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Figure 5.1 Under the accelerated progress scenario, the largest projected increases in the Human <strong>Development</strong> Index are in Sub-Saharan Africa and South Asia Arab States East Asia and the Pacific Europe and Central Asia Latin America and the Caribbean South Asia Sub-Saharan Africa 0.0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 2010 65% 28% 47% 24% 18% 16% HDI 2050 (projected) Note: See chapter 4 for discussion of the accelerated progress scenario. Source: HDRO calculations based on Pardee Center for International Futures 2013. Figure 5.2 Allocating a small fraction of the international reserves of the nine G20 countries of the South could provide substantial additional resources for public investment in infrastructure in Sub-Saharan Africa and South Asia Additional resources for public investment ($ billions) 140 52.8% rise (4.1% of GDP) 120 100 80 60 40 20 0 17.6% rise (1.4% of GDP) 35.2% rise (2.7% of GDP) 1% 2% 3% Share of reserves allocated Note: Numbers in parentheses are the increase in public investment as a share of GDP. Source: HDRO calculations based on World Bank (2012a). countries is financially attractive, allowing them to diversify while gaining higher profits without added risks. 45 Sovereign wealth funds have long investment horizons and low risk of redemption, enabling them to make longterm investments. Since many give priority to social over private returns, they can also take socially responsible positions. For example, Norway has applied global sustainability criteria to its sovereign wealth fund investments through the Norges Bank Investment Management, committing to the UN Global Compact Norms and investing in initiatives to reduce deforestation in Guyana, Indonesia and Tanzania. 46 The governance challenge is to operationalize socially responsible investment, define suitable benchmarks and provide sovereign wealth funds easier access to investments with a high human development impact. 47 Institutions from the South, ranging from the BRICS Bank to the Chiang Mai Initiative Multilateralization to the African Union, have considerable potential to influence international governance. Collective action requires a shared vision. The premise for this vision cannot be taken for granted. The proliferation of regional and other arrangements shows that governments recognize the benefits of, and have a commitment to, collective development. A new South Commission In 1987, leaders of the Non-Aligned Movement established the South Commission to explore policy options and areas for cooperation for the countries of the South. Its final report in 1990, The Challenge to the South, produced under the leadership of Julius Nyerere, then-president of Tanzania, and the economist Manmohan Singh, future prime minister of India, was a seminal and prescient analysis. 48 It identified climate change as a priority and underscored challenges that stubbornly persist today, such as poverty, social exclusion and the widening gap between rich and poor. 49 Equally important, the South Commission looked closely at the then-emerging possibilities of greater South–South cooperation in aid, trade and other aspects of international policymaking. 118 | HUMAN DevELOPMENT REPORT 2013
The world and the South have been thoroughly transformed over the past two decades. The South of the 21st century is led by fast-growing economies with trillions of dollars of foreign exchange reserves and trillions more to invest outside their borders. Businesses from the South number among the world’s largest. The possibilities for collective action have never been greater; however, agreement on this cannot be taken for granted. The institutions for South–South co operation—the Group of 77, the Non- Aligned Movement and South Summits— were forged in the crucible of decolonization, which created strong political, economic, social, and cultural bonds among the emerging countries of the developing world. That formative experience is increasingly distant from the current generation, and the commitment to South solidarity common to their elders is in many cases now giving way to the pursuit of national interests. The new realities of the 21st century require a fresh look at these issues and at institutions led by the countries of the South themselves. A new South Commission, building on the legacy of the first commission but reflecting the strengths and needs of the South today, could provide a fresh vision, based on recognition of how the diversity of the South can be a force for a new kind of solidarity, aimed at accelerating human development progress for decades to come. The economic links within the South and the mutual benefits of cooperation are likely to provide further incentives to establish such a body. Conclusions: partners in a new era The rise of the South has to some extent caught the world by surprise. The previous, if unspoken, assumption was that developing countries would steadily approach the standards of human development in industrialized countries (“convergence”) but that the industrialized countries would remain in a strong, leading position. In many respects, that is still the case: average HDI values are substantially lower in many countries of the South. What has caught the world unawares, however, is that even at lower levels of human development, the countries of the South are now weighty players on the global stage, with the financial resources and political clout to sway international decisionmaking. This was already evident during the early years of the 21st century, as China and other emerging economies accumulated vast reserves, which they held as US Treasury bonds, effectively propping up the US dollar. But the situation came into sharper relief after 2008, following the banking crisis and subsequent economic shocks that pushed some of the richer countries into recession and threatened the survival of one of the world’s major currencies. Now the countries of the North are looking to those of the South to keep the global economy moving forward. In practice, each group of countries needs the other more than ever. The North needs the most vigorous countries of the South to sustain demand for exported goods and services, especially as a number of their own economies and societies are weakened by fierce austerity programmes. The South needs the North not only as a mature market, but also as a source of innovation and complex technologies. The rise of the South demonstrates that the world has become more diffuse and crossconnected. One consequence is that rather than looking to the North for inspiration, developing countries are looking to their peers in the South for appropriate development models. Here, rather than seeing a sterile menu of ideological options, they can examine what has worked, under what circumstances, and choose the most appropriate tools. Chapter 3 provided examples of programmes and policies that have worked to improve human development in emerging economies of the South, from investments in public health and education to conditional cash transfer programmes. Such examples can inspire similar policies in other countries, but with understandings of specific national conditions, institutions and needs. This Report has summarized some of the most effective drivers of development: a proactive developmental state, the capacity to tap into global markets and the promotion of social inclusion and broad-based human development. Within each of these there are multiple options but no universal solutions. rather than looking to the North for inspiration, developing countries are looking to their peers in the South for appropriate development models Chapter 5 Governance and partnerships for a new era | 119
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W N S E Human Development Report 20
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Human Development Report 2013 The R
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Human Development Report 2013 Team
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Finally, the Report also calls for
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Musa, Thangaval Palanivel, Anuradha
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3.6 India’s Supreme Court issues
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Overview One of the most heartening
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Human Development Report also stres
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sudden opening but of gradual and s
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two scenarios for 2010-2050: a base
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messages and demands challenge gove
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Introduction When developed economi
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leading economies—Brazil, China a
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comparable access to information, e
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mobile phones: cellular banking is
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“The political problem of mankind
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Box 1.1 Fairness, macroeconomics an
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Box 1.3 Amartya Sen, Nobel Laureate
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Figure 1.1 Income per capita is ris
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Box 1.4 Subjective indicators of we
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Figure 1.4 There is notable variati
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Figure 1.6 Most regions show declin
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Progress in human development achie
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Box 1.7 Social competencies: human
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Table 1.3 Inequality and satisfacti
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Not all countries have the precondi
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“When the music changes, so does
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Box 2.1 The South’s integration w
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Figure 2.1 As a share of world merc
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Box 2.2 Acquisitions by the South o
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Figure 2.3 Between 2000 and 2010, I
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Figure 2.4 Export earnings per capi
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Box 2.6 Final assembly is about mor
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Instead of having a centre of indus
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Figure 2.6 Emerging market economie
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developing countries trade more amo
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“We cannot expect that all nation
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Table 3.1 Selected developing count
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A common feature of countries that
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Page 137 and 138: Notes Overview 1 Atsmon and others
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Page 141 and 142: which is 61.7 deaths per 1,000 live
Page 143 and 144: References Abdurazakov, A., A. Mins
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Core features of the model pertinen
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Countries and HDI ranks in 2012 and
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E N S W - United Nations Development Programme

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