Global South Economic Rise: UNCTAD Project Aims to Boost Sustainable Development Through Policy Research and South-South Cooperation

Developing nations now generate approximately 40 percent of global output, conduct 44 percent of international trade, and attract 58 percent of foreign direct investment inflows, according to 2024 data. This structural shift, unfolding over the past three decades, has fundamentally altered the architecture of the world economy. The Global South is no longer a passive recipient of external forces but an active engine of growth and innovation. To help these countries navigate the complexities of sustainable development, the United Nations Conference on Trade and Development (UNCTAD) has launched a new project—INT/0T/NBF (2024–2028)—funded by China. Combining policy research, knowledge transfer, and peer learning, the initiative aims to equip developing nations with tailored strategies to overcome binding constraints in achieving the Sustainable Development Goals (SDGs).

[IMAGE: Infographic showing the rise of Global South share in global GDP, trade, and FDI over the last 30 years. Use line graphs with three trend lines: GDP (blue), trade (green), FDI (orange). Source data: UNCTAD 2024.]

The New Economic Landscape of the Global South

South-South merchandise trade has surged to over one-quarter of the world total, yet this growth masks significant regional disparities. While Asian developing economies have integrated rapidly into global value chains, parts of Africa and Latin America remain on the periphery. This uneven integration reveals both opportunities and structural vulnerabilities. The rise of the Global South challenges the traditional North-South dependency model that dominated late twentieth-century economic thinking. It creates new space for policy innovation, enabling countries to pursue development paths that are less constrained by the preferences of traditional donor nations.

The economic transformation is visible across multiple dimensions. Intra-developing-country investment flows now account for a substantial share of global capital movements. Technology transfer among emerging economies is accelerating, particularly in digital services and renewable energy. Trade in intermediate goods within the Global South has deepened supply chain linkages, reducing reliance on Northern hubs. These trends suggest that the Global South is building its own economic ecosystem—one that offers alternative routes to industrialization and poverty reduction.

However, the challenge of sustainable development persists. Many Global South nations face severe fiscal constraints, infrastructure gaps, and institutional weaknesses. The COVID-19 pandemic and subsequent global shocks have exacerbated debt burdens and limited policy space. The SDGs remain distant targets for many countries, particularly those in sub-Saharan Africa and small island developing states. It is within this context that UNCTAD’s new project seeks to make a difference.

UNCTAD’s Strategic Response: Project INT/0T/NBF

Launched with a budget of $260,000 for the period 2024–2028, Project INT/0T/NBF is modest in financial scale but ambitious in scope. Funded entirely by China, the project targets Global South countries to devise better policy strategies through three interconnected pillars: research, knowledge transfer, and peer learning.

The research component focuses on emerging policy issues that directly affect sustainable development, such as the impact of digital trade rules on developing-country industries, the role of industrial policy in green transitions, and the effects of global supply chain restructuring on employment and inequality. Researchers will produce a series of working papers, policy briefs, and analytical reports designed to inform decision-makers.

Knowledge transfer activities include the organization of capacity-building workshops, training sessions for government officials, and the development of online tools for data analysis. These efforts are intended to strengthen the ability of national institutions to design, implement, and evaluate development strategies.

Peer learning is facilitated through regional and global forums where policymakers from different developing countries can exchange experiences, discuss common challenges, and co-create solutions. The project also supports the establishment of South-South knowledge networks that can outlast the project’s lifetime.

The intended outcomes are clear: enhanced understanding of the binding constraints on SDG achievement in evolving national and international dynamics, and improved capacities to formulate and implement customized development strategies that reflect each country’s unique circumstances.

[IMAGE: Flowchart of project activities: research → knowledge transfer → peer learning → policy outcomes. Arrows show feedback loops. Icons for documents (research), classroom (knowledge transfer), handshake (peer learning), and target (policy outcomes).]

The Role of China and South-South Cooperation

China’s funding of Project INT/0T/NBF is not an isolated gesture. It aligns strategically with SDG 8 (decent work and economic growth), SDG 9 (industry, innovation, and infrastructure), SDG 13 (climate action), and SDG 17 (partnerships for the goals). This alignment underscores a broader push by Beijing to position itself as a champion of inclusive, sustainable development within the Global South.

