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JERKER CARLSSON SOUTH-SOUTH RELATIONS in a CHANGING WORLD ORDER Edited by JERKER CARLSSON

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JERKER CARLSSON SOUTH-SOUTH RELATIONS in a CHANGING WORLD ORDER Edited by JERKER CARLSSON Edited by JERKER CARLSSON SOUTH-SOUTH RELATIONS IN A CHANGING WORLD ORDER Edited by JERKER CARLSSON SCANDINAVIAN INSTITUTE OF AFRICAN STUDIES UPPSALA 1982 SEMINAR PROCEEDINGS FROM THE SCANDINAVIAN INSTITUTE OF AFRICAN STUDIES 1. Soviet Bloc, China and Africa. Eds. Sven Hamrell and C.G. Widstrand. 173 pp. Uppsala 1964. (Out-of-print) 2. Development and Adult Education in Africa. Ed. C.G. Widstrand. 97 pp. Uppsala 1975. (Out-of-print) 3. Refugee Problems in Africa. Ed. Sven Hamrell. 123 pp. Uppsala 1967. Skr. 10:-. 4. The Writer in Modern Africa. Ed. Per WZstberg. 123 pp. Uppsala 1968. Skr. IS:-. 5. African Boundary Problems. Ed. Carl Gosta Widstrand. 202 pp. Uppsala 1969. Skr. IS:-. 6. Cooperatives and Rural Development in East Africa. Ed. C.G. Widstrand. 271 pp. Uppsala 1970. (Out-of-print) 7. Reporting Africa. Ed. Olav Stokke. 223 pp. Uppsala 1971. Skr. 30:-. 8. African.Ed. Carl Gosta Widstrand. 239 pp. Uppsala 1972. Skr. 30:-. 9. Land-locked Countries of Africa. Ed. Zdenek Cervenka. 368 pp. Uppsala 1973. Skr. 40:-. 10.Multinational Firms in Africa. Ed. C.G. Widstrand. With an introduction by Samir Amin. 425 pp. Uppsala 1975. (Out-of-print) 11.African Refugees and the Law. Eds. Goran Melander and Peter Nobel. 98 pp.-- Uppsala-- 1978. Skr. 40:-. 12.Problems of Socialist Orientation in Africa. Ed. Mai Palmberg. 243 pp. Uppsala 1978. (Out-of-print) 13.Canada, Scandinavia and Southern Africa. Eds. D. Anglin, T.Shaw and C. Widstrand. 190 pp. Uppsala 1978. Skr. 70:-. 14.South-South Relations in a Changing World Order. Ed. Jerker Carlsson. 166 pp. Uppsala 1982. Skr. 90:-. O 1982 Nordiska afrikainstitutet ISBN 91-7106-206-8 Printed in Sweden by Bohuslaningens AB, Uddevalla 1982 CONTENT PAGE Editorial Foreword 7 Jerker Carlsson THE EMERGENCE OF SOUTH-SOUTH RELATIONS IN A CHANGING WORLD ECONOMY Helga Hoffmann TOWARDS AFRICA? BRAZIL AND THE SOUTH- SOUTH TRADE Tom Forrest GEOPOLITICS IN THE SOUTH ATLANTIC: BRAZIL, NIGERIA AND AFRICA U Joy Ogwu NIGERIA AND BRAZIL: A MODEL FOR THE EMERGING SOUTH-SOUTH RELATIONS? Sanyaya La11 THIRD WORLD MULTINATIONALS: THE INDIAN CASE Editorial Foreword Since the 1970's the world economy has been characterized by a number of important changes. A new international division of labour has emerged which has created new relations be- tween the major actors in the system. The expansion of inter- national corporations has increased the degree of integra- tion within the international division of labour leading to, among many things, the establishment of new relations be- tween the nation states in the world economy. The hierarchization of the so called Third World has been one of the most significant features of this development. The emergence of the newly industrializing countries (NIC) has begun to challenge the traditional North-South contact pattern, by increasing the political and economical connec- tions between the developing countries themselves. The observed differentiation within the Third World, it- self a consequence of the ongoing restructuring of the inter- national division of labour, have resulted in the creation of new economic and political linkages. In important areas the NIC-countries have taken over, or more correctly, are beginning to take over the traditional role of the developed countries as suppliers of industrial products and also industrial technology. Brazil and India are good examples of countries that has started to redirect their trade and capital flows according to this new pattern. The implications of this changing contact pattern, parti- culary its developmental effects, have not yet been subject to extensive research. In order to provide an opportunity to discuss the perspectives of this new development, the Scandinavian Institute of African Studies organized a seminar on "The Emergence of South-South Relations in a Changing World Order", which was held 17-20 May, 1981, in Kungalv, Sweden. The seminar was devoted to a discussion and identi- fication of some of the more important problem areas involved in this area of research. On the basis of papers presented at the seminar and the ensuing discussions, the articles collected here pays particular attention to the driving forces behind the emergence of South-South relations and the developmental effects they might create. While analysing the emergence of South-South relations within the framework of a new international division of labour, Carlsson argues that as long as South-South relations take place between parties on different levels of development, it is very likely that the developmental effects arising from such a relation will be no different from the ones charac- terizing the traditional North-South contacts. Hoffman provides an empirical investigation of a parti- culary dynamic case of South-South trade. The development of trade between Brazil and Nigeria has been very rapid in a relatively short time. The trading pattern follows the lines suggested by