Declaration_G77Summit.htm and www.g77.org/Docs/ProgrammeofAction_G77Summit. htm, respectively. The Chinese high-level delegation attended this South Summit meeting, at which the then vice premier of China delivered a lengthy speech stressing that the development of economic globalization is in more imperative need than ever of the institution of a fair and reasonable international political and economic order, that South–South cooperation is in the first place a spirit of union while also being an important approach through which the develop- ing countries jointly strive for self-reliance and seek mutual development, that the exaltation of the spirit of union and the further consolidation of South–South cooperation is necessary and emergent when the South is confronted with the same challenges, and that only united could the status of the developing countries in the South–North dialogue be enhanced and could effective- ly participate in international economic decision-making, defending their interests in the pro- cess of globalization to the utmost. See Li Lanqing, Speech delivered at the south summit meet- ing. People’s Daily (China), 15 April 2000. 13 See Martin Khor. Havana summit, a defining moment in G77 history; coordinating commission set up. Third World Economics, No. 232, 2000, pp. 2–3, and 12–14. 27 A. Chen, F. Yang: The Voice from China on Reforming Oieo and Establishing Nieo

The above measure and actions taken attracted the attention of the world and spurred the reunion and rally of the weak Third World nations to emanate fresh spirit of joint struggle. Therefore, it was considered by the internation- al media to mark the turning point in the development history of the Group of 77, symbolizing the new march of the South union to renew international law-making and renovate the international economic order.14 Contemporaneously, the original GATT system has evolved into the WTO system, and the Group of 77, as a developing countries group, is confront- ed with the new assignment of how to contribute to the new system that en- joys the moniker of the “economic United Nations” and of how to enhance its privilege to present its views and to meaningfully participate in decision- making.

1.4. The Launch of the Doha Round and the Accession of China to the WTO Under the circumstances of the developing countries’ reunion and vehement demands, on 10 November 2001, the Fourth WTO Ministerial Conference, held in Doha, Qatar, released the Doha Declaration, which set forth that a new round of multilateral trade negotiations should be launched to center on the development concerns of developing countries, aimed at the neces- sary amelioration and renovation of the existing WTO systems and rules that were part of international economic legislation. At the conference, the Pro- tocol on China’s Accession to the WTO was adopted and China became a formal member of the WTO as of 11 December 2001, which adds to South– South Cooperation and the joint struggle within the WTO system an under- pinning power. From a jurisprudential perspective, WTO regime and its multilateral rules consist of an important component to the contemporary IEL. As a result, the legal essence or legal position of DDR, which has been attracting worldwide attention for 10 years, is a new round of global consultation on how to elim- inate the old unfairness and establish the new fairness and how to carry out law-reforming to a deeper degree against some existed unfair IEL relating to global trade. Topics for negotiation in DDR include not only traditional fields such as ag- riculture, but also novel fields such as service, intellectual property, market transparency, foreign investment, etc., which have far exceeded those of oth- er Rounds of Negotiations in previous GATT period. Such wide range of ne- gotiating topics have led to the conglomeration of various interest groups, whose main political goals may overlap or conflict with each other, partial-

14 See South Summit in Havana to Mark a “Turning Point” for Developing Countries; available at: www.g77.org/summit/pressrelease; see also Khor, ibid. 28 The European Journal of Management and Public Policy • Vol.13, No.1 (2013)

ly responsible for DDR’s really slow progress. On September 14, 2003, the fifth WTO Ministerial Meeting saw no happy ending because of huge di- vergence between the North and South. After two years’ bargains and com- promises, DDR was restarted at the sixth WTO Ministerial Meeting held in Hong Kong during December 13 to 18, 2005, which had broken the stagna- tion since 2003 with some positive progress, yet still left some critical disput- ing matters unresolved. Since the global financial crisis in 2008, lots of coun- tries have seen the uprise of trade protectionism, making the multilateral ne- gotiation even harder to proceed. On the ninth Ministerial Meeting in De- cember 2013, DDR had finally seen some commonly accepted arrangements, also known as Bali Package. China has played a coordinating and promoting role during this process.

1.5. BRICS Leaders’ Meeting As a group of power in the South coalition that cannot be ignored or unde- restimated, the BRICS countries have since 2009 successfully held six rounds of leaders’ meetings, each of which has all yielded plentiful and substantial outcomes. All previous sessions of BRICS Leaders’ Meeting share a common aim to promote the reformation of international financial order, and has ma- de a continuous progress on this subject matter. This proves to be huge and long-term contributions to promote and guide the SSC career. In the recent sixth Brazilian Meeting, the BRICS Leaders have announced the Fortaleza Declaration15, revealing a definite plan to construct a development bank, ai- ming to compete with the existed international financial order and rule sy- stem dominant by the North developed countries, which, for the many South countries, has undoubtedly shown an optimistic future. This continuously deepening cooperation carried out among the BRICS countries especially since 2008 is not only a successful narrow-range demonstration of SSC, but also a very powerful propelling force to the global SSC career. * * * From the above sketchy reflection of the history, it is not difficult to infer that: In the first place, the SSC and the renovation of international economic law- making, from Bandung to Fortaleza over the last 60 years, have advanced along a meandering way. In fact, Ever since the end of World War II (herei- nafter WWII), struggles between powerful, developed states and weak, deve- loping states have been permeating the whole developing process of global economy. The former endeavors to maintain the established IEO and IEL to protect and amplify their vested economic interests, while the latter endea-

15 Available at: http://brics6.itamaraty.gov.br/category-english/21-documents/223-sixth-summit- declaration-and-action-plan, last accessed on August 31, 2014. 29 A. Chen, F. Yang: The Voice from China on Reforming Oieo and Establishing Nieo vors to renew the established IEO and IEL to acquire a level playing field and proper economic rights and interests. For over 60 years, these struggles usually temporarily paused with the two si- des reaching a compromise, after which new conflicts would arise from new contradictions, and so on and so forth. It seems that the historical course could be generalized as the spiral “6C Track” or the “6C Rule”: Contradi- ction →Conflict →Consultation →Compromise →Cooperation →Coordination →new Contradiction…. But each new circle is on a spiral upper level rather than on an exactly repetitive old one, thus pushing IEO and its relating IEL towards a fairer level at a higher development stage. Consequently, the eco- nomic status and rights of the international weak groups are able to acquire corresponding improvements and safeguards. Secondly, the DDR negotiations launched at the Doha Conference and the capriciousness of the Cancún Conference and the Hong Kong Conference, as well as the final initial agreements reached in late 2013 in Bali, in essence, was a new phase in the process of South–North Conflict in the past 60 years and the sinuous SSC and the renovation of international economic legisla- tion. It is also a practical evidence of the 6C Rule. Thirdly, the continuous deepening cooperation among the strong-built BRI- CS countries especially since the 2008 financial crisis, is not only itself a suc- cessful demonstration of SSC, but also a powerful propelling force positive to the global SSC career. Fourthly, taking history as a mirror, one can also discern that, the global SSC career have as of now, at least within IEL practices, restricted to law-making and law-reforming, rather than law-interpreting or law-enforcing. Although the importance of establishing fairer international economic rules and refor- ming the existed unfair ones is needless to emphasize, the life of legal rules is, however, embedded in practice. In other words, to accomplish the Hea- ven granted missions, SSC should not be satisfied with the success of making or reforming rules, it should also pay more attention to the practice. The fol- lowing chapter would follow such logic, and make a succinct survey on this matter under different IEL branches.

2. SSC in International Economic Legal Practices 2.1. SSC-type of Law-Making under UN and its Subsequent Queries UN has always been an important forum where the South countries could jointly express their stand and push for a set of fairer rules to establish. This type of law-making activity saw its climax in 1970s. Under the propulsion of Group 77 and UNCTAD, the 1974 UN Assembly passed the Declaration of Establishing a New International Economic Order, and decided to adopt the 30 The European Journal of Management and Public Policy • Vol.13, No.1 (2013)

Charter of Economic Rights and Duties of States with an overwhelming majo- rity, which were also the most representative SSC-type of law-making under the framework of UN. The jurisprudence in the Declaration and the Charter can be concisely gene- ralized as the following points. In the first place, they established that the economic sovereignty of nations is non-strippable, non-alienable and infrangible. Every State has and shall fre- ely exercise full permanent sovereignty, including possession, use and dispo- sal, over all its wealth, natural resources and economic activities. Each state has the right to nationalize, expropriate or transfer ownership of foreign pro- perty to its nationals, with appropriate compensation. Each state has the ri- ght to regulate and supervise the activities of transnational corporation wi- thin its national jurisdiction and take measures to ensure that such activities comply with its law and conform to its economic and social policies. No Sta- te shall be compelled to grant preferential treatment to foreign investment. (For example, Declaration of Establishing a New International Economic Or- der, Articles 4(e), 4(g); see also Charter of Economic Rights and Duties of Sta- tes, Articles 2, 17.) Secondly, the two instruments established that the principle of the realloca- tion of the world’s wealth and economic benefits in accordance with the prin- ciples of fairness, reasonableness and full equity with an aim to control and eradicate the vicious circle of the wealthy States becoming increasingly we- althy while the poor States become ever poorer, for which the unreasonable and inequitable legal system in areas such as international production assign- ment, international trade, international technology transfer, international ta- xation, international monetary system, international financing, international transportation and high-seas exploitation of natural resources must be refor- med. Meanwhile, non-reciprocal preferential treatment should be accorded to developing countries for this end. Thirdly, the two documents established that all States, especially developing States are juridically equal and, as equal members of the international com- munity, have the right to participate fully and effectively in the international decision-making process in the solution of world economic, financial and monetary problems, inter alia, through the appropriate international organi- zations in accordance with their existing and evolving rules, and to share in the benefits resulting therefrom. International affairs should be jointly con- ducted by States around the world, neither to be monopolized by a few super powers nor to be manipulated by a few wealthy States. Therefore, the existing decision-making mechanism in some international organizations and affairs under which the powerful and big States could bully the weak and small Sta- tes should be transformed. (For example, See Declaration of Establishing a New International Economic Order, Articles 3, 4(a), 4(c); see also Charter of Economic Rights and Duties of States, Preamble, Articles 2.2(c), 17.) 31 A. Chen, F. Yang: The Voice from China on Reforming Oieo and Establishing Nieo

Meanwhile, the collective power formed by agglomerating the scattered strength of many weak nations and developing countries, played its due role at various political and economic stages within UN regime. The majority ad- vantage under the equal voting mechanism was well utilized in the following fields: Firstly, to accelerate various UN organizations to pass and adopt rela- tively fair and reasonable decisions advantageous to developing countries, in- cluding a variety of legally bound decisions. Secondly, to promote the establi- shment of some new organizations and mechanisms within UN, to imple- ment various programs on helping weak and poor nations for their econo- mic developments, and to continuously enact and apply the UN Decades of Development16. Thirdly, to criticize, resist and constrain political and econo- mic hegemony in international society through various debates and resolu- tions in UN. Fourthly, to urge corresponding UN organizations to strengthen the research on, and adopt relevant efficient measures to gradually resolve big problems such as severe imbalance in economic development around the world, severe unfairness in the distribution of global wealth, and continuou- sly expanding gap between North and South. The fundamental legal concepts and jurisprudential principles in these afore- mentioned guidelines and codes for the nature of international instruments is a significant landmark in the development of the basics of the new type of international economic normative system, laying down the foundation for its later further establishment. After an operation of approximately thirty years, those basic legal concepts and jurisprudential principles won the hearts of people around the world and were gradually developed as the opinio juris of the contemporary international community.17 Although this being said, such SSC-type of law-making with its many out- comes have seen lots of obstructing force in the enforcing phase. The de- veloped countries have continuously expressed their opposition against one of the core rules in the Charter, namely the expropriation right of the host states on the property of foreign investors and the accompanied compensa- tion standards.18 This fact has led to some critics that these guidelines are on- ly political slogans rather than applicable legal rules, because of the lack of opinio juris.19 Although traditional theory recognizes that the resolutions of UN Assembly can constitute a very powerful evidence which helps to iden-

16 See South Centre, Thirty Years of the Group of 77 (1964–1994), United for a Global Partnership for Development and Peace, South Centre Publications, 1994, pp.1 – 8. 17 An CHEN, The Voice from China: An CHEN on International Economic Law, Springer-verlag Press, 2014, pp.325 – 326. 18 See Charter of Economic Rights and Duties of States, Art. 2(c). 19 See A. Cassese, International Law, 2nd ed., Oxford University Press, 2005, pp.507 – 509. tify customary international rules,20 there are still a number of scholars pro- pose otherwise. For example, up to this day, in his globally prevalent one-volume teaching material with the title International Economic Law, which was published at 2002 and revised and republished at 2008, Professor Lowenfeld had consist- ently stuck to his American position. The global just proposals and jurispru- dential opinions – such as to reform OIEO, to establish NIEO, to stipulate new norms of IEL, and to maintain and respect the economic sovereignty and economic legislations of each weak nation – strongly advocated by the developing countries who constitute 70 percent of world’s population, were either ignored, or disparaged, or negated. For example, the Charter of the Rights and Duties of States, which was passed with an overwhelming ma- jority in the General Assembly of United Nations in 1974, has won wide- spread identification of international society, and has already formed opinion juris through 2 – 3 decades of practice. Notwithstanding this fact, in Lowen- feld’s globally prevalent teaching material, the Charter is constantly deemed as heterodoxy and “departure from the traditional international law”21, thus with no legally mandatory force. This Article wishes to list out the following queries against such kind of he- gemonic views: 1. The Charter of the Rights and Duties of States, which was passed with an overwhelming majority in the General Assembly of United Nations in 1974, reflects the common national will and theopinio juris communis of the overwhelming majority of members of contemporary internation- al society. Thus, it accords most with the principle of democracy that the minority shall be subordinate to the majority; and it embodies most the principle of human rights (including sovereignty and the right to devel- opment) that safeguards billions of disadvantageous populations’ human rights of international society. US has always been praising itself as “dem- ocratic model of the world” and “guardian for human rights in the world”, and is mouthful of humanity, justice and morality. Then, vis-à-vis the crit- ical issue on the human rights (sovereignty and the right to development) of international disadvantageous groups, how would such a country play fast and loose, or even totally betray and discard the principle of democ- racy and that of human rights, which it consistently holds as the highest criteria? 2. After the adoption of the Charter, “more than a quarter century later”, towards the global opinio juris and legal idea that have already formed

20 See M. Shaw, International Law (1977), p.550. See also I. Brownlie, Principles of Public Interna- tional Law (1966), p.14; see also R. Y. Jennings, The Discipline of International Law, Lord McNair Memorial Lecture, ILA 57 Conference, Madrid, offprint, p.11. 21 See Andreas F. Lowenfeld, International Economic Law, Oxford University Press, 2nd ed., 2008, pp.491 – 493. 33 A. Chen, F. Yang: The Voice from China on Reforming Oieo and Establishing Nieo

through decades of practice by international society, how would such a country go so far as to merely turn a blind eye and a deaf ear, and still de- fine to be “essentially political”? Why could not the Charter be defined le- gal, and become legally bound norms of conduct? 3. For the last 40 years ever since 1960s, as “appeals to sovereignty and other echoes” from global weak groups in the United Nations and other interna- tional fora have been lasting and “continued to be heard”, how would the number one country in the world, who regards “to lead the world” and to guide the future direction of the world as its own responsibility, stuff its ears and refuse to listen, or act as if it had not heard? 4. How would US, who praises itself as pioneer of the era, be always pre- occupied with and unable to part from the out-of-dated, traditional in- ternational legal norms and the colonists’ moral concept, which were established in the colonial era? And vis-à-vis the newly formed interna- tional legal norms which reflect the new time spirit of the 21st century, how would such a country be so incongruous, disdainful, and even hostile to these up-to-dated norms? For every unselfish, magnanimous and impartial law scholars, the above questions are all seemingly worthy to be deliberated, doubted and compared; and these questions are also not too difficult to be dissected, distinguished from right and wrong, and chosen between acceptance and rejection.

2.2. SSC-type of Law-Reforming under GATT and its afterwards Practice In October 1947, 23 countries signed General Agreement on Tariffs and Trade (hereinafter the GATT 1947) in Geneva, and then founded a corre- sponding organization. The purport of this Agreement is to promote inter- national cooperation on tariffs and trade around the world, thus to liberalize international trade. The powerful majority of then participants were western developed countries. Contents of relating provisions of the Agreement main- ly reflected the interests and demands of the western developed countries led by US. At that time, most countries from the third world were still under colonial or semi-colonial domination, with no representatives being able to participate. Consequently, their interests and wills could not be reflected let alone respected in this Agreement. It is stipulated in GATT 1947 that all Contracting Parties should grant un- conditionally reciprocal treatments to each other in international trade, sub- stantially reduce the tariffs on an equal footing, and gradually realize the lib- eralization of international trade.22 This principle is basically fair if applied among developed countries whose economic development levels are simi-

22 See e.g., GATT 1947, Article I(1). 34 The European Journal of Management and Public Policy • Vol.13, No.1 (2013)

lar. However, it is obviously unfair to unconditionally apply this principle be- tween the developed countries group and the developing countries group, as their economic development levels differ greatly.23 With developing countries reducing their import tariffs, developed countries can seize lots of benefits on the basis of their advanced producing technology, abundant capital, strong competitive capacity and tremendous total amount of exports. On the con- trary, far lesser benefits are developing countries able to make from an equal reduction in tariffs of developed countries, because of their weak competitive capacity in international market and their tiny total amount of exports. What is the worse, reducing tariffsequally in both developed countries and devel- oping countries always incur loss of internal markets to developing countries, damage to their national industry and shrinkage in their external trade. From middle 1940s to 1960s, numerous weak states around the world had got rid of foreign domination and won independent status, ready to partici- pate in international economic and trade affairs on their own will. They in- creasingly found and noticed in practice that the IEL principles and relating norms embedded within GATT 1947 were deeply characterized by OIEO. Along with old principles and norms in other fields of IEL, the IEL princi- ples and relating norms embedded within GATT 1947 are also constantly confronted with the historical demand for ceaseless and fundamental refor- mation. Through years of united campaign of numerous developing countries, GATT 1947 as an international conventional organization was forced to make par- tial refinements and reformations for as many as three times with regard to the originally rigid system of unconditionally “reciprocal, most-favored-na- tion, and nondiscriminatory treatment,” respectively, in November 196424,

23 Generally speaking, there no longer exists unfair economic intercourse between contemporary developed countries and developing countries based on unequal treaties. The overall economic strength of the developed countries is still incredibly strong after hundreds of years of accumula- tion and exploitation. Multinational enterprises based in these countries with exceptional man- agement techniques enjoy overwhelming advantages in technology and capital. Seducing the developing countries and their domestic industries, which are weak and vulnerable after years of exploitation as colonies, into competing freely with the developed countries and their multi- national enterprises in the international market, is no difference from seducing the developing countries into suicide. This is nothing but a simple common sense. The extremely unfair result of a fight between a well-trained boxer and a woman born weak and illy-cared-for after birth is obvious and self-evident, especially when they are following the same rule. In order to rectify the actual unfairness hidden behind the formal fairness, it is necessary to grant weak developing countries unilateral preferential treatments, so as to counterbalance their sufferings and losses in history. Such idea of fairness is pragmatic as well as scientific. Karl Marx had pointed out near- ly a hundred years ago while dissecting the equal rights that: to avoid all those malpractices, the rights should be unequal rather than equal. See An CHEN, On the Substantial Development of Equity over Equality within the Principle of Equality and Reciprocity, in An CHEN on Interna- tional Economic Law, Fudan University Press, 2008, pp.444 – 454. 24 See UNCTAD, Proceedings of the United Nations Conference on Trade and Development, Vol. I (Sales No.: 64.II.B.11), United Nations, 1964, pp.18, 25-26; See also United Nations, About GSP, 35 A. Chen, F. Yang: The Voice from China on Reforming Oieo and Establishing Nieo

June 1971, and November 1979. The Nonreciprocal and Generalized System of Preferences especially to products exported from developing countries and that in tariffs was gradually approved and confirmed step by step.25 Specifi- cally speaking, [A] In November 1964, the GATT Contracting Parties agreed to add a spe- cial Part IV containing Articles 36–38 with title Trade and Development ad- vantageous to developing countries. Thus, the equitable principle of non-rec- iprocity favorable to international weak groups was initiatively enacted in GATT regime. [B] In June 1971, the GATT Contracting Parties approved a waiver to Ar- ticle I of the General Agreement for 10 years in order to authorize the GSP scheme.26 [C] Later, in November 1979, the Contracting Parties decided to adopt the Enabling Clause. Decision of the Contracting Parties of 28 November 1979 (26S/203) entitled “Differential and more favourable treatment, reciprocity and fuller participation of developing countries,”27 created a permanent waiv- er to the most-favored-nation clause to allow preference-giving countries to grant preferential tariff treatment under their respective GSP schemes. This Enabling Clause was later absorbed in GATT1947, and became one specific paragraph. 28 Thus, the international weak groups eventually succeeded in seeking a sig- nificant and permanent law-reforming relating to Article 1 of GATT 1947: from “unconditionally reciprocal treatments” finally reforming to “the devel- oped countries do not expect reciprocity” at all. As mentioned above, such a process has taken a period at least of 15 years, from 1964 to 1979. This process gave a crucial enlightenment and proof to the international weak groups: Notwithstanding the path for their seeking law-reforming has inev- itably been rugged and tough, rather than smooth, however, by unswerving collective struggle, they will surely win a bright future. The subsequent practices of such reformed rules are, however, a different sort of story. From 1970 on, relating GATT Contracting Parties began to gradu-

at http://www.unctad.org/templates/Page.asp?intItemID=2309&lang=1., Oct. 02, 2010; United Nations, The History of UNCTAD 1964-1984, at http://www.unctad.org/templates/webflyer.asp? docid=13749&intItemID=3358&lang=1&mode=downloads., Oct. 02, 2010. 25 See, respectively, the Decision of the GATT L/3545,L/4093; Wang Xuan, The Trade Liberaliza- tion Under GATT; and Gao Yanping, The GSP in International Trade, Chinese International Law Journal, 1986, pp.44, 59, 60, 63 and 161–163. 26 GATT, Generalized System of Preferences (Decision of 25 June 1971, L/3545, BISD 18S/24), at http://www.lexisnexis.com/, Oct. 22, 2010. 27 GATT, Differential and More Favourable Treatment Reciprocity and Fuller Participation of De- veloping Countries(Decision of 28 November 1979 , L/4903, BISD 26S/203-205), at http://www. wto.org/english/docs_e/legal_e/enabling1979_e.htm., Oct. 22, 2010. 28 See GATT 1947, Annex I, Ad Article XXXVI. 36 The European Journal of Management and Public Policy • Vol.13, No.1 (2013)

ally implement GSP29. Although they had granted a certain amount of uni- lateral tariff reduction to developing countries trade partners, with regards to critical trade items such as foods, textiles and petroleum products, multi- ple restrictions had been set. The U.S. even adopted a standard of “needs for competition”, enabling itself to initiate investigation against a certain trade product whenever needs arise. Under such investigation, the U.S. could uni- laterally terminate the preferential tariff of such trade product from develop- ing countries if it had constituted practical competition to like products in the U.S. During the Tokyo Round Negotiation initiated since 1979, developed coun- tries launched another round of counter-attack against the developing coun- tries’ demand for law-reforming. For example, the newly added “Graduation Clause” demands developing countries to undertake more GATT responsi- bilities once their own national strength and wealth had been elevated to a certain level, and relating developed countries would then eliminate them from their original GSP schemes30. And the adoption of conditional most- favored-nation strategy had enabled developed countries to rule out those developing countries who chose not to sign on the package deal of Tokyo Round, even though such strategy is against the very basic of GATT system. It is because of these and other similar measures that prevented developing countries to benefit from GSP as they originally expected. Relating statis- tics of UNCTAD had shown that the GSP-receiving countries’ import-export trade had only increased for only an approximate 2%.31 As for the interpretation and application of legal rules, practical effects of such law-reforming measures are also rather limited. Due to the unrestrict- ed use in Articles 36-38 of ambiguous terms as “in the largest possible mea- sure”, there is a shared concern that it would be difficult if not improbable to interpret these terms on paper into practical legal responsibilities. In GATT’s dispute settlement practices, developing countries had actually cited these articles to argue for their deserved preferential treatments in some case, in which the responsible panels had all adopted a rather conservative attitude, and would only interpret when they had to. In EEC - Restrictions on Imports of Dessert Apples, the Panel reasoned as follows: … the Panel noted that the commitments entered into by contracting parties under Article XXXVII were additional to their obligations under

29 For example, the European Economic Community began this process since 1971, and the U.S. began since 1976. 30 Between 1987 and 1988, the United States and EC both “graduated” Korea from their GSP schemes. The United States also graduated Hong Kong, Singapore and Taiwan. In early 1989, Thailand was partially graduated from United States GSP. 31 See Karsenty and Laird, The Generalized System of Preferences: a Quantitative Assessment of the Direct Trade Effects and of Policy Options. UNCTAD Discussion Paper 18, 1987 UNCTAD, Ge- neva. 37 A. Chen, F. Yang: The Voice from China on Reforming Oieo and Establishing Nieo

Parts I-III of the General Agreement, and that these commitments thus applied to measures which were permitted under Parts I-III. As the Pan- el had found the EEC’s import restrictions to be inconsistent with specific obligations of the EEC under Part II of the General Agreement, it there- fore did not consider it necessary to pursue the matter further under Ar- ticle XXXVII.32 This kind of reasoning was further repeated in other cases33, confirming that preferential treatments such as GSP are exceptions and deviations from the GATT principles, whose application is actually a small probability event.

2.3. SSC in International Investment Law There were some investment related arrangements in as early as the nego- tiations to establish an International Trade Organization after WWII, whi- ch were then strangled in the cradle together with this proposed organiza- tion. Different from the international trade regime governed by a multilate- ral GATT, cross-border investment was mainly adjusted by customary inter- national law. There were severe diversifications between the capital-impor- ting South and the capital-exporting North on which kind of customary law should be applied. Due to the afore-mentioned movement during 1960s and 1970s to establish NIEO, the envision of the North to enact multilateral in- vestment rules had no longer enough practical grounds, and their expecta- tions to interpret the so-called Hull Rules to customary international law al- so became a failure. When they saw multilateral effort come to a dead end, they would turn to bi- lateral. And Germany was the first to take such approach when it signed wi- th Pakistan in 1959 the first bilateral investment treaty (hereinafter BIT) in modern sense.34 One by one, South countries began to conclude more and more BITs with the developed countries, who had won both the access to de- veloping countries’ domestic markets and the relatively strict standard of fo- reign capital protection, as per these kind of treaties. The U.S. launched its first generation BIT program in 1977, with clear-cut goals to conclude a tre- aty network so as to establish the Hull Rules as customary international law; to protect the existed and potential oversea investments from possible detri- mental measures by domestic governments; and to provide a dispute settle-

32 See Panel Report of EEC – Restrictions on Imports of Dessert Apples – Complaint by Chile, L/6491, adopted on 22 June 1989, 36S/93, 134, para. 12.32. See e.g., Panel Report of United States - Imports of Sugar from Nicaragua, L/5607, adopted on 13 March 1984, 31S/67, 74, pa- ra. 4.6 33 See e.g., Panel Report of United States – Imports of Sugar from Nicaragua, L/5607, adopted on 13 March 1984, 31S/67, 74, para. 4.6 34 See Kenneth J. Vandervelde, The BIT Program: A Fifteen-Year Appraisal, in The Development and Expansion of Bilateral Investment Treaties, American Society of International Law: Proceedings Vol.86, 1992, p.534. 38 The European Journal of Management and Public Policy • Vol.13, No.1 (2013)

ment mechanism with no direct involvement of either host state’s domestic courts nor the U.S. government.35 Later on in mid-1990s, there were two other major attempts to design a mul- tilateral investment governing mechanism, namely the negotiation of a Mul- tilateral Agreement of Investment, and relating negotiation under the WTO framework. Both efforts had failed, although possibly due to different rea- sons36. These historical facts have led to the fact that, as of now, the negotia- ting and concluding pattern of investment treaties are still mainly bilateral. Such pattern has arguably derived two levels of consequences. Firstly, it became impossible for the South to conglomerate their strength to gain a better negotiating position in the making of investment rules37, or even worse, there might be a so-called “competition to the bottom” during this process.38 This Article, however, does not agree with the latter deduction, and opines that it is rather the one-on-one South-North confrontation that renders the weak side into unfavorable terms. For one thing, the institutional environment as stipulated as per investment treaties are not the most critical reason to attract foreign capitals. As long as the legal environment of the po- tential destination country is not intolerable, investors will always consider commercial conditions first.39 Another counter-argument could be found in the negotiating process of most BITs, which is usually started by the North countries. The U.S. is always well prepared before such negotiations40. According to José Alvarez, a renowned

35 See Kenneth J. Vandervelde, The BIT Program: A Fifteen-Year Appraisal, in The Development and Expansion of Bilateral Investment Treaties, American Society of International Law: Pro- ceedings Vol.86, 1992, pp.534-535. 36 The failure of MAI is possibly due to the “up-bottom” negotiating pattern, which was way ahead of then historical circumstances, see Chongli XU, Economic Globalization and the Renovation of the Negotiating Method of International Economic Treaties, Comparative Legal Research, Vol.3, 2001, pp.62 – 71. The failure of the negotiation in WTO is possibly due to the collective resistance from developing countries, see An CHEN, New Comments on International Economic Law, High Education Press, 2007, p.286. 37 Collective consciousness is only possible to form in multilateral negotiations, see R. Hudec, GATT and the Developing Countries, Columbia Business Law Review, Vol.67, 1992, p.68. 38 Some scholars have noticed the following contrast: during 1960s and 1970s, the South has through the UN Assembly Resolutions resisted the compensation standard proposed by the North; while they actually had accepted even higher level of standards when they were “divid- ed and conquered”. Due to the relatively inflexible amount of foreign capitals, 0See Andrew T. Guzmán, Explaining the Popularity of Bilateral Investment Treaties: Why LDCs Sign Treaties That Hurt Them, Va. J. International Law, Vol. 38, 1997, p.659. 39 There are a lot of pragmatic analysis based on real life statistics, see e.g., An CHEN, Four Great Safeguards in BITs Shouldn’t be Rashly Dismantled during Sino-foreign Negotiation – Com- ments on Critical Provisions concerning Dispute Settlement in the U.S. and Canada’s Model BITs Text, in The Voice from China: An CHEN on International Economic Law, Springer-verlag Press, 2014, pp.273 – 335. 40 See Andrew T. Guzmán, Explaining the Popularity of Bilateral Investment Treaties: Why LDCs Sign Treaties That Hurt Them, (1997) Va. J. International Law, Vol. 38, p. 659. 39 A. Chen, F. Yang: The Voice from China on Reforming Oieo and Establishing Nieo professor of law and a U.S. official who served on the negotiation teams of BIT, for most U.S.’s negotiating partners, to conclude BIT is almost never vo- luntary and without coercion. Up till today, the U.S. BIT Model is conside- red to be a “take or leave” deal41. While on the other hand, some developing countries with stronger negotiating power such as China, Brazil and India could not entirely subordinate to the developed countries’ arrangements.42 Secondly, it became possible for the South to carry out SSC in a bilateral way, rather different from the collective action in the field of international trade law. As a matter of fact, South-South investment agreements take on unique characteristics than South-North ones, although main articles of investment agreements are similar43. For example, South-South investment agreemen- ts will usually emphasize “development and mutual beneficial” in their pre- ambles44, and are usually elastic in its framework design, so that developing contracting parties can make reserves to their own fit. Some have stipulated “special and differential treatment” clauses45. As to the substantial clauses, South-South investment agreements are also recognizable. For example, they usually take a relatively restrictive definition of the term “investment”46, and are very strict on national treatment clauses.47

2.4. SSC in International Financial Practice As is known to all, the two important international financial organizations established after WWII, namely the International Monetary Fund (herei- nafter IMF) and the World Bank (hereinafter WB), have been manipula- ted by the North for their own national interests. One of its most promi- nent characteristics is the unequal and unfair distribution of voting powers among their Members, top five of which have occupied over 40% of all the voting shares. Another practical rule, although latent, is that the IMF and WB should be run by Europeans and Americans respectively. A mainstream justification for these unfairness assumes that creditors, instead of debtors, should run the financial system. By virtue of their predominant roles in IMF and WB, developed countries, while deciding or approving financial aids or

41 See Gennady Pilch, The Development and Expansion of Bilateral Investment Treaties, ASIL: Pro- ceedings, Vol. 86, 1992, pp.552 – 553. 42 For example, China has seldom discarded its power over investment disputes in its earlier BITs, see Ye JI, Pragmatic Analysis on the BIT Policy and Position of China, Chinese Journal of Inter- national Economic Law, Vol.16, No.3, Peking University Press, 2009, pp.172 – 203. 43 See UNCTAD, South-South Cooperation in International Investment Arrangements, 2005. 44 See e.g., China-ASEAN Framework Agreement, Preamble. 45 See e.g., Treaty Establishing the Caribbean Community, Chapter VII, Art. 59(1). 46 See e.g., Framework Agreement on the ASEAN Investment Area, Art. 2. 47 See Lauge Skovgaard Poulsen, The Significance of South-South BITs for the International Invest- ment Regime: A Quantitative Analysis, Northwestern Journal of International Law & Business, Vol.30, Issue 1, 2010, pp.101 – 130 40 The European Journal of Management and Public Policy • Vol.13, No.1 (2013)

loans to developing countries, always combine various political requirements to their own interests as prerequisites or “conditions”, which often make stri- ct demands on the domestic economic system or political preference of the lending party. The proposal of reforming international financial regime has seen a drastic rise since the 2008 global financial crisis, which originated from the subpri- me crisis in the U.S. People became aware of the extremely astounding fact, that the IMF and WB, who used to play a tutoring role on matters of eco- nomic system or financial governing regime towards the loan/aid recipient country, have shown incredible incompetence on the ex-ante prediction as well as ex-post coping practice on this round of global financial crisis. As a countermeasure, a new combination of powers and a new approach to hold dialogues began to emerge and draw attention from all around the wor- ld. Specifically speaking, there would be regular meetings attended by the le- aders of G7 or G8 consisting of the most developed countries with the lea- ders of several major developing countries. In one of this kind of dialogues held in Japan in July 2008, attended by leaders of G8 with leaders from Chi- na, India, Brazil, South Africa and Mexico, then Chinese Leader Hu Jintao took the lead to give insightful comment on this new approach of South- South Cooperation and South-North Dialogue. He pointed out that: The world is in the course of great changes and adjustments. In recent years, the overall power of the developing countries is on the rise; their cooperation is enhanced; and their influence on international affairs is becoming greater. China, India, Brazil, South Africa and Mexico are all important developing countries. The enhanced coordination and coop- eration between these five nations will not only bring benefit to develop- ment of each nation, but also to the consolidation of South-South Coop- eration, the promotion of South-North Dialogue, and the sacred cause of peace and development of mankind… We should make contributions to the South-South Cooperation and be a role model. On the one hand, we should in joint effort promote multilateralism and democratization of international relation; stand up for the developing countries the right to participate and making decisions; and create favourable external environ- ment for the development of the developing countries. On the other hand, we should play an active part in promoting the reform of international economic, financial, trade system, safeguarding the legitimate right of the developing countries; strengthening the ability of the developing coun- tries to cope with all kinds of risks and challenges; and promoting a bal- anced, harmonious and sustainable development of the world economy.48

48 See, ‘Hu Jintao’s Remarks in the Meeting of Leaders of Five Developing Countries’ at http:// news.xinhuanet.com/newscenter/2008-07/08/content_8512384.htm. All the emphasis on quot- ed words of this article were added by the authors. 41 A. Chen, F. Yang: The Voice from China on Reforming Oieo and Establishing Nieo

In mid June 2009, then Chinese President Hu Jintao and other leaders of the BRIC countries, namely Brazil, Russia, India and China, met in Yekaterin- burg in central Russia to discuss the global financial crisis and economic is- sues. The official Joint Statement declared: We are committed to advance the reform of international financial insti- tutions, so as to reflect changes in the global economy. The emerging and developing economies must have greater voice and representation in in- ternational financial institutions, whose heads and executives should be appointed through an open, transparent, and merit-based selection pro- cess. We also believe that there is a strong need for a stable, predictable and more diversified international monetary system.49 The Times News was one of the first to sense that “a new group has come into being that can raise challenge towards the leading role of the U.S.”50 In light of the rise of the power of SSC that can no longer be bullied, the U.S. called upon the Group of 20 Summit in Pittsburgh to be held in September 2009, in order to bring along the power of emerging economies to tackle the crisis. This is the first time that developing countries can participate in the global financial regulation together with the developed countries. Along with it, the Group of 20 has gradually replaced the Group of 7 to become the most important forum for regulating the international finance. The series of G20 Summits have listed out the objectives and timeframes for this round of fi- nancial regulation. At the G20 Seoul Summit, the developed economies have promised to transfer 6% voting power of their share in IMF and 3% in World Bank to the developing economies, which has never been seen since the es- tablishment of the Breton Woods System. Regretfully, however, with the world economic crisis alleviating, the devel- oped countries have gradually walked out of the most difficult phase of the financial crisis, and began to stall the implementation of the afore-agreed-up- on reforming scheme, notwithstanding their previous promise and the mul- tiple times of capital increase of the developing countries into the IMF and WB51. As a result, the reform of international financial institutions have been staying on the paper for years.52

49 See Joint Statement of the BRIC Countries’ Leaders (Translation provided by the Russian Gov- ernment), available at: http://www.fmprc.gov.cn/mfa_eng/wjdt_665385/2649_665393/t569480. shtml. 50 See The Times: BRIC Challenges U.S. Authority, available at: http://finance.sina.com.cn/money/ forex/20090617/16196362783.shtml. 51 For example, during the G20 Summit in Mexico, 2012, China had increased $43 billion to its capital in IMF, while Russia, India and Brazil had increased $10 billion each, and South Afri- ca $2 billion. 52 To this the BRICS leaders have recently expressed their extreme regret, see Para. 18 of Fortaleza Declaration. 42 The European Journal of Management and Public Policy • Vol.13, No.1 (2013)

