2013 Vol13-No1

The European Journal of Management and Public Policy VOLUME 13 • No.
1 (2013)
VOLUME 13 • No.1 (2013)
issn 1726-6475
EUROPEAN CENTER FOR PEACE AND DEVELOPMENT EUROPEAN CENTER FOR PEACE AND DEVELOPMENT
UNIVERSITY FOR PEACE ESTABLISHED BY THE UNITED NATIONS
TheEuropean
Journal
of Management
andPublic
Policy
VOLUME 13 • No.1 (2013)
issn 1726-6475
C ontents
Project Note 1
Introduction 3
Boutros Boutros Ghali Letter of Invitation 6
Idriss Jazairy Opening Remarks 8
An Chen, Fan Yang From a Perspective of International Economic Law

With Chinese Characteristics 20
Abdlatif Al-Hamad Contribution to the Group 77 50th Anniversary 64
Paolo Acanfora The Global South in the New International Disorder:

the Idea of a Shared Society 67
Idriss Jazairy In Defence of Special Procedures of The Human Rights

Council: an Alternative Narrative from the South 71
Ismail Serageldin The Next Half Century 78
Branislav Gošović South-South Cooperation: An Opportunity for South

to Change the World Economic and Political Order 86
Raoul Weiler, Timi Ećimović The Nature of the Planet Earth and New
Sciences of Networks and Complexity 97
Kemal El Shairy Course of Oil – The Libyan Case 102
published by:
EUROPEAN CENTER FOR PEACE AND DEVELOPMENT

European Journal of Management and Public Policy
Academic Journal and Professional Forum on Interface between Business and Society
Published by the European Center for Peace and Development
of the University for Peace established by the United Nations
For the Publisher: Prof. dr Negoslav P. Ostojić, ECPD Executive Director
issn 1726-6475
Editor ŽELJKO ŠEVIĆ, Ph.D.
(London) Professor of Accounting, Finance and Public Policy
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European Center for Peace and Development
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The European Center for Peace and Development (ECPD) is a regional, international and research organization. The ECPD represents a unique in-
stitution in Europe and has special significance to countries of South-Eastern Europe. The ECPD was established in 1985, with the main tasks and
objectives “to organize and carry out postgraduate studies, research projects and dissemination of knowledge, which contribute to the promotion
of peace, development and international cooperation”. Following its mission defined in its Statute, the ECPD ”…brings together the intellectual po-
tentials from all parts of the world for the benefit of implementation of the programs of education and research project devoted to the fulfillment
of the ECPD aims and objectives”. Dr. Simonida Marjanovic, Ambasador Paul-Marc Henry (long serving UN Under-Secretary Genaral and Presi-
dent of the OECD Development Center) and Dr. Pierre Maries-Gallois served as president, while Professor Norman Scott CMG, Professor Shinichi
Ichimura and Professor Takehiro Togo chaired the ECPD Council.
The Basic tasks and objectives of the ECPD have been incorporated into its program structure, which feature:
(A) Studies leading to postgraduate degrees and specialist training in Management, European Union, European Union Law and International Busi-
ness Law, Diplomatic Studies, Banking and Finance, Sustainable development issues,
(B) Interdisciplinary research on sustainable development issues, regional development, multicultural, multi-confessional and inter-ethnic relations
and international relations;
(C) Organizing international meetings, conferences, round tables, symposia, and workshops on topical issues from its programme;
(D) Publishing conference, proceedings, professional and scientific texts, research papers, case-studies, textbooks, etc.
The ECPD organizational structure is based on its Executive Staff, consisting of the Executive Director and the ECPD Secretariat as well as profes-
sors core and expert team. The ECPD Executive Director represents the ECPD in public, national and international organizations, coordinates the
ECPD activities and manages the ECPD Secretariat.
In focusing its activities on education and research that foster sustainable development and the promotion of peace, the ECPD has a very well-de-
veloped educational network in various countries, a number of research units and an extensive publication program (with more than 200 books
published).
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Editorial Board
EDITORIAL BOARD
Negoslav Ostojić, President of the Board, ECPD Mervyn K. Lewis, University of South Australia,
Executive Director Australia
Ljubiša Adamović, Florida State University, Jonathan R. Macey, Yale University, US
Montenegrin Academy of Sciences and Arts,
Montenegro Susan Martin, University of Michigan, US
Blaise Allaz, Haute Ecole de Commerce, France Robert W.McGee, Barry University, US
David Amborski, Rayerson University, Canada Jeffrey B. Miller, University of Delaware, US
Jürgen G. Backhaus, Erfurt University, FR Lucia Miree, University of New England, US
Germany
Lawrence E. Mitchell, George Washington
Frantz F. Butynets, Zhytomyr Technical State University, US
University, Ukraine
Philip O’Hara, Edith Cowan University, Australia
Anto Bajo, Institute of Public Finance, Croatia
Nickolay Nenovsky, Bulgarian National Bank,
Roberta Benini, NOMISMA, Italy
Bulgaria
Peter Boorsma, University of Twente, the
Netherlands Barry Pettman, Hull, England
Jonathan Bradley, University of West England, Geodfrey Pirotta, University of Malta, Malta
England Christopher D. Rogers, University of Dundee,
Philip J. Bryson, Bingham Young University, US Scotland
Prodromos Chatzoglou, University of Xanti, Joshua Ronen, New York University, US
Greece
Alexander Russell, Glasgow Caledonian
Mark Chandler, Stockholm School of Economics University, Scotland
in Riga, Latvia
Vlado Kambovski, Macedonian Academy of
Boris Cizelj, SBRA, Belgium
Sciences
Enrico Colombatto, University of Turin, Italy
Mark Saunders, Oxford Brookes University,
Patrick Dawson, University of Aberdeen, England
Scotland
Ron Singleton, Western Washington
Jayesh Dahya, Baruch College, US
University, US
Tran Dat, National Economics University,
Vietnam Hideaki Shiroyama, University of Tokyo, Japan
Mieczyslav Dobija, Krakow University of Jan Smolarski, University of Stockholm , Sweden
Economics, Poland Branislav Šoškić, Montenegrin Academy of
Michael Drew, Queensland University of Sciences, Montenegro
Technology, Australia Vladimir Stipetić, Croatian Academy of Science,
Eva Eberhartinger, Vienna University of Croatia
Economics and Business Administration, Austria
Shyam Sunder, Yale University, US
Gabor Peteri, LGI Development, Hungary
Hideaki Tanaka, Ministry of Finance, Japan
Tauno Kekäle, VAMK University, Finland
G. Roland Kaye, University of East Anglia, Metka Tekavčič, University of Ljubljana, Slovenia
England Jean Tesche, US Treasury, US
David M. Kemme, University of Memphis, US Richard Thorpe, University of Leeds, England
Herbert Kotzab, Copenhagen Business School, Roland Tuninga, Maastricht School of
Denmark Management, the Netherlands
Chandrasekhar Krishnamurti, Monash
Tony Verheijen, The World Bank, US
University, Australia
Kenneth Kriz, University of Guglielmo M. Volpe, London Metropolitan
Nebraska-Omaha, US University, England
Yoji Koyama, Niigata University, Japan Markéta Vylitová, Mercer, Chech Republic
John R. Lampe, University of Maryland, US Bruce Webber, London Business School, England
Project Note
ECPD International Round Table on
the Global South: 50 and Beyond?
Following its 2013 Conference, ECPD organized a round table on “Whither the global
South in the 21st Century”. Following a very interesting exchange, it was decided to in-
vite additional views and opinions and thus initiate a broader discussion on this impor-
tant topic. Based on this decision, the Chairman of the ECPD Honorary Council, Dr.
Boutros Boutros Ghali, wrote a letter to a large number of personalities and experts in
the South and to several institutions, seeking their reflectiona and inputs. A copy of this
letter is attached.
He letter was accompanied by a background note, the next of which follows:
The Group of 77 celebrates its 50 years in 2014; the Non-Aligned Movement

celebrated its 50 years in 2011. The two twin groupings of the developing
countries represent an important factor in the world arena. As they embark
on the second half of the century of their existence and activity, it is impor-
tant to ponder on the nature and prospects of the Global South, and on the
challenges and opportunities it will face in the coming period.
The South Commission, in its report The Challenge to the South, launched in
1990, noted that:
“The countries of the South vary greatly in size, in natural resource endowment,
in the structure of their economies, in the level of economic, social, and techno-
logical development. They also differ in their cultures, in their political systems,
and in the ideologies they profess. Their economic and technological diversity
has become more marked in recent years, making the South of today even less
homogenous than the South of yesterday.
Yet in this diversity there is a basic unity. What the countries of the South have
in common transcends their differences; it gives them a shared identity and a
reason to work together for common objectives. And their economic diversity
offers them opportunities for co-operation that can benefit them all.”
The Commission went on to identify some of the bonds that linked the coun-
tries of the South and were the basis of their solidarity expressed at the global
level by the Group of 77 and the Non-Aligned Movement, including:
• “their desire to overcome poverty and underdevelopment and secure a better
life for their citizens”;
• the fact that they “are unfavourably placed in the world economic system”
and that“they are individually powerless to influence these processes and in-
The European Journal of Management and Public Policy
Vol. 13, No.1 (2013) • issn 1726-6475
2 The European Journal of Management and
Public Policy • Vol.13, No.1 (2013)
stitutions and, hence, the global economic environment which vitally affects
their development”;
• and that, for the above reason, “they have made a collective demand for the
reform of the international economic system so as to make it more equita-
ble and responsive to the needs of the vast majority of humanity-the people
of the South”.
The Commission concluded that “The struggle for a fairer international sys-
tem has consolidated their cohesion and strengthened their resolve to pursue
united action”.
Twenty-five years have elapsed since this broad definition of the South was
originally formulated. This has been an eventful, turbulent and challenging
period for the Global South, as the international community underwent pro-
found changes and experienced serious economic, financial, political and ge-
opolitical crises.
The aim of the ECPD exercise, undertaken in cooperation with the Group of
77, is to elicit views and opinions about the state and prospects of the Glob-
al South from distinguished national leaders and personalities that have been
engaged in and/or are familiar with the joint efforts of the developing coun-
tries to confront challenges of development and to evolve an equitable world
economic and political order through the United Nations.
Among the issues that merit attention, for example, are:
• what is the contemporary raison d’être of the Global South;
• how to harness the potential of the rapidly evolving and diversifying
South-South cooperation and at the same time to give it an inspiration
and meaning that differs from the mercantilistic, neo-liberal rationale that
has prevailed in traditional North-South economic dealings;
• how to improve the efficiency, efficacy and influence of the Global South in
the international arena, given its growing group potential and power; and
• what are the elements of unity in great diversity that is characteristic of
the developing countries that belong to the Global South, and how can
this unity be translated into a platform of basic principles and objectives,
or a charter of the South that can have a lasting value and contribute to
the struggle to evolve a positive and cooperative global order and main-
tain world peace.
This Round Table discussed the same topic, and considered the papers re-
ceived in advance and made them available to the participants.
Introduction
ECPD Second International Round Table “The
Global South – At 50 And Beyond”
Belgrade, October 25, 2014
The second ECPD International Round Table on the Global South was or-
ganized and held in Belgrade, on 25 October 2014. It was held in continua-
tion of the tenth ECPD International Conference on reconciliation, tolerance
and human security in the Balkans.
The first ECPD International Round Table on the Global South was organ-
ized in 2013 to discuss whether the 21st Century could be the Century of the
Global South,while the second Round Table was organized with the aim to
consider the old and new international economic order and to mark the Fif-
tieth anniversary of the Group 77.
The organizer of the Second Round table (ECPD) was directed by the no-
tion that the architecture of the old (and actual) international economic or-
der was created by and in the interest of the developed, mostly old coloni-
al states. Interests of underdeveloped countries and colonies were almost ne-
glected. In the meantime the world order has been dramatically changed.
The decolonization was successfully completed, new independent states es-
tablished and Global South became reality, whithin which new great econo-
mies are emerging.
Trough the time the world political and economic order assumed new geo-
political form. In the early 1960s it was consisted of two political and mili-
tary coalitions (Eastern and Western) and the Third world (Southern). Each
coalition adopted rules of internal economic relations. The Council for Mu-
tual Econimc Assistance (Comercon) was established to regulate economic
cooperation among countries of Eastern coalition, while the Western coali-
tion adopted Threaty of Rome on which basis the European Economic Com-
munity was established to regulate economic cooperation among its mem-
ber countries.
The Third world, however, remained unorganized and subjected to the com-
petition of the two coalitions, serving for a long time as a “market taker” and
the “raw material giver”.At early 1960s the Non-Aligned Movement (NAM)
was established. As a group of the Third world countries (without the largest
– China) the NAM was formed to challenge the two coalitions rather then
struggle for rearrangement on the old international economic order. In the
same time (1967) the Group 77 was established (also without China) with
the aim to articulate and promote their collective interests and enhance their
Vol. 13, No.1 (2013) • issn 1726-6475
joint negotiating capacity on the major economic issues within the United
Nations system. The strength of the Group 77 and its capacity was far behind
European Economic Community, not to mention European Union.
The European Center for Peace and Development realized that the old inter-
national economic order should be reformed or replaced with the New one,
invited the numerous scientific workers, from almost all over the world to
discuss the matters, comment and/or propose solution for establishment of
the new international economic order, which would better suite the Global
South countries.
The Second ECPD International Round Table was attended by the most par-
ticipants of the Tenth ECPD International Conference. It was chaired by
H.E. Ambassador Idriss Jazairy, who presented his opening address. H.E. Mr.
Boutros Boutros-Ghali, former UN Secretary-General and actual President
of the ECPD Honorary Council, initiator of holding the Round Table (his let-
ter of invitation, endorsed) was not able to attend the Rounde Table. Howev-
er, most of the attendees presented their papers, spoke and/or discussed the
issues indicated in the Agenda.
The following papers presented by their authors

are included in the Proceedings
His Excellency, Ambassador Idriss Jazairy, in his opening remarks referred
to the evolving circumstances within which the Global South operates. He
reviewed, with some critical tone, the South’s response and suggested some
conclusions as to where the Global South should move from where it now
stands.
Two Chinese scientists, Professor dr An Chen and Professor dr Fan Yang,
sent to ECPD their study on reforming the old and establishing the New In-
ternational Economic Order, to be presented at the Scond ECPD Round Ta-
ble. Referring to the Global South Coalition (GSC) and the Group 77 work,
they emphasized the necessaty of reforming the old and/or establishing the
New International Economic Order and brought our some specific Chinese
points of view on these matters.
H.E. Mr. Abdlatif Y Al-Hamad, being also unable to attend the Round Ta-
ble, sent his paper which was, as well, presented at the Round Table. In his
paped he summerized accomplishments the Group 77 achieved and at the
same time suggested what the Group 77 should do in the new and dramati-
cally changed circumstances.
Proffesor dr Paolo Acanfora in his paper confirmed that the best way to de-
scribe the present international conflicts is the one “Sam Hunington came up
with” in his Clash of Civilization. He tried to defy a new concept of cosie-
5
Introduction
ty, that of Shared Society and modernity where all nations can live together,
sharing a common sense of belonging and maintaining their own identities.
H.E. Professor Idriss Jazairy, besides his opening remarks, presented the ad-
ditional paper titled:”In defense of special procedures of the Human Rights
Council: An alternative narrative from the South”, in which Ambassador
Jazairy discusses the changing environment for the Global South and its
evolving role in the world affairs.
Mr. Ismail Serageldin in his paper analized the Old International Econom-
ic Order created on the Bretton Woods results: the International Monetary
Fund, the World Bank and the International Trade Organization. According
to his views, these institutions were designed by and served the interest of
colonial powers. He analized further the dramatic changes in the world eco-
nomic order and demanded for new approaches towards establishing such an
international economic order which would better satisfy needs of less devel-
oped countries.
PhD candidate, Mr Kemal El Shairy on his presented paper “Curse of Oil
– the Lybian Case” analised devastating internal and external policy of late
Moammar El Ghadafy and its consequences. The Lybian February Revolu-
tion and aftermath has also been deliberated by Mr. Shairy.
Speaking about South-South Cooperation, Dr. Branislav Gošović said that
for five decades South-South Cooperation was an orphan of the internation-
al development agenda; it was in the shadow of North-South Cooperation.
At the same time, he highlited the major reason why it was so and stated that
now when the big economies in the Global South are emerging the circum-
stances for South-South Cooperation are improving.
Professor dr Raoul Weiler and Professor Dr. Timi Ećimović in their joint
paper said that since the end of 19th century sciences were undergoing trans-
formation from the sciences of nature to the sciences of mankind. They tried
to clarify their transformation and its complexity.
BOUTROS BOUTROS GHALI
Letter of Invitation
Once again, on account of other obligations, I regret deeply to be unable to

take part in this tenth ECPD annual conference. I would have liked to be
again in Belgrade and in this region, which I am attached to and familiar
with its problems which I experienced during my term as the UN Secretary-
General.
I welcome and congratulate ECPD on its excellent, highly valuable work over
the last three decades, and encourage it to continue and expand its signifi-
cant activities.
Problems besetting the West Balkans today are similar and often identical
to those experienced by developing countries in different parts of the world,
namely those arising from the interrelated challenges of: a) attaining devel-
opment objectives and aspirations; b) maintaining peace, including domestic
peace; c) protecting national sovereignty and dignity; and, d) playing a role
and having an influential say in the conduct of world affairs. It is important
to recall that some 50 years ago, these very objectives brought together lead-
ers of developing countries from Africa, Asia and Latin America in our host
city Belgrade, objectives which, to the present day are shared by all develop-
ing countries and which they promote jointly through their group action in
the United Nations and in the global arena.
Lessons learned and experiences in this region are of relevance to all devel-
oping countries and especially to the Arab countries, to the United Nations,
and also concern multilateralism and global governance. Here, I single out
the need to manage and respond to realpolitik practices of contemporary ge-
opolitics, which have resuscitated some ghosts from the recent and more dis-
tant past. Today, they continue to affect and are felt acutely in the West Bal-
kans, as well as in the Arab world, both well-known for their turbulent histo-
ries, especially in the 20th century.
How your countries and peoples deal with and confront these multiple, in-
terrelated challenges of peace and development is thus of wider, global sig-
nificance.
I insist that in these efforts it is essential to transcend bigotry, religious and
political fundamentalisms and populisms, and jointly to address the root
* President of the ECPD Honorary Council, Former Secretary-General of the United Nations

Vol. 13, No.1 (2013) • issn 1726-6475
7
B.B. Ghali: Letter of Invitation
causes of old and new problems, in search for solutions through common ef-
forts, solidarity and enlightenment. ECPD, as an institution established un-
der the UN mandated University for Peace, has been trying to contribute to
this goal through its unique activities.
It is my sincere wish that in this manner it will also contribute to rebuild-
ing, on new foundations, a community of peoples and nations that existed in
the region during the era of SFR Yugoslavia, by promoting economic coop-
eration, mutual trust, and solidarity in the quest for common welfare in the
West Balkans.
As someone who comes from Egypt, today facing social, economic and polit-
ical upheavals, and wars in the Arab world, I also wish to salute the efforts by
ECPD to revive its important earlier work on development and South-South
cooperation, domains which can help Arab countries to solve and overcome
their internal problems.
I wish you success in your deliberations and proceedings.
Boutros Boutros-Ghali
Former Secretary-General of the United Nations
President, ECPD Nonorary Council
IDRISS JAZAIRY
Opening Remarks
Last year, our ECPD conference addressed the secular change in the environ-
ment of the Global South. We asked ourselves whether the latter could regain
the initiative of setting the global multilateral agenda. Would we be equal to
the task of promoting broader-based accountability of global institutions still
reflecting the balance of powers emerging from WWI? In other words, could
we succeed in making world standards less power-driven and more value-
driven? Finally we raise the issue of whether the South-South format could
continue to effectively enhance through cooperation and solidarity the long-
term interests of the developing countries.
Basically my assessment was that the South was sitting on the horns of a para-
dox: When it was economically weak but politically strong and united, it was
able to reshape, if not the reality, at least the international agenda on the reform
of the world economy. But when it later became stronger and able to generate
over half of world GNP1, its status was downgraded from “market maker” to
“market taker” in a globalised economy. I referred however to the fact that the
Global South had an historic opportunity, as the locomotive of world econom-
ic growth 2010–20132, to participate more effectively in channelling the global
forces that shape the international economy and to make them subservient to
the acceleration of income convergence between South and North.
Since we met in these auspicious surroundings last year, many events have
had a direct bearing on last year’s assessment of “whither the Global South”.
This year, with the benefit of our previous analysis of 2013 on secular changes in
the world environment of the Global South, we can assess the evolving circum-
stances within which the South operates. This is the purpose of the first part of
my presentation. Against this background, I then propose to review critically the
South’s response thereto. Such is the purpose of the second part of this presenta-
tion. In the third part of my remarks, I will suggest some policy conclusions as to
where the Global South should move from where it now stands.
My presentation does not claim academic rigour nor aim at providing an ex-
haustive picture of the challenges and opportunities which lie ahead. It will
* Ambassador; Permanent Representative of Algeria to UN office in Geneva, Switzerland

1 50.4% versus 49.6% according to IMF World Survey 2014
2 UNCTAD Trade and Development Report 2013

Vol. 13, No.1 (2013) • issn 1726-6475
9
I. Jazairy: Opening Remarks
have served its purpose if it triggers a discussion from which new approach-
es may emerge.
i. On the evolving environment within which the South

has been operating recently
The overall climate of the world economy has been sullen over the past year.
As noted with concern by the recent Summit of the G77 plus China, we have
witnessed since the beginning of this Millennium increasing concentration
and asymmetry in the distribution of wealth world wide but more special-
ly in some major developed countries. This was graphically demonstrated by
Professor Piketty in his book “Capital in the Twenty-First Century”. The at-
tendant increasing polarization of incomes is leading to an intensification of
inequality which appears to be a market failure of neo-liberal globalization
where fiscal policies do not mitigate income gaps sufficiently.
While the Bretton Woods institutions and their main sponsors long claimed
that such policies had benign effects on growth, probably being conducive to
savings and therefore helpful to investment, it now appears that empirical ev-
idence points in the opposite direction. Indeed a recent publication of IMF3
shows that inequality reduces growth and that if growth occurs while leading
to greater inequality, it is unlikely to be durable. This together with the sub-
stantial bailouts of the main culprits of the 2008 crisis goes a long way toards
explaining the limited impact of macro-economic policies which have been
taken to overcome the obstacles to growth.
Thus since the 2008 crisis, continental Europe has been in and out of reces-
sion, latching on to austerity policies and fiscal restraint at a time when even
the IMF recognizes4 the inappropriateness of its usual prescriptions as a way
out of the current slowdown. The ECB is only now engaging on some condi-
tional quantitative easing. When in the past developing countries were in cri-
sis, the IMF was wont to impose through structural adjustment budget cuts,
fiscal tightening, cut down on subsidies and an ending of such “State prof-
ligacy “ as engaging on Keynesian infrastructure development programmes
to fight against unemployment. However when the US and other developed
countries were durably affected in the aftermath of the crisis of 2008, the IMF
reversed its policy and advocated both quantitative easing and the appropri-
ateness of launching public works financed through borrowing.
This course of action helped the US and the UK to avoid the repeat crises of
continental Europe albeit at the cost of added indebtedness. The pick-up of
their economy however was tardy and not sufficiently vigorous to relay the
developing-country locomotive. The pace of the latter had decelerated hav-
3 I MF Note on Redistribution, Equality and Growth, 25 April 2014

4 IMF, World Economic Outlook 2014
ing made heroic efforts to support the health of the world economy at arms
length for several years. And these efforts were indeed heroic as the develop-
ing countries lost half of their hard earned reserves in the process.5
Emerging countries were exposed to massive inflows of speculative capital
which moved out of western stock exchanges where interest rates were very low
only to move out no less massively when tapering was announced by the Fed.
The correlation of investment flows and of asset prices in these countries com-
pletely destabilised the economies of several of them. The pro-cyclical manage-
ment of foreign funds in emergent countries is making matters even worse.
While the debt burden in developed countries was higher than in develop-
ing countries, the reserve currency countries i.e. the US, the Eurozone and
the UK can, to different extents, service this debt more or less painlessly by
printing money, that is by exporting inflation. This, of course, is not the case
for developing countries thus making their more modest external debt more
burdensome.
No wonder then that the rates of growth have been more modest in the South
though Africa is putting up a remarkable performance despite all odds. This
is a reminder that globalisation has created a degree of interdependence
which links growth trends worldwide in the medium term.
Many of us considered last year, and I was one of those, that the developing
countries should cut a better deal as a counterpart for playing the role of lo-
comotive for the world economy over several crucial years after the 2008 cri-
sis. Today we all share some disappointment at the South’s limited harvest of
benefits even as we witness the loss of momentum of the Southern econo-
mies.
Not only did the South not derive benefits from its pilot role to pull the world
economy out of the crisis but also it was exposed to arbitrary measures which
run counter to the very precepts of globalisation and neo-liberalism. I will
quote but a few:
1. Increased resort by advanced economies of unilateral coercive measures
against emerging and developing countries. Such measures are illegitimate
in international law when not sanctioned by the Security Council under
Chapter VII of the UN Charter. Much has been said about the develop-
ment of smart sanctions which are supposed to spare the living conditions
of innocent civilians in the targeted countries. But what is now developing
is a new form of economic warfare from which no one will be spared. In
a world economic context where the resumption of growth is fragile, such
sanctions and unavoidable retaliatory measures must be resorted to spar-
ingly. Furthermore, history has proved with the embargo on Cuba, that
5 is information, backed by interesting statistics, is provided by Dr Andreas Antoniades in a pa-

Th
per entitled : »Beyond Democratising Global Government. : Furthering South-South Coopera-
tion and the Role of BRICS » September 2014
11
sanctions are ineffective as a way for States to force changes in policies of

other states…
2. Side-tracking of WTO rather than to seek to address the legitimate con-
cerns of the developing countries in the WTO including ensuring the right
to food for the destitute. There is an attempt by advanced countries to
seek to obtain through regional transAtlantic or trans-Pacific free-trade
deals the kind of agreements that have been elusive in WTO because they
did not safeguard the interests of developing countries. Such trans-region-
al deals sidetracking of WTO would also make it possible to introduce In-
vestor-State Dispute Settlement Clauses that even industrialized countries
find hard to palate. Reluctance by trading partners is due to the fact that
there has been an abuse of international arbitration by multinational en-
terprises, not to challenge arbitrary behaviour by expropriating states but
to influence or undermine policies of sovereign states.6
3. Subversion of ICT by States for political purposes which undermines this
modern mode of communication in its support of the expansion of inter-
national trade and jeopardizes globalisation.
4. Claim to extra-territoriality of national legislation: A district court judge
in New York can invalidate a restructuring agreement worked out by the
Argentine Government with an overwhelming majority of lenders at the
request of a “vulture fund”and orders the state to reimburse the fund at
face value when the latter bought the bonds at 80% discount. This decision
enables the vulture fund to make a 1600% profit on a short-term invest-
ment at the expense of 40 million Argentines.7
In anther case, one advanced country, the US, decides of a unilateral ban
on trade and financial transaction with a developing country the Sudan
without Security Council approval. Another country, France, maintains
normal relations with the same developing country and makes a payment
to the latter using the sanctioning country’s international reserve currency,
the US dollar, to make the payment. The French bank making the payment
is subjected to a huge fine by the US.
5. Politicization of technical instruments for international financial set-
tlements: The System of International Financial Telecommunications
(SWIFT) created in 1973 and based in Brussels is apolitical. It has become
part of the life of ordinary citizens in over 90 countries. Now powerful
countries strive to politicize it by already having pressured it to ban finan-
cial settlements with Iran and now to get it to do the same with Russia.8
These are dangerous precedents which could apply to any other develop-
ing or emergent country.
6 S ee Financial Times: “Toxic talks”, 7 October 2014

7 Le Monde diplomatique : “Les effets planétaires d’une décision de la justice américaine” by Marc
Weisbrot, No727 of October 2014.
8 See Financial Times : “A hidden cost to freezing Russia out of finance”, 3 October 2014.
These 5 items have a common feature: they are an expression of the dual
standards practised by advocates of market forces and globalisation and can
turn out to be counterproductive for all trading partners by introducing un-
predictability and arbitrariness.
ii. The second part of my presentation reviews critically

the response of the Global South to the evolving world
environment in which it has been operating of late.
This will be done from two perspectives:
–– that of the response of the Global South in world fora
–– that of progress in South-South cooperation.
Both these perspectives were abundantly discussed at the Ministerial Meet-
ing of the NAM in Algiers in May 2014 and at the Summit commemorating
the Fiftieth Anniversary of the Creation of the G77 in Santa Cruz, Bolivia in
June. The issues of the response of the Global South from these perspectives
were further deliberated upon at the 60th commemoration of the Bandoeng
Conference followed by another NAM-G77+China Joint Coordination Com-
mittee meeting in New York in September 2014. This indicates the renewed
determination of developing countries to take their future in their own hands
and to revert to their initial position of market makers and not only of mar-
ket takers in the world economy.
In Santa Cruz, the Global South reiterated in a remarkable show of unity and
solidarity its commitment to promote with renewed energy in world fora a
new international economic order. Its need had become more pressing than
ever in the wake of the world economic and financial crisis of 2008. It made
it clear that it would also press for real
democratisation of the UN and of the Bretton Woods institutions in terms
of both decision-making concerning management and oversight and of end-
ing the arcane procedures applied for appointing their Chief Executives. The
democratisation of the procedure for designation of the Directors General of
ILO and WHO also merit consideration. The ILO, which holds dear the prin-
ciple of non-discrimination in employment, has never, since it was created
in 1919, had an African or an Asian chief executive. Likewise the WHO has
never had an African Director General. Therefore while the General Assem-
bly of the United Nations should be given a greater role in the appointment
of the Secretary-General as required by the Santa Cruz Summit, this should
also be the case in ILO and in WHO. It is particularly shocking that in the
latter, the WHO assembly is not even given the authority to chose between
two candidate but has to vote on the proposal of a single name proposed by
its restricted Board.
Bizarre as this may appear, the principle of geographic rotation applied for
the selection of the UN Secretary-General is opposed by Western countries
when it comes to the appointments of the chief executives of ILO and WHO.
13
When considering the funding of the UN and of its subsidiary bodies, the
G77+China Summit in Santa Cruz expressed concern at the growing imbal-
ance between assessed and voluntary contributions.
Starving the UN of budgetary resources and giving the possibility for West-
ern donors to finance projects à la carte “bilateralizes” what is meant to be
multilateral cooperation and undermines the meaning of multilateralism.
This unfortunate trend affects not only economic agencies such as UNCTAD
but also agencies that are particularly vulnerable to political manipulation
such as the Office of the High Commissioner for Human Rights. It is no ac-
cident under the circumstances that the majority of the staff in both these
agencies remains from western countries. This is particularly disturbing for
UNCTAD where the remark applies to both staff and consultants, giving the
impression that the elites of the South are not equally qualified to address the
economic problems of the South! With the recent doubling of its resources,
the OHCHR could also have done a better job at correcting the geographi-
cal imbalance of the staff as repeatedly invited to do so by the Human Rights
Council, the Secretary-General and the Joint Inspection Unit.
I referred earlier to attempts to sidetrack WTO. The main reason for this
is the relative success achieved by the group action of the Global South to
make this body become more responsive to the basic needs of their peoples.
Free-trading countries of the South such as Brazil are supporting the claims
of more vulnerable partners to protect their peasant agriculture and to up-
hold the right to food. The challenge here for all trading partners is to give
new impetus to the Doha Round that pains to deserve the epithet of being
“for development” while progressively prying open the stranglehold of the
“Quad”9 on the evolution of WTO or lack thereof.
As indicated earlier, the advocacy of free trade has not prevented free traders
from introducing restrictive practices such as unilateral bans on trade and
transfers of funds targeting countries outside their sphere of influence. Cus-
toms unions between developing countries can reduce vulnerability of devel-
oping countries to such practices.
An alternative to SWIFT may have to be put together at the initiative of de-
veloping countries using modern communications technology if the current
system cannot be insulated from political interference. But there are few al-
ternatives to reliance on the current set of world reserve currencies. This
would warrant the meeting of a group of experts from the South to mull on
the possible elaboration of a code of conduct to protect currencies of account
of international transactions from political manipulation by the country of
origin of the said reserve currency.
Restrictive practices on the transfer of scientific knowledge and technology
have also hampered the growth of developing countries. The South African
decision in 1999 to permit unlimited access to retroviral drugs at affordable
9 US, EU, Japan, Australia

prices for treating citizens contaminated by AIDS was a landmark. It put in

perspective a fact that should have been obvious to all that is that the sancti-
ty of life has precedence over the sanctity of patents.
This timely initiative has given a new twist to the TRIPS in WIPO and was
one of the factors leading to the development agenda of WIPO spearheaded
by a broad-based group of developing countries.
Another recent instance of response of the Global South to restrictive prac-
tices from the North is the move of the G77+China Group in support of Ar-
gentina. It initiated a resolution which was adopted by majority vote to set up
a mechanism for restructuring sovereign debt that will not be open to abuse.
Referring apparently to this case and to others I mentioned earlier the Santa
Cruz Summit rejected the extra territorial extension of national laws and reg-
ulations. It also rejected economic coercive measures imposed unilaterally in
particular against Cuba and the Sudan.
Last but not least in terms of joint responses of the Global South in world
fora is its position in terms of the post-2015 Development Agenda. I men-
tioned last year the limited impact of the MDGs on the inequities of the cur-
rent international economic system. I stressed at the time that 7 out of the 8
goals had to do with mainly domestic policy prescriptions while the 8th had
to do with international cooperation. Not to introduce reforms but just to do
what had been decided several decades ago. Goal 1(a) called for the reduc-
tion by half by 2015 of the proportion, not the numbers as initially pledged,
of people suffering from hunger. The fact that the world was getting closer
to this shrunken objective was the cause of wide acclaim. It is presented as a
great UN achievement although it would, at the current rate take a full 150
years for hunger to be eradicated.10 This is a far cry from the 15-year time
span which the UN High Level Meeting set last year as a goal for the eradi-
cation of hunger.
Providing the right response, the Santa Cruz Summit emphasized the need
for the post-2015 Development Agenda to be broader with coordinated and
comprehensive goals leading to rapid, sustained and comprehensive growth.
In order for action to be sustainable at the multilateral level, it must be com-
plemented by progress of action to reinforce South-South cooperation, both
having a systemic interaction. This is the second perspective from which to
assess the response of the global South to evolving challenges.
The best way to argue persuasively with Northern partners about the neces-
sity of doing away with colonial pact approach to trade is to apply patterns
of South-South trade which generate employment and local value-added for
all trading partners involved. After an initial focus on imports of raw materi-
10 N Chronicle, Vol. LI, Number 1,2014, “Fiftieth Anniversary of the G77” by Idriss Jazairy, p.13,
U
note2.
15
al from Africa against Chinese manufactured exports, China is now assisting

its trading partners in the South in developing their infrastructure and mov-
ing up the value chain.
Nor is there a better way of alleviating western-imposed conditionality on
loans by BW institutions than to make such loans available on economic
merit without policy strings attached, in the ambit of South-South coopera-
tion.
This is what the BRICS have decided to do by creating the New Develop-
ment Bank. Admittedly, its paid-up capital of $50 billion is relatively modest
when compared, say, with the debts of Brazil and China alone to the World
Bank which are in the range of $65 billion. However the new Bank’s author-
ized capital is $100 billion and is open to private capital. Irrespective of its
capital stock, the founding members will keep 55% of the shares as against
35% in the World Bank. It is not clear however if the largest shareholder in
the NDB has a blocking share of the votes as is the case in the WB. The paid-
up capital is fully in US$ while this currency is limited to 10% of the World
Bank’s capital.
The BRICS also decided to set up in the same spirit the Currency Reserve
Arrangement with a capital of $100 billion. This is reminiscent of the Chiang
Mai currency swap arrangement of about $250 billion set up between 13 de-
veloping countries of Asia. Both have the same feature of requiring from bor-
rowers an approved agreement with the IMF, above a certain ceiling of 30%
of quotas in the case of the CRA. That may explain why the Chiang Mai deal
has not so far served its purpose. Hopefully the CRA will be spared such a
fate.
It will be interesting to see how these two new institutions can protect their
activities from the kind of political manipulation of the reserve currency
country of origin that I have referred to earlier in this presentation. Both ini-
tiatives are still in their infancy and deserve strong support from developing
countries to reinforce their autonomy and effectiveness. It is likely that these
initiatives and other similar ones like the Asian Infrastructure Bank under
the aegis of China will lead by their example. In this case their policies and
practice will encourage the Bretton Woods institutions to become more sen-
sitive to the aspirations of the borrowers and not only of the lenders.
Resort to the creation of new regional and cross-regional financial institu-
tions by emergent countries will continue so long as they are prevented from
enjoying more equitable representation, side by side with other developing
countries, in existing world bodies. It remains to be seen whether this leads
to an improvement in the voting power of emergent countries in the Bretton
Woods institutions for instance. The paralysis of the modest outcome of the
2010 reform of voting rights in IMF adding some 6% to the share of emerg-
ing countries is not a good omen in this regard.
Likewise, efforts to open up the recruitment of the Heads of Bretton Woods

institutions and to make merit a determining factor in the process, failed to
change the status quo of Western dominance of these organizations.
While being refused formal recognition as key players in development agen-
cies, the more influential developing countries get co-opted to participate in
informal for a like the G20 where the agenda is determined in advance by
big powers. Discussions are thus circumscribed to status quo issues preclud-
ing advocacy of reform by countries of the South whose presence neverthe-
less lends legitimacy to G20 decisions.
I referred last year to the slow progress towards the entry into force of the
GSTP between developing countries which was signed by only about half of
its members at Fos do Iguacu in December 2010. Its anaemic performance
tends to show that WTO type patterns may not be the only solution to pro-
mote South-South trade. Indeed we have witnessed in the course of the past
few years a spectacular expansion of trade between developing countries. It
now represents 25% of their overall trade as compared to 10% three decades
ago.
Emerging countries are now leading the process of intensification of trade
and financial relations between developing countries. Under their leadership
promising new forms of South-South partnership have taken shape. Thus in-
dividual emerging countries such as Brazil, Turkey, China and India have en-
gaged with Africa as a regional group. These partnerships involve trade, fi-
nance and capacity building. They tend to be successful because they are gov-
erned by the principles of mutual interest, non-interference in internal af-
fairs of partners, respect for sovereignty and shared experience as develop-
ing countries.
Such formats are now being replicated by France, the EU and even recently
for the first time, by the US all of which have organised Summit with Africa.
This is increasing the visibility and attractiveness of the Continent in areas
other than extractive industries and commodities.
The possibility for these novel forms of partnership to proliferate outside the
UN in fora over which they have no control has incited Western countries
which were previously hostile to using UNCTAD’s budgetary resources for
South-South cooperation to reconsider their position. They have now ap-
proved the creation in UNCTAD of a unit for cooperation and integration
among developing countries 11 years after having eliminated an ECDC unit
in the same agency.11 Similar action has been taken by developed countries
in UNDP.
11 ranislav Gosovitch Economic and Political Order : “South-South Cooperation – An Opportu-