the Heckscher-Ohlin theorem. It is a comple- mentary trade where Nigerian raw materials (petroleum) is exchanged for Brazilian manufactured goods. In the article by Tom Forrest this particular South- South relation is further analysed. The political motives and implications of Brazil's increasing contacts with not only Nigeria, but also Africa in general are highlighted. Forrest identifies the major driving forces behind Brazil's increasing penetration of Nigeria. The analysis stresses the primary importance of this penetration for the Brazilian accumulation process. Nigeria's position in this expanding South-South relation is discussed by Joy Oqwu. Her analysis brings out the politi- cal considerations involved and particulary Nigeria's hesita- tion to develop the relation further. Nigeria's cautious attitude is largely influenced by certain aspects of Brazil's foreign and domestic policies, while at the same time questioning the economic benefits to be gained by Nigeria. Among the South countries actively promoting contacts with other developing countries, India occupies a prominent position. La11 discusses this external expansion by taking as his point of departure the rise of Third World multinatio- nals. India's expansion into the South is largely dictated by specific interests of the very large Indian corporations. Internal developments in India and the economic policies designed by Indian Governments have played an important part in promoting this expansion. The external drive of Indian multinationals encompasses not only trade, but also an extensive list of consulting activities, direct investments and technology exports. La11 provides an in-depth analysis of the forms of this external penetration by analysing the structural characteristics of the Indian multinationals. Specific research on South-South relations is yet in its infancy. The articles presented in this book have tried to highlight and explore some of the central issues involved. Hopefully, they will serve the purpose of stimulating further research of a phenomena which is of great importance for the future development of the South. * Jerker Carlsson THE EMERGENCE OF SOUTH-SOUTH RELATIONS IN A CHANGING WORLD ECONOMY During the 1970's the world economy has experienced changes that can be expected to continue in the future and in a fundamental way change the basic structure of the international economic system. One of the most interesting aspects of this process of change is the gradual substitution of the tradi- tional, bipolar division of the world - with its two parts, a centre and a periphery - for a new division, where the addition of a third, middle category - sometimes called semi- periphery - has been a most distinguishing feature. The emerg- ing international system has taken a shape that best can be described as tripolar. The appearance of a semi-periphery expresses a growing hierarchization of the South. This process has accelerated during the last 10-15 years and constitutes one of the most noteworthy features of the emerging new world economy." In a parallell process to this tripartite division of the world, we can notice an increase in the political and particulary the commercial contacts between the economies in the South. Commercial contacts, established by trade and capi- tal flows, were very modest during the traditional division of labour. The then persisting international economy was based on North-South contacts and largely excluded extensive relations within the South. However, it is yet a bit prema- ture to state that these types of South-South relations have assumed great proportions. As yet they have generally not, but there is a clearly visible trend towards increased con- tacts between particular countries in the South. * Researcher at the Department of Economic History, University of Goteborg, Sweden. The research for this article was carried out within the project "The Brazilian Penetration of the Nigerian Economy, 1970-1981". These features of the ongoing transformation of the world economy - increasing South-South relations and the hier- archization of the periphery - can not, as it will turn out, be analytically separated. An analysis of the causes behind the establishment of South-South relations must be carried out within the framework of a general analysis of the elements of the process of restructuration of the international eco- nomy. Within this perspective the purpose of this essay can be outlined as follows: - To investigate into the causes behind the formation of a semi-periphery in the world economy. - To investigate into the motives of the parties to engage themselves in a South-South relation. - To investigate into the dominant features of the present South-South contacts, by examining the nature of the trade and capital flows that have taken place. As we continue with the first task - the causes behind the formation of a semi-periphery - we shall also be in the posi- tion to elaborate a little on something that can be called a theoretical perspective. The Formation of a Semi-Periphery The logics of a semi-periphery in the international economy contains primarily two aspects.
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