Under such circumstance, while keeping pushing the reform progress along with other developing countries, the BRICS countries have also considered to set up a completely new international financial system of their own. After over two years of negotiation and design, the envision of establishing a BRICS Development Bank (also known as the New Development Bank, hereinafter the NDB) was finally brought into fact, when on July 15, 2014, the BRICS countries signed the Fortaleza Declaration, and announced the launch of the NDB and BRICS Contingent Reserve Arrangement. This is the first time that the Breton Woods System led by the U.S. sees a substantial frontal challenge from a competitive international financial order. And the five main challeng- ing countries are all developing countries with heavy weights. Yet together they occupy 42.6% of the global population, 29.6% of the global area, 21% of the global economic aggregate, and almost half of the global foreign re- serve. The amount of their mutual trade constitutes 15% to the global trade, and makes over 50% of the contribution to the global economic growth. It is estimated that the BIRCS will exceed the G7, and occupies 40% of the world in terms of economic wealth after 10 years, provided they keep their current economic growth rates. Also, there are two Permanent Members of the UN Security Council, two enormous countries with population over 1 billion. In one word, these countries are all decisive in their respective region, and can emit critical political and economic influence to their surrounding countries. The primary goal to establish this NDB is dealing with the shortage of capital of the BRICS countries and vast developing countries in their infrastructure development, which, according to the WB, is estimated to count over 1000 billion dollars. Under current global financial order, this need cannot be met by all the available funds added together. As for the allocation of voting power, NDB has adopted the formal equality approach. In other words, the founding nations are regarded strictly as equal regardless of their economic strength53. Furthermore, compared to the usual “conditional loan” provided by IMF or WB, it seems NDB is more flexible on this matter, with a sole purpose to support BRICS countries and other South countries to develop their national economy independently, and to build a much fairer future.54 It is fair to say that the sixth BRICS Leaders’ Meeting and the Fortaleza Dec- laration have shown the vigour of SSC at present time, which is clearly re- vealed through the impact of the NDB on the old international financial or- der. World media’s respond towards this kind of transition is more than vari-

53 Although the allocation of share in Contingent Reserve Arrangement is according to the amount of capitals invested by each members. China has promised to contribute 41% of the total capi- tal in CRA, while Brazil, Russia and India have an equal 18% respectively, and South Africa 5%. Aside from 5% of basic share with voting power equally allocated among the BRICS countries, the rest 95% of voting share are allocated proportionately to the contributions. 54 The term “equality” has appeared multiple times in Fortaleza Declaration, see e.g., pars. 2, 21, 26, 28, etc. 43 A. Chen, F. Yang: The Voice from China on Reforming Oieo and Establishing Nieo ous, and the establishment of NDB is as much praised as blamed. For exam- ple, current World Bank Chief Jim Yong Kim said during his visit to India in July 2014 that, The only competition we have is with poverty…Any bank or any group of institutions that try to tackle the problem of infrastructure investment to fight poverty, we welcome… the World Bank has been well prepared to provide NDB with technical support and assistance.55 While on the other hand, various views of pessimism and depreciation are constantly to be heard, there are even some comments that relate NDB to China Threat Doctrine, preaching that NDB is but a tool for China to real- ize its self-interests.56 Those who are pessimistic about the NDB’s future deem its foundation rath- er loose. The five contracting member states are themselves quite different in terms of multiple economic and political standards, although the general schedule of development promotion is shared commonly among them. There are some back-up statistics such as follows: China’s economic dimension is 28 times that of India, and India’s income per capita constitutes only 10% of Russia’s. India and South Africa are normally regarded as pro-Western dem- ocratic polity, while China and Russia are deemed as authoritarian polity. With these bifurcations in value system and personal interests, which would possibly lead to practical difficulties in the future governance of the NDB, the coordination and cooperation among these countries within NDB are not optimistic.57 Those who depreciate the future of NDB have also their seemingly reasonable concerns. NDB’s total registered capital, which is only $100 billion, seems too little for the severe reality, not to mention that its initial subscribed capital is only half of this number. One can easily find references from the side of glob- al capital suppliers, for example, the World Bank has disbursed $31.5 billion only in one financial year of 201358, while some regional or national develop- ment bank seem even richer. The Brazilian National Development Bank has disbursed $190.4 billion in the financial year of 2013.59 On the side of finan-

55 See Reuters, World Bank chief welcomes new BRICS development bank, July 23, 2014, available at: http://in.reuters.com/article/2014/07/23/worldbank-india-idINKBN0FS1MV20140723, last ac- cessed on August 31, 2014. 56 See e.g., Matt Schiavenza, How the BRICS New Development Bank Serves China’s Interest, Ju- ly 18, 2014, available at: http://www.ibtimes.com/how-brics-new-development-bank-serves-chi- nas-interest-1631664. 57 See relating reports, e.g., what-the-new-bank-of-BRICS-is-all-about, available at http://www. washingtonpost.com/blogs/monkey-cage/wp/2014/07/17/what-the-new-bank-of-brics-is-all- about/, last accessed on August 31, 2014. 58 See The World Bank Annual Report 2013, p.55. 59 See The Evolution of the BNDES’ Disbursements, available at: http://www.bndes.gov.br/ SiteBNDES/bndes/bndes_en/Institucional/The_BNDES_in_Numbers/#The_Evolution_of_the_ BNDES__Disbursements, last accessed on August 31, 2014. 44 The European Journal of Management and Public Policy • Vol.13, No.1 (2013)

cial needs, the number also far exceeds the currently agreed NDB’s capital. 74 ThoseThose whoAccording arewho used toare estimation toused preaching to preaching of the China World China Threat Bank, Threat74 Southwould wouldAfrica certainly alonecertainly not would miss not need thismiss this approximately $2500 billion in its infrastructure in the following decade. chance,chance, to advertise to advertise that NDB that NDBis but isa butnew a new conspiracy of China, of China, through through which which 60 this currentlythisThose currently risingwho are risingempire used empire couldto preaching couldacquire acquire Chinamultiple multipleThreat political would political interests. certainly interests. According not Accordingmiss this chance, to advertise that NDB is but a new conspiracy of China, through to suchto view,such view,China China aims toaims establish to establish and take and a take leading a leading role in role another in another financial financial portalwhich bypassing this currently the slowrising moving empire reformationcould acquire within multiple IMF political and the interests. World Bank. portal bypassingAccording theto suchslow view, moving China reformation aims to establish within IMFand takeand thea leading World roleBank. in With this new financial institution, China’s enterprises could enhance the With thisanother new financial financial portal institution, bypassing China’s the slow enterprises moving reformation could enhance within IMFthe legitimacylegitimacyand theof theirWorld of investingtheir Bank. investing With overseas this overseas new by financialborrowing by borrowing institution, the proposal the China’sproposal of enterprispositive of positive- valuesvalues essuch could assuch enhance“sustainable as “sustainable the legitimacy development” development” of their of investingthis of kind this overseas ofkind multilateral of by multilateral borrowing financial thefinancial framework,framework,proposal which of which positivealso would also values would dilute such dilute theas “sustainablepolitical the political and development” diplomatic and diplomatic implicationof this implication kind of of such investmentsuchmultilateral investment (especially financial (especially thoseframework, thosecarried carriedwhich out by alsoout State-Owned bywould State-Owned dilute Enterprises) the Enterprises)political than and than thediplomatic case of directimplication bilateral of investment.such investment These (especially would all those benefit carried China’s out strategicby the caseState-Owned of direct bilateral Enterprises) investment. than the These case wouldof direct all bilateral benefit investment.China’s strategic These arrangement of its outward capital at the global 75level.75 arrangementwould ofall its benefit outward China’s capital strategic at the globalarrangement level. of its outward capital at the 61 AgainstAgainstglobal the above-listed level. the above-listed views, views, we hold we the hold following the following opinion: opinion: Against the above-listed views, we hold the following opinion: Firstly,Firstly, the establishment the establishment of NDB of NDBwould would certainly certainly not imply not imply the completion the completion of of the buildingtheFirstly, building of the a new establishmentof a international new international of NDB financial would financial order, certainly order, which not which could imply couldalready the completionalready make makean an equalof the rival building of or ofeven a new replace international the current financial IMF and order, the Worldwhich Bank.could Historicallyalready equal rivalmake of an or equal even rival replace of or the even current replace IMF the and current the WorldIMF and Bank. the WorldHistorically Bank. speaking, however, it indeed symbolizes a recent climax and a new start of the speaking,Historically however, speaking, it indeed however, symbolizes it indeed a recent symbolizes climax anda recent a new climax start ofand the a SSC inSSCnew the infieldstart the offield theinternational ofSSC international in the financial field financial of practice.international practice. It is fairfinancial It is to fair envision topractice. envision that It suchis that fair such new financialnewto envision financial institution that institution such would new financialwould play anplay institution important an important wouldrole playinrole bothan in important boththe furtherthe role further constructionconstructionin both of the a South-ledfurtherof a South-led construction international international of a financialSouth-led financial order international orderand the and financialpropelling the propelling order of of reformingreformingand thethe traditionalpropelling the traditional internationalof reforming international thefinancial traditional financial order. international order.As the As traditional the financial traditional Chinese order. Chinese As the traditional Chinese saying goes, “A single spark can start a prairie fire76 sayingsaying goes, goes,“A single “A single spark sparkcan start can astart prairie a prairie fire ( fire ( )”.76 )”. (星星之火,可以燎原 ) ”. 62 星星之呫,可以燎原星星之呫,可以燎原 A similar metaphor is first seen in Shang Shu ( ), a classical book in A similarA similar metaphor metaphor is first is firstseen seenin Shang in Shang Shu Shu ( 《尚书》(“ 《尚书》”),), a aclassical classical book book in an in- ancientancientcient China, China, China, in which in in which which a prairie a prairiea prairie fire fire is fire used is isused toused tosymbolize symbolizeto symbolize the the formidable formidablethe formidable force force force toto keep keep somebody somebody oror something something awayaway ( ).). to keep somebody or something away (若呫之燎于原,不可向迩若呫之燎于原,不可向迩 ). The most famous usage of this phrase is in one of Chairman Mao’s early let- ters, addressing on the future of then Chinese Communist Party’s revolu- 74 74 For detailed For detailed review reviewon China on ChinaThreat ThreatDoctrine, Doctrine, a typical a typicaltype of type malicious of malicious speculation speculation on on China, China,see e.g., see An e.g., CHEN, An CHEN, On the OnSource, the Source, Essence Essence of “Yellow of “Yellow Peril” DoctrinePeril” Doctrine and Its andLatest Its Latest Hegemony60 ForHegemony detailed “Variant”—The review “Variant”—The on China “China Threat “China Threat” Doctrine, Threat” Doctrine: a typical Doctrine: From type of theFrom malicious Perspective the speculationPerspective of Historical on ofChina, Historical MainstreamseeMainstream e.g., ofAn CHEN,Sino-foreign of Sino-foreignOn the EconomicSource, EconomicEssence Interactions of “YellowInteractions Peril”and TheirDoctrine and InherentTheir and ItsInherent LatestJurisprudential Hegemony Jurisprudential Principles,“Variant”—ThePrinciples, in An CHEN, in An“China CHEN, The Threat”Voice The from VoiceDoctrine: China: from From China: An the CHEN Perspective An CHENon International of on Historical International Economic Mainstream Economic Law of Si-, Law, no-foreignSpringer-verlag Economic Press, Interactions 2014, pp.44 and Their– 100. Inherent Jurisprudential Principles, in An CHEN, Springer-verlagThe Voice fromPress, China: 2014, Anpp.44 CHEN – 100. on International Economic Law, Springer-verlag Press, 2014, 75 pp.44 – 100. 75 See e.g., See Matt e.g., Schiavenza, Matt Schiavenza, How the How BRICS the BRICSNew Development New Development Bank Serves Bank ServesChina's China's Interest Interest, , 61 See e.g., Matt Schiavenza, How the BRICS New Development Bank Serves China’s Interest, July 18, July 18,July 2014, 18, 2014,available available at: http://www.ibtimes.com/how-brics-new-development-bank- at: http://www.ibtimes.com/how-brics-new-development-bank- 2014,serves-chinas-interest-1631664 available at: http://www.ibtimes.com/how-brics-new-development-bank-serves-chinas-in, last accessed on August 31, 2014. - serves-chinas-interest-1631664terest-1631664, last accessed, onlast August accessed 31, 2014.on August 31, 2014. 7662 See Mao Tse-Tung, A Single Spark can Start a Prairie Fire (January 1930), in Selected Works of 76 See Mao See Tse-Tung, Mao Tse-Tung, A Single A SingleSpark canSpark Start can a StartPrairie a PrairieFire (January Fire (January 1930), 1930),in Selected in Selected Works Works Mao Tse-Tung, Foreign Languages Press, 1965, Vol. I, pp.117 – 128. of Maoof Tse-Tung Mao Tse-Tung, Foreign, Foreign Languages Languages Press, 1965,Press, Vol. 1965, I, pp.117Vol. I, pp.117– 128. – 128. !57 !57

Reconciliation,Reconciliation, Tolerance Tolerance and Human and Human Security Security in the Balkansin the Balkans – New –Balkans New Balkans and European and European Union Union– Peace, – Peace,Development, Development, Integration Integration The most famous usage of this phrase is in one of Chairman Mao’s early letters, The most famousThe usage most of famousthis phrase usage is inof onethis ofphrase Chairman is in oneMao’s of Chairmanearly letters, Mao’s early letters, The most famousThe most usage Thefamous of most this usage famousphrase of is thisusage in phraseone of ofthis isChairman inphrase one ofis Mao’s Chairmanin oneaddressing early of Chairman Mao’s letters, on earlythe Mao’s future letters, early of then letters, Chinese Communist Party’s revolution. Against addressing on theaddressing future of then on the Chinese future Communistof then Chinese Party’s Communist revolution. Party’s Against revolution. Against addressing onaddressing the futureaddressing on of the then future Chineseon theof thenfuture Communist Chinese of then Communist Party’sChinese revolution. Communist Party’ssome pessimistic Againstrevolution. Party’s revolution.views Against and lackAgainst of confidence,45 Chairman Mao pointed out with somesome pessimistic pessimisticsome someviews pessimisticviews pessimistic and and lack lack views of viewsof confidence, andconfidence, andlack lack of Chairman confidence, Chairmanof confidence, Mao Mao Chairman pointed Chairmanpointed Maoout out Maowith pointedwith pointed out outwith with some pessimistic views and lackA. of Chen, confidence, F. Yang: Thehis Voice usualChairman from China precise on Reforming Mao and pointedOieo profound and Establishing out insight withNieo that the revolution was bound to become his usual precise hisand usual profound precise insight and profoundthat the revolution insight that was the bound revolution to become was bound to become his usual precisehis usual and precisehisprofound usual and preciseinsight profound andthat profoundinsightthe revolution that insight the wasrevolution that bound the“a revolutionprairie towas become bound fire” was tothat becomebound would to becomespread through the whole China, although such “a prairie fire” “athat prairie would fire”spread that through would thespread whole through China, the although whole China,such although such “a prairie fire”“a prairie that “a wouldfire” prairietion. thatspread Against fire”would throughthat somespread would pessimisticthe through wholespread views theChina,through whole and revolutionalthough lackthe China, ofwhole confidence, such wasalthough China, still in althoughsuchChairmanits early coursesuchMao when Chairman Mao made such prophecy revolution was stillrevolution in its early waspointed course still inout when its with early Chairman his course usual Maowhenprecise made Chairman and such profound prophecyMao insightmade such that prophecythe revolution revolution wasrevolution still inrevolution itswas early still coursein was its stillearly when in course itsChairman early when course Mao Chairman whenmade andChairman suchMao was prophecymade metaphorized Mao such made prophecy such as “a prophecy single spark”. and was metaphorizedand was as “ametaphorized singlewas bound spark”. asto “abecome single “a spark”. prairie fire” that would spread through the whole and was metaphorizedand was metaphorizedand as “awas single metaphorized asspark”. “a single as spark”.“a single spark”. China, although such revolution was still Laterin its earlyon incourse China when,This Chairman development rule of new-born-things has been Later Later on on in in China ChinaLater ThisonThis indevelopment developmentChina This rule ruledevelopment of of new-born-things new-born-things rule of new-born-thingshas has been been has been Later on, , Laterin ChinaMao on made,in ThisChina, such development prophecyThis development and rule was ofmetaphorized new-born-thingsrepeatedrule of new-born-thingsastime “a single andhas spark”.againbeen hasin beenmany traditional Chinese poems, proses and repeated time andrepeated again timein manyand againtraditional ,in many Chinese traditional poems, Chineseproses andpoems, proses and repeated timerepeated and againrepeatedtime Laterandin timemany againon in and Chinatraditionalin againmany – This intraditionalChinese manydevelopment traditionalpoems, Chinese expostulationsrule proses ofpoems, Chinesenew-born-things and prosestopoems, kings and andhasproses emperors.been andre- Song Yu, a famous poet in ancient China expostulations to expostulationskings and emperors. to kings Song and Yu,emperors. a famous Song poet Yu, in aancient famous China poet in ancient China expostulationsexpostulations to kingsexpostulations and topeated emperors. kings time and to Songkings andemperors. again Yu,and a emperors. inSongfamous many Yu, poettraditional Songa famous in – Yu,ancient in Chineseapoet thefamous China inWarring ancientpoems, poet Statesin Chinaproses ancient Era,and China exto - be specific, had most vividly hidden this – –in in the the Warring Warring– in– theinStates States theWarring Era, WarringEra,postulations to Statesto be Statesbe specific, Era, specific,to kingsEra, to behad toandhad specific, be emperors.most mostspecific, vividly vividlyhad Song hadmost hidden Yu, hiddenmost avividly famous this vividlythis hidden poet hidden in thisancient this Chi- – in the Warring States Era, to be specific,philosophical had most wisdom vividly inhidden his famous this Ode of the Wind ( 风赋》) in following philosophicalphilosophicalphilosophical wisdom wisdomphilosophical in in his wisdomhisna famous wisdom–famous in inthe Ode his OdeinWarring hisfamousof of thefamous theStates Wind OdeWind Era,Ode of( (to theof be theWind specific,) )in Windin following( following (had ) mostin ) following invividly following hidden this philosophicalphilosophical wisdom wisdom in his in hisfamous famous风赋》 风赋》Ode Ode words:of of the the风赋》 Wind Wind风赋》 (( 风 》)) in followingfollowing words:words: words:words: 风赋》 words:words: The wind originates in-between the earth and the sky, and then gently blows The wind originatesThe in-betweenwind originates the earth in-between and the the sky, earth and andthen the gently sky, blowsand then gently blows The wind originatesThe wind Thein-betweenoriginates windThe originates in-betweenthe wind earth originates in-betweenand the theearth in-between sky, theand and earth the then the sky, andfrom earthgently and the the and thensky,blows above the andgently sky, thenof andblowsduckweed. gently then gentlyblows When it later sweeps across trenches and from the above fromof duckweed. the above When of duckweed. it later sweepsWhen itacross later trenchessweeps acrossand trenches and from the abovefrom theof fromduckweed.above the blowsof aboveduckweed.When from of itthe duckweed.later Whenabove sweeps ofit duckweed.Whenlater across sweepsit laterWhenagglomeratestrenches across sweepsit later and trenches sweeps across at the acrossmountaintrenchesand trench andpass,- a gale thus emerges that would squeal agglomeratesagglomeratesagglomerates at at agglomeratesthe the mountain mountain at thees atpass, and pass,themountain agglomeratesamountain agale gale pass,thus thus pass, atemergesa emergesthegale a mountaingale thus that thatthus emergeswould pass,along wouldemerges a squealits galethatsqueal way that thuswould with emergeswould assqueal asqueal thathigh-spirited would momentum as a roaring flame, and make agglomeratessqueal atalong the its mountain way with aspass, a high-spirited a gale thus momentum emerges thatas a roaringwould flame,squeal alongalong its its way wayalong with withalong asits as a way its ahigh-spirited high-spiritedway with with as a as high-spiritedmomentum amomentum high-spirited as momentumas a aroaringmomentum roaring asflame, flame, a aseven roaring aand androaringthe make makeflame,toughest flame, and pines andmake makedance and bow. It sounds like an angry thunder, and along itsand way make with even as a thehigh-spirited toughest pines momentum dance and as abow. roaring It sounds flame, like and an make an- eveneven the the toughest toughesteveneven thepines pines thetoughest dance toughestdance andpines and pinesbow. bow.dance Itdance It soundsand sounds andbow. like bow.like It an sounds anIt angry soundsangry like thunder, thunder, likean angryan and angryand thunder, thunder, and and even thegry toughest thunder, pines and dancetakes onand an bow. indefinite It takessounds form. on like an It indefiniteanwould angry blow form.thunder, over It mega wouldand- blow over megaliths, break off branches, takestakes on on an an indefinitetakes indefinitetakes on anform.on form. indefinitean Itindefinite Itwould would form. blow blowform. It overwould overIt wouldmegaliths, megaliths,blow blow over breakover breakmegaliths, megaliths,off off branches, branches, break break off branches,off branches, takes onliths, an indefinite break off form.branches, It would and sweepblow overandacross sweepmegaliths, dense across bushes. break dense (夫风生于地, off bushes. branches, (夫风负于地,起于青萍之末;浸淫溪吷,盛怒 and sweep acrossand dense sweep bushes. across dense ( bushes. ( and sweep acrossand sweep dense across bushes. 起于青萍之末;浸淫溪谷,盛怒于土囊之口;dense bushes. 夫风负于地,起于青萍之末;浸淫溪吷,盛怒(夫风负于地,起于青萍之末;浸淫溪吷,盛怒 ( 夫风负于地,起于青萍之末;浸淫溪吷,盛怒泰山之阿,舞于松 and sweep across dense bushes.夫风负于地,起于青萍之末;浸淫溪吷,盛怒 (夫风负于地,起于青萍之末;浸淫溪吷,盛怒于缟囊之⼜⼝口;缘泰둱之阿,舞于松柏之下,飘忽淜滂,激飓熛怒。耾耾雷声,回카错 于缟囊之⼜⼝口;缘泰둱之阿,舞于松柏之下,飘忽淜滂,激飓熛怒。耾耾雷声,回카错柏之下, 忽淜滂,激 熛怒。耾耾雷声,回穴 迕,蹶石伐木, 于缟囊之⼜⼝口;缘泰둱之阿,舞于松柏之下,飘忽淜滂,激飓熛怒。耾耾雷声,回카错于缟囊之⼜⼝口;缘泰둱之阿,舞于松柏之下,飘忽淜滂,激飓熛怒。耾耾雷声,回카错于缟囊之⼜⼝口;缘泰둱之阿,舞于松柏之下,飘忽淜滂,激飓熛怒。耾耾雷声,回카错迕,蹶뿳伐⬨,梢杀林莽。). 于缟囊之⼜⼝口;缘泰둱之阿,舞于松柏之下,飘忽淜滂,激飓熛怒。耾耾雷声,回카错). 梢 林莽。).). 迕,蹶뿳伐⬨,梢杀林莽。迕,蹶뿳伐⬨,梢杀林莽。迕,蹶뿳伐⬨,梢杀林莽。). ). 迕,蹶뿳伐⬨,梢杀林莽。迕,蹶뿳伐⬨,梢杀林莽。). Later on in China, this metaphor has always been used to describe that any great LaterLater on on in in China, LaterChina,Later thison this in onmetaphor metaphorChina, in China,Later this has onhas thismetaphor alwaysin always metaphorChina, been beenhas this usedhasalways usedmetaphor always to to describebeen describe hasbeen used always thatused thatto describeany tobeenany describegreat great used that to thatany describe anygreat great that any Later ongreat in influence,China, this greatmetaphor thoughts, has alwaysnovel regimes influence,been used and greatto new describe thoughts,orders that all anynoveloriginate great regimes and new orders all originate from influence, great influence,thoughts, novelgreat thoughts,regimes andnovel new regimes orders andall originatenew orders from all originate from influence, greatinfluence, thoughts,influence, great from novelthoughts, greatminute regimes thoughts,novel and and indiscernibleregimes newnovel orders andregimes source, new all and minuteoriginateordersas thenew originalandall ordersfrom originateindiscernible breeze all originatefrom in source,Song fromYu’s as the original breeze in Song Yu’s Ode of the minute and indiscernibleminute and source, indiscernible as the original source, breeze as the in original Song Yu’s breeze Ode in of Song the Yu’s Ode of the minute and minuteindiscernible andminute indiscernible source,Ode and of indiscernibleas the the source, Wind, original whichas source, thebreeze gentlyoriginal as in blowsthe Song breeze original from Yu’sWind, in the OdebreezeSong whichabove of Yu’s inthe ofgently Song duckweed,Ode Yu’sblowsof the Ode wouldfrom of thefithe- above of duckweed, would finally turn into Wind, which gentlyWind, blows which from gently the above blows of from duckweed, the above would of duckweed, finally turn would into finally turn into Wind, whichWind, gently which blowsWind, gently fromnally which blowsturnthe gently above into from ablows ofgale, the duckweed, abovewhichfrom the ofcould wouldduckweed,above easily finallyofa crumplegale,duckweed, would turn which anything finallyinto wouldcould turn like easilyfinally intosweeping crumple turn intoup anything like sweeping up dead leaves. New- a gale, which coulda gale, easily which crumple could anything easily crumple like sweeping anything up likedead sweeping leaves. New- up dead leaves. New- a gale, whicha gale,could which easilya gale, could crumpledead which easily leaves. couldanything crumple New-born-things easily like anything crumple sweeping like anythingare up sweepingvested dead born-thingslike leaves.with sweepingup strong dead New- are leaves.vitality, up vested dead New-provided leaves. with New-strongthey vitality, provided they accord with the born-thingsborn-things are born-thingsare born-thingsvested vested with arewith accord arevestedstrong strong vested with withvitality, vitality, thewith strongdevelopment provided strongprovided vitality, vitality, rulethey theyprovided of accord humanprovidedaccorddevelopment they with societywith they accordthe the and accordrule the withof trend withhuman the of the human society and the trend of human history, while all born-thingshistory, are while vested all counterrevolutionary with strong vitality, and providedbackward theyold regimes, accord oldwith insti the- developmentdevelopment developmentrule ruledevelopment of of human human rule society rule societyof humanof and humanand the societythe trendsociety trend and of of andhumanthe human thetrend history,trend history,ofcounterrevolutionary humanof while humanwhile history, all allhistory, while whileand all backward all old regimes, old institutions are bound to be developmenttutions arerule bound of human to be societyreplaced and under the the trend strong of gale,human although history, they while seem all counterrevolutionarycounterrevolutionarycounterrevolutionarycounterrevolutionary and and backward backward and old old andbackward regimes, regimes, backward old old institutionsoldregimes, institutions regimes, old are oldinstitutionsare bound institutionsbound to to arebe be boundare bound to be to be counterrevolutionaryto be indestructible and backwardon the appearance. old regimes,replaced Such old wisdom institutionsunder isthe also strong are well bound gale,reflected to although be they seem to be indestructible on the replaced under thereplaced strong undergale, althoughthe strong they gale, seem although to be theyindestructible seem to beon indestructiblethe on the replaced underreplaced the strong underreplaced gale,bythe the understrong although Western the gale, strong theyscientific although seemgale, proverb totheyalthough be seemindestructible “Butterfly they toappearance. beseem indestructibleEffect”, onto thebeSuch which indestructible wisdomon implies the thatis on alsoa thetiny well reflected by the Western scientific appearance. Suchappearance. wisdom isSuch also wisdomwell reflected is also bywell the reflected Western byscientific the Western scientific appearance.appearance. Such wisdomappearance. Suchchallenge is wisdomalso Such atwell the iswisdom sourcereflectedalso wellwouldis byalso reflected possiblythe well Western turnreflectedbyproverb theout scientific toWestern“Butterflyby have the huge scientificWestern Effect”,changing scientific which influ- implies that a tiny challenge at the source proverb “Butterflyproverb Effect”, “Butterfly which impliesEffect”, that which a tiny implies challenge that aat tiny the challengesource at the source proverb “Butterflyproverb Effect”,“Butterflyproverbence which “Butterfly Effect”,at the implies end. whichEffect”, that implies awhich tiny that challengeimplies a tiny wouldthat atchallenge thea possiblytiny source challengeat turnthe sourceout at to the have source huge changing influence at the end. wouldwould possibly possiblywould turn wouldturn possiblyout out possiblyto to have have turn huge turn outhuge tooutchanging changing have to have huge influence influencehuge changing changing at at the influence the end. influenceend. at the at end.the end. wouldMr. possibly Sun Yat-Sen, turn out the to havepioneer huge of changingChineseMr. democratic influence Sun Yat-Sen, atrevolution, the end.the pioneer during theof Chinese democratic revolution, during the Mr.Mr. Sun Sun Yat-Sen, Yat-Sen,Mr. Mr.Sun the theSun Yat-Sen,pioneer pioneer Yat-Sen,decades ofthe of Chinese theofpioneerChinese revolutionarypioneer democratic ofdemocratic Chineseof Chinesecourse revolution, democraticrevolution, in democraticoverthrowing during revolution,during revolution, thethe the imperial during during regime the the of an- Mr. Suncient Yat-Sen, China and the establishing pioneer of a novelChinese democratic decadesdemocratic republic,of revolutionary revolution, and even duringcourse amid theinthe overthrowing the imperial regime of ancient decadesdecades of of revolutionary revolutionarydecadesdecades of revolutionary courseof course revolutionary in in overthrowing overthrowing course course in overthrowing thein the overthrowing imperial imperial regimethe regime imperialthe ofimperial of ancient ancient regime regime of ancient of ancient decadesoverwhelming of revolutionary disappointed course inand overthrowing helpless!58 moods the imperialafter so regimemany failures of ancient and !58!58 58! drawbacks, has asserted with a chest of faith that: !58 !58 The tide of world history goes forward with great strength and vigour in Proceedings of the Second International Round Table formidable power. The tide would definitely award those who temporize ProceedingsProceedings of of the the SecondProceedings Second International International of the Second Round Round International Table Table Round Table ProceedingsProceedings of the Second of theInternational Second International Round Table Round Table ChinaChina andand establishingestablishing aa novelnovel democraticdemocratic republic,republic, andand eveneven amidamid thethe overwhelmingoverwhelming disappointeddisappointed andand helplesshelpless moodsmoods afterafter soso manymany failuresfailures andand drawbacks,drawbacks, hashas assertedasserted withwith aa chestchest ofof faithfaith that:that: 46 The European Journal of Management and Public Policy • Vol.13,TheThe No.1 tide tide(2013) ofof worldworld historyhistory goesgoes forwardforward withwith greatgreat strengthstrength andand vigourvigour inin formidableformidable power.power. TheThe tidetide wouldwould definitelydefinitely awardaward thosethose whowho temporizetemporize withwith itit and punish those who go against it世界潮流,浩浩 ( , 之 ).7777 with it andand punish punish those those who who go go against against it (it (世界潮流,浩浩荡荡,顺之者昌,逆之者亡世界潮流,浩浩荡荡,顺之者昌,逆之者亡). 者昌,逆之者亡).63 AccordingAccording toto thesethese aboveabove celebratedcelebrated dictumsdictums andand folkfolk wisdoms,wisdoms, aa shortshort According toexperienceexperience these above couldcould celebrated bebe drawndrawn dictums asas follows: follows:and folk whenwisdoms,when thethe a righteous righteousshort expe coursecourse- ofof revolutionrevolution rience couldor orbe reformation reformationdrawn as follows: encountersencounters when somethesome righteous adversity,adversity, course peoplepeople of revolution shouldshould taketake or aa broadbroad andand long-long- reformation encounters some adversity, people should take a broad and long- termterm viewview insteadinstead ofof losinglosing moralitymorality oror confidenceconfidence andand becomingbecoming pessimistic.pessimistic. ItIt term view instead of losing morality or confidence and becoming pessimis- tic. It is onlyisis through onlyonly throughthrough determined determineddetermined and persistent andand persistentpersistent struggle, struggle, struggle,can various cancan diffi variousvarious- difficultiesdifficulties bebe culties be overcomeovercomeovercome and andand our ourour original originaloriginal objectives objectivesobjectives be finally bebe finallyfinally achieved. achieved.achieved. Such wisdom,SuchSuch ideals wisdom,wisdom, and practical idealsideals experiencesandand practicalpractical of formerexperiencesexperiences philosophers ofof formerformer and philosophersphilosophers andand revolutionistsrevolutionistsrevolutionists have been repeatedly havehave beenbeen proven repeatedlyrepeatedly by historical provenproven course byby historicalhistorical as indisput coursecourse- asas indisputableindisputable able guidingguiding guidingstrategy, strategy, strategy,and are valuableandand areare referencesvaluablevaluable referencesforreferences those with forfor loftythosethose ideals withwith loftylofty idealsideals whowho who devote themselves in contemporary course of reforming OIEO and es- devote themselves in contemporary course of reforming OIEO and establishing tablishing NIEO,devote especially themselves at a timein contemporary when this righteous course path of reforming has rarely OIEOseen and establishing decisive improvements,NIEO,NIEO, especiallyespecially causing at atthe aa traditionaltimetime whenwhen rationale thisthis righteousrighteous to be questioned pathpath hashas orrarelyrarely seenseen decisivedecisive even doubted.improvements,improvements, causingcausing thethe traditionaltraditional rationalerationale toto bebe questionedquestioned oror eveneven Secondly, thedoubted.doubted. relationship between the NDB and the traditional IMF and WB can be generalizedSecondly,Secondly, through thethe relationship relationshiptwo key words: betweenbetween complementation thethe NDBNDB andand and thethe competi traditionaltraditional- IMFIMF andand WBWB tion. The NDB has not only complemented the capital supply at the interna- cancan bebe generalizedgeneralized throughthrough twotwo keykey words:words: complementationcomplementation andand competition.competition. tional financial market, especially to the needs of BRICS and other develop- ing countries,TheThe but NDBNDB also fulfilledhashas notnot toonlyonly some complementedcomplemented extent the demands thethe capitalcapital for a supplylongsupply time atat thethe internationalinternational of the globalfinancial financialSouth for market,amarket, fair and especially especiallybeneficial internationaltoto thethe needsneeds financial ofof BRICSBRICS institution, andand otherother developingdeveloping through whichcountries,countries, they can butbut discuss alsoalso fulfilledandfulfilled decide toto more somesome equally, extentextent andthethe demandsacquiredemands finan forfor - aa longlong timetime ofof thethe cial aid withglobal globalno strict SouthSouth political forfor a aconditions. fairfair andand beneficialbeneficial As to the internationalinternationalcompetition brought financialfinancial by institution,institution, throughthrough the NDB, it whichiswhich not againsttheythey cancan the discussdiscuss liberal andandinternational decidedecide moremore financial equally,equally, order andand per acquireacquire se, as financialfinancial aidaid withwith the past experiencenono strictstrict has politicalpolitical shown conditions.conditions. that the BRICS As As toto and thethe competitionothercompetition developing broughtbrought coun byby- thethe NDB,NDB, itit isis notnot tries could indeed benefit from such economic system. On the contrary, the against the liberal international financial order per se, as the past experience has NDB is competingagainst withthe liberalIMF and international WB in the financialsense of equality order per and se, efficiency as the past experience has of the internationalshownshown thatfinancialthat thethe BRICSBRICS institutions andand other otherthemselves. developingdeveloping Such countriescountriescompetition couldcould could indeedindeed benefitbenefit fromfrom be seen as a suchsuchrepeat economiceconomic or replicate system.system. in the OnhistoryOn thethe ofcontrary,contrary, GATT law-reforming, thethe NDBNDB isis competingcompeting when withwith IMFIMF andand the slow progressWBWB inunderin thethe GATT sensesense regime ofof equalityequality in the 1960s andand wasefficiencyefficiency suddenly ofof accelerated thethe internationalinternational financialfinancial by the outsideinstitutionsinstitutions competition themselves.themselves. brought by SuchSuch the establishment competitioncompetition couldofcould UNCTAD bebe seenseen under asas aa repeatrepeat oror replicatereplicate UN, which theinin thethedeveloped historyhistory countries ofof GATTGATT might law-reforming,law-reforming, see as a potential whenwhen replacement thethe slowslow progressprogress of underunder GATTGATT GATT as a trade forum among developing countries.64 * 7777 ThisThis assertionassertion waswas expressedexpressed* * byby Mr.Mr. SunSun inin SeptemberSeptember 1916,1916, afterafter hehe wentwent backback toto ShanghaiShanghai From the abovefrom fromsuccinct aa visitvisit review ofof thethe over famousfamous the QianjiangQianjiang SSC in differentfloodflood tidetide ininbranches Haining,Haining, of ZhejiangZhejiang inter- Province,Province, seesee http://http:// national economicnews.ifeng.com/gundong/detail_2011_10/09/9694533_0.shtml.news.ifeng.com/gundong/detail_2011_10/09/9694533_0.shtml. legal practices, one can easily discern different patterns. Through comparison,!59!59 a few useful experiences for future might be drawn:

Reconciliation,Reconciliation, Tolerance Tolerance and and Human Human Security Security in in the the Balkans Balkans 63 This assertion was expressed by Mr. – –Sun New New in Balkans BalkansSeptember and and 1916, European European after he Union Union went back – – Peace, Peace, to Shanghai Development, Development, Integration Integration from a visit of the famous Qianjiang flood tide in Haining, Zhejiang Province, see http://news. ifeng.com/gundong/detail_2011_10/09/9694533_0.shtml. 64 See Adeoye Akinsanya and Arthur Davies, Third World Quest for a New International Eco- nomic Order: An Overview, International and Comparative Law Quarterly, 1984, Vol.33, p.210. 47 A. Chen, F. Yang: The Voice from China on Reforming Oieo and Establishing Nieo

Firstly, the global South should remain vigilant towards the “divide and con- quer” tactic, which had been successfully adopted by the North in the rule- making on cross-border investments, although the effects of this tactic now turns out to be detrimental to the North, too. It is only through conglomerat- ing the collective strength, that the global South can acquire a relatively equal footing as compared to the North in the making or reforming of internation- al economic legal rules. Secondly, the introduction of a competitive institution at an appropriate time in an appropriate manner could assist the SSC to achieve its goals, as such competition would bring from the outward extra pressure to the vested inter- ests group. Such kind of “fight-but-keep-it-from-escalating (“斗而不破”) phi- losophy and wisdom are very practical in fulfilling the SSC career.65 The next chapter will briefly retrospect China’s self-position with regard to SSC during its modern history since 1949.