B
nity for the South to Change the World Economic and Political Order”, Paper of 25 August 2014.
17
iii. Some policy conclusions as to the direction of the Global

South’s future endeavours:
1. The old chestnut about delinking the South from the North is neither real-
istic nor practicable: it is not realistic because industrialised countries and
emerging countries are already one economic and financial cluster repre-
senting 90% of world GNP and 2/3 of world population. It could not be
practicable in this era of globalisation.
2. It does not make sense to separate South-South cooperation from South-
North interaction if only for the following reasons:
(a) The trade and financial flows of developing countries are still predom-
inantly between North and South. South-South cooperation while not
substituting for North-South interaction, can broaden the policy space
of developing countries. It can also egg on Northern partners to evolve
in their attitude vis-à-vis the South towards a more business-like, win-
win partnership.
(b) Through greater solidarity between different groupings of the South
from the G77+China to the bewildering alphabet-soup list of their dif-
ferent sub-groups, developing countries can be increasingly successful in
enlisting the support of the North to reshape the world economic sys-
tem. Will then the South be finally listened to when it seeks to achieve
greater democracy and transparency in international institutions? Will
the South be able to reverse the current erosion of multilateralism?
Much will depend on its member countries’ capacity to resist the “divide
and rule” tactics of the North and to let strategic commonality of inter-
est prevail over the pursuit of narrow short-term interests.
3. In their pursuit of the improvement of the fate of their people, national
leaders of the South drew up in the ‘seventies of last century, agendas for
international negotiations which were transformational of the status quo.
From the ‘eighties onward, this agenda lost steam as the Berlin wall went
down. An era of triumphant neo-liberalism ensued which prevails to this
day and which underpinned the basics of the MDGs and of the outcome
of the 2005 UN Summit.
The question which remains is whether it will be possible for the South to
catch up with the North by continuing to rely on the neo-liberal rationale.
It may have looked like the right choice in the heady period between 2000
and 2009 when the rates of growth of emerging countries were exceeding
7% and reaching double digits in some cases, therefore more than dou-
bling each decade. Africa’s economy alone has grown fourfold since the be-
ginning of the Millennium according to the President of the African De-
velopment Bank12. Had this trend continued, “convergence with a venge-
12 inancial Times, FT Special Report : The New Africa, “Continent starts to become master of its
F
own destiny” by Donald Kaberuka, page 7, Monday 6 October 2014
ance” of emerging countries which was one of the scenarios I mentioned

last year at this ECPD meeting, would have occurred with the US over the
next three decades. But the situation is now different. Apart from China,
the growth of emerging countries which was previously nearly double that
of rich countris is now less than half a percentage point ahead. 13If, as is
now more likely, this trend continues to prevail, then the second scenar-
io I offered last year, i.e. “convergence with temperance” with, oh so much
temperance, will be the bitter lot of the South. The time horizon for catch-
ing up under this scenario would be more like 3 centuries.14
So we are back to square one: Will the political leadership of the South
revert to a transformational agenda to address traditional and evolving
new challenges including environmental protection and climate change?
This seems to be the option retained by the Santa Cruz Summit of the
G77+China. It remains to be seen how this will translate in joint positions
to be taken in North-South fora. A first reality test will be the content of
the post-2015 Development Agenda for which a Summit in schedules to
take place probably in 2015.
4. The South needs to be aware of the migration of political, economic ad so-
cial conditionality from the IFIs to the Human Rights Council. A policy is
being shaped to reintroduce in this forum a number of, though not all, the
domestic issues which are the subject of conditionality elsewhere. For what
reason? Because conditionality may have to be toned down in the BW con-
text for reasons of competition with emerging-country lenders or lending
institutions. Conditionality is thus in search of, and may have found a new
home where some of its issues can legitimately be raised and where some
relevant policies may be enforced.
Human rights, whether civil and political rights or economic, social and cul-
tural rights are in themselves worthy objectives to be pursued by all coun-
tries, developing and developed. The trend of the current international hu-
man rights machinery is to focus on protection of alleged victims in specific
country situations. This results in reducing the political space of mainly de-
veloping countries. However this machinery cannot do much to support,
through technical assistance and training, national policies of prevention.
This is because it lacks budgetary resources and voluntary funding is usually;
earmarked for investigative purposes.
Despite its reforms of 2008, this machinery remains driven by North-South
pressure politics and is therefore far from being value-driven. The South is
divided in confronting this new challenge while the North is united. Each
country of the South should do its utmost to comply with human rights cov-
13 stimates of World Bank’s International Comparative Programme, April 2014

E
14 The Economist, “Briefing Economic convergence: The headwinds return”, pages 24 to 26, 13 Sep-
tember 2014
19
enants. South-South cooperation can even be pursued to achieve the high-

est standards in this regard; However G77 and NAM solidarity should extend
more specifically to defeating politically motivated initiatives to undermine
the sovereignty of their member-states.
It is recommended that the harmonisation of a G77+China and NAM po-
sition on UN human rights issues be promoted by their periodic Summits
and that voting discipline be improved as occurs in the Western group al-
so known as WEOG and that the diplomatic missions of group members
adopt a joint platform on key issues before each session of the Human Rights
Council.
An CHEN, Fan YANG
Senior Professor at Law School, Xiame
AN CHEN*, FAN YANG** Ph.D. Candidate of International Econo
People’s Republic of China
The Voice from China on Reforming Oieo and
Establishing Nieo
THE VOICE FROM CHINA ON

REFORMING OIEO AND ESTABLI
Abstract: The great career of Global South-South Coalition (SSC) has just entered its fif-
ties, if we take the establishment of Group 77 in 1964 as its origin. For half century, in or-
der to eradicate the unfairness and injustice embedded in the old international econom-
Abstract:
ic order and legal rules, to fight for a better development The great
environment, careerwhole-
through of Global South-So
we take the establishment of Group 77 in 19
hearted cooperation and joint action, the Global South has won some achievements, yet
eradicate the unfairness and injustice embedd
not without encountering a number of difficulties. For legal
the past fivetodecades,
rules, fight forthea course
better development
of SSC has seen its ups and downs. Confucian philosophy of China advocates
and joint action, the Global for a com-
South has won som
prehensive self-reflection every decade, so as to comb number
the pastofexperience
difficulties.forFor
thethe
sakepast five decade
of future self-improvement. At this historical turning Confucian
point, it is philosophy
of necessityoftoChinaretro-advocates for
spect SSC’s past accomplishments and difficulties. Contemporary
as to combinternational econom-for the sake of f
the past experience
ic circumstances should also be combined to revalue thosepoint,upsit isandof necessity
downs, sotoasretrospect
to re- SSC’s past
affirm the confidence of this long-term strategy, and tointernational
avoid tacticaleconomic circumstances should a
short-sightedness.
In this way, the career of Global SSC could absorb the so as towisdom
learned re-affirm andthe confidence
rebuild the of this lo
original confidence, then ready to sail out once again sightedness. In this way, theatcareer
for new accomplishments the of Global S
the original
age of “knowing the decrees of Heaven”. For Chinese scholars, it is confidence,
also necessary thenandready
a to sail out o
“knowing the decrees of Heaven”. For C
responsibility to retrospect the New China’s self-position on the course of SSC, so as to
responsibility to retrospect the New China’s sel
provide another kind of experience from the aspect of an involving
another kind developing
of experience country.
from the aspect of a
It is noteworthy to point out that China has since 2008 taken the lead in participating
to point out that China has since 2008 taken th
and promoting the BRICS countries’ activities to applaud and embrace
countries’ the reformation
activities to applaud and embrac
of OIEO. Such pioneering undertaking has reached a new height, as in
undertaking has reached 2014 thea world
new height, as in 20
has seen a substantial breakthrough in reforming the international
in reforming financial regime. The financial reg
the international
New Development Bank of BRRICS countries is expected countries
to usher is expected
in a whole to new
ushersys-
in a whole new s
tem to compete with the World Bank and IMF, which could whichbecould
takenbe as taken
a newlyas generat-
a newly generated bre
ed breeze that is now gently blowing from the above of duckweed
duckweed (“风起于青萍之末”),
(“ ”), with a possib
with a possibility to start a chain reaction and to causeButterfly
the ButterflyEffect, and and
Effect, evolves eventually into a
evolves
eventually into a powerful hurricane. Such metaphor ispowerful evidenceevidence
also a powerful for a possible
for a bright futur
reliance.
possible bright future of the course of South-South collective self-reliance.
Introduction:
Introduction: SSC at the age of “Knowing the SSC at the age of “Kno
Decrees of Heaven” While summarizing his own life course
Master
While summarizing his own life course of gradual Confucius
progress said,
and attainments,
the Master Confucius said,
!29
* Senior Professor at Law School, Xiamen University;
** P
h.D. Candidate of International Economic Law, Xiamen University, Reconciliation
People’s Republic of China – New Balkans and Eur

Vol. 13, No.1 (2013) • issn 1726-6475
21
A. Chen, F. Yang: The Voice from China on Reforming Oieo and Establishing Nieo
At fifteen,At
d bent on learning. I had my mind
thirty, bent on
I stood learning.
firm. At thirty,
At forty, I had I stood firm. At forty, I had no doubts.
At fifty, I knew the decrees of Heaven. At sixty, my ear was an obedient organ for the recep-
new the decrees of Heaven. At sixty, my ear was an
tion of truth. At seventy, I could follow what my heart desired, without transgressing what
reception ofwas
truth.
right. At seventy, I could follow what my
ansgressing (“子曰：吾十有五而志于学，三十而立，四十而不惑，五十而知天命，
what was right . (“⼦子⽈曰：吾⼗〸十有五⽽而志于学，
五⼗〸十⽽而知天命，六⼗〸十⽽而⽿耳顺，七⼗〸十从⼼心所欲不矩。
六十而耳，七十从心所欲不矩。”). ”).15 1
on, as for anFor a humanperson,
individual organization,
there isasalso
for an individual
a process of person, there is also a process
of self-evolution
promotion through persistentandlearning
self-promotion
from studythroughandpersistent learning from study
and practice. As per Confucius’s summary, the career of global South-South
ucius’s summary, the career of global South-South
Coalition or Cooperation (hereinafter SSC) is now just entering the life stage
n (hereinafter
of SSC)
“knowingis nowthejust entering
decrees the life provided
of Heaven”, stage of one recognises the establish-
f Heaven”, provided one recognises
ment of Group 77 in 1964the as establishment
its origin. of
origin. But how shall the phrase “knowing the decrees of Heaven” be interpreted?
e “knowing the decreestoofpopular
According Heaven” be interpreted?
opinions among Confucian scholars, this phrase means
that “one begins to realize his mission, and endeavours to accomplish it”.2 In-
opinions among Confucian scholars, this phrase means
dividuals and organizations have taken on 16 different characteristics on this
alize his mission, and endeavours
point. Normally speaking,toit accomplish
takes decadesit”. to accumulate life experience and
zations havetotaken
expand onthedifferent
field ofcharacteristics on this can gradually make sense
vision before individuals
ng, it takes decades
of their toownaccumulate
mission (aslifefor
experience
Confuciusand to this process had taken 50
himself,
years), while
on before individuals canmost organizations
gradually are born
make sense of or created with a purpose, and thus
their
nfucius himself, this process had taken 50 years), whileof Algiers of Group 77, the SSC
are vested with missions. As per the Charter
career comprises mainly the following categories of missions: on the politi-
born or created with a purpose, and thus are vested with
cal level, to fully realise the independence of South Countries and to consoli-
arter of Algiers of Groupamong
date equality 77, the SSCnations;
world career on comprises
the economic level, to promote coop-
categories oferation
missions: on the political
and common growth amonglevel, South
to fully
countries in fields like trade, in-
e of South Countries
vestment, and to consolidate
finance and developmentequalityaid;among
on the technical level, to encourage
the exchange
economic level, to promoteand proliferation
cooperationofand technologies.
common 3 In order to accomplish these
countries in missions,
fields like onetrade,
important approachfinance
investment, is to fight
andfor a fairer and more reasona-
ble new international economic
the technical level, to encourage the exchange and order (hereinafter NIEO) through reforming
the existed unfair and unreasonable old international economic order (here-
1 S ee Confucius, The Analects (translated by James Legge), Book II, Wei Chang, Chapter IV.
2 See e.g., Peirong FU, Reading the Analects, available at: http://blog.sina.com.cn/s/blog_4a57bcc
cts (translated by James Legge),last
9010004zi.html, Bookaccessed on Chang,
II, Wei August 31, 2014. IV.
Chapter FU ascribes the source of this mission to the
Heaven, thus the terminology “decrees of Heaven”. He summarizes Confucius’s mission as the
Reading the following
Analects,threeavailable
contents: firstly, to take on political and educational activity, in order to make the
at: http://blog.sina.com.cn/s/
society return to the righteous path; secondly, to choose what is good and hold fast to it, in order
ml, last accessed on August 31, 2014. FU ascribes the source of this
to forge oneself into perfectness; thirdly, to understand and accept the hardness and helplessness
n, thus the terminology
embedded in“decrees of toHeaven”.
destiny, and Heis summarizes
do one’s best good enough.
the following three the
3 Besides contents:
SSC, South-North Cooperation political
firstly, to take on is also keenand
to the comprehensive development of the
order to make the society
world returncountries
developing to the righteous
or even topath; secondly,
the whole to
international society. South-South Cooperation
d hold fast to it, andin order to forgeCooperation
South-North oneself intoareperfectness; thirdly,
two critical parts to cooperation, but they differ greatly
of global
he hardness andinhelplessness embedded
the sense of political in destiny,
foundation, and tofoundation,
economic do one’s inherent essence and practical effect.
For detailed analysis, see An CHEN, An CHEN on International Economic Law, Fudan Universi-
ty Press, 2008, Vol. I, pp.455 – 462.
nternational Round Table

inafter OIEO)4, so as to construct an international environment in which the

South Countries can acquire a better chance to develop.5
However, there has always been a contradiction, known as the South–North
Contradiction, between the strong powers and the weak states during the
course of the development of international economic order and internation-
al economic law (hereinafter IEL), since the former have always intended to
reserve and expand their vested interests, while the latter struggled to secure
equal economic rights and to establish an NIEO. The South–North Contra-
diction boils down to the redistribution of wealth around the globe. And the
fundamental difference between NIEO and OIEO is based on fairness in re-
distributing global wealth. The OIEO has always been known as a serious
block against the course of the South Countries seeking for their economic
and political independence. It is under this logic that the SSC career could
be understood as the construction of a fairer NIEO, which is then bound to
closely relate to IEL.
As is commonly accepted in the academia in China as well as around the
globe, IEL can be mainly divided into international trade law (including trade
of goods, services and technologies), international investment law and inter-
national financial law. Meanwhile, fundamental issues in public internation-
al law such as sovereign equality and the attribution of natural resources can
also directly influence the theory as well as the practice of IEL. Consequent-
ly, we could review the progress of SSC career in fulfilling its missions by in-
vestigating the historical facts of law-making, law-interpreting, law-enforc-
ing and law-reforming in these sub-fields or branches of international (eco-
nomic) law. Especially at this turning point, it is of great necessity to retro-
spect the past and comb the achievements as well as difficulties of SSC in its
historical course, and to contemplate the changed and changing background
of SSC at present time, so as to look forward to possible future development.
With our faith in SSC re-affirmed, we shall set out once again, and promote
further this righteous strategy. For Chinese scholars, there is yet another un-
avoidable task or mission, to reveal towards the world academia the real atti-
4 In a given historical period, international economic relations in international economic inter-
course tend to turn into a kind of relatively stable pattern, structure, or model, which is com-
monly labeled as international economic order. The establishment and changes of international
economic order are determined by the balance of economic, political, and military strength of
members of the international community. In the course of international fighting, compromise,
and cooperation, international rules of international economy, i.e., international economic law,
binding and enforceable to some extent, are gradually adopted to uphold the existing order. In-
ternational economic law is not only an important tool for consolidating the existing internation-
al economic order but also a crucial means of promoting the process of reforming the existing
order and establishing the NIEO. See An CHEN, The Voice from China: An CHEN on Interna-
tional Economic Law, Springer-verlag Press, 2014, p.168.
5 See also What is South-South Cooperation, available at: http://ssc.undp.org/content/ssc/about/
what_is_ssc.html.
23
tude of this newly arising power on SSC course, against the many doubts or
even malicious speculations preached in Western world.
This Article is thus organised as follows: Chapter I will make a brief review of
the SSC course in the past half century; through four sub-chapters of Chap-
ter II, different branches of IEL will be investigated in terms of practical ex-
periences of law-making, law-reforming and their subsequent performance;
Chapter III will try to provide some China-specific points of views on this is-
sue; Chapter IV will then conclude.
1. From Bandung to Fortaleza: the Sinuous Course

of SSC’s History
After the Second World War, the developing countries made strong appeals
for the complete transformation of the their accumulated poverty caused by
centuries of colonial rule; for the complete elimination of the inequity in the
international allocation of wealth; for the renewal of international law-mak-
ing; and for the total reform of the inequitable, unjustifiable old internation-
al economic order to institute an equitable and reasonable new international
economic order. Those appeals, though legitimate, were constantly blocked
and confounded by the hegemony of the few, those who carried out the orig-
inal colonial hegemony even in contemporary times, and who by all means
intended to maintain and extend their vested rights and maintain the estab-
lished system of international law-making and the old international econom-
ic order, backed up by their accumulated strong economic power after colo-
nial rule and plunder. Due to the sharp contrast in power between the South
and the North, the course of the South’s pursuit of the legitimate appeals
could only advance arduously and slowly.
The Final Communiqué of the Asian-African Conference, in April 1955, de-
clared to the world the goal and code of conduct of the weak and powerless
Asian and African nations, which included the rapid eradication of the evils
of colonialism, the maintenance of sovereignty and national independence
and international co-operation conducted on the basis of mutual benefit and
sovereignty equality. For this purpose, the Asia-Africa nations, “when neces-
sary, could take collective actions and take accordant position, or institute com-
mon policy, or make forehand consultation in international negotiations so as
to stimulate their common economic interest”.6 It can be said that, it was that
time when the developing countries had shaped clear strategic thought as to
the nature of the South–South coalition under the circumstances of acute
South–North contradictions and the sharp contrast in power between the
weak South and the strong North. From then on, the SSC started a rather un-
smooth yet dedicated journey, which could be roughly generalized under the
following categories and historical phases.
6 e Final Communiqué of the Asian–African Conference, An Economic Co-operation; available at:

Th
http://big5.china.com.cn/chinese/2005/wlhy50/838285.htm (in Chinese).
1.1. Group of 77
The Group of 777, established within the United Nations Conference on
Trade and Development (hereinafter UNCTAD) in June 1964, is the most
important structure under which the developing countries carry out the SSC
strategy and is also an important means for developing countries to renew
international law-making and impel the regeneration of the OIEL through
the consolidation of otherwise dispersed power.
As the largest Third World coalition in the United Nations, the Group of 77
has been in existence for 50 years, during which it has undergone a rough de-
velopment process. The Group of 77, in the general course of South–North
contradictions, the South–North dialogue and South–North co-operation,
has, through this South–South coalition, made great accomplishments in
the aspect of renewing international law-making but has also met with enor-
mous hardships leading to the diminishment of its influence.
The joint struggle of the Group of 77 in its initial period was highly fruitful,
and two events stand out. (1) The Group of 77, during the period 1964 to
1968, strongly advocated and instituted at first hand reformative guidelines
and jurisprudential principles, inter alia, on non-preferential treatment that
is favourable to the developing countries, promoting the partial reform of the
old General Agreement on Tariffs and Trade (hereinafter GATT) 1947 legal
system.8 (2) In the second place, under the impetus of the Group of 77, the
Declaration on the Establishment of a New International Economic Order9 was
passed, and the Charter of Economic Rights and Duties of States was adopt-
ed by an overwhelming majority10 by the United Nations General Assembly.
7 At this time, the Members of the Group of 77 number 133, although its original name of histor-
ical significance is followed. After China’s restoration to its membership in the United Nations
and the Permanent Membership in the Security Council, it has kept in close contact with the
Group of 77, actively supporting the Group’s defense of the small and weak nations’ legitimate
interests, along with their justifiable demands for the renewal of international law-making and
the push for regeneration of the international economic order. They usually take a stand under
the model of “Group 77 and China”. See Clement Robes (Chair for the Group of 77 and China
for 1999), The Group of 77 and China: Current Priorities, New York, 12 January 1999; available
at: www.southcentre.org/southletter/s133/s133-06.htm.
8 See, respectively, the Decision of the GATT L/3545,L/4093; Wang Xuan, The Trade Liberaliza-
tion Under GATT; and Gao Yanping, The GSP in International Trade, Chinese International
Law Journal, 1986, pp.44, 59, 60, 63 and 161–163.
9 Declaration for the Establishment of a New International Economic Order, United Nations Gener-
al Assembly document A/RES/S-6/3201 of 1 May 1974, available at: http://www.un-documents.

net/s6r3201.htm, last accessed on August 31, 2014.
10 Charter of Economic Rights and Duties of States: United Nations General Assembly document
A/RES/29/3281 of 12 December 1974, available at: http://www.un-documents.net/a29r3281.

htm, last accessed on August 31, 2014.
The Charter was adopted with 120 votes of approval, among which were mainly developing
countries; the 6 votes of dissent were from the United States, Great Britain, the Federal Republic
of Germany, Denmark, Belgium and Luxemburg. Ten countries, including Japan, France, Italy,
Canada, Austria, Netherlands, Norway, Spain, Ireland and Israel, abstained from voting.
25
From the early eighties to the mid-nineties of the 20th century, due to the
comprehensive effect of various reasons, in many international negotiations,
especially the eight-year long (1986–1994) GATT/WTO Uruguay Round ne-
gotiations and then emerging bilateral negotiations on concluding invest-
ment treaties, the developing countries, failing to jointly take the same po-
sition, to make collective decisions or to take joint action, were regularly
trapped in the position of inferiority in multilateral negotiations. Developed
countries, especially the economic hegemonists, in contrast, could dominate
in the institution of grand international trade/investment policy and legally
binding game rules (legal rules) under the old system through the exercise of
their power to manipulate the whole situation.
1.2. The South Center

Therefore, the developing countries, after reflecting upon and summariz-
ing the failures and lessons in this phase, recognized the importance of the
SSC in the South–North Dialogue and the renewal of international law-mak-
ing and commenced to integrate their own power. They reached in 1994 the
Agreement to Establish the South Centre, and an intergovernmental organiza-
tion, the South Centre, was thereby created by the South for the South, with
the main purpose to strengthen the unity of Southern countries and rein-
force research on the various issues that developing countries are confronted
with, especially those they faced under the circumstances of escalated eco-
nomic globalization, along with their supposed common policy orientation
and policy on collective action, bringing about proposals before the Group of
77 and all other developing countries as reference or for adoption.
Subsequently, the South Centre turned out to be a small think tank that pro-
vides tactics for the developing countries. As time lapses, it is evident that
the South Centre increasingly performs the role of a think tank in the aspect
of assembling the will and power of the developing countries, reinforcing
South–South union, promoting South–North equitable dialogue, and mutu-
ally benefiting cooperation and the renewal of international law-making.
The research of the South Centre emphasizes that, under the escalated devel-
opment of economic globalization, the macroeconomic working of the glob-
al economy and relevant international law-making were in fact subject to
control and manipulation by the few economic powers which comprise the
Group of 7 and that no single developing countries could change the status
quo on its own. Therefore, in the later international fora and multilateral ne-
gotiations on a series of global issues, it is more necessary than ever for the
developing countries of the South to take joint actions to win an equitable,
justified, and reasonable outcome. To defend the fundamental common in-
terest of developing countries, it is imperative for the South to adapt itself to
the change of circumstances, through delicate research and scientific design,
and to reorient and renew the guidelines of the Group of 77, harmonizing
various interests and reinforcing common understanding and internal cohe-
sion.11
1.3. Summit Meeting of Group 77

The Summit Meeting of the Group of 77 held in Havana, Cuba, in 2000 was
the first-ever high-level and large-scale meeting in the 36 years since the for-
mation of the Group of 77, which was attended by heads of states or govern-
ments from 132 developing countries to deliberate over the macro working
of the global economy, the main themes of which were how to cope with the
severe challenges and risks posed by the escalated economic globalization
to the South countries; how to press the South–North Dialogue to strive for
both the South and the North’s equitable participation in the decision- and
rule-making in the macroeconomic working of the global economy; and how
to institute an equitable, fair, and reasonable international new economic or-
der through mutual South–North beneficial cooperation. The Summit con-
cluded with release of the Declaration of the South Summit and the Havana
Programme of Action, the latter promulgated with the purpose of implement-
ing the declaration.12
Because the Group of 77 is a loose organization which imperatively needs
a rather stable core institution, the Summit made a decision to set up the
South Coordination Commission, which will include the chairmen of ASE-
AN (the Association of Southeast Asian Nations), CARICOM (the Caribbe-
an Community and Common Market), OAU (Organization of African Uni-
ty), NAM (the Non-Aligned Movement), and similar regional organizations,
whose aim is to prepare the South better for negotiations and to follow up on
the Summit’s action plan.13
11 See Thirty Years of the Group of 77 (1964–1994), United for a Global Partnership for Development
and Peace, South Centre Publications, 1994, pp. 13–16. See also The Future of the Group of 77,
South Centre Publications, 1996, pp. 5–11.
12 See Declaration of the South Summit; Havana Program of Action; available at: www.g77.org/
Docs/Declaration_G77Summit.htm and www.g77.org/Docs/ProgrammeofAction_G77Summit.
htm, respectively. The Chinese high-level delegation attended this South Summit meeting, at
which the then vice premier of China delivered a lengthy speech stressing that the development
of economic globalization is in more imperative need than ever of the institution of a fair and
reasonable international political and economic order, that South–South cooperation is in the
first place a spirit of union while also being an important approach through which the develop-
ing countries jointly strive for self-reliance and seek mutual development, that the exaltation of
the spirit of union and the further consolidation of South–South cooperation is necessary and
emergent when the South is confronted with the same challenges, and that only united could the
status of the developing countries in the South–North dialogue be enhanced and could effective-
ly participate in international economic decision-making, defending their interests in the pro-
cess of globalization to the utmost. See Li Lanqing, Speech delivered at the south summit meet-
ing. People’s Daily (China), 15 April 2000.
13 See Martin Khor. Havana summit, a defining moment in G77 history; coordinating commission
set up. Third World Economics, No. 232, 2000, pp. 2–3, and 12–14.
27
The above measure and actions taken attracted the attention of the world and
spurred the reunion and rally of the weak Third World nations to emanate
fresh spirit of joint struggle. Therefore, it was considered by the internation-
al media to mark the turning point in the development history of the Group
of 77, symbolizing the new march of the South union to renew international
law-making and renovate the international economic order.14
Contemporaneously, the original GATT system has evolved into the WTO
system, and the Group of 77, as a developing countries group, is confront-
ed with the new assignment of how to contribute to the new system that en-
joys the moniker of the “economic United Nations” and of how to enhance
its privilege to present its views and to meaningfully participate in decision-
making.
1.4. The Launch of the Doha Round and the Accession of

China to the WTO
Under the circumstances of the developing countries’ reunion and vehement
demands, on 10 November 2001, the Fourth WTO Ministerial Conference,
held in Doha, Qatar, released the Doha Declaration, which set forth that a
new round of multilateral trade negotiations should be launched to center
on the development concerns of developing countries, aimed at the neces-
sary amelioration and renovation of the existing WTO systems and rules that
were part of international economic legislation. At the conference, the Pro-
tocol on China’s Accession to the WTO was adopted and China became a
formal member of the WTO as of 11 December 2001, which adds to South–
South Cooperation and the joint struggle within the WTO system an under-
pinning power.
From a jurisprudential perspective, WTO regime and its multilateral rules
consist of an important component to the contemporary IEL. As a result, the
legal essence or legal position of DDR, which has been attracting worldwide
attention for 10 years, is a new round of global consultation on how to elim-
inate the old unfairness and establish the new fairness and how to carry out
law-reforming to a deeper degree against some existed unfair IEL relating to
global trade.
Topics for negotiation in DDR include not only traditional fields such as ag-
riculture, but also novel fields such as service, intellectual property, market
transparency, foreign investment, etc., which have far exceeded those of oth-
er Rounds of Negotiations in previous GATT period. Such wide range of ne-
gotiating topics have led to the conglomeration of various interest groups,
whose main political goals may overlap or conflict with each other, partial-
14 S ee South Summit in Havana to Mark a “Turning Point” for Developing Countries; available at:
www.g77.org/summit/pressrelease; see also Khor, ibid.
ly responsible for DDR’s really slow progress. On September 14, 2003, the
fifth WTO Ministerial Meeting saw no happy ending because of huge di-
vergence between the North and South. After two years’ bargains and com-
promises, DDR was restarted at the sixth WTO Ministerial Meeting held in
Hong Kong during December 13 to 18, 2005, which had broken the stagna-
tion since 2003 with some positive progress, yet still left some critical disput-
ing matters unresolved. Since the global financial crisis in 2008, lots of coun-
tries have seen the uprise of trade protectionism, making the multilateral ne-
gotiation even harder to proceed. On the ninth Ministerial Meeting in De-
cember 2013, DDR had finally seen some commonly accepted arrangements,
also known as Bali Package. China has played a coordinating and promoting
role during this process.
1.5. BRICS Leaders’ Meeting

As a group of power in the South coalition that cannot be ignored or unde-
restimated, the BRICS countries have since 2009 successfully held six rounds
of leaders’ meetings, each of which has all yielded plentiful and substantial
outcomes. All previous sessions of BRICS Leaders’ Meeting share a common
aim to promote the reformation of international financial order, and has ma-
de a continuous progress on this subject matter. This proves to be huge and
long-term contributions to promote and guide the SSC career. In the recent
sixth Brazilian Meeting, the BRICS Leaders have announced the Fortaleza
Declaration15, revealing a definite plan to construct a development bank, ai-
ming to compete with the existed international financial order and rule sy-
stem dominant by the North developed countries, which, for the many South
countries, has undoubtedly shown an optimistic future. This continuously
deepening cooperation carried out among the BRICS countries especially
since 2008 is not only a successful narrow-range demonstration of SSC, but
also a very powerful propelling force to the global SSC career.
***
From the above sketchy reflection of the history, it is not difficult to infer
that:
In the first place, the SSC and the renovation of international economic law-
making, from Bandung to Fortaleza over the last 60 years, have advanced
along a meandering way. In fact, Ever since the end of World War II (herei-
nafter WWII), struggles between powerful, developed states and weak, deve-
loping states have been permeating the whole developing process of global
economy. The former endeavors to maintain the established IEO and IEL to
protect and amplify their vested economic interests, while the latter endea-
15 vailable at: http://brics6.itamaraty.gov.br/category-english/21-documents/223-sixth-summit-

A
declaration-and-action-plan, last accessed on August 31, 2014.
29
vors to renew the established IEO and IEL to acquire a level playing field and
proper economic rights and interests.
For over 60 years, these struggles usually temporarily paused with the two si-
des reaching a compromise, after which new conflicts would arise from new
contradictions, and so on and so forth. It seems that the historical course
could be generalized as the spiral “6C Track” or the “6C Rule”: Contradi-
ction →Conflict →Consultation →Compromise →Cooperation →Coordination
→new Contradiction…. But each new circle is on a spiral upper level rather
than on an exactly repetitive old one, thus pushing IEO and its relating IEL
towards a fairer level at a higher development stage. Consequently, the eco-
nomic status and rights of the international weak groups are able to acquire
corresponding improvements and safeguards.
Secondly, the DDR negotiations launched at the Doha Conference and the
capriciousness of the Cancún Conference and the Hong Kong Conference,
as well as the final initial agreements reached in late 2013 in Bali, in essence,
was a new phase in the process of South–North Conflict in the past 60 years
and the sinuous SSC and the renovation of international economic legisla-
tion. It is also a practical evidence of the 6C Rule.
Thirdly, the continuous deepening cooperation among the strong-built BRI-
CS countries especially since the 2008 financial crisis, is not only itself a suc-
cessful demonstration of SSC, but also a powerful propelling force positive to
the global SSC career.
Fourthly, taking history as a mirror, one can also discern that, the global SSC
career have as of now, at least within IEL practices, restricted to law-making
and law-reforming, rather than law-interpreting or law-enforcing. Although
the importance of establishing fairer international economic rules and refor-
ming the existed unfair ones is needless to emphasize, the life of legal rules
is, however, embedded in practice. In other words, to accomplish the Hea-
ven granted missions, SSC should not be satisfied with the success of making
or reforming rules, it should also pay more attention to the practice. The fol-
lowing chapter would follow such logic, and make a succinct survey on this
matter under different IEL branches.
2. SSC in International Economic Legal Practices

2.1. SSC-type of Law-Making under UN and
its Subsequent Queries
UN has always been an important forum where the South countries could
jointly express their stand and push for a set of fairer rules to establish. This
type of law-making activity saw its climax in 1970s. Under the propulsion of
Group 77 and UNCTAD, the 1974 UN Assembly passed the Declaration of
Establishing a New International Economic Order, and decided to adopt the
Charter of Economic Rights and Duties of States with an overwhelming majo-

rity, which were also the most representative SSC-type of law-making under
the framework of UN.
The jurisprudence in the Declaration and the Charter can be concisely gene-
ralized as the following points.
In the first place, they established that the economic sovereignty of nations is
non-strippable, non-alienable and infrangible. Every State has and shall fre-
ely exercise full permanent sovereignty, including possession, use and dispo-
sal, over all its wealth, natural resources and economic activities. Each state
has the right to nationalize, expropriate or transfer ownership of foreign pro-
perty to its nationals, with appropriate compensation. Each state has the ri-
ght to regulate and supervise the activities of transnational corporation wi-
thin its national jurisdiction and take measures to ensure that such activities
comply with its law and conform to its economic and social policies. No Sta-
te shall be compelled to grant preferential treatment to foreign investment.
(For example, Declaration of Establishing a New International Economic Or-
der, Articles 4(e), 4(g); see also Charter of Economic Rights and Duties of Sta-
tes, Articles 2, 17.)
Secondly, the two instruments established that the principle of the realloca-
tion of the world’s wealth and economic benefits in accordance with the prin-
ciples of fairness, reasonableness and full equity with an aim to control and
eradicate the vicious circle of the wealthy States becoming increasingly we-
althy while the poor States become ever poorer, for which the unreasonable
and inequitable legal system in areas such as international production assign-
ment, international trade, international technology transfer, international ta-
xation, international monetary system, international financing, international
transportation and high-seas exploitation of natural resources must be refor-
med. Meanwhile, non-reciprocal preferential treatment should be accorded
to developing countries for this end.
Thirdly, the two documents established that all States, especially developing
States are juridically equal and, as equal members of the international com-
munity, have the right to participate fully and effectively in the international
decision-making process in the solution of world economic, financial and
monetary problems, inter alia, through the appropriate international organi-
zations in accordance with their existing and evolving rules, and to share in
the benefits resulting therefrom. International affairs should be jointly con-
ducted by States around the world, neither to be monopolized by a few super
powers nor to be manipulated by a few wealthy States. Therefore, the existing
decision-making mechanism in some international organizations and affairs
under which the powerful and big States could bully the weak and small Sta-
tes should be transformed. (For example, See Declaration of Establishing a
New International Economic Order, Articles 3, 4(a), 4(c); see also Charter of
Economic Rights and Duties of States, Preamble, Articles 2.2(c), 17.)
31
Meanwhile, the collective power formed by agglomerating the scattered

strength of many weak nations and developing countries, played its due role
at various political and economic stages within UN regime. The majority ad-
vantage under the equal voting mechanism was well utilized in the following
fields: Firstly, to accelerate various UN organizations to pass and adopt rela-
tively fair and reasonable decisions advantageous to developing countries, in-
cluding a variety of legally bound decisions. Secondly, to promote the establi-
shment of some new organizations and mechanisms within UN, to imple-
ment various programs on helping weak and poor nations for their econo-
mic developments, and to continuously enact and apply the UN Decades of
Development16. Thirdly, to criticize, resist and constrain political and econo-
mic hegemony in international society through various debates and resolu-
tions in UN. Fourthly, to urge corresponding UN organizations to strengthen
the research on, and adopt relevant efficient measures to gradually resolve
big problems such as severe imbalance in economic development around the
world, severe unfairness in the distribution of global wealth, and continuou-
sly expanding gap between North and South.
The fundamental legal concepts and jurisprudential principles in these afore-
mentioned guidelines and codes for the nature of international instruments
is a significant landmark in the development of the basics of the new type of
international economic normative system, laying down the foundation for its
later further establishment. After an operation of approximately thirty years,
those basic legal concepts and jurisprudential principles won the hearts of
people around the world and were gradually developed as the opinio juris of
the contemporary international community.17
Although this being said, such SSC-type of law-making with its many out-
comes have seen lots of obstructing force in the enforcing phase. The de-
veloped countries have continuously expressed their opposition against one
of the core rules in the Charter, namely the expropriation right of the host
states on the property of foreign investors and the accompanied compensa-
tion standards.18 This fact has led to some critics that these guidelines are on-
ly political slogans rather than applicable legal rules, because of the lack of
opinio juris.19 Although traditional theory recognizes that the resolutions of
UN Assembly can constitute a very powerful evidence which helps to iden-
16 S ee South Centre, Thirty Years of the Group of 77 (1964–1994), United for a Global Partnership
for Development and Peace, South Centre Publications, 1994, pp.1 – 8.
17 An CHEN, The Voice from China: An CHEN on International Economic Law, Springer-verlag
Press, 2014, pp.325 – 326.

