Human Development Report 2013 - UNDP

The unprecedentedaccumulation of financialreserves provides anopportunity to acceleratebroad-based progressNetworks of civil society now take advantageof new media and new communicationstechnologies. Yet civil society organizationsalso face questions about their legitimacy andaccountability and may take undesirable forms.Nevertheless, the future legitimacy of internationalgovernance will depend on institutions’capabilities to engage with citizen networksand communities.Priorities for a new eraThrough all this, the fundamental principles ofhuman development remain critical. As ever,the aim is to expand choices and capabilities forall people, wherever they live. Many countriesof the South have already demonstrated whatcan be done. But they have gone only part ofthe way. For the years ahead, this Report suggestsfive broad conclusions.Rising economic strength in theSouth must be matched by a fullcommitment to human developmentInvestments in human development are justifiednot only on moral grounds, but alsobecause improved health, education and socialwelfare are key to success in a more competitiveand dynamic world economy. In particular,these investments should target the poor—connecting them to markets and increasingtheir livelihood opportunities. Poverty is aninjustice that can and should be remedied bydetermined action.Good policymaking also requires a focus onenhancing social capacities, not just individualcapabilities. Individuals function within socialinstitutions that can limit or enhance theirdevelopment potential. Policies to changesocial norms that limit human potential, suchas gender discrimination, early marriages anddowry requirements, open up opportunities forindividuals to reach their full potential.Less developed countries can learnand benefit from the success ofemerging economies of the SouthThe unprecedented accumulation of financialreserves and sovereign wealth funds in both theNorth and South provides an opportunity toaccelerate broad-based progress. A small portionof these funds should be dedicated to humandevelopment and poverty eradication. Atthe same time, South–South trade and investmentflows can leverage foreign markets in newways that enhance development opportunities,such as by participating in regional and globalvalue chains.Burgeoning South–South trade and investmentin particular can lay the basis for shiftingmanufacturing capacity to other less developedregions and countries. Recent Chinese andIndian joint ventures and startup manufacturinginvestments in Africa could be a prelude toa much expanded force. International productionnetworks provide opportunities to speeddevelopment by allowing countries to leap-frogto more sophisticated production modes.New institutions can facilitateregional integration andSouth–South relationshipsNew institutions and partnerships can helpcountries share knowledge, experiences andtechnology. This can be accompanied by newand stronger institutions to promote trade andinvestment and accelerate experience sharingacross the South. One step would be to establisha new South Commission to bring a freshvision of how the South’s diversity can be aforce for solidarity.Greater representation for the Southand civil society can accelerateprogress on major global challengesThe rise of the South is leading to a greaterdiversity of voice on the world stage. Thispresents an opportunity to build governanceinstitutions that fully represent all constituenciesand that would make productive useof this diversity in finding solutions to worldproblems.New guiding principles for internationalorganizations are needed that incorporate theexperience of the South. The emergence of theGroup of 20 is an important step in this direction,but the countries of the South also needmore equitable representation in the Bretton8 | HUMAN DEVELOPMENT REPORT 2013