3. China’s Self-Position in SSC For anyone who has basic knowledge about China’s modern history, it is an undeniable fact that, like many third world countries, China had won its en- tirely independent status in the middle 20th century, and determined to adopt a self-reliance and mutual-cooperation approach, in order to rehabilitate it- self from ruins and poverty. As to new China’s self-positioning at the world arena, it has always been a ra- ther clear-cut path. In fact, as the pioneer and leader of democratic revolu- tion in modern China, Mr. Sun Yat-Sen declared publicly in his will: I have devoted myself to national revolution for over 40 years, with the so- le aim to pursue a free and equal status for people within China, as well as for China around the world. Upon my four decades’ experience, I have made myself quite well aware that in order to fulfill such aim, it is a pre- requisite to unite all nations that treat each other equally to struggle col- lectively. For decades after the establishment of New China in 1949, generations of Chinese leaders have absorbed and updated the spirit embedded in Mr. Sun’s will, and have established China’s long-term fundamental foreign policy

65 To fight but keep it from escalating is, in its essence, a dialectic philosophy. Such kind of phi- losophy has been repeatedly adopted by the early generations of Chinese leaders in, for exam- ple, China’s self-defensive counterattack against Vietnam during February 17 to March 16, 1979, and China’s self-defensive counterattack against India during June to November, 1962, and Chi- na’s War to Resist the U.S. Aggression and to Aid Korea during 1950 to 1953. In these relatively severe conflicts (as compared to conflicts in international economic legal conflicts), China had been rather determined in fighting for the righteous course, while at the same time rather con- servative once it had occupied an overwhelming position. For anyone who has basic knowledge about China’s modern history, it is an undeniable fact that, like many third world countries, China had won its entirely independent status in the middle 20th century, and determined to adopt a self- reliance and mutual-cooperation approach, in order to rehabilitate itself from ruins and poverty. As to new China’s self-positioning at the world arena, it has always been a rather clear-cut path. In fact, as the pioneer and leader of democratic revolution in modern China, Mr. Sun Yat-Sen declared publicly in his will: I have devoted myself to national revolution for over 40 years, with the sole aim to pursue a free and equal status for people within China, as well as for China around the world. Upon my four decades’ experience, I have made myself quite well aware that in order to fulfill such aim, it is a prerequisite to unite all nations that treat each other equally to struggle collectively. For decades after the establishment of New China in 1949, generations of Chinese leaders have absorbed and updated the spirit embedded in Mr. Sun’s will, and have established China’s long-term fundamental foreign policy through 48 The European Journalthe Theory of Management of andThree Worlds proposed by Chairman Mao and the Five Principles Public Policy • Vol.13, No.1 (2013) of Peace and Co-existence proposed by Premier Zhou. through the3.1. Theory Main Viewpointsof Three Worlds of New proposed China’s by First Chairman Generation Mao and Leaders the Fi- ve Principles of Peace and Co-existence proposed by Premier Zhou. Chairman Mao first expressed his thoughts on the division of world countries 3.1. Main Viewpoints of New China’s First Generation Leaders during his meeting with Zambian President in 1974, which could be understood Chairmanas Mao the first theoretical expressed base his forthoughts China’s on foreignthe division policy of ofworld collaborating coun- with other tries during his meeting with Zambian President in 1974, which could be understoodthird as the world theoretical brother base countries. for China’s To foreignquote policyfrom ofthen collaborating People’s Daily pamphlet, with otherChairman third world Mao brother said: countries. To quote from then People’s Daily pamphlet, InChairman my view, Mao the said:United States and the form the first world. Japan, In my view,Europe the and United Canada, States the and middle the Soviet section, Union belong form to the the first second world. world. We are the Japan, Europethird world…The and Canada, third the middle world section,has a belonghuge population. to the second With wor -the exception of ld. We are the third world…The third world has a huge population. With Japan, Asia belongs to the third world. The whole of Africa belongs to the third the exception of Japan, Asia belongs to the third world. The whole of Afri- ca belongsworld, to theand third Latin world, America and tooLatin. America too. 我看美国、苏联是第一世界。中间派,日本、 洲、加拿大,是 (“ (“我看美国、苏联是第Ȁ世界。中间派,ᷥ本、欧洲、加拿鄧,是第᪌世界。——第三 第二世界。——第三世界人口很多,亚洲除了日本都是第三世界。 世界⊺⼜⼝口很多,亚洲除了ᷥ本都是第三世界。整个뭞洲都是第三世界,拉丁美洲是第三 整个非洲都是第三世界,拉丁美洲是第三世界。”) 世界。”) Chairman Mao had not pointed further out during his conversation the con- notation, functionChairman or Maopractical had use not for pointeddividing thefurther world out into during three classes,his conversation the nor was thisconnotation, type of categorization function or basedpractical upon use his for understanding dividing the onworld world into three classes, political strengthsnor was and this international type of categorization relation pattern. based Although upon thehis Theoryunderstanding of on world Three Worlds!61 had long been looked up to as the theoretical basis for making China’s diplomatic strategy and policy, its official restatement had not been seen until November 1977, when an editorialReconciliation, entitled Tolerance Chairman and Mao’s Human Theory Security in the Balkans of the Differentiation of the Three– New BalkansWorlds Is and a EuropeanMajor Contribution Union – Peace, to Marxism- Development, Integration Leninism was published on People’s Daily of China66, which is still the only authoritative elaboration on this theory up till today. For this basic judgment on world situation, there has been some oppos- ing voice, opining that such categorization as three worlds is only “based on national wealth, and is thus a rough generalization of the economic develop- ment status and economic strength, rather than the political strength of world countries.”67 Such query obviously has not recognized the abundant philo- sophical connotations of the Theory of Three Worlds, and the potential func- tion of it on guiding practices, which was later elaborated by Deng Xiaop- ing in his address on the special session of UN General Assembly on April 10, 1974. Deng clearly pointed out that: China is a socialist and developing country, and belongs to the third world. China shares similar miserable ex- perience with most other third world countries, and faces similar problems and tasks. China determinedly takes the anti-imperialism, anti-hegemonism

66 See Chairman Mao’s Theory of the Differentiation of the Three Worlds Is a Major Contribution to Marxism-Leninism, Renmin Ribao (People’s Daily) November 1, 1977. 67 See e.g. Wu Min, Queries to the Theory of Three Worlds, available at: http://www.aisixiang.com/ data/24537.html. and anti-colonialism struggle as its sacred responsibility. Such self-position- ing has explained the aftermath cooperation and mutual aid between China and other South countries, as well as the strong support of China to the great SSC career.68 If the Theory of Three Worlds has determined the coordinates for China’s self-positioning on world arena, the Five Principles of Peaceful Co-existence should then be regarded as fundamental guidance on China’s diplomatic strategy, which was first proposed by Premier Zhou during his visit to In- dia and Myanmar in 1954. It comprises of the following five aspects of a new and more principled approach to international relations mainly among those newly independent states after decolonization: Mutual respect for each other’s territorial integrity and sovereignty; Mutual non-aggression; Mutual non-interference in each other’s internal affairs; Equal- EqualityEqualityityEquality and andand cooperation andcooperationcooperation cooperation for mutual forfor mutualmutualfor benefit; mutual benefit;benefit; andbenefit; Peacefulandand andPeacefulPeaceful co-existence. Peaceful co-existence.co-existence. co-existence. (“互相尊重 (“(“互相互相 (“互相 主 和 土完整、互不侵犯、互不干涉 政、平等互利和和平共处 尊重主权和领缟完整、互不侵犯、互不쩲涉内政、平等互利和和平共处尊重主权和领缟完整、互不侵犯、互不쩲涉内政、平等互利和和平共处尊重主权和领缟完整、互不侵犯、互不쩲涉内政、平等互利和和平共处”)”) ”) ”) TheseTheseTheseThese fivefive five principlesprinciples principles havehave havehave setset set thetheset the prerequisitetheprerequisite prerequisite prerequisite forforfor anyforanyany anypossiblepossible possible international internationalinternational international cooperation,cooperation,cooperation,cooperation, withwith with with thethe the essenceessencethe essence essence beingbeing being being thethe the equalityequalitythe equality equality amongamong among among nations nationsnations nations regardless regardlessregardless regardless ofof itsits of its its size. Under then world situation, this proposal had invented a novel ap- size.size.size. UnderUnder Under thenthen then worldworld world situation,situation, situation, thisthis thisproposalproposal proposal hadhad hadinventedinvented invented aa novelnovel a novel approachapproach approach proach towards the traditional idea of East camp against West camp, the So- towardstowardscialistictowards thethe Group traditionalthetraditional traditional against ideaidea the idea Capitalisticofof East Eastof East campcamp Group, camp againstagainst which against WestWest had West beencamp,camp, camp,proven thethe SocialistictheSocialisticuseless Socialistic GroupGrouporGroup even againstagainst againsta deteriorating thethe CapitalisticCapitalisticthe Capitalistic force Group, Group,for historicalGroup, whichwhich which problems. hadhad hadbeenbeen been provenproven proven uselessuseless useless oror eveneven or even aa a deterioratingdeterioratingLaterdeteriorating on, inforceforce the force forforBandung historical historicalfor historical Conference problems.problems. problems. held in April 1955, in which the Dec- LaterLaterlarationLater on,on, on,inonin Promotingthethein theBandungBandung Bandung World ConferenceConference Peace Conference and Cooperationheldheld held inin AprilAprilin was April 1955,published,1955, 1955, inin thewhichwhichin Fivewhich thethe the DeclarationDeclarationPrinciplesDeclaration onon of PromotingPromoting onPeaceful Promoting Co-existence WorldWorld World PeacePeace Peace were andand CooperationandCooperationcompletely Cooperation absorbed waswas waspublished,published, intopublished, this thethe fa Five -Fivethe Five mous Declaration, and were expanded and updated into the ten principles PrinciplesPrinciplesonPrinciples international ofof PeacefulPeaceful of Peaceful relations. Co-existenceCo-existence Co-existence People maywerewere werewell completelycompletely remember, completely absorbedabsorbed it absorbedis also intointo in this intothisthis Con thisfamousfamous- famous Declaration,Declaration,ferenceDeclaration, that andand the and werewerestrategic were expandedexpanded thoughexpanded ofandand South’s andupdatedupdated Collectiveupdated intointo intoSelf-reliancethethe thetenten tenprinciplesprinciples was principles first onon on internationalinternationalproposed.international 69relations.relations. relations. PeoplePeople People maymay may wellwell well remember,remember, remember, itit isis italsoalso is also inin thisthis in thisConferenceConference Conference thatthat thatthethe strategic strategicthe strategic thoughthough though ofof South’sSouth’s of South’s CollectiveCollective Collective Self-relianceSelf-reliance Self-reliance waswas wasfirstfirst first proposed.proposed. proposed.8383 83 3.2.3.2. 3.2. 3.2.MainMain Main Main ViewpointsViewpoints Viewpoints Viewpoints ofof NewNew ofof New China’sNewChina’s China’s China’s SecondSecond Second Second GenerationGeneration Generation Generation LeadersLeaders Leaders Leaders LaterLaterLaterLater on,on, on, on,ChinaChina China China hadhad had hadexperiencedexperienced experienced experienced somesome some sortsortsort sortofofof domestic domesticdomesticof domestic turbulence turbulenceturbulence turbulence called calledcalled called “Cultural“Cultural“Cultural“Cultural Revolution”Revolution” Revolution” Revolution” duringduring during during thethe the decade thedecadedecade decade ofof 19641964 1964of 1964– – –1974, 1974,1974, – 1974,which whichwhich renderedwhich renderedrendered rendered the thethe the newlynewlynewlynewly establishedestablished established established countrycountry country country toto to aa ato even eveneven a even worseworse worse situation. situation.situation. situation. After AfterAfter After basic basicbasic basicorder orderorder orderhaving havinghaving having beenbeenbeenbeen broughtbrought brought brought outout out ofofout chaos,chaos,of of chaos, chaos, DengDeng Deng Deng Xiaoping,Xiaoping, Xiaoping, Xiaoping, asas as thethe asthe secondsecondthe second second generationgeneration generation generation leader,leader, leader, leader, has has has has advocated and fully carried out the famous national policy of “Reform advocatedadvocatedadvocated andand andfullyfully fully carriedcarried carried outout outthethe famousthefamous famous nationalnational national policypolicy policy ofof “Reform“Reformof “Reform andand and and Open-up”, and has later proposed a 28-word (numbered in Chinese cha- Open-up”,Open-up”,racters)Open-up”, andForeignand andhashas Policylaterhaslater later proposed proposedin early proposed 1990s aa 28-word28-word aagainst 28-word (numbered (numberedthen (numbered world insituation,in ChineseChinese in Chinese which characters)characters) characters)go- ForeignForeignesForeign as follows:PolicyPolicy Policy inin earlyearlyin early 1990s1990s 1990s againstagainst against thenthen then worldworld world situation,situation, situation, whichwhich which goesgoes goes asas as follows:follows:follows: ObserveObserveObserve calmly;calmly; calmly; SecureSecure Secure ourour position;ourposition; position; CopeCope Cope withwith with affairsaffairs affairs cool-headedly;cool-headedly; cool-headedly; BeBe good goodBe good atat maintainingmaintaining68at See, maintaining e.g., http://baike.baidu.com/view/109269.htm?fr=aladdin#1. aa lowlow a lowprofile;profile; profile; NeverNever Never claimclaim claim leadershipleadership leadership ofof thethe of world;world;the world; ActAct butActbut staybutstay stay 69 See Chapter I of this Article. lowlow profilelowprofile profile whilewhile while bidingbiding biding ourour time;ourtime; time; MakeMake Make somesome some differences.differences. differences. (“(“冷静观察冷静观察 (“冷静观察,,稳住阵脚稳住阵脚,稳住阵脚,,沉沉 ,沉 8484 84 着应付着应付着应付,,善于守拙善于守拙,善于守拙,,决不当头决不当头,决不当头,,韬光养晦韬光养晦,韬光养晦,,有所作为。有所作为。,有所作为。”)”) ”)

8383 SeeSee83 Chapter ChapterSee Chapter II ofof this thisI of Article.Article. this Article.

8484 AsAs84 a a As mattermatter a matter ofof fact,fact, of fact,thethe contentcontentthe content ofof thethe of policypolicythe policy isis aa summaryissummary a summary ofof talkstalks of talksofof DengDeng of Deng inin variousvarious in various circumstances.circumstances.circumstances. SeeSee China ChinaSee China ExpectsExpects Expects aa PromisedPromised a Promised FutureFuture Future throughthrough through aa StableStable a Stable Open-upOpen-up Open-up Policy,Policy, Policy, andand and ToTo DealDealTo Dealwithwith withDevelopmentDevelopment Development ProblemsProblems Problems byby UsingUsing by Using TimelyTimely Timely Situations,Situations, Situations, inin SelectionsSelections in Selections fromfrom fromDengDeng Deng XiaopingXiaopingXiaoping,, Vol.Vol., 3,3,Vol. TheThe 3, People’s People’sThe People’s Press,Press, Press, 1993,1993, 1993, pp.pp. 321,321, pp. 326321,326 and and326 363. 363.and 363. SeeSee alsoalsoSee LialsoLi Qizhen,Qizhen, Li Qizhen, OnOn Deng DengOn Deng Xiaoping’sXiaoping’s Xiaoping’s StrategicStrategic Strategic DiplomaticDiplomatic Diplomatic Thoughts,Thoughts, Thoughts, SocialSocial Social ScienceScience Science ofof of CantonCantonCanton,, 2000,2000,, 2000, Vol.6,Vol.6, Vol.6, pp.75pp.75 pp.75 –– 76;76; – andand 76; Chen Chenand Chen Xiangyang,Xiangyang, Xiangyang, RestatementRestatement Restatement ofof DengDeng of Deng Xiaoping’sXiaoping’s Xiaoping’s 28-28- 28- word:word:word: StillStill Stilltoto be beto aa be PrimePrime a Prime ChoiceChoice Choice ofof China’s China’sof China’s OutwardOutward Outward StrategyStrategy Strategy,, availableavailable, available at:at: http://http://at: http:// news.sina.com.cn/c/2005-09-07/16467705377.shtml.news.sina.com.cn/c/2005-09-07/16467705377.shtml.news.sina.com.cn/c/2005-09-07/16467705377.shtml. !63!63 !63

Reconciliation,Reconciliation,Reconciliation, ToleranceTolerance Tolerance andand Human Humanand Human SecuritySecurity Security inin thethe in BalkansBalkans the Balkans –– NewNew – BalkansNewBalkans Balkans andand European Europeanand European UnionUnion Union –– Peace,Peace, – Peace, Development,Development, Development, IntegrationIntegration Integration EqualityEqualityEqualityEqualityEquality and and andand cooperationand cooperation cooperationcooperation cooperation for for forformutual for mutual mutualmutual mutual benefit; benefit; benefit;benefit; benefit; and and andand Peacefuland Peaceful PeacefulPeaceful Peaceful co-existence. co-existence. co-existence.co-existence. co-existence. (“ 互相 (“ (“(“ 互相互相(“互相互相 ”) ”)”)”) ”) EqualityEqualityEquality and andand cooperation cooperationcooperation for forfor mutual mutualmutual benefit; benefit;benefit; and andand Peaceful PeacefulPeaceful co-existence. co-existence.co-existence. (“ (“(“互相互相互相 尊重主权和领缟完整、互不侵犯、互不쩲涉内政、平等互利和和平共处尊重主权和领缟完整、互不侵犯、互不쩲涉内政、平等互利和和平共处尊重主权和领缟完整、互不侵犯、互不쩲涉内政、平等互利和和平共处尊重主权和领缟完整、互不侵犯、互不쩲涉内政、平等互利和和平共处尊重主权和领缟完整、互不侵犯、互不쩲涉内政、平等互利和和平共处 ”)”)”) 尊重主权和领缟完整、互不侵犯、互不쩲涉内政、平等互利和和平共处尊重主权和领缟完整、互不侵犯、互不쩲涉内政、平等互利和和平共处尊重主权和领缟完整、互不侵犯、互不쩲涉内政、平等互利和和平共处 TheseTheseTheseTheseThese five fivefivefive principlesfive principlesprinciplesprinciples principles have havehavehave haveset set setset theset thethe the prerequisitethe prerequisiteprerequisiteprerequisite prerequisite for for forfor anyfor anyanyany possibleany possiblepossiblepossible possible international internationalinternationalinternational international TheseTheseThese five fivefive principles principlesprinciples have havehave set setset the thethe prerequisite prerequisiteprerequisite for forfor any anyany possible possiblepossible international internationalinternational cooperation,cooperation,cooperation,cooperation,cooperation, with with withwith withthe the the theessence the essence essenceessence essence being being beingbeing being the the the theequality the equality equalityequality equality among among amongamong among nations nations nationsnations nations regardless regardless regardlessregardless regardless of of itsofof of its itsits its cooperation,cooperation,cooperation, with withwith the thethe essence essenceessence being beingbeing the thethe equality equalityequality among amongamong nations nationsnations regardless regardlessregardless of ofof its itsits size.size.size.size. size.Under UnderUnderUnder Under then thenthenthen thenworld worldworldworld world situation, situation,situation,situation, situation, this thisthisthis proposalthis proposalproposalproposal proposal had hadhadhad inventedhad inventedinventedinvented invented a novel aaa novelanovelnovel novel approach approachapproachapproach approach size.size.size. Under UnderUnder then thenthen world worldworld situation, situation,situation, this thisthis proposal proposalproposal had hadhad invented inventedinvented a a a novel novelnovel approach approachapproach towardstowardstowardstowardstowards the thethe the traditionalthe traditionaltraditionaltraditional traditional idea ideaideaidea ideaof ofofEastof of EastEastEast Eastcamp campcampcamp camp against againstagainstagainst against West WestWestWest Westcamp, camp,camp,camp, camp, the thethe the Socialisticthe SocialisticSocialisticSocialistic Socialistic towardstowardstowards the thethe traditional traditionaltraditional idea ideaidea of ofof East EastEast camp campcamp against againstagainst West WestWest camp, camp,camp, the thethe Socialistic SocialisticSocialistic GroupGroupGroupGroupGroup against against againstagainst against the the the theCapitalistic the Capitalistic CapitalisticCapitalistic Capitalistic Group, Group, Group,Group, Group, which which whichwhich which had had hadhad beenhad been beenbeen beenproven proven provenproven proven useless useless uselessuseless useless or or evenoror or even eveneven evena a aa a GroupGroupGroup against againstagainst the thethe Capitalistic CapitalisticCapitalistic Group, Group,Group, which whichwhich had hadhad been beenbeen proven provenproven useless uselessuseless or oror even eveneven a a a deterioratingdeterioratingdeterioratingdeterioratingdeteriorating force force forceforce force for for forforhistorical for historical historicalhistorical historical problems. problems. problems.problems. problems. deterioratingdeterioratingdeteriorating force forceforce for forfor historical historicalhistorical problems. problems.problems. LaterLaterLaterLaterLater on, on,on, on, inon, ininin the in thethe the Bandungthe BandungBandungBandung Bandung Conference ConferenceConferenceConference Conference held heldheldheld heldin ininAprilin in AprilAprilApril April 1955, 1955,1955,1955, 1955, in ininin which in whichwhichwhich which the thethe the the LaterLaterLater on,on,on, ininin thethethe BandungBandungBandung ConferenceConferenceConference heldheldheld ininin AprilAprilApril 1955,1955,1955, ininin whichwhichwhich thethethe DeclarationDeclarationDeclarationDeclarationDeclaration on on onPromotingon on Promoting PromotingPromoting Promoting World World WorldWorld World Peace Peace PeacePeace Peace and and andand Cooperation and Cooperation CooperationCooperation Cooperation was was waswas published,was published, published,published, published, the the the theFive the Five FiveFive Five DeclarationDeclarationDeclaration on onon Promoting PromotingPromoting World WorldWorld Peace PeacePeace and andand Cooperation CooperationCooperation was waswas published, published,published, the thethe Five FiveFive PrinciplesPrinciplesPrinciplesPrinciplesPrinciples of of Peacefulofof of Peaceful PeacefulPeaceful Peaceful Co-existence Co-existence Co-existenceCo-existence Co-existence were were werewere werecompletely completely completelycompletely completely absorbed absorbed absorbedabsorbed absorbed into into intointo thisinto this thisthis famousthis famous famousfamous famous PrinciplesPrinciplesPrinciples of ofof Peaceful PeacefulPeaceful Co-existence Co-existenceCo-existence were werewere completely completelycompletely absorbed absorbedabsorbed into intointo this thisthis famous famousfamous Declaration,Declaration,Declaration,Declaration,Declaration, and andand and andwere werewere were wereexpanded expandedexpanded expandedexpanded and andand and andupdated updatedupdated updatedupdated into intointo into intothe thethe thetenthe tenten tenprinciplesten principlesprinciples principlesprinciples on onon onon Declaration,Declaration,Declaration, andandand werewerewere expandedexpandedexpanded andandand updatedupdatedupdated intointointo thethethe tententen principlesprinciplesprinciples ononon internationalinternationalinternationalinternationalinternational relations. relations. relations.relations. relations. People People PeoplePeople People may may maymay maywell well wellwell wellremember, remember, remember,remember, remember, it is it itit alsois itisis isalso alsoalso inalso in thisinin inthis thisthis Conferencethis Conference ConferenceConference Conference internationalinternationalinternational relations. relations.relations. People PeoplePeople may maymay well wellwell remember, remember,remember, it itit is isis also alsoalso in inin this thisthis Conference ConferenceConference thatthatthatthat thethat the the thestrategic the strategic strategicstrategic strategic though though thoughthough though of ofSouth’s ofof of South’s South’sSouth’s South’s Collective Collective CollectiveCollective Collective Self-reliance Self-reliance Self-relianceSelf-reliance Self-reliance was was waswas firstwas first firstfirst proposed.first proposed. proposed.proposed. proposed.83 838383 83 838383 thatthatthat the thethe strategic strategicstrategic though thoughthough of ofof South’s South’sSouth’s Collective CollectiveCollective Self-reliance Self-relianceSelf-reliance was waswas first firstfirst proposed. proposed.proposed. 3.2.3.2.3.2.3.2. Main3.2. Main MainMain Main Viewpoints Viewpoints ViewpointsViewpoints Viewpoints of ofNew ofof of New NewNew NewChina’s China’s China’sChina’s China’s Second Second SecondSecond Second Generation Generation GenerationGeneration Generation Leaders Leaders LeadersLeaders Leaders 3.2.3.2.3.2. Main MainMain Viewpoints ViewpointsViewpoints of ofof New NewNew China’s China’sChina’s Second SecondSecond Generation GenerationGeneration Leaders LeadersLeaders LaterLaterLaterLaterLater on, on,on, on, Chinaon, ChinaChinaChina China had hadhadhad experiencedhad experiencedexperiencedexperienced experienced some somesomesome some sort sortsortsort sortof ofofofdomestic of domesticdomesticdomestic domestic turbulence turbulenceturbulenceturbulence turbulence called calledcalledcalled called LaterLaterLater on,on,on, ChinaChinaChina hadhadhad experiencedexperiencedexperienced somesomesome sortsortsort ofofof domesticdomesticdomestic turbulenceturbulenceturbulence calledcalledcalled “Cultural“Cultural“Cultural“Cultural“Cultural Revolution” Revolution”Revolution”Revolution” Revolution” during duringduringduring during the thethe the decadethe decadedecadedecade decade of ofof1964of of 196419641964 1964– 1974, ––– 1974,–1974,1974, 1974, which whichwhichwhich which rendered renderedrenderedrendered rendered the thethe the the “Cultural“Cultural“Cultural Revolution” Revolution”Revolution” during duringduring the thethe decade decadedecade of ofof 1964 19641964 – – – 1974, 1974,1974, which whichwhich rendered renderedrendered the thethe newlynewlynewlynewlynewly established establishedestablishedestablished established country countrycountrycountry country to toatoto evento aaa evenaeveneven evenworse worseworseworse worse situation. situation.situation.situation. situation. After After AfterAfter After basic basicbasicbasic basic order orderorderorder order having havinghavinghaving having newlynewlynewly established establishedestablished country countrycountry to toto a a a even eveneven worse worseworse situation. situation.situation. After AfterAfter basic basicbasic order orderorder having havinghaving beenbeenbeenbeen beenbrought brought broughtbrought brought out out out outof out of chaos,ofof of chaos, chaos,chaos, chaos, Deng Deng DengDeng Deng Xiaoping, Xiaoping, Xiaoping,Xiaoping, Xiaoping, as as theasas as the the thesecond the second secondsecond second generation generation generationgeneration generation leader, leader, leader,leader, leader, has has has has has beenbeenbeen brought broughtbrought out outout of ofof chaos, chaos,chaos, Deng DengDeng Xiaoping, Xiaoping,Xiaoping, as asas the thethe second secondsecond generation generationgeneration leader, leader,leader, has hashas advocatedadvocatedadvocatedadvocatedadvocated and andandand fullyand fullyfullyfully fullycarried carriedcarriedcarried carried out outout out theout thethe the famousthe famousfamousfamous famous national nationalnationalnational national policy policypolicypolicy policy of ofof“Reformof of “Reform“Reform“Reform “Reform and andandand and advocatedadvocatedadvocated and andand fully fullyfully carried carriedcarried out outout the thethe famous famousfamous national nationalnational policy policypolicy of ofof “Reform “Reform“Reform and andand Open-up”,Open-up”,Open-up”,Open-up”,Open-up”, and and andand hasand has has haslater has later laterlater laterproposed proposed proposedproposed proposed a 28-word a aa 28-word 28-worda28-word 28-word (numbered (numbered (numbered(numbered (numbered in in Chineseinin inChinese ChineseChinese Chinese characters) characters) characters)characters) characters) Open-up”,Open-up”,Open-up”, and andand has hashas later laterlater proposed proposedproposed a a a28-word 28-word28-word (numbered (numbered(numbered50 in inin Chinese ChineseChinese characters) characters)characters) ForeignForeignForeignForeignForeign Policy PolicyPolicyPolicy Policy in ininearlyin in earlyearlyearly early1990s 1990s1990s1990s 1990s against againstagainstagainst against then thenthenthen thenworld worldworldworld world situation, situation,situation,situation, situation, which whichwhichwhich which goes goesgoesgoes goesas asasas as The European Journal of Management and ForeignForeignForeign PolicyPolicyPolicy ininin earlyearlyearly 1990s1990s1990s againstagainstagainst thenthenthen worldworldworld situation,situation,situation,Public Policy • Vol.13,whichwhichwhich No.1 goes (2013)goesgoes asasas follows:follows:follows:follows:follows: follows:follows:follows: ObserveObserveObserveObserveObserve calmly; calmly; calmly;calmly; calmly; Secure Secure SecureSecure Secure our our our ourposition; our position; position;position; position; Cope Cope CopeCope Cope with with withwith affairswith affairs affairsaffairs affairs cool-headedly; cool-headedly; cool-headedly;cool-headedly; cool-headedly; Be Be BegoodBe Be good goodgood good Observe calmly; Secure our position; Cope with affairs cool-headedly; Be ObserveObserveObserve calmly; calmly;calmly; Secure SecureSecure our ourour position; position;position; Cope CopeCope with withwith affairs affairsaffairs cool-headedly; cool-headedly;cool-headedly; Be BeBe good goodgood at atmaintainingatat atmaintaining maintainingmaintaining maintaining a low a aa low alowlow profile;low profile; profile;profile; profile; Never Never NeverNever Never claim claim claimclaim claim leadership leadership leadershipleadership leadership of of theofof ofthe the theworld; the world; world;world; world; Act Act Act Actbut Act but but butstay but stay staystay stay good at maintaining a low profile; Never claim leadership of the world; atatat maintaining maintainingmaintaining a a alow lowlow profile; profile;profile; Never NeverNever claim claimclaim leadership leadershipleadership of ofof the thetheAct world; world; world;but stay Act ActAct low but butbut profilestay staystay low whilelowlowlow profilelow profile profilebidingprofile profile while while whileourwhile while bidingtime; biding bidingbiding biding ourMake our our ourtime; oursome time; time;time; time; Make differences. Make MakeMake Make some some somesome some differences. differences. differences.differences. differences. (“ 冷静观察 (“ (“(“ 冷静观察冷静观察(“冷静观察冷静观察,稳住阵脚,,稳住阵脚,稳住阵脚稳住阵脚,稳住阵脚,沉,,沉,沉沉,沉 冷 察,, ,, 住 脚,沉着, ,, 付,善于守拙,决不 头, 光 晦,有所作 84 84848484 lowlowlow profile profileprofile while whilewhile biding bidingbiding our ourour time; time;time; Make MakeMake some somesome differences. differences.differences. (“(“ (“(“冷静观察冷静观察冷静观察稳住阵脚稳住阵脚稳住阵脚沉沉沉 着应付着应付着应付着应付着应付,善于守拙,,善于守拙,善于守拙善于守拙,善于守拙,决不当头,,决不当头,决不当头决不当头,决不当头,韬光养晦,,韬光养晦,韬光养晦韬光养晦,韬光养晦,有所作为。,,有所作为。,有所作为。有所作为。,有所作为。”) ”)”)”) ”) 848484 。”)70 着应付着应付着应付,善于守拙,,善于守拙善于守拙,决不当头,,决不当头决不当头,韬光养晦,,韬光养晦韬光养晦,有所作为。,,有所作为。有所作为。”)”)”) This summary is so concise83 andSee838383 See See83SeeChapterelastic See Chapter ChapterChapter Chapter toI of interpret, I I thisI of of ofI thisof thisArticle.this this Article. Article. Article. Article.that it has caused some 838383 See SeeSee Chapter ChapterChapter I IofI ofof this thisthis Article. Article.Article. confusion. There is a point of view that the tips in the 28-word foreign policy, 84 As848484 As 84AsaAs Asmatter aaa mattermatteramatter matter of offact,ofof of fact,fact,fact, thefact, thethethecontent the contentcontentcontent content of oftheofof of thethethepolicy the policypolicypolicy policy is a isis is summary aisaa summarysummaryasummary summary of oftalksofof of talkstalkstalks oftalks ofDengofof of DengDengDeng Dengin variousininin in variousvariousvarious various which goes as “be good at maintaining a low profile; never claim leadership 848484 As AsAs a a a matter mattermatter of ofof fact, fact,fact, the thethe content contentcontent of ofof the thethe policy policypolicy is isis a a a summary summarysummary of ofof talks talkstalks of ofof Deng DengDeng in inin various variousvarious circumstances.circumstances.circumstances.circumstances.circumstances. See See SeeSeeChina See China ChinaChina ChinaExpects Expects ExpectsExpects Expects a Promised a aa Promised PromisedPromiseda Promised Future Future FutureFuture Future through through throughthrough through a Stable a aa Stable StableStablea Stable Open-up Open-up Open-upOpen-up Open-up Policy, Policy, Policy,Policy, Policy, and and andand and of the world; act but stay low profileTo ToDealToTo To Deal DealDealwhile withDeal with withwith Development bidingwith Development DevelopmentDevelopment Development our time,” Problems Problems ProblemsProblems Problemsis that by byUsing bytheby by Using UsingUsing UsingChiTimely- Timely TimelyTimely Timely Situations, Situations, Situations,Situations, Situations, in Selections in inin Selectionsin SelectionsSelections Selections from from fromfrom Dengfrom Deng DengDeng Deng circumstances.circumstances.circumstances. See SeeSee China ChinaChina Expects ExpectsExpects a a aPromised PromisedPromised Future FutureFuture through throughthrough nesea a aStable StableStable authorities Open-up Open-upOpen-up Policy,and Policy,Policy, people and andand should be worldly wise and play safe, keep hands ToToTo Deal DealDeal with withwith Development DevelopmentDevelopment Problems ProblemsProblems by byby Using UsingUsing Timely TimelyTimely Situations, Situations,Situations, in inin Selections SelectionsSelections from fromfrom Deng DengDeng XiaopingXiaopingXiaopingXiaopingXiaoping, Vol.,, , Vol. Vol. Vol.3,, Vol. The 3, 3,3, The 3,The ThePeople’s The People’s People’sPeople’s People’s Press, Press, Press,Press, Press,1993, 1993, 1993,1993, 1993,pp. pp. pp.321,pp. pp. 321, 321,321, 326 321, 326 326 326and 326 and andand363. and 363. 363.363. 363. XiaopingXiaopingXiaoping, ,Vol., Vol.Vol. 3, 3,3, The TheThe People’s People’sPeople’s Press, Press,Press, 1993, 1993,1993, pp. pp.pp. 321, 321,321, 326 326326 and andand 363. 363.363.off the world issues, and concentrate ONLY on internal affairs. This point is supported by the fact that Deng See XiaopingSee See Seealso See also also alsoLi also LiQizhen, Li Lionce LiQizhen, Qizhen,Qizhen, Qizhen, proclaimed On On OnDengOn On Deng DengDeng DengXiaoping’s that Xiaoping’s Xiaoping’sXiaoping’s Xiaoping’s Strategic Strategic StrategicStrategic Strategic Diplomatic Diplomatic DiplomaticDiplomatic Diplomatic Thoughts, Thoughts, Thoughts,Thoughts, Thoughts, Social Social SocialSocial Social Science Science ScienceScience Science of of ofof of See SeeSee also alsoalso Li LiLi Qizhen, Qizhen,Qizhen, On OnOn Deng DengDeng Xiaoping’s Xiaoping’sXiaoping’s Strategic StrategicStrategic Diplomatic DiplomaticDiplomatic Thoughts, Thoughts,Thoughts, Social SocialSocial Science ScienceScience of ofof CantonCantonCantonCantonCanton, 2000,,, , 2000, 2000,2000,, 2000,Vol.6, Vol.6, Vol.6,Vol.6, Vol.6,pp.75 pp.75 pp.75pp.75 pp.75– 76; – –– 76; 76;and–76; 76; and andandChen and Chen ChenChen Xiangyang,Chen Xiangyang, Xiangyang,Xiangyang, Xiangyang, Restatement Restatement RestatementRestatement Restatement of Deng of ofof Dengof DengDeng DengXiaoping’s Xiaoping’s Xiaoping’sXiaoping’s Xiaoping’s 28- 28- 28-28- 28- CantonCantonCanton, ,2000,, 2000,2000, Vol.6, Vol.6,Vol.6, pp.75 pp.75pp.75 – – –76; 76;76; and andand Chen ChenChen Xiangyang, Xiangyang,Xiangyang, Restatement RestatementRestatementSome of ofof Deng DengDengcountries Xiaoping’s Xiaoping’sXiaoping’s in the 28- 28-28- Thirdword: Worldword:word:word: word:Still hopeStillStill Still toStill tothatbetoto to bebeabe beChina Primeaaa PrimeaPrimePrime Prime couldChoice ChoiceChoiceChoice Choicetake of ofChina’stheofof of China’sChina’s China’slead. China’s Outward OutwardOutwardOutward Outward Strategy StrategyStrategyStrategy Strategy, available,, , availableavailable,available available at: at:at:http://at: at: http://http://http:// http:// word:word:word: Still StillStill to toto be bebe a a a Prime PrimePrime Choice ChoiceChoice of ofof China’s China’sChina’s Outward OutwardOutward Strategy StrategyStrategyHowever,, ,, available availableavailable China at: at:at: shouldhttp:// http://http:// not news.sina.com.cn/c/2005-09-07/16467705377.shtml.donews.sina.com.cn/c/2005-09-07/16467705377.shtml. news.sina.com.cn/c/2005-09-07/16467705377.shtml.news.sina.com.cn/c/2005-09-07/16467705377.shtml.sonews.sina.com.cn/c/2005-09-07/16467705377.shtml. because she lacks the power and be- news.sina.com.cn/c/2005-09-07/16467705377.shtml.news.sina.com.cn/c/2005-09-07/16467705377.shtml.news.sina.com.cn/c/2005-09-07/16467705377.shtml. cause she could not afford!63 !63!63to.!63 !63 This is a basic national policy. Taking the !63!63!63 lead will bring us no good but passivity… China should never take the lead.71 Reconciliation,Reconciliation,Reconciliation,Reconciliation,Reconciliation, Tolerance Tolerance ToleranceTolerance Tolerance and and and andHuman and Human HumanHuman Human Security Security SecuritySecurity Security in the in inin thein theBalkansthe the Balkans BalkansBalkans Balkans – New – –– New NewNew– Balkans New Balkans BalkansBalkans Balkans and and and andEuropean and European EuropeanEuropean European Union Union UnionUnion Union – Peace, – –– Peace, Peace,Peace,– Peace, Development, Development, Development,Development, Development, Integration Integration IntegrationIntegration Integration Reconciliation,Reconciliation,Reconciliation, Tolerance ToleranceTolerance and andand Human HumanHuman Security SecuritySecurity in inin the thethe Balkans BalkansBalkans – – –New NewNew Balkans BalkansBalkans and andand European EuropeanEuropean Union UnionUnion – – –Peace, Peace,Peace,For Development, Development,Development,the time being, Integration IntegrationIntegration the Third World is not strong enough, and efforts to establish the NIEO have always encountered difficulties and obstructions, which have all cast shadow on the great course of SSC. In such situation, the Chinese should seriously review and follow the strategic thought on foreign relations and “the way of living and conducting oneself in society” recom- mended by Deng Xiaoping. A seemingly logical conclusion is that it might not be wise henceforth for China to adhere to the Third World’s common cause of SSC and establishing the NIEO. However, this point of view has at least neglected the following facts: Firstly, Deng Xiaoping himself is one of the earliest advocators for SSC and the NIEO. In UN General Assembly special session held in 1974, Deng de- clared that China was a socialist and a developing country in the Third World. Like most of the other countries in the Third World, China had un- dergone the same hardship and encountered the same problems and tasks as they had. China regarded fighting together with other Third World countries against the imperialism, hegemonism, and colonialism as her sacred interna- tional obligation. China took a firm stand on the side of the Third World and would never seek hegemony. Right in the same UN special session, Deng as the representative of the Chinese government put forward the basic idea of establishing the NIEO. He asserted that the political and economic relation

70 As a matter of fact, the content of the policy is a summary of talks of Deng in various circum- stances. See China Expects a Promised Future through a Stable Open-up Policy, and To Deal with Development Problems by Using Timely Situations, in Selections from Deng Xiaoping, Vol. 3, The People’s Press, 1993, pp. 321, 326 and 363. 71 See Selections from Deng Xiaoping, Vol. 3, The People’s Press, 1993, p. 363. 51 A. Chen, F. Yang: The Voice from China on Reforming Oieo and Establishing Nieo among nations should be based on the Five Principles of Peaceful Coexis- tence; the international economic affairs should be dealt with by all the na- tions rather than be monopolized by a few countries. And it was also in this UN special session when Declaration and Program of Action for the Establish- ment of a New International Economic Order were adopted.72

Secondly, while emphasizing that we should “keep low-profile and bide our time” and “never take the lead,” Deng Xiaoping also mentioned simulta- neously again and again that “we must make some differences.” He said that it was “unimaginable for a large country as China do nothing at all on inter- national affairs; What should we do? From my perspective, China should play an active role in promoting the establishment of a new international political and economic order.”73

Thirdly, as early as in 1977, Deng Xiaoping had proposed to correctly inter- pret Mao Tse-Tung Thought as an organic whole, which would otherwise be misunderstood and cause confusion or even practical detriments. He stressed time and again that “we must hold a comprehensive and correct recognition towards Mao Tse-Tung Thought, we must be good at learning and using this systemic thought to guide our work. Only in this way would we not distort or misunderstand Mao Tse-Tung Thought.” 74 As is commonly known, Deng Xiaoping Theory had been developed on the basis of Mao Tse-Tung Thought, and is itself an organic whole. The 28-word guideline should thus also be in- terpreted wholly as a dialectic strategic thought on global issues, instead of separately by taking only one particular facet, so that we would not misun- derstand Deng’s original intention.