18 See Charter of Economic Rights and Duties of States, Art. 2(c).
19 See A. Cassese, International Law, 2nd ed., Oxford University Press, 2005, pp.507 – 509.
tify customary international rules,20 there are still a number of scholars pro-
pose otherwise.
For example, up to this day, in his globally prevalent one-volume teaching
material with the title International Economic Law, which was published at
2002 and revised and republished at 2008, Professor Lowenfeld had consist-
ently stuck to his American position. The global just proposals and jurispru-
dential opinions – such as to reform OIEO, to establish NIEO, to stipulate
new norms of IEL, and to maintain and respect the economic sovereignty
and economic legislations of each weak nation – strongly advocated by the
developing countries who constitute 70 percent of world’s population, were
either ignored, or disparaged, or negated. For example, the Charter of the
Rights and Duties of States, which was passed with an overwhelming ma-
jority in the General Assembly of United Nations in 1974, has won wide-
spread identification of international society, and has already formed opinion
juris through 2 – 3 decades of practice. Notwithstanding this fact, in Lowen-
feld’s globally prevalent teaching material, the Charter is constantly deemed
as heterodoxy and “departure from the traditional international law”21, thus
with no legally mandatory force.
This Article wishes to list out the following queries against such kind of he-
gemonic views:
1. The Charter of the Rights and Duties of States, which was passed with an
overwhelming majority in the General Assembly of United Nations in
1974, reflects the common national will and the opinio juris communis
of the overwhelming majority of members of contemporary internation-
al society. Thus, it accords most with the principle of democracy that the
minority shall be subordinate to the majority; and it embodies most the
principle of human rights (including sovereignty and the right to devel-
opment) that safeguards billions of disadvantageous populations’ human
rights of international society. US has always been praising itself as “dem-
ocratic model of the world” and “guardian for human rights in the world”,
and is mouthful of humanity, justice and morality. Then, vis-à-vis the crit-
ical issue on the human rights (sovereignty and the right to development)
of international disadvantageous groups, how would such a country play
fast and loose, or even totally betray and discard the principle of democ-
racy and that of human rights, which it consistently holds as the highest
criteria?
2. After the adoption of the Charter, “more than a quarter century later”,
towards the global opinio juris and legal idea that have already formed
20 See M. Shaw, International Law (1977), p.550. See also I. Brownlie, Principles of Public Interna-
tional Law (1966), p.14; see also R. Y. Jennings, The Discipline of International Law, Lord McNair
Memorial Lecture, ILA 57 Conference, Madrid, offprint, p.11.
21 See Andreas F. Lowenfeld, International Economic Law, Oxford University Press, 2nd ed., 2008,
pp.491 – 493.
33
through decades of practice by international society, how would such a

country go so far as to merely turn a blind eye and a deaf ear, and still de-
fine to be “essentially political”? Why could not the Charter be defined le-
gal, and become legally bound norms of conduct?
3. For the last 40 years ever since 1960s, as “appeals to sovereignty and other
echoes” from global weak groups in the United Nations and other interna-
tional fora have been lasting and “continued to be heard”, how would the
number one country in the world, who regards “to lead the world” and to
guide the future direction of the world as its own responsibility, stuff its
ears and refuse to listen, or act as if it had not heard?
4. How would US, who praises itself as pioneer of the era, be always pre-
occupied with and unable to part from the out-of-dated, traditional in-
ternational legal norms and the colonists’ moral concept, which were
established in the colonial era? And vis-à-vis the newly formed interna-
tional legal norms which reflect the new time spirit of the 21st century,
how would such a country be so incongruous, disdainful, and even hostile
to these up-to-dated norms?
For every unselfish, magnanimous and impartial law scholars, the above
questions are all seemingly worthy to be deliberated, doubted and compared;
and these questions are also not too difficult to be dissected, distinguished
from right and wrong, and chosen between acceptance and rejection.
2.2. SSC-type of Law-Reforming under GATT and

its afterwards Practice
In October 1947, 23 countries signed General Agreement on Tariffs and
Trade (hereinafter the GATT 1947) in Geneva, and then founded a corre-
sponding organization. The purport of this Agreement is to promote inter-
national cooperation on tariffs and trade around the world, thus to liberalize
international trade. The powerful majority of then participants were western
developed countries. Contents of relating provisions of the Agreement main-
ly reflected the interests and demands of the western developed countries
led by US. At that time, most countries from the third world were still under
colonial or semi-colonial domination, with no representatives being able to
participate. Consequently, their interests and wills could not be reflected let
alone respected in this Agreement.
It is stipulated in GATT 1947 that all Contracting Parties should grant un-
conditionally reciprocal treatments to each other in international trade, sub-
stantially reduce the tariffs on an equal footing, and gradually realize the lib-
eralization of international trade.22 This principle is basically fair if applied
among developed countries whose economic development levels are simi-
22 See e.g., GATT 1947, Article I(1).

lar. However, it is obviously unfair to unconditionally apply this principle be-

tween the developed countries group and the developing countries group, as
their economic development levels differ greatly.23 With developing countries
reducing their import tariffs, developed countries can seize lots of benefits on
the basis of their advanced producing technology, abundant capital, strong
competitive capacity and tremendous total amount of exports. On the con-
trary, far lesser benefits are developing countries able to make from an equal
reduction in tariffs of developed countries, because of their weak competitive
capacity in international market and their tiny total amount of exports. What
is the worse, reducing tariffs equally in both developed countries and devel-
oping countries always incur loss of internal markets to developing countries,
damage to their national industry and shrinkage in their external trade.
From middle 1940s to 1960s, numerous weak states around the world had
got rid of foreign domination and won independent status, ready to partici-
pate in international economic and trade affairs on their own will. They in-
creasingly found and noticed in practice that the IEL principles and relating
norms embedded within GATT 1947 were deeply characterized by OIEO.
Along with old principles and norms in other fields of IEL, the IEL princi-
ples and relating norms embedded within GATT 1947 are also constantly
confronted with the historical demand for ceaseless and fundamental refor-
mation.
Through years of united campaign of numerous developing countries, GATT
1947 as an international conventional organization was forced to make par-
tial refinements and reformations for as many as three times with regard to
the originally rigid system of unconditionally “reciprocal, most-favored-na-
tion, and nondiscriminatory treatment,” respectively, in November 196424,
23 enerally speaking, there no longer exists unfair economic intercourse between contemporary
G
developed countries and developing countries based on unequal treaties. The overall economic
strength of the developed countries is still incredibly strong after hundreds of years of accumula-
tion and exploitation. Multinational enterprises based in these countries with exceptional man-
agement techniques enjoy overwhelming advantages in technology and capital. Seducing the
developing countries and their domestic industries, which are weak and vulnerable after years
of exploitation as colonies, into competing freely with the developed countries and their multi-
national enterprises in the international market, is no difference from seducing the developing
countries into suicide. This is nothing but a simple common sense. The extremely unfair result
of a fight between a well-trained boxer and a woman born weak and illy-cared-for after birth is
obvious and self-evident, especially when they are following the same rule. In order to rectify
the actual unfairness hidden behind the formal fairness, it is necessary to grant weak developing
countries unilateral preferential treatments, so as to counterbalance their sufferings and losses in
history. Such idea of fairness is pragmatic as well as scientific. Karl Marx had pointed out near-
ly a hundred years ago while dissecting the equal rights that: to avoid all those malpractices, the
rights should be unequal rather than equal. See An CHEN, On the Substantial Development of
Equity over Equality within the Principle of Equality and Reciprocity, in An CHEN on Interna-
tional Economic Law, Fudan University Press, 2008, pp.444 – 454.
24 See UNCTAD, Proceedings of the United Nations Conference on Trade and Development, Vol. I
(Sales No.: 64.II.B.11), United Nations, 1964, pp.18, 25-26; See also United Nations, About GSP,
35
June 1971, and November 1979. The Nonreciprocal and Generalized System
of Preferences especially to products exported from developing countries and
that in tariffs was gradually approved and confirmed step by step.25 Specifi-
cally speaking,
[A] In November 1964, the GATT Contracting Parties agreed to add a spe-
cial Part IV containing Articles 36–38 with title Trade and Development ad-
vantageous to developing countries. Thus, the equitable principle of non-rec-
iprocity favorable to international weak groups was initiatively enacted in
GATT regime.
[B] In June 1971, the GATT Contracting Parties approved a waiver to Ar-
ticle I of the General Agreement for 10 years in order to authorize the GSP
scheme.26
[C] Later, in November 1979, the Contracting Parties decided to adopt the
Enabling Clause. Decision of the Contracting Parties of 28 November 1979
(26S/203) entitled “Differential and more favourable treatment, reciprocity
and fuller participation of developing countries,”27 created a permanent waiv-
er to the most-favored-nation clause to allow preference-giving countries to
grant preferential tariff treatment under their respective GSP schemes. This
Enabling Clause was later absorbed in GATT1947, and became one specific
paragraph. 28
Thus, the international weak groups eventually succeeded in seeking a sig-
nificant and permanent law-reforming relating to Article 1 of GATT 1947:
from “unconditionally reciprocal treatments” finally reforming to “the devel-
oped countries do not expect reciprocity” at all. As mentioned above, such
a process has taken a period at least of 15 years, from 1964 to 1979. This
process gave a crucial enlightenment and proof to the international weak
groups: Notwithstanding the path for their seeking law-reforming has inev-
itably been rugged and tough, rather than smooth, however, by unswerving
collective struggle, they will surely win a bright future.
The subsequent practices of such reformed rules are, however, a different sort
of story. From 1970 on, relating GATT Contracting Parties began to gradu-
at http://www.unctad.org/templates/Page.asp?intItemID=2309&lang=1., Oct. 02, 2010; United

Nations, The History of UNCTAD 1964-1984, at http://www.unctad.org/templates/webflyer.asp?
docid=13749&intItemID=3358&lang=1&mode=downloads., Oct. 02, 2010.
25 See, respectively, the Decision of the GATT L/3545,L/4093; Wang Xuan, The Trade Liberaliza-
tion Under GATT; and Gao Yanping, The GSP in International Trade, Chinese International Law
Journal, 1986, pp.44, 59, 60, 63 and 161–163.
26 GATT, Generalized System of Preferences (Decision of 25 June 1971, L/3545, BISD 18S/24), at
http://www.lexisnexis.com/, Oct. 22, 2010.

27 GATT, Differential and More Favourable Treatment Reciprocity and Fuller Participation of De-
veloping Countries(Decision of 28 November 1979 , L/4903, BISD 26S/203-205), at http://www.

wto.org/english/docs_e/legal_e/enabling1979_e.htm., Oct. 22, 2010.
28 See GATT 1947, Annex I, Ad Article XXXVI.
ally implement GSP29. Although they had granted a certain amount of uni-
lateral tariff reduction to developing countries trade partners, with regards
to critical trade items such as foods, textiles and petroleum products, multi-
ple restrictions had been set. The U.S. even adopted a standard of “needs for
competition”, enabling itself to initiate investigation against a certain trade
product whenever needs arise. Under such investigation, the U.S. could uni-
laterally terminate the preferential tariff of such trade product from develop-
ing countries if it had constituted practical competition to like products in
the U.S.
During the Tokyo Round Negotiation initiated since 1979, developed coun-
tries launched another round of counter-attack against the developing coun-
tries’ demand for law-reforming. For example, the newly added “Graduation
Clause” demands developing countries to undertake more GATT responsi-
bilities once their own national strength and wealth had been elevated to a
certain level, and relating developed countries would then eliminate them
from their original GSP schemes30. And the adoption of conditional most-
favored-nation strategy had enabled developed countries to rule out those
developing countries who chose not to sign on the package deal of Tokyo
Round, even though such strategy is against the very basic of GATT system.
It is because of these and other similar measures that prevented developing
countries to benefit from GSP as they originally expected. Relating statis-
tics of UNCTAD had shown that the GSP-receiving countries’ import-export
trade had only increased for only an approximate 2%.31
As for the interpretation and application of legal rules, practical effects of
such law-reforming measures are also rather limited. Due to the unrestrict-
ed use in Articles 36-38 of ambiguous terms as “in the largest possible mea-
sure”, there is a shared concern that it would be difficult if not improbable to
interpret these terms on paper into practical legal responsibilities. In GATT’s
dispute settlement practices, developing countries had actually cited these
articles to argue for their deserved preferential treatments in some case, in
which the responsible panels had all adopted a rather conservative attitude,
and would only interpret when they had to. In EEC - Restrictions on Imports
of Dessert Apples, the Panel reasoned as follows:
… the Panel noted that the commitments entered into by contracting
parties under Article XXXVII were additional to their obligations under
29 or example, the European Economic Community began this process since 1971, and the U.S.
F
began since 1976.
30 Between 1987 and 1988, the United States and EC both “graduated” Korea from their GSP
schemes. The United States also graduated Hong Kong, Singapore and Taiwan. In early 1989,
Thailand was partially graduated from United States GSP.
31 See Karsenty and Laird, The Generalized System of Preferences: a Quantitative Assessment of the
Direct Trade Effects and of Policy Options. UNCTAD Discussion Paper 18, 1987 UNCTAD, Ge-
neva.
37
Parts I-III of the General Agreement, and that these commitments thus
applied to measures which were permitted under Parts I-III. As the Pan-
el had found the EEC’s import restrictions to be inconsistent with specific
obligations of the EEC under Part II of the General Agreement, it there-
fore did not consider it necessary to pursue the matter further under Ar-
ticle XXXVII.32
This kind of reasoning was further repeated in other cases33, confirming that
preferential treatments such as GSP are exceptions and deviations from the
GATT principles, whose application is actually a small probability event.
2.3. SSC in International Investment Law

There were some investment related arrangements in as early as the nego-
tiations to establish an International Trade Organization after WWII, whi-
ch were then strangled in the cradle together with this proposed organiza-
tion. Different from the international trade regime governed by a multilate-
ral GATT, cross-border investment was mainly adjusted by customary inter-
national law. There were severe diversifications between the capital-impor-
ting South and the capital-exporting North on which kind of customary law
should be applied. Due to the afore-mentioned movement during 1960s and
1970s to establish NIEO, the envision of the North to enact multilateral in-
vestment rules had no longer enough practical grounds, and their expecta-
tions to interpret the so-called Hull Rules to customary international law al-
so became a failure.
When they saw multilateral effort come to a dead end, they would turn to bi-
lateral. And Germany was the first to take such approach when it signed wi-
th Pakistan in 1959 the first bilateral investment treaty (hereinafter BIT) in
modern sense.34 One by one, South countries began to conclude more and
more BITs with the developed countries, who had won both the access to de-
veloping countries’ domestic markets and the relatively strict standard of fo-
reign capital protection, as per these kind of treaties. The U.S. launched its
first generation BIT program in 1977, with clear-cut goals to conclude a tre-
aty network so as to establish the Hull Rules as customary international law;
to protect the existed and potential oversea investments from possible detri-
mental measures by domestic governments; and to provide a dispute settle-
32 S ee Panel Report of EEC – Restrictions on Imports of Dessert Apples – Complaint by Chile,

L/6491, adopted on 22 June 1989, 36S/93, 134, para. 12.32. See e.g., Panel Report of United
States - Imports of Sugar from Nicaragua, L/5607, adopted on 13 March 1984, 31S/67, 74, pa-
ra. 4.6
33 See e.g., Panel Report of United States – Imports of Sugar from Nicaragua, L/5607, adopted on
13 March 1984, 31S/67, 74, para. 4.6

34 See Kenneth J. Vandervelde, The BIT Program: A Fifteen-Year Appraisal, in The Development and
Expansion of Bilateral Investment Treaties, American Society of International Law: Proceedings

Vol.86, 1992, p.534.
ment mechanism with no direct involvement of either host state’s domestic

courts nor the U.S. government.35
Later on in mid-1990s, there were two other major attempts to design a mul-
tilateral investment governing mechanism, namely the negotiation of a Mul-
tilateral Agreement of Investment, and relating negotiation under the WTO
framework. Both efforts had failed, although possibly due to different rea-
sons36. These historical facts have led to the fact that, as of now, the negotia-
ting and concluding pattern of investment treaties are still mainly bilateral.
Such pattern has arguably derived two levels of consequences.
Firstly, it became impossible for the South to conglomerate their strength
to gain a better negotiating position in the making of investment rules37, or
even worse, there might be a so-called “competition to the bottom” during
this process.38 This Article, however, does not agree with the latter deduction,
and opines that it is rather the one-on-one South-North confrontation that
renders the weak side into unfavorable terms. For one thing, the institutional
environment as stipulated as per investment treaties are not the most critical
reason to attract foreign capitals. As long as the legal environment of the po-
tential destination country is not intolerable, investors will always consider
commercial conditions first.39
Another counter-argument could be found in the negotiating process of most
BITs, which is usually started by the North countries. The U.S. is always well
prepared before such negotiations40. According to José Alvarez, a renowned
35 S ee Kenneth J. Vandervelde, The BIT Program: A Fifteen-Year Appraisal, in The Development

and Expansion of Bilateral Investment Treaties, American Society of International Law: Pro-
ceedings Vol.86, 1992, pp.534-535.
36 The failure of MAI is possibly due to the “up-bottom” negotiating pattern, which was way ahead
of then historical circumstances, see Chongli XU, Economic Globalization and the Renovation
of the Negotiating Method of International Economic Treaties, Comparative Legal Research,
Vol.3, 2001, pp.62 – 71. The failure of the negotiation in WTO is possibly due to the collective
resistance from developing countries, see An CHEN, New Comments on International Economic
Law, High Education Press, 2007, p.286.
37 Collective consciousness is only possible to form in multilateral negotiations, see R. Hudec,
GATT and the Developing Countries, Columbia Business Law Review, Vol.67, 1992, p.68.
38 Some scholars have noticed the following contrast: during 1960s and 1970s, the South has
through the UN Assembly Resolutions resisted the compensation standard proposed by the
North; while they actually had accepted even higher level of standards when they were “divid-
ed and conquered”. Due to the relatively inflexible amount of foreign capitals, 0See Andrew T.
Guzmán, Explaining the Popularity of Bilateral Investment Treaties: Why LDCs Sign Treaties That
Hurt Them, Va. J. International Law, Vol. 38, 1997, p.659.
39 There are a lot of pragmatic analysis based on real life statistics, see e.g., An CHEN, Four Great
Safeguards in BITs Shouldn’t be Rashly Dismantled during Sino-foreign Negotiation – Com-

ments on Critical Provisions concerning Dispute Settlement in the U.S. and Canada’s Model
BITs Text, in The Voice from China: An CHEN on International Economic Law, Springer-verlag
Press, 2014, pp.273 – 335.
40 See Andrew T. Guzmán, Explaining the Popularity of Bilateral Investment Treaties: Why LDCs
Sign Treaties That Hurt Them, (1997) Va. J. International Law, Vol. 38, p. 659.
39
professor of law and a U.S. official who served on the negotiation teams of
BIT, for most U.S.’s negotiating partners, to conclude BIT is almost never vo-
luntary and without coercion. Up till today, the U.S. BIT Model is conside-
red to be a “take or leave” deal41. While on the other hand, some developing
countries with stronger negotiating power such as China, Brazil and India
could not entirely subordinate to the developed countries’ arrangements.42
Secondly, it became possible for the South to carry out SSC in a bilateral way,
rather different from the collective action in the field of international trade
law. As a matter of fact, South-South investment agreements take on unique
characteristics than South-North ones, although main articles of investment
agreements are similar43. For example, South-South investment agreemen-
ts will usually emphasize “development and mutual beneficial” in their pre-
ambles44, and are usually elastic in its framework design, so that developing
contracting parties can make reserves to their own fit. Some have stipulated
“special and differential treatment” clauses45. As to the substantial clauses,
South-South investment agreements are also recognizable. For example, they
usually take a relatively restrictive definition of the term “investment”46, and
are very strict on national treatment clauses.47
2.4. SSC in International Financial Practice

As is known to all, the two important international financial organizations
established after WWII, namely the International Monetary Fund (herei-
nafter IMF) and the World Bank (hereinafter WB), have been manipula-
ted by the North for their own national interests. One of its most promi-
nent characteristics is the unequal and unfair distribution of voting powers
among their Members, top five of which have occupied over 40% of all the
voting shares. Another practical rule, although latent, is that the IMF and
WB should be run by Europeans and Americans respectively. A mainstream
justification for these unfairness assumes that creditors, instead of debtors,
should run the financial system. By virtue of their predominant roles in IMF
and WB, developed countries, while deciding or approving financial aids or
41 S ee Gennady Pilch, The Development and Expansion of Bilateral Investment Treaties, ASIL: Pro-
ceedings, Vol. 86, 1992, pp.552 – 553.
42 For example, China has seldom discarded its power over investment disputes in its earlier BITs,
see Ye JI, Pragmatic Analysis on the BIT Policy and Position of China, Chinese Journal of Inter-
national Economic Law, Vol.16, No.3, Peking University Press, 2009, pp.172 – 203.
43 See UNCTAD, South-South Cooperation in International Investment Arrangements, 2005.
44 See e.g., China-ASEAN Framework Agreement, Preamble.
45 See e.g., Treaty Establishing the Caribbean Community, Chapter VII, Art. 59(1).
46 See e.g., Framework Agreement on the ASEAN Investment Area, Art. 2.
47 See Lauge Skovgaard Poulsen, The Significance of South-South BITs for the International Invest-
ment Regime: A Quantitative Analysis, Northwestern Journal of International Law & Business,
Vol.30, Issue 1, 2010, pp.101 – 130
loans to developing countries, always combine various political requirements

to their own interests as prerequisites or “conditions”, which often make stri-
ct demands on the domestic economic system or political preference of the
lending party.
The proposal of reforming international financial regime has seen a drastic
rise since the 2008 global financial crisis, which originated from the subpri-
me crisis in the U.S. People became aware of the extremely astounding fact,
that the IMF and WB, who used to play a tutoring role on matters of eco-
nomic system or financial governing regime towards the loan/aid recipient
country, have shown incredible incompetence on the ex-ante prediction as
well as ex-post coping practice on this round of global financial crisis.
As a countermeasure, a new combination of powers and a new approach to
hold dialogues began to emerge and draw attention from all around the wor-
ld. Specifically speaking, there would be regular meetings attended by the le-
aders of G7 or G8 consisting of the most developed countries with the lea-
ders of several major developing countries. In one of this kind of dialogues
held in Japan in July 2008, attended by leaders of G8 with leaders from Chi-
na, India, Brazil, South Africa and Mexico, then Chinese Leader Hu Jintao
took the lead to give insightful comment on this new approach of South-
South Cooperation and South-North Dialogue. He pointed out that:
The world is in the course of great changes and adjustments. In recent
years, the overall power of the developing countries is on the rise; their
cooperation is enhanced; and their influence on international affairs is
becoming greater. China, India, Brazil, South Africa and Mexico are all
important developing countries. The enhanced coordination and coop-
eration between these five nations will not only bring benefit to develop-
ment of each nation, but also to the consolidation of South-South Coop-
eration, the promotion of South-North Dialogue, and the sacred cause
of peace and development of mankind… We should make contributions
to the South-South Cooperation and be a role model. On the one hand,
we should in joint effort promote multilateralism and democratization of
international relation; stand up for the developing countries the right to
participate and making decisions; and create favourable external environ-
ment for the development of the developing countries. On the other hand,
we should play an active part in promoting the reform of international
economic, financial, trade system, safeguarding the legitimate right of the
developing countries; strengthening the ability of the developing coun-
tries to cope with all kinds of risks and challenges; and promoting a bal-
anced, harmonious and sustainable development of the world economy.48
48 S ee, ‘Hu Jintao’s Remarks in the Meeting of Leaders of Five Developing Countries’ at http://
news.xinhuanet.com/newscenter/2008-07/08/content_8512384.htm. All the emphasis on quot-
ed words of this article were added by the authors.
41
In mid June 2009, then Chinese President Hu Jintao and other leaders of the
BRIC countries, namely Brazil, Russia, India and China, met in Yekaterin-
burg in central Russia to discuss the global financial crisis and economic is-
sues. The official Joint Statement declared:
We are committed to advance the reform of international financial insti-
tutions, so as to reflect changes in the global economy. The emerging and
developing economies must have greater voice and representation in in-
ternational financial institutions, whose heads and executives should be
appointed through an open, transparent, and merit-based selection pro-
cess. We also believe that there is a strong need for a stable, predictable
and more diversified international monetary system.49
The Times News was one of the first to sense that “a new group has come into
being that can raise challenge towards the leading role of the U.S.”50
In light of the rise of the power of SSC that can no longer be bullied, the U.S.
called upon the Group of 20 Summit in Pittsburgh to be held in September
2009, in order to bring along the power of emerging economies to tackle the
crisis. This is the first time that developing countries can participate in the
global financial regulation together with the developed countries. Along with
it, the Group of 20 has gradually replaced the Group of 7 to become the most
important forum for regulating the international finance. The series of G20
Summits have listed out the objectives and timeframes for this round of fi-
nancial regulation. At the G20 Seoul Summit, the developed economies have
promised to transfer 6% voting power of their share in IMF and 3% in World
Bank to the developing economies, which has never been seen since the es-
tablishment of the Breton Woods System.
Regretfully, however, with the world economic crisis alleviating, the devel-
oped countries have gradually walked out of the most difficult phase of the
financial crisis, and began to stall the implementation of the afore-agreed-up-
on reforming scheme, notwithstanding their previous promise and the mul-
tiple times of capital increase of the developing countries into the IMF and
WB51. As a result, the reform of international financial institutions have been
staying on the paper for years.52
49 S ee Joint Statement of the BRIC Countries’ Leaders (Translation provided by the Russian Gov-
ernment), available at: http://www.fmprc.gov.cn/mfa_eng/wjdt_665385/2649_665393/t569480.
shtml.
50 See The Times: BRIC Challenges U.S. Authority, available at: http://finance.sina.com.cn/money/
forex/20090617/16196362783.shtml.
51 For example, during the G20 Summit in Mexico, 2012, China had increased $43 billion to its
capital in IMF, while Russia, India and Brazil had increased $10 billion each, and South Afri-
ca $2 billion.
52 To this the BRICS leaders have recently expressed their extreme regret, see Para. 18 of Fortaleza
Declaration.
Under such circumstance, while keeping pushing the reform progress along
with other developing countries, the BRICS countries have also considered
to set up a completely new international financial system of their own. After
over two years of negotiation and design, the envision of establishing a BRICS
Development Bank (also known as the New Development Bank, hereinafter
the NDB) was finally brought into fact, when on July 15, 2014, the BRICS
countries signed the Fortaleza Declaration, and announced the launch of the
NDB and BRICS Contingent Reserve Arrangement. This is the first time that
the Breton Woods System led by the U.S. sees a substantial frontal challenge
from a competitive international financial order. And the five main challeng-
ing countries are all developing countries with heavy weights. Yet together
they occupy 42.6% of the global population, 29.6% of the global area, 21%
of the global economic aggregate, and almost half of the global foreign re-
serve. The amount of their mutual trade constitutes 15% to the global trade,
and makes over 50% of the contribution to the global economic growth. It is
estimated that the BIRCS will exceed the G7, and occupies 40% of the world
in terms of economic wealth after 10 years, provided they keep their current
economic growth rates. Also, there are two Permanent Members of the UN
Security Council, two enormous countries with population over 1 billion. In
one word, these countries are all decisive in their respective region, and can
emit critical political and economic influence to their surrounding countries.
The primary goal to establish this NDB is dealing with the shortage of capital
of the BRICS countries and vast developing countries in their infrastructure
development, which, according to the WB, is estimated to count over 1000
billion dollars. Under current global financial order, this need cannot be met
by all the available funds added together.
As for the allocation of voting power, NDB has adopted the formal equality
approach. In other words, the founding nations are regarded strictly as equal
regardless of their economic strength53. Furthermore, compared to the usual
“conditional loan” provided by IMF or WB, it seems NDB is more flexible on
this matter, with a sole purpose to support BRICS countries and other South
countries to develop their national economy independently, and to build a
much fairer future.54
It is fair to say that the sixth BRICS Leaders’ Meeting and the Fortaleza Dec-
laration have shown the vigour of SSC at present time, which is clearly re-
vealed through the impact of the NDB on the old international financial or-
der. World media’s respond towards this kind of transition is more than vari-
53 lthough the allocation of share in Contingent Reserve Arrangement is according to the amount
A
of capitals invested by each members. China has promised to contribute 41% of the total capi-
tal in CRA, while Brazil, Russia and India have an equal 18% respectively, and South Africa 5%.
Aside from 5% of basic share with voting power equally allocated among the BRICS countries,
the rest 95% of voting share are allocated proportionately to the contributions.
54 The term “equality” has appeared multiple times in Fortaleza Declaration, see e.g., pars. 2, 21,
26, 28, etc.