As the largest emerging economy, China’s involvement signals a shift from traditional aid paradigms to co-development models that prioritize mutual learning, customized approaches, and respect for national ownership. Rather than imposing one-size-fits-all conditionalities, the project emphasizes the exchange of experiences among developing countries themselves. This approach resonates with the principles of South-South cooperation, which are based on equality, solidarity, and non-interference.

The project’s explicit focus on South-South trade and intra-BRICS dynamics reflects a larger trend: the Global South is increasingly building its own economic and policy architecture. BRICS—Brazil, Russia, India, China, South Africa, and new members—represents a significant platform for this endeavor. Trade among BRICS nations has grown more than tenfold in value over the past two decades, and their combined share of global GDP now exceeds that of the G7 in purchasing power parity terms. The project’s research agenda directly engages with these dynamics.

[IMAGE: World map highlighting China’s development partnerships across multiple Global South countries, with BRICS nations (Brazil, Russia, India, China, South Africa, Egypt, Ethiopia, Iran, UAE) marked in distinct colors. Connectivity lines represent project funding flows and trade corridors.]

Deep Dive: Intra-BRICS Trade as a Case Study

A key reference document for the project is titled Two decades of intra-BRICS trade: Trends, patterns and policies (UNCTAD/TCS/GDS/INF/2025/2, 5 March 2026). This empirical study provides comprehensive evidence on how BRICS members have deepened their trade relationships despite global headwinds such as trade wars, the pandemic, and geopolitical tensions.

The analysis covers sectoral shifts, revealing that intra-BRICS trade has moved beyond raw materials and agricultural commodities. Manufacturing and services—particularly digital services, financial services, and technology products—now account for an increasing share. Tariff patterns have evolved, with several members reducing barriers within the group through bilateral and multilateral agreements. Policy harmonization efforts, such as mutual recognition of standards and simplified customs procedures, have further facilitated cross-border commerce.

However, the study also highlights persistent asymmetries. China remains the dominant trade partner within BRICS, accounting for over half of intra-group trade flows. Smaller members often face structural disadvantages, including limited export diversification and logistics bottlenecks. The project uses this analysis as a blueprint for developing targeted interventions that can address these imbalances. For example, capacity-building workshops on trade facilitation technologies could help less-advanced members integrate more effectively.

The intra-BRICS case study is not merely academic. It offers a data-driven roadmap that can be adapted by other South-South trading blocs—such as the African Continental Free Trade Area (AfCFTA), ASEAN, and Mercosur—to accelerate their own economic integration and sustainable development.

[IMAGE: Line chart showing intra-BRICS trade value from 2005 to 2025, broken down by sector (primary goods, manufactured goods, services). Source: UNCTAD document, 2026.]

Implications for Global Supply Chains and the SDGs

The rise of the Global South and the parallel deepening of South-South cooperation are reshaping global supply chains in ways that have direct implications for sustainable development. As developing countries become major producers and consumers, supply chain geography shifts away from traditional North-South corridors. This presents both opportunities and risks.

On the opportunity side, shorter supply chains within the Global South can reduce transportation costs, lower carbon emissions, and build resilience against disruptions. Regional value chains can foster industrialization and job creation in countries that have historically been limited to commodity exports. The project’s emphasis on policy research and peer learning helps governments design strategies that capture these benefits while avoiding environmental degradation and labor exploitation.

On the risk side, rapid economic integration without adequate regulatory frameworks can lead to tax competition, weak labor standards, and environmental damage. The project aims to mitigate such risks by promoting evidence-based policy-making and sharing best practices in areas such as green industrial policy, digital governance, and social protection.

Ultimately, the long-term success of Project INT/0T/NBF will depend on its ability to generate concrete improvements in the lives of people in the Global South. Customized development strategies, informed by data and grounded in local realities, offer a more promising path than blueprint models borrowed from elsewhere. South-South cooperation, when supported by rigorous research and genuine peer exchange, can unlock the potential of the Global South to achieve the SDGs on its own terms.

As the world heads toward the midpoint of the 2030 Agenda, initiatives like this one represent a pragmatic yet visionary approach to global development. They recognize that the economic rise of the Global South is not just a statistical trend—it is a fundamental reordering of the global economy that must be managed with intelligence, fairness, and foresight.

[IMAGE: World map with glowing nodes (major cities in Global South) connected by lines representing trade, capital, and knowledge flows. Subtle overlay of SDG icons 8, 9, 13, and 17 in faded tones. Warm earth tones and blues. No text.]