Fourthly, as successor of Deng Xiaoping Theory, the new leaders of China are advocating actively “South–South Coalition” and the establishment of a new international political and economic order. One of the latest examples is that China has been participating energetically in international practices inside and outside the WTO concerning South–North Contradictions and cooper- ation for the past more than ten years since the Doha Conference. It is wide- ly known that due to the increase of comprehensive national strength and in- fluence on international affairs, China together with members of the BRICS have defeated the attempts of the hegemonic and big powers to manipulate the conference at their will and won for the weak states the right to speak by superior diplomacy.75

72 See Deng Xiaoping’s Speech in special session of UN General Assembly, in People’s Daily, April 11, 1994, Vol.1. 73 See Selections from Deng Xiaoping, Vol. 3, The People’s Press, 1993, p. 363. 74 See Selections from Deng Xiaoping, Vol. 2, The People’s Press, 1994, p. 42. 75 See An CHEN, The Voice from China: An CHEN on International Economic Law, Springer-ver- lag Press, 2014, pp.207 – 239. 52 The European Journal of Management and Public Policy • Vol.13, No.1 (2013)

3.3. Main Viewpoints of New China’s Third and Fourth Genera- tion Leaders The third generation of New China’s Leaders, headed by Jiang Zemin, ha- ve contributed tremendously and achieved important results by enforcing the 28-word foreign policy. The most eminent achievement is to get China through various blockades set by developed powers and finally into the Wor- ld Trade Organization, inside and outside of which China has been carrying out persistent struggles against hegemonism together with the global South weak groups. As successor of Deng Xiaoping Theory, the fourth generation leaders of Chi- na are advocating actively ‘South-South Coalition’ and the establishment of a new international political and economic order. One of the latest examples is that China has been participating energetically in international practices inside and outside the WTO concerning South-Nor- th contradictions and cooperation for the past decade since the Doha Confe- rence. It is widely known that due to the increase of comprehensive national strength and influence on international affairs, China together with members of the BRICSM have defeated the attempts of the hegemonic and big powers to manipulate the conference at their will, and won for the weak states the ri- ght to speak by superior diplomacy.76 Besides, in the historical course of Global South’s collective self-reliance and South-North dialogue, a new combination of powers and a new approach to hold dialogues emerges and begins to draw attention from all around the world. Specifically speaking, there will be regular meetings attended by the leaders of G7 or G8 consisting of the most developed countries with the lea- ders of several major developing countries. In the meeting, South-North dia- logue attempting to tackle major world issues and knotty points will be ini- tiated. This kind of dialogue has been conducted for several times, latest of which was held in Japan in July 2008, attended by leaders of G8 with leaders from China, India, Brazil, South Africa and Mexico. Chinese leader Hu Jintao gave insightful comment on this new approach of South-South Cooperation and South-North Dialogue during this Summit77. He pointed out that the world is in the course of great changes and adjust- ments. In recent years, the overall power of the developing countries is on the rise; their cooperation is enhanced; and their influence on international af- fairs is becoming greater. China, India, Brazil, South Africa and Mexico are all important developing countries, which have taken up 42% of world’s po-

76 See An CHEN, A Reflection on the South-South Coalition in the Last Half Century from the Perspective of International Economic Law-making: From Bandung, Doha and Cancun to Hong Kong, The Journal of World Investment & Trade, Vol.7, No.2, 2006. 77 See ‘Hu Jintao’s Remarks in the Meeting of Leaders of Five Developing Countries’ at http://news. xinhuanet.com/newscenter/2008-07/08/content_8512384.htm. 53 A. Chen, F. Yang: The Voice from China on Reforming Oieo and Establishing Nieo pulation and 12% of world’s GDP. The enhanced coordination and coopera- tion between these five nations will not only bring benefit to development of each nation, but also to the consolidation of South-South Cooperation, the promotion of South-North Dialogue, and the sacred cause of peace and de- velopment of mankind. In the past year, multi-level mechanisms for coordi- nation were set up by these five nations and have attained positive effects in dialogues with the G8. Efforts should be continued on such basis. Now that these five nations have become an important component of the world’s eco- nomy and the major driving force of world’s economic growth, they should enhance reciprocally bilateral and multilateral communication and coopera- tion in order to tackle unfavourable conditions in joint effort, maintain mo- mentum and vitality for rapid economic growth, and continue to contribute to the world economy. Hu Jintao emphasized that: South-South Cooperation is an important way to secure common deve- lopment and to overcome one’s own shortcomings by learning from ea- ch other. We should make contributions to the South-South Cooperation and be a role model. On the one hand, we should in joint effort promo- te multilateralism and democratization of international relation; stand up for the developing countries the right to participate and making decisions; and create favourable external environment for the development of the developing countries. On the other hand, we should play an active part in promoting the reform of international economic, financial, trade system, safeguarding the legitimate right of the developing countries; strengthe- ning the ability of the developing countries to cope with all kinds of risks and challenges; and promoting a balanced, harmonious and sustainable development of the world economy. Hu’s comments are concise but comprehensive, which have not only inclu- ded summary of the past and vision for the future of the South-South Self-re- liance, but also emphasized on five nations’ historical task and their influen- ces on the South-South Self-reliance as a role model and mainstay. These in- sightful analyses have drawn worldwide attention, and have the significance of enlightening and guiding China’s self-positioning in the course of establi- shing the NIEO. Significance of being active in international affairs and being a role mo- del and mainstay for the NIEO has once again been demonstrated by the South-North Dialogue in Washington Summit of November, 2008. The who- le world is suffering from a severe international financial crisis, of which the pervasiveness, the extensity and impact have been unprecedented since 1930s. In Washington D.C., U.S., in mid-November 2008, leaders of world’s major developed and developing countries held a Summit of G20 to map out a countermeasure. Major developing countries including China, Brazil, Ar- gentina, India, Indonesia, Mexico, and South Africa gathered in the capital 54 The European Journal of Management and Public Policy • Vol.13, No.1 (2013)

of U.S. They made it clear that the international community should draw les- sons from this worldwide financial crisis and reform the international finan- cial system to the extent necessary. This reform should be kept in the track towards establishment of a just, fair, tolerant, and orderly new internatio- nal financial order, and be conducted comprehensively, equitably, gradual- ly and effectively. Comprehensiveness means that design of the new system must be carried out as a whole. Specifically speaking, the international finan- cial system, monetary system, the financial institutions, rules and procedures of international finance, etc. should be included in the reform. As for equi- tableness, it means overall planning and all-round consideration. The reform should reflect interests of different parties, and form a mechanism for deci- sion-making and management which allows for the participation of a vast variety of parties, especially the emerging market economies and the deve- loping countries. What’s should be emphasized is that the we should reform the mechanisms for electing the decision-makers, strengthen for the develo- ping countries the rights to speak and their representativeness in the interna- tional financial institutions.78 This clear-cut stand has long been asserted by the developing countries, and its reassertion against the background of severe international financial cri- sis is of great significance. The world is watching and expecting. Put it in another way, efforts to reform the existing international financial regime (the Bretton Woods System) incarnating the old international economic order has been summoned again, to which the hegemonies could no longer turn a de- af ear as they used to be. The financial crisis Summit of the G20 in the early of April 2009 in Britain, as well as in September of the same year in Pittsburgh, have all seen Chine- se leader’s reaffirmation of China’s stand: major developing countries should do something actively, being a role model and mainstay, in undertaking glo- bal historical tasks through South-South Self-reliance; they should positively promote the ‘eradicating the old and fostering the new’ of international fi- nancial order and thereby urge a progressive and overall renewal of inter- national economic order. These affirmations will be again verified vividly by international practice of the day.79 The Pittsburgh Summit saw another bre-

78 See Hu Jintao’s Remarks in the Summit on Financial Markets and the World Economy: Uni- ty in Adversity’, at http://news.xinhuanet.com/newscenter/2008-11/16/content_10364070. htm, last accessed on August 31, 2014. See Hu Jintao’s Address on the G20 Summit: Row in the Same Boat in Tough Times (携手合作同舟共济), available at: http://www.chinanews.com/ gn/news/2009/04-03/1630688.shtml, last accessed on August 31, 2014; see also China’s Influ- ence Raises Concerns, American Media suggests G20 to invite Beijing, available at: http://news. xinhuanet.com/world/2009-03/30/content_11099256.htm; see also G20 London Summit Ush- ers in New International Order, available at: http://news.xinhuanet.com/world/2009-04/04/con- tent_11129541.htm. 79 See Hu Jintao’s Address on the G20 Summit: Row in the Same Boat in Tough Times (携手合 作同舟共济), available at: http://www.chinanews.com/gn/news/2009/04-03/1630688.shtml, last accessed on August 31, 2014 55 A. Chen, F. Yang: The Voice from China on Reforming Oieo and Establishing Nieo ak-through, reflected by Para. 50 of the G20 Leaders’ Statement, declaring that “Today, we designated the G-20 as the premier forum for our interna- tional economic cooperation.”80 This signals a start when developed powers would have to cease being condescending and arrogant, and begin to treat the main representative countries of the global weak South as equal to carry out South-North dialogue.81 In a word, the events aforementioned which took place in-between 2008 and 2009 have shown that: Firstly, the strategy of South-South Self-reliance is taking root in the hearts of people around the globe, which makes it an important means of fighting for and maintaining equal status of weak states in the international community. Secondly, the strategy has always been focusing on winning equal right to speak, to participate and to make decisions on major world economic and trade issues.82 Thirdly, the fundamental purpose of this strategy has always been promo- ting the comprehensive reform of the international economic order stage by stage; changing the current situation in which the global wealth is unevenly and unjustly distributed; and realizing redistribution of the global wealth and common prosperity around the globe.

3.4. Main Viewpoints of New China’s Present (Fifth) Generation Leaders The continuity of Communist Party of China as the ruling party since 1949 has enabled the stability of China’s foreign policy. The present fifth genera- tion of Chinese leaders has expressed on various occasions yet again similar views on steering China’s foreign policy directions, including on issues like South-South collective self-reliance, and the reformation of OIEO. During his one and a half year presidency, President Xi Jinping has time and again made consistent and evolutionary elaborations as regards the abundant con- notations of China’s traditional self-positioning, and has been endeavoring to

80 See G20 Leaders’ Statement: The Pittsburgh Summit, September 24-25, 2009, available at: http:// www.g20.utoronto.ca/2009/2009communique0925.html, last accessed on August 31, 2014. 81 See An CHEN, A Third Comment on China’s Strategic Position in the Establishment of NIEO: To Where would the G20 & its “Path from Pittsburgh” Lead-The Pending Riddle of the New Platform of G20 South-North Cooperation and the Conflict between Ideas such as “Compli- ance” and “Change”, Journal of International Economic Law (China), Vol. 16, No. 4, 2009, pp.1- 29. 82 See, An Chen, ‘China’s Strategic Positioning in establishing the NIEO’ ; ‘Reflections on the South-South Coalition in the Last Half Century from the Perspective of International Econom- ic Law-making: From Bandung, Doha and Cancun to Hong Kong (revised in 2008)’, in An Chen on International Economic Law (five-volume edition), Fudan University Press, 2008, respective- ly VI and XIV , Part I, Vol. 1 (The Voice from China) An Chen on International Economic Law, Springer-verlag Press, 2013, Chapters 6 & 7. following three main aspects might be categorized from these elaborations and 56 followingfollowingfollowing threethree threefollowing mainmain followingmain aspectsaspects aspects three three might might mainmight followingmain beaspectsbe be aspects categorizedcategorized categorized three might might main be fromfrom from be categorizedaspects categorized thesethese these mightelaborationselaborations elaborations from frombe thesecategorized these andand andelaborations elaborations from theseand and elaborations and following three main aspects might be categorized fromfollowing theseThe threeelaborations Europeanfollowingaccording mainfollowing Journal aspectsof threeactions.andManagement three mainmight and followingfollowing main aspects be aspectscategorized three threemight might mainmain be from categorized beaspectsaspects categorizedthese mightmight elaborations from bebefrom these categorizedcategorized these andelaborations elaborations fromfrom theseandthese and elaborationselaborations andand followingfollowingfollowing three three three followingmain main main followingaspects aspects aspectsthree might might mainthree followingmight followingbe aspectsbemain followingcategorizedbe categorized categorizedthreeaspects might threePublic mainthree Policy mightfrombemain from • categorizedaspectsVol.13,frommain these aspectsbethese No.1 thesecategorizedaspects might(2013)elaborations elaborations might elaborationsfromaccordingaccording accordingmightbe becategorized thesefrom categorizedbeand and actions. actions.elaborations categorizedtheseactions.and according accordingfromelaborations from these fromand actions.these actions. elaborationsthese and elaborations according elaborations and actions. and and accordingfollowing actions. three main aspects might be categorized from these elaborations and accordingaccording actions. actions. accordingaccordingaccording actions. actions. actions.according according actions. actions.according accordingaccordingaccording actions. actions. actions. actions.according Firstly, according President actions. actions. 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Union Union Balkans and UnionSecurity – European ––Peace, Peace, New and– – Peace, in New– European Balkans theNewDevelopment,– Development, New UnionBalkans Balkans Development, Balkans Balkans and – Union Peace,and European andIntegration IntegrationandEuropean – EuropeanDevelopment,IntegrationPeace, European Union Development, Union Union –Union Peace,Integration – Peace,– Peace,– Development, Peace,Integration Development, Development, Development, Integration Integration Integration Integration – New Balkans and European Union – Peace, Development, IntegrationFor example, withFor theexample, forwarding with theof China’sforwarding “going of China’sabroad” “going strategy, abroad” lots of strategy, lots of ForFor example, example, with with the the forwarding forwarding of ofChina’s China’s “going “going abroad” abroad” strategy, Chinesestrategy, lots enterpriseslots of ofChinese and enterprises individuals and crowded individuals into Africacrowded and into Latin Africa America, and Latin America, ChineseChinese enterprises enterprises and and individuals individuals crowded crowded into into Africa Africa and and Latincausing Latin America, America, a number causing of novel a number prejudices of novel against prejudices China. Someagainst western China. mediaSome westernhas media has causingcausing a numbera number of ofnovel novel prejudices prejudices against against China. China. Some Some western westernshown media media a certain has has shown mental a aberrationcertain mental – maybe aberration out of – jealousymaybe out– towards of jealousy the fact– towards the fact shownshown a certaina certain mental mental aberration aberration – –maybe maybe out out of ofjealousy jealousy – –towards thattowards Sino-African the the fact fact that andSino-African Sino-Latin and American Sino-Latin economic American cooperation economic has cooperation been has been thatthat Sino-African Sino-African and and Sino-Latin Sino-Latin American American economic economic cooperation cooperationexpanding has has been rapidly.been expanding 99 They rapidly.wantonly,99 They as a Chinesewantonly, saying, as a Chinese measure saying, the stature measure of the stature of expandingexpanding rapidly. rapidly.99 99They They wantonly, wantonly, as asa Chinesea Chinese saying, saying, measure measuregreat the the staturemen stature by of the ofgreat yardstick men by of thesmall yardstick men, or, of gauge small themen, heart or, gauge of a gentleman the heart withof a gentleman with greatgreat men men by by the the yardstick yardstick of ofsmall small men, men, or, or, gauge gauge the the heart heart of ofa gentlemana gentleman with with the own mean measure ( ), make irresponsible remarks ( the own mean measure (以ꐏ⊺之度君魐之腹以ꐏ⊺之度君魐之腹), make irresponsible remarks (信 信 thethe own own mean mean measure measure ( ( ), ),make make irresponsible irresponsible remarks remarks ( ( ), and arbitrarily tag China with a so-called “New Colonialism” label. 以ꐏ⊺之度君魐之腹以ꐏ⊺之度君魐之腹 ⼜⼝口雌黄), and 信arbitrarily信⼜⼝口雌黄 tag China with a so-called “New Colonialism” label. ⼜⼝口雌黄⼜⼝口雌黄), ),and and arbitrarily arbitrarily tag tag China China with with a aso-called so-called “New “New Colonialism” Colonialism”Some western label. label. Somepoliticians, western governmental politicians, thinkgovernmental tanks and think mainstream tanks and medias mainstream medias SomeSome western western politicians, politicians, governmental governmental think think tanks tanks and and mainstream mainstreamhave preached medias medias have“China preached Threat (Africa)“China ThreatDoctrine”, (Africa) trying Doctrine”, their best trying to discredit their best to discredit havehave preached preached “China “China Threat Threat (Africa) (Africa) Doctrine”, Doctrine”, trying trying their their best Sino-Africanbest to todiscredit discredit relation, Sino-African accusing relation, that Chinaaccusing is carryingthat China out is new carrying colonialism out new colonialism Sino-AfricanSino-African relation, relation, accusing accusing that that China China is iscarrying carrying out out new new colonialism colonialism 98 See Xi's speech 98at See'Five Xi's Principles speech atof 'FivePeaceful Principles Coexistence' of Peaceful anniversary, Coexistence' “Carry anniversary, forward the “Carry forward the 98 See98 See Xi's Xi's speech speech at at'Five 'Five Principles Principles of ofPeaceful Peaceful Coexistence' Coexistence' anniversary, anniversary, “Carry “CarryFive forward forward Principles the the ofFive Peaceful Principles Coexistence of Peaceful to buildCoexistence a better to worldbuild througha better win-winworld through win-win FiveFive Principles Principles of ofPeaceful Peaceful Coexistence Coexistence to tobuild build a abetter better world world through throughcooperation”, win-win win-win cooperation”,available at: http://www.china.org.cn/world/2014-07/07/available at: http://www.china.org.cn/world/2014-07/07/ cooperation”,cooperation”, available available at: at: http://www.china.org.cn/world/2014-07/07/ http://www.china.org.cn/world/2014-07/07/content_32876905.htm,content_32876905.htm, last accessed on August last accessed 31, 2014. on August 31, 2014. content_32876905.htm,content_32876905.htm, last last accessed accessed on onAugust August 31, 31, 2014. 2014. 99 The volume of Sino-African99 The volume trade of Sino-Africanhas increased trade from has $0.82 increased billion fromin 1992, $0.82 to $10.6billion billion in 1992, in to $10.6 billion in 99 The99 The volume volume of ofSino-African Sino-African trade trade has has increased increased from from $0.82 $0.82 billion billion in in1992, 1992, to to$10.6 2000,$10.6 billion tobillion $100 in in billion 2000, in 2008,to $100 to billion$200 billion in 2008, in 2012,to $200 with billion China in becoming2012, with Africa’s China becominglargest Africa’s largest 2000,2000, to to$100 $100 billion billion in in2008, 2008, to to$200 $200 billion billion in in2012, 2012, with with China China becoming becoming Africa’s tradeAfrica’s partner largest largest in 2009.trade The partner direct in investment 2009. The fromdirect China investment to Africa from has China mounted to Africa up to has $15 mounted up to $15 tradetrade partner partner in in2009. 2009. The The direct direct investment investment from from China China to toAfrica Africa has has mounted mountedbillion up up totill to$15 2012. $15 billion till 2012. billionbillion till till 2012. 2012. As for Sino-Latin AmericanAs for Sino-Latin trade volume American in 2013, trade Sino-Brazilian volume in 2013, turnover Sino-Brazilian broke through turnover $90 broke through $90 As As for for Sino-Latin Sino-Latin American American trade trade volume volume in in2013, 2013, Sino-Brazilian Sino-Brazilian turnover turnover broke brokebillion, through through with $90 $90 China billion, maintaining with China Brazil’s maintaining largest trade Brazil’s partner, largest while trade Brazil partner, being while China’s Brazil being China’s billion,billion, with with China China maintaining maintaining Brazil’s Brazil’s largest largest trade trade partner, partner, while while Brazil Brazil beingninth being China’slargest; China’s Sino-Argentine ninth largest; turnover Sino-Argentine reached $14.8turnover billion, reached 2400 $14.8 times billion, more 2400than thetimes more than the ninthninth largest; largest; Sino-Argentine Sino-Argentine turnover turnover reached reached $14.8 $14.8 billion, billion, 2400 2400 times times more numbermore than than whenthe the thesenumber two whencountries these first two established countries diplomaticfirst established relations, diplomatic with China relations, with China numbernumber when when these these two two countries countries first first established established diplomatic diplomatic relations, relations, becomingwith with China China Argentina’s becoming second Argentina’s largest tradesecond partner largest and trade main partner capital and source; main Sino-capital source; Sino- becomingbecoming Argentina’s Argentina’s second second largest largest trade trade partner partner and and main main capital capital source; Venezuelansource; Sino- Sino- trade volumeVenezuelan has alsotrade increased volume hasfrom also $1.4 increased million fromto $19.2 $1.4 billion, million with to $19.2 China billion, with China VenezuelanVenezuelan trade trade volume volume has has also also increased increased from from $1.4 $1.4 million million to to$19.2 $19.2 billion, billion,becoming with with China China Venezuela’s becoming second Venezuela’s largest trade second partner. largest trade partner. becomingbecoming Venezuela’s Venezuela’s second second largest largest trade trade partner. partner. !72 !72 !72 !72

Proceedings of the Second International Round Table Proceedings of the Second International Round Table ProceedingsProceedings of ofthe the Second Second International International Round Round Table Table 57 A. Chen, F. Yang: The Voice from China on Reforming Oieo and Establishing Nieo

With the relentless enhancing of China’s comprehensive national strength to- gether with its global influence, certain major players on the world arena have long shown their antagonism. Some developing countries are not with- out their doubts either, they take a suspicious view regarding whether China would also pursue hegemony. These new circumstances are testing the con- sistency of the diplomatic strategy that China has been adopting. For example, with the forwarding of China’s “going abroad” strategy, lots of Chinese enterprises and individuals crowded into Africa and Latin America, causing a number of novel prejudices against China. Some western media has shown a certain mental aberration – maybe out of jealousy – towards the fact that Sino-African and Sino-Latin American economic cooperation has been expanding rapidly.85 They wantonly, as a Chinese saying, measure the stat- ure of great men by the yardstick of small men, or, gauge the heart of a gentle- man with the own mean measure (以小人之心度君子之腹), make irrespon- sible remarks (信口雌黄), and arbitrarily tag China with a so-called “New Colonialism” label. Some western politicians, governmental think tanks and mainstream medias have preached “China Threat (Africa) Doctrine”, trying their best to discredit Sino-African relation, accusing that China is carrying out new colonialism throughout Africa and is plundering Africa of its nat- ural resources. Christian Science Monitor from the U.S. once reported that “[T]he rapid economic development and a strong demand for mineral re- sources and market have led China to Africa… China is crazily feeding with the oil berried in countries around Guinean Coast.” In one speech of Jack Straw, former Foreign Secretary of UK, addressed in February 2006 during his visit to Nigeria, China is listed with poverty, regional conflict, terrorism and the like as ten grand challenges that Africa must face. He also claimed that “what China is doing to Africa today is almost what the West have do- ne 150 years ago.” The Economist reported in a more vivid way that “about 600 years ago, seafarers of Ming Dynasty brought back a giraffe from the East coast of African continent to satisfy the Emperor’s curiosity; while nowadays vehicles from China sail periodically on a similar ship route loaded with oil, iron ores and other commodities, in order to satisfy the huge appetite of this

85 The volume of Sino-African trade has increased from $0.82 billion in 1992, to $10.6 billion in 2000, to $100 billion in 2008, to $200 billion in 2012, with China becoming Africa’s largest trade partner in 2009. The direct investment from China to Africa has mounted up to $15 billion till 2012. As for Sino-Latin American trade volume in 2013, Sino-Brazilian turnover broke through $90 billion, with China maintaining Brazil’s largest trade partner, while Brazil being China’s ninth largest; Sino-Argentine turnover reached $14.8 billion, 2400 times more than the number when these two countries first established diplomatic relations, with China becoming Argentina’s sec- ond largest trade partner and main capital source; Sino-Venezuelan trade volume has also in- creased from $1.4 million to $19.2 billion, with China becoming Venezuela’s second largest trade partner. 58 The European Journal of Management and Public Policy • Vol.13, No.1 (2013)

gigantic economic body.”86 During her tenure, Hilary Clinton, former United States Secretary of State, has also specifically expressed her concern of Chi- na’s “new colonialism” in Africa.87 The so-called “new colonialism” is coined to generalize a new pattern of western powers’ exploiting the newly independent but still weak develop- ing countries those were originally colonies before WWII. After WWII, the world situation have rendered the direct colonialism impossible to maintain, forcing the traditional powers to turn to a more covert exploiting means. By taking full advantage of their accumulated economic strength, these western powers have continued to export their own value priorities to weak develop- ing countries, and try to integrate them into a world economic system that was established by these powers and mainly for themselves, and continue to squeeze economic benefits from the weak countries who have transformed from the weak countries who have transformed from original colonies onlyfrom into original colonies only into modern raw material base areas, sales mar- modern raw material base areas, sales markets and investment destinations.kets102 and investment destinations.88 However, as numerous facts are showing, compared to aforesaid ultra-selfish However, as numerous facts are showing, compared to aforesaid ultra-selfish behavioral pattern, China has been acting rather to the contrary, by holding behavioral pattern, China has been acting rather to the contrary, by holding“through mutual beneficial cooperation to win-win (互利、互惠、合作、共 “through mutual beneficial cooperation to win-win (互利、互惠、合作、共赢)” as its fundamental norm of conducts, by practicing honesty and frank- its fundamental norm of conducts, by practicing honesty and frankness,ness, by by matching its deeds strictly to its words, and by acting as transparent- matching its deeds strictly to its words, and by acting as transparentlyly andand consistently as possible.89 consistently as possible.103 As a matter of fact, there are also a lot of reports that pertinently comment and fairly praise China’s economic and trade practice with African and Latin As a matter of fact, there are also a lot of reports that pertinently commentAmerican and countries. For example, right after the 2006 Beijing Summit of the fairly praise China’s economic and trade practice with African andForum Latin on China-Africa Cooperation, various newspapers from Spain, Ger- American countries. For example, right after the 2006 Beijing Summit manyof the and the U.S. have reported this fruitful event with a supportive tone. La Forum on China-Africa Cooperation, various newspapers from Spain, GermanyVanguardia of Spain reported on Nov. 6 that China does not make accusation and the U.S. have reported this fruitful event with a supportive tone.of other La countries’ development strategy, nor add any non-trade conditions Vanguardia of Spain reported on Nov. 6 that China does not make accusation of other countries’ development strategy, nor add any non-trade conditions86 toSee itsXiaochun Lin, West Preaching China’s New Colonialism in Africa, available at: http://www. contracts to interfere with other countries’ domestic affairs. Such brand southcn.com/news/international/zhuanti/wjbfz/lfkm/200606170131.htm,new Sep. 30, 2014. See also Zezhong ZHANG, Sino-African Economic and Trade Cooperative Mechanism in New Times – style of China as a responsible power is worthy of appreciation, especiallyFrom in a Perspective of International Economic Law, People’s Press of Shanghai, 2013,pp.145-147. today’s unrest and chaotic world. Frankfurter Allgemeine Zeitung of Germany87 See ‘Africa, China and governance: A new colonialism?’, at http://www.one.org/us/2011/06/16/ reported on the same day that this Summit has shown China’s partnership africa-china-and-governance-a-new-colonialism/,with Sep. 30, 2014. See also ‘Hillary Clinton Warns Africa Of ‘New Colonialism’’, at http://www.huffingtonpost.com/2011/06/11/hillary-clinton-afri- Africa through a series of new cooperation and deals. African countries widelyca-new-colonialism_n_875318.html, Sep. 30, 2014. praise the unconditional aid and loan from China, and are very impressive88 It is ofLenin who first pointed out the characteristic of “neo-colonialism”, that the imperialistic China’s achievement in developing its own domestic economics. An Editorialcountries mainly exploit economic means to control and exploit weak countries, instead of di- rectly occupy their lands. See Vladimir Lenin, Notes on Imperialism, in Completed Works of from the US QiaoBao (uschinapress.com) reported that China is the largestLenin, People’s Press, 1959, Vol.39, p.280. developing country on earth with 56 groups of minorities, who advocates 89for Document the on China’s Policy towards Africa issued by Chinese government on January 12, 2006 could be seen as the official counter argument against these accusations. African coun- Five Principles of Peace and Co-existence and the ideal of harmonious world,tries have found official source to relieve their doubts, and have thus regarded China as usu- and opposes the interference with other countries’ domestic affairs. Chinaal istheir a reliable “All-weather Friend”. This document is available at http://news.xinhuanet.com/ proof that poverty can be successfully relieved through its own characteristicworld/2006-01/12/content_4042333.htm, Sep. 30, 2014. cultural tradition and value system. The mutual need of China and Africa in

102 It is Lenin who first pointed out the characteristic of “neo-colonialism”, that the imperialistic countries mainly exploit economic means to control and exploit weak countries, instead of directly occupy their lands. See Vladimir Lenin, Notes on Imperialism, in Completed Works of Lenin, People’s Press, 1959, Vol.39, p.280.