43
ous, and the establishment of NDB is as much praised as blamed. For exam-
ple, current World Bank Chief Jim Yong Kim said during his visit to India in
July 2014 that,
The only competition we have is with poverty…Any bank or any group
of institutions that try to tackle the problem of infrastructure investment
to fight poverty, we welcome… the World Bank has been well prepared to
provide NDB with technical support and assistance.55
While on the other hand, various views of pessimism and depreciation are
constantly to be heard, there are even some comments that relate NDB to
China Threat Doctrine, preaching that NDB is but a tool for China to real-
ize its self-interests.56
Those who are pessimistic about the NDB’s future deem its foundation rath-
er loose. The five contracting member states are themselves quite different
in terms of multiple economic and political standards, although the general
schedule of development promotion is shared commonly among them. There
are some back-up statistics such as follows: China’s economic dimension is
28 times that of India, and India’s income per capita constitutes only 10% of
Russia’s. India and South Africa are normally regarded as pro-Western dem-
ocratic polity, while China and Russia are deemed as authoritarian polity.
With these bifurcations in value system and personal interests, which would
possibly lead to practical difficulties in the future governance of the NDB,
the coordination and cooperation among these countries within NDB are
not optimistic.57
Those who depreciate the future of NDB have also their seemingly reasonable
concerns. NDB’s total registered capital, which is only $100 billion, seems too
little for the severe reality, not to mention that its initial subscribed capital is
only half of this number. One can easily find references from the side of glob-
al capital suppliers, for example, the World Bank has disbursed $31.5 billion
only in one financial year of 201358, while some regional or national develop-
ment bank seem even richer. The Brazilian National Development Bank has
disbursed $190.4 billion in the financial year of 2013.59 On the side of finan-
55 See Reuters, World Bank chief welcomes new BRICS development bank, July 23, 2014, available at:
http://in.reuters.com/article/2014/07/23/worldbank-india-idINKBN0FS1MV20140723, last ac-
cessed on August 31, 2014.
56 See e.g., Matt Schiavenza, How the BRICS New Development Bank Serves China’s Interest, Ju-
ly 18, 2014, available at: http://www.ibtimes.com/how-brics-new-development-bank-serves-chi-

nas-interest-1631664.
57 See relating reports, e.g., what-the-new-bank-of-BRICS-is-all-about, available at http://www.
washingtonpost.com/blogs/monkey-cage/wp/2014/07/17/what-the-new-bank-of-brics-is-all-
about/, last accessed on August 31, 2014.
58 See The World Bank Annual Report 2013, p.55.
59 See The Evolution of the BNDES’ Disbursements, available at: http://www.bndes.gov.br/
SiteBNDES/bndes/bndes_en/Institucional/The_BNDES_in_Numbers/#The_Evolution_of_the_
BNDES__Disbursements, last accessed on August 31, 2014.
cial needs, the number also far exceeds the currently agreed NDB’s capital.
Those whoAccording
Those whoused
are to
areestimation
used
to preaching of the
to preaching World
China ChinaBank,
Threat 74 South
Threat 74 Africa alone
wouldwould certainlycertainly
not would notneed
miss miss this
this
approximately
chance, to advertise $2500 billion
that NDB in its infrastructure in the following decade.
chance, to advertise that NDB is but isa butnewaconspiracy
new conspiracy of China, of China,
through through
whichwhich
Those
this
this currently who
currently
rising are usedempire
rising
empire to preaching
could could
acquire China
acquire
multipleThreat
multiple 60
politicalwould
political certainly
interests.interests.not According
Accordingmiss
this
to view, chance,
such view, to advertise that NDB is but a new conspiracy of China, through
to such ChinaChina
whichbypassing
aims to
this currently
aims to establish
establish
risingmoving
andcould andatake
take
empire reformation
a leading
leading
acquirewithin
role inrole
multiple
in another
another
political
financialfinancial
interests.
portal
portal bypassing the slow IMF and the World Bank.
According the to suchslowview,
moving China reformation within IMF
aims to establish and the
and take World role
a leading Bank. in
With With
this
another thisfinancial
new new financial
financial portal institution,
institution,
bypassing China’s
the slowChina’s enterprises
enterprises
moving could could
reformation enhance
withinenhance
the the
IMF
legitimacy
legitimacy
and theof their of investing
World their
Bank. investing
With thisoverseas
overseas new by borrowing
by financial
borrowing theChina’s
the proposal
institution, proposal of positive
ofenterpris-
positive
valuesvalues
es could
such such
as as “sustainable
enhance
“sustainable the legitimacy development”
development” of their thisofkind
of investing thisoverseas
kind
of ofbymultilateral
multilateral borrowing
financialfinancial
the
framework,
proposal of which
positive also
values would such dilute
as the political
“sustainable
framework, which also would dilute the political and diplomatic implication of and
development” diplomatic of thisimplication
kind of of
multilateral
such investment financial framework,
(especially which also would dilute the political and
such investment (especially those thosecarriedcarried
out byout by State-Owned
State-Owned Enterprises)
Enterprises) than than
diplomatic
theof case implication
of direct bilateral of such investment
investment. (especially
These would those
all benefit carried
China’sout by
strategic
the case direct
State-Owned bilateral
Enterprises)investment.than the These
case would
of directallbilateral
benefit China’s
investment. strategic
These
arrangement
arrangement of its outward capital at the global level.75
would of allits outward
benefit China’scapital at the arrangement
strategic global level.75 of its outward capital at the
Against global
Against level.
the above-listed
61
the above-listed views,views, we hold wethe hold the following
following opinion: opinion:
Againstthe theestablishment
above-listed views, we hold thecertainly followingnot opinion:
Firstly,Firstly,
the establishment of NDB of NDBwouldwould certainly not imply imply the completion
the completion of of
Firstly,
the building the establishment
of ainternational of
new international NDB would
financial certainly not imply the completion
the building of a new financial order,order,
whichwhich could could
already already
make makean an
of the building of a new international financial order, which could already
equal equal
rival rival even
makeofanorequal
of or replace
even replacecurrent
rival of orthe
the current
even replace IMFtheand
IMFthe and the World
current WorldIMF and Bank. Bank. Historically
Historically
the World Bank.
speaking,
speaking, however,
however,speaking, it indeed
it indeedhowever, symbolizessymbolizes a recent a recent
climax andclimax and
a newclimaxa new
start of start of the
Historically it indeed symbolizes a recent andthea
SSC inSSC the in
new the of
field
start fieldthe of
SSCinternational
international fieldfinancial
in thefinancial practice.practice.
of international It istofair
It isfinancial
fair to envision
envision
practice. that that such
It issuch
fair
new
new financial financial
to envision thatinstitution
institution suchwould would
new financialplay an play an important
institution
important would roleplay role
in an
bothin both
important the
the furtherrolefurther
construction
in bothofthe
construction of a South-led
further
a South-led construction international
international of a financial
South-ledfinancial order
international
order and the and the propelling
financial
propelling orderof of
and
reformingthe propelling
the of
traditional reforming
internationalthe traditional
financial
reforming the traditional international financial order. As the traditional Chinese international
order. As the financial
traditional order.
Chinese
As thegoes,traditional
“A single Chinese saying goes,a“A singlefire spark can start a prairie fire
sayingsaying
goes, “A single
(星星之火，可以燎原 spark spark can can start prairie
)”.62start a prairie fire (星星之⽕火，可以燎原 )”.
(星星之⽕火，可以燎原 76 )”.76
AAsimilar
A similar metaphor
similar metaphor
metaphor is firstisisfirst
firstseen
seen seen
in in Shang
Shang
in Shang Shu Shu
(“ (《尚书》
Shu(《尚书》 ), a classical
”),),a aclassical
classical book book book
in an-in in
ancient
ancient cient
China, China,
China,
in whichininwhich
which a prairie
a prairie
a prairie isfire
firefire is to
is used
used used to symbolize
tosymbolize
symbolize the formidable
theformidable
the formidable force force
to tokeep
keep somebody
somebody or
or something
something
to keep somebody or something away (若⽕火之燎于原，不可向迩 ). away
away ( 若⽕火之燎于原，不可向迩 ).
).
The most famous usage of this phrase is in one of Chairman Mao’s early let-
ters, addressing on the future of then Chinese Communist Party’s revolu-
74 For detailed review on China Threat Doctrine, a typical type of malicious speculation on
74 For detailed review on China Threat Doctrine, a typical type of malicious speculation on
China, China,
see e.g.,seeAne.g., An CHEN,
CHEN, On the On the Source,
Source, EssenceEssence of “Yellow
of “Yellow Peril” Doctrine
Peril” Doctrine and Its and Its Latest
Latest
60 FHegemony
or detailed “Variant”—The
review on China “China
Threat Threat”
Doctrine, a Doctrine:
typical type of From the
malicious Perspective
speculation on of Historical
China,
Hegemony “Variant”—The “China Threat” Doctrine: From the Perspective of Historical
MainstreamMainstream
see e.g., of
An CHEN,of Sino-foreign
Sino-foreign Source, Economic
On the Economic Essence Interactions
of “Yellow
Interactions Peril” and Inherent
Doctrine
and Their Their Inherent
and Its Latest Jurisprudential
Hegemony
Jurisprudential
“Variant”—The “China Threat” Doctrine: FromChina:
the Perspective of Historical Mainstream of Si-
Principles, in An CHEN, The Voice from China: An CHEN on International Economic Law, Law,
Principles, in An CHEN, The Voice from An CHEN on International Economic
no-foreign Economic
Springer-verlag Interactions
Press,pp.44 and
2014,–pp.44 Their Inherent
– 100. Jurisprudential Principles, in An CHEN,
Springer-verlag Press,
The Voice from 2014,
China: An CHEN 100.
on International Economic Law, Springer-verlag Press, 2014,
pp.44 – 100. How the BRICS New Development Bank Serves
China'sChina's
Interest,Interest,
75 See e.g., Matt Schiavenza,
75 See e.g., Matt Schiavenza, How the BRICS New Development Bank Serves
61 See e.g., Matt Schiavenza, How the BRICS New Development Bank Serves China’s Interest, July 18,
July 18, July 18,
2014, 2014,
available available at: http://www.ibtimes.com/how-brics-new-development-bank-
at: http://www.ibtimes.com/how-brics-new-development-bank-
2014, available at: http://www.ibtimes.com/how-brics-new-development-bank-serves-chinas-in-
serves-chinas-interest-1631664, last accessed on August 31, 2014.
serves-chinas-interest-1631664,
terest-1631664, last accessed onlastAugust
accessed on August
31, 2014. 31, 2014.
See Mao
7662See Mao Tse-Tung,
Tse-Tung, AASingle
SingleSpark cancan
Spark StartStart
a Prairie Fire (January
a Prairie 1930), in Selected
Fire (January Works of Works
in Selected
76 See Mao Tse-Tung,
Mao AForeign
Tse-Tung, Single Languages
Spark can Start1965,
Press, a Prairie
Vol. Fire
I, (January
pp.117 – 128. 1930), 1930),
in Selected Works
of MaoofTse-Tung,
Mao Tse-Tung,
ForeignForeign Languages
Languages Press,Vol.
Press, 1965, 1965, Vol. I, pp.117
I, pp.117 – 128. – 128.
!57 !57
Reconciliation, Tolerance and Human Security in the Balkans

susTheusage most
usage ofoffamous
this phrase
thisusage usage
phrase ofisis ofinone
in this
one phrase
of Chairman isone in one Mao’s ofaddressing
Chairman
early letters, Mao’s early letters,
most famous
The most famous this
usage phraseofof thisChairman
is in
phrase isMao’s
of Chairman
in one early
of Chairmanletters,
Mao’s on early
theMao’s letters,
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early Chinese Co
letters,
addressing
ehe future
future
ressingaddressing of of on
thenthen
on the futurethe future
Chinese
Chinese of then of then
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Communist
Chinese Chinese Party’s
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revolution.
revolution. Party’s
Against
Against revolution. Against
on the future of thenCommunist Chinese Communist Party’s
some pessimistic revolution.
Party’s revolution.Against
views and lack Against of confiden
45
me some
ic views
views pessimistic
pessimisticandand lacklack
viewsofviews
ofconfidence, and
confidence,
and lack lack
of of confidence,
Chairman
Chairman
confidence, MaoMaoChairman Chairman
pointed
pointed out
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with
with
pointed pointed out out
with with
some pessimistic views and lack of confidence, Chairman Mao pointed out with that t
A. Chen, F. Yang: The hisVoice usual
from Chinaprecise
on Reforming andOieo profound
and Establishing insight
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se his
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profound precise
profound insightand
insight profound
thatthatthe insight
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revolution thatwas thebound
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“a to becomewas bound to would
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his usualand profound
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that
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tion. that
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through
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some spread
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through through China,
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the
views the
whole
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although
although
lack China,
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such
such although
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“a prairie fire” that would spread through the whole China, although course revolution was still in its early such when
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ill
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earlyincourse his
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made
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made suchprofound
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andMao Mao
prophecy
was prophecy
made made
insight such
suchmade
metaphorized that
prophecyprophecy
the revolution
as “aprophecy
single spark”.
was bound tosingle its early
become course
“aspark”.
prairie whenthat
fire” Chairman
would spread Mao through such the whole
and
orizedwaswas
horized asas“a metaphorized
“a
metaphorized single
single spark”.
spark”.
as “a as “a single spark”.
and was metaphorized
China, although such as “arevolution
single spark”. was still Later in its early on in courseChina，This
when Chairman development
ater Later
China，This
China，This
on Later on in
in China，This
Mao China，This
development
development
made such rule development
rule
development
prophecy of of new-born-things
new-born-things
and rule
was rule
of of new-born-things
has
new-born-things
metaphorized has been
asbeen“a has
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on in China，This development repeated time and again has
rule of new-born-things in been
many tradit
repeated
nd
eatedandagain again
time time
inLater
in
and manyand
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traditional in– This
traditional
in many many Chinese
Chinese traditional
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proses poems, poems,
andand proses proses and and
repeated time and again in many traditional Chinese poems, proses re-
on in China development rule of
expostulations new-born-things to kings has
and been
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Yu,
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to
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most specific,
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philosophical
sdom
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osophical ininhis his
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Ode
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the WindWind
Ode Ode ( (风赋》
of of
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风赋》 Wind ) Wind
) words:
in in following
( ( 风赋》
following
风赋》 ) in ) following
in following
philosophicalphilosophical wisdom wisdom in his in hisfamous famous Ode Ode ofofthe theWind Wind((风风赋》》) ) in following
in following
words:
ds: words:words:
The wind originates in-between the earth
nates The wind
windin-between
einates originates
in-between
originates The thethe in-between
earth
in-betweenearth
wind originates and andthethe the
the sky,
earth earth
sky,
in-between andand and
then
the then the
sky,
the and sky,
gently
gently
earth
from and and
blows
and blows
then then
the sky,gently
gently blows
ofand blowsgentlyWhen it
then
The wind originates in-between the earth thethe sky, aboveand then duckweed.
gently blows
eve from
m ofthe the
ofduckweed. above
duckweed.
abovetheblows of When of
When duckweed.
from
duckweed. it itthe
later
later
above
When When
sweeps
sweeps it
across
ofit duckweed.
later later
across sweeps sweeps
trenches
trenches
When across
and
it later
across
agglomerates and trenches
sweeps
at the across
trenches and and
mountain trench- pass, a ga
from above of duckweed. When it later sweeps across trenches and
tatagglomerates
the
glomeratesthemountain
mountainat esatpass,
the andthe
pass,
mountainamountain
agglomerates
a gale
gale thus
pass,thuspass,
atemerges
a the amountain
emerges
gale gale
thusthat thus
that would
emerges emerges
pass,
would
along a squeal
gale
squeal
that
its waythat
thus
would
withwould
emerges squeal
as a squeal
that would mome
high-spirited
agglomerates squeal at
along theitsmountain
wayas with pass,
as a gale thusmomentum
a high-spirited emerges that as aand would flame,
roaring squeal
ith
with
ngalongas
itsasawayits way
high-spirited
a with
high-spirited
with as a ashigh-spirited
amomentum
momentum high-spirited as
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a aroaring
roaring flame,
as flame,
a as aand
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and
the makemake
flame,
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pines make
dance and bow. It
along itsand waymake witheven as a the high-spirited
toughest momentum as abow. roaring flame,like and anmake
hest
en steven
pines
the the
pines toughest
dance
dance
toughest andand
pines pines
bow.
bow.
dance dance
It Itsounds
andsounds and
bow. bow.
like
like
It an Itpines
an
sounds sounds
angry
angry
dance
like like
thunder, and
thunder,
an an
angryandangry
and
It sounds
thunder,thunder, and and an-
even thegry toughest
thunder, pinesand dancetakes on and anbow.indefinite It takes
soundsform. onlike an indefinite
an angry
It would blowform. thunder, It would
over mega- and blow
estakes
efinite
definite
on an onform.
form. an Itindefinite
would
It
indefinite would form. blowform.
blow It over It would
over
would megaliths,
megaliths,
blow blowover over
break
break
megaliths,megaliths,
off off branches,
and sweep branches,
break breakoff off branches,
branches,
takes onliths, break off branches,
an indefinite form. It would and sweep blow across over denseacross
megaliths, bushes. dense
break offbushes.
(夫风生于地， branches, (夫风⽣生
dosssand
dense sweep
dense
sweep bushes.across
bushes.
across dense dense (bushes.
( bushes. (夫风⽣生于地，起于青萍之末；浸淫溪⾕谷，盛怒
夫风⽣生于地，起于青萍之末；浸淫溪⾕谷，盛怒
起于青萍之末；浸淫溪谷，盛怒于土囊之口；夫风⽣生于地，起于青萍之末；浸淫溪⾕谷，盛怒 (夫风⽣生于地，起于青萍之末；浸淫溪⾕谷，盛怒于⼟土囊之⼜⼝口；缘泰⼭山之阿，舞于松柏之下，飘忽泰山之阿，舞于松
and sweep across dense bushes. (夫风⽣生于地，起于青萍之末；浸淫溪⾕谷，盛怒
于⼟土囊之⼜⼝口；缘泰⼭山之阿，舞于松柏之下，飘忽淜滂，激飓熛怒。耾耾雷声，回⽳穴错
泰⼭山之阿，舞于松柏之下，飘忽淜滂，激飓熛怒。耾耾雷声，回⽳穴错柏之下，忽淜滂，激熛怒。耾耾雷声，回穴迕，蹶石伐木，
缘泰⼭山之阿，舞于松柏之下，飘忽淜滂，激飓熛怒。耾耾雷声，回⽳穴错
⼟土囊之⼜⼝口；缘泰⼭山之阿，舞于松柏之下，飘忽淜滂，激飓熛怒。耾耾雷声，回⽳穴错
于⼟土囊之⼜⼝口；缘泰⼭山之阿，舞于松柏之下，飘忽淜滂，激飓熛怒。耾耾雷声，回⽳穴错迕，蹶⽯石伐⽊木，梢杀林莽。 ).
梢杀林莽。迕，蹶⽯石伐⽊木，梢杀林莽。
梢杀林莽。
，蹶⽯石伐⽊木，梢杀林莽。 ). ). 梢林莽。). ). ).
迕，蹶⽯石伐⽊木，梢杀林莽。). Later on in China, this metaphor has always
Later on Laterhas
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ould
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bound
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under isthe are
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strong beto be
gale,
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on the appearance. old regimes, Suchold institutions
wisdom also arewell bound toalthough
reflected be th
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aced strong
under under
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strong strong
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replaced by the under Western the strong scientific gale, proverb
although “Butterfly
they seem Effect”, towhich implies that aontiny
be indestructible the
uchappearance.
h wisdom
earance. wisdom Such is Such
is also
also
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challenge wisdom
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at the is is
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scientific
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Effect”, which
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proverb
ly
rfly
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Effect”, “Butterfly
“Butterfly which
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ence Effect”,
at Effect”,
implies
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atinyimplies
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source source
proverb “Butterfly Effect”, which implies would that a possibly tiny challenge turn outattothe have huge changi
source
urn
uldwould
turn out
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totohave
have
turn
Mr. turn
hugehuge
out
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changing
to to have
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have
Yat-Sen, huge
the huge
influence
influence
changing
pioneer changing
atofthe
at the
influence
Chinese influence
end.end. at the
democratic at end.
the end. revolution, during the
would possibly turn out to have huge changing Mr.influence
Sun Yat-Sen, at the end. the pioneer of Chinese
n,Mr. the Sun decades
Yat-Sen,
pioneer of of revolutionary
the pioneer course
of Chinese indemocratic
overthrowing the imperial
revolution, regime
during theof an-
en,Sun the Mr. pioneer
Yat-Sen, Sun theofChinese
Yat-Sen, Chinese
pioneer democratic
ofdemocratic
Chinese
theestablishing
pioneer
revolution,
revolution,
democratic
ofa novel
Chinese
during
decades during
revolution,
democratic ofthe the during
revolutionary
revolution, theduring
course in
theoverthro
decades cient
ofcourse China
revolutionary and course intheoverthrowing democratic
the of imperial republic,regime and of ancient the
even amid
utionary
olutionary
ades ofdecadescourse
revolutionary ininoverthrowing
overthrowing
course in the imperial
overthrowing imperial regime
theregimeimperial of ancient
ancient
regime of ancient
of revolutionary
overwhelming course inand
disappointed overthrowing
helpless !58 moods the imperial
after so many regime of ancient
failures and
58 drawbacks, has asserted with a chest of faith that:
!58
The tide of world history goes forward with great strength and vigour in
Proceedings of the Second International Round Tab
Proceedings of the formidable
Second power. The tide Table
would definitely award those who temporize
Second
e Secondof
ceedings International
International
the Second RoundInternational
Round Table Round Table
International Table Round
Proceedings of the Second International Round Table
overwhelming disappointed
overwhelming disappointed and
and helpless
helpless moods
moods after
after so
so many
many failure
failur
drawbacks, has asserted with a chest of faith that:
drawbacks, has asserted with a chest of faith that:
The tide
The tide ofof world
Public Policy • Vol.13, No.1 (2013) world history
history goes
goes forward
forward withwith great
great strength
strength andand vigvig
formidable power. The tide would definitely award
formidable power. The tide would definitely award those who temporize those who temporize
with it and and
and punish
punish
punish those
those
those who
who
who gogogo against
against
against itit((世界潮流，浩浩荡荡，顺之者昌，逆之者亡
it (世界潮流，浩浩
世界潮流，浩浩荡荡，顺之者昌，逆之者，之
者昌，逆之者亡). 63
According to
According to these
these above
above celebrated
celebrated dictums
dictums and and folk
folk wisdoms,
wisdoms, aa
According toexperience
these abovecould
experience celebrated
could be dictums
drawn as and folk
follows: wisdoms,
when thea short expe-
righteous
be drawn as follows: when the righteous course of course of revo
rev
rience couldor be drawn
or reformation as follows:
reformation encounters when the
encounters some righteous
some adversity, course
adversity, people of revolution
people should
should takeor
take aa broad
broad andan
reformation encounters some adversity, people should take a broad and long-
term view
term view instead
instead of of losing
losing morality
morality or confidence
confidence and and becoming
becoming pessimi
pessim
term view instead of losing morality or confidenceorand becoming pessimis-
tic. It is onlyisisthrough
only through
only through
determined determined
determined and persistent
and
and persistent persistent struggle,
struggle,struggle,
can various candiffi-
can various difficul
various difficul
overcome
overcome
culties be overcome and and
and our
ourour original
original
original objectives
objectives
objectives be finally
be finally
be finally achieved.
achieved.
achieved.
Such wisdom, Such
Such ideals and practical
wisdom,
wisdom, ideals experiences
ideals and practical
and practical of former philosophers
experiences
experiences of former
of and philosophe
former philosophe
revolutionists have been
revolutionists repeatedly
have been proven by
repeatedly historical
proven
revolutionists have been repeatedly proven by historical course as course
by as indisput-
historical course as indisp
indis
able guiding guiding
strategy, strategy,
and are valuable
and are references
are valuable for
valuable references those
references for with lofty
for those ideals
those with with lofty
lofty ideal
idea
guiding strategy, and
who devote themselves in contemporary course of reforming OIEO and es-
devote
devote
tablishing NIEO,
themselves
themselves
especially
in contemporary
in
at a time
contemporary
when this righteous
coursepath
course of reforming
of reforming
has rarely OIEO
OIEO and estab
seen and estab
NIEO, especially
NIEO,
decisive improvements, especially
causingat at
theaa traditional
time when
time whenrationale
this righteous
this righteous path has
path
to be questioned has or rarely seen
rarely seen de d
even doubted. improvements, causing the traditional
improvements, causing the traditional rationale to be questioned or rationale to be questioned o
doubted.
Secondly, thedoubted.
relationship between the NDB and the traditional IMF and WB
can be generalized
Secondly,
Secondly, through
the two key words:
the relationship
relationship betweencomplementation
between the NDB
the NDB and andandthe
thecompeti-
traditional IMF
traditional IMF an an
tion. The NDB has not only complemented the capital supply at the interna-
can be
can be generalized
generalized throughthrough two two key key words:
words: complementation
complementation and and compe
comp
tional financial market, especially to the needs of BRICS and other develop-
The
The
ing countries, NDB
butNDB has not
has
also fulfilled nottoonly
only
some complemented
complemented
extent the demands the capital
the capital
for a long supply
supply timeatat the
the intern
intern
financial
of the globalfinancial amarket,
South for market, especially
fair andespecially to the
to the needs
beneficial international needs of BRICS
of
financial BRICS
institution, and other
and other deve
deve
through which countries,
countries,
they canbut but also fulfilled
also fulfilled
discuss and decide to some
to more extent
someequally,
extent and the demands
the demands
acquire finan- for a long
for a long time time
cial aid withglobal
no strict
global political
South
South for aaconditions.
for fair and
fair As to theinternational
and beneficial
beneficial competition brought
international financial
financial byinstitution,
institution, tht
the NDB, it which
is not against
which theythey can the liberal
can discuss
discuss and international
and decide
decide more financial
more equally, order
equally, and per
and acquire se, as
acquire financial
financial aia
the past experience
no strict has shown
strict political that
political conditions. the
conditions.As BRICS
As to and
to the other
the competitiondeveloping
competition brought coun-
brought by by the
the NDB,
NDB, ii
no
tries could indeed benefit from such economic system. On the contrary, the
against
againstwith the liberal
the liberal international
international financial order per se, as the past experien
NDB is competing IMF and WB in the financial order per
sense of equality andse,efficiency
as the past experien
shown
shown that
that the
the BRICS
BRICS and
and other
other developing
developing
of the international financial institutions themselves. Such competition countries
countries could
could indeed benefi
couldindeed benef
such
be seen as a such economic
repeateconomic
or replicate system.
system.
in the On On thethe of
history contrary,
contrary, the NDB
the
GATT law-reforming, NDB isis competing
competing
when with IM
with IM
WB in
the slow progress
WB in the
undertheGATT senseregime
sense of equality
of equality
in the 1960s and was
and efficiency
suddenlyof
efficiency ofaccelerated
the international
the international fin fi
by the outside competition
institutions brought
themselves. by the
Such establishment
competition of UNCTAD
could
institutions themselves. Such competition could be seen as a repeat or re be seen under
as a repeat or re
UN, which thein developed
in the
the history
history ofcountries
of GATT might
GATT law-reforming,see as a
law-reforming, when potential
when thereplacement
the slow of
slow progress
progress under
under
GATT as a trade forum among developing countries.64
77 ***
77 This assertion was expressed by Mr. Sun in September 1916, after he went back to S
This assertion was expressed by Mr. Sun in September 1916, after he went back to S
From the abovefrom succinct
from review
aa visit
visit theover
of the
of theQianjiang
famous
famous SSC in different
Qianjiang tidebranches
flood tide
flood ofZhejiang
in Haining,
in Haining, inter- Province,
Zhejiang Province, se
se
national economic legal practices, one can easily discern different
news.ifeng.com/gundong/detail_2011_10/09/9694533_0.shtml.
news.ifeng.com/gundong/detail_2011_10/09/9694533_0.shtml. patterns.
!59
Through comparison,
!59 a few useful experiences for future might be drawn:
Reconciliation,Tolerance
Reconciliation, Toleranceand
andHuman
HumanSecurity
Securityin
inthe
theB
63 ––New
is assertion was expressed by Mr. Sun
Th New Balkansand
Balkans
in September and European
European
1916, Union
Union
after he went ––Peace,
back Peace,
to Development,Inte
Development,
Shanghai Int
from a visit of the famous Qianjiang flood tide in Haining, Zhejiang Province, see http://news.
ifeng.com/gundong/detail_2011_10/09/9694533_0.shtml.
64
See Adeoye Akinsanya and Arthur Davies, Third World Quest for a New International Eco-
nomic Order: An Overview, International and Comparative Law Quarterly, 1984, Vol.33, p.210.
47
Firstly, the global South should remain vigilant towards the “divide and con-
quer” tactic, which had been successfully adopted by the North in the rule-
making on cross-border investments, although the effects of this tactic now
turns out to be detrimental to the North, too. It is only through conglomerat-
ing the collective strength, that the global South can acquire a relatively equal
footing as compared to the North in the making or reforming of internation-
al economic legal rules.
Secondly, the introduction of a competitive institution at an appropriate time
in an appropriate manner could assist the SSC to achieve its goals, as such
competition would bring from the outward extra pressure to the vested inter-
ests group. Such kind of “fight-but-keep-it-from-escalating (“斗而不破”) phi-
losophy and wisdom are very practical in fulfilling the SSC career.65
The next chapter will briefly retrospect China’s self-position with regard to
SSC during its modern history since 1949.
3. China’s Self-Position in SSC

For anyone who has basic knowledge about China’s modern history, it is an
undeniable fact that, like many third world countries, China had won its en-
tirely independent status in the middle 20th century, and determined to adopt
a self-reliance and mutual-cooperation approach, in order to rehabilitate it-
self from ruins and poverty.
As to new China’s self-positioning at the world arena, it has always been a ra-
ther clear-cut path. In fact, as the pioneer and leader of democratic revolu-
tion in modern China, Mr. Sun Yat-Sen declared publicly in his will:
I have devoted myself to national revolution for over 40 years, with the so-
le aim to pursue a free and equal status for people within China, as well
as for China around the world. Upon my four decades’ experience, I have
made myself quite well aware that in order to fulfill such aim, it is a pre-
requisite to unite all nations that treat each other equally to struggle col-
lectively.
For decades after the establishment of New China in 1949, generations of
Chinese leaders have absorbed and updated the spirit embedded in Mr. Sun’s
will, and have established China’s long-term fundamental foreign policy
65 o fight but keep it from escalating is, in its essence, a dialectic philosophy. Such kind of phi-
T
losophy has been repeatedly adopted by the early generations of Chinese leaders in, for exam-
ple, China’s self-defensive counterattack against Vietnam during February 17 to March 16, 1979,
and China’s self-defensive counterattack against India during June to November, 1962, and Chi-
na’s War to Resist the U.S. Aggression and to Aid Korea during 1950 to 1953. In these relatively
severe conflicts (as compared to conflicts in international economic legal conflicts), China had
been rather determined in fighting for the righteous course, while at the same time rather con-
servative once it had occupied an overwhelming position.
Chinese leaders have absorbed and updated the spirit embedded in Mr. S
will, and have established China’s long-term fundamental foreign policy thro
48 The European Journal
the Theory
of Management ofandThree Worlds proposed by Chairman Mao and the Five Princ
of Peace and Co-existence proposed by Premier Zhou.
through the Theory
3.1. MainofViewpoints
Three Worlds proposed
of New by Chairman
China’s Mao andLeaders
First Generation the Fi-
ve Principles of Peace and Co-existence proposed by Premier Zhou.
Chairman Mao first expressed his thoughts on the division of world coun
3.1. Main Viewpoints of New China’s First Generation Leaders
during his meeting with Zambian President in 1974, which could be unders
Chairman Mao first expressed his thoughts on the division of world coun-
as the theoretical base for China’s foreign policy of collaborating with o
tries during his meeting with Zambian President in 1974, which could be
understood third world
as the brotherbase
theoretical countries.
for China’sToforeign
quote policy
from ofthen People’s Daily pamp
collaborating
with otherChairman
third worldMao said: countries. To quote from then People’s Daily
brother
pamphlet,In Chairman
my view,Mao the said:
United States and the Soviet Union form the first world. Ja
In my view, the United
Europe and Canada, Statesthe
andmiddle
the Soviet Union
section, formtothe
belong thefirst world.world. We ar
second
Japan, Europe and Canada, the middle section, belong
third world…The third world has a huge population. With to the second wor-the exceptio
ld. We are the third world…The third world has a huge population. With
Japan, Asia belongs to the third world. The whole of Africa belongs to the
the exception of Japan, Asia belongs to the third world. The whole of Afri-
world,
ca belongs andthird
to the Latinworld,
Americaand too.
Latin America too.
(“我看美国、苏联是第⼀一世界。中间派，⽇日本、欧洲、加拿⼤大，是第⼆二世界。——
(“我看美国、苏联是第一世界。中间派，日本、洲、加拿大，是
第二世界。——第三世界人口很多，亚洲除了日本都是第三世界。
世界⼈人⼜⼝口很多，亚洲除了⽇日本都是第三世界。整个⾮非洲都是第三世界，拉丁美洲是
整个非洲都是第三世界，拉丁美洲是第三世界。”)
世界。”)
Chairman Mao had not pointed further out during his conversation the con-
Chairmanor Mao
notation, function hadusenot
practical for pointed further
dividing the worldout
intoduring his conversation
three classes,
connotation, function or practical use for dividing
nor was this type of categorization based upon his understanding on world the world into three cla
political strengths
nor wasand thisinternational relation pattern.
type of categorization Although
based upon the
hisTheory of
understanding on w
Three Worlds!61 had long been looked up to as the theoretical basis for making
China’s diplomatic strategy and policy, its official restatement had not been
seen until November 1977, when an editorial Reconciliation,
entitledTolerance
Chairman and Human
Mao’s Security in the Ba
Theory
– New Balkans and European Union –
of the Differentiation of the Three Worlds Is a Major Contribution to Marxism-Peace, Development, Integr
Leninism was published on People’s Daily of China , which is still the only
66
authoritative elaboration on this theory up till today.
For this basic judgment on world situation, there has been some oppos-
ing voice, opining that such categorization as three worlds is only “based on
national wealth, and is thus a rough generalization of the economic develop-
ment status and economic strength, rather than the political strength of world
countries.”67 Such query obviously has not recognized the abundant philo-
sophical connotations of the Theory of Three Worlds, and the potential func-
tion of it on guiding practices, which was later elaborated by Deng Xiaop-
ing in his address on the special session of UN General Assembly on April
10, 1974. Deng clearly pointed out that: China is a socialist and developing
country, and belongs to the third world. China shares similar miserable ex-
perience with most other third world countries, and faces similar problems
and tasks. China determinedly takes the anti-imperialism, anti-hegemonism
66 See Chairman Mao’s Theory of the Differentiation of the Three Worlds Is a Major Contribution to
Marxism-Leninism, Renmin Ribao (People’s Daily) November 1, 1977.
67 See e.g. Wu Min, Queries to the Theory of Three Worlds, available at: http://www.aisixiang.com/
data/24537.html.
and anti-colonialism struggle as its sacred responsibility. Such self-position-
ing has explained the aftermath cooperation and mutual aid between China
and other South countries, as well as the strong support of China to the great
SSC career.68
If the Theory of Three Worlds has determined the coordinates for China’s
self-positioning on world arena, the Five Principles of Peaceful Co-existence
should then be regarded as fundamental guidance on China’s diplomatic
strategy, which was first proposed by Premier Zhou during his visit to In-
dia and Myanmar in 1954. It comprises of the following five aspects of a new
and more principled approach to international relations mainly among those
newly independent states after decolonization:
Mutual respect for each other’s territorial integrity and sovereignty; Mutual
non-aggression; Mutual non-interference in each other’s internal affairs; Equal-
Equality
Equality
Equality
ity andand
and and
cooperation
cooperation
cooperation cooperation for
for mutual
for mutual mutual
forbenefit;
mutualbenefit;
benefit;
benefit;
and and
and and
Peaceful Peaceful
Peaceful Peaceful
co-existence.co-existence.
co-existence.
co-existence.
(“互相尊重 (“
(“互相
互相 (“互相
主和土完整、互不侵犯、互不干涉政、平等互利和和平共处”)
尊重主权和领⼟土完整、互不侵犯、互不⼲干涉内政、平等互利和和平共处”)
TheseThese
TheseThese
five
five five
five principles
principles
principles
principles have
have
have haveset the
set
set the
set prerequisite
the prerequisite
the
prerequisite for
forany
prerequisite
for any
for
anypossible
any
possible
possibleinternational
possible international
international
international
cooperation,
cooperation,
cooperation,
cooperation, with with
withwith
the the essence
the essence
essence
the essence being
being
being being
thethe equality
the equality
equality
the equality among
among
among among nations
nations
nationsnationsregardless
regardless
regardless
regardless of
of
of its
itsof its
its size. Under then world situation, this proposal had invented a novel ap-
size.
size.proach
size.
Under
Under Underthen
thenthen
towards world
world
theworldsituation,
situation,
situation,
traditional this
thisofthis
idea proposal
proposal
Eastproposal
camphad
had had
invented
invented
against invented
Westaacamp,
novel
novel
a novelapproach
theapproach
approach
So-
towards
towards
towardsthe
cialistictheGroup
traditional
the
traditional
traditional
againstidea
idea
the idea
of
of East
East
of East
Capitalistic camp
camp camp
against
against
Group, against
which West
West
hadWest camp,
camp,
been camp,the
proventhe Socialistic
the
Socialistic
uselessSocialistic
Group
GroupGroup
or against
against
even against
the
the Capitalistic
Capitalistic
the Capitalistic
a deteriorating forceGroup,
Group, Group,which
which
for historical which
had
had had
been
beenbeen
problems. proven
proven proven
useless
uselessuselessor
or even
even
or even
aa a
deteriorating
deteriorating
deteriorating force
force force
for
for historical
historical
for historical
problems.
problems.
problems.
Later on, in the Bandung Conference held in April 1955, in which the Dec-
Laterlaration
LaterLater
on,
on, on, on
in Promoting
in the
the
in theBandung
Bandung World
Bandung Peace
Conference
Conference and Cooperation
Conference held
heldheld
in
in Aprilinwas
April April published,
1955,
1955,1955, in the
in in Five
which
which which
the
the the
Principles of Peaceful Co-existence were completely absorbed into this fa-
Declaration
Declaration
Declaration on
on Promoting
Promoting
on Promoting World
World World
Peace
Peace Peace
and
and Cooperation
and
Cooperation
Cooperation was
was waspublished,
published,
published, the
the Five
Five
the Five
mous Declaration, and were expanded and updated into the ten principles
Principles
Principles
Principles
on of
of Peaceful
international Peaceful
of Peaceful Co-existence
Co-existence
relations. Co-existence
People may were
werewere
completely
completely
well completely
remember, absorbed
absorbed
it absorbed
is alsointo
into into
in thisthis
thisCon-
this
famous
famous
famous
Declaration,
Declaration,
Declaration,
ference that and
andtheand
were
were were
expanded
strategicexpanded
expanded
though and
ofand and
updated
updated
South’s updatedinto
into into
Collective the
the the
ten
ten ten
Self-reliance principles
principles
wasprinciples
first onon on
international
international
international
proposed. relations.
relations.
69 relations.
People
PeoplePeople
may
maymay well
wellwell
remember,
remember,
remember, itit is
is italso
also
is also
in
in this
this
in this
Conference
Conference
Conference
that
that that
the
the strategic
strategic
the strategic though
thoughthough
of
of South’s
South’s
of South’sCollective
Collective
Collective
Self-reliance
Self-reliance
Self-reliance was
was was
first
firstfirst
proposed.
proposed.
proposed.83
83 83
3.2.
3.2.3.2.
3.2.
Main
Main Main
Viewpoints
Viewpoints
Main Viewpoints
of
of New
Viewpoints New
of
ofNew
China’s
China’s
NewChina’s
Second
Second
China’s Second
Generation
Generation
SecondGeneration
Leaders
Leaders
GenerationLeaders
Leaders
Later
LaterLater
on,
on,on,
Later on,
China
China
China
China had
hadhadhad
experienced
experienced
experienced
experienced some
some somesort
sort sort
sort ofof
ofdomestic
domestic
domestic
of domestic turbulence
turbulence
turbulence
turbulence called
called
called called
“Cultural
“Cultural
“Cultural
“Cultural Revolution”
Revolution”
Revolution”
Revolution” during
during
during
during the
the decade
the decade
the
decade
decadeof
of 1964
of 1964
1964 –
of 1964 1974,
–– 1974,
1974,which
– 1974,which
which rendered
which
rendered
renderedthe
rendered
the
the the
newly
newly
newlynewly established
established
established
established country
country
country totoaaato
country
to even
even
even worse
a even
worse
worse situation.
worse
situation.
situation. After
situation.
After
Afterbasic
After
basic
basicorder
basic
order
orderhaving
order
having
having
having
beenbeen
beenbeen brought
brought
brought
brought
out out
out of
of of chaos,
outchaos,
chaos,
of chaos,
Deng
DengDeng
Deng Xiaoping,
Xiaoping,
Xiaoping,
Xiaoping, asas
as thethe
the second
as second
second
the second generation
generation
generation
generation leader,
leader,
leader,
leader,
has
has has
has advocated and fully carried out the famous national policy of “Reform
advocated
advocated
advocated
and and
and and
Open-up”, fully
fully
and fully
carried
carried
carried
has later out
out out
the
the famous
proposed the
famous famous
a 28-word national
national
national
policy
policy
(numbered policy
inof
of “Reform
“Reform
of “Reform
Chinese cha-and
and and
Open-up”,
Open-up”,
Open-up”,
racters) and
and and
has
has Policy
Foreign later
has
laterlater
proposed
proposed
proposed
in early aa 28-word
1990s28-word
aagainst
28-word(numbered
(numbered
then(numbered
world inin Chinese
Chinese
in Chinese
situation, characters)
characters)
which characters)
go-
Foreign
Foreign
Foreign
Policy
Policy
Policy
es as follows: in
in early
early
in early
1990s
1990s 1990sagainst
against
against
then
then then
world
world world
situation,
situation,
situation,
which
which
which goes
goesgoes
as
as as
follows:
follows:
follows:
Observe
Observe
Observe calmly;
calmly;
calmly;
Secure
Secure
Secure
our
our position;
our
position;
position;
Cope
Cope Cope
with
withwith
affairs
affairs
affairs
cool-headedly;
cool-headedly;
cool-headedly;
Be
Be good
good
Be good
68 See, e.g., http://baike.baidu.com/view/109269.htm?fr=aladdin#1.
at
at maintaining
maintaining
at maintaining aa low
lowa low
profile;
profile;
69 See Chapter I of this Article.
profile;
Never
NeverNever
claim
claimclaim
leadership
leadership
leadership
of
of the
the
of world;
world;
the world;
Act
Act but
Act
but stay
but
staystay
low
low profile
low
profileprofile
while
while while
biding
bidingbiding
our
our time;
our
time;time;
Make
Make Make
some
somesome
differences.
differences.
differences.
(“
(“冷静观察,稳住阵脚,沉
(“冷静观察,稳住阵脚,沉
冷静观察,稳住阵脚,沉
着应付,善于守拙,决不当头,韬光养晦,有所作为。
着应付,善于守拙,决不当头,韬光养晦,有所作为。 ”)
”) ”)
84
84 84
snational
national
nationalpolicy
policy
policyofof of“Reform
“Reform
“Reformand and Open-up”,
and Open-up”,
Open-up”,
Open-up”,
Open-up”,
andand
and
and
has
and
has
has
has
later
has
later
later
later
later
proposed
proposed
proposed
proposed
proposed
a 28-word
aaa28-word
28-word
a28-word
28-word
(numbered
(numbere
(numbere
(number
(numbei
(numbered
(numbered
(numbered
50 Theinin
inChinese
Chinese characters) Foreign
Chinesecharacters)
characters) Foreign
Foreign
Foreign
Foreign
Policy
Policy
Policy
Policy
Policy
in in
in
early
ininearly
early
early
early
1990s
1990s
1990s
1990s
1990s
against
against
against
against
against
then
then
then
then
then
world
world
world
world
world
situsss
nnworld
world situation,
situation, which
which
which
Public Policy • Vol.13, No.1goes
goes
goesasas
(2013) as follows:
European Journal of Management and
worldsituation, follows:
follows:
follows:
follows:
Observe
Observe
Observe
Observe
Observe
calmly;
calmly;
calmly;
calmly;
calmly;
Secure
Secure
Secure
Secure
Secure
ourour
our
our
position;
our
position;
position;
position;
position;
Cope
Cope
Cope
Cope
Cope
with
with
with
withaffairs
with
affairs
affairs
affair
affa
co
Observe calmly; Secure our position; Cope with affairs cool-headedly; Be
with
th
ithaffairs
affairs
affairscool-headedly;
cool-headedly;
cool-headedly; Be
Be
Begood
good at maintaining good
good at at
a low maintaining
at
atat
maintaining
maintaining
maintaining
maintaining
profile; Nevera claim
low
aaalow
alow
low
profile;
lowprofile;
profile;
profile;
profile;
Never
leadership Never
Never
Never
ofNever
claim
the claim
claim
claim
claim
leadership
world;leadership
leadership
leadership
leadershipof oth
oo
adership
dership
adershipofof ofthe
the
the world;
world;
world;Act
Act
Actbut
but
butstay
stay
stay lowlow
low
low
profile
low
profile
profile
profile
profile
while
while
while
while
while
biding
biding
biding
biding
biding
ourour
our
our
time;
our
time;
Act but stay low profile while biding our time; Make some differences.time;
time;
time;
Make
Make
Make
Make
Make
some
some
some
some
some
differences.
difference
differenc
differenc
differen
edifferences.
differences.
differences.(“冷
(“(“
(“
察, 住脚,沉着付,善于守拙,决不
着应付,善于守拙,决不当头,韬光养晦,有所作为。头, 光晦,有所作”)84”) ”)
”)8484
”)8484
484
84 。”)70
This summary is so concise 83and See
83
83
elastic
83See
See
See
Chapter
83 See toI of
Chapter
Chapter
Chapter
Chapterinterpret,
IIthis
Iof
of
of
I this
of
this that
Article.
this
this
Article.
Article.
Article.it has caused some
Article.
confusion. There is a point of84view that the tips in the 28-word foreign policy,
As
8484As
84 As
aAsAs
84 matter
aaamatter
matter
amatter
matter
of offact,
of
ofof
fact,
fact,
fact,
the
fact,
the
the
the
content
the
content
content
content
content
of ofthe
of
ofofthe
the
the
policy
the
policy
policy
policy
policy
is aisisissummary
ais
aasummary
summary
asummary
summa of
which goes as “be good at maintaining circumstances.
a lowSee
circumstances.
circumstances.
circumstances.
circumstances.
profile;
See
See
See
China
See
never
China
China
China
China
Expects
claim
Expects
Expects
Expects
Expects
a
leadership
Promised
a
aa Promised
Promised
Promised
a Promised
Future
Future
Future
Future
Future
through
through
through
through
throu
a S
aasummary
summary
summaryof ofof
ofthe
talks
talks
talksofof
ofDeng
world; Deng
Deng
act inbut
in
invarious
various
various
stay low profile while biding our time, ”Problems
isProblems
that the Chi-
ure
re
urethrough
through
throughaaaStable
Stable
StableOpen-up
Open-up
Open-upPolicy,
Policy,
Policy,and
and
and To To
Deal
To
To To
Deal
Deal
Deal
with
Dealwith
with
with
Development
with
Development
Development
Development
Development Problems
Problems
Problems by by
Using
bybyby
Using
Using
Using
Using
Timely
Timely
Timely
Timely
Timely
Situation
Situati
Situat
Situa
Situ
nese authorities and people should be
Xiaoping, worldly
Xiaoping,
Xiaoping,
Xiaoping,
Xiaoping,
Vol.Vol.
Vol.wise
Vol.
3,Vol.
The
3,
3,
3,The
3,and
The
The play
People’s
ThePeople’s
People’s
People’s safe,
People’s
Press,
Press,
Press,keep
Press,
Press,
1993,1993,
1993,
1993,hands
1993,
pp.pp.
pp.
321,
pp.pp.
321,
321,
321,
326
321,326
326
326
and326
and
and
and
363.
and
36
33
mely
imely
melySituations,
Situations,
Situations,inininSelections
Selections
Selectionsfrom
from
fromDeng
Deng
Deng
off the world issues, and concentrate ONLY on internal affairs. This point is
1,
1,326
326
326and
and
and363.
363.
363. SeeXiaoping
See
See
See
also
Seealso
also
also
Lialso
Li
Qizhen,
Li
Li Li
Qizhen,
Qizhen,
Qizhen,
Qizhen,
OnOn On
Deng
OnOnDeng
Deng
Deng
Deng
Xiaoping’s
Xiaoping’s
Xiaoping’s
Xiaoping’s
Xiaoping’s
Strategic
Strategic
Strategic
Strategic
Strategic
Diplomatic
Diplomatic
Diplomatic
Diplomati
Diploma Th
supported by the fact that Deng once proclaimed that
cDiplomatic
Diplomatic Thoughts,Social
DiplomaticThoughts,
Thoughts, Social
SocialScience
Science
Scienceofof
of Canton,
Canton,
Canton,
Canton,
Canton,
2000,
2000,
2000,
2000,
2000,
Vol.6,
Vol.6,
Vol.6,
Vol.6,
Vol.6,
pp.75
pp.75
pp.75
pp.75
pp.75
– 76;
–––76;
76;
and
–76;
76;
and
and
and
Chen
and
Chen
Chen
Chen
Xiangyang,
Chen Restateme
Xiangyang,
Xiangyang,
Xiangyang,Restate
Xiangyang,Restat
Resta
Res
yang,Restatement
yang,
ang, Some
Restatement
Restatement ofof countries
ofDeng
Deng
Deng in the
Xiaoping’s
Xiaoping’s
Xiaoping’s 28-Third word:
28-
28- World
word:
word:hope
word:
word:
Still
Still
Still
Still
to that
Still
to
be
to
toto
be
beChina
abebe
Prime could
aaa Prime
aPrime
Prime
Prime
Choice take
Choice
Choice
Choiceof the
Choice of lead.
China’s
of
ofof
China’s
China’s
China’s
China’s
Outward
Outward
Outward
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StraSS
Outward
Outward However,
OutwardStrategy,
Strategy,
Strategy, China
available
available
available at:should
at:
at: http:// not news.sina.com.cn/c/2005-09-07/16467705377.shtml.
http://
http:// donews.sina.com.cn/c/2005-09-07/16467705377.shtml.
sonews.sina.com.cn/c/2005-09-07/16467705377.shtml.
because she lacks the power and be-
news.sina.com.cn/c/2005-09-07/16467705377.shtml.
news.sina.com.cn/c/2005-09-07/16467705377.shtml.
ml.
ml.
l. cause she could not afford !63 to.
!63
!63
!63!63
This is a basic national policy. Taking the
lead will bring us no good but passivity… China should never take the
lead.71 Reconciliation,
Reconciliation,
Reconciliation,
Reconciliation,
Reconciliation,
Tolerance
Tolerance
Tolerance
Tolerance
Tolerance
andand
and
and
Huma
and
Hu
Hu
H
ance
nce
anceand
and
andHuman
Human
HumanSecurity
Security
Securityinin
inthe
the
theBalkans
Balkans
Balkans – New
–––New
New
New
–Balkans
New
Balkans
Balkans
Balkans
Balkans
andand
and
and
European
and
European
European
European
European
Union
Union
Union
Union
Union
– Peace,
–––Pea
Pea
Pea
–P
Union
Union ForDevelopment,
nion –––Peace,
Peace,
Peace, the time being,
Development,
Development, the Third World is not strong enough, and efforts to
Integration
Integration
Integration
establish the NIEO have always encountered difficulties and obstructions,
which have all cast shadow on the great course of SSC. In such situation, the
Chinese should seriously review and follow the strategic thought on foreign
relations and “the way of living and conducting oneself in society” recom-
mended by Deng Xiaoping. A seemingly logical conclusion is that it might
not be wise henceforth for China to adhere to the Third World’s common
cause of SSC and establishing the NIEO.
However, this point of view has at least neglected the following facts:
Firstly, Deng Xiaoping himself is one of the earliest advocators for SSC and
the NIEO. In UN General Assembly special session held in 1974, Deng de-
clared that China was a socialist and a developing country in the Third
World. Like most of the other countries in the Third World, China had un-
dergone the same hardship and encountered the same problems and tasks as
they had. China regarded fighting together with other Third World countries
against the imperialism, hegemonism, and colonialism as her sacred interna-
tional obligation. China took a firm stand on the side of the Third World and
would never seek hegemony. Right in the same UN special session, Deng as
the representative of the Chinese government put forward the basic idea of
establishing the NIEO. He asserted that the political and economic relation
70 s a matter of fact, the content of the policy is a summary of talks of Deng in various circum-
A
stances. See China Expects a Promised Future through a Stable Open-up Policy, and To Deal
with Development Problems by Using Timely Situations, in Selections from Deng Xiaoping, Vol.
3, The People’s Press, 1993, pp. 321, 326 and 363.
71 See Selections from Deng Xiaoping, Vol. 3, The People’s Press, 1993, p. 363.
51
among nations should be based on the Five Principles of Peaceful Coexis-

