G20 Summit, September 2016 The 2016 Hangzhou G20 Summit: Has China Signalled a New Era of South-South Development Cooperation? Garrett Wallace Brown Department of Politics, University of Sheffield International Media Centre – G20 on the need to promote increased ‘South- Hangzhou Summit. When examining the South’ relations as part of a more effective literature on global development you will global development strategy. quickly find the phrase ‘South-South’ Development was certainly a highlighted development and cooperation. In basic feature within the pre-published G20 terms, the notion of South-South agenda, where it occupied the first and development relates to the idea that second position on China’s ten point increasing collaboration, cooperation and agenda. It subsequently received strong knowledge sharing between countries in and immediate promotion by Xi Jinping, the ‘Global South’ leads to more who made explicit references to ‘South- development. Although the definition of South’ cooperation as a key driver for what countries should be considered as global development and as a means ‘to part of the Global South lacks analytical break a new path for growth’. exactness, in general terms, the signifier ‘South’ is meant to denote non-Western In particular, Xi used his opening speech for ‘developing countries’ who are primarily the B20 the day before the G20 as a located in the southern hemisphere. platform to stress the need for what he termed as a more ‘equitable’, ‘fair’ and One interesting development of the ‘just’ development strategy. Moreover, Xi Hangzhou G20 Summit has been the emphasized the need to create ‘win-win’ emphasis placed by the host country China outcomes for developing countries G20 Summit, September 2016 through innovative strategies which As a concept, the promising features of promote more inclusive and participatory ‘South-South’ cooperation are the policies that can foster better ‘South- objective of enhancing the capacity of South’ exchange and mutual cooperation. developing countries to find their own development solutions, opening South-South cooperation and communication channels between the development can be understood as ‘a ‘South’, exchanging best practices, sharing manifestation of solidarity among peoples technical resources, formulating collective and countries of the South that contributes strategies, pooling resources and to their national well-being, their national diplomatic efforts, improving effectiveness and collective self-reliance and the through knowledge exchange, attainment of internationally agreed strengthening economic integration, development goals, including the increasing participation in international Millennium Development Goals’ and now economic activities, and strengthening the the Sustainable Development Goals voice and bargaining power of developing (SDGs). As the United Nation’s official countries in multilateral negotiations. statement on the concept suggests, ‘the According to advocates of ‘South-South’ South-South cooperation agenda and cooperation, the concept holds the South-South cooperation initiatives must promise to reduce the reliance of be determined by the countries of the developing countries upon existing South, guided by the principles of respect financing structures led primarily by the for national sovereignty, national ‘Global North’. By doing so, it is often ownership and independence, equality, argued that this can help break the cycle of non-conditionality, non-interference in financial dependency of the ‘Global South’ domestic affairs and mutual benefit.’ on the ‘North’ and reduce the power dynamic inherent to this relationship. This in turn would allow for a more equitable G20 Summit, September 2016 distribution of prosperity, control and, a record number of non-G20 developing ultimately, power. countries to participate in the summit, again signaling a want to establish a more Although the idea of ‘South-South’ inclusive discussion on key matters of cooperation has been referred to before in global policy. Fourth, Xi used the example G7/8 and G20 documents, and has of China’s development as a way to start a underwritten a number of United Nations dialogue about ‘South-South’ learning and Development Programme (UNDP), World gave clear signals about the need to Bank and multilateral development strengthen new development financing strategies, the preliminary stress placed alternatives such as the Asian upon this form of cooperation at the 2016 Infrastructure Investment Bank (AIIB) and G20 Summit is in many ways the BRICS led New Development Bank unprecedented. For one, nearly all of Xi’s (NDB). If followed through with action, opening B20 speech and G20 agenda was then China’s backing of increased ‘South- couched within statements about more South’ cooperation and its equitable sustainable development and institutionalization within global called for the creation of a new form of governance structures could signal a new economic strategy that can move beyond era of global development. current pro-growth mantras. Secondly, Xi placed the SDGs at the heart of the G20 However, the final communiqué released Summit, effectively solidifying the by the G20 leaders in Hangzhou did not ideational place of the SDGs as the master deliver the robust and unequivocal concept from which to measure language triggered in Xi’s opening B20 development. This act not only creates an speech. In fact, the final language within official link between the SDGs and the G20 the communiqué remained vague and agenda moving into the future, but in overly normative without clear action doing so, also links the SDGs to the 85 to plans for how to make development policy 90% of world GDP represented by the G20 more inclusive or how more equitable member states. Third, China as host invited development could be secured through G20 Summit, September 2016 clear governance mechanisms. In addition, behind’ was stressed in a number of key although a commitment to ‘exploring ways paragraphs within the communiqué. to develop North-South, South-South and Although it might be possible to dismiss triangular cooperation’ was articulated these words as merely the usual G20 within the communiqué, the details rhetoric, it is important to remember that remained scant, with reference made only words do matter and that there are many to the still to be determined G20 Initiative examples of how norms diffuse in ways on Supporting Industrialization in Africa that often underwrite international law in and LDCs. As a result, as has been the case uniquely powerful and unforeseen ways. for former G20 Leader Summit outcomes, As a result, the mere fact that China has the fruitfulness of these decisions will have been successful in getting a level of G20 to wait to be seen. normative agreement on examining new ways to think about global economics and Nevertheless, it would be churlish to development holds promise. suggest that the above fully signals that ‘South-South’ development cooperation It is also important to understand that has been effectively sidelined. This is many of the other economic objectives because the communiqué does launch the presented by the host country China can new G20 Initiative on Supporting advance global development as well as Industrialization in African and LDCs, which ‘South-South’ cooperation. For example, a at least provides some additional focus clear success of the Hangzhou Leaders that offers the potential to significantly Summit was the adoption of the ‘Hangzhou alter the development lexicon. In addition, Consensus.’ As mentioned above, this the initiative also provides new advocated increased cooperation, mutual governance processes where ‘South- benefit, global knowledge transfers, South’ cooperation could be enhanced. collaborative innovation and inclusive Furthermore, the language of governance as part of global efforts to ‘inclusiveness’ and better distributive drive new growth. As part of this, the G20 development that will ‘leave no one agreed that the World Bank Group would G20 Summit, September 2016 ‘implement its shareholding review development and ‘South-South’ according to the agreed roadmap, cooperation. For one, the G20 has a history timeframe and principles, with the of making vague normative statements objective of achieving equitable voting that don’t play out in practice. Thus, the power over time.’ If actually broadened, real test of the communiqué will be in how then this would represent a significant the agreed initiatives come to pass in terms departure from traditional World Bank of financial commitments, political governance, which could help to make engagement and compliance. Moreover, inroads for more inclusive and although key normative language is used, representative global development and welcomed, the role of ‘South-South’ financing. Lastly, the G20 embedded the cooperation was not greatly expanded SDGs as a master concept in the discussion upon in terms of how to facilitate this form on economic growth as well as of cooperation. Thus, it remains a stated development specifically. As suggested vehicle for greater development equity above, this normative commitment is a and self-determination, but continues to good signal in terms of long-term SDG lack detail. In this regard, the concept commitments and thus could signal a more represents an ambition and aspiration of invigorated stance to ensure that the the Chinese host and those who already failures of the MDGs are not repeated. champion ‘South-South’ cooperation, but Since