103 Document on China’s Policy towards Africa issued by Chinese government on January 12, 2006 could be seen as the official counter argument against these accusations. African countries have found official source to relieve their doubts, and have thus regarded China as usual their reliable “All-weather Friend”. This document is available at http:// news.xinhuanet.com/world/2006-01/12/content_4042333.htm, Sep. 30, 2014. !74

Proceedings of the Second International Round Table 59 A. Chen, F. Yang: The Voice from China on Reforming Oieo and Establishing Nieo

to its contracts to interfere with other countries’ domestic affairs. Such brand new style of China as a responsible power is worthy of appreciation, espe- cially in today’s unrest and chaotic world. Frankfurter Allgemeine Zeitung of Germany reported on the same day that this Summit has shown China’s partnership with Africa through a series of new cooperation and deals. Afri- can countries widely praise the unconditional aid and loan from China, and are very impressive of China’s achievement in developing its own domestic economics. An Editorial from the US QiaoBao (uschinapress.com) report- ed that China is the largest developing country on earth with 56 groups of minorities, who advocates for the Five Principles of Peace and Co-existence and the ideal of harmonious world, and opposes the interference with other countries’ domestic affairs.terms China of iseconomic, a proofterms that political, ofpoverty economic, diplomatic can be political, successful and culturaldiplomatic- cooperation and cultural is now cooperation more is now more ly relieved through its ownterms characteristic of economic, cultural political, tradition diplomatic and value andsystem. cultural cooperation is now more termsterms of economic, of economic, political, political, diplomatic diplomatic and culturaland cultural cooperation cooperation is now is morenow more intensive than ever in a globalized104 world.104 terms of economic, political, diplomatic and cultural cooperationThe mutual is neednow ofmore China intensiveintensive and Africa than than in ever everterms in in a ofa globalized globalizedeconomic, world. world.political,104 diplo- intensive than ever in a globalized world.104 104 intensive than ever in a 104globalized world.matic and cultural cooperation is now moreUnder intensive these than aforesaid ever in acircumstances, global- President Xi has, upon his succession as intensive than ever in a globalized world. UnderUnder these these aforesaid aforesaid circumstances, circumstances, President President Xi Xi has, has, upon upon his his succession succession as as UnderUnder these theseaforesaid aforesaid circumstances, circumstances, President Presidentized world.Xi has, Xi90 uponhas, uponhis succession his succession as as the new leader of China, started a series of tight diplomatic visits to Russia, Under these aforesaid circumstances, President Xi has, upon his succession as thethe newnew leaderleader ofof China,China, startedstarted aa seriesseries ofof tighttight diplomaticdiplomatic visitsvisits toto Russia,Russia, the newthe leadernew leader of China, of China, started started a series a series ofUnder tight of these tightdiplomatic aforesaiddiplomatic visits circumstances, visitsto Russia, to Russia, President Africa, Xi has,Middle upon America, his succession Middle Asia, Southeast Asia, Europe, South Korea, the new leader of China, started a series of tight diplomatic visits to Russia, Africa,Africa, MiddleMiddle America,America, MiddleMiddle Asia,Asia, SoutheastSoutheast Asia,Asia, Europe,Europe, SouthSouth Korea,Korea, Africa,Africa, Middle Middle America, America, Middle Middle Asia, Asia,Southeastas Southeastthe new Asia, leader Asia,Europe, of Europe, China, SouthLatin startedSouth Korea, America, aKorea, series MongoliaLatinof tight America, diplomatic and SouthMongolia visits Asia to Rus andduring- South March Asia 2013 during to MarchSeptember 2013 to September Africa, Middle America, Middle Asia, Southeast Asia,sia, Europe, Africa, South Middle Korea, America, Latin Middle America, Asia, SoutheastMongolia Asia, and Europe,South SouthAsia duringKo- March 2013 to September Latin LatinAmerica, America, Mongolia Mongolia and Southand South Asia Asiaduring during March March 2013 2013to 2014.September to September He has advocated 2014. He forhas China’s advocated traditional for China’s diplomatic traditional ideas diplomatic in multiple ideas in multiple Latin America, Mongolia and South Asia during Marchrea, 2013Latin America,to September Mongolia 2014. and He South has Asiaadvocated during Marchfor China’s 2013 totraditional Septem- diplomatic ideas in multiple 2014.2014. He hasHe advocatedhas advocated for China’sfor China’s traditional traditional diplomatic diplomatic ideas ideasin multiple in multiple occasions such as the Fifth BRICS Leaders’ Meeting in South Africa in March 2014. He has advocated for China’s traditional diplomaticber 2014. ideas He in has multiple advocated occasionsoccasions for China’s such such traditional as as the the Fifth Fifth diplomatic BRICS BRICS ideasLeaders’ Leaders’ in mul Meeting Meeting- in in South South Africa Africa in in March March occasionsoccasions such suchas the as Fifth the FifthBRICS BRICS Leaders’ Leaders’ Meeting Meeting in South in South Africa Africa in March in March 2013, the Eighth G20 Summit in Russia in September 2013, Nuclear Security occasions such as the Fifth BRICS Leaders’ Meeting in tipleSouth occasions Africa insuch March as the 2013,2013, Fifth the theBRICS Eighth Eighth Leaders’ G20 G20 Summit SummitMeeting in in Russia SouthRussia Africain in September September in 2013, 2013, Nuclear Nuclear Security Security 2013,2013, the Eighth the Eighth G20 SummitG20 Summit in Russia in Russia in September in September 2013, 2013, Nuclear Nuclear Security Security Summit 2014 in Netherland in March 2014, the Sixth BRICS Leaders’ Meeting 2013, the Eighth G20 Summit in Russia in September March2013, Nuclear2013, the Security Eighth G20SummitSummit Summit 2014 2014 in in Russiain Netherland Netherland in September in in March March 2013, 2014, 2014, Nuclear the the Sixth Sixth BRICS BRICS Leaders’ Leaders’ Meeting Meeting SummitSummit 2014 2014in Netherland in Netherland in March in March 2014, 2014,Security the Sixth the Summit SixthBRICS BRICS 2014 Leaders’ in Leaders’ Netherland Meeting Meeting in March in Brazil 2014, inthe105 July Sixth 2014, BRICS etc. Lead105 As- President Xi stressed time and again, that China Summit 2014 in Netherland in March 2014, the Sixth BRICS Leaders’ Meeting inin Brazil Brazil in in July July 2014, 2014, etc. etc.105 As As President President Xi Xi stressed stressed time time and and again, again, that that China China in Brazilin Brazil in July in 2014,July 2014, etc.105 etc. As105 President As President Xiers’ stressed XiMeeting stressed time in andtimeBrazil again, and in Julyagain, that 2014, China that etc. China 91 As “ willPresident never Xiseek stressed hegemony, time and has no expansionist ambitions ( in Brazil in July 2014, etc.105 As President Xi stressed time and again, that China ““willwill never never seek seek hegemony, hegemony, and and has has no no expansionist expansionist ambitions ambitions ( (中国永远不称霸, 中国永远不称霸, “will never seek hegemony, and has no expansionistagain, that ambitions China “ will( never seek hegemony,106 and has no expansionist106 ambi- 中国永远不称霸, “will never seek hegemony, and has no expansionist ambitions中国永远不称霸, (中国永远不称霸,)”,106 永远不搞扩张 that “China)”, does that not “subscribeChina does to notthe notionsubscribe that to a thecountry notion is that a country is “will never seek hegemony, 106and has no expansionist ambitionstions ( 中国永( , 永远不搞扩张)”,)”92, that that “ China“China does does not not subscribe subscribe to to the notion that a country is )”, )”,that106 “ thatChina “China does doesnot subscribe not subscribe to中国永远不称霸, the to notion the notion that a永远不搞扩张that country a country is is bound to seek hegemony when it grows in strength. Hegemony or militarism is )”,永远不搞扩张106 永远不搞扩张that “China does not subscribe to the notionthe notion that that a country a country is isboundbound bound to toto seek seek hegemonyhegemony whenwhen when it it growsit grows grows in instrength. in strength. strength. Hegemony Hegemony or or militarism militarism is is 永远不搞扩张boundbound to seek to hegemonyseek hegemony when whenit grows it grows in strength. in strength. Hegemony Hegemony or militarism or militarism is is simply not in the genes中国不 of the Chinese. ( ‘ ’ bound to seek hegemony when it grows in strength. HegemonyHegemony or ormilitarism militarism is issimply simplysimply not notnot in inin the thethe genes genesgenes of of the thethe Chinese. Chinese.Chinese. ( (中国不认同‘‘国强必霸论中国不认同’’,中国⊺的㡀脉中没国强必霸论 ,中国⊺的㡀脉中没 simplysimply not in not the in genes the genes of the of Chinese. the Chinese. ( (同‘国强必霸‘ ‘ ’’,中国人的血脉中’ 有 107 中国不认同)”,)”93107, that国强必霸论 China “,中国⊺的㡀脉中没will more actively promote common simply not in the genes of the Chinese. ( ‘ 中国不认同中国不认同’ 国强必霸论国强必霸论,中国⊺的㡀脉中没,中国⊺的㡀脉中没有称王称霸、穷兵黩武的基因有称王称霸、穷兵黩武的基因)”,)”,107 that that China China “ “willwill more more actively actively promote promote common common )”,中国不认同107 )”,that107 China that国强必霸论 China “thatwill China“more,中国⊺的㡀脉中没will more actively“will moreactively promote actively promote有称王称霸、穷兵黩武的基因 common promote common common development, development, uphold uphold the the right right approach to justice and interests with a priority to 有称王称霸、穷兵黩武的基因有称王称霸、穷兵黩武的基因)”,107 that China “will more actively promote common development,development, uphold uphold the the right right approach approach to to justice justice and and interests interests with with a a priority priority to to 有称王称霸、穷兵黩武的基因development,development, uphold uphold the right the rightapproach approach to justiceapproach to justice and to interests andjustice interests and with interests awith priority a with priority to a priority to justice, to justice, and andpromote promote North-South North- dialogue and South-South cooperation. In development, uphold the right approach to justice and interests with a priority to justice,justice, andand promotepromote North-SouthNorth-South dialoguedialogue andand South-SouthSouth-South cooperation.cooperation. InIn justice,justice, and promoteand promote North-South North-South dialogue dialogueSouth and dialogueSouth-Southand South-South and South-South cooperation. cooperation. cooperation. In In particular, In particular, we we will will help help other developing countries achieve autonomic and justice, and promote North-South dialogue and South-South cooperation. In particular,particular, wewe willwill helphelp otherother developingdeveloping countriescountries achieveachieve autonomicautonomic andand particular,particular, we willwe helpwill helpother otherdeveloping developing countries countries achieve achieve autonomic autonomic and and sustainable development. ( particular, we will help other developing countries achieve autonomic and sustainablesustainable development. development. ( (坚持正确义利观,义利并举、以义为先,促进南北对话和南坚持正确义利观,义利并举、以义为先,促进南北对话和南 sustainable development. ( 90 See Positive Comments from World Media on Beijing Summit, 坚持正确义利观,义利并举、以义为先,促进南北对话和南in Military Newspaper, No.2, sustainable development.坚持正确义利观,义利并举、以义为先,促进南北对话和南 (坚持正确义利观,义利并举、以义为先,促进南北对话和南 sustainable development. (坚持正确义利观,义利并举、以义为先,促进南北对话和南Nov. 8, 2006, available at: http://www.chinamil.com.cn/site1/zbxl/2006-11/08/content_638228. htm. 91 See Diplomatic Strategy and Ideas as Reflected by Xi Jinping’s Ten Visits, available at: http://big5. xinhuanet.com/gate/big5/news.xinhuanet.com/politics/2014-10/09/c_1112741340.htm, Sep. 30, 2014. 92 See Xi Jinping’s Address during his visit to Mongolia in August 2014, available at: http://news. sohu.com/20140823/n403698395.shtml, last accessed on August 31, 2014. 93 See Xi’s speech at ‘Five Principles of Peaceful Coexistence’ anniversary, “Carry forward the Five Principles of Peaceful Coexistence104 to build a better world104 See through Positive win-win Comments cooperation”, from availWorld- Media on Beijing Summit, in Military Newspaper, No.2, 104 See See Positive Positive Comments Comments from from World World Media Media on on Beijing Beijing Summit, Summit, in in Military Military Newspaper, Newspaper, No.2, No.2, 104 See104 Positive Comments from World Media on Beijingable Summit, at: http://www.china.org.cn/world/2014-07/07/content_32876905.htm, in Military Newspaper,Nov. No.2, 8, 2006, availableNov. 8, at:2006, lasthttp://www.chinamil.com.cn/site1/zbxl/2006-11/08/ accessedavailable on Auat:- http://www.chinamil.com.cn/site1/zbxl/2006-11/08/ 104 See Positive Comments from World Media on Beijing Summit, in Military Newspaper,Nov. 8, No.2,2006, available at: http://www.chinamil.com.cn/site1/zbxl/2006-11/08/ See Positive CommentsNov. 8, from 2006, World available Media on Beijingat: http://www.chinamil.com.cn/site1/zbxl/2006-11/08/ Summit, in Militarygust 31, 2014. Newspaper, No.2, content_638228.htm. Nov. 8, 2006, available at: http://www.chinamil.com.cn/site1/zbxl/2006-11/08/content_638228.htm.content_638228.htm. Nov. 8, 2006,content_638228.htm. availablecontent_638228.htm. at: http://www.chinamil.com.cn/site1/zbxl/2006-11/08/ 105 105 See Diplomatic Strategy and Ideas as Reflected by Xi Jinping’s Ten Visits, available at: http:// content_638228.htm. 105 See Diplomatic Strategy and Ideas as Reflected by Xi Jinping’s Ten Visits, available at: http:// 105 See Diplomatic Strategy and Ideas as Reflected by Xi Jinping’s Ten Visits, available at: http:// See105 Diplomatic Strategy and Ideas as Reflected by Xi Jinping’s Ten Visits, available big5.xinhuanet.com/gate/big5/news.xinhuanet.com/politics/2014-10/09/c_1112741340.htmat: http:// http:// big5.xinhuanet.com/gate/big5/news.xinhuanet.com/politics/2014-10/09/c_1112741340.htm, Sep. 30, , Sep. 30, 105 See Diplomatic Strategy and Ideas as Reflected by Xi Jinping’s Ten Visits, availablebig5.xinhuanet.com/gate/big5/news.xinhuanet.com/politics/2014-10/09/c_1112741340.htm at: , Sep. 30, See Diplomatic Strategybig5.xinhuanet.com/gate/big5/news.xinhuanet.com/politics/2014-10/09/c_1112741340.htm and Ideas as Reflected by Xi Jinping’s Ten Visits, available at: http:// , Sep. 30, 2014. big5.xinhuanet.com/gate/big5/news.xinhuanet.com/politics/2014-10/09/c_1112741340.htm2014.2014., Sep. 30, big5.xinhuanet.com/gate/big5/news.xinhuanet.com/politics/2014-10/09/c_1112741340.htm2014. 2014. , Sep. 30, 106 106 See Xi Jinping’s Address during his visit to Mongolia in August 2014, available at: http:// 2014. 106 See See Xi Xi Jinping’s Jinping’s Address Address during during his his visit visit to to Mongolia Mongolia in in August August 2014, 2014, available available at: at: http:// http:// 106 See106 Xi Jinping’s Address during his visit to Mongolia in August 2014, available at:news.sohu.com/20140823/n403698395.shtml, http:// news.sohu.com/20140823/n403698395.shtml, last accessed on August last 31,accessed 2014. on August 31, 2014. 106 See Xi Jinping’s Address during his visit to Mongolia in August 2014, availablenews.sohu.com/20140823/n403698395.shtml, at: http:// last accessed on August 31, 2014. See Xi Jinping’snews.sohu.com/20140823/n403698395.shtml, Addressnews.sohu.com/20140823/n403698395.shtml, during his visit to Mongolia in August last accessed2014, last accessed available on August on at: August 31,http:// 2014. 31, 2014. 107 107 See Xi's speech at 'Five Principles of Peaceful Coexistence' anniversary, “Carry forward the news.sohu.com/20140823/n403698395.shtml, last accessed on August 31, 2014. 107 See See Xi's Xi's speech speech at at 'Five 'Five Principles Principles of of Peaceful Peaceful Coexistence' Coexistence' anniversary, anniversary, “Carry “Carry forward forward the the 107 See107 Xi's speech at 'Five Principles of Peaceful Coexistence' anniversary, “Carry forwardFive thePrinciples of FivePeaceful Principles Coexistence of Peaceful to build Coexistence a better toworld build through a better win-win world through win-win 107 See Xi's speech at 'Five Principles of Peaceful Coexistence' anniversary, “CarryFive forwardPrinciples the of Peaceful Coexistence to build a better world through win-win See Xi's speech Fiveat 'Five Principles Principles of of PeacefulPeaceful Coexistence'Coexistence anniversary,to build a “Carrybetter forwardworld thethrough win-win cooperation”, available at: http://www.china.org.cn/world/2014-07/07/ Five Principles of Peaceful Coexistence to build a better world throughcooperation”,cooperation”, win-win availableavailable at:at: http://www.china.org.cn/world/2014-07/07/http://www.china.org.cn/world/2014-07/07/ Five Principlescooperation”, of cooperation”,Peaceful Coexistenceavailable available toat: build http://www.china.org.cn/world/2014-07/07/at: a http://www.china.org.cn/world/2014-07/07/better world through win-win content_32876905.htm,content_32876905.htm, last accessed on August last 31,accessed 2014. on August 31, 2014. cooperation”, available at: http://www.china.org.cn/world/2014-07/07/ content_32876905.htm,!75 last accessed on August 31, 2014. content_32876905.htm,content_32876905.htm, last accessed last accessed on August on August 31, 2014. 31, 2014. !75!75 content_32876905.htm,!75 !75 last accessed on August 31, 2014. !75 Reconciliation, ToleranceReconciliation, and Human Tolerance Security and in Humanthe Balkans Security in the Balkans Reconciliation, – New Tolerance Balkans andand HumanEuropean Security Union in – thePeace, Balkans Development, Integration Reconciliation,Reconciliation, Tolerance Tolerance and Human and Human Security Security in the inBalkans the Balkans – – New New Balkans Balkans and and European European Union Union – – Peace, Peace, Development, Development, Integration Integration Reconciliation, – New – Balkans New Tolerance Balkans and European andand HumanEuropean Union Security Union – Peace, in – thePeace, Development, Balkans Development, Integration Integration – New Balkans and European Union – Peace, Development, Integration terms of economic, political, diplomatic and cultural cooperation is now more termstermstermstermsterms of of 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to September LatinLatinLatinLatinLatin America, America, America, America,America, Mongolia Mongolia Mongolia MongoliaMongolia and and and andandSouth South South SouthSouth Asia Asia Asia Asia Asiaduring during during duringduring March March March MarchMarch 2013 2013 2013 20132013 to to toSeptember to toSeptember2014. September SeptemberSeptember He has advocated for China’s traditional diplomatic ideas in multiple 2014.2014.2014.2014.2014. He HeHe Hehas He hashas hasadvocatedhas advocatedadvocated advocatedadvocated for forfor forChina’s for China’sChina’s China’sChina’s traditional traditionaltraditional traditionaltraditional diplomatic diplomaticdiplomatic diplomaticdiplomatic ideas ideasideas ideasideas in in occasionsin multiple in inmultiplemultiple multiplemultiple such as the Fifth BRICS Leaders’ Meeting in South Africa in March occasionsoccasionsoccasionsoccasionsoccasions such such such such suchas as asthe astheas the Fifth the theFifth Fifth FifthFifth BRICS BRICS BRICS BRICSBRICS Leaders’ Leaders’ Leaders’ Leaders’Leaders’ Meeting Meeting Meeting MeetingMeeting in in Southin inSouth inSouth SouthSouth Africa Africa Africa Africa Africa in2013, in Marchin inMarch inMarch MarchtheMarch Eighth G20 Summit in Russia in September 2013, Nuclear Security 2013,2013,2013,2013,2013, the the the Eighththe theEighth Eighth EighthEighth G20 G20 G20 G20 G20Summit Summit Summit SummitSummit in in inRussia inRussia inRussia RussiaRussia in in inSeptember inSeptember inSeptember SeptemberSeptember 2013, 2013, 2013, 2013,2013, Nuclear Nuclear Nuclear NuclearNuclear SummitSecurity Security Security SecuritySecurity 2014 in Netherland in March 2014, the Sixth BRICS Leaders’ Meeting SummitSummitSummitSummitSummit 2014 2014 2014 20142014 in in Netherlandin inNetherland inNetherland NetherlandNetherland in in Marchin inMarch inMarch MarchMarch 2014, 2014, 2014, 2014,2014, the the the Sixth the theSixth Sixth SixthSixth BRICS BRICS BRICS BRICSBRICS Leaders’ Leaders’ Leaders’ Leaders’Leaders’ inMeeting MeetingBrazil Meeting MeetingMeeting in July 2014, etc.105 As President Xi stressed time and again, that China inin Brazilin inBrazil inBrazil Brazil Brazil in in Julyin in July inJuly July July2014, 2014, 2014, 2014, 2014, etc. etc. etc. 105etc. etc.105 105As105 As105 AsPresident As AsPresident President President President Xi Xi Xistressed Xi Xistressed stressed stressed stressed time time time time timeand and and and again,and again, again, again, again, that that that that Chinathat China China China China “will never seek hegemony, and has no expansionist ambitions (中国永远不称霸, “will“will“will““ willneverwill never never never never seek seek seek seek seekhegemony, hegemony, hegemony, hegemony, hegemony, and and and and hasand has has has nohas no noexpansionist no noexpansionist expansionist expansionist expansionist ambitions ambitions ambitions ambitions ambitions ( ( ( ( ( 106 中国永远不称霸,中国永远不称霸,中国永远不称霸,中国永远不称霸,中国永远不称霸,永远不搞扩张)”, that “China does not subscribe to the notion that a country is )”,106)”,106106106 106that that “ China“China does does not not subscribe subscribe to to the the notion notion that that a a country country is is 永远不搞扩张永远不搞扩张永远不搞扩张永远不搞扩张永远不搞扩张)”, )”,)”, that that“thatChina ““ChinaChina does does doesnot subscribe notnot subscribesubscribe to the toto notion thethe notionnotion that thatathat countrybound aa countrycountry tois seek isis hegemony when it grows in strength. Hegemony or militarism is boundboundboundboundbound to to seekto toseek toseek seek seekhegemony hegemony hegemony hegemonyhegemony when when when whenwhen it it growsit grows it itgrows growsgrows in in strength.in instrength. instrength. strength.strength. Hegemony Hegemony Hegemony HegemonyHegemony or or ormilitarism ormilitarismor militarism militarismmilitarism is is is is is simply not in the genes of the Chinese. (中国不认同‘国强必霸论’,中国⊺的㡀脉中没 simplysimplysimplysimplysimply not not not innot not in thein in the inthe genesthe thegenes genes genes genes of of theof of the ofthe Chinese.the theChinese. Chinese. Chinese. Chinese. ( ( ( ( ( ‘ ‘ ‘ ‘‘ ’ ’ ’ ’’ 107 中国不认同中国不认同中国不认同中国不认同中国不认同国强必霸论国强必霸论国强必霸论国强必霸论国强必霸论,中国⊺的㡀脉中没,中国⊺的㡀脉中没,中国⊺的㡀脉中没,中国⊺的㡀脉中没,中国⊺的㡀脉中没有称王称霸、穷兵黩武的基因)”, that China “will more actively promote common )”,)”,107)”,)”,107)”, 107that107 107that that that Chinathat China China China China “ will“ will“ will“ “ willmorewill more more more more actively actively actively actively actively promote promote promote promote promote common common common common common 有称王称霸、穷兵黩武的基因有称王称霸、穷兵黩武的基因有称王称霸、穷兵黩武的基因有称王称霸、穷兵黩武的基因有称王称霸、穷兵黩武的基因60 development, uphold the right approach to justice and interests with a priority to development,development,development,development,development, uphold uphold uphold uphold uphold the the the rightthe theright right right right approach approachThe approach approach approachEuropean to Journal to justiceto to justice tojusticeof justice justiceManagement and and and and interestsand interests interests interests interests with with with with witha apriority a prioritya prioritya priority priority to to to to to Public Policy • Vol.13, No.1 (2013) justice, and promote North-South dialogue and South-South cooperation. In justice,justice,justice,justice,justice, and and and andandpromote promote promote promotepromote North-South North-South North-South North-SouthNorth-South dialogue dialogue dialogue dialoguedialogue and and and andandSouth-South South-South South-South South-SouthSouth-South cooperation. cooperation. cooperation. cooperation.cooperation.particular, In In In InIn we will help other developing countries achieve autonomic and particular,particular,particular,particular,particular, we we we wewill we will will willwillhelp help help help helpother other other otherother developing developing developing developingdeveloping countries countries countries countriescountries achieve achieve achieve achieveachieve autonomic autonomic autonomic autonomicautonomic and and and andand 持正 developing countries achieve autonomic andsustainable sustainable development. development. (坚持正确义利观,义利并举、以义为先,促进南北对话和南 sustainablesustainablesustainablesustainablesustainable development. development. development. development. development. ( ( ( ( ( 确义利 ,义利并 、以义 先,促 南北 和南南合作,特 是帮 ),”108 because “one blossom 坚持正确义利观,义利并举、以义为先,促进南北对话和南坚持正确义利观,义利并举、以义为先,促进南北对话和南坚持正确义利观,义利并举、以义为先,促进南北对话和南坚持正确义利观,义利并举、以义为先,促进南北对话和南坚持正确义利观,义利并举、以义为先,促进南北对话和南108 108 南合作,特别是帮助发展中国家实现෪主和可持续发展 助发展中国家实 自主和可持 发展108),”10894),” because because “one “one blossom blossom 109 南合作,特别是帮助发展中国家实现෪主和可持续发展南合作,特别是帮助发展中国家实现෪主和可持续发展南合作,特别是帮助发展中国家实现෪主和可持续发展南合作,特别是帮助发展中国家实现෪主和可持续发展),”),”) ,” because because “one“ one“one blossomalone blossom blossom does alone not does make a spring ( ).” 109 95109 Ȁ花独放不是春,百花齐放春满园 alonealonealone alonedoes does does notdoes not notnot make makenot makemake makea aspring a spring spring a spring ( ( ((一花 (Ȁ花独放不是春,百花齐放春满园放不是春,百花齐放春).”).”109).”园109 ).”) .” Ȁ花独放不是春,百花齐放春满园Ȁ花独放不是春,百花齐放春满园Ȁ花独放不是春,百花齐放春满园 These diplomatic visits and speeches have responded the doubts against China’s TheseTheseTheseThese diplomatic diplomatic diplomatic diplomaticThese visits visits visitsdiplomatic visitsand and and speeches andspeeches speeches visits speeches andhave have have speeches respondedhave responded responded responded have the respondedthe the doubts doubtsthe doubts doubts against the against against doubtsagainst China’s China’s China’s against China’s Chi - na’s current diplomatic guideline, as well as the aforementionedcurrent unfounded diplomatic guideline, as well as the aforementioned unfounded currentcurrent diplomatic diplomatic guideline, guideline, as aswell well as asthe the aforementioned aforementioned unfounded unfounded 110 currentcurrent diplomaticdiplomaticaccusation guideline,guideline, of “new colonialism.” asas wellwell asas96 theTheythe aforementioned aforementionedhave also reflected unfoundedaccusationunfounded the fact thatof “new Chi- colonialism.” They have also reflected the fact that China accusation of “new colonialism.”110110110 110 They have also reflected the fact that China accusationaccusationaccusation of of of“newna “new “newhas colonialism.” beencolonialism.” colonialism.” always harboring They They They have a have firmhave also also strategicalso reflected reflected reflected confidence, the the the fact fact fact that has resolutionthat that beenChina China China always and am-harboring a firm strategic confidence, resolution and ambition, hashashas been hasbeen been alwaysbeen always alwaysbition, always harboring harboring harboring as harboring regards a afirm a firm thefirm a strategic firm overallstrategic strategic strategic direction confidence, confidence, confidence, confidence, of 104promoting resolution Seeresolution resolution Positive resolution South-South and Commentsand and asambition, and ambition, ambition,regards ambition,from Coopera World the overall- Media on direction Beijing Summit, of promoting in Military Newspaper,South-South No.2, Cooperation and 104104 See104 104See104 See PositiveSee SeePositive Positive Positive Positive Comments Comments Comments asComments Commentsas asregards regardsfromasregards from fromregards from Worldfrom Worldthe World the Worldtion theWorld Mediaoverall Mediathe overall Mediaandoverall Media Media onoverall fulfilling on Beijingdirectionon on Beijingdirectionon directionBeijing Beijing Beijingdirection Summit, Summit, mutualSummit, ofSummit, Summit, of ofpromoting in promoting ofinbeneficialpromotingMilitary in Militaryin inMilitarypromoting Military Military Newspaper, South-SouthNewspaper, Newspaper,South-Southdevelopment. Newspaper,South-South Newspaper, South-South Nov.No.2, No.2, No.2, No.2, No.2,Cooperation 8, Cooperation Cooperation2006, Cooperationfulfilling available and and andmutual and at: http://www.chinamil.com.cn/site1/zbxl/2006-11/08/beneficial development. Nov.Nov. 8,8, 2006,2006, availableavailable at:at: http://www.chinamil.com.cn/site1/zbxl/2006-11/08/http://www.chinamil.com.cn/site1/zbxl/2006-11/08/content_638228.htm. Nov.Nov. Nov.8, 2006,8,8, 2006,fulfilling2006, fulfillingavailablefulfilling fulfillingavailableavailable mutual mutual at:mutual Thirdly, mutualhttp://www.chinamil.com.cn/site1/zbxl/2006-11/08/at: at:beneficial beneficial beneficialhttp://www.chinamil.com.cn/site1/zbxl/2006-11/08/http://www.chinamil.com.cn/site1/zbxl/2006-11/08/ beneficialPresident development. development. development. development.Xi for the first time proposed and promoted the South- content_638228.htm.content_638228.htm.content_638228.htm.content_638228.htm.content_638228.htm. Thirdly, President Xi for the first time proposed and promoted the South-South South strategic idea of the „21st Century 105Silk Road Economic Belt“ and the Thirdly,Thirdly,Thirdly,Thirdly, President President President President Xi Xi Xifor for Xifor the the forthe first firstthe first time firsttime time proposedtime proposed proposed proposed and and and promoted andpromoted promotedSee promoted Diplomatic the the the South-South South-South theStrategySouth-South South-South and Ideas as Reflected by Xi Jinping’s Ten Visits, available at: http:// 105105105 105See105 See Diplomatic Diplomatic Strategy Strategy and and Ideas Ideas„21st as as Reflected ReflectedCentury by byMaritime Xi Xi Jinping’s Jinping’s Silk Ten Ten Road,“ Visits, Visits, availableor available “One at:big5.xinhuanet.com/gate/big5/news.xinhuanet.com/politics/2014-10/09/c_1112741340.htm Beltat: http:// http:// and Onestrategic Road” for idea short, of the "21st Century Silk Road Economic, Sep. Belt" 30, and the "21st See DiplomaticSee See Diplomatic Diplomatic Strategy strategicStrategy Strategy strategicand Ideasand and idea Ideas Ideasasidea Reflectedof as as oftheReflected Reflected the "21st by "21stXi by byJinping’sCentury Xi Xi Century Jinping’s Jinping’s Ten Silk Visits,Ten SilkTen Road Visits, Visits, availableRoad Economicavailable available Economic at: http:// at: at: http:// Belt"http:// Belt" and and the the "21st "21st big5.xinhuanet.com/gate/big5/news.xinhuanet.com/politics/2014-10/09/c_1112741340.htmbig5.xinhuanet.com/gate/big5/news.xinhuanet.com/politics/2014-10/09/c_1112741340.htmbig5.xinhuanet.com/gate/big5/news.xinhuanet.com/politics/2014-10/09/c_1112741340.htmbig5.xinhuanet.com/gate/big5/news.xinhuanet.com/politics/2014-10/09/c_1112741340.htmbig5.xinhuanet.com/gate/big5/news.xinhuanet.com/politics/2014-10/09/c_1112741340.htmstrategicstrategic idea idea whichof of the the would"21st "21st hopefullyCentury Century Silkeffectively Silk Road Road Economicpropel Economic, Sep.,the ,Sep. 2014.,Sep. , Sep.internationalBelt"30,Sep. Belt"30, 30, 30, 30, and and Centurythe theweak "21st "21st Maritimegroups to Silk Road," or “One Belt and One Road” for short, which 2014.2014.2014.2014.2014. CenturyCenturyCenturyCentury Maritime MaritimeMaritime Maritime Silk SilkSilk Road," Silk Road,"Road," Road," or or or“One “Oneor“One “OneBelt BeltBelt andBelt andand One and OneOne Road”One Road”Road” Road” for forfor short, short,forshort, short,which whichwhich which spread their wings and take off together. 106 would hopefully effectively propel the international weak groups to spread their wouldwouldwouldwould hopefully hopefully hopefully hopefully effectively effectively effectively effectively propel propel propel propel the the the international internationalthe international international weak weak weak See weakgroups groups Xigroups Jinping’sgroups to to spreadto spread spreadtoAddress spread their their their during their his visit to Mongolia in August 2014, available at: http:// 106106106106106 In this aspect, Chinese Foreign Minister of China Wang wingsYi has and made take the off together. See See See Xi See SeeXi XiJinping’s XiJinping’sXi Jinping’s Jinping’sJinping’s Address Address wingsAddress Address Addresswings during andduring during duringandduring takehis his takehisvisit hisoffhisvisit visit visitofftotogether.visit to Mongolia to together. Mongoliato toMongolia MongoliaMongolia in in Augustin August in inAugust August August 2014, 2014, 2014, 2014, 2014,available available available availableavailable at: at: news.sohu.com/20140823/n403698395.shtml,at:http:// at:http://at: http:// http://http:// last accessed on August 31, 2014. news.sohu.com/20140823/n403698395.shtml,news.sohu.com/20140823/n403698395.shtml,news.sohu.com/20140823/n403698395.shtml,news.sohu.com/20140823/n403698395.shtml,news.sohu.com/20140823/n403698395.shtml,wingswings and and take takefollowing off off together. together. concise last last last accessed last lastaccessed accessed generalizationaccessed accessed on on Auguston onAugust on August August August 31,97 31,. 31,2014.He 31, 31,2014. 2014. points2014. 2014. out that President Xi focuses 107 on the long-term regional peace and common See Xi'sprosperity speech at based 'Five Principleson a firm of Peaceful Coexistence' anniversary, “Carry forward the 107107107107107 See See See Xi'sSee SeeXi's Xi's speechXi's Xi's speech speech speech speech at at'Five at 'Fiveat at'Five 'Five Principles'Five Principles Principles Principles Principlesstand of of Peacefulof ofPeaceful ofatPeaceful Peaceful Peacefulboth Coexistence' Coexistence'domestic Coexistence' Coexistence' Coexistence' anniversary,and anniversary, anniversary, anniversary, internationalanniversary, “Carry “Carry “Carry “Carry “Carry forwardlevel. forward forward forward Fiveforward The the the Principlesthe grandthe the Indesign ofthis Peacefulof aspect,“One CoexistenceBelt Chinese toForeign build aMinister better world of Chinathrough Wang win-win Yi has made the FiveFive PrinciplesPrinciples ofof PeacefulPeaceful CoexistenceCoexistence toto buildbuild a a betterbetter worldworld throughthrough win-wincooperation”,win-win available at: http://www.china.org.cn/world/2014-07/07/ Five FiveFivePrinciples PrinciplesPrinciples InofIn In this Peaceful thisofInofthis aspect,Peaceful thisPeaceful aspect,aspect, Coexistenceaspect,and Chinese CoexistenceCoexistence ChineseOneChinese Chinese Road” toForeign Foreignbuild Foreigntoto aims Foreignbuild builda Minister tobetter Minister aMinister a interwoven better betterMinisterworld of world ofworld ofChinathrough ChinadreamsofChina through throughChina Wang win-win WangandWang win-winwin-winWang hopesYi Yi Yihas has Yihasfrom made has mademade various madethe thethe coun the - 111 cooperation”,cooperation”,cooperation”,cooperation”,cooperation”, available available available availableavailable at: at: at: at: http://www.china.org.cn/world/2014-07/07/at: http://www.china.org.cn/world/2014-07/07/ http://www.china.org.cn/world/2014-07/07/ http://www.china.org.cn/world/2014-07/07/http://www.china.org.cn/world/2014-07/07/content_32876905.htm,following last concise accessed generalization.on August 31, 2014. He points out that President Xi focuses on followingfollowing concisetries, concise and generalization. bringgeneralization. them111 111together111 111He Hepoints to points the out consultation out that that President President of development Xi Xifocuses focuses strategy,on on content_32876905.htm,content_32876905.htm,content_32876905.htm,content_32876905.htm,content_32876905.htm,followingfollowing last last last accessed conciselast last accessed conciseaccessed accessed accessed on generalization.on Augustongeneralization. onAugust on August August August 31, 31, 31,2014. 31, 31,2014. 2014. 2014. 2014. He He points points out out that that!75 President President Xi Xi focusesthe focuses long-term on on regional peace and common prosperity based on a firm stand at !75!75 !75 !75!75 thethethe long-term long-termthe long-term long-term theregional regional regional promotion regional peace peace peace of peaceand peaceand and common andcommon commonand common safety, prosperity prosperity prosperity and prosperity the based realizationbased based basedon on ona a offirmona firm revitalization.firm botha standfirm stand standdomestic standat at at Thisat and international level. The grand design of “One Belt and One proposal since its inception in 2013 has won continuous support from neigh- bothbothboth domesticboth domestic domestic domestic and and and international andinternational international international level. level. level. level.The The The grand Thegrand grand granddesign design design design of of of“One “One “Oneof “OneBelt Belt BeltRoad” andBelt and and One andaimsOne One Reconciliation,One to interwoven Tolerance dreams and and Human hopes Security from invarious the Balkans countries, and bring Road”Road” aimsReconciliation,Reconciliation, Reconciliation,aimsReconciliation,boring Reconciliation,to interwovento interwovencountries Tolerance Tolerance Tolerance Tolerance Tolerance dreams as and dreams welland and Humanand and Humanandas Human Human fromHumanand hopes Security Security hopesSecurityinternational Security Security from in fromin the in theinvarious in theBalkans the theBalkansvarious Balkanssociety. Balkans Balkans countries, countries, For roughly –and New and bring Balkansone bring year, and European Union – Peace, Development, Integration Road” –Road” New– –New – New– Newaims BalkansNew aimsBalkans Balkans Balkans Balkansto the to andinterwoven andinterwoven and“One Europeanand and European European European EuropeanBelt dreams Unionand dreamsUnion Union Union UnionOne – Peace,–and – Peace, andRoad” – Peace,– Peace, hopesPeace, Development,hopes Development, isDevelopment, Development, Development,comingfrom from various Integrationvariousto Integration Integrationa Integration Integrationpractical countries, countries, stage themand andfrom bring togetherbring the initial to the consultation of development strategy, the promotion of them together to the consultation of development strategy, the promotion of themthemthem together togethertogether designto to tothe the theof consultation general consultationconsultation ideas of and of ofdevelopment developmentoveralldevelopment framework. strategy, strategy,strategy, Together the thethe promotion promotion promotionwithpeace the and ofcountries of ofsafety, and the realization of revitalization. This proposal since its peacepeacepeace peaceand andand safety, and safety,safety,along safety, and theandand the Beltand thethe realization andthe realizationrealization realizationthe Road, of of ofrevitalization. Chinarevitalization.ofrevitalization. revitalization. wishes This to This Thisbuild proposalThis proposalproposal three proposalinception sinceeconomic sincesince sinceits its inits corri 2013its - has won continuous support from neighboring countries as inceptioninceptioninceptioninception in in in2013 dors 20132013in 2013includinghas hashas won has wonwon China-Middlecontinuouswon continuouscontinuous continuous support supportAsia-Eastsupport support from fromfrom Asia, fromneighboring neighboring neighboringNew neighboring Asia-European countries countriescountries countries Continenas as as as - tal Bridge and China-Mongolia-Russia, to expand new sea route of Maritime Silk Road, and to strengthen the mutually beneficial cooperation108 See Presidentin the fields Xi's joint written interview with media from Latin American and Caribbean 108 108108 108See See See President President SeePresident President Xi's Xi's Xi's joint Xi'sjoint joint written jointwritten written written interview interview interview interview with with with media withmedia media mediafrom from from Latin from Latin Latin AmericanLatin American American American and and and Caribbean Caribbean andcountries,Caribbean Caribbean available at: http://www.chinadaily.com.cn/world/2014xibricssummit/ countries,countries,countries,countries, available availableavailable available at: at: at:http://www.chinadaily.com.cn/world/2014xibricssummit/ http://www.chinadaily.com.cn/world/2014xibricssummit/at:http://www.chinadaily.com.cn/world/2014xibricssummit/ http://www.chinadaily.com.cn/world/2014xibricssummit/2014-07/15/content_17788270_7.htm, last accessed on August 31, 2014. 2014-07/15/content_17788270_7.htm, last accessed on August 31, 2014. 2014-07/15/content_17788270_7.htm,2014-07/15/content_17788270_7.htm,2014-07/15/content_17788270_7.htm,94 See President Xi’s joint written last last last interviewaccessed accessed accessed with on on Auguston media August August from 31, 31, 31, 2014.Latin 2014. 2014. American and Caribbean coun- 109 http:// tries, available at: http://www.chinadaily.com.cn/world/2014xibricssummit/2014-07/15/con See Xi’s speech -at the Bo’ao Forum for Asia Annual Conference 2013, available at: 109109109 109 See Xi’s speech at the Bo’ao Forum for Asia Annual Conference 2013, available at: http:// See See See Xi’s Xi’s Xi’s speech speech speechtent_17788270_7.htm, at at theat the theBo’ao Bo’ao Bo’ao Forum Forum Forum last for accessedfor forAsia Asia Asia Annual on Annual Annual August Conference Conference 31,Conference 2014. 2013, 2013, 2013, available available available at: news.xinhuanet.com/politics/2013-04/07/c_115296408.htmat: at:http:// http:// http:// , Sep. 30, 2014. news.xinhuanet.com/politics/2013-04/07/c_115296408.htm, Sep. 30, 2014. news.xinhuanet.com/politics/2013-04/07/c_115296408.htmnews.xinhuanet.com/politics/2013-04/07/c_115296408.htmnews.xinhuanet.com/politics/2013-04/07/c_115296408.htm95 See Xi’s speech at the Bo’ao Forum for Asia, Sep.Annual, ,Sep. Sep. 30, 30, Conference 30,2014. 2014. 2014. 2013, available at: http://news. 110 For any with basic ability to recognize wrong from right, this accusation is not worthy xinhuanet.com/politics/2013-04/07/c_115296408.htm, Sep. 30, 2014. 110110110 110 For any with basic ability to recognize wrong from right, this accusation is not worthy For For For any any any with with with96 basic basic basic ability ability ability to to recognizeto recognize recognize wrong wrong wrong from from from right, right, right, this this this accusation accusation accusation is is notis not notrebutting.worthy worthy worthy There are, however, still some forceful and well-organized articles or reports rebutting. For There any with are, basic however, ability stillto recognize some forceful wrong fromand right,well-organized this accusation articles is not or worthy reports re - rebutting.rebutting.rebutting. There There Therebutting. are, are, are, however,There however, however, are, still however,still still some some some still forceful forceful someforceful forcefuland and and well-organized well-organized andwell-organized well-organized articles articles articles articles or or posted orreportsor reports reports on theposted website of Ministry of Commerce and Ministry of Foreign Affairs to rebut postedpostedposted postedon on onthe the theonwebsiteon website thewebsitethe website of of Ministryof Ministry ofMinistryof Ministry Ministry of of Commerceof ofCommerce Commerce ofCommerce Commerce and and and andMinistry Ministryand Ministry Ministry of of ofForeignof Foreign Foreign Foreignof Foreign Affairs AffairsAffairs Affairs Affairs tosuch to to rebutto rebutrebut rebuttoaccusation, rebutsuch ac- for example: To Rebut the so-called Neo-colonialism, at http:// suchsuchsuch accusation, such accusation,accusation, accusation,cusation, for for for forexample: example:forexample:example: example: To To To ToRebutRebut RebutToRebut the Rebutthe so-calledthe theso-called theso-calledso-called Neo-colonialismso-called Neo-colonialism Neo-colonialismNeo-colonialism Neo-colonialism, at http://www.mofcom.gov.cn/, ,at , www.mofcom.gov.cn/aarticle/i/dxfw/gzzd/200804/20080405456295.html atathttp:// , http://athttp:// http:// , Sep. 30, 2014, and also: www.mofcom.gov.cn/aarticle/i/dxfw/gzzd/200804/20080405456295.htmlwww.mofcom.gov.cn/aarticle/i/dxfw/gzzd/200804/20080405456295.htmlwww.mofcom.gov.cn/aarticle/i/dxfw/gzzd/200804/20080405456295.htmlwww.mofcom.gov.cn/aarticle/i/dxfw/gzzd/200804/20080405456295.htmlaarticle/i/dxfw/gzzd/200804/20080405456295.html, Sep. 30,, Sep., 2014,,Sep. 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Sep. 30,, Sep.30, 30,2014. 2014. 30,2014. 2014. 97 See Wang Yi, To Revive the Silk Road, and To Build a Harmonious Neighborhood111 See Wang, available Yi, To at: Revive the Silk Road, and To Build a Harmonious Neighborhood, available 111 111111 See111 See See Wang Wang SeeWang Yi,Wang Yi, Yi,To http://news.xinhuanet.com/2014-09/20/c_1112556220.htm,To Yi,ReviveTo Revive ReviveTo Revivethe the theSilk Silk theSilk Road, Road,Silk Road, andRoad, and and To Toand BuildTo Build BuildTo aBuild Harmoniousa a Harmonious Harmonious a Harmonious Neighborhood Sep. Neighborhood Neighborhood 30, Neighborhood 2014. , available, at:,available available http://news.xinhuanet.com/2014-09/20/c_1112556220.htm, available , Sep. 30, 2014. at:at: http://news.xinhuanet.com/2014-09/20/c_1112556220.htmat: http://news.xinhuanet.com/2014-09/20/c_1112556220.htm http://news.xinhuanet.com/2014-09/20/c_1112556220.htmat: http://news.xinhuanet.com/2014-09/20/c_1112556220.htm, Sep., ,Sep. Sep. 30,, Sep.30, 30,2014. 2014. 30,2014. 2014. !76 !76!76 !76 76!