tence; the international economic affairs should be dealt with by all the na-
tions rather than be monopolized by a few countries. And it was also in this
UN special session when Declaration and Program of Action for the Establish-
ment of a New International Economic Order were adopted.72
Secondly, while emphasizing that we should “keep low-profile and bide

our time” and “never take the lead,” Deng Xiaoping also mentioned simulta-
neously again and again that “we must make some differences.” He said that
it was “unimaginable for a large country as China do nothing at all on inter-
national affairs; What should we do? From my perspective, China should play
an active role in promoting the establishment of a new international political
and economic order.”73
Thirdly, as early as in 1977, Deng Xiaoping had proposed to correctly inter-

pret Mao Tse-Tung Thought as an organic whole, which would otherwise be
misunderstood and cause confusion or even practical detriments. He stressed
time and again that “we must hold a comprehensive and correct recognition
towards Mao Tse-Tung Thought, we must be good at learning and using this
systemic thought to guide our work. Only in this way would we not distort
or misunderstand Mao Tse-Tung Thought.” 74 As is commonly known, Deng
Xiaoping Theory had been developed on the basis of Mao Tse-Tung Thought,
and is itself an organic whole. The 28-word guideline should thus also be in-
terpreted wholly as a dialectic strategic thought on global issues, instead of
separately by taking only one particular facet, so that we would not misun-
derstand Deng’s original intention.
Fourthly, as successor of Deng Xiaoping Theory, the new leaders of China are
advocating actively “South–South Coalition” and the establishment of a new
international political and economic order. One of the latest examples is that
China has been participating energetically in international practices inside
and outside the WTO concerning South–North Contradictions and cooper-
ation for the past more than ten years since the Doha Conference. It is wide-
ly known that due to the increase of comprehensive national strength and in-
fluence on international affairs, China together with members of the BRICS
have defeated the attempts of the hegemonic and big powers to manipulate
the conference at their will and won for the weak states the right to speak by
superior diplomacy.75
72 See Deng Xiaoping’s Speech in special session of UN General Assembly, in People’s Daily, April
11, 1994, Vol.1.
75 See An CHEN, The Voice from China: An CHEN on International Economic Law, Springer-ver-
lag Press, 2014, pp.207 – 239.

3.3. Main Viewpoints of New China’s Third and Fourth Genera-

tion Leaders
The third generation of New China’s Leaders, headed by Jiang Zemin, ha-
ve contributed tremendously and achieved important results by enforcing
the 28-word foreign policy. The most eminent achievement is to get China
through various blockades set by developed powers and finally into the Wor-
ld Trade Organization, inside and outside of which China has been carrying
out persistent struggles against hegemonism together with the global South
weak groups.
As successor of Deng Xiaoping Theory, the fourth generation leaders of Chi-
na are advocating actively ‘South-South Coalition’ and the establishment of a
new international political and economic order.
One of the latest examples is that China has been participating energetically in
international practices inside and outside the WTO concerning South-Nor-
th contradictions and cooperation for the past decade since the Doha Confe-
rence. It is widely known that due to the increase of comprehensive national
strength and influence on international affairs, China together with members
of the BRICSM have defeated the attempts of the hegemonic and big powers
to manipulate the conference at their will, and won for the weak states the ri-
ght to speak by superior diplomacy.76
Besides, in the historical course of Global South’s collective self-reliance and
South-North dialogue, a new combination of powers and a new approach
to hold dialogues emerges and begins to draw attention from all around the
world. Specifically speaking, there will be regular meetings attended by the
leaders of G7 or G8 consisting of the most developed countries with the lea-
ders of several major developing countries. In the meeting, South-North dia-
logue attempting to tackle major world issues and knotty points will be ini-
tiated. This kind of dialogue has been conducted for several times, latest of
which was held in Japan in July 2008, attended by leaders of G8 with leaders
from China, India, Brazil, South Africa and Mexico.
Chinese leader Hu Jintao gave insightful comment on this new approach of
South-South Cooperation and South-North Dialogue during this Summit77.
He pointed out that the world is in the course of great changes and adjust-
ments. In recent years, the overall power of the developing countries is on the
rise; their cooperation is enhanced; and their influence on international af-
fairs is becoming greater. China, India, Brazil, South Africa and Mexico are
all important developing countries, which have taken up 42% of world’s po-
76 S ee An CHEN, A Reflection on the South-South Coalition in the Last Half Century from the
Perspective of International Economic Law-making: From Bandung, Doha and Cancun to Hong
Kong, The Journal of World Investment & Trade, Vol.7, No.2, 2006.
77 See ‘Hu Jintao’s Remarks in the Meeting of Leaders of Five Developing Countries’ at http://news.
xinhuanet.com/newscenter/2008-07/08/content_8512384.htm.
53
pulation and 12% of world’s GDP. The enhanced coordination and coopera-
tion between these five nations will not only bring benefit to development of
each nation, but also to the consolidation of South-South Cooperation, the
promotion of South-North Dialogue, and the sacred cause of peace and de-
velopment of mankind. In the past year, multi-level mechanisms for coordi-
nation were set up by these five nations and have attained positive effects in
dialogues with the G8. Efforts should be continued on such basis. Now that
these five nations have become an important component of the world’s eco-
nomy and the major driving force of world’s economic growth, they should
enhance reciprocally bilateral and multilateral communication and coopera-
tion in order to tackle unfavourable conditions in joint effort, maintain mo-
mentum and vitality for rapid economic growth, and continue to contribute
to the world economy.
Hu Jintao emphasized that:
South-South Cooperation is an important way to secure common deve-
lopment and to overcome one’s own shortcomings by learning from ea-
ch other. We should make contributions to the South-South Cooperation
and be a role model. On the one hand, we should in joint effort promo-
te multilateralism and democratization of international relation; stand up
for the developing countries the right to participate and making decisions;
and create favourable external environment for the development of the
developing countries. On the other hand, we should play an active part in
promoting the reform of international economic, financial, trade system,
safeguarding the legitimate right of the developing countries; strengthe-
ning the ability of the developing countries to cope with all kinds of risks
and challenges; and promoting a balanced, harmonious and sustainable
development of the world economy.
Hu’s comments are concise but comprehensive, which have not only inclu-
ded summary of the past and vision for the future of the South-South Self-re-
liance, but also emphasized on five nations’ historical task and their influen-
ces on the South-South Self-reliance as a role model and mainstay. These in-
sightful analyses have drawn worldwide attention, and have the significance
of enlightening and guiding China’s self-positioning in the course of establi-
shing the NIEO.
Significance of being active in international affairs and being a role mo-
del and mainstay for the NIEO has once again been demonstrated by the
South-North Dialogue in Washington Summit of November, 2008. The who-
le world is suffering from a severe international financial crisis, of which
the pervasiveness, the extensity and impact have been unprecedented since
1930s. In Washington D.C., U.S., in mid-November 2008, leaders of world’s
major developed and developing countries held a Summit of G20 to map out
a countermeasure. Major developing countries including China, Brazil, Ar-
gentina, India, Indonesia, Mexico, and South Africa gathered in the capital
of U.S. They made it clear that the international community should draw les-
sons from this worldwide financial crisis and reform the international finan-
cial system to the extent necessary. This reform should be kept in the track
towards establishment of a just, fair, tolerant, and orderly new internatio-
nal financial order, and be conducted comprehensively, equitably, gradual-
ly and effectively. Comprehensiveness means that design of the new system
must be carried out as a whole. Specifically speaking, the international finan-
cial system, monetary system, the financial institutions, rules and procedures
of international finance, etc. should be included in the reform. As for equi-
tableness, it means overall planning and all-round consideration. The reform
should reflect interests of different parties, and form a mechanism for deci-
sion-making and management which allows for the participation of a vast
variety of parties, especially the emerging market economies and the deve-
loping countries. What’s should be emphasized is that the we should reform
the mechanisms for electing the decision-makers, strengthen for the develo-
ping countries the rights to speak and their representativeness in the interna-
tional financial institutions.78
This clear-cut stand has long been asserted by the developing countries, and
its reassertion against the background of severe international financial cri-
sis is of great significance. The world is watching and expecting. Put it in
another way, efforts to reform the existing international financial regime (the
Bretton Woods System) incarnating the old international economic order has
been summoned again, to which the hegemonies could no longer turn a de-
af ear as they used to be.
The financial crisis Summit of the G20 in the early of April 2009 in Britain,
as well as in September of the same year in Pittsburgh, have all seen Chine-
se leader’s reaffirmation of China’s stand: major developing countries should
do something actively, being a role model and mainstay, in undertaking glo-
bal historical tasks through South-South Self-reliance; they should positively
promote the ‘eradicating the old and fostering the new’ of international fi-
nancial order and thereby urge a progressive and overall renewal of inter-
national economic order. These affirmations will be again verified vividly by
international practice of the day.79 The Pittsburgh Summit saw another bre-
78 S ee Hu Jintao’s Remarks in the Summit on Financial Markets and the World Economy: Uni-
ty in Adversity’, at http://news.xinhuanet.com/newscenter/2008-11/16/content_10364070.
htm, last accessed on August 31, 2014. See Hu Jintao’s Address on the G20 Summit: Row in
the Same Boat in Tough Times (携手合作同舟共济), available at: http://www.chinanews.com/
gn/news/2009/04-03/1630688.shtml, last accessed on August 31, 2014; see also China’s Influ-
ence Raises Concerns, American Media suggests G20 to invite Beijing, available at: http://news.
xinhuanet.com/world/2009-03/30/content_11099256.htm; see also G20 London Summit Ush-
ers in New International Order, available at: http://news.xinhuanet.com/world/2009-04/04/con-
tent_11129541.htm.
79 See Hu Jintao’s Address on the G20 Summit: Row in the Same Boat in Tough Times (携手合
作同舟共济), available at: http://www.chinanews.com/gn/news/2009/04-03/1630688.shtml, last

accessed on August 31, 2014
55
ak-through, reflected by Para. 50 of the G20 Leaders’ Statement, declaring

that “Today, we designated the G-20 as the premier forum for our interna-
tional economic cooperation.”80 This signals a start when developed powers
would have to cease being condescending and arrogant, and begin to treat
the main representative countries of the global weak South as equal to carry
out South-North dialogue.81
In a word, the events aforementioned which took place in-between 2008 and
2009 have shown that:
Firstly, the strategy of South-South Self-reliance is taking root in the hearts of
people around the globe, which makes it an important means of fighting for
and maintaining equal status of weak states in the international community.
Secondly, the strategy has always been focusing on winning equal right to
speak, to participate and to make decisions on major world economic and
trade issues.82
Thirdly, the fundamental purpose of this strategy has always been promo-
ting the comprehensive reform of the international economic order stage by
stage; changing the current situation in which the global wealth is unevenly
and unjustly distributed; and realizing redistribution of the global wealth and
common prosperity around the globe.
3.4. Main Viewpoints of New China’s Present (Fifth)

Generation Leaders
The continuity of Communist Party of China as the ruling party since 1949
has enabled the stability of China’s foreign policy. The present fifth genera-
tion of Chinese leaders has expressed on various occasions yet again similar
views on steering China’s foreign policy directions, including on issues like
South-South collective self-reliance, and the reformation of OIEO. During
his one and a half year presidency, President Xi Jinping has time and again
made consistent and evolutionary elaborations as regards the abundant con-
notations of China’s traditional self-positioning, and has been endeavoring to
80 S ee G20 Leaders’ Statement: The Pittsburgh Summit, September 24-25, 2009, available at: http://
www.g20.utoronto.ca/2009/2009communique0925.html, last accessed on August 31, 2014.
81 See An CHEN, A Third Comment on China’s Strategic Position in the Establishment of NIEO:
To Where would the G20 & its “Path from Pittsburgh” Lead-The Pending Riddle of the New
Platform of G20 South-North Cooperation and the Conflict between Ideas such as “Compli-
ance” and “Change”, Journal of International Economic Law (China), Vol. 16, No. 4, 2009, pp.1-
29.
82 See, An Chen, ‘China’s Strategic Positioning in establishing the NIEO’ ; ‘Reflections on the
South-South Coalition in the Last Half Century from the Perspective of International Econom-
ic Law-making: From Bandung, Doha and Cancun to Hong Kong (revised in 2008)’, in An Chen
on International Economic Law (five-volume edition), Fudan University Press, 2008, respective-
ly VI and XIV , Part I, Vol. 1 (The Voice from China) An Chen on International Economic Law,
Springer-verlag Press, 2013, Chapters 6 & 7.
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– Peace, Development, Integration For example, with For the example, forwarding with the of China’s forwarding “going of China’s abroad”“
gofofChina’s China’s“going “goingabroad” abroad”strategy, strategy, lots lots of
Chinese enterprises and individuals crowded into Africa andin of Chinese enterprises and individuals crowded
57
With the relentless enhancing of China’s comprehensive national strength to-

gether with its global influence, certain major players on the world arena
have long shown their antagonism. Some developing countries are not with-
out their doubts either, they take a suspicious view regarding whether China
would also pursue hegemony. These new circumstances are testing the con-
sistency of the diplomatic strategy that China has been adopting.
For example, with the forwarding of China’s “going abroad” strategy, lots of
Chinese enterprises and individuals crowded into Africa and Latin America,
causing a number of novel prejudices against China. Some western media has
shown a certain mental aberration – maybe out of jealousy – towards the fact
that Sino-African and Sino-Latin American economic cooperation has been
expanding rapidly.85 They wantonly, as a Chinese saying, measure the stat-
ure of great men by the yardstick of small men, or, gauge the heart of a gentle-
man with the own mean measure (以小人之心度君子之腹), make irrespon-
sible remarks (信口雌黄), and arbitrarily tag China with a so-called “New
Colonialism” label. Some western politicians, governmental think tanks and
mainstream medias have preached “China Threat (Africa) Doctrine”, trying
their best to discredit Sino-African relation, accusing that China is carrying
out new colonialism throughout Africa and is plundering Africa of its nat-
ural resources. Christian Science Monitor from the U.S. once reported that
“[T]he rapid economic development and a strong demand for mineral re-
sources and market have led China to Africa… China is crazily feeding with
the oil berried in countries around Guinean Coast.” In one speech of Jack
Straw, former Foreign Secretary of UK, addressed in February 2006 during
his visit to Nigeria, China is listed with poverty, regional conflict, terrorism
and the like as ten grand challenges that Africa must face. He also claimed
that “what China is doing to Africa today is almost what the West have do-
ne 150 years ago.” The Economist reported in a more vivid way that “about
600 years ago, seafarers of Ming Dynasty brought back a giraffe from the East
coast of African continent to satisfy the Emperor’s curiosity; while nowadays
vehicles from China sail periodically on a similar ship route loaded with oil,
iron ores and other commodities, in order to satisfy the huge appetite of this
85 e volume of Sino-African trade has increased from $0.82 billion in 1992, to $10.6 billion in
Th
2000, to $100 billion in 2008, to $200 billion in 2012, with China becoming Africa’s largest trade
partner in 2009. The direct investment from China to Africa has mounted up to $15 billion till
2012.
As for Sino-Latin American trade volume in 2013, Sino-Brazilian turnover broke through $90
billion, with China maintaining Brazil’s largest trade partner, while Brazil being China’s ninth
largest; Sino-Argentine turnover reached $14.8 billion, 2400 times more than the number when
these two countries first established diplomatic relations, with China becoming Argentina’s sec-
ond largest trade partner and main capital source; Sino-Venezuelan trade volume has also in-
creased from $1.4 million to $19.2 billion, with China becoming Venezuela’s second largest
trade partner.
gigantic economic body.”86 During her tenure, Hilary Clinton, former United
States Secretary of State, has also specifically expressed her concern of Chi-
na’s “new colonialism” in Africa.87
The so-called “new colonialism” is coined to generalize a new pattern of
western powers’ exploiting the newly independent but still weak develop-
ing countries those were originally colonies before WWII. After WWII, the
world situation have rendered the direct colonialism impossible to maintain,
forcing the traditional powers to turn to a more covert exploiting means. By
taking full advantage of their accumulated economic strength, these western
powers have continued to export their own value priorities to weak develop-
ing countries, and try to integrate them into a world economic system that
was established by these powers and mainly for themselves, and continue to
squeeze economic benefits from the weak countries who have transformed
from
lonies only intooriginal colonies only into modern raw material base areas, sales mar-
kets
stinations. 102 and investment destinations.88
However, as numerous facts are showing, compared to aforesaid ultra-selfish
aid ultra-selfish
behavioral pattern, China has been acting rather to the contrary, by holding
ary, by holding
“through mutual beneficial cooperation to win-win (互利、互惠、合作、共
、合作、共赢)” as its fundamental norm of conducts, by practicing honesty and frank-
)” as
d frankness,
ness,by by matching its deeds strictly to its words, and by acting as transparent-
ansparently andconsistently as possible.89
ly and
As a matter of fact, there are also a lot of reports that pertinently comment
and fairly praise China’s economic and trade practice with African and Latin
ly comment Americanand countries. For example, right after the 2006 Beijing Summit of the
ican andForumLatin on China-Africa Cooperation, various newspapers from Spain, Ger-
Summit many
of theand the U.S. have reported this fruitful event with a supportive tone. La
Vanguardia
Spain, Germany of Spain reported on Nov. 6 that China does not make accusation
of other
ortive tone. La countries’ development strategy, nor add any non-trade conditions
ke accusation of
conditions86 to See its
Xiaochun Lin, West Preaching China’s New Colonialism in Africa, available at: http://www.
Such brand southcn.com/news/international/zhuanti/wjbfz/lfkm/200606170131.htm,
new Sep. 30, 2014. See also
Zezhong ZHANG, Sino-African Economic and Trade Cooperative Mechanism in New Times –
n, especially in
From a Perspective of International Economic Law, People’s Press of Shanghai, 2013,pp.145-147.
ung of Germany
87 See ‘Africa, China and governance: A new colonialism?’, at http://www.one.org/us/2011/06/16/
partnership africa-china-and-governance-a-new-colonialism/,
with Sep. 30, 2014. See also ‘Hillary Clinton Warns
Africa Of ‘New Colonialism’’, at http://www.huffingtonpost.com/2011/06/11/hillary-clinton-afri-
countries widely ca-new-colonialism_n_875318.html, Sep. 30, 2014.
y impressive
88 It isof
Lenin who first pointed out the characteristic of “neo-colonialism”, that the imperialistic
cs. An Editorialcountries mainly exploit economic means to control and exploit weak countries, instead of di-
rectly occupy their lands. See Vladimir Lenin, Notes on Imperialism, in Completed Works of
a is the largestLenin, People’s Press, 1959, Vol.39, p.280.
dvocates for the
89 Document on China’s Policy towards Africa issued by Chinese government on January 12,
2006 could be seen as the official counter argument against these accusations. African coun-
monious world, tries have found official source to relieve their doubts, and have thus regarded China as usu-
airs. Chinaal istheira reliable “All-weather Friend”. This document is available at http://news.xinhuanet.com/
wn characteristicworld/2006-01/12/content_4042333.htm, Sep. 30, 2014.
a and Africa in
59
to its contracts to interfere with other countries’ domestic affairs. Such brand
new style of China as a responsible power is worthy of appreciation, espe-
cially in today’s unrest and chaotic world. Frankfurter Allgemeine Zeitung
of Germany reported on the same day that this Summit has shown China’s
partnership with Africa through a series of new cooperation and deals. Afri-
can countries widely praise the unconditional aid and loan from China, and
are very impressive of China’s achievement in developing its own domestic
economics. An Editorial from the US QiaoBao (uschinapress.com) report-
ed that China is the largest developing country on earth with 56 groups of
minorities, who advocates for the Five Principles of Peace and Co-existence
and the ideal of harmonious world, and opposes the interference with other
countries’ domestic affairs. China is a proofterms that poverty
of economic,can be political,
successful-diplomatic
termsofofeconomic,
terms economic,political, political, diplomatic
diplomatic andcultural
and culturalcoo co
plomatic and ly cultural
relieved through
cooperationits own characteristic
is intensive
now cultural tradition and value system.
al, diplomatic and cultural cooperation is more
nowthan more intensive than
everininofaaglobalized ever
globalizedpolitical,in a globalized
world.104diplo-
104 world
d cultural The
cooperationmutualisneed nowofmore Chinaintensive
and Africa than inever
terms economic, world.
ed world.world.
balized 104 104
matic and cultural cooperation Underisthese
now more
these Under
aforesaid intensivethesethan aforesaid
circumstances, acircumstances,
global- Xi has,P
ever inPresident
ized world. 90 Under aforesaid circumstances, President Xi has, u
ances,
umstances,President
PresidentXi has, Xi upon
has, uponhis succession
histhe as
succession
new leader as oftheChina,
new leaderstarted ofa China,
series started
of tight adiplo
seri
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Under
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of these
tight aforesaid
diplomaticvisits to Russia,
circumstances,
visits
Africa, to Middle President
Russia, Africa,
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Xi has, uponAmerica,
Middle his
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f tight diplomatic
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of China,Africa,
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visits Southeast
to Rus- Asia,
le Asia, Southeast Asia,
Middle Asia, Southeast Asia, Europe, Europe, South Korea,
South
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Korea, Mongolia
America, and Mongolia
South Asia and
during SouthMarA
theast Asia, Europe,
sia, Africa, South
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countries achieve90
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正确义利观，义利并举、以义为先，促进南北对话和南
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义利并举、以义为先，促进南北对话和南
Nov. 8, 2006, available at: http://www.chinamil.com.cn/site1/zbxl/2006-11/08/content_638228.
htm.
See Diplomatic Strategy and Ideas as Reflected by Xi Jinping’s Ten Visits, available at: http://big5.
91
xinhuanet.com/gate/big5/news.xinhuanet.com/politics/2014-10/09/c_1112741340.htm, Sep. 30,

2014.
92 See Xi Jinping’s Address during his visit to Mongolia in August 2014, available at: http://news.
sohu.com/20140823/n403698395.shtml, last accessed on August 31, 2014.

93 See Xi’s speech at ‘Five Principles of Peaceful Coexistence’ anniversary, “Carry forward the Five
104 See Positive Comments from World Media o
Principles of Peaceful Coexistence to build
104 See
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content_638228.htm.
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e at: http://www.chinamil.com.cn/site1/zbxl/2006-11/08/
hinamil.com.cn/site1/zbxl/2006-11/08/ content_638228.htm.
105 See Diplomatic Strategy and Ideas as Reflect
105 See Diplomatic Strategy
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and IdeasasasReflected
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nes
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nt. (坚持正确义利观，义利并举、以义为先，促进南北对话和南
opment. ((坚持正确义利观，义利并举、以义为先，促进南北对话和南
坚持正确义利观，义利并举、以义为先，促进南北对话和南
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108
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109园).
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95
These diplomatic visits and s
These These diplomatic
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have have responded
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http://www.chinadaily.com.cn/world/2014xibricssummit/ 2014-07/15/content_17788270
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94 See President Xi’s joint written last last
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61
of energy, finance, civil livelihood, and the interconnection and interworking

of infrastructure facilities.
Specifically speaking, Middle Asia and South Asia are core regions of Asian-
European continent, forming a safeguard curtain for China’s stable domestic
development, and also pointing a direction of China’s strategic opening-up to
the west. In September 2014, President Xi attended the Fourteenth Shanghai
Cooperation Organization Summit Meeting, and paid official visits to Tajiki-
stan, Maldives, Sri Lanka and India, which were along the ancient maritime
silk road, and had an intense historical intercourse with China. Nowadays
their interests are closely combined with China’s, and they are important piv-
ots for the common construction of a 21st Silk Belt and Maritime Silk Road.
Amongst these visits, one thing per se merits special attention, that President
Xi pointed out during his visit to India, a BRICS Member with 1.2 billion
population, that Chinese Dragon and Indian Elephant should pursue har-
monious coexistence, and peaceful, cooperative and inclusive development,
which is beneficial to both countries and those around, and even the world
at large. Indian Prime Minister Narendra Modi suggested a nonstop promo-
tion of the bilateral relationship by carrying forward the from Inch to Mile
spirit. Both sides decide to construct a closer development partnership, to
enrich their bilateral strategic relationship. They agree to cooperate at the bi-
lateral, regional and global level, to maintain the common interests of both
countries and other developing countries, and to propel international politi-
cal and economic order towards a more reasonable and fair one. China and
India reiterate to remain calm and peace regarding their border issues, and
to seek for a friendly way out. President Xi’s visit has built on more trust be-
tween these two neighboring countries, and has eliminated to some extent
the existed doubts, and has actually promoted the Sino-Indian relation to a
new historical phase.
To sum up, the surrounding neighbors are China’s base of existence and fur-
ther prosperity. The development of China cannot be separated from a sta-
ble, peaceful and cooperative peripheral circumstance, and it can also bring
many opportunities to surrounding countries. Currently, China’s diplomatic
activities are entering a new round of active phase. For over a year, President
Xi, as the successor and promoter of traditional China’s “good neighboring
and mutual beneficial” ideal and principle, has spread his footprints across
over 13 countries in Mid-Asia, South East Asia, North East Asia and South
Asia. At each place, with his sincere emotions, plain words, firm believes,
and concrete measures, President Xi has personally spread the diplomatic
ideas of intimacy, sincerity, benefits and tolerance. It is fair to believe and ex-
pect that, China will certainly promote regional integration. With the giant-
hawk’s magic wings of “One Belt and One Road” fully spreading, China is
bound to take off and fly high, and promote neighboring states to spread
their wings and take off together.
Meanwhile, people can fully expect that when the giant-hawk of One Belt
and One Road spreads its wings and soars across the sky98, the anti-China
rroundingring of containment
countries. Currently,that international
China’s hegemony
diplomatic and its followers are busy
activities
constructing would be completely shattered. This would be another histori-
round ofcal
active phase. For over a year, President Xi, as the
contribution to establish NIEO for a better future of global people.
moter of traditional China’s “good neighboring and mutual
d principle, has spread his footprints across over 13 countries
4. SSC
East Asia, NorthtoEast
SailAsiaOutand again at Asia.
South the Age of 50
At each place,
motions, plain words, firm believes, and concrete measures,
At the age of “knowing the decrees of Heaven”, to retrospect the historical
ersonally path
spread
andthe diplomatic
various ideas of intimacy,
actual performances sincerity, Cooperation, one can
of South-South
make the following summaries:
nce. It is fair to believe and expect that, China will certainly
ntegration.Firstly, the giant-hawk’s
With the magic wings
South-South Cooperation hasoftaken
“Oneon Beltdifferent forms in diffe-
rent fields
lly spreading, Chinaof isinternational
bound to take economic
off andlaw.fly
Under
high,theandUN and GATT of inter-
national trade law, the global South
ing states to spread their wings and take off together. have coordinated and gathered their for-
ce together, which resulted in a certain success of law-making and law-refor-
can fullyming.
expectIn that whenofthe
the field giant-hawkinvestment
international of One Belt law,and
although the multilateral
its wings cooperation
and soars across
amongthe thesky,
South the
112 anti-China
is hard to achievering of of the bilateral trea-
because
international hegemony and its followers are busythe south countries ha-
ty concluding regime that the North seek to impose,
ve nonetheless
be completely shattered. cooperated,
This would and bethe another
bilateral/regional
historicalinvestment agreemen-
ts between/among the South are characteristic in a good way to facilitate the
blish NIEO for a better future of global people.
cooperation. In the field of international financial law, the South has long de-
manded
again at the Age of to 50
reform the original unfair rules and has been consistently denied,
so with their collective strength consistently growing, instead they have now
wing the decrees
formed aofdifferent
Heaven”, kindto of
retrospect the historical
South-South Cooperation, pathas a competition to the
performances of South-South
original Cooperation,
set of international financialone can make the
rules.
es: Secondly, the history has shown that, the introduction of a potentially com-
petitive institution
South Cooperation has takencan on indeed
differentfacilitate
forms the global South to achieve their
in different
goals through cooperation. This is the exact lesson that we learn from the
nal economic law. Under the UN and GATT of international
law-reforming fight within the field of international trade rules. With the
al South have coordinated
establishment and gathered
of UNCTAD theirthe
in 1960s, force together,
developed countries came up with
a certain ansuccess of law-making and law-reforming. In the
imminent threat that the global South might just turn to this newly for-
nal investment law, although
med institution and forum,the and
multilateral cooperation
retreated from the GATT system collectively.
s hard to This no doubt
achieve because had of
accelerated the process
the bilateral of the North’s acceptance of S&D
treaty concluding
orth seekand to GSP
impose,as thethereformation to the GATT
south countries rules. Similarly, with the establish-
have nonetheless
ment of a competitive institution, namely the BRICS Development Bank, it
momentum when the giant-hawk spreads its wings, Zhuangzi describes in
hat “In the 98northern
As to theocean
majesticthere is a fish,
momentum called
when the k'un, I spreads
the giant-hawk do not its knowwings, Zhuangzi describes in his
famous
d li in size. This k'unwork intothe
that “In
changes northern
a bird, ocean
called thethere is a Its
p'eng. fish,back
calledis the
I dok’un, I do not know how many
ny thousand lithousand li in size.
in breadth. When Thisit k’un changesitinto
is moved, a bird,
flies, called obscuring
its wings the p’eng. Its back is I do not know how
many thousand li in breadth. When it is moved,
…in the Records of Marvels we read that when the p'eng flies southwards, it flies, its wings obscuring the sky like clouds…
in the Records of Marvels we read that when the p’eng flies southwards, the water is smitten for
n for a spacea space
of three thousand li around, while the bird itself mounts
of three thousand li around, while the bird itself mounts upon a great wind to a height
to a height ofofninety
ninety thousand li,
thousand li, for
for aa flight of six
flight of six months’
months'duration.
duration.” ” SeeSee Zhuangzi, A Happy Excursion
y Excursion (《逍遥游》),
( translatedbyby
), translated LINLIN Yutang,
Yutang, available
available at: http://
at: http://www.edepot.com/taochuang.html,
aochuang.html, Sep.Sep.
30, 2014.
30, 2014.
63
can be fairly expected that not only such institution would benefit the deve-
loping countries in a way that the IMF and the World Bank have never provi-
ded, and also that the North would face again more severe pressure to under-
take the reform of the existed financial order. Either way, it is a huge progress
in the construction of a fairer financial order. To take a step further, one can
even reasonably predict, when the comprehensive power of the Global South
continues to grow and accumulate, their ability to participate in the institu-
tional competition with the North would also enhance, making the future of
South-South Cooperation even more optimistic.
Thirdly, China as a developing country has never changed its attitude towards
the SSC career, and its relating efforts have been rather persistent, regard-
less of the actual ups and downs in the performance of this collective strate-
gy, which is the natural development course of Justice historical career/phe-
nomenon anyhow. With its comprehensive national strength keeping rising,
China will certainly be more and more capable of playing her role as a dri-
ving force and firm mainstays in the course of SSC. Such confidence and ca-
pability should be dispersed among and shared by the many South brother
countries, who are still fighting for a fairer and more equitable international
environment for development.
Fourthly, for the past half century, despite all the difficulties and hardness,
the global South-South Cooperation within the international economic field
has persistently and consistently been fighting to achieve its “decrees of He-
aven”. If we take the initiative of establishing the Group of 77 as to organize
collective struggle against the unfair post-war international economic order,
for present day after five decades have elapsed, with the comprehensive stren-
gth of the South group enhancing sustainably, SSC will show more and mo-
re activity and capability to launch cooperation within South countries, whi-
ch would then form a competitive propellant to reform and refine traditional
South-North struggle and South-North cooperation.
ABDLATIF AL-HAMAD
Contribution to The Group 77 50th Anniversary
As the international community is commemorating the 50th anniversary of the

G77, one can only commend the fortitude and dedication with which this Group
has fought for the common interest of the countries of the South and brought
to the fore their development perspectives and concerns. The Group is praised
for harmonizing developing countries’ position on global issues and serving as a
platform for actions to influence the international development agenda.
At this juncture, the Group is poised to face an even more challenging peri-
od ahead. The ability of accommodating the diverse needs and preferences of
member countries and the leverage for influencing the international develop-
ment agenda remain a daunting challenge.
Today, fifty years after its launch, accomplishments of the Group are visible
beyond any doubt. There were, however, many unmet goals and disappoint-
ments. Globalization, while bringing many new windows of opportunity es-
pecially for the developed North, has exacerbated income disparity, accentu-
ated uncertainty and eroded policy space in many developing countries.
Great many hurdles in terms of restrictive trade measures need to be ad-
dressed in order to improve the long-term growth prospects in the South,
as many rich-countries’ markets are still not freely accessible to developing
countries’ exports.
The new rules of the game under the World Trade Organization (WTO) are
trespassing on domestic policies such as tax systems, subsidies, industrial
policy, investment promotion and environmental standards. The Agreement
on Intellectual Property Rights (TRIPS), in particular, represents a major
constraint for poor countries to access knowledge and adapt the technologies
used in advanced countries.
Overall WTO’s rules produced weak results for small developing countries
and were more attentive to the interest of developed nations. Other decisions
that shape the future of developing nations are still taken in contexts that are
not compatible with the circumstances and capabilities of these nations.
* Director General and Chairman of the Board of Directors, The Arab Fund for Economic and
Social Development

Vol. 13, No.1 (2013) • issn 1726-6475
65
A. Al-Hamad: Contribution to The Group 77 50th Anniversary
The developing countries and especially the poor nations are still vulnerable
to world economic crises and international shocks, and are not well equipped
to deal with their consequences. The subprime mortgage crisis, which was
nurtured by financial globalization and ill-regulated finance, emerged in the
banking systems of developed countries and extended beyond these coun-
tries’ borders to cost poor nations dearly in terms of lower growth and more
unemployment and poverty. Similarly, the repetitive surges in food prices
and the protracted international food crises have sent scores of people in
poor nations into deprivation and abject poverty. Still fresh in the minds is
the initiative to convert corn to ethanol (Biofuel), which has engendered big
hikes in the international price of corn borne mostly by developing coun-
tries.
The Group needs to work for better globalization and for new economic or-
der that is more mindful of economic development and domestic policy ob-
jectives in developing countries such as growth, employment and social eq-
uity. It should also strive to reverse the recent trends where domestic policies
have become subservient to global policies.
The most fundamental change that is needed to ensure that the new econom-
ic order works as it should for developing countries is the modus operandi
of international institutions and multilateral negotiations. In this regard, the
Group should contribute to the effort of improving the decision-making pro-
cess and reforming the system of voting in international institutions towards
greater transparency and openness to make them more responsive to con-
cerns of developing countries, especially the least developed amongst them.
The Group needs to move vigorously in a number of areas. First, the interna-
tional trade system is still uneven and unfair, and is far from achieving de-
velopment-friendly outcomes for poor nations. Correcting the actual imbal-
ances between the actual trade arrangements and the domestic policy goals
of developing countries is paramount.
Also echoing previously formulated plights, the issue of labor migration to
the developed countries still remains an uncharted territory for globaliza-
tion. Temporary work visa schemes for potential migrants represent a great
window of opportunity to reduce poverty and unemployment, in the devel-
oping countries.
The third area that needs to be addressed is economic instability. Poor na-
tions tend to be hurt disproportionately by any global economic instability
and international shocks. From this premise the Group should reinvigorate
its efforts of preventing the imbalances from aggravating economic cycles in
the developing countries. There must be better mechanisms to alleviate the
impact of global economic instability and international shocks.
Finally, a number of issues require more effort from the Group and need
concerted action by the global community to develop common strategies.
These include global warming and other environmental concerns of rele-

vance to the world at large. Water shortages, food security, air pollution, de-
sertification, increasing land salinity and declining agriculture productivity
are among the many concerns that developing countries cannot deal with
single-handedly but need strong international resolve and the concerted ac-
tion by all nations.
PAOLO ACANFORA
The Global South in the New International

Disorder: the Idea of a Shared Society
As it is widely known, international order has been changing its structure

and characteristic traits as from the end of the Second World War, making
international organizations, including NATO, revamp their own structures.
Present day global conflicts, especially the outbreak of the Russian-Ukrainian
crisis, have led analysts to a discussion of a Second Cold War seen as a rep-
etition of the East-West conflict which characterized the second half of the
last century.
I believe that at this stage we should be clear in terms of the vocabulary used.
The expression Cold War was first coined and used by George Orwell back in
1945 after reflecting on the new global balance established after the explosion
of the nuclear bombs. This expression was subsequently used by the Amer-
ican journalist Walter Lippmann when referring to the American – Soviet
Union antagonism. It described, though, a historical background quintessen-
tially different to the present one.
As a historian, on the other hand, I cannot but underscore the fact that the
expression Second Cold War was used to describe the period of new tensions
between Moscow and Washington in the early 1980s. So, I maintain that this
paradigm should be confined definitively to the academic debate.
The end of the intrinsically bipolar system which the cold war had nour-
ished was heralded by some analysts across the world as the final victory of
the capitalist-liberal model perfectly represented by the American way of life,
its value system and general weltanschuung. American political analyst Fran-
cis Fukuyama interpreted this thesis effectively describing the new historical
background viewed as a paradoxical end of history.1
Still other analysts have forwarded a rather different interpretation. Marxist
historian Eric Hobsbawm2 and French Pierre Lellouche3, from two radical-
* Professor, International University for Languages and Media, Milan, Italy

1 Fukuyama, F., The end of history and the last man, New York, Free press, 1992.
2 Hobsbawm, E., Age of Extremes. The Short Twentieth century, 1914–1918, London, Michael Jo-
seph, 1994, 558-585.

3 Lellouche, P., Le nouveau monde: de l’ordre de Yalta au désordre des les nations, Paris, Grasset,
1992.

Vol. 13, No.1 (2013) • issn 1726-6475
ly different viewpoints, have outlined a rather bleak post-cold war scenario

characterized by a chaotic and dangerous international disorder.
Another American political analyst, Samuel Huntington used the expression
clash of civilizations to describe instead the international reality increasing-
ly characterized by conflicts and contentions among different ethnic groups
and civilization in competition. This is a multifaceted world consisting of dif-
ferent realities tending to agglomerate on bases of affinity and commonly
shared values because belonging to the same civilization.
Though considering such historical reality as complex and therefore not at-
tributing it to just one cause, I believe that the best expression to describe the
present day international conflict is the one Huntington came up with.
If ever, I would simply like to add another element to this definition – con-
flict of identity. In my opinion, it is a crucial point to defining the collocation
clash of civilization. I must underline that I agree by and large with scholars
who define the word identity as poisonous4 due to its inherent tendency to
give birth to separate, impermeable and tightly-knit groups. There are also
other questions of a more theoretical nature which cannot be ignored.
In terms of practicality, we run the risk that the identity question might be
used to set new barriers and walls sparking further conflicts and contrasts.
Using it as a political myth – as French intellectual Georges Sorel put it – to
mobilise the masses (or, if you prefer, the individuals constituting a commu-
nity), identity is a weapon of extraordinary effectiveness.
However, the issue at hand does not concern identity itself (along with its im-
plicit limits), but the way in which it is carried out.
At this stage, I would like to express some general considerations stemming
from a rather interesting elaboration of this idea by the so-called Club de
Madrid5, an international forum of former presidents and prime ministers
from different democratic countries worldwide.
The abovementioned international organisation has defined a new concept of
society, namely, that of a shared society, representing numerous appealing el-
ements. This model of society heaves in sight as a hope, perhaps little, for a
different international community. Stefano Prato has defined it as a notion of
society where all individuals and constituent groups hold status as contributing
participants, free to express their differences while integrating their voices with-
in the broader population.6
This is a notion which first and foremost implies a rejection of the idea
of modernity as a process of standardisation of countries and populations
across the world on the basis of a common-value system promoted by eco-
4 emotti, F., L’ossessione identitaria, Roma-Bari, Laterza, 2010, p. xii.

R
5 See http:/www.clubmadrid.org/
6 Prato, S., Shared Society: A new approach to planetary conviventia, Development, vol. 57, 1, 2004, 1.
69
P. Acanfora: The Global South in the New International Disorder: the Idea of a Shared Society
nomic, social and cultural patterns of neoliberalism. Such definition rejects

traditional approaches to the problem of migration and integration, referring
to the English multiculturalism and the French model of assimilation alike.
In this direction, the proposal of the Club de Madrid con be considered as a
third way, a new vision, a new idea of society and modernity where all na-
tions can live together, sharing a common sense of belonging and maintain-
ing their own identities. This stance has been expressed through the ten com-
mitments for a shared society7 which reflect the problem of social cohesion;
equal opportunities for minorities and groups on the fringe of society; legali-
ty and human rights protection; the importance of education and education-
al system; respect and safeguarding of cultural, economic, social, religious di-
versity, etc.8
This is, undoubtedly, a particularly problematic challenge set against the
complex backdrop of the present era. It is a challenge concerning the interna-
tional community, implying a general revamp of its structure, role and func-
tions of international organisations, as well. On the other hand, this question
involves the so-called South of the world, its relationship with traditionally
more advanced countries and among the same nations falling in the hetero-
geneous group of “Southern Countries”. If considered from this point of view,
relations to far distant historical backgrounds such as that of the Cold War
become apparent. Considering these problems, it appears most urgent to de-
velop new strategies and a new conceptual definition.
I believe it is useful now to highlight briefly the following crucial points:
7 I . Locating responsibility to ensure the promotion of social cohesion clearly within government
structures. II. Create opportunities for minorities and marginalized groups and communities to
be consulted about their needs and their perception of the responsiveness of state and communi-
ty structures to meet those needs. III. Ensure that social cohesion is considered in devising gov-
ernance structures, policy formation and policy implementation and establish procedures and
mechanisms to ensure this is achieved and to reconcile divergent positions between sectional
interests. IV. Ensure the legal framework protects the rights of the individual and prohibits dis-
crimination based on ethnic, religious, gender or cultural difference. V. Take steps to deal with
economic disadvantages faced by sections of society who are discriminated against, and ensure
equal access to opportunities and resources. VI. Ensure that physical environments create op-
portunities for, rather than discourage social interaction. VII. Ensure an education system that
offers equal opportunity for developing the knowledge, skills, capacities and networks necessary
for children to become productive, engaged members of society and that demonstrates a com-
mitment to a shared society and educates children to understand and respect others. VIII. Ini-
tiate a process to encourage the creation of a shared vision of society at local and national level.
IX. Promote respect, understanding and appreciation of cultural, religious and ethnic diversity
and support local communities in exploring their identity, sharing their experiences with other
identity groups and working together with those groups on common concerns. X. Take steps to
reduce tensions and hostility between communities and ensure members of all communities are
protected from abuse, intimidation and violence.
8 McCartney, C., Interrogating Shared Societies Through Practice and Theory, Development, vol. 57,
1, 2014, 8-14.
1. The role of the nation state. After the Second World War two fundamental-
ly divergent and opposed tendencies appeared transforming the role of na-
tion state: on the one hand, there were supranational bodies with judicial,
political, economic and financial capacities; on the other, there was the
emergence of local actors such as small states and nations claiming and at-
taining larger autonomy, thus producing fragmentation. So, these two ten-
dencies reduced sovereignty and bearing capacities of nation states on lo-
cal groups within the individual state borders.
2. The role of national identities in triggering numerous conflicts within tra-
ditionally multiethnic communities featuring cultural and religious plural-
ism. We can mention many cases but I think that the dismemberment pro-
cess of ex-Yugoslavia suffices.
3. As a result, the need to develop a broader concept of belonging and a new
identity building process underway has been forwarded. Of course, the hy-
pothesis of “open identity” is undoubtedly a paradox but it derives from
an approach which several sociologists have defined as constructivist re-
ferring to national belonging – in other words, capable to dynamically fol-
low the unfolding of history. So, identity is intended as something in con-
stant progress, as something to be built day by day, and open to contribu-
tions from other people and communities. This seems to be a crucial point
for building of identity and supranational feelings as in the case of Europe.
I would add that this is certainly one of the most difficult problems of the
European unification process.
4. This argumentation, however, seems to have its own limitations. For in-
stance, it brings along the apparently insurmountable difficulty to define a
common system of shared values for all nations and cultures worldwide.
The very same idea of universal values is deeply rooted in the culture of
the Western countries, and because of this, it is perceived by other civilisa-
tions as simply western and therefore as a pattern to be rejected.
To sum up, the attempts to establish a broader base of consensus at a level of
common values have been fruitful so far (not without difficulties, obvious-
ly) in cases of integration on a regional basis as in case of Europe. That is,
regional areas intertwined – to use Huntington’s words – because of mutual
recognition of belonging to the same civilisation. But, if we want an interna-
tional society, or a shared society as the Club de Madrid has put it, it will take
extraordinary efforts to keep state borders constantly open, permeable and,
at the same time build structures and bodies capable of restraining and keep-
ing all conflicts within a well-structured system of rules.
As the southern part of the world has traditionally been made up of very dif-
ferent countries displaying very different cultural patterns belonging to dif-
ferent identities and distant from one another – when considering the new
shape of the South in a globalised world – the final question to discuss about
is what contribute the South of the world itself can give to this new model of
society and to what extent.
IDRISS JAZAIRY
In Defence of Special Procedures of the Human

Rights Council: an Alternative Narrative from
the South
With the end of the East-West confrontation in the late ‘eighties of last cen-
tury, human rights have become essentially, though not exclusively, a subject
for North-South interaction.
Discussions on this theme take place in the confined atmosphere of the UN
glass building of Manhattan or of the Palais des Nations in Geneva. Its actors
are the international elite of diplomats, NGO representatives mainly head-
quartered in the West and exhibiting every now and then the odd petitioner
from the field, selected by them to make their point.
Human rights are about values. Unfortunately they have to do increasingly
with politics both in the UN conference rooms and in the field where oppo-
sition groups invoke or manipulate them to help them access power.
The SPMHs were set up at the initiative of developing countries back in the
‘sixties of last century. Their purpose was and remains to link the UN ivory
towers with the reality on the ground, to protect victims of human rights vi-
olation and to promote human rights worldwide.
The developing countries took this initiative in the context of protecting the
black majority in South Africa against the apartheid regime, the Palestinians
under Israeli occupation and later to address the plight of victims of the mil-
itary coup in Chile and of the “Death Brigades” in Argentina. Western coun-
tries, which had been reluctant in earlier phases, then resorted to this mech-
anism in order to destabilize the Communist countries. After the fall of the
Berlin Wall, the focus turned increasingly on developing countries. This ex-
plains why today most of the activities of SPMHs1 target countries of the
South. These therefore have a special interest in enhancing the independence,
impartiality and accountability of the mechanism of special procedures and
in preventing their mandates from being derailed.
There are currently about 60 thematic experts of which half are working in-
dividually while the other half are part of 5-member working groups. In ad-
dition there are 14 country experts of which 8 have been appointed with-
out the consent of the concerned country. Because of their sensitivity, coun-
try mandates have a one-year duration while thematic ones last three years.
* Ambassador, Permanent Representative of Algeria to UN in Geneva

1 Special Procedures mandate-holders

Vol. 12, No.2 (2012) • issn 1726-6475
Two-thirds of the country mandates target African or OIC member coun-

tries. Western countries which are particularly keen on country mandate
have tried, unsuccessfully so far, to extend their duration to align them with
that of thematic mandates. While being “special” initially in the sense of be-
ing an exception and not a precedent, the numbers of Special Procedures
have been increasing ever since.
It is important to keep in mind this genesis of special procedures because there
is a tendency today to consider that Western countries are the creators and
guardians of human rights and of their special procedures. The implicit infer-
ence is that only initiatives emanating from these countries or from interna-
tional NGOs headquartered in Western capitals, have the legitimacy to deter-
mine how SPMHs should exercise their mandate and what amendments to the
mechanism can be legitimately discussed in the Human Rights Council.
These actors have an overbearing influence on world media. They have used
it to discredit any initiative coming from the South aimed at improving this
mechanism. They claim that any such initiative is necessarily guided by hid-
den ulterior motives whose ultimate purpose is to undermine the independ-
ence of the Special Procedures so as to whitewash human rights violations
back home.
This blanket accusation is in reality intended to silence any dissent from the
politically correct Western view of the human rights machinery. It is a form
of intimidation which undermines the freedom of opinion and expression of
many independent intellectuals from the South. I will not be deterred and
therefore propose another narrative that I would call: “In defence of special
procedures: an alternative narrative from the South”.
My remarks have the purpose of increasing the efficiency and effectiveness of
SPMHs so as to enhance their status and credibility. They will cover five key
areas: 1) the selection of mandate holders, 2) the unfinished review, rational-
ization and improvement of mandates, 3) the cooperation between States and
Special Procedures, 4) the issue of accountability of Special Procedures and
5) the North-South convergence on funding.
i. Selection of mandate-holders
Under the former Commission on Human Rights, the procedure for appoint-
ment of mandate-holders was particularly obscure. They would be selected
by the Chair of the Commission after consulting the Bureau but without hav-
ing to get the approval of its members . The selected names were then pre-
sented as a panel to be endorsed by the Council. As the Chair rotated an-
nually between different regional groups, the beneficiaries of this opaque-
ness claimed that it gave each region the chance to put forward its preferred
candidates. The developing countries realized however that this opaque sys-
tem favoured backroom dealings in which influential representatives of rich
countries had the last word.
73
I. Jazairy: In Defence of Special Procedures of the Human Rights Council: an Alternative Narrative from the South
During the discussion on the elaboration of the Institutional Building Text2

of the Human Rights Council they therefore insisted on the introduction of
more transparency in the procedure.
Developing countries would have preferred a straight election of mandate-
holders by the Council, following the example of the Treaty Bodies which ap-
point mandate-holders democratically. However that option was opposed by
Western countries. The compromise reached was to let the President of the
Council continue to present his list of candidates but to be chosen from the
names put forward by a Consultative Group composed of diplomats from the
5 regions recognized by the Council. The Group in turn would make its se-
lection based on a broad list of candidates drawn up by the Office of the High
Commissioner for Human Rghts. The President would then submit his panel
for endorsement by the Council.
It was not clear if the Consultative Group would present one or more candi-
dates for each vacancy or in the case where it did, whether the President was
duty-bound to observe the priorities set by the Consultative Group in mak-
ing his/her panel proposal to the Council. Incidents followed in the interpre-
tation of this language. This led the developing countries to insist during the
review process of 2010–2011 in the HRC3 for the President to have to justi-
fy the reasons for not following the priorities of the Consultative Group if he
considers it imperative not to do so.
While there is broad agreement in the Council on the importance of protect-
ing the independence of mandate-holders, views differ on its implications. In
the North, there is support for the untrammelled exercise of their mandates
by these officials whose only limits would be those dictated by their con-
science. In the South where most of the action of Special Procedures takes
place, it is believed that these officials should pursue their action within the
bounds of their mandate, that of the mandate of the Human Rights Coun-
cil and of the UN Charter. It is also emphasized that mandate-holders should
observe national laws in countries during official visits.
The implications of the notion of independence of Special Procedures need
to be clarified though it is not obvious that all groups in the Council have the
same interest in clarity in this respect. It remains that for developing coun-
tries independence should not be equated with unaccountability.
ii. The unfinished review, rationalization and

improvement of mandates
The Institutional Building Text of the Council mandates the latter “where
necessary (to) improve and rationalize all mandates (…)in order to maintain
a system of special procedures”.
2 N General Assembly resolution 60/251

U
3 Human Rights Council
Western countries have been reluctant to proceed lest this open the Pando-
ra box and give an opportunity for developing countries to call into question
some thematic mandates on civil and political rights and some politically hot
country mandates.
There is now a haphazard superimposition of special procedures each cost-
ing over half a million dollars a year and which at the present rate might ex-
ceed a hundred mandates and therefore many more mandate-holders in 15
years’ time. This cannot be reconciled with the complaints reiterated by the
High Commissioner that the activities of his Office are not properly funded.
Nor can it be in coherence with the Institutional Building Text which calls
on the Council to “maintain a system” and not an open-ended accumulation
of special procedures.
Duplications and overlaps are perforce abundant in the current heap of Spe-
cial Procedures. Thus CEDAW has defined violence against women as a form
of discrimination. Yet there are two different mandates dealing with vio-
lence against women on the one hand and discrimination against women on
the other hand! Likewise there are two special mandates dealing respective-
ly with trafficking of women and children and with contemporary forms of
slavery including the sale of children etc…Other examples abound.
It is high time the HRC set up a working group to:
–– draw up a list of criteria to scan initiatives for the creation of new special
procedures
–– review the detailed mandates of each special procedure to eliminate dupli-
cation or consolidate them with others as appropriate
–– to establish rules to determine whether mandates should be addressed by
a working group or by a mandate-holder
–– to determine how best to deal with protection gaps
–– to make the distinction between titles of mandate-holders meaningful,
specially for thematic mandates.
iii. Cooperation between States and Special Procedures

There is a continuing problem with the unsatisfactory rate of response of of
developing States to requests of Special Procedures for visits and to letters of
allegations of human rights violations on which mandate-holders ask gov-
ernments for explanations. Western countries suggest that pressure should be
exercised on States to get them to be more responsive. It was even suggested
that delinquent states should be barred from applying for HRC membership.
Relations between Special Procedures and such States then become tense.
Contrary to mandate-holders of Treaty Bodies, the HRC Special Procedures
are entitled to call States to account on issues involving standards of legal in-
struments to which they have not adhered. States can also be requested to
75
take a position on allegations which are sub judiciae or to commit to legisla-

tion which is not within the competence of the Executive. Finally the west-
phalian concept of sovereignty is particularly strong in developing countries
whose independence may not have been acquired painlessly. They may resent
what some construe as interference in their internal affairs.
The task of a mandate-holder is therefore a delicate exercise and it is im-
portant that channels of communication be not interrupted with develop-
ing States except for the most extreme cases. The latter should not determine
the standards to be applied by SPMHs to the majority of delinquent States.
The 2011 GA resolution on the 2010-2011 Review of the work and function-
ing of the HRC emphasized that ”The special procedures mandate-holders
SHALL continue to foster a constructive dialogue with States”. This means
doing more than just sending registered letters, reminders or requests for
additional information as the Manual of Operations of Special Procedures
Mandate-Holders, the manual of self-regulation of the Coordinating Com-
mittee of Special Procedures, defines this “constructive dialogue”.
The HRC should commission an independent enquiry on the reasons for
delinquency given by states and ask the CCSP to comment thereon. The
Council could then try to offer viable solutions, including through identify-
ing sources for financing capacity- building for resource deficient developing
countries in need.
iv. Accountability of Special Procedures

Northern sources have challenged the claim of developing countries that
Special Procedures are accountable to the Human Rights Council for the dis-
charge of their mandate, as an attack on their independence.
Yet in contemporary society there is no such thing as responsibility without
accountability. This is why the African Group in the HRC insisted on includ-
ing a Code of Conduct for Special Procedures Mandate-Holders in the IB text
in 2006 and on voting for the adoption of the Code in which it was unam-
biguously asserted that ”In the fulfilment of their mandates, mandate-hold-
ers are accountable to the HRC”. Contrary to the assertions of major western
NGOs, far from being “hobbled” by the adoption of this code, the mandate-
holders were thereby given increased recognition by States and their credi-
bility was enhanced. In the review process of the IB text in 2011, not a single
criticism was made of the way the code had been used contrary to western
forebodings to the effect that there would be widespread misuse of the Code.
In the same spirit, the developing countries presented during the review pro-
cess in 2011 a proposal for independent legal expertise. This body would pro-
vide its legal opinion on an advisory basis. This opinion would be offered on
disagreements on procedure between Special Procedures and States. The le-
gal opinion would be given to the parties to the dispute, and if need be, to
the Council. The developed countries refused to even discuss this proposal.
Thus an opportunity was lost to rid the Council of discussions on procedur-
al issues at the expense of action on issues of protection of victims of human
rights violations.
Because of this situation, Issues that arise in real life on procedure and that
could set important precedents for the future remain without solution. Here
are a few examples:
–– Can special procedures decide, off their own accord, to substitute at a giv-
en session a study on a subject they deem important instead of a report
that the HRC mandated them to present at the same session?
–– Can a special procedure oppose publicly, without having been asked for
his opinion, a draft resolution initiated by member-States in the Council?
–– The Code indicates that “the Council should be the first recipient of con-
clusions and recommendations addressed to this body” by special proce-
dures. Does this also cover fact-finding missions appointed by the Council
and which tend to report on hot subjects first to the UNGA in New York?
–– Should not special procedures report directly to the Council on conclu-
sions and recommendations of studies they carry out at their own initia-
tive or at the request of other UN bodies and that they have submitted to
the latter?
It is hoped that there will be a resumption of discussions on the proposal for
setting up an independent advisory body of jurists some time in the future.
Pending that, it might be helpful for representatives of the 5 regions that are
members of the Council to meet informally, at regular intervals, with the Co-
ordinating Committee of Special Procedures to exchange views on such pro-
cedural issues. They could for instance review the possibility of making the
Manual of Operations of Special Procedures more fully reflective of the letter
and spirit of the Code of Conduct with respect to relations between Special
Procedures and States. They could also find out whether some understanding
could be reached on procedural issues of general interest such as those allud-
ed to above. It is essentially a matter of good will. This would be a concrete
expression of the “constructive dialogue” that the 2011 UN, a taskGA resolu-
tion on the Review of the work and functions of the HRC called on the Spe-
cial Procedures to “foster…with States”.
v. The North-South convergence on funding

Countries from the North and from the South all agree on the necessity to
give SPMHs adequate resources to pursue their noble task, a task which is es-
sential for establishing a link between world fora where human rights are dis-
cussed and the field where things really happen. Both partners advocate an
increase in the resources to be made available to them.
77
The North advocates specially an increase in resources, whether from the

regular budget or from voluntary contributions, to be allocated to Special
Rapporteurs in charge of country mandates .
The South would prefer a gradual substitution of voluntary contributions by
budgetary resources and more focus on the importance of providing resourc-
es for a fund that could finance capacity-building in the context of country
mandates as well as for thematic mandates.
In the Manual of Operations of Special Procedures of the Council, para.11,
the mandate-holders authorize themselves to raise resources, financial or
otherwise, from unidentified outside sources without having to report there-
on to the Council. This is a real threat to their independence contrary to
what the Manual says. Mandate-holders should immediately be instructed by
the Council to report to it every year on the resources received in cash or in
kind from outside sources to be identified, pending the suppression of this
para. from the Manual. The OHCHR should thereafter take over fully this
fund-raising mission and report on it to the Council.
Finally, because of resource shortages, some Special Procedures have been
fanned out to divisions of the Office other than the Special Procedures
Branch. The availability of resources in those divisions might not adjust with
the priorities of the task of mandate-holders.
It is therefore suggested that all special procedures be regrouped in the Spe-
cial Procedures Branch pending the establishment of a separate unit for spe-
cial procedures with their own separate resources under the administrative
control of the OHCHR.
ISMAIL SERAGELDIN
The Global South: the next Half Centur
The Past: In the Shadow of the West

The Bretton Woods Conference that established the post-World-War II eco-
nomic order is 70 years old this year. The Global South is just reaching its
half-century mark. The reason for the rise of the latter is the failure of the
former.
The global economic system for the post-world-war-II world was designed
by the big powers at a conference held in 1944 in the New Hampshire resort
of Bretton Woods. That conference, held one year before the 1945 San Fran-
cisco conference that created the UN, was devoted to the post-war economic
regime that would govern international economic, financial and trade rela-
tions. The result was the creation of the International Monetary Fund (IMF),
the World Bank and the International Trade Organization (ITO). That sys-
tem was designed by the victorious allies of the global conflict, the domi-
nant colonial powers of that era. It served their interests and was governed
by them. The Soviet Union opting for the confrontational posture of the Cold
War refused to join the system, until the Union’s demise in 1991.
The ITO was not approved by the US senate and so it was first born as a pro-
visional treaty named the General Agreement on Tariffs and Trade (GATT)
to be finally renamed the WTO only in January 1995, but still doing very
much the same function as globalization came to dominate the economic
agenda of the end of the 20th century.
Although most people in the world, and specifically the people of the Global
South, recognize that the UN with its slanted membership powers in the Se-
curity Council needs to be reformed, it was primarily in the Bretton Woods
System that the feeling of marginalization by the non-western powers was
most acute.
The Global South, a term that emerged in the sixties was the inheritor of the
“Third World” and was globally manifested politically in two groupings both
of which were formed some fifty years ago: The Group of 77 which celebrates
its 50 years in 2014, and the Non-Aligned Movement which celebrated its 50
years in 2011.
In 1974, the countries of the Global South tried to push through the Gen-
eral Assembly of the United Nations a “New International Economic Order”
Vol. 13, No.1 (2013) • issn 1726-6475
79
I. Serageldin: The Global South: the next Half Centur
(NIEO), which was composed of a set of proposals to promote their inter-

ests by improving their terms of trade, increasing development assistance,
developed-country tariff reductions, and other means. It was meant to be a
revision of the international economic system in favor of the poor countries.
“The Declaration for the Establishment of a New International Economic Or-
der”, was adopted by the United Nations General Assembly in 1974, and re-
ferred to a wide range of trade, financial, commodity, and debt-related issues
(1 May 1974, A/RES/S-6/3201). Along with the declaration, a “Programme of
Action” and a “Charter of Economic Rights and Duties of States” were also
adopted (12 December 1974, A/RES/29/3281). This was the most complete
effort of the countries of the Global South to overhaul the Bretton Woods
System. It failed to have any impact. Beyond the flaws in the document (such
as advocacy of central planning, then much in vogue), Western opposition
completely killed it. The US and its allies were too powerful.
On the whole then, while decolonization was successfully completed in the
post war period and through the sixties, and despite the many demands of
the developing countries, the post war world economic order remained large-
ly unchanged.
Looking at the second half of the 20th century, one sees that the political mo-
mentum of the victorious allies as the founding democracies in the world,
fighting authoritarianism, plus their enormous wealth and the success of the
welfare state in raising the standard of living of their citizens all made the post-
war order seem acceptable to many, if not most, of the world. The G-7 group of
western powers, victorious in the cold-war with the collapse of the Soviet Un-
ion in 1991, and then the expansion of democracy and the entry of the former
socialist states of Eastern Europe into the European Union and NATO seemed
to seal the success of the west and ensure that the coming 21st century would
see more of the same. But things have not worked out that way.
Breaking the Chains: From NICs to BRICS