Proceedings of the Second International Round Table ProceedingsProceedingsProceedingsProceedings of of theof the the Secondof Second theSecond Second International International International International Round Round Round Round Table Table Table Table 61 A. Chen, F. Yang: The Voice from China on Reforming Oieo and Establishing Nieo of energy, finance, civil livelihood, and the interconnection and interworking of infrastructure facilities. Specifically speaking, Middle Asia and South Asia are core regions of Asian- European continent, forming a safeguard curtain for China’s stable domestic development, and also pointing a direction of China’s strategic opening-up to the west. In September 2014, President Xi attended the Fourteenth Shanghai Cooperation Organization Summit Meeting, and paid official visits to Tajiki- stan, Maldives, Sri Lanka and India, which were along the ancient maritime silk road, and had an intense historical intercourse with China. Nowadays their interests are closely combined with China’s, and they are important piv- ots for the common construction of a 21st Silk Belt and Maritime Silk Road. Amongst these visits, one thing per se merits special attention, that President Xi pointed out during his visit to India, a BRICS Member with 1.2 billion population, that Chinese Dragon and Indian Elephant should pursue har- monious coexistence, and peaceful, cooperative and inclusive development, which is beneficial to both countries and those around, and even the world at large. Indian Prime Minister Narendra Modi suggested a nonstop promo- tion of the bilateral relationship by carrying forward the from Inch to Mile spirit. Both sides decide to construct a closer development partnership, to enrich their bilateral strategic relationship. They agree to cooperate at the bi- lateral, regional and global level, to maintain the common interests of both countries and other developing countries, and to propel international politi- cal and economic order towards a more reasonable and fair one. China and India reiterate to remain calm and peace regarding their border issues, and to seek for a friendly way out. President Xi’s visit has built on more trust be- tween these two neighboring countries, and has eliminated to some extent the existed doubts, and has actually promoted the Sino-Indian relation to a new historical phase. To sum up, the surrounding neighbors are China’s base of existence and fur- ther prosperity. The development of China cannot be separated from a sta- ble, peaceful and cooperative peripheral circumstance, and it can also bring many opportunities to surrounding countries. Currently, China’s diplomatic activities are entering a new round of active phase. For over a year, President Xi, as the successor and promoter of traditional China’s “good neighboring and mutual beneficial” ideal and principle, has spread his footprints across over 13 countries in Mid-Asia, South East Asia, North East Asia and South Asia. At each place, with his sincere emotions, plain words, firm believes, and concrete measures, President Xi has personally spread the diplomatic ideas of intimacy, sincerity, benefits and tolerance. It is fair to believe and ex- pect that, China will certainly promote regional integration. With the giant- hawk’s magic wings of “One Belt and One Road” fully spreading, China is bound to take off and fly high, and promote neighboring states to spread their wings and take off together. 62 The European Journal of Management and Public Policy • Vol.13, No.1 (2013)

Meanwhile, people can fully expect that when the giant-hawk of One Belt and One Road spreads its wings and soars across the sky98, the anti-China opportunities to surroundingring countries. of containment Currently, that China’s international diplomatic hegemony activities and its followers are busy constructing would be completely shattered. This would be another histori- are entering a new round of active phase. For over a year, President Xi, as the cal contribution to establish NIEO for a better future of global people. successor and promoter of traditional China’s “good neighboring and mutual beneficial” ideal and principle, has spread his footprints across over 13 countries in Mid-Asia, South East Asia,4. SSCNorth to East Sail Asia Out and again South at Asia.the AgeAt each of 50 place, with his sincere emotions, plainAt the words, age of firm“knowing believes, the decreesand concrete of Heaven”, measures, to retrospect the historical President Xi has personally pathspread and the various diplomatic actual performancesideas of intimacy, of South-South sincerity, Cooperation, one can benefits and tolerance. It is fairmake to the believe following and summaries:expect that, China will certainly promote regional integration.Firstly, With thethe giant-hawk’sSouth-South Cooperation magic wings has of taken “One on Belt different forms in diffe- and One Road” fully spreading,rent fieldsChina ofis international bound to take economic off and law. fly Underhigh, theand UN and GATT of inter- promote neighboring statesnational to spread trade their law, wings the global and Southtake off have together. coordinated and gathered their for- ce together, which resulted in a certain success of law-making and law-refor- Meanwhile, people can fullyming. expect In thatthe fieldwhen ofthe international giant-hawk investment of One Belt law, and although the multilateral One Road spreads its wings cooperationand soars across among the the sky, South112 theis hard anti-China to achieve ring because of of the bilateral trea- containment that internationalty concluding hegemony regime andthat theits Northfollowers seek toare impose, busy the south countries ha- constructing would be completelyve nonetheless shattered cooperated,. This would and bethe anotherbilateral/regional historical investment agreemen- contribution to establish NIEOts between/amongfor a better future the of South global are people. characteristic in a good way to facilitate the cooperation. In the field of international financial law, the South has long de- 4. SSC to Sail Out again at themanded Age ofto 50reform the original unfair rules and has been consistently denied, so with their collective strength consistently growing, instead they have now At the age of “knowing the decreesformed aof different Heaven”, kind to retrospectof South-South the historical Cooperation, path as a competition to the and various actual performancesoriginal of South-Southset of international Cooperation, financial one rules. can make the following summaries: Secondly, the history has shown that, the introduction of a potentially com- Firstly, the South-South Cooperationpetitive institution has taken can on indeeddifferent facilitate forms thein differentglobal South to achieve their fields of international economicgoals law. through Under cooperation. the UN and This GATT is the of internationalexact lesson that we learn from the law-reforming fight within the field of international trade rules. With the trade law, the global South haveestablishment coordinated of UNCTAD and gathered in 1960s, their the force developed together, countries came up with which resulted in a certain ansuccess imminent of law-making threat that theand global law-reforming. South might In just the turn to this newly for- field of international investmentmed institution law, although and forum, the andmultilateral retreated fromcooperation the GATT system collectively. among the South is hard to Thisachieve no doubtbecause had of accelerated the bilateral the treatyprocess concluding of the North’s acceptance of S&D regime that the North seekand to GSPimpose, as the the reformation south countries to the GATThave nonethelessrules. Similarly, with the establish- ment of a competitive institution, namely the BRICS Development Bank, it

112 As to the majestic momentum when the giant-hawk spreads its wings, Zhuangzi describes in his famous work that “In the 98northern As to the ocean majestic there momentum is a fish, when called the giant-hawkthe k'un, I spreadsdo not itsknow wings, Zhuangzi describes in his how many thousand li in size. Thisfamous k'un work changes that “intoIn the a bird,northern called ocean the there p'eng. is a Itsfish, back called is Ithe do k’un, I do not know how many not know how many thousand lithousand in breadth. li in size.When This it isk’un moved, changes it intoflies, a itsbird, wings called obscuring the p’eng. Its back is I do not know how the sky like clouds…in the Recordsmany of thousandMarvels liwe in readbreadth. that When when it the is moved,p'eng fliesit flies, southwards, its wings obscuring the sky like clouds… in the Records of Marvels we read that when the p’eng flies southwards, the water is smitten for the water is smitten for a space of three thousand li around, while the bird itself mounts a space of three thousand li around, while the bird itself mounts upon a great wind to a height upon a great wind to a height ofof ninety ninety thousand thousand li,li, forfor aa flightflight ofof sixsix months'months’ duration.duration.” See” See Zhuangzi, A Happy Excursion Zhuangzi, A Happy Excursion (《逍遥游》( ),), translated translated by by LIN LIN Yutang, Yutang, available available at: http://www.edepot.com/taochuang.html, at: http:// www.edepot.com/taochuang.htmlSep., Sep. 30, 2014.30, 2014.

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Proceedings of the Second International Round Table 63 A. Chen, F. Yang: The Voice from China on Reforming Oieo and Establishing Nieo can be fairly expected that not only such institution would benefit the deve- loping countries in a way that the IMF and the World Bank have never provi- ded, and also that the North would face again more severe pressure to under- take the reform of the existed financial order. Either way, it is a huge progress in the construction of a fairer financial order. To take a step further, one can even reasonably predict, when the comprehensive power of the Global South continues to grow and accumulate, their ability to participate in the institu- tional competition with the North would also enhance, making the future of South-South Cooperation even more optimistic. Thirdly, China as a developing country has never changed its attitude towards the SSC career, and its relating efforts have been rather persistent, regard- less of the actual ups and downs in the performance of this collective strate- gy, which is the natural development course of Justice historical career/phe- nomenon anyhow. With its comprehensive national strength keeping rising, China will certainly be more and more capable of playing her role as a dri- ving force and firm mainstays in the course of SSC. Such confidence and ca- pability should be dispersed among and shared by the many South brother countries, who are still fighting for a fairer and more equitable international environment for development. Fourthly, for the past half century, despite all the difficulties and hardness, the global South-South Cooperation within the international economic field has persistently and consistently been fighting to achieve its “decrees of He- aven”. If we take the initiative of establishing the Group of 77 as to organize collective struggle against the unfair post-war international economic order, for present day after five decades have elapsed, with the comprehensive stren- gth of the South group enhancing sustainably, SSC will show more and mo- re activity and capability to launch cooperation within South countries, whi- ch would then form a competitive propellant to reform and refine traditional South-North struggle and South-North cooperation. ABDLATIF AL-HAMAD Contribution to The Group 77 50th Anniversary

As the international community is commemorating the 50th anniversary of the G77, one can only commend the fortitude and dedication with which this Group has fought for the common interest of the countries of the South and brought to the fore their development perspectives and concerns. The Group is praised for harmonizing developing countries’ position on global issues and serving as a platform for actions to influence the international development agenda. At this juncture, the Group is poised to face an even more challenging peri- od ahead. The ability of accommodating the diverse needs and preferences of member countries and the leverage for influencing the international develop- ment agenda remain a daunting challenge. Today, fifty years after its launch, accomplishments of the Group are visible beyond any doubt. There were, however, many unmet goals and disappoint- ments. Globalization, while bringing many new windows of opportunity es- pecially for the developed North, has exacerbated income disparity, accentu- ated uncertainty and eroded policy space in many developing countries. Great many hurdles in terms of restrictive trade measures need to be ad- dressed in order to improve the long-term growth prospects in the South, as many rich-countries’ markets are still not freely accessible to developing countries’ exports. The new rules of the game under the World Trade Organization (WTO) are trespassing on domestic policies such as tax systems, subsidies, industrial policy, investment promotion and environmental standards. The Agreement on Intellectual Property Rights (TRIPS), in particular, represents a major constraint for poor countries to access knowledge and adapt the technologies used in advanced countries. Overall WTO’s rules produced weak results for small developing countries and were more attentive to the interest of developed nations. Other decisions that shape the future of developing nations are still taken in contexts that are not compatible with the circumstances and capabilities of these nations.

* Director General and Chairman of the Board of Directors, The Arab Fund for Economic and Social Development

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The developing countries and especially the poor nations are still vulnerable to world economic crises and international shocks, and are not well equipped to deal with their consequences. The subprime mortgage crisis, which was nurtured by financial globalization and ill-regulated finance, emerged in the banking systems of developed countries and extended beyond these coun- tries’ borders to cost poor nations dearly in terms of lower growth and more unemployment and poverty. Similarly, the repetitive surges in food prices and the protracted international food crises have sent scores of people in poor nations into deprivation and abject poverty. Still fresh in the minds is the initiative to convert corn to ethanol (Biofuel), which has engendered big hikes in the international price of corn borne mostly by developing coun- tries. The Group needs to work for better globalization and for new economic or- der that is more mindful of economic development and domestic policy ob- jectives in developing countries such as growth, employment and social eq- uity. It should also strive to reverse the recent trends where domestic policies have become subservient to global policies. The most fundamental change that is needed to ensure that the new econom- ic order works as it should for developing countries is the modus operandi of international institutions and multilateral negotiations. In this regard, the Group should contribute to the effort of improving the decision-making pro- cess and reforming the system of voting in international institutions towards greater transparency and openness to make them more responsive to con- cerns of developing countries, especially the least developed amongst them. The Group needs to move vigorously in a number of areas. First, the interna- tional trade system is still uneven and unfair, and is far from achieving de- velopment-friendly outcomes for poor nations. Correcting the actual imbal- ances between the actual trade arrangements and the domestic policy goals of developing countries is paramount. Also echoing previously formulated plights, the issue of labor migration to the developed countries still remains an uncharted territory for globaliza- tion. Temporary work visa schemes for potential migrants represent a great window of opportunity to reduce poverty and unemployment, in the devel- oping countries. The third area that needs to be addressed is economic instability. Poor na- tions tend to be hurt disproportionately by any global economic instability and international shocks. From this premise the Group should reinvigorate its efforts of preventing the imbalances from aggravating economic cycles in the developing countries. There must be better mechanisms to alleviate the impact of global economic instability and international shocks. Finally, a number of issues require more effort from the Group and need concerted action by the global community to develop common strategies. 66 The European Journal of Management and Public Policy • Vol.13, No.1 (2013)

These include global warming and other environmental concerns of rele- vance to the world at large. Water shortages, food security, air pollution, de- sertification, increasing land salinity and declining agriculture productivity are among the many concerns that developing countries cannot deal with single-handedly but need strong international resolve and the concerted ac- tion by all nations. PAOLO ACANFORA The Global South in the New International Disorder: the Idea of a Shared Society

As it is widely known, international order has been changing its structure and characteristic traits as from the end of the Second World War, making international organizations, including NATO, revamp their own structures. Present day global conflicts, especially the outbreak of the Russian-Ukrainian crisis, have led analysts to a discussion of a Second Cold War seen as a rep- etition of the East-West conflict which characterized the second half of the last century. I believe that at this stage we should be clear in terms of the vocabulary used. The expression Cold War was first coined and used by George Orwell back in 1945 after reflecting on the new global balance established after the explosion of the nuclear bombs. This expression was subsequently used by the Amer- ican journalist Walter Lippmann when referring to the American – Soviet Union antagonism. It described, though, a historical background quintessen- tially different to the present one. As a historian, on the other hand, I cannot but underscore the fact that the expression Second Cold War was used to describe the period of new tensions between Moscow and Washington in the early 1980s. So, I maintain that this paradigm should be confined definitively to the academic debate. The end of the intrinsically bipolar system which the cold war had nour- ished was heralded by some analysts across the world as the final victory of the capitalist-liberal model perfectly represented by the American way of life, its value system and general weltanschuung. American political analyst Fran- cis Fukuyama interpreted this thesis effectively describing the new historical background viewed as a paradoxical end of history.1 Still other analysts have forwarded a rather different interpretation. Marxist historian Eric Hobsbawm2 and French Pierre Lellouche3, from two radical-

* Professor, International University for Languages and Media, Milan, Italy 1 Fukuyama, F., The end of history and the last man, New York, Free press, 1992. 2 Hobsbawm, E., Age of Extremes. The Short Twentieth century, 1914–1918, London, Michael Jo- seph, 1994, 558-585. 3 Lellouche, P., Le nouveau monde: de l’ordre de Yalta au désordre des les nations, Paris, Grasset, 1992.

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ly different viewpoints, have outlined a rather bleak post-cold war scenario characterized by a chaotic and dangerous international disorder. Another American political analyst, Samuel Huntington used the expression clash of civilizations to describe instead the international reality increasing- ly characterized by conflicts and contentions among different ethnic groups and civilization in competition. This is a multifaceted world consisting of dif- ferent realities tending to agglomerate on bases of affinity and commonly shared values because belonging to the same civilization. Though considering such historical reality as complex and therefore not at- tributing it to just one cause, I believe that the best expression to describe the present day international conflict is the one Huntington came up with. If ever, I would simply like to add another element to this definition – con- flict of identity. In my opinion, it is a crucial point to defining the collocation clash of civilization. I must underline that I agree by and large with scholars who define the word identity as poisonous4 due to its inherent tendency to give birth to separate, impermeable and tightly-knit groups. There are also other questions of a more theoretical nature which cannot be ignored. In terms of practicality, we run the risk that the identity question might be used to set new barriers and walls sparking further conflicts and contrasts. Using it as a political myth – as French intellectual Georges Sorel put it – to mobilise the masses (or, if you prefer, the individuals constituting a commu- nity), identity is a weapon of extraordinary effectiveness. However, the issue at hand does not concern identity itself (along with its im- plicit limits), but the way in which it is carried out. At this stage, I would like to express some general considerations stemming from a rather interesting elaboration of this idea by the so-called Club de Madrid5, an international forum of former presidents and prime ministers from different democratic countries worldwide. The abovementioned international organisation has defined a new concept of society, namely, that of a shared society, representing numerous appealing el- ements. This model of society heaves in sight as a hope, perhaps little, for a different international community. Stefano Prato has defined it as a notion of society where all individuals and constituent groups hold status as contributing participants, free to express their differences while integrating their voices with- in the broader population.6 This is a notion which first and foremost implies a rejection of the idea of modernity as a process of standardisation of countries and populations across the world on the basis of a common-value system promoted by eco-

4 Remotti, F., L’ossessione identitaria, Roma-Bari, Laterza, 2010, p. xii. 5 See http:/www.clubmadrid.org/ 6 Prato, S., Shared Society: A new approach to planetary conviventia, Development, vol. 57, 1, 2004, 1. 69 P. Acanfora: The Global South in the New International Disorder: the Idea of a Shared Society nomic, social and cultural patterns of neoliberalism. Such definition rejects traditional approaches to the problem of migration and integration, referring to the English multiculturalism and the French model of assimilation alike. In this direction, the proposal of the Club de Madrid con be considered as a third way, a new vision, a new idea of society and modernity where all na- tions can live together, sharing a common sense of belonging and maintain- ing their own identities. This stance has been expressed through the ten com- mitments for a shared society7 which reflect the problem of social cohesion; equal opportunities for minorities and groups on the fringe of society; legali- ty and human rights protection; the importance of education and education- al system; respect and safeguarding of cultural, economic, social, religious di- versity, etc.8 This is, undoubtedly, a particularly problematic challenge set against the complex backdrop of the present era. It is a challenge concerning the interna- tional community, implying a general revamp of its structure, role and func- tions of international organisations, as well. On the other hand, this question involves the so-called South of the world, its relationship with traditionally more advanced countries and among the same nations falling in the hetero- geneous group of “Southern Countries”. If considered from this point of view, relations to far distant historical backgrounds such as that of the Cold War become apparent. Considering these problems, it appears most urgent to de- velop new strategies and a new conceptual definition. I believe it is useful now to highlight briefly the following crucial points:

7 I. Locating responsibility to ensure the promotion of social cohesion clearly within government structures. II. Create opportunities for minorities and marginalized groups and communities to be consulted about their needs and their perception of the responsiveness of state and communi- ty structures to meet those needs. III. Ensure that social cohesion is considered in devising gov- ernance structures, policy formation and policy implementation and establish procedures and mechanisms to ensure this is achieved and to reconcile divergent positions between sectional interests. IV. Ensure the legal framework protects the rights of the individual and prohibits dis- crimination based on ethnic, religious, gender or cultural difference. V. Take steps to deal with economic disadvantages faced by sections of society who are discriminated against, and ensure equal access to opportunities and resources. VI. Ensure that physical environments create op- portunities for, rather than discourage social interaction. VII. Ensure an education system that offers equal opportunity for developing the knowledge, skills, capacities and networks necessary for children to become productive, engaged members of society and that demonstrates a com- mitment to a shared society and educates children to understand and respect others. VIII. Ini- tiate a process to encourage the creation of a shared vision of society at local and national level. IX. Promote respect, understanding and appreciation of cultural, religious and ethnic diversity and support local communities in exploring their identity, sharing their experiences with other identity groups and working together with those groups on common concerns. X. Take steps to reduce tensions and hostility between communities and ensure members of all communities are protected from abuse, intimidation and violence. 8 McCartney, C., Interrogating Shared Societies Through Practice and Theory, Development, vol. 57, 1, 2014, 8-14. 70 The European Journal of Management and Public Policy • Vol.13, No.1 (2013)

1. The role of the nation state. After the Second World War two fundamental- ly divergent and opposed tendencies appeared transforming the role of na- tion state: on the one hand, there were supranational bodies with judicial, political, economic and financial capacities; on the other, there was the emergence of local actors such as small states and nations claiming and at- taining larger autonomy, thus producing fragmentation. So, these two ten- dencies reduced sovereignty and bearing capacities of nation states on lo- cal groups within the individual state borders. 2. The role of national identities in triggering numerous conflicts within tra- ditionally multiethnic communities featuring cultural and religious plural- ism. We can mention many cases but I think that the dismemberment pro- cess of ex-Yugoslavia suffices. 3. As a result, the need to develop a broader concept of belonging and a new identity building process underway has been forwarded. Of course, the hy- pothesis of “open identity” is undoubtedly a paradox but it derives from an approach which several sociologists have defined as constructivist re- ferring to national belonging – in other words, capable to dynamically fol- low the unfolding of history. So, identity is intended as something in con- stant progress, as something to be built day by day, and open to contribu- tions from other people and communities. This seems to be a crucial point for building of identity and supranational feelings as in the case of Europe. I would add that this is certainly one of the most difficult problems of the European unification process. 4. This argumentation, however, seems to have its own limitations. For in- stance, it brings along the apparently insurmountable difficulty to define a common system of shared values for all nations and cultures worldwide. The very same idea of universal values is deeply rooted in the culture of the Western countries, and because of this, it is perceived by other civilisa- tions as simply western and therefore as a pattern to be rejected. To sum up, the attempts to establish a broader base of consensus at a level of common values have been fruitful so far (not without difficulties, obvious- ly) in cases of integration on a regional basis as in case of Europe. That is, regional areas intertwined – to use Huntington’s words – because of mutual recognition of belonging to the same civilisation. But, if we want an interna- tional society, or a shared society as the Club de Madrid has put it, it will take extraordinary efforts to keep state borders constantly open, permeable and, at the same time build structures and bodies capable of restraining and keep- ing all conflicts within a well-structured system of rules. As the southern part of the world has traditionally been made up of very dif- ferent countries displaying very different cultural patterns belonging to dif- ferent identities and distant from one another – when considering the new shape of the South in a globalised world – the final question to discuss about is what contribute the South of the world itself can give to this new model of society and to what extent. IDRISS JAZAIRY In Defence of Special Procedures of the Human Rights Council: an Alternative Narrative from the South

With the end of the East-West confrontation in the late ‘eighties of last cen- tury, human rights have become essentially, though not exclusively, a subject for North-South interaction. Discussions on this theme take place in the confined atmosphere of the UN glass building of Manhattan or of the Palais des Nations in Geneva. Its actors are the international elite of diplomats, NGO representatives mainly head- quartered in the West and exhibiting every now and then the odd petitioner from the field, selected by them to make their point. Human rights are about values. Unfortunately they have to do increasingly with politics both in the UN conference rooms and in the field where oppo- sition groups invoke or manipulate them to help them access power. The SPMHs were set up at the initiative of developing countries back in the ‘sixties of last century. Their purpose was and remains to link the UN ivory towers with the reality on the ground, to protect victims of human rights vi- olation and to promote human rights worldwide. The developing countries took this initiative in the context of protecting the black majority in South Africa against the apartheid regime, the Palestinians under Israeli occupation and later to address the plight of victims of the mil- itary coup in Chile and of the “Death Brigades” in Argentina. Western coun- tries, which had been reluctant in earlier phases, then resorted to this mech- anism in order to destabilize the Communist countries. After the fall of the Berlin Wall, the focus turned increasingly on developing countries. This ex- plains why today most of the activities of SPMHs1 target countries of the South. These therefore have a special interest in enhancing the independence, impartiality and accountability of the mechanism of special procedures and in preventing their mandates from being derailed. There are currently about 60 thematic experts of which half are working in- dividually while the other half are part of 5-member working groups. In ad- dition there are 14 country experts of which 8 have been appointed with- out the consent of the concerned country. Because of their sensitivity, coun- try mandates have a one-year duration while thematic ones last three years.

* Ambassador, Permanent Representative of Algeria to UN in Geneva 1 Special Procedures mandate-holders

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Two-thirds of the country mandates target African or OIC member coun- tries. Western countries which are particularly keen on country mandate have tried, unsuccessfully so far, to extend their duration to align them with that of thematic mandates. While being “special” initially in the sense of be- ing an exception and not a precedent, the numbers of Special Procedures have been increasing ever since. It is important to keep in mind this genesis of special procedures because there is a tendency today to consider that Western countries are the creators and guardians of human rights and of their special procedures. The implicit infer- ence is that only initiatives emanating from these countries or from interna- tional NGOs headquartered in Western capitals, have the legitimacy to deter- mine how SPMHs should exercise their mandate and what amendments to the mechanism can be legitimately discussed in the Human Rights Council. These actors have an overbearing influence on world media. They have used it to discredit any initiative coming from the South aimed at improving this mechanism. They claim that any such initiative is necessarily guided by hid- den ulterior motives whose ultimate purpose is to undermine the independ- ence of the Special Procedures so as to whitewash human rights violations back home. This blanket accusation is in reality intended to silence any dissent from the politically correct Western view of the human rights machinery. It is a form of intimidation which undermines the freedom of opinion and expression of many independent intellectuals from the South. I will not be deterred and therefore propose another narrative that I would call: “In defence of special procedures: an alternative narrative from the South”. My remarks have the purpose of increasing the efficiency and effectiveness of SPMHs so as to enhance their status and credibility. They will cover five key areas: 1) the selection of mandate holders, 2) the unfinished review, rational- ization and improvement of mandates, 3) the cooperation between States and Special Procedures, 4) the issue of accountability of Special Procedures and 5) the North-South convergence on funding.

i. Selection of mandate-holders Under the former Commission on Human Rights, the procedure for appoint- ment of mandate-holders was particularly obscure. They would be selected by the Chair of the Commission after consulting the Bureau but without hav- ing to get the approval of its members . The selected names were then pre- sented as a panel to be endorsed by the Council. As the Chair rotated an- nually between different regional groups, the beneficiaries of this opaque- ness claimed that it gave each region the chance to put forward its preferred candidates. The developing countries realized however that this opaque sys- tem favoured backroom dealings in which influential representatives of rich countries had the last word. 73 I. Jazairy: In Defence of Special Procedures of the Human Rights Council: an Alternative Narrative from the South

During the discussion on the elaboration of the Institutional Building Text2 of the Human Rights Council they therefore insisted on the introduction of more transparency in the procedure. Developing countries would have preferred a straight election of mandate- holders by the Council, following the example of the Treaty Bodies which ap- point mandate-holders democratically. However that option was opposed by Western countries. The compromise reached was to let the President of the Council continue to present his list of candidates but to be chosen from the names put forward by a Consultative Group composed of diplomats from the 5 regions recognized by the Council. The Group in turn would make its se- lection based on a broad list of candidates drawn up by the Office of the High Commissioner for Human Rghts. The President would then submit his panel for endorsement by the Council. It was not clear if the Consultative Group would present one or more candi- dates for each vacancy or in the case where it did, whether the President was duty-bound to observe the priorities set by the Consultative Group in mak- ing his/her panel proposal to the Council. Incidents followed in the interpre- tation of this language. This led the developing countries to insist during the review process of 2010–2011 in the HRC3 for the President to have to justi- fy the reasons for not following the priorities of the Consultative Group if he considers it imperative not to do so. While there is broad agreement in the Council on the importance of protect- ing the independence of mandate-holders, views differ on its implications. In the North, there is support for the untrammelled exercise of their mandates by these officials whose only limits would be those dictated by their con- science. In the South where most of the action of Special Procedures takes place, it is believed that these officials should pursue their action within the bounds of their mandate, that of the mandate of the Human Rights Coun- cil and of the UN Charter. It is also emphasized that mandate-holders should observe national laws in countries during official visits. The implications of the notion of independence of Special Procedures need to be clarified though it is not obvious that all groups in the Council have the same interest in clarity in this respect. It remains that for developing coun- tries independence should not be equated with unaccountability. ii. The unfinished review, rationalization and improvement of mandates The Institutional Building Text of the Council mandates the latter “where necessary (to) improve and rationalize all mandates (…)in order to maintain a system of special procedures”.

2 UN General Assembly resolution 60/251 3 Human Rights Council 74 The European Journal of Management and Public Policy • Vol.13, No.1 (2013)

Western countries have been reluctant to proceed lest this open the Pando- ra box and give an opportunity for developing countries to call into question some thematic mandates on civil and political rights and some politically hot country mandates. There is now a haphazard superimposition of special procedures each cost- ing over half a million dollars a year and which at the present rate might ex- ceed a hundred mandates and therefore many more mandate-holders in 15 years’ time. This cannot be reconciled with the complaints reiterated by the High Commissioner that the activities of his Office are not properly funded. Nor can it be in coherence with the Institutional Building Text which calls on the Council to “maintain a system” and not an open-ended accumulation of special procedures. Duplications and overlaps are perforce abundant in the current heap of Spe- cial Procedures. Thus CEDAW has defined violence against women as a form of discrimination. Yet there are two different mandates dealing with vio- lence against women on the one hand and discrimination against women on the other hand! Likewise there are two special mandates dealing respective- ly with trafficking of women and children and with contemporary forms of slavery including the sale of children etc…Other examples abound. It is high time the HRC set up a working group to: –– draw up a list of criteria to scan initiatives for the creation of new special procedures –– review the detailed mandates of each special procedure to eliminate dupli- cation or consolidate them with others as appropriate –– to establish rules to determine whether mandates should be addressed by a working group or by a mandate-holder –– to determine how best to deal with protection gaps –– to make the distinction between titles of mandate-holders meaningful, specially for thematic mandates.

iii. Cooperation between States and Special Procedures There is a continuing problem with the unsatisfactory rate of response of of developing States to requests of Special Procedures for visits and to letters of allegations of human rights violations on which mandate-holders ask gov- ernments for explanations. Western countries suggest that pressure should be exercised on States to get them to be more responsive. It was even suggested that delinquent states should be barred from applying for HRC membership. Relations between Special Procedures and such States then become tense. Contrary to mandate-holders of Treaty Bodies, the HRC Special Procedures are entitled to call States to account on issues involving standards of legal in- struments to which they have not adhered. States can also be requested to 75 I. Jazairy: In Defence of Special Procedures of the Human Rights Council: an Alternative Narrative from the South take a position on allegations which are sub judiciae or to commit to legisla- tion which is not within the competence of the Executive. Finally the west- phalian concept of sovereignty is particularly strong in developing countries whose independence may not have been acquired painlessly. They may resent what some construe as interference in their internal affairs. The task of a mandate-holder is therefore a delicate exercise and it is im- portant that channels of communication be not interrupted with develop- ing States except for the most extreme cases. The latter should not determine the standards to be applied by SPMHs to the majority of delinquent States. The 2011 GA resolution on the 2010-2011 Review of the work and function- ing of the HRC emphasized that ”The special procedures mandate-holders SHALL continue to foster a constructive dialogue with States”. This means doing more than just sending registered letters, reminders or requests for additional information as the Manual of Operations of Special Procedures Mandate-Holders, the manual of self-regulation of the Coordinating Com- mittee of Special Procedures, defines this “constructive dialogue”. The HRC should commission an independent enquiry on the reasons for delinquency given by states and ask the CCSP to comment thereon. The Council could then try to offer viable solutions, including through identify- ing sources for financing capacity- building for resource deficient developing countries in need. i v. Accountability of Special Procedures Northern sources have challenged the claim of developing countries that Special Procedures are accountable to the Human Rights Council for the dis- charge of their mandate, as an attack on their independence. Yet in contemporary society there is no such thing as responsibility without accountability. This is why the African Group in the HRC insisted on includ- ing a Code of Conduct for Special Procedures Mandate-Holders in the IB text in 2006 and on voting for the adoption of the Code in which it was unam- biguously asserted that ”In the fulfilment of their mandates, mandate-hold- ers are accountable to the HRC”. Contrary to the assertions of major western NGOs, far from being “hobbled” by the adoption of this code, the mandate- holders were thereby given increased recognition by States and their credi- bility was enhanced. In the review process of the IB text in 2011, not a single criticism was made of the way the code had been used contrary to western forebodings to the effect that there would be widespread misuse of the Code. In the same spirit, the developing countries presented during the review pro- cess in 2011 a proposal for independent legal expertise. This body would pro- vide its legal opinion on an advisory basis. This opinion would be offered on disagreements on procedure between Special Procedures and States. The le- gal opinion would be given to the parties to the dispute, and if need be, to 76 The European Journal of Management and Public Policy • Vol.13, No.1 (2013)

the Council. The developed countries refused to even discuss this proposal. Thus an opportunity was lost to rid the Council of discussions on procedur- al issues at the expense of action on issues of protection of victims of human rights violations. Because of this situation, Issues that arise in real life on procedure and that could set important precedents for the future remain without solution. Here are a few examples: –– Can special procedures decide, off their own accord, to substitute at a giv- en session a study on a subject they deem important instead of a report that the HRC mandated them to present at the same session? –– Can a special procedure oppose publicly, without having been asked for his opinion, a draft resolution initiated by member-States in the Council? –– The Code indicates that “the Council should be the first recipient of con- clusions and recommendations addressed to this body” by special proce- dures. Does this also cover fact-finding missions appointed by the Council and which tend to report on hot subjects first to the UNGA in New York? –– Should not special procedures report directly to the Council on conclu- sions and recommendations of studies they carry out at their own initia- tive or at the request of other UN bodies and that they have submitted to the latter? It is hoped that there will be a resumption of discussions on the proposal for setting up an independent advisory body of jurists some time in the future. Pending that, it might be helpful for representatives of the 5 regions that are members of the Council to meet informally, at regular intervals, with the Co- ordinating Committee of Special Procedures to exchange views on such pro- cedural issues. They could for instance review the possibility of making the Manual of Operations of Special Procedures more fully reflective of the letter and spirit of the Code of Conduct with respect to relations between Special Procedures and States. They could also find out whether some understanding could be reached on procedural issues of general interest such as those allud- ed to above. It is essentially a matter of good will. This would be a concrete expression of the “constructive dialogue” that the 2011 UN, a taskGA resolu- tion on the Review of the work and functions of the HRC called on the Spe- cial Procedures to “foster…with States”.

v. The North-South convergence on funding Countries from the North and from the South all agree on the necessity to give SPMHs adequate resources to pursue their noble task, a task which is es- sential for establishing a link between world fora where human rights are dis- cussed and the field where things really happen. Both partners advocate an increase in the resources to be made available to them. 77 I. Jazairy: In Defence of Special Procedures of the Human Rights Council: an Alternative Narrative from the South

The North advocates specially an increase in resources, whether from the regular budget or from voluntary contributions, to be allocated to Special Rapporteurs in charge of country mandates . The South would prefer a gradual substitution of voluntary contributions by budgetary resources and more focus on the importance of providing resourc- es for a fund that could finance capacity-building in the context of country mandates as well as for thematic mandates. In the Manual of Operations of Special Procedures of the Council, para.11, the mandate-holders authorize themselves to raise resources, financial or otherwise, from unidentified outside sources without having to report there- on to the Council. This is a real threat to their independence contrary to what the Manual says. Mandate-holders should immediately be instructed by the Council to report to it every year on the resources received in cash or in kind from outside sources to be identified, pending the suppression of this para. from the Manual. The OHCHR should thereafter take over fully this fund-raising mission and report on it to the Council. Finally, because of resource shortages, some Special Procedures have been fanned out to divisions of the Office other than the Special Procedures Branch. The availability of resources in those divisions might not adjust with the priorities of the task of mandate-holders. It is therefore suggested that all special procedures be regrouped in the Spe- cial Procedures Branch pending the establishment of a separate unit for spe- cial procedures with their own separate resources under the administrative control of the OHCHR. ISMAIL SERAGELDIN The Global South: the next Half Centur

The Past: In the Shadow of the West The Bretton Woods Conference that established the post-World-War II eco- nomic order is 70 years old this year. The Global South is just reaching its half-century mark. The reason for the rise of the latter is the failure of the former. The global economic system for the post-world-war-II world was designed by the big powers at a conference held in 1944 in the New Hampshire resort of Bretton Woods. That conference, held one year before the 1945 San Fran- cisco conference that created the UN, was devoted to the post-war economic regime that would govern international economic, financial and trade rela- tions. The result was the creation of the International Monetary Fund (IMF), the World Bank and the International Trade Organization (ITO). That sys- tem was designed by the victorious allies of the global conflict, the domi- nant colonial powers of that era. It served their interests and was governed by them. The Soviet Union opting for the confrontational posture of the Cold War refused to join the system, until the Union’s demise in 1991. The ITO was not approved by the US senate and so it was first born as a pro- visional treaty named the General Agreement on Tariffs and Trade (GATT) to be finally renamed the WTO only in January 1995, but still doing very much the same function as globalization came to dominate the economic agenda of the end of the 20th century. Although most people in the world, and specifically the people of the Global South, recognize that the UN with its slanted membership powers in the Se- curity Council needs to be reformed, it was primarily in the Bretton Woods System that the feeling of marginalization by the non-western powers was most acute. The Global South, a term that emerged in the sixties was the inheritor of the “Third World” and was globally manifested politically in two groupings both of which were formed some fifty years ago: The Group of 77 which celebrates its 50 years in 2014, and the Non-Aligned Movement which celebrated its 50 years in 2011. In 1974, the countries of the Global South tried to push through the Gen- eral Assembly of the United Nations a “New International Economic Order”

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(NIEO), which was composed of a set of proposals to promote their inter- ests by improving their terms of trade, increasing development assistance, developed-country tariff reductions, and other means. It was meant to be a revision of the international economic system in favor of the poor countries. “The Declaration for the Establishment of a New International Economic Or- der”, was adopted by the United Nations General Assembly in 1974, and re- ferred to a wide range of trade, financial, commodity, and debt-related issues (1 May 1974, A/RES/S-6/3201). Along with the declaration, a “Programme of Action” and a “Charter of Economic Rights and Duties of States” were also adopted (12 December 1974, A/RES/29/3281). This was the most complete effort of the countries of the Global South to overhaul the Bretton Woods System. It failed to have any impact. Beyond the flaws in the document (such as advocacy of central planning, then much in vogue), Western opposition completely killed it. The US and its allies were too powerful. On the whole then, while decolonization was successfully completed in the post war period and through the sixties, and despite the many demands of the developing countries, the post war world economic order remained large- ly unchanged. Looking at the second half of the 20th century, one sees that the political mo- mentum of the victorious allies as the founding democracies in the world, fighting authoritarianism, plus their enormous wealth and the success of the welfare state in raising the standard of living of their citizens all made the post- war order seem acceptable to many, if not most, of the world. The G-7 group of western powers, victorious in the cold-war with the collapse of the Soviet Un- ion in 1991, and then the expansion of democracy and the entry of the former socialist states of Eastern Europe into the European Union and NATO seemed to seal the success of the west and ensure that the coming 21st century would see more of the same. But things have not worked out that way.

Breaking the Chains: From NICs to BRICS The Global South, representing almost 80% of humanity would rise again in the beginning of the 21st century. First we witnessed the emergence of the Newly Industrialized Countries (the NICs) in the 1980s, as Korea, Taiwan, Hong Kong and Singapore were aptly recognized as the Asian Tigers. Korea, one of the poorest countries in the 1950s was now exporting automobiles and electronics to the USA. Soon Samsung would overtake Sony of Japan and Korea would rank third after the USA and Japan in the number of patents, ahead of the UK, France and even Germany. Mexico, Korea and Chile as well as the Eastern Europeans joined the Organization for Economic Cooperation and Development (OECD), the club of the rich countries established in 1960. By the beginning of the 21st century these success stories were overtaken by the biggest success story of all: China’s unstoppable rise to dominate much of manufacturing and to become the second largest economy in the world. 80 The European Journal of Management and Public Policy • Vol.13, No.1 (2013)

China became the holder of the world’s largest reserves, and Asia general- ly withstood the debt and credit crisis of 2007-2008 which struck western banks. The enormous meltdown resulted in a major burden on the western powers. Their economies reeling, their citizens rebellious and dissatisfied, the western powers seemed off-balance and unable to cope, much less to lead. Politically and militarily the US seemed to have alienated everybody with its wars in Iraq and Afghanistan. Against that background, the surging China seemed to offer another model that suddenly appeared to many to be a pos- sible alternative to the liberal economics and democratic politics of the West. Already from the beginning of the century, the G-7 enlarged its consultations creating the G-20. But countering the G-7 there emerged the BRICS: Brazil, Russia, India, China and South Africa, all being distinguished by their large, fastgrowing economies and significant influence on regional and global af- fairs, and they are all G-20 members. These countries have started to build their own institutions in parallel to the Bretton Woods institutions. Noting that the international institutions (the World Bank and the IMF) did not provide enough voting power to the developing countries and over rep- resented the West, the leaders of the five BRICS countries met in Brazil in July 2014 and created a new $100bn development bank and emergency re- serve fund. The leaders announced that the bank will start with $50 Billion Capitaliza- tion and have its headquarters in Shanghai. The first president for the bank will come from India. The emergency reserve fund - which was referred to as a “Contingency Re- serve Arrangement” - will also have $100bn, and will help developing nations avoid “short-term liquidity pressures”, a clear indication of a parallel role to the IMF. However, it was announced that it would “complement” existing in- ternational arrangements”. So as the Global South reaches the half century mark, we can see that some of the mass of the poor countries of the world have clearly pulled ahead, defining themselves on the global stage, and challenging the Western powers’ long-stand- ing hegemony. So what is left of the original solidarity that pulled together 80% of the world’s population in a group to challenge the economic world order and the institutions that perpetuated the special status of the western countries?

The Challenges of the New Century The configuration of success stories and emerging muscle shows that there shall be no repeat to the G-7 defeat of the New International Economic Or- der proposal of the last century. It also shows that business as usual for the western powers is over. The palliative of the G-20, while definitely a step in the right direction, is going to be insufficient to respond to the rising aspira- tions of the poor developing countries. 81 I. Serageldin: The Global South: the next Half Centur

Twenty five years ago, the South Commission, headed by Julius Nyerere, sub- mitted its report. In that report the Commission considered that the funda- mental international cleavage was primarily between the rich and the poor, and defined the basis for grouping the countries of the Global South together as the result of their resolve to pursue united action in the struggle for a fair- er international economic system. Today the economic system is changing. And the BRICS can see value in special partnerships with the poorer devel- oping countries of the world, especially in closer ties with Sub-Saharan Afri- ca where an enormous potential remains unexploited. But does that lay the foundation for the next half century of solidarity? I think not. That is enough for formulating a series of trade deals and possi- bly for a number of joint ventures, but unless there is a conscious policy that regroups the Global South around a system whereby the poorest and least developed countries will be assisted by the more advanced countries of the Global South, to attain a sustainable development path, that solidarity will remain mostly confined to political rhetoric. In other words, the solidarity that characterized the countries of the Global South in the last half century was based on being against the postwar order crafted by the western powers. In the next half century it will have to be based on being for something more than what has been achieved. It is infinitely hard- er to forge a coalition around a positive goal than around a negative goal. Thus in many colonies, a national consensus could be easily forged against the colo- nizer for the limited goal of independence. The colonized, from extreme leftists to right wing nationalists, despite the various ethnic and religious identities of the nationals, could all agree on the goal of independence. However, when the independent state had to face the choice of what sort of an independent coun- try they wanted to build, these differences emerged. So the Global South countries have to forge alliances based on their remain- ing commonalities of interests and their likely new avenues for cooperation. In the tasks of nation building, south-south collaboration will now loom large. This will be essential if we are to transcend the narrow confines of in- dividual nations and pursue a purpose that will seem worthwhile to many. Europe showed the way, when visionary Europeans such as Jean Monnet and Robert Schuman, crafted the European Union, a community of nations, among erstwhile foes and longtime adversaries. The Global South must have such a supra-national perspective, a new “raison d’être” for the countries con- cerned as they enter their second half century.

More Than an Echo of the G-20 The Global South must offer more than pure economic issues. The G-20, where the leaders of the Global South already sit, is the pre-eminent eco- nomic forum of the planet. The leaders of these countries have been meet- 82 The European Journal of Management and Public Policy • Vol.13, No.1 (2013)

ing regularly since 2008. The G-20 economies represent around 85% of the Gross World Product (GWP); 80% of world trade. In terms of population, because of the membership of the global south countries, the G-20 accounts for about two-thirds of the world population. So what is the need for an or- ganization of the Global South unless it offers something more than the same G-20 menu? The countries of the Global South must be willing to become the champi- ons of a profound revision of the legacy of the 20th century economic para- digm, not just the institutions that governed it on the global scale. They must actively promote the development and adoption of an alternative economic paradigm. The capitalist system, the most creative and productive system devised by humanity, is still in need of a profound humanist critique. There are many people, this author included, who believe that the presence of hunger amidst plenty, and other social problems are NOT a necessary price to pay for the robustness of the economy. Many of us believe that the ruthless allocative ef- ficiency of the market must be tempered by a caring and nurturing society. Today, many distinguished economists have argued against the current par- adigm that deifies GDP growth and pays only lip service to everything else from equity to welfare, from quality of life to environment. Many are still re- peating the mantras of the extremists of the Reagan-Thatcher ideology that argued that the private sector would do everything and governs best that governs least. We must recognize that the private sector will not take care of public goods, and that the public must remain engaged to deal with market failures and public goods. We must change the calculus of our economics and finance, to internalize the full social and environmental cost of our decisions. Some headway is being made on this at the local level, but we have certainly not even begun to in- troduce the global costs of local actions at the level of national policy. Carbon emissions continue unabated and are factored as zero costs in investment de- cisions. We must rectify our national accounts that count a forest standing as zero and give it a positive value only if it is chopped down. We should measure the growth in our capital stock not just the growth in the volume of our activities. We should be concerned with nurturing natural capital and building human and social capital as much as we are about eco- nomic growth. All of that is possible. It will not diminish the vibrancy of the entrepreneuri- al spirit, but it will help make new investments environmentally friendly and socially responsible. 83 I. Serageldin: The Global South: the next Half Centur

But still the raison d’être of the Global South in the next half century must be founded on broader values and be woven in a larger vision than reform- ing the economic paradigm.

A Vision for the Global South The Global South must harness the emerging universal values of our com- mon humanity, and create a coalition of the caring. It must mean something to be a member of the Global South, something more than that you are poor and are against an international economic order that serves the interests of the rich. I believe that the Global South must stand for certain values that should be central to all its members of which the following basic thrusts ap- pear paramount.

First: Ensure real participation in global decision making Problems today confront government beyond their borders. All governments need to collaborate in an effective international machinery of decision-mak- ing to take action against environmental problems, the chaotic structure of our markets and the multiple levels and overlapping jurisdictions that gov- ern human action in the world of the 21st century. The leaders of the Glob- al South should help set that agenda inclusively, to avoid others suffering the same marginalization that they suffered from in the last century. They would be the forum that brings in rich and poor countries, large and small econo- mies, to fight poverty and promote sustainable development. Those with du- al membership in the Global South and the G-20 can be the voice of those who are absent at the G-20 which still seems wedded to the economic ortho- doxy of the past.

Second: Credible macro-management of the economy The preeminent role of government in setting and maintaining the proper macro-economic fundamentals is essential for any effective growth, as well for a well-functioning competitive economy. The costs of severe austerity measures in a period of limited or zero growth is felt primarily by the poor and destitute. Sound government policies are essential to ensure social equi- ty and welfare, limit market distortions and prevent monopolies. This broad view of the role of government in society encompasses economics but also transcends it.

Third: Advancement of sustainable development Environment is not just an issue for the rich. It is about every child in eve- ry country having a right to clean air, clean water and fertile soils. It is about ensuring that all children should be secure from natural calamities and have 84 The European Journal of Management and Public Policy • Vol.13, No.1 (2013)

food security throughout their lives. It is about educating girls and empow- ering women, and ensuring equity in the treatment of all citizens. It is about being conscious of our responsibility to our children and grandchildren. The global South, having the vast majority of the population of the planet has a direct interest in promoting mitigation and adaptive measures that will en- sure sustainable development and a secure future for their citizens. The Glob- al South should take the lead in ensuring that such measures are not flouted by the western powers who have been the prime culprits in the past for the imbalances being introduced in our climate and our global ecological sys- tems.

Fourth: Advancement of good governance The Global South needs to endorse systematic approaches to the promotion of good governance, under their own guidance, not under western tutelage. Here we are not talking of parliamentary or presidential systems or wheth- er parliament should be bicameral or a single chamber, we are addressing the promotion of principles like transparency, accountability, free expression, free flow of information, participation and the rule of law. In fact, I would ar- gue that western style electoral politics will not be the best answer for many countries where ethnic identities are strong and religious tensions are rife. Possibilities of experimenting with hybrid systems that involve forms of se- lection other than conventional elections such as sortition and representative sampling should be tried.

Fifth: Facilitate the flow of knowledge and information The future will require more access to open communications and informa- tion at a speed that will defy our current thinking and that will exceed most of what we can imagine today. It is not just about availability of information it is also about access to that information. It is also about new forms of free speech and Intellectual Property Rights (IPR) in the merging digital age.

Sixth: The Promotion of Science and the values of Science The systematic collaboration of the countries of the Global South for the promotion of capacity building for science, technology and innovation (STI) would be mutually reinforcing to the free flow of information. Science for so- ciety is not just to produce consumable technology; it is also about commit- ment to evidentiary-based regulation, and arbitration of disputes by scientif- ic methods whenever possible.

Seventh: Promoting investment in human and social capital Education and health and nutrition of persons are a primary competitive as- set as well as being the best investment that societies can make; for it is essen- 85 I. Serageldin: The Global South: the next Half Centur tial for both equity and economy. But equally important is to strive to build up the shared values, the legitimacy of the institutions of mediation in a soci- ety, for that is the essential glue that holds societies together and allows them to function. That is their social capital.

Eighth: Nurture flexible institutions The one common denominator of the global knowledge driven economy of the new millennium is the pace of change itself. The successful, competitive economies of the future, those that will be creating the jobs and the prosperi- ty for their people will be those that ensure the flexibility of their institutions.

Envoi: Towards a New Global Paradigm We need a new global paradigm, and the leaders of the Global South should make it their goal to construct it. They should not look only to their current national economic interests, but also to the interests of all humanity. That is how they will really construct a system that is fundamentally different from the one that prevailed in the last century and that they assembled to fight for its transformation. The eight points described in the preceding section can and should be refor- mulated as a set of principles for the Global South in its next half century. I think that such a declaration of principles and objectives has the capacity to harness the potential of the rapidly evolving and diversifying South-South cooperation. It has the capacity to inspire national and international visions and give meaning to actions by the countries of the Global south from the largest to the smallest. It has the ability to forge effective bonds between these disparate countries that are very different from what has prevailed in tradi- tional North-South economic dealings. I believe that these are some of the elements that can rally the developing countries that belong to the Global South into a meaningful unity of action despite their great diversity. That action needs such a platform of basic prin- ciples and objectives, which perhaps could even be formulated as a “Charter of the Global South” that can have a lasting value and contribute to the strug- gle to build a better world for the entire human family, as we promote a cul- ture of peace, justice and sustainable development for all. BRANISLAV GOŠOVIĆ South-South Cooperation: An Opportunity for the South to Change the World Economic and Political Order

The setting For five decades, South-South cooperation (SSC) has been an orphan of the international development agenda, in the shadow of North-South coopera- tion. This has not been due to a lack of knowing what needs to be done, wanting and trying. Indeed, in terms of conceptualization, declarations, blueprints, plans of action, initiatives and political enthusiasm for South-South coop- eration, the record has been more than satisfactory. Many of these, howev- er, have remained in the domain of declaration because they could not be or failed to be translated into action and tangible advances. The reasons for this have been many and complex. In the paragraphs that follow, an attempt is made to highlight the major reasons, as an important background that needs to be taken into account in the consideration of how South-South coopera- tion is to be transformed into a major factor and driving force of the evolv- ing world order.

Important junctures In addition to in essence being an important dimension of the developing countries’ quest to develop and diversify their economies, South-South co- operation is a political project of emancipation, liberation, political and eco- nomic independence, of transcending the unidirectional links with the North and vestiges of the colonial era, and one of gaining influence and voice in world affairs by pooling forces and acting collectively. It was the UN Economic Commission for Latin America (ECLA), led by Raùl Prebisch, which laid the first foundation stone of South-South cooper- ation through its work and promotion of regional economic integration, in- spired by the early integration efforts in the European Coal and Steel Com- munity (ECSC). This initial conceptualization based on Latin American ex- perience was transposed to the global level at the 1964 UN Conference on Trade and Development (UNCTAD) whose Final Act highlighted regional cooperation and integration goals. Indeed, the Secretariat of the newly estab-

* ECPD Expert, Geneva, Switzerland

The European Journal of Management and Public Policy Vol. 13, No.1 (2013) • issn 1726-6475 87 B. Gošović: South-South Cooperation: An Opportunity for the South to Change the World Economic and Political Order lished UNCTAD, headed by Prebisch, had a very active Unit on regional in- tegration, which helped give rise to several sub-regional undertakings in dif- ferent parts of the South. In practice, however, many of these undertakings encountered difficulties and obstacles. The East African Community, for example, had to be dissolved because of tensions that arose among its members due to problems of rec- onciling their national interests, policy outlooks and orientations vis-à-vis the competing global powers, and also given the nature of their own nation- al economies. Nonetheless, SSC had political winds blowing in its sails, espe- cially during the decade of the New International Economic Order (NIEO), when a number of initiatives were launched, including the OPEC oil-prices decisions, and two important conferences were held, the UN Conference on Technical Cooperation among Developing Countries (TCDC), held in Bue- nos Aires in 1978, and the G77 High Level Conference on Economic Co- operation among Developing Countries (ECDC), held with the support of UNCTAD in Caracas in 1981, which adopted a wide ranging Programme of Action. The last political and substantive “hurrah” of this period, so to say, was the chapter on South-South cooperation in the South Commission Report “The Challenge to the South”, launched in 1990. This Chapter remains an author- itative and comprehensive analysis and detailed plan of action for South- South cooperation. Regrettably, in addition to the objective difficulties that many plans, pro- grammes and actions came upon against in practice, for example in the case of the General System of Trade Preferences (GSTP), South-South coopera- tion was also negatively affected by the changing fortunes of the United Na- tions, UNCTAD in particular. It was also affected by the unilateral discontinuance of the international de- velopment dialogue by the North following the shift in its attitude and strat- egy, formally announced at the 1981 Cancun North-South Summit. This change was a consequence of the conservative forces prevailing in the two key powers, bent on neutralizing the challenge from the South and deter- mined to control and shape the international development agenda on their own terms. The weakening of the developmental role of the state, the mar- ginalization of the public sector and enterprises, the discrediting of econom- ic planning and the ascendance of pragmatism and opportunism in policies and actions of individual developing countries did away with some of the im- portant elements needed to launch and sustain South-South cooperation ef- forts. Part and parcel of the North’s new, across-the-board, “Cold War” approach vis-à-vis the developing countries and their objectives covered also South- South cooperation. Symbolically, the rather small and underpowered UNC- TAD Unit on ECDC, established in 1985 to energize the follow-up of the 88 The European Journal of Management and Public Policy • Vol.13, No.1 (2013)

1981 Caracas High Level Conference on ECDC, was abolished as part of the “restructuring” approved at UNCTAD VIII, in Cartagena in 1992. An anec- dotal example of the anti-SSC drive during this period of the high tide of the neo-liberal globalization involved a country of Central America. It was re- quested by the Bretton Woods institutions, as a conditionality of a debt re- structuring package it was negotiating, to work on weakening the Central American Common Market (CACM), an early South-South integration ef- fort launched in 1960. In general, the North’s multilateral interlocutor of the Group of 77, Group B, while paying lip service in public to South-South cooperation and integra- tion efforts, did not show the willingness to help, let alone promote such ac- tivities and was openly hostile towards and worked to undermine the devel- oping countries’ group action at the global level. The World Bank and regional development banks did not show readiness to support projects of South-South cooperation that involved two or more developing countries. South-South cooperation, as a term and concept, was considered politically provocative and frowned upon by the developed coun- tries in the United Nations. This attitude, which was always present below the surface and well-camouflaged, came into the open during the neo-liber- al globalization era. Joint actions by the developing countries were character- ized as their “ganging up on us”, seen as a systemic threat, and considered as something that had to be resisted, undermined and fought against. The re- peated G77 demands for a UN conference on South-South cooperation were blocked by the North year after year on the spurious grounds that too many UN conferences were being held. Significantly, following the Uruguay Round and the weakening of GATT Part IV, the World Trade Organization (WTO) emerged as an additional obstacle to the integration efforts in the South, in- ter alia, on account of their potential “trade diversion” effects. However, this unfavourable setting has started to change in the more recent period and South-South cooperation is gradually emerging from the shad- ows of being a long-neglected sibling in international development coopera- tion. An important trigger and catalyst was China’s rise and its growing pres- ence and engagement in the continents of the South, in particular Africa. Alarm bells started to ring in the key North capitals: something was happen- ing that was outside their control and contrary to their wishes. China was “intruding” in their traditional domain, a trend that had to be resisted, coun- tered, and discredited, including via the media and academic writings. As a sidelight, in this context, it may be worth recalling that in the late 1960s, Tanzania proposed to construct a railroad linking it and land-locked Zam- bia, which would have provided unimpeded access to the sea to the latter and its copper ore exports. Tanzania approached the West for development assistance. It was flatly turned down, upon which it went to China, which agreed to help, gave a long-term interest-free loan and built the TanZam or 89 B. Gošović: South-South Cooperation: An Opportunity for the South to Change the World Economic and Political Order

Tazara (Tanzania Zambia Railway Authority) railroad as a turnkey project, completed in 1975. The West replicated by building a highway linking Tanza- nia and Zambia. This was an important, early lesson of hegemonic, neo-co- lonial power politics by the North and of the potential of South-South coop- eration to loosen and transcend the stranglehold of the colonial-era economy and political geography. This episode was largely forgotten or overlooked. Many continued to believe in the developed countries’ largesse and good intentions, and to follow and rely solely on the traditional path of North-South development cooperation. The growing presence of China in Africa, now more business-like than in the 1960s and 1970s and based on the mutual-benefit principle embodied in the Forum on China-Africa Cooperation (FOCAC), has inspired a more forth- coming continental and global response to South-South cooperation by the North, similar in motivation to the one the North displayed in the instance of Tazara. In addition to China’s mounting presence in Africa, another important wor- risome policy signal for the North has come from Latin America with the rise of progressive governments, brought to power by a wave of popular dis- content triggered by the impacts of the neo-liberal globalization and decades of the neo-colonial hegemonic domination of the continent and its individu- al countries by the mighty neighbour in the north. Venezuela and its late President Hugo Chávez have played a leading and cat- alytic role, in tandem with Cuba, in proposing, financing and implement- ing South-South initiatives, some taken from the South Commission Report, which Chávez had read and studied. Unlike the various undertakings in Af- rica that were mostly bilateral and business oriented, the regional efforts in Latin America also had a pronounced political and emancipation edge, and structural implications. Such efforts included the Bolivarian Alliance for the Americas (ALBA), the hemispheric Community of Latin American and Car- ibbean States (CELAC), and, indeed, the G77+China Summit, held to mark the 50th anniversary of the Group of 77 and hosted by Bolivia, and the Sum- mit’s final declaration.

South-South cooperation taking off at last It can be argued that one of the factors or processes that have contributed to vitalizing South-South cooperation has been “globalization”, by helping to gradually overcome some traditional barriers and creating opportunities by opening up the developing countries’ economies to exchange and interaction, including “horizontally” within the South. Globalization has also contribut- ed to the economic growth of China, as well as Brazil and India, which have become more interested in SSC and acquired capacities for greater and sus- tained economic cooperation with other developing countries. 90 The European Journal of Management and Public Policy • Vol.13, No.1 (2013)

The ascendance of South-South cooperation – especially of China’s multiply- ing ties with developing countries, including as an importer of their prod- ucts, exporter of goods, investor in infrastructure projects, lender of financial resources, and purveyor of technology, generally on favourable terms and free of the traditional Northern intrusiveness, paternalism and conditionali- ties of all kinds – is in fact beginning, although still on a limited scale, to re- spond to some of the expectations and hopes the developing countries have had from North-South development cooperation. South-South cooperation is contributing to African countries beginning to loosen their traditional dependence on the former metropoles and, in gen- eral, the countries of the North, to diversify their national economic devel- opment, and build national and regional infrastructures, including transcon- tinental road and railway networks. It has also helped to outflank the de- veloped countries’ negative posture towards the international development agenda and made them more tolerant and even supportive of South-South links, driven by the very necessity of remaining in the game, including through “triangular” cooperation. Indicative of the change and the SSC gaining “legitimacy” and becoming “the flavour of the month” have been the establishment of the Unit for Eco- nomic Integration and Cooperation among Developing Countries (EICDC) in UNCTAD; the renaming and upgrading of the UNDP’s TCDC Unit in- to the UN Special Unit for South-South Cooperation and higher funding at its disposal; the UN General Assembly decision to hold the UN High Level Conference on South-South Cooperation, and, indeed, the willingness of the World Bank to contribute to some of the UNDP South-South events. Thus, given the changing outlook for South-South cooperation, the question that presents itself is: What can be done to overcome the encountered obsta- cles and biases, to make SSC – which is emerging as an important dimension of world economy – more dynamic and beneficial to all concerned, and, in particular, to contribute to the developing countries’ long standing goal of at- taining fuller economic and political independence, securing a presence and influential role in the global policy space and decision-making, and changing the entrenched world order?

How to further energize the promise of South-South cooperation? Past experiences provide useful lessons about what can be done to further energize and channel the ongoing process. In addition to the fundamental and objective condition, that of greater economic strength and diversification of the economies of individual developing countries and their groupings, a few other familiar factors – the “nuts and bolts” of South-South cooperation – that can work in synergy are highlighted below. 91 B. Gošović: South-South Cooperation: An Opportunity for the South to Change the World Economic and Political Order

The importance of the South’s own conceptual framework cum platform for South-South cooperation. It is necessary to brush up and refresh the policy, conceptual framework, basic principles and rationale of South-South coop- eration in the light of the contemporary conditions and the evolving context. No such up-to-date framework exists. The last effort made to that end, since the 1981 G77 Caracas Conference on ECDC, is to be found in the above mentioned chapter “The South on the Threshold of the Twenty-First Cen- tury” of the South Commission Report, which is now quarter of a centu- ry old. The was not properly examined and responded to by either G77 or the Non-Aligned Movement (NAM), nor have they adopted a platform on South-South cooperation so far. When undertaken, this task will require thorough work and preparations, be- fore a framework is finally adopted and “consecrated”. Indeed, such a frame- work should become a long-term platform for the South’s collective rise on the world scene, its development, the mustering of its resources and strengths through collective self-reliance, and for changing the current North-domi- nated world order and evolving an alternative one. In this, important lessons and guidance can be gleaned from the experiences in South-South coopera- tion over the last five decades, from integration and cooperation schemes in the North, from the developed countries’ stance vis-à-vis SSC, and from FO- CAC and ALBA, as two recent instances of South-South policy frameworks for development cooperation. Catalysts and locomotives. In its deliberations on South-South cooperation, the South Commission highlighted the concept of “locomotives”, namely, countries that thanks to their economic power, diversified economies, size and political commitment could provide the necessary and sustained impulse for such cooperation. This was before the rise of several big countries in the South, which today have the attributes and capacities needed to perform this role and spearhead the long-term strategy of such cooperation worldwide. The collective self-reliance of the developing countries is coming of age and they no longer need to depend on the developed countries’ approval and sup- port of SSC. The presence of the South’s own “locomotives” is also bound to help overcome the traditional minimalist approach to South-South cooper- ation by multilateral financial institutions, dictated and imposed on the lat- ter by the North. It is this potential role of the major South countries to propel SSC, especial- ly those who are members of BRICS, that calls for policy attention and co- ordination among them, as a core group and also at the regional level and globally through G77 and NAM. It is important to work out an agreed pol- icy framework to guide them, orient their national policies and avoid coun- ter-productive mutual rivalry. Such a framework is also necessary to shun the temptation, in dealings with the other developing countries, to repeat and mimic the well-known predatory, neo-mercantilist and neo-colonial practic- 92 The European Journal of Management and Public Policy • Vol.13, No.1 (2013)

es of the traditional powers of the North, but rather actively to work on over- coming the suspicions and doubts that have existed in different countries of the South vis-à-vis the “big players”, especially if they happen to be in their proximity. China, India and Brazil, in particular, can and should assume the leading role in promoting South-South cooperation globally and should allo- cate resources and well-equipped institutions for this purpose. Smaller “locomotives” can certainly also play significant roles in the promo- tion of South-South cooperation, both at the practical and policy-initiative levels, for one thing because they are not seen to be promoting their own grand interests, as bigger players are often suspected of doing. The recent ac- tivities of Cuba, Venezuela, Bolivia and Ecuador readily come to mind. The importance of national commitment and institutions. The “foot soldiers” of SSC are the developing countries themselves, their leaders, governments, national institutions, economic actors and the public. On the whole, one can argue that, given the low priority assigned to SSC in the majority of cases, the sustained policy support needed for such cooperation to persist and become well-established has lacked. Change of national leaderships, different policy orientations and changed priorities have shaped national policies. The cost has often been significant and payback not evident or of major importance. The complexities and practical difficulties involved in building up and sus- taining South-South ventures have been off-putting and discouraging. The public has been indolent and often mostly oriented “vertically”, to the North. Complementarities between national economies have been missing, as well as have institutions, infrastructures and resources needed for and devoted to long-term and sustained efforts to build South-South links and bridges. Nor has SSC been considered or treated as an “infant industry”, which should not be entrusted to the volatility and dynamics of the markets and delegated to the private actors and interests, both domestically and internationally, and which needs to be nurtured until it can stand on its own feet solidly. Thus, each developing country needs to vet and determine its own specific responsibility and role and take necessary measures to secure its own com- mitment to and involvement in South-South cooperation and ventures, a 21st century South-wide project in the making. Special attention should be focused on countries’ leaders and their role, public and private actors, the media, educational institutions, and the tenacious political resistance to SSC by powerful and influential, often conservative domestic interests that have traditionally been lukewarm to opening up to the South, have clung to the North and acted as its influential home-grown detractors of South-South co- operation, including by sabotaging and bad-mouthing specific projects and activities. Adequate and ample financing: a necessary condition. Lack of adequate and sustained financing, including of catalytic and development financing and capital investment, has been one of the weakest links of South-South coop- 93 B. Gošović: South-South Cooperation: An Opportunity for the South to Change the World Economic and Political Order eration. Whether for holding meetings and conferences, or institution-build- ing and -support, or investment in joint projects and construction of needed infrastructures, or payments arrangements, special purpose funds or a South Bank, the necessary funding has not been available. This condemned many good ideas to remain on paper, often for decades. Some South-South projects and aims have come to life and taken off in Latin America on a limited scale, as regional projects, thanks to the generosity and drive of Venezuela, includ- ing teleSUR and BANCOSUR. But, these have been an exception to the rule. Massive, sustained and adequate financing and investment will be needed to translate the aspiration of the South’s collective self-reliance into reality. Institutional support at global, inter-regional, regional and sub-regional lev- els. The required institutional support has been an important missing lynch- pin of South-South cooperation. Both the absence of needed institutions and institutions that are underfunded, understaffed and not properly mandat- ed have characterized SSC efforts at all levels. At the global level, a “Third World” organization, i.e. a South Secretariat, has remained an elusive dream after decades of hopes and efforts. This is a major lacuna that needs to be addressed and overcome, for such institutions do play an essential role and can act as multilateral institution- al “South-South locomotives”. They can sustain an overall perspective of the South, act as institutional memory keepers, energize and direct SSC over a longer period, provide it with a joint vision and orientation that are not af- fected by whims of policy, leadership changes in individual countries, spe- cific national interests, and can work on creating conditions that favour the engagement and participation of individual countries, especially small and weak partners. Leadership. Country leaders with a global vision and commitment to the cause of the South and SSC are of critical importance, both in terms of en- gaging their own countries and linking them up in common and sustained endeavours, and in terms of personally performing a global South leadership role that is embraced by developing countries and their peoples, as was the case with the giant figures who launched NAM and G77. Such South leaders need to have experience and knowledge of history, of the South and the situ- ations and problems experienced in different regions of the South. More re- cently, Julius Nyerere, Fidel Castro, Mahathir Mohamad and Hugo Chávez, each in his own way, offer examples of dynamic leadership in the domains of policy, ideas and action in the service of SSC and the Global South. An annual global South-South cooperation report. A regular annual report and comprehensive overview of South-South cooperation, an essential em- pirical, statistical and analytical document, does not exist despite various at- tempts and efforts made to launch it in the United Nations. Obviously, a re- port of this nature would require a devoted, specialized institutional effort and networking within the United Nations, South-wide and in the individu- 94 The European Journal of Management and Public Policy • Vol.13, No.1 (2013)

al developing countries, and would be costly both in financial and human re- sources. Such a report, offering a worldwide overview, statistical data and de- tailed information on SSC, is an essential but still missing piece in the global architecture of international development cooperation. It is needed for decid- ing global strategies, for policy-making, for monitoring trends, and for con- crete actions. The UN system and South-South cooperation. The United Nations system and multilateral support are of special importance for sustaining and energizing South-South cooperation. Once the South has done its homework and estab- lished its South-South platform, in general and in detail, it should promote the platform and specific demands in the United Nations, in all organizations of the UN system, as well as in WTO, MFIs and regional development banks. It should also present concrete proposals for the support and facilitation of that cooperation and for the called for changes in the existing structures and practices that would recognize the new realities and the rise of the South. The support would need to be sustained, the goals and targets to be established and their implementation reported on regularly. The North and South-South cooperation. Time is ripe and it is necessary open- ly to address and understand the North’s attitude towards South-South coop- eration, including by focusing on the policies and actions of the key devel- oped countries, including “triangular” cooperation, and on specific domains such as South-South integration in WTO, South-South cooperation in sci- ence and technology vis-à-vis the existing intellectual property regime, and the role and impacts on SSC of TNCs and MFIs, respectively,

South-South cooperation: a long-term process South-South cooperation is a long-term and system-changing process, which needs understanding, commitment and a global political vision to orient it. Small steps can yield significant benefits and create possibilities for new and diversified initiatives in the future. It is a political, economic, social and at- titudinal undertaking, with a potential to overcome the many tenacious ves- tiges of the age of colonialism and imperialism and to evolve into an inte- grative, cooperative “game-changing” process. The seeds have been sown, in- cluding by trial and error efforts in the past decades and the experiences gained through international development cooperation. The fruits of this pe- riod need to be cultivated and harvested in the years and decades to come. They hold the potential and promise of helping the attainment of the devel- oping countries’ long-sought systemic goal – the goal of changing the North- dominated world political and economic (dis)order. A few concrete, feasible actions that would help to energize and foster South- South cooperation come readily to mind: 95 B. Gošović: South-South Cooperation: An Opportunity for the South to Change the World Economic and Political Order a) “Marketing” South-South cooperation. It is essential to build the South’s self-awareness among leaders, decision- and opinion-makers, as well as the broad public, including both by recalling the commonalities of devel- oping countries’ past histories and experiences and the similarities of their individual positions in the North-dominated system, and by underscor- ing the specific objectives and goals that bind them today. It is also impor- tant to build the spirit of South-South cooperation as a vital and promis- ing road for future development and prosperity, and for greater national autonomy and independence. The teleSUR model becoming inter-regional and global would significantly serve the advancement of the desired goals. The lessons of commercial “sell” of the kind that big PR firms practice and the means that governments use to influence public opinion would come in useful in this undertaking of rekindling the “spirit of the South”, which seems to be reawakening in Latin America now. b) Establishing a “South-South Commission”. Initially, the South Commis- sion was meant to be a “South-South commission”, one dealing only with South-South issues. Once it was established, however, it defined its own terms of reference to be all-encompassing and to cover North-South and national development issues too. Given what has transpired since 1990, in- cluding the highly discouraging experiences concerning North-South de- velopment cooperation and a reform of the international economic order, the moment is appropriate for establishing a South-South commission to address the question of what the South can do for itself through South- South cooperation and how it can influence the shaping of the world or- der and the future by acting together. The South Commission Report can provide a starting base and excellent background for this South-South ex- ercise. c) Domains of special importance. There are several domains in which South- South cooperation holds special promise, including: the application of S&T in the areas of food security, health, sustainable development and manage- ment of shared ecosystems, human settlements and urban agglomerations; joint efforts to develop regional and sub-regional infrastructures and links, as the backbone of South-South cooperation; and such systemic issues as a global information order, the Internet governance and uses, intellectual property regimes, the international regulation of the TNCs and of global finance and banking, global public goods and services, and the introduc- tion of global taxation. d) A UN organization for South-South cooperation. A UN organization specif- ically dealing with South-South cooperation is necessary. Perhaps the time has come to consider entrusting this mandate – on a full time basis – to UNCTAD and thus enabling this organization to resume an active, ben- eficial and central role in the field of development cooperation and glob- al economic policy. It would be free from the obligation to plead with the North for measures and concessions, which have been blocked, diluted or refused for decades, and from “self-censorship” on key policy issues so as 96 The European Journal of Management and Public Policy • Vol.13, No.1 (2013)

to please the developed countries. With most of its key functions in key domains of trade, money and finance, intellectual property, technology transfer, transnational corporations and other “hard core” economic issues having been removed from its mandate and agenda, a reconfigured UNC- TAD – with a responsive and supportive constituency of G77 and China, and without a dependence on the goodwill and policy signals of the de- veloped countries – would be reinvigorated and able to devote its ener- gies and activism to the mission of promoting South-South cooperation. It would once again play a prominent role on the world political scene, like it did in the 1960s and ‘70s. By focusing on South-South cooperation, it would also be able to influence the shaping of the overall international de- velopment agenda and global systemic issues. After 50 years of dedicated but frustrated work for development and the causes of the South, this im- portant UN organization could thus be freed of many constraints and re- vitalized by having it focus on South-South cooperation and by renewing its advocacy and activism, in tandem with G77, in pursuit of development goals and an equitable and democratic world economic order of the future. e) A South’s own organization for South-South cooperation. The policy space and freedom of action of the developing countries would most likely be somewhat constrained in a UN forum. Thus, the establishing of an or- ganization of the South for South-South cooperation should be given due consideration. Indeed, two such organizations could work in synergy and prompt each other constructively. A South-South organization is within the reach and capacity of the developing countries today. In conclusion, the moving of South-South cooperation to the global centre stage is a project awaiting the Group of 77 and the Non-Aligned Movement, similar to when they forced trade and development on the United Nations agenda in 1964. They have the means and power to make it happen again. RAOUL WEILER*; TIMI EĆIMOVIĆ** The Nature of the Planet Earth and New Sciences of Networks and Complexity

The presentation The Nature of the Planet Earth and New Sciences of Network and Com- plexity, is prepared by Prof Dr Timi Ecimovic1 and Prof Emeritus Dr Raoul Weiler2 and for 10th ECPD International Jubilee Conference Reconciliation, Respect and Human Secu- rity in the Balkan – The New Balkans and European Union: Peace, Development and Inte- gration, Serbia, Belgrade, City Hall, October 24th and 25th 2014. The Abstract: The humankind world of sciences and research is only treasure of human- ity. Since end of 19th century sciences were undergoing transformation from the sciences of nature to the sciences of humankind. As result at present, 2014, we have countless dif- ferent specialist sciences, research and practices. Even classical distribution as nature, so- cial and technical sciences does not reflect present. In short the world of humankind sci- ences and research is very complex and not under leadership of researchers and scientist but “money master monster” and less is connected with the nature of the planet Earth – the Biosphere, which is only host of humanity from commencement some 202.000 years ago up to present. Among countless specialized sciences we have new comers and one of them is The New Science of Network. Of course it is needed for better understanding of the world of hu- mans. Besides the new sciences of network is looking like the best approach for the sci- ence of complexity understanding. To this new more technical as natural complex problem solving dimension we shall dis- cuss relations and commons of the new science of network & complexity and realities of the Nature and the Nature of the planet Earth. Key Words: Agriculture, Climate Change System, Complexity, Complex Problem Solv- ing, Education, Environmental Crisis, Global Warming, Humankind Crisis 2014, Nature Realities, New Sciences of Network, Protection of the Nature, Space and Environment, Requisite Holism, Sustainable Development and Sustainable Future of Humankind.