The Global South, representing almost 80% of humanity would rise again in
the beginning of the 21st century. First we witnessed the emergence of the
Newly Industrialized Countries (the NICs) in the 1980s, as Korea, Taiwan,
Hong Kong and Singapore were aptly recognized as the Asian Tigers. Korea,
one of the poorest countries in the 1950s was now exporting automobiles
and electronics to the USA. Soon Samsung would overtake Sony of Japan and
Korea would rank third after the USA and Japan in the number of patents,
ahead of the UK, France and even Germany. Mexico, Korea and Chile as well
as the Eastern Europeans joined the Organization for Economic Cooperation
and Development (OECD), the club of the rich countries established in 1960.
By the beginning of the 21st century these success stories were overtaken by
the biggest success story of all: China’s unstoppable rise to dominate much
of manufacturing and to become the second largest economy in the world.
China became the holder of the world’s largest reserves, and Asia general-
ly withstood the debt and credit crisis of 2007-2008 which struck western
banks. The enormous meltdown resulted in a major burden on the western
powers. Their economies reeling, their citizens rebellious and dissatisfied, the
western powers seemed off-balance and unable to cope, much less to lead.
Politically and militarily the US seemed to have alienated everybody with its
wars in Iraq and Afghanistan. Against that background, the surging China
seemed to offer another model that suddenly appeared to many to be a pos-
sible alternative to the liberal economics and democratic politics of the West.
Already from the beginning of the century, the G-7 enlarged its consultations
creating the G-20. But countering the G-7 there emerged the BRICS: Brazil,
Russia, India, China and South Africa, all being distinguished by their large,
fastgrowing economies and significant influence on regional and global af-
fairs, and they are all G-20 members. These countries have started to build
their own institutions in parallel to the Bretton Woods institutions.
Noting that the international institutions (the World Bank and the IMF) did
not provide enough voting power to the developing countries and over rep-
resented the West, the leaders of the five BRICS countries met in Brazil in
July 2014 and created a new $100bn development bank and emergency re-
serve fund.
The leaders announced that the bank will start with $50 Billion Capitaliza-
tion and have its headquarters in Shanghai. The first president for the bank
will come from India.
The emergency reserve fund - which was referred to as a “Contingency Re-
serve Arrangement” - will also have $100bn, and will help developing nations
avoid “short-term liquidity pressures”, a clear indication of a parallel role to
the IMF. However, it was announced that it would “complement” existing in-
ternational arrangements”.
So as the Global South reaches the half century mark, we can see that some of
the mass of the poor countries of the world have clearly pulled ahead, defining
themselves on the global stage, and challenging the Western powers’ long-stand-
ing hegemony. So what is left of the original solidarity that pulled together 80%
of the world’s population in a group to challenge the economic world order and
the institutions that perpetuated the special status of the western countries?
The Challenges of the New Century

The configuration of success stories and emerging muscle shows that there
shall be no repeat to the G-7 defeat of the New International Economic Or-
der proposal of the last century. It also shows that business as usual for the
western powers is over. The palliative of the G-20, while definitely a step in
the right direction, is going to be insufficient to respond to the rising aspira-
tions of the poor developing countries.
81
Twenty five years ago, the South Commission, headed by Julius Nyerere, sub-
mitted its report. In that report the Commission considered that the funda-
mental international cleavage was primarily between the rich and the poor,
and defined the basis for grouping the countries of the Global South together
as the result of their resolve to pursue united action in the struggle for a fair-
er international economic system. Today the economic system is changing.
And the BRICS can see value in special partnerships with the poorer devel-
oping countries of the world, especially in closer ties with Sub-Saharan Afri-
ca where an enormous potential remains unexploited.
But does that lay the foundation for the next half century of solidarity? I
think not. That is enough for formulating a series of trade deals and possi-
bly for a number of joint ventures, but unless there is a conscious policy that
regroups the Global South around a system whereby the poorest and least
developed countries will be assisted by the more advanced countries of the
Global South, to attain a sustainable development path, that solidarity will
remain mostly confined to political rhetoric.
In other words, the solidarity that characterized the countries of the Global
South in the last half century was based on being against the postwar order
crafted by the western powers. In the next half century it will have to be based
on being for something more than what has been achieved. It is infinitely hard-
er to forge a coalition around a positive goal than around a negative goal. Thus
in many colonies, a national consensus could be easily forged against the colo-
nizer for the limited goal of independence. The colonized, from extreme leftists
to right wing nationalists, despite the various ethnic and religious identities of
the nationals, could all agree on the goal of independence. However, when the
independent state had to face the choice of what sort of an independent coun-
try they wanted to build, these differences emerged.
So the Global South countries have to forge alliances based on their remain-
ing commonalities of interests and their likely new avenues for cooperation.
In the tasks of nation building, south-south collaboration will now loom
large. This will be essential if we are to transcend the narrow confines of in-
dividual nations and pursue a purpose that will seem worthwhile to many.
Europe showed the way, when visionary Europeans such as Jean Monnet
and Robert Schuman, crafted the European Union, a community of nations,
among erstwhile foes and longtime adversaries. The Global South must have
such a supra-national perspective, a new “raison d’être” for the countries con-
cerned as they enter their second half century.
More Than an Echo of the G-20

The Global South must offer more than pure economic issues. The G-20,
where the leaders of the Global South already sit, is the pre-eminent eco-
nomic forum of the planet. The leaders of these countries have been meet-
ing regularly since 2008. The G-20 economies represent around 85% of the
Gross World Product (GWP); 80% of world trade. In terms of population,
because of the membership of the global south countries, the G-20 accounts
for about two-thirds of the world population. So what is the need for an or-
ganization of the Global South unless it offers something more than the same
G-20 menu?
The countries of the Global South must be willing to become the champi-
ons of a profound revision of the legacy of the 20th century economic para-
digm, not just the institutions that governed it on the global scale. They must
actively promote the development and adoption of an alternative economic
paradigm.
The capitalist system, the most creative and productive system devised by
humanity, is still in need of a profound humanist critique. There are many
people, this author included, who believe that the presence of hunger amidst
plenty, and other social problems are NOT a necessary price to pay for the
robustness of the economy. Many of us believe that the ruthless allocative ef-
ficiency of the market must be tempered by a caring and nurturing society.
Today, many distinguished economists have argued against the current par-
adigm that deifies GDP growth and pays only lip service to everything else
from equity to welfare, from quality of life to environment. Many are still re-
peating the mantras of the extremists of the Reagan-Thatcher ideology that
argued that the private sector would do everything and governs best that
governs least.
We must recognize that the private sector will not take care of public goods,
and that the public must remain engaged to deal with market failures and
public goods.
We must change the calculus of our economics and finance, to internalize the
full social and environmental cost of our decisions. Some headway is being
made on this at the local level, but we have certainly not even begun to in-
troduce the global costs of local actions at the level of national policy. Carbon
emissions continue unabated and are factored as zero costs in investment de-
cisions. We must rectify our national accounts that count a forest standing as
zero and give it a positive value only if it is chopped down.
We should measure the growth in our capital stock not just the growth in
the volume of our activities. We should be concerned with nurturing natural
capital and building human and social capital as much as we are about eco-
nomic growth.
All of that is possible. It will not diminish the vibrancy of the entrepreneuri-
al spirit, but it will help make new investments environmentally friendly and
socially responsible.
83
But still the raison d’être of the Global South in the next half century must
be founded on broader values and be woven in a larger vision than reform-
ing the economic paradigm.
A Vision for the Global South

The Global South must harness the emerging universal values of our com-
mon humanity, and create a coalition of the caring. It must mean something
to be a member of the Global South, something more than that you are poor
and are against an international economic order that serves the interests of
the rich. I believe that the Global South must stand for certain values that
should be central to all its members of which the following basic thrusts ap-
pear paramount.
First: Ensure real participation in global decision making

Problems today confront government beyond their borders. All governments
need to collaborate in an effective international machinery of decision-mak-
ing to take action against environmental problems, the chaotic structure of
our markets and the multiple levels and overlapping jurisdictions that gov-
ern human action in the world of the 21st century. The leaders of the Glob-
al South should help set that agenda inclusively, to avoid others suffering the
same marginalization that they suffered from in the last century. They would
be the forum that brings in rich and poor countries, large and small econo-
mies, to fight poverty and promote sustainable development. Those with du-
al membership in the Global South and the G-20 can be the voice of those
who are absent at the G-20 which still seems wedded to the economic ortho-
doxy of the past.
Second: Credible macro-management of the economy

The preeminent role of government in setting and maintaining the proper
macro-economic fundamentals is essential for any effective growth, as well
for a well-functioning competitive economy. The costs of severe austerity
measures in a period of limited or zero growth is felt primarily by the poor
and destitute. Sound government policies are essential to ensure social equi-
ty and welfare, limit market distortions and prevent monopolies. This broad
view of the role of government in society encompasses economics but also
transcends it.
Third: Advancement of sustainable development

Environment is not just an issue for the rich. It is about every child in eve-
ry country having a right to clean air, clean water and fertile soils. It is about
ensuring that all children should be secure from natural calamities and have
food security throughout their lives. It is about educating girls and empow-
ering women, and ensuring equity in the treatment of all citizens. It is about
being conscious of our responsibility to our children and grandchildren. The
global South, having the vast majority of the population of the planet has a
direct interest in promoting mitigation and adaptive measures that will en-
sure sustainable development and a secure future for their citizens. The Glob-
al South should take the lead in ensuring that such measures are not flouted
by the western powers who have been the prime culprits in the past for the
imbalances being introduced in our climate and our global ecological sys-
tems.
Fourth: Advancement of good governance

The Global South needs to endorse systematic approaches to the promotion
of good governance, under their own guidance, not under western tutelage.
Here we are not talking of parliamentary or presidential systems or wheth-
er parliament should be bicameral or a single chamber, we are addressing
the promotion of principles like transparency, accountability, free expression,
free flow of information, participation and the rule of law. In fact, I would ar-
gue that western style electoral politics will not be the best answer for many
countries where ethnic identities are strong and religious tensions are rife.
Possibilities of experimenting with hybrid systems that involve forms of se-
lection other than conventional elections such as sortition and representative
sampling should be tried.
Fifth: Facilitate the flow of knowledge and information

The future will require more access to open communications and informa-
tion at a speed that will defy our current thinking and that will exceed most
of what we can imagine today. It is not just about availability of information
it is also about access to that information. It is also about new forms of free
speech and Intellectual Property Rights (IPR) in the merging digital age.
Sixth: The Promotion of Science and the values of Science

The systematic collaboration of the countries of the Global South for the
promotion of capacity building for science, technology and innovation (STI)
would be mutually reinforcing to the free flow of information. Science for so-
ciety is not just to produce consumable technology; it is also about commit-
ment to evidentiary-based regulation, and arbitration of disputes by scientif-
ic methods whenever possible.
Seventh: Promoting investment in human and social capital

Education and health and nutrition of persons are a primary competitive as-
set as well as being the best investment that societies can make; for it is essen-
85
tial for both equity and economy. But equally important is to strive to build
up the shared values, the legitimacy of the institutions of mediation in a soci-
ety, for that is the essential glue that holds societies together and allows them
to function. That is their social capital.
Eighth: Nurture flexible institutions

The one common denominator of the global knowledge driven economy of
the new millennium is the pace of change itself. The successful, competitive
economies of the future, those that will be creating the jobs and the prosperi-
ty for their people will be those that ensure the flexibility of their institutions.
Envoi: Towards a New Global Paradigm

We need a new global paradigm, and the leaders of the Global South should
make it their goal to construct it. They should not look only to their current
national economic interests, but also to the interests of all humanity. That is
how they will really construct a system that is fundamentally different from
the one that prevailed in the last century and that they assembled to fight for
its transformation.
The eight points described in the preceding section can and should be refor-
mulated as a set of principles for the Global South in its next half century. I
think that such a declaration of principles and objectives has the capacity to
harness the potential of the rapidly evolving and diversifying South-South
cooperation. It has the capacity to inspire national and international visions
and give meaning to actions by the countries of the Global south from the
largest to the smallest. It has the ability to forge effective bonds between these
disparate countries that are very different from what has prevailed in tradi-
tional North-South economic dealings.
I believe that these are some of the elements that can rally the developing
countries that belong to the Global South into a meaningful unity of action
despite their great diversity. That action needs such a platform of basic prin-
ciples and objectives, which perhaps could even be formulated as a “Charter
of the Global South” that can have a lasting value and contribute to the strug-
gle to build a better world for the entire human family, as we promote a cul-
ture of peace, justice and sustainable development for all.
BRANISLAV GOŠOVIĆ
South-South Cooperation:
An Opportunity for the South to Change
the World Economic and Political Order
The setting
For five decades, South-South cooperation (SSC) has been an orphan of the
international development agenda, in the shadow of North-South coopera-
tion.
This has not been due to a lack of knowing what needs to be done, wanting
and trying. Indeed, in terms of conceptualization, declarations, blueprints,
plans of action, initiatives and political enthusiasm for South-South coop-
eration, the record has been more than satisfactory. Many of these, howev-
er, have remained in the domain of declaration because they could not be or
failed to be translated into action and tangible advances. The reasons for this
have been many and complex. In the paragraphs that follow, an attempt is
made to highlight the major reasons, as an important background that needs
to be taken into account in the consideration of how South-South coopera-
tion is to be transformed into a major factor and driving force of the evolv-
ing world order.
Important junctures
In addition to in essence being an important dimension of the developing
countries’ quest to develop and diversify their economies, South-South co-
operation is a political project of emancipation, liberation, political and eco-
nomic independence, of transcending the unidirectional links with the North
and vestiges of the colonial era, and one of gaining influence and voice in
world affairs by pooling forces and acting collectively.
It was the UN Economic Commission for Latin America (ECLA), led by
Raùl Prebisch, which laid the first foundation stone of South-South cooper-
ation through its work and promotion of regional economic integration, in-
spired by the early integration efforts in the European Coal and Steel Com-
munity (ECSC). This initial conceptualization based on Latin American ex-
perience was transposed to the global level at the 1964 UN Conference on
Trade and Development (UNCTAD) whose Final Act highlighted regional
cooperation and integration goals. Indeed, the Secretariat of the newly estab-
* ECPD Expert, Geneva, Switzerland

Vol. 13, No.1 (2013) • issn 1726-6475
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B. Gošović: South-South Cooperation: An Opportunity for the South to Change the World Economic and Political Order
lished UNCTAD, headed by Prebisch, had a very active Unit on regional in-
tegration, which helped give rise to several sub-regional undertakings in dif-
ferent parts of the South.
In practice, however, many of these undertakings encountered difficulties
and obstacles. The East African Community, for example, had to be dissolved
because of tensions that arose among its members due to problems of rec-
onciling their national interests, policy outlooks and orientations vis-à-vis
the competing global powers, and also given the nature of their own nation-
al economies. Nonetheless, SSC had political winds blowing in its sails, espe-
cially during the decade of the New International Economic Order (NIEO),
when a number of initiatives were launched, including the OPEC oil-prices
decisions, and two important conferences were held, the UN Conference on
Technical Cooperation among Developing Countries (TCDC), held in Bue-
nos Aires in 1978, and the G77 High Level Conference on Economic Co-
operation among Developing Countries (ECDC), held with the support of
UNCTAD in Caracas in 1981, which adopted a wide ranging Programme of
Action.
The last political and substantive “hurrah” of this period, so to say, was the
chapter on South-South cooperation in the South Commission Report “The
Challenge to the South”, launched in 1990. This Chapter remains an author-
itative and comprehensive analysis and detailed plan of action for South-
South cooperation.
Regrettably, in addition to the objective difficulties that many plans, pro-
grammes and actions came upon against in practice, for example in the case
of the General System of Trade Preferences (GSTP), South-South coopera-
tion was also negatively affected by the changing fortunes of the United Na-
tions, UNCTAD in particular.
It was also affected by the unilateral discontinuance of the international de-
velopment dialogue by the North following the shift in its attitude and strat-
egy, formally announced at the 1981 Cancun North-South Summit. This
change was a consequence of the conservative forces prevailing in the two
key powers, bent on neutralizing the challenge from the South and deter-
mined to control and shape the international development agenda on their
own terms. The weakening of the developmental role of the state, the mar-
ginalization of the public sector and enterprises, the discrediting of econom-
ic planning and the ascendance of pragmatism and opportunism in policies
and actions of individual developing countries did away with some of the im-
portant elements needed to launch and sustain South-South cooperation ef-
forts.
Part and parcel of the North’s new, across-the-board, “Cold War” approach
vis-à-vis the developing countries and their objectives covered also South-
South cooperation. Symbolically, the rather small and underpowered UNC-
TAD Unit on ECDC, established in 1985 to energize the follow-up of the
1981 Caracas High Level Conference on ECDC, was abolished as part of the
“restructuring” approved at UNCTAD VIII, in Cartagena in 1992. An anec-
dotal example of the anti-SSC drive during this period of the high tide of the
neo-liberal globalization involved a country of Central America. It was re-
quested by the Bretton Woods institutions, as a conditionality of a debt re-
structuring package it was negotiating, to work on weakening the Central
American Common Market (CACM), an early South-South integration ef-
fort launched in 1960.
In general, the North’s multilateral interlocutor of the Group of 77, Group B,
while paying lip service in public to South-South cooperation and integra-
tion efforts, did not show the willingness to help, let alone promote such ac-
tivities and was openly hostile towards and worked to undermine the devel-
oping countries’ group action at the global level.
The World Bank and regional development banks did not show readiness
to support projects of South-South cooperation that involved two or more
developing countries. South-South cooperation, as a term and concept, was
considered politically provocative and frowned upon by the developed coun-
tries in the United Nations. This attitude, which was always present below
the surface and well-camouflaged, came into the open during the neo-liber-
al globalization era. Joint actions by the developing countries were character-
ized as their “ganging up on us”, seen as a systemic threat, and considered as
something that had to be resisted, undermined and fought against. The re-
peated G77 demands for a UN conference on South-South cooperation were
blocked by the North year after year on the spurious grounds that too many
UN conferences were being held. Significantly, following the Uruguay Round
and the weakening of GATT Part IV, the World Trade Organization (WTO)
emerged as an additional obstacle to the integration efforts in the South, in-
ter alia, on account of their potential “trade diversion” effects.
However, this unfavourable setting has started to change in the more recent
period and South-South cooperation is gradually emerging from the shad-
ows of being a long-neglected sibling in international development coopera-
tion. An important trigger and catalyst was China’s rise and its growing pres-
ence and engagement in the continents of the South, in particular Africa.
Alarm bells started to ring in the key North capitals: something was happen-
ing that was outside their control and contrary to their wishes. China was
“intruding” in their traditional domain, a trend that had to be resisted, coun-
tered, and discredited, including via the media and academic writings.
As a sidelight, in this context, it may be worth recalling that in the late 1960s,
Tanzania proposed to construct a railroad linking it and land-locked Zam-
bia, which would have provided unimpeded access to the sea to the latter
and its copper ore exports. Tanzania approached the West for development
assistance. It was flatly turned down, upon which it went to China, which
agreed to help, gave a long-term interest-free loan and built the TanZam or
89
Tazara (Tanzania Zambia Railway Authority) railroad as a turnkey project,

completed in 1975. The West replicated by building a highway linking Tanza-
nia and Zambia. This was an important, early lesson of hegemonic, neo-co-
lonial power politics by the North and of the potential of South-South coop-
eration to loosen and transcend the stranglehold of the colonial-era economy
and political geography.
This episode was largely forgotten or overlooked. Many continued to believe
in the developed countries’ largesse and good intentions, and to follow and
rely solely on the traditional path of North-South development cooperation.
The growing presence of China in Africa, now more business-like than in the
1960s and 1970s and based on the mutual-benefit principle embodied in the
Forum on China-Africa Cooperation (FOCAC), has inspired a more forth-
coming continental and global response to South-South cooperation by the
North, similar in motivation to the one the North displayed in the instance
of Tazara.
In addition to China’s mounting presence in Africa, another important wor-
risome policy signal for the North has come from Latin America with the
rise of progressive governments, brought to power by a wave of popular dis-
content triggered by the impacts of the neo-liberal globalization and decades
of the neo-colonial hegemonic domination of the continent and its individu-
al countries by the mighty neighbour in the north.
Venezuela and its late President Hugo Chávez have played a leading and cat-
alytic role, in tandem with Cuba, in proposing, financing and implement-
ing South-South initiatives, some taken from the South Commission Report,
which Chávez had read and studied. Unlike the various undertakings in Af-
rica that were mostly bilateral and business oriented, the regional efforts in
Latin America also had a pronounced political and emancipation edge, and
structural implications. Such efforts included the Bolivarian Alliance for the
Americas (ALBA), the hemispheric Community of Latin American and Car-
ibbean States (CELAC), and, indeed, the G77+China Summit, held to mark
the 50th anniversary of the Group of 77 and hosted by Bolivia, and the Sum-
mit’s final declaration.
South-South cooperation taking off at last

It can be argued that one of the factors or processes that have contributed
to vitalizing South-South cooperation has been “globalization”, by helping to
gradually overcome some traditional barriers and creating opportunities by
opening up the developing countries’ economies to exchange and interaction,
including “horizontally” within the South. Globalization has also contribut-
ed to the economic growth of China, as well as Brazil and India, which have
become more interested in SSC and acquired capacities for greater and sus-
tained economic cooperation with other developing countries.
The ascendance of South-South cooperation – especially of China’s multiply-

ing ties with developing countries, including as an importer of their prod-
ucts, exporter of goods, investor in infrastructure projects, lender of financial
resources, and purveyor of technology, generally on favourable terms and
free of the traditional Northern intrusiveness, paternalism and conditionali-
ties of all kinds – is in fact beginning, although still on a limited scale, to re-
spond to some of the expectations and hopes the developing countries have
had from North-South development cooperation.
South-South cooperation is contributing to African countries beginning to
loosen their traditional dependence on the former metropoles and, in gen-
eral, the countries of the North, to diversify their national economic devel-
opment, and build national and regional infrastructures, including transcon-
tinental road and railway networks. It has also helped to outflank the de-
veloped countries’ negative posture towards the international development
agenda and made them more tolerant and even supportive of South-South
links, driven by the very necessity of remaining in the game, including
through “triangular” cooperation.
Indicative of the change and the SSC gaining “legitimacy” and becoming
“the flavour of the month” have been the establishment of the Unit for Eco-
nomic Integration and Cooperation among Developing Countries (EICDC)
in UNCTAD; the renaming and upgrading of the UNDP’s TCDC Unit in-
to the UN Special Unit for South-South Cooperation and higher funding at
its disposal; the UN General Assembly decision to hold the UN High Level
Conference on South-South Cooperation, and, indeed, the willingness of the
World Bank to contribute to some of the UNDP South-South events.
Thus, given the changing outlook for South-South cooperation, the question
that presents itself is: What can be done to overcome the encountered obsta-
cles and biases, to make SSC – which is emerging as an important dimension
of world economy – more dynamic and beneficial to all concerned, and, in
particular, to contribute to the developing countries’ long standing goal of at-
taining fuller economic and political independence, securing a presence and
influential role in the global policy space and decision-making, and changing
the entrenched world order?
How to further energize the promise of

South-South cooperation?
Past experiences provide useful lessons about what can be done to further
energize and channel the ongoing process. In addition to the fundamental
and objective condition, that of greater economic strength and diversification
of the economies of individual developing countries and their groupings, a
few other familiar factors – the “nuts and bolts” of South-South cooperation
– that can work in synergy are highlighted below.
91
The importance of the South’s own conceptual framework cum platform for
South-South cooperation. It is necessary to brush up and refresh the policy,
conceptual framework, basic principles and rationale of South-South coop-
eration in the light of the contemporary conditions and the evolving context.
No such up-to-date framework exists. The last effort made to that end, since
the 1981 G77 Caracas Conference on ECDC, is to be found in the above
mentioned chapter “The South on the Threshold of the Twenty-First Cen-
tury” of the South Commission Report, which is now quarter of a centu-
ry old. The was not properly examined and responded to by either G77 or
the Non-Aligned Movement (NAM), nor have they adopted a platform on
South-South cooperation so far.
When undertaken, this task will require thorough work and preparations, be-
fore a framework is finally adopted and “consecrated”. Indeed, such a frame-
work should become a long-term platform for the South’s collective rise on
the world scene, its development, the mustering of its resources and strengths
through collective self-reliance, and for changing the current North-domi-
nated world order and evolving an alternative one. In this, important lessons
and guidance can be gleaned from the experiences in South-South coopera-
tion over the last five decades, from integration and cooperation schemes in
the North, from the developed countries’ stance vis-à-vis SSC, and from FO-
CAC and ALBA, as two recent instances of South-South policy frameworks
for development cooperation.
Catalysts and locomotives. In its deliberations on South-South cooperation,
the South Commission highlighted the concept of “locomotives”, namely,
countries that thanks to their economic power, diversified economies, size
and political commitment could provide the necessary and sustained impulse
for such cooperation. This was before the rise of several big countries in the
South, which today have the attributes and capacities needed to perform this
role and spearhead the long-term strategy of such cooperation worldwide.
The collective self-reliance of the developing countries is coming of age and
they no longer need to depend on the developed countries’ approval and sup-
port of SSC. The presence of the South’s own “locomotives” is also bound to
help overcome the traditional minimalist approach to South-South cooper-
ation by multilateral financial institutions, dictated and imposed on the lat-
ter by the North.
It is this potential role of the major South countries to propel SSC, especial-
ly those who are members of BRICS, that calls for policy attention and co-
ordination among them, as a core group and also at the regional level and
globally through G77 and NAM. It is important to work out an agreed pol-
icy framework to guide them, orient their national policies and avoid coun-
ter-productive mutual rivalry. Such a framework is also necessary to shun the
temptation, in dealings with the other developing countries, to repeat and
mimic the well-known predatory, neo-mercantilist and neo-colonial practic-
es of the traditional powers of the North, but rather actively to work on over-
coming the suspicions and doubts that have existed in different countries of
the South vis-à-vis the “big players”, especially if they happen to be in their
proximity. China, India and Brazil, in particular, can and should assume the
leading role in promoting South-South cooperation globally and should allo-
cate resources and well-equipped institutions for this purpose.
Smaller “locomotives” can certainly also play significant roles in the promo-
tion of South-South cooperation, both at the practical and policy-initiative
levels, for one thing because they are not seen to be promoting their own
grand interests, as bigger players are often suspected of doing. The recent ac-
tivities of Cuba, Venezuela, Bolivia and Ecuador readily come to mind.
The importance of national commitment and institutions. The “foot soldiers”
of SSC are the developing countries themselves, their leaders, governments,
national institutions, economic actors and the public. On the whole, one can
argue that, given the low priority assigned to SSC in the majority of cases, the
sustained policy support needed for such cooperation to persist and become
well-established has lacked. Change of national leaderships, different policy
orientations and changed priorities have shaped national policies. The cost
has often been significant and payback not evident or of major importance.
The complexities and practical difficulties involved in building up and sus-
taining South-South ventures have been off-putting and discouraging. The
public has been indolent and often mostly oriented “vertically”, to the North.
Complementarities between national economies have been missing, as well
as have institutions, infrastructures and resources needed for and devoted to
long-term and sustained efforts to build South-South links and bridges. Nor
has SSC been considered or treated as an “infant industry”, which should not
be entrusted to the volatility and dynamics of the markets and delegated to
the private actors and interests, both domestically and internationally, and
which needs to be nurtured until it can stand on its own feet solidly.
Thus, each developing country needs to vet and determine its own specific
responsibility and role and take necessary measures to secure its own com-
mitment to and involvement in South-South cooperation and ventures, a
21st century South-wide project in the making. Special attention should be
focused on countries’ leaders and their role, public and private actors, the
media, educational institutions, and the tenacious political resistance to SSC
by powerful and influential, often conservative domestic interests that have
traditionally been lukewarm to opening up to the South, have clung to the
North and acted as its influential home-grown detractors of South-South co-
operation, including by sabotaging and bad-mouthing specific projects and
activities.
Adequate and ample financing: a necessary condition. Lack of adequate and
sustained financing, including of catalytic and development financing and
capital investment, has been one of the weakest links of South-South coop-
93
eration. Whether for holding meetings and conferences, or institution-build-

ing and -support, or investment in joint projects and construction of needed
infrastructures, or payments arrangements, special purpose funds or a South
Bank, the necessary funding has not been available. This condemned many
good ideas to remain on paper, often for decades. Some South-South projects
and aims have come to life and taken off in Latin America on a limited scale,
as regional projects, thanks to the generosity and drive of Venezuela, includ-
ing teleSUR and BANCOSUR. But, these have been an exception to the rule.
Massive, sustained and adequate financing and investment will be needed to
translate the aspiration of the South’s collective self-reliance into reality.
Institutional support at global, inter-regional, regional and sub-regional lev-
els. The required institutional support has been an important missing lynch-
pin of South-South cooperation. Both the absence of needed institutions and
institutions that are underfunded, understaffed and not properly mandat-
ed have characterized SSC efforts at all levels. At the global level, a “Third
World” organization, i.e. a South Secretariat, has remained an elusive dream
after decades of hopes and efforts.
This is a major lacuna that needs to be addressed and overcome, for such
institutions do play an essential role and can act as multilateral institution-
al “South-South locomotives”. They can sustain an overall perspective of the
South, act as institutional memory keepers, energize and direct SSC over a
longer period, provide it with a joint vision and orientation that are not af-
fected by whims of policy, leadership changes in individual countries, spe-
cific national interests, and can work on creating conditions that favour the
engagement and participation of individual countries, especially small and
weak partners.
Leadership. Country leaders with a global vision and commitment to the
cause of the South and SSC are of critical importance, both in terms of en-
gaging their own countries and linking them up in common and sustained
endeavours, and in terms of personally performing a global South leadership
role that is embraced by developing countries and their peoples, as was the
case with the giant figures who launched NAM and G77. Such South leaders
need to have experience and knowledge of history, of the South and the situ-
ations and problems experienced in different regions of the South. More re-
cently, Julius Nyerere, Fidel Castro, Mahathir Mohamad and Hugo Chávez,
each in his own way, offer examples of dynamic leadership in the domains of
policy, ideas and action in the service of SSC and the Global South.
An annual global South-South cooperation report. A regular annual report
and comprehensive overview of South-South cooperation, an essential em-
pirical, statistical and analytical document, does not exist despite various at-
tempts and efforts made to launch it in the United Nations. Obviously, a re-
port of this nature would require a devoted, specialized institutional effort
and networking within the United Nations, South-wide and in the individu-
al developing countries, and would be costly both in financial and human re-
sources. Such a report, offering a worldwide overview, statistical data and de-
tailed information on SSC, is an essential but still missing piece in the global
architecture of international development cooperation. It is needed for decid-
ing global strategies, for policy-making, for monitoring trends, and for con-
crete actions.
The UN system and South-South cooperation. The United Nations system and
multilateral support are of special importance for sustaining and energizing
South-South cooperation. Once the South has done its homework and estab-
lished its South-South platform, in general and in detail, it should promote
the platform and specific demands in the United Nations, in all organizations
of the UN system, as well as in WTO, MFIs and regional development banks.
It should also present concrete proposals for the support and facilitation of
that cooperation and for the called for changes in the existing structures and
practices that would recognize the new realities and the rise of the South. The
support would need to be sustained, the goals and targets to be established
and their implementation reported on regularly.
The North and South-South cooperation. Time is ripe and it is necessary open-
ly to address and understand the North’s attitude towards South-South coop-
eration, including by focusing on the policies and actions of the key devel-
oped countries, including “triangular” cooperation, and on specific domains
such as South-South integration in WTO, South-South cooperation in sci-
ence and technology vis-à-vis the existing intellectual property regime, and
the role and impacts on SSC of TNCs and MFIs, respectively,
South-South cooperation: a long-term process

South-South cooperation is a long-term and system-changing process, which
needs understanding, commitment and a global political vision to orient it.
Small steps can yield significant benefits and create possibilities for new and
diversified initiatives in the future. It is a political, economic, social and at-
titudinal undertaking, with a potential to overcome the many tenacious ves-
tiges of the age of colonialism and imperialism and to evolve into an inte-
grative, cooperative “game-changing” process. The seeds have been sown, in-
cluding by trial and error efforts in the past decades and the experiences
gained through international development cooperation. The fruits of this pe-
riod need to be cultivated and harvested in the years and decades to come.
They hold the potential and promise of helping the attainment of the devel-
oping countries’ long-sought systemic goal – the goal of changing the North-
dominated world political and economic (dis)order.
A few concrete, feasible actions that would help to energize and foster South-
South cooperation come readily to mind:
95
a) “Marketing” South-South cooperation. It is essential to build the South’s

self-awareness among leaders, decision- and opinion-makers, as well as
the broad public, including both by recalling the commonalities of devel-
oping countries’ past histories and experiences and the similarities of their
individual positions in the North-dominated system, and by underscor-
ing the specific objectives and goals that bind them today. It is also impor-
tant to build the spirit of South-South cooperation as a vital and promis-
ing road for future development and prosperity, and for greater national
autonomy and independence. The teleSUR model becoming inter-regional
and global would significantly serve the advancement of the desired goals.
The lessons of commercial “sell” of the kind that big PR firms practice and
the means that governments use to influence public opinion would come
in useful in this undertaking of rekindling the “spirit of the South”, which
seems to be reawakening in Latin America now.
b) Establishing a “South-South Commission”. Initially, the South Commis-
sion was meant to be a “South-South commission”, one dealing only with
South-South issues. Once it was established, however, it defined its own
terms of reference to be all-encompassing and to cover North-South and
national development issues too. Given what has transpired since 1990, in-
cluding the highly discouraging experiences concerning North-South de-
velopment cooperation and a reform of the international economic order,
the moment is appropriate for establishing a South-South commission to
address the question of what the South can do for itself through South-
South cooperation and how it can influence the shaping of the world or-
der and the future by acting together. The South Commission Report can
provide a starting base and excellent background for this South-South ex-
ercise.
c) Domains of special importance. There are several domains in which South-
South cooperation holds special promise, including: the application of S&T
in the areas of food security, health, sustainable development and manage-
ment of shared ecosystems, human settlements and urban agglomerations;
joint efforts to develop regional and sub-regional infrastructures and links,
as the backbone of South-South cooperation; and such systemic issues as
a global information order, the Internet governance and uses, intellectual
property regimes, the international regulation of the TNCs and of global
finance and banking, global public goods and services, and the introduc-
tion of global taxation.
d) A UN organization for South-South cooperation. A UN organization specif-
ically dealing with South-South cooperation is necessary. Perhaps the time
has come to consider entrusting this mandate – on a full time basis – to
UNCTAD and thus enabling this organization to resume an active, ben-
eficial and central role in the field of development cooperation and glob-
al economic policy. It would be free from the obligation to plead with the
North for measures and concessions, which have been blocked, diluted or
refused for decades, and from “self-censorship” on key policy issues so as
to please the developed countries. With most of its key functions in key
domains of trade, money and finance, intellectual property, technology
transfer, transnational corporations and other “hard core” economic issues
having been removed from its mandate and agenda, a reconfigured UNC-
TAD – with a responsive and supportive constituency of G77 and China,
and without a dependence on the goodwill and policy signals of the de-
veloped countries – would be reinvigorated and able to devote its ener-
gies and activism to the mission of promoting South-South cooperation. It
would once again play a prominent role on the world political scene, like
it did in the 1960s and ‘70s. By focusing on South-South cooperation, it
would also be able to influence the shaping of the overall international de-
velopment agenda and global systemic issues. After 50 years of dedicated
but frustrated work for development and the causes of the South, this im-
portant UN organization could thus be freed of many constraints and re-
vitalized by having it focus on South-South cooperation and by renewing
its advocacy and activism, in tandem with G77, in pursuit of development
goals and an equitable and democratic world economic order of the future.
e) A South’s own organization for South-South cooperation. The policy space
and freedom of action of the developing countries would most likely be
somewhat constrained in a UN forum. Thus, the establishing of an or-
ganization of the South for South-South cooperation should be given due
consideration. Indeed, two such organizations could work in synergy and
prompt each other constructively. A South-South organization is within
the reach and capacity of the developing countries today.
In conclusion, the moving of South-South cooperation to the global centre
stage is a project awaiting the Group of 77 and the Non-Aligned Movement,
similar to when they forced trade and development on the United Nations
agenda in 1964. They have the means and power to make it happen again.
RAOUL WEILER*; TIMI EĆIMOVIĆ**
The Nature of the Planet Earth and New Sciences

of Networks and Complexity
The presentation The Nature of the Planet Earth and New Sciences of Network and Com-
plexity, is prepared by Prof Dr Timi Ecimovic1 and Prof Emeritus Dr Raoul Weiler2 and
for 10th ECPD International Jubilee Conference Reconciliation, Respect and Human Secu-
rity in the Balkan – The New Balkans and European Union: Peace, Development and Inte-
gration, Serbia, Belgrade, City Hall, October 24th and 25th 2014.
The Abstract: The humankind world of sciences and research is only treasure of human-
ity. Since end of 19th century sciences were undergoing transformation from the sciences
of nature to the sciences of humankind. As result at present, 2014, we have countless dif-
ferent specialist sciences, research and practices. Even classical distribution as nature, so-
cial and technical sciences does not reflect present. In short the world of humankind sci-
ences and research is very complex and not under leadership of researchers and scientist
but “money master monster” and less is connected with the nature of the planet Earth –
the Biosphere, which is only host of humanity from commencement some 202.000 years
ago up to present.
Among countless specialized sciences we have new comers and one of them is The New
Science of Network. Of course it is needed for better understanding of the world of hu-
mans. Besides the new sciences of network is looking like the best approach for the sci-
ence of complexity understanding.
To this new more technical as natural complex problem solving dimension we shall dis-
cuss relations and commons of the new science of network & complexity and realities of
the Nature and the Nature of the planet Earth.
Key Words: Agriculture, Climate Change System, Complexity, Complex Problem Solv-
ing, Education, Environmental Crisis, Global Warming, Humankind Crisis 2014, Nature
Realities, New Sciences of Network, Protection of the Nature, Space and Environment,
Requisite Holism, Sustainable Development and Sustainable Future of Humankind.
* Professor Emeritus, Chairman EU Chapter, Club of Rome;

** Chairman, School of Environmental studies, Ansted University, Malaysia
1 Professor and Chair of Environmental Sciences at ANSTED University, Penang Malaysia, The
Rector of WPF Univerwsity, Athens, Greece and Emeritus Citizen of Izola Municipality and Ko-
rte Community of Slovenia, EU.
2 Emeritue Professor University of Leuiven, Belgium; Trustee of the World Academy of Arts and
Sciences; Founder-PresidentClub of Rome EU Chapter, Brussels, Belgium.

Vol. 13, No.1 (2013) • issn 1726-6475
The Introduction
It is a question whether humanity understand universality when discuss-
ing the human and the Nature sciences. Our thinking of the “New Science
of Network & Complexity” and the universal science of the Nature could
be nice research of general understanding. We think the science of network
& complexity and universal science of the Nature should be interdiscipli-
nary academic field which studies systems of the Nature and the nature of
the planet Earth system as complex networks & complexity such as galaxies,
stars, planetary, biosphere, non-living3 and living nature systems of network
and complexity internally and externally.
We are discussing universal the Nature systems networks & complexity sci-
ence
Understanding the planet Earth system and nature, fitting the present glob-
al community of humankind within the boundaries of the biosphere, under-
standing the impact of the humanity to biosphere and quality of living con-
ditions within the biosphere and many more important issues are demand-
ing new approach of humankind for the issue of its longevity within present
and future biosphere.
With enormous development of technical sciences, wrongly set up of the
global community of humankind leadership, lack of understanding of the
present, enormous pollution and destruction of the basic systems within the
biosphere, the water cycle, the sulfur cycle, the carbon cycle, the ozone pro-
tection band and complexity of it, enormous research and production of the
synthetic chemical products without knowing of their impact to the nature
and many more issues the present possibilities for survival and longevity of
global community of humankind are diminishing fast.
The philosophers would say: “We are sawing of the branch on which we ate
sitting¨.
Many researchers and scientist are pointing to needed changes but present
leadership of global community of humankind is unable to see it. It is “nor-
mal” practice for those who are practicing leadership duties to see their own
needs and the needs of their family members and rest of global community
of humankind are hostages with duties and responsibilities to serve the needs
of the leadership elite. It is the present “CIRCULUS VICIOSUS”, or the Gor-
dian knot of humanity, or at present modern master slavery relationship.
The Nature and the nature of the planet Earth are not put together for human
sciences but for human longevity which is closely related to understanding of
the Nature and the nature of the planet Earth.
3 on-living and living nature within the biosphere of the planet Earth is obsolete definitions from
N
the past and is conditionally used in this presentation.
99
R. Weiler, T. Ećimović: The Nature of the Planet Earth and New Sciences of Networks and Complexity
The present global community of humankind – 2014 – has more destruction

of the nature as complementary coexistence and harmony. In our opinion
humanity is moving fast on wrong path towards destruction.
The living conditions within human eco sphere and the nature of the planet
Earth are changing and not for better but opposite. Unfortunately “the living
conditions” are only basis of Homo sapiens existence within the Biosphere.
The new sciences of networks and complexity is as contemporary additional
tool for understanding of the present and based on technical and social sci-
ences and are opening new horizon for interdependence, interaction and co-
operation with the nature understanding.
The Discussion
Cybernetics plays a central role in the development in the acquisition of new
or additional knowledge. A useful definition of Cybernetics taken from Mer-
riam-Webster:
Cybernetics is the science of communication and control theory that is con-
cerned especially with the comparative study of automatic control systems (as
the nervous system and brain and mechanical-electrical communication sys-
tems).
The definition includes “nervous system and brain” but escape possibilities of
research of cybernetics as a part of the nature in reality.
Due to complexity of discussion we shall limit ourselves on discussion of the
new sciences of networks and complexity and the nature as it is in reality.
Mentioning the nature in reality it is in brief description of the nature as:
The Nature, Universe, Cosmos and requisitely holistic units of the Nature –
galaxies, planets and other are countless forms and transformations of the
energy, matter, information, particles, rays, powers and forces, dimensions
and yet unknown contents of the Nature operating under practices of inter-
dependence, interaction and co-operation and resulting system transforma-
tions, evolvements and synergies are basis of new understanding of the Na-
ture and the nature of the planet Earth.4
Presentation of “The New Sciences of Networks & Complexity: a Short Intro-
duction” Raoul Weiler* & Jüri Engelbrecht°, July 2014, it is an excellent appli-
cation of the research and science of the issue.
4 lease see »The Principia Nature – The Nature and Homo sapiens Global Community«, Ecimov-
P
ic, ISBN 978-961-92786-7-3, 2011 and “The Anthology 2 – 2001 – 2014”, Ecimovic and Mulej,
ISBN 978-961-92378-4-7 (pdf) digital book, 2014 both could be seen at “Small Digital Library”
on www.institut-climatechange.si
Emeritus from University Leuven, Belgium; Trustee of the World Academy of Art & Science.
Vice President Estonian Academy of Science; Trustee of the World Academy of Art & Science.
We are discussing practical application of the new sciences of networks and

complexity within the nature sciences as in reality.
When researching the Nature and the nature of the planet Earth it is diffi-
cult to understand values of classical sciences methods as mathematics, syn-
thetic chemicals and technical sciences due to their non-existence in the na-
ture. They are a part of human sciences or human world or a part human eco
sphere.
Larger damages in the biosphere have been done by synthetic chemicals,
their interdependence, interaction, co-operation and synergetic results with
the nature present systems and materials. As result we are facing shortage of
the fresh water supply, the food supply, environmental poisoning, poison-
ing of the land, water and air environments, etc. All present environmental
changes are result of the synergetic results from interdependences, interac-
tion and co-operation between human eco sphere outputs and the nature. Of
course on the top is explosive reproduction of humans.
Let us see the new sciences of networks and complexity role in the Nature.
Networks5 is:
1. any arrangement or fabric of parallel wires, threads, etc. crossed at regular
intervals fastened to them so as to leave open spaces; netting; mesh
2. a thing resembling this in some way; specif,. a) a system of roads, canals,
veins, etc. that connect with or cross one another b) Radio and TV a chain
of transmitting stations controlled and operated as a unit c) a group, sys-
tem, etc. of interconnected or cooperating individuals.
3. the making of nets or netted fabric – adj. broadcast over the stations of
network
Networking is: 1. the developing of contacts or exchanging of information
with others in an informal network, as to further a career 2. the interconnec-
tion, as over communication lines, of computer systems.
For better understanding we are moving to case study of human body and
networks role within the human body system. It is not the best case study but
an indicative one.
Human body is a network of cells, matter, energy information and tissue fit-
ting together to form a system of individual representative of Homo sapi-
ens. The gene structure has role of network center and gene structure is a
part of network within each cell. The command center is brain and network-
ing is mode of action. The life is interdependence, interaction and coopera-
tion within the system as well as within the environment and other systems
within the environment and other very complex issue. On such way we may
5 According to Webster’s NewWord Dictionarry, Second College Edition, 1986

101
R. Weiler, T. Ećimović: The Nature of the Planet Earth and New Sciences of Networks and Complexity
say: living human or any living creature is a small Universe. One in all and
all in one.
The cell basic requisitely holistic unit of the living nature presents orderly,
systemic interdependence, interaction and co-operation of all matter, ener-
gy and information within it. The matter exchange within one cell creatures
is not from ashes to ashes because many of them are reproducing by sim-
ple divide – protozoon. Primordial one cell creatures first appearance was
some 3.7 billion years ago and have been first creatures on the planet Earth.
With evolution they changed to plant and animal plankton and latter to mul-
ti cells creatures. 800 million year ago aquatic and terrestrial environments
have been homage of countless number of different creatures. Ancestor of
Homo sapiens appeared some 8 million year ago and Homo sapiens evolved
some 202.000 year ago.
In our research we find important connections developed as sciences of net-
work and living creatures opening new possibilities for understanding, re-
searching and learning of the methods, mechanisms and actions of living
world.
Our work is using classical, contemporary, case study, cybernetic, complex
problem solving, systemic thinking, requisite holism, sciences of network
and complexity etc. and other research methods for better understanding of
the present.
We think sciences of Network & Complexity are a step ahead in human sci-
ences and use of network, networking and complexity for better understand-
ing of the Nature is our recommendation with this presentation.
The Conclusions
Our intention is to open new research for better understanding of many is-
sues today put aside due to wrong understanding of the Nature, human eco
sphere, living creatures etc. and opening possibility for survival of Homo sa-
piens within the Biosphere of the planet Earth.
We are recommending transformation of present global community of hu-
mankind to sustainable future society.
References:
1. “The Anthology 2 – 2001 – 2014”, Ecimovic and Mulej, digital book (pdf), could be seen at
www.institut-climatechange.si “Small Digital Library”, ISBN 978-961-92378-4-7, 2014.
2. “The New Sciences of Network & Complexity: Short Introduction”, Raoul Weiler & Jüri Engel-
brecht, presentation, 2014, also published within 15th Volume of the Anthology 2 – 2002 – 2014.
KEMAL EL SHAIRY
Curse of Oil – the Libyan Case
Introduction
Majority of the oil-rich countries, including Libya, belong to the global South
or the Third World. Their low or under-developed states is considered to be
due to mismanagement of natural resources, existence of corrupt institutions,
spending income in armament and luxury life of their ruling elites.
This research has two main purposes. The first purpose of this research is to
explain the impact that Libya’s main natural resource, i.e. oil, had on the de-
velopment of its institutions during and after Muammar El Gaddafi’s regime,
as well as to explain with the help of the “oil curse”, why the recent demo-
cratic transition in certain countries such as Tunisia, which is also part of the
Third World, was more successful than in Libya.
The second purpose of this research is to explain how Muammar El Gaddafi,
the authoritarian leader of Libya used oil resources in his attempts to weaken
the geopolitical influence of the West in Africa, and how at the same time he
strengthened his dictatorial political grip on Libya.
Thus, the main hypothesis of this research is: Muammar El Gaddafi used Lib-
ya’s, which is a member of the Global South, main resource i.e. oil in order
to extend and strengthen his reign over Libya as well as to increase his ge-
opolitical influence in Africa through his aggressive and expansionistic for-
eign policy. The Libyan February Revolution and aftermath will be briefly an-
alyzed as well.
Economic and social impact of oil abundance

When it comes to the “oil curse”, it can be said that this factor contributes to
the maintenance of undemocratic regimes, as well as that it is one of the fac-
tors that influences the democratization of the country. Huge profits based
on the exploitation of oil reserves i.e. the so-called oil rents, hinder econom-
ic growth by undermining the effectiveness of public administration, the rule
of law as well as by encouragement of corruption. 1
* Ph.d. at the Faculty of Political Science at the University of Belgrade

1 Nebojša Vladisavljević, Stabilni autoritarizam u arapskom proleću, (Stable Authoritarianism),
Sociološki pregled (Sociological Review), year XLVII, No. 4, 2013, 489–514. p. 3

Vol. 13, No.1 (2013) • issn 1726-6475
103
K. El Shairy: Curse of Oil – the Libyan Case
It may be said that the wealth stemming from natural resources, in fact encour-
ages the undemocratic rule. Finally, in these countries civil wars are far more
likely to erupt due to the fact that the potential secessionists and rebels are en-
couraged and motivated by an attractive prey i.e. natural resources2. There are
three arguments that are in favour of assumption according to which natural
resources (oil) have a negative impact on democratization. The first argument
is the theory of modernization, the second argument is the analysis of the po-
litical consequences of a rentier state and the third argument is usage of the
natural resources for creation of an oppressive coercive apparatus.3
The economic development based on the exploitation of oil reserves takes
place in economic enclaves and often in geographic enclaves. It requires large
capital investments and very little manpower and does not encourage con-
nection with other parts of the economy. Moreover, economic development
based on the exploitation of minerals, especially during periods of rapid
growth, often hinders agricultural and other industrial sectors. The strength-
ening the natural resources sector, which today is usually controlled by the
state, also strengthens the role of the state in relation to private sector, which
again dominates other branches of industry.4
While the modern states are based on taxation of citizens and for this purpose
they have developed fiscal and regulatory institutions, rentier states focus on
the distribution of rents. The absence (or significantly reduced volume) of tax-
ation, reduces the level of responsibility of the state towards its citizens.5
In the first modern countries in Western Europe, the strengthening of politi-
cal institutions and the spread of taxation encouraged the demands for politi-
cal representation and strengthening of the impact that various social groups
had on the political decision-making. The undemocratic leaders of modern
countries rich in oil, rulers can only state that, since there isn’t any taxation
(or it is on a very low level little), there is no need for representation. Thus,
the governments of rentier states are less accountable to their citizens.
Countries rich in oil have huge resources which enable them in the long run
to “buy” the sympathy of their citizens, or at least to reduce their dissatisfac-
tion with the undemocratic rule. Distributive policies upon which the politi-
cal stability is based, includes health care, education, food subsidies, housing,
cheap loans and investment incentives. Thus, it is possible to expand the so-
cial base of the regime and pacify significant social groups, regardless of the
weaknesses of the institutions of a rentier state.6
This type of economy and governance can be found in most of gulf countries
such as Saudi Arabia, Bahrain, Qatar, with UAE being the rare exception. All
2 Ibidem.
3 Ibidem.
4 Ibidem.
5 Ibidem.
6 Ibidem.
these countries are governed by undemocratic rulers, which “silence” their

citizens by providing them high living standards. In turn, the citizens “sac-
rifice” their political freedom. The best example may be found in the recent
Arab uprisings. Only two rich oil countries, such as Bahrain and Libya, faced
political unrests, with Bahrain being able to quench the unrests, while in Lib-
ya the unrests escalated into civil war.
Definition of sultanistic regimes

In order to properly explain the first purpose of this research, we should first
consider the impact and consequences that sultanistic regimes have on the
process of democratization. Stepan and Linz define sultanistic regimes and
the way in which a democratic consolidation may occur after the fall of such
regimes, in the following manner: “A sultanistic regime is one in which the
ruler personalizes the government and the regime and subjects the state, po-
litical society and civil society to a non-institutional and an unpredictable
intervention”7 They also state that “these regimes provide an opportunity for
the transition, because if a ruler (and his or her family) is overthrown or as-
sassinated, the sultanistic regime collapses. This way the end of the regime
often leads to the formation of a provisional government, and if it does not
hold elections in a timely manner, it most often poses a threat to democratic
consolidation.”8 Furthermore, Stepan and Linz warn of a potential abuse of
power by the provisional government.
According to Stepan and Linz “the direct implications of sultanistic regime
for creators of democracy is present in the fact that they are faced with an
initial task of forming a civil society, constitutionalism and the rule of law,
professional administrative apparatus, economic society as well as political
institutions from a very low level.”9 In other words, the process of democra-
tization after the fall of the sultanistic regimes may prove very problematic
due to the legacy of the previous regime and which, due to its sultanistic na-
ture, had ensured that all the aforementioned factors necessary for democra-
tization were at a very low level and almost unusable owing to the fact that
at most times they were a personal instrument of the rulers and the regime.
Libya and its oil abundance: Gaddafi’s

destructive internal policy
Taking into consideration that the research is partly based on the assumption
that the legacy of the Gaddafi regime is largely responsible for the current situ-
ation in Libya, it is crucial to explain its internal and foreign policy during the
7 Juan Linz, Alfred Stepan, Democratic Transition and Consolidation, Filip Višnjić, Belgrade, 1998,
p. 93 (Translated to Serbian language)
8 Ibidem.
9 Idem, p. 83
105
1970s and 1980s, due to the fact that this period is considered to be one of the
most turbulent periods in Libyan history and is also crucial for clarifying the
events which had occurred during and after the 17th February Revolution, as
well as to clarify the current situation in Libya. It is crucial due to the fact, that
after coming to power in 1969, and during the 1970s and 1980s, Gaddafi has
taken a certain political direction which he implemented through oil revenues,
which was the reason why his regime was classified as sultanistic. This period
is also important due to the fact that it is the most turbulent and unpredictable
period of Gaddafi’s rule, which was marked by many international incidents
that have significantly influenced and shaped Libya’s internal politics and vice
versa. It is important to note that Gaddafi financed the realization of all of his
interests and visions, with the help of petrodollars.
After seizing power, Gaddafi was accepted by the majority of the Libyan peo-
ple. However, when he announced the “Cultural Revolution” during the be-
ginning of the 70s, the elements of his sultanistic rule have begun to emerge.
The first element, which marked the beginning of the sultanistic reign of
Muammar El Gaddafi, was the introduction of national committees in all as-
pects of Libyan society and into all existing institutions (military, education-
al and administration), in order to gain complete control over these institu-
tions, and in order to monitor the implementation of the “green” revolution”
as well as any suspicious elements that could somehow threaten and endan-
ger the regime. In addition, the regime established “revolutionary commit-
tees”, which were similar to national committees, with only difference be-
ing their slightly more aggressive role, and whose task was to supervise and
monitor all aspects of the Libyan society. They were also entrusted with a
task of spreading the repression throughout the country as well as eliminat-
ing the opposition both within and outside Libya.
Another element of Gaddafi regime’s sultanism was an absolute monopoly
over natural resources i.e. oil. After the discovery of oil, Muammar El Gaddafi
treated these resources as his personal property rather than as a property of
the state. A large part of the Libyan budget, which was mainly composed of
oil revenues, was intended for building such institutions that would solely
and exclusively serve the regime and thus, emergence of any form of politi-
cal mobilization or opposition had been prevented. Also, regime’s full focus
on oil exploitation, has resulted in Libyan’s economy, infrastructure and oth-
er industrial branches being completely neglected and ignored. This further
resulted in the fact that the natural resources sector was the most developed,
and that the process of modernization had been thwarted. In a time period
between 1970-2007 an average of 70 % of total Libya’s government revenue
came from oil, while through the same period oil exports accounted for 95
% of total exports.10
10 S aleh Ali, Issa, “Oil Revenue and Economic Development; case of the Libyan Economy (1990-
2007)”, Wolloongong University, 2011, p. 29
Gaddafi “inherited” a state without developed institutions, and for decades,

he marginalized and weakened the army and military institutions, while at
the same time he was building around himself a strong and highly repres-
sive security apparatus, which resulted in him having an unopposed and firm
grip over Libya. Thus, he was able to freely choose the direction and goals to-
wards which the country would strive. By eliminating the opposition and all
the factors that could threaten his rule, Gaddafi’s regime has moved in a di-
rection of establishing institutions that were mainly formed for the purpose
of achieving and protecting the personal interests of his family and those
who were close to the regime. All aspects of Gaddafi’s policy were financed
by the “petrodollars” i.e., by oil revenues.
Taking into account the fact that Gaddafi’s regime was based on repression,
promotion and protection of the regime’s interests, and how during the mo-
narchical regime of King Idris I, political mobilization was also not easy to
initiate, it is easy to conclude that it was almost impossible to initiate a po-
litical mobilization independent of the Gaddafi regime (independent in the
sense that it is not orchestrated by the regime). Therefore, since the repressive
environment created by the regime did not allow establishment of institu-
tions such as trade unions or civic associations that initiated political mobili-
zation, the Libyan population was not properly “trained” to react and provide
any resistance. The result of Gaddafi’s sultanistic regime is Libya after the 17th
February Revolution, which has great difficulty to form one of the funda-
mental institutions such as Constitution, which is considered to be a crucial
element for building a democratic state. Without constitution, Libya faced
and will continue to face, a chain of serious problems and difficulties, such as
lack of a coherent and efficient military, security and among other education-
al institutions necessary for the development of the country.
On the other hand, the democratic transition in Tunisia and in Egypt, which
are also countries of the Third World and which throughout their history had
the “culture” of political mobilization as well as institutions that would facili-
tate it, had showed considerable progress, although Egypt’s main problem is
not so much political mobilization as is the strong role of the military. There-
fore, due to the lack of appropriate institutions which would alter the direc-
tion in which the country is moving, Libya is still following footsteps of the
previous regime and since it had followed the same path for 42 years, a huge
amount of effort, financial investment and drastic changes are required in or-
der for Libya to follow the example of Tunisia.
As I mentioned, in order to preserve power, the sultanistic regimes in Libya,
Tunisia and Egypt had each built a very repressive state apparatus and insti-
tutions in which they have invested enormous financial resources. However,
when compared with the Tunisian army, which was also marginalized, the
Libyan army has been marginalized to such an extent that it could be free-
ly assumed that Libya had no national army, but instead it only had para-
military brigades that belonged to Gaddafi’s family, while at the same time
107
the members of these paramilitary brigades in exchange for various lucrative

privileges had to protect the regime. Therefore, after the outbreak of the Rev-
olution, although it sided with the revolutionaries, the chances of the Libyan
army and police, as opposed to a properly equipped, trained Gaddafi’s repres-
sive apparatus (Revolutionary Guard, Gaddafi’s personal guard and paramil-
itary units) were minor and therefore it failed to oust Gaddafi from power
and stop the outbreak of the civil war. On the other hand, when the Tunisian
army, although being inadequately equipped due to regime’s long term mar-
ginalization, rebelled against Ben Ali’s security apparatus, it managed to al-
most completely neutralize the violence that Libyan army could not prevent.
(It is worth noting that the Tunisian army had no interest in helping Ben Ali
maintain his power, due to the fact that when compared to regime’s paramili-
tary and security forces it did not have any privileges and it was severely mar-
ginalized in all important aspects).
Gaddafi’s petrodollar aggressive and

expansionistic foreign policy
During Muammar El Gaddafi’s regime, which had been in power for 42 years,
the entire country of Libya was used as an instrument through which Muam-
mar El Gaddafi realized and tried to achieve his personal ambitions and ide-
as, both on the domestic level, as well as on the international level. All of his
geopolitical, interests, ambitions and vision were financed by Libya’s enor-
mous oil export revenues. When considering Libya’s foreign policy during
the Gaddafi regime, it is fair to say the least that it was very turbulent. There
were many international incidents that had a very negative impact on Libya’s
relations with the world’s leading powers and that could prove the aforemen-
tioned statement.
For example, Libya’s relations with the United States have begun to deterio-
rate after Gaddafi’s privatization of oil during 70’s. During the 80’s, he ini-
tiated his anti-Western campaign around the world, by sponsoring various
terrorist groups, radical rebel movements and organizations.11 Gaddafi’s re-
gime was also constantly trying to undermine and weaken the interests of
world powers such as the US and France, by meddling in the internal af-
fairs of its neighbouring African countries12. In addition, Gaddafi had threat-
ened the interests of the leading world powers, by attacking and occupying
its neighbouring countries. Due to his dissatisfaction with the decision of
former Egyptian President Anwar Sadat to initiate cooperation with Israel,
the pan-Arab minded leader of Libya Muammar El Gaddafi, had decided
11 Dana Moss, Reforming the Rogue: Lessons from the U.S.-Libya Rapprochement, The Washing-
ton Institute for Near East Policy, Policy Focus no. 105, pp. 1-49
12 Sarah Charlton, Crisis Management in Libya: Learning the Lessons of 1986, AL Nakhlan-Online
Journal on Southwest Asia and Islamic Civilization, Winter 2012, pp.1-11

attack Egypt on July 21, 1977, and thus he initiated a four-day war which
ended on July 24, 1977.13
The next example of Gaddafi belligerent, unpredictable and turbulent for-
eign policy, was the invasion of Chad in 1979, which in 1973 was preced-
ed by Gaddafi’s occupation of Aouzou strip.14 The war with Chad ended in
1989, with a total defeat of the Libyan army by the Chadian and French ar-
mies.15 It is believed that Gaddafi initiated the conflict with Chad in order to
reduce the geopolitical influence of France in the Sahel region. By occupying
Chad, Gaddafi’s regime has significantly worsened its relations with the US
and France, and therefore initiated a wave of decisions by many to support
Libya’s isolation from the international community and scene.
When it comes to the terrorist acts and attacks executed by the regime of
Muammar El Gaddafi, the most significant attacks were: the attack on a dis-
cotheque in Berlin on 5th of April, 198616, the attack on US civilian aircraft
which exploded over the Scottish town of Lockerbie on 21st of December
198817, as well as the killing of British policewoman Yvonne Fletcher on 17th
of April 1984, in front of Libya’s national diplomatic office18 in London19.
All the above-mentioned international incidents, wars, occupations and prov-
ocations were fully or partly initiated by the regime of Muammar El Gaddafi.
There are several opinions regarding the causes of such external and internal
foreign policy that was led by Muammar El Gaddafi. The first opinion has
taken as the main cause Gaddafi’s dictatorial psychological profile20. A sec-
ond opinion is based on the assumption that Gaddafi’s foreign and domestic
policies were merely the consequence of the foreign policy of the West. US
Secretary of Defence Caspar W. Weinberger, whom had served in the Rea-
gan (Ronald Reagan) administration from 1981 to 1986, held that Gaddafi
13 yndon H. LaRouche Jr., “Egypt Invades Libya As Sadat Position Crumbles”, Executive Intel-
L
ligence Review, volume no.4, number 30, 26th of July1977. god. Available at http://www.la-
rouchepub.com/eiw/public/1977/eirv04n30-19770726/eirv04n30-19770726_041-egypt_in-
vades_libya_as_sadat_pos.pdf (Accessed on 15th of April 2015.)
14 Helen Chapin Metz, Libya: A Country Study, Library of Congress, Washington, D.C.: The Divi-
sion, 1989., p.42

15 Mario J. Azevedo, War and Society; Volume 4, Roots Of Violence: A History of War in Chad,
Routledge, London and New York, 1998, p. 85
16 Nathalie Malinarich, Flashback: The Berlin disco bombing, BBC News, 13th of November, 2001.
Available at http://news.bbc.co.uk/2/hi/europe/1653848.stm , (Accessed on 15th of April 2015).

17 Edward Cody, Pan Am Jet Crashes in Scotland, Killing 270, The Washington Post, 22nd of De-
cember, 1988. god. Available at http://www.washingtonpost.com/wp-srv/inatl/longterm/pan-

am103/stories/crash122288.htm, (Accessed on 15th of April 2015).
18 Gaddafi didn’t want the Libyan diplomatic offices to be called embassies.
19 Rosie Cowan and Hugh Muir, Police to fly to Libya in new search of PC’s killer, BBC News,
26th of March 2004 Available at http://news.bbc.co.uk/onthisday/hi/dates/stories/april/17/news-
id_2488000/2488369.stm, (Accessed on 15th of April, 2015)
20 Ronald Wintrobe, Dictatorship: Analytical Approaches, The Oxford Handbook of Comparative
Politics, Oxford University Press, 2009, pp.363-394

109
resorted to international terrorism in order to achieve strategic objectives, as

well as to retaliate against the US due to the conflict in the Gulf of Sidra21,22.
However, there is also an opinion according to which Libya’s terroristic and
anti-imperialistic tendencies stem from the fact that until 1951, Libya was
occupied by various imperialist countries such as Turkey, Italy and England
as well as partially by the United States. Therefore, it is considered that Lib-
ya’s anti-imperialist and terrorist tendencies date back to the beginning of the
early Italian occupation.23
The third opinion is that internal politics of Muammar El Gaddafi creates
and influences his foreign policy decision-making. This implies absolute con-
trol over the state and desire to at any cost preserve his power as well as
to take all necessary measures, even at the international level, so that noth-
ing would jeopardize his authority. When it comes to domestic policy dur-
ing the Gaddafi regime, it could be said with certainty that this period had
been imbued with dictatorship and absolute control of the regime over all
the state institutions. Muammar El Gaddafi used all the institutions for his
personal ambitions and visions, which alse served as mere instrument for
the maintenance of his power. Taking this fact into consideration, it is logi-
cal to conclude that due to the nature of the regime, the public opinion did
not interfere and that the institutions did not have adequate capacity to limit
and restrictively influence the belligerent foreign policy of the former Libyan
leader Muammar El Gaddafi. The leader of Libya was able to freely and with-
out difficulty initiate armed conflicts with other states due to the fact that all
the state institutions were completely subordinated to his regime.
Libyan 17th February Revolution and its aftermath

After the fall of the regime of Muammar Al Gaddafi, the progress of demo-
cratic transition in Libya has proved to progress at a much slower rate than in
the neighbouring countries such as Egypt and Tunisia. The security situation
in the country is very unstable. Weapons proliferation is ubiquitous despite
the efforts of the government to prevent and thwart it. Various armed politi-
cal groups are battling for power and are seriously undermining the author-
ity and work of the government, thus disrupting the country’s stability and
security. Lack of state institutions, weakness and inefficiency of the newly es-
tablished institutions as well as the institutions remaining from the previous
regime, significantly affect the stability of not only the state but also the every-
day lives of Libyan citizens, which after having spent 42 years under sultanis-
tic regime still lack the know-how and knowledge to organize themselves in
21 rmed conflict has taken place in the Gulf of Sidra on 19th of August, 1981 in which two Libyan
A
warplanes were destroyed and as a result Gaddafi’s regime had been humiliated.
22 Sarah Charlton, Crisis Management in Libya: Learning the Lessons of 1986, op.cit., p.5
23 Idem., p. 6
a coherent and efficient manner in order to fight for their rights, their well-
being and prosperity of their country.
Unlike Tunisia, Egypt and even Algeria, throughout its history, Libya had
never had citizen unions or associations, whose task is to protect the inter-
ests of its various members. In other words, the political mobilization in Lib-
ya (even during the reign of King Idriss I) was on very low, almost non-ex-
istent levels, while during Gaddafi’s regime, it was “artificial”. Another factor
that contributes to the unstable situation in Libya is the long term margin-
alization of the army by the Gaddafi regime, which was ill-equipped and un-
dertrained as well as lacking the capacity to improve the security situation,
and thus enable the government to take measures necessary for stabilization
of the country.
Conclusion
It is true, indeed, that more than 90 percent of the oil-rich countries belong
to the Third World. Exception are the Small Gulf states united into the Ara-
bic Emirates and Russia, which could be considered as a Second World coun-
try. Norway was the First World country before oil was discovered in her ter-
ritorial water.
When taking into consideration the case of Libya as being a part of the Third
World, the First World-Second World dichotomy is very important. Libya
had all conditions to become a part of the First World. However, due to Mua-
mmar El Gaddafi’s wrong policy, Libya remained at the very end of the Third
World.
However, the means by which he intended and tried to realize his interests
were extremely aggressive and unpredictable. As a result of these aggressive
attempts, the international society had for almost two decades, considered
Libya to be a “rogue” and a “pariah” state. It is almost important to note, that
Gaddafi’s regime, during 1970s and 1980s, had spent a very large part of the
Libyan budget24 [1] on weapons acquisitions and lucrative arms deals, in-
stead of investing into Libya’s educational, social and economic infrastruc-
ture. This research has shown that this kind of domestic and economic policy
adopted by Muammar El Gaddafi’s regime had greatly hindered Libya’s pro-
gress towards development and also its attempts, to become a member of the
more developed and advanced First World.
The conflict in Libya stems from battle over territory, public and private re-
sources as well as over power. All these conflicts are taking place without the
presence of a strong and decisive state and government. These tensions had
24 I n a time period between1970-2007, an average of 70 % of total government revenue came from

oil. It is important to note that through the same period oil exports accounted for 95 % of to-
tal exports.
111
already existed before Gaddafi, but they were further exacerbated due to his
politics of clientelism and patronage.
This situation had then developed into a very unstable competition and co-
operation among various political actors. The dynamics of inclusion and ex-
clusion from the political scene is frequently accompanied by regular use of
violence, for the purpose of achieving local, regional and national goals and
interests. The current situation in Libya is a result of the following factors: the
struggle for power, control over oil resources, tensions between ethnic and
tribal affiliations. Another reason is the lack of firm state whose task would
be to regulate the volatile role of the non-state armed forces. All the above-
mentioned factors have significantly set back the attempts of the Tobruk
based government to establish state institutions, as well as their attempts to
reduce violence.25
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The European Journal of Management and Public Policy VOLUME 13 • No.

Boutros Boutros Ghali Letter of Invitation 6

Idriss Jazairy Opening Remarks 8

An Chen, Fan Yang From a Perspective of International Economic Law

Abdlatif Al-Hamad Contribution to the Group 77 50th Anniversary 64

Paolo Acanfora The Global South in the New International Disorder:

Idriss Jazairy In Defence of Special Procedures of The Human Rights

Ismail Serageldin The Next Half Century 78

Branislav Gošović South-South Cooperation: An Opportunity for South

Kemal El Shairy Course of Oil – The Libyan Case 102

EUROPEAN CENTER FOR PEACE AND DEVELOPMENT

CIP – Каталогизација у публикацији

printed in Belgrade by Graficom-uno

The Group of 77 celebrates its 50 years in 2014; the Non-Aligned Movement

The following papers presented by their authors

Once again, on account of other obligations, I regret deeply to be unable to

The European Journal of Management and Public Policy

* Ambassador; Permanent Representative of Algeria to UN office in Geneva, Switzerland

The European Journal of Management and Public Policy

i. On the evolving environment within which the South

3 I MF Note on Redistribution, Equality and Growth, 25 April 2014

5  is information, backed by interesting statistics, is provided by Dr Andreas Antoniades in a pa-

sanctions are ineffective as a way for States to force changes in policies of

6 S ee Financial Times: “Toxic talks”, 7 October 2014

ii. The second part of my presentation reviews critically

9 US, EU, Japan, Australia

prices for treating citizens contaminated by AIDS was a landmark. It put in

al from Africa against Chinese manufactured exports, China is now assisting

Likewise, efforts to open up the recruitment of the Heads of Bretton Woods

11  ranislav Gosovitch Economic and Political Order : “South-South Cooperation – An Opportu-

iii. Some policy conclusions as to the direction of the Global

ance” of emerging countries which was one of the scenarios I mentioned

13  stimates of World Bank’s International Comparative Programme, April 2014

enants. South-South cooperation can even be pursued to achieve the high-

THE VOICE FROM CHINA ON

The European Journal of Management and Public Policy

nternational Round Table

inafter OIEO)4, so as to construct an international environment in which the

1. From Bandung to Fortaleza: the Sinuous Course

6  e Final Communiqué of the Asian–African Conference, An Economic Co-operation; available at:

al Assembly document A/RES/S-6/3201 of 1 May 1974, available at: http://www.un-documents.

A/RES/29/3281 of 12 December 1974, available at: http://www.un-documents.net/a29r3281.

1.2. The South Center

1.3. Summit Meeting of Group 77

1.4. The Launch of the Doha Round and the Accession of

1.5. BRICS Leaders’ Meeting

15 vailable at: http://brics6.itamaraty.gov.br/category-english/21-documents/223-sixth-summit-

2. SSC in International Economic Legal Practices

Charter of Economic Rights and Duties of States with an overwhelming majo-

Meanwhile, the collective power formed by agglomerating the scattered

Press, 2014, pp.325 – 326.

through decades of practice by international society, how would such a

2.2. SSC-type of Law-Reforming under GATT and

22 See e.g., GATT 1947, Article I(1).

lar. However, it is obviously unfair to unconditionally apply this principle be-

at http://www.unctad.org/templates/Page.asp?intItemID=2309&lang=1., Oct. 02, 2010; United

http://www.lexisnexis.com/, Oct. 22, 