* Professor Emeritus, Chairman EU Chapter, Club of Rome; ** Chairman, School of Environmental studies, Ansted University, Malaysia 1 Professor and Chair of Environmental Sciences at ANSTED University, Penang Malaysia, The Rector of WPF Univerwsity, Athens, Greece and Emeritus Citizen of Izola Municipality and Ko- rte Community of Slovenia, EU. 2 Emeritue Professor University of Leuiven, Belgium; Trustee of the World Academy of Arts and Sciences; Founder-PresidentClub of Rome EU Chapter, Brussels, Belgium.

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The Introduction It is a question whether humanity understand universality when discuss- ing the human and the Nature sciences. Our thinking of the “New Science of Network & Complexity” and the universal science of the Nature could be nice research of general understanding. We think the science of network & complexity and universal science of the Nature should be interdiscipli- nary academic field which studies systems of the Nature and the nature of the planet Earth system as complex networks & complexity such as galaxies, stars, planetary, biosphere, non-living3 and living nature systems of network and complexity internally and externally. We are discussing universal the Nature systems networks & complexity sci- ence Understanding the planet Earth system and nature, fitting the present glob- al community of humankind within the boundaries of the biosphere, under- standing the impact of the humanity to biosphere and quality of living con- ditions within the biosphere and many more important issues are demand- ing new approach of humankind for the issue of its longevity within present and future biosphere. With enormous development of technical sciences, wrongly set up of the global community of humankind leadership, lack of understanding of the present, enormous pollution and destruction of the basic systems within the biosphere, the water cycle, the sulfur cycle, the carbon cycle, the ozone pro- tection band and complexity of it, enormous research and production of the synthetic chemical products without knowing of their impact to the nature and many more issues the present possibilities for survival and longevity of global community of humankind are diminishing fast. The philosophers would say: “We are sawing of the branch on which we ate sitting¨. Many researchers and scientist are pointing to needed changes but present leadership of global community of humankind is unable to see it. It is “nor- mal” practice for those who are practicing leadership duties to see their own needs and the needs of their family members and rest of global community of humankind are hostages with duties and responsibilities to serve the needs of the leadership elite. It is the present “CIRCULUS VICIOSUS”, or the Gor- dian knot of humanity, or at present modern master slavery relationship. The Nature and the nature of the planet Earth are not put together for human sciences but for human longevity which is closely related to understanding of the Nature and the nature of the planet Earth.

3 Non-living and living nature within the biosphere of the planet Earth is obsolete definitions from the past and is conditionally used in this presentation. 99 R. Weiler, T. Ećimović: The Nature of the Planet Earth and New Sciences of Networks and Complexity

The present global community of humankind – 2014 – has more destruction of the nature as complementary coexistence and harmony. In our opinion humanity is moving fast on wrong path towards destruction. The living conditions within human eco sphere and the nature of the planet Earth are changing and not for better but opposite. Unfortunately “the living conditions” are only basis of Homo sapiens existence within the Biosphere. The new sciences of networks and complexity is as contemporary additional tool for understanding of the present and based on technical and social sci- ences and are opening new horizon for interdependence, interaction and co- operation with the nature understanding.

The Discussion Cybernetics plays a central role in the development in the acquisition of new or additional knowledge. A useful definition of Cybernetics taken from Mer- riam-Webster: Cybernetics is the science of communication and control theory that is con- cerned especially with the comparative study of automatic control systems (as the nervous system and brain and mechanical-electrical communication sys- tems). The definition includes “nervous system and brain” but escape possibilities of research of cybernetics as a part of the nature in reality. Due to complexity of discussion we shall limit ourselves on discussion of the new sciences of networks and complexity and the nature as it is in reality. Mentioning the nature in reality it is in brief description of the nature as: The Nature, Universe, Cosmos and requisitely holistic units of the Nature – galaxies, planets and other are countless forms and transformations of the energy, matter, information, particles, rays, powers and forces, dimensions and yet unknown contents of the Nature operating under practices of inter- dependence, interaction and co-operation and resulting system transforma- tions, evolvements and synergies are basis of new understanding of the Na- ture and the nature of the planet Earth.4 Presentation of “The New Sciences of Networks & Complexity: a Short Intro- duction” Raoul Weiler* & Jüri Engelbrecht°, July 2014, it is an excellent appli- cation of the research and science of the issue.

4 Please see »The Principia Nature – The Nature and Homo sapiens Global Community«, Ecimov- ic, ISBN 978-961-92786-7-3, 2011 and “The Anthology 2 – 2001 – 2014”, Ecimovic and Mulej, ISBN 978-961-92378-4-7 (pdf) digital book, 2014 both could be seen at “Small Digital Library” on www.institut-climatechange.si Emeritus from University Leuven, Belgium; Trustee of the World Academy of Art & Science. Vice President Estonian Academy of Science; Trustee of the World Academy of Art & Science. 100 The European Journal of Management and Public Policy • Vol.13, No.1 (2013)

We are discussing practical application of the new sciences of networks and complexity within the nature sciences as in reality. When researching the Nature and the nature of the planet Earth it is diffi- cult to understand values of classical sciences methods as mathematics, syn- thetic chemicals and technical sciences due to their non-existence in the na- ture. They are a part of human sciences or human world or a part human eco sphere. Larger damages in the biosphere have been done by synthetic chemicals, their interdependence, interaction, co-operation and synergetic results with the nature present systems and materials. As result we are facing shortage of the fresh water supply, the food supply, environmental poisoning, poison- ing of the land, water and air environments, etc. All present environmental changes are result of the synergetic results from interdependences, interac- tion and co-operation between human eco sphere outputs and the nature. Of course on the top is explosive reproduction of humans. Let us see the new sciences of networks and complexity role in the Nature. Networks5 is: 1. any arrangement or fabric of parallel wires, threads, etc. crossed at regular intervals fastened to them so as to leave open spaces; netting; mesh 2. a thing resembling this in some way; specif,. a) a system of roads, canals, veins, etc. that connect with or cross one another b) Radio and TV a chain of transmitting stations controlled and operated as a unit c) a group, sys- tem, etc. of interconnected or cooperating individuals. 3. the making of nets or netted fabric – adj. broadcast over the stations of network Networking is: 1. the developing of contacts or exchanging of information with others in an informal network, as to further a career 2. the interconnec- tion, as over communication lines, of computer systems. For better understanding we are moving to case study of human body and networks role within the human body system. It is not the best case study but an indicative one. Human body is a network of cells, matter, energy information and tissue fit- ting together to form a system of individual representative of Homo sapi- ens. The gene structure has role of network center and gene structure is a part of network within each cell. The command center is brain and network- ing is mode of action. The life is interdependence, interaction and coopera- tion within the system as well as within the environment and other systems within the environment and other very complex issue. On such way we may

5 According to Webster’s NewWord Dictionarry, Second College Edition, 1986 101 R. Weiler, T. Ećimović: The Nature of the Planet Earth and New Sciences of Networks and Complexity say: living human or any living creature is a small Universe. One in all and all in one. The cell basic requisitely holistic unit of the living nature presents orderly, systemic interdependence, interaction and co-operation of all matter, ener- gy and information within it. The matter exchange within one cell creatures is not from ashes to ashes because many of them are reproducing by sim- ple divide – protozoon. Primordial one cell creatures first appearance was some 3.7 billion years ago and have been first creatures on the planet Earth. With evolution they changed to plant and animal plankton and latter to mul- ti cells creatures. 800 million year ago aquatic and terrestrial environments have been homage of countless number of different creatures. Ancestor of Homo sapiens appeared some 8 million year ago and Homo sapiens evolved some 202.000 year ago. In our research we find important connections developed as sciences of net- work and living creatures opening new possibilities for understanding, re- searching and learning of the methods, mechanisms and actions of living world. Our work is using classical, contemporary, case study, cybernetic, complex problem solving, systemic thinking, requisite holism, sciences of network and complexity etc. and other research methods for better understanding of the present. We think sciences of Network & Complexity are a step ahead in human sci- ences and use of network, networking and complexity for better understand- ing of the Nature is our recommendation with this presentation.

The Conclusions Our intention is to open new research for better understanding of many is- sues today put aside due to wrong understanding of the Nature, human eco sphere, living creatures etc. and opening possibility for survival of Homo sa- piens within the Biosphere of the planet Earth. We are recommending transformation of present global community of hu- mankind to sustainable future society.

References: 1. “The Anthology 2 – 2001 – 2014”, Ecimovic and Mulej, digital book (pdf), could be seen at www.institut-climatechange.si “Small Digital Library”, ISBN 978-961-92378-4-7, 2014. 2. “The New Sciences of Network & Complexity: Short Introduction”, Raoul Weiler & Jüri Engel- brecht, presentation, 2014, also published within 15th Volume of the Anthology 2 – 2002 – 2014. KEMAL EL SHAIRY Curse of Oil – the Libyan Case

Introduction Majority of the oil-rich countries, including Libya, belong to the global South or the Third World. Their low or under-developed states is considered to be due to mismanagement of natural resources, existence of corrupt institutions, spending income in armament and luxury life of their ruling elites. This research has two main purposes. The first purpose of this research is to explain the impact that Libya’s main natural resource, i.e. oil, had on the de- velopment of its institutions during and after Muammar El Gaddafi’s regime, as well as to explain with the help of the “oil curse”, why the recent demo- cratic transition in certain countries such as Tunisia, which is also part of the Third World, was more successful than in Libya. The second purpose of this research is to explain how Muammar El Gaddafi, the authoritarian leader of Libya used oil resources in his attempts to weaken the geopolitical influence of the West in Africa, and how at the same time he strengthened his dictatorial political grip on Libya. Thus, the main hypothesis of this research is: Muammar El Gaddafi used Lib- ya’s, which is a member of the Global South, main resource i.e. oil in order to extend and strengthen his reign over Libya as well as to increase his ge- opolitical influence in Africa through his aggressive and expansionistic for- eign policy. The Libyan February Revolution and aftermath will be briefly an- alyzed as well.

Economic and social impact of oil abundance When it comes to the “oil curse”, it can be said that this factor contributes to the maintenance of undemocratic regimes, as well as that it is one of the fac- tors that influences the democratization of the country. Huge profits based on the exploitation of oil reserves i.e. the so-called oil rents, hinder econom- ic growth by undermining the effectiveness of public administration, the rule of law as well as by encouragement of corruption. 1

* Ph.d. at the Faculty of Political Science at the University of Belgrade 1 Nebojša Vladisavljević, Stabilni autoritarizam u arapskom proleću, (Stable Authoritarianism), Sociološki pregled (Sociological Review), year XLVII, No. 4, 2013, 489–514. p. 3

The European Journal of Management and Public Policy Vol. 13, No.1 (2013) • issn 1726-6475 103 K. El Shairy: Curse of Oil – the Libyan Case

It may be said that the wealth stemming from natural resources, in fact encour- ages the undemocratic rule. Finally, in these countries civil wars are far more likely to erupt due to the fact that the potential secessionists and rebels are en- couraged and motivated by an attractive prey i.e. natural resources2. There are three arguments that are in favour of assumption according to which natural resources (oil) have a negative impact on democratization. The first argument is the theory of modernization, the second argument is the analysis of the po- litical consequences of a rentier state and the third argument is usage of the natural resources for creation of an oppressive coercive apparatus.3 The economic development based on the exploitation of oil reserves takes place in economic enclaves and often in geographic enclaves. It requires large capital investments and very little manpower and does not encourage con- nection with other parts of the economy. Moreover, economic development based on the exploitation of minerals, especially during periods of rapid growth, often hinders agricultural and other industrial sectors. The strength- ening the natural resources sector, which today is usually controlled by the state, also strengthens the role of the state in relation to private sector, which again dominates other branches of industry.4 While the modern states are based on taxation of citizens and for this purpose they have developed fiscal and regulatory institutions, rentier states focus on the distribution of rents. The absence (or significantly reduced volume) of tax- ation, reduces the level of responsibility of the state towards its citizens.5 In the first modern countries in Western Europe, the strengthening of politi- cal institutions and the spread of taxation encouraged the demands for politi- cal representation and strengthening of the impact that various social groups had on the political decision-making. The undemocratic leaders of modern countries rich in oil, rulers can only state that, since there isn’t any taxation (or it is on a very low level little), there is no need for representation. Thus, the governments of rentier states are less accountable to their citizens. Countries rich in oil have huge resources which enable them in the long run to “buy” the sympathy of their citizens, or at least to reduce their dissatisfac- tion with the undemocratic rule. Distributive policies upon which the politi- cal stability is based, includes health care, education, food subsidies, housing, cheap loans and investment incentives. Thus, it is possible to expand the so- cial base of the regime and pacify significant social groups, regardless of the weaknesses of the institutions of a rentier state.6 This type of economy and governance can be found in most of gulf countries such as Saudi Arabia, Bahrain, Qatar, with UAE being the rare exception. All

2 Ibidem. 3 Ibidem. 4 Ibidem. 5 Ibidem. 6 Ibidem. 104 The European Journal of Management and Public Policy • Vol.13, No.1 (2013)

these countries are governed by undemocratic rulers, which “silence” their citizens by providing them high living standards. In turn, the citizens “sac- rifice” their political freedom. The best example may be found in the recent Arab uprisings. Only two rich oil countries, such as Bahrain and Libya, faced political unrests, with Bahrain being able to quench the unrests, while in Lib- ya the unrests escalated into civil war.

Definition of sultanistic regimes In order to properly explain the first purpose of this research, we houlds first consider the impact and consequences that sultanistic regimes have on the process of democratization. Stepan and Linz define sultanistic regimes and the way in which a democratic consolidation may occur after the fall of such regimes, in the following manner: “A sultanistic regime is one in which the ruler personalizes the government and the regime and subjects the state, po- litical society and civil society to a non-institutional and an unpredictable intervention”7 They also state that “these regimes provide an opportunity for the transition, because if a ruler (and his or her family) is overthrown or as- sassinated, the sultanistic regime collapses. This way the end of the regime often leads to the formation of a provisional government, and if it does not hold elections in a timely manner, it most often poses a threat to democratic consolidation.”8 Furthermore, Stepan and Linz warn of a potential abuse of power by the provisional government. According to Stepan and Linz “the direct implications of sultanistic regime for creators of democracy is present in the fact that they are faced with an initial task of forming a civil society, constitutionalism and the rule of law, professional administrative apparatus, economic society as well as political institutions from a very low level.”9 In other words, the process of democra- tization after the fall of the sultanistic regimes may prove very problematic due to the legacy of the previous regime and which, due to its sultanistic na- ture, had ensured that all the aforementioned factors necessary for democra- tization were at a very low level and almost unusable owing to the fact that at most times they were a personal instrument of the rulers and the regime.

Libya and its oil abundance: Gaddafi’s destructive internal policy Taking into consideration that the research is partly based on the assumption that the legacy of the Gaddafi regime is largely responsible for the current situ- ation in Libya, it is crucial to explain its internal and foreign policy during the

7 Juan Linz, Alfred Stepan, Democratic Transition and Consolidation, Filip Višnjić, Belgrade, 1998, p. 93 (Translated to Serbian language) 8 Ibidem. 9 Idem, p. 83 105 K. El Shairy: Curse of Oil – the Libyan Case

1970s and 1980s, due to the fact that this period is considered to be one of the most turbulent periods in Libyan history and is also crucial for clarifying the events which had occurred during and after the 17th February Revolution, as well as to clarify the current situation in Libya. It is crucial due to the fact, that after coming to power in 1969, and during the 1970s and 1980s, Gaddafi has taken a certain political direction which he implemented through oil revenues, which was the reason why his regime was classified as sultanistic. This period is also important due to the fact that it is the most turbulent and unpredictable period of Gaddafi’s rule, which was marked by many international incidents that have significantly influenced and shaped Libya’s internal politics and vice versa. It is important to note that Gaddafi financed the realization of all of his interests and visions, with the help of petrodollars. After seizing power, Gaddafi was accepted by the majority of the Libyan peo- ple. However, when he announced the “Cultural Revolution” during the be- ginning of the 70s, the elements of his sultanistic rule have begun to emerge. The first element, which marked the beginning of the sultanistic reign of Muammar El Gaddafi, was the introduction of national committees in all as- pects of Libyan society and into all existing institutions (military, education- al and administration), in order to gain complete control over these institu- tions, and in order to monitor the implementation of the “green” revolution” as well as any suspicious elements that could somehow threaten and endan- ger the regime. In addition, the regime established “revolutionary commit- tees”, which were similar to national committees, with only difference be- ing their slightly more aggressive role, and whose task was to supervise and monitor all aspects of the Libyan society. They were also entrusted with a task of spreading the repression throughout the country as well as eliminat- ing the opposition both within and outside Libya. Another element of Gaddafi regime’s sultanism was an absolute monopoly over natural resources i.e. oil. After the discovery of oil, Muammar El Gaddafi treated these resources as his personal property rather than as a property of the state. A large part of the Libyan budget, which was mainly composed of oil revenues, was intended for building such institutions that would solely and exclusively serve the regime and thus, emergence of any form of politi- cal mobilization or opposition had been prevented. Also, regime’s full focus on oil exploitation, has resulted in Libyan’s economy, infrastructure and oth- er industrial branches being completely neglected and ignored. This further resulted in the fact that the natural resources sector was the most developed, and that the process of modernization had been thwarted. In a time period between 1970-2007 an average of 70 % of total Libya’s government revenue came from oil, while through the same period oil exports accounted for 95 % of total exports.10

10 Saleh Ali, Issa, “Oil Revenue and Economic Development; case of the Libyan Economy (1990- 2007)”, Wolloongong University, 2011, p. 29 106 The European Journal of Management and Public Policy • Vol.13, No.1 (2013)

Gaddafi “inherited” a state without developed institutions, and for decades, he marginalized and weakened the army and military institutions, while at the same time he was building around himself a strong and highly repres- sive security apparatus, which resulted in him having an unopposed and firm grip over Libya. Thus, he was able to freely choose the direction and goals to- wards which the country would strive. By eliminating the opposition and all the factors that could threaten his rule, Gaddafi’s regime has moved in a di- rection of establishing institutions that were mainly formed for the purpose of achieving and protecting the personal interests of his family and those who were close to the regime. All aspects of Gaddafi’s policy were financed by the “petrodollars” i.e., by oil revenues. Taking into account the fact that Gaddafi’s regime was based on repression, promotion and protection of the regime’s interests, and how during the mo- narchical regime of King Idris I, political mobilization was also not easy to initiate, it is easy to conclude that it was almost impossible to initiate a po- litical mobilization independent of the Gaddafi regime (independent in the sense that it is not orchestrated by the regime). Therefore, since the repressive environment created by the regime did not allow establishment of institu- tions such as trade unions or civic associations that initiated political mobili- zation, the Libyan population was not properly “trained” to react and provide any resistance. The result of Gaddafi’s sultanistic regime is Libya after theth 17 February Revolution, which has great difficulty to form one of the funda- mental institutions such as Constitution, which is considered to be a crucial element for building a democratic state. Without constitution, Libya faced and will continue to face, a chain of serious problems and difficulties, such as lack of a coherent and efficient military, security and among other education- al institutions necessary for the development of the country. On the other hand, the democratic transition in Tunisia and in Egypt, which are also countries of the Third World and which throughout their history had the “culture” of political mobilization as well as institutions that would facili- tate it, had showed considerable progress, although Egypt’s main problem is not so much political mobilization as is the strong role of the military. There- fore, due to the lack of appropriate institutions which would alter the direc- tion in which the country is moving, Libya is still following footsteps of the previous regime and since it had followed the same path for 42 years, a huge amount of effort, financial investment and drastic changes are required in -or der for Libya to follow the example of Tunisia. As I mentioned, in order to preserve power, the sultanistic regimes in Libya, Tunisia and Egypt had each built a very repressive state apparatus and insti- tutions in which they have invested enormous financial resources. However, when compared with the Tunisian army, which was also marginalized, the Libyan army has been marginalized to such an extent that it could be free- ly assumed that Libya had no national army, but instead it only had para- military brigades that belonged to Gaddafi’s family, while at the same time 107 K. El Shairy: Curse of Oil – the Libyan Case the members of these paramilitary brigades in exchange for various lucrative privileges had to protect the regime. Therefore, after the outbreak of the Rev- olution, although it sided with the revolutionaries, the chances of the Libyan army and police, as opposed to a properly equipped, trained Gaddafi’s repres- sive apparatus (Revolutionary Guard, Gaddafi’s personal guard and paramil- itary units) were minor and therefore it failed to oust Gaddafi from power and stop the outbreak of the civil war. On the other hand, when the Tunisian army, although being inadequately equipped due to regime’s long term mar- ginalization, rebelled against Ben Ali’s security apparatus, it managed to al- most completely neutralize the violence that Libyan army could not prevent. (It is worth noting that the Tunisian army had no interest in helping Ben Ali maintain his power, due to the fact that when compared to regime’s paramili- tary and security forces it did not have any privileges and it was severely mar- ginalized in all important aspects).

Gaddafi’s petrodollar aggressive and expansionistic foreign policy During Muammar El Gaddafi’s regime, which had been in power for 42 years, the entire country of Libya was used as an instrument through which Muam- mar El Gaddafi realized and tried to achieve his personal ambitions and ide- as, both on the domestic level, as well as on the international level. All of his geopolitical, interests, ambitions and vision were financed by Libya’s enor- mous oil export revenues. When considering Libya’s foreign policy during the Gaddafi regime, it is fair to say the least that it was very turbulent. There were many international incidents that had a very negative impact on Libya’s relations with the world’s leading powers and that could prove the aforemen- tioned statement. For example, Libya’s relations with the United States have begun to deterio- rate after Gaddafi’s privatization of oil during 70’s. During the 80’s, he ini- tiated his anti-Western campaign around the world, by sponsoring various terrorist groups, radical rebel movements and organizations.11 Gaddafi’s re- gime was also constantly trying to undermine and weaken the interests of world powers such as the US and France, by meddling in the internal af- fairs of its neighbouring African countries12. In addition, Gaddafi had threat- ened the interests of the leading world powers, by attacking and occupying its neighbouring countries. Due to his dissatisfaction with the decision of former Egyptian President Anwar Sadat to initiate cooperation with Israel, the pan-Arab minded leader of Libya Muammar El Gaddafi, had decided

11 Dana Moss, Reforming the Rogue: Lessons from the U.S.-Libya Rapprochement, The Washing- ton Institute for Near East Policy, Policy Focus no. 105, pp. 1-49 12 Sarah Charlton, Crisis Management in Libya: Learning the Lessons of 1986, AL Nakhlan-Online Journal on Southwest Asia and Islamic Civilization, Winter 2012, pp.1-11 108 The European Journal of Management and Public Policy • Vol.13, No.1 (2013)

attack Egypt on July 21, 1977, and thus he initiated a four-day war which ended on July 24, 1977.13 The next example of Gaddafi belligerent, unpredictable and turbulent for- eign policy, was the invasion of Chad in 1979, which in 1973 was preced- ed by Gaddafi’s occupation of Aouzou strip.14 The war with Chad ended in 1989, with a total defeat of the Libyan army by the Chadian and French ar- mies.15 It is believed that Gaddafi initiated the conflict with Chad in order to reduce the geopolitical influence of France in the Sahel region. By occupying Chad, Gaddafi’s regime has significantly worsened its relations with the US and France, and therefore initiated a wave of decisions by many to support Libya’s isolation from the international community and scene. When it comes to the terrorist acts and attacks executed by the regime of Muammar El Gaddafi, the most significant attacks were: the attack on a dis- cotheque in Berlin on 5th of April, 198616, the attack on US civilian aircraft which exploded over the Scottish town of Lockerbie on 21st of December 198817, as well as the killing of British policewoman Yvonne Fletcher on 17th of April 1984, in front of Libya’s national diplomatic office18 in London19. All the above-mentioned international incidents, wars, occupations and prov- ocations were fully or partly initiated by the regime of Muammar El Gaddafi. There are several opinions regarding the causes of such external and internal foreign policy that was led by Muammar El Gaddafi. The first opinion has taken as the main cause Gaddafi’s dictatorial psychological profile20. A sec- ond opinion is based on the assumption that Gaddafi’s foreign and domestic policies were merely the consequence of the foreign policy of the West. US Secretary of Defence Caspar W. Weinberger, whom had served in the Rea- gan (Ronald Reagan) administration from 1981 to 1986, held that Gaddafi

13 Lyndon H. LaRouche Jr., “Egypt Invades Libya As Sadat Position Crumbles”, Executive Intel- ligence Review, volume no.4, number 30, 26th of July1977. god. Available at http://www.la- rouchepub.com/eiw/public/1977/eirv04n30-19770726/eirv04n30-19770726_041-egypt_in- vades_libya_as_sadat_pos.pdf (Accessed on 15th of April 2015.) 14 Helen Chapin Metz, Libya: A Country Study, Library of Congress, Washington, D.C.: The Divi- sion, 1989., p.42 15 Mario J. Azevedo, War and Society; Volume 4, Roots Of Violence: A History of War in Chad, Routledge, London and New York, 1998, p. 85 16 Nathalie Malinarich, Flashback: The Berlin disco bombing, BBC News, 13th of November, 2001. Available at http://news.bbc.co.uk/2/hi/europe/1653848.stm , (Accessed on 15th of April 2015). 17 Edward Cody, Pan Am Jet Crashes in Scotland, Killing 270, The Washington Post, 22nd of De- cember, 1988. god. Available at http://www.washingtonpost.com/wp-srv/inatl/longterm/pan- am103/stories/crash122288.htm, (Accessed on 15th of April 2015). 18 Gaddafi didn’t want the Libyan diplomatic offices to be called embassies. 19 Rosie Cowan and Hugh Muir, Police to fly to Libya in new search of PC’s killer, BBC News, 26th of March 2004 Available at http://news.bbc.co.uk/onthisday/hi/dates/stories/april/17/news- id_2488000/2488369.stm, (Accessed on 15th of April, 2015) 20 Ronald Wintrobe, Dictatorship: Analytical Approaches, The Oxford Handbook of Comparative Politics, Oxford University Press, 2009, pp.363-394 109 K. El Shairy: Curse of Oil – the Libyan Case resorted to international terrorism in order to achieve strategic objectives, as well as to retaliate against the US due to the conflict in the Gulf of Sidra21,22. However, there is also an opinion according to which Libya’s terroristic and anti-imperialistic tendencies stem from the fact that until 1951, Libya was occupied by various imperialist countries such as Turkey, Italy and England as well as partially by the United States. Therefore, it is considered that Lib- ya’s anti-imperialist and terrorist tendencies date back to the beginning of the early Italian occupation.23 The third opinion is that internal politics of Muammar El Gaddafi creates and influences his foreign policy decision-making. This implies absolute con- trol over the state and desire to at any cost preserve his power as well as to take all necessary measures, even at the international level, so that noth- ing would jeopardize his authority. When it comes to domestic policy dur- ing the Gaddafi regime, it could be said with certainty that this period had been imbued with dictatorship and absolute control of the regime over all the state institutions. Muammar El Gaddafi used all the institutions for his personal ambitions and visions, which alse served as mere instrument for the maintenance of his power. Taking this fact into consideration, it is logi- cal to conclude that due to the nature of the regime, the public opinion did not interfere and that the institutions did not have adequate capacity to limit and restrictively influence the belligerent foreign policy of the former Libyan leader Muammar El Gaddafi. The leader of Libya was able to freely and with- out difficulty initiate armed conflicts with other states due to the fact that all the state institutions were completely subordinated to his regime.

Libyan 17th February Revolution and its aftermath After the fall of the regime of Muammar Al Gaddafi, the progress of demo- cratic transition in Libya has proved to progress at a much slower rate than in the neighbouring countries such as Egypt and Tunisia. The security situation in the country is very unstable. Weapons proliferation is ubiquitous despite the efforts of the government to prevent and thwart it. Various armed politi- cal groups are battling for power and are seriously undermining the author- ity and work of the government, thus disrupting the country’s stability and security. Lack of state institutions, weakness and inefficiency of the newly es- tablished institutions as well as the institutions remaining from the previous regime, significantly affect the stability of not only the state but also the every- day lives of Libyan citizens, which after having spent 42 years under sultanis- tic regime still lack the know-how and knowledge to organize themselves in

21 Armed conflict has taken place in the Gulf of Sidra on 19th of August, 1981 in which two Libyan warplanes were destroyed and as a result Gaddafi’s regime had been humiliated. 22 Sarah Charlton, Crisis Management in Libya: Learning the Lessons of 1986, op.cit., p.5 23 Idem., p. 6 110 The European Journal of Management and Public Policy • Vol.13, No.1 (2013)

a coherent and efficient manner in order to fight for their rights, their well- being and prosperity of their country. Unlike Tunisia, Egypt and even Algeria, throughout its history, Libya had never had citizen unions or associations, whose task is to protect the inter- ests of its various members. In other words, the political mobilization in Lib- ya (even during the reign of King Idriss I) was on very low, almost non-ex- istent levels, while during Gaddafi’s regime, it was “artificial”. Another factor that contributes to the unstable situation in Libya is the long term margin- alization of the army by the Gaddafi regime, which was ill-equipped and un- dertrained as well as lacking the capacity to improve the security situation, and thus enable the government to take measures necessary for stabilization of the country.

Conclusion It is true, indeed, that more than 90 percent of the oil-rich countries belong to the Third World. Exception are the Small Gulf states united into the Ara- bic Emirates and Russia, which could be considered as a Second World coun- try. Norway was the First World country before oil was discovered in her ter- ritorial water. When taking into consideration the case of Libya as being a part of the Third World, the First World-Second World dichotomy is very important. Libya had all conditions to become a part of the First World. However, due to Mua- mmar El Gaddafi’s wrong policy, Libya remained at the very end of the Third World. However, the means by which he intended and tried to realize his interests were extremely aggressive and unpredictable. As a result of these aggressive attempts, the international society had for almost two decades, considered Libya to be a “rogue” and a “pariah” state. It is almost important to note, that Gaddafi’s regime, during 1970s and 1980s, had spent a very large part of the Libyan budget24 [1] on weapons acquisitions and lucrative arms deals, in- stead of investing into Libya’s educational, social and economic infrastruc- ture. This research has shown that this kind of domestic and economic policy adopted by Muammar El Gaddafi’s regime had greatly hindered Libya’s pro- gress towards development and also its attempts, to become a member of the more developed and advanced First World. The conflict in Libya stems from battle over territory, public and private re- sources as well as over power. All these conflicts are taking place without the presence of a strong and decisive state and government. These tensions had

24 In a time period between1970-2007, an average of 70 % of total government revenue came from oil. It is important to note that through the same period oil exports accounted for 95 % of to- tal exports. 111 K. El Shairy: Curse of Oil – the Libyan Case already existed before Gaddafi, but they were further exacerbated due to his politics of clientelism and patronage. This situation had then developed into a very unstable competition and co- operation among various political actors. The dynamics of inclusion and ex- clusion from the political scene is frequently accompanied by regular use of violence, for the purpose of achieving local, regional and national goals and interests. The current situation in Libya is a result of the following factors: the struggle for power, control over oil resources, tensions between ethnic and tribal affiliations. Another reason is the lack of firm state whose task would be to regulate the volatile role of the non-state armed forces. All the above- mentioned factors have significantly set back the attempts of the Tobruk based government to establish state institutions, as well as their attempts to reduce violence.25

References Anderson, L. (1987). The State in the Middle East and North Africa. Comparative Politics 20 (1): 1-18. Azevedo, Mario J. War and Society; Volume 4, Roots Of Violence: A History of War in Chad, Rout- ledge, London and New York, 1998, 163 Beblawi, H. and G. Luciani (eds.) (1987). The Rentier State: Nation, State and the Integration of the Arab World. London: Croom Helm. Chapin Metz, Helen. Libya: A Country Study, Library of Congress, Washington, D.C.: The Divi- sion, 1989, 175. Charlton, Sarah, Crisis Management in Libya: Learning the Lessons of 1986, AL Nakhlan-Online Journal on Southwest Asia and Islamic Civilization, Winter 2012, pp.1-11 Cody, Edward, Pan Am Jet Crashes in Scotland, Killing 270, The Washington Post, 22nd of Decem- ber. 1988, Available at: http://www.washingtonpost.com/wpsrv/inatl/longterm/panam103/sto- ries/crash122288.htm, Accessed on 15th of April 2015 Cowan, Rosie and Muir, Hugh, Police to fly to Libya in new search of PC’s killer, BBC News, 26th of March, 2004 Available at: http://news.bbc.co.uk/onthisday/hi/dates/stories/april/17/news- id_2488000/2488369.stm, Accessed on 15th of April 2015 Jensen, N. and L. Wantchekon. (2004). Resource Wealth and Political Regimes in Africa. Compar- ative Political Studies 37 (7): 816-841. LaRouche Jr., Lyndon H. “Egypt Invades Libya As Sadat Position Crumbles”, Executive Intelligence Review, volume no.4, No. 30, 26th of July 1977 Available at http://www.larouchepub.com/eiw/public/1977/eirv04n30-19770726/eirv04n30- 19770726_041-egypt_invades_libya_as_sadat_pos.pdf (Accessed on 15th of April 2015.) Linc, Huan i Stepan, Alfred, Demokratska tranzicija i konsolidacija, Filip Višnjić, Beograd, 1998, 577 Malinarich, Nathalie, Flashback: The Berlin disco bombing, BBC News, 13th of November 2001. god, Available at http://news.bbc.co.uk/2/hi/europe/1653848.stm , (Accessed on 15th of April 2015.)

25 Combaz, Émilie, “Key actors, dynamics and issues of Libyan political economy”, GSDRC, 2014, p.18 Available at: http://www.gsdrc.org/docs/open/HDQ1106.pdf (Accessed at: 8th of May, 2015) 112 The European Journal of Management and Public Policy • Vol.13, No.1 (2013)

Moss, Dana, Reforming the Rogue: Lessons from the U.S.-Libya Rapprochement, The Washington Institute for Near East Policy, Policy Focus no. 105, pp. 1-49 Ross, M.L. (2001). Does Oil Hinder Democracy? World Politics 53 (3): 325-361. Ross, M.L. (2012). The Oil Curse: How Petroleum Wealth Shapes the Development of Nations. Princeton: Princeton University Press. Kindle Edition. Sachs, J.D. and A.M. Warner. (1999). Nature Resource Intensity and Economic Growth. In: J. May- er, B. Chambers and A. Farooq (eds.) Development Policies in Natural Resource Economies. Cheltenham: Edward Elgar, pp. 13-38. Sala-i-Martin, X. and A. Subramanian. (2003). Addressing the Natural Resource Curse: An Il- lustration from Nigeria. IMF Working Paper. Washington, DC: International Monetary Fund. Saleh Ali, Issa, “Oil Revenue and Economic Development; case of the Libyan Economy (1990- 2007)”, Wolloongong University, 2011, 303 Vladisavljević, Nebojša, Stabilni autoritarizam u arapskom proleću“, (Stable Authoritarian- ism), Sociološki pregled (Sociological Review), year XLVII, No. 4, 2013, pp.489-514 Wintrobe, Ronald, Dictatorship: Analytical Approaches, The Oxford Handbook of Comparative Pol- itics, Oxford University Press, 2009, pp.363-394 Detailed instruction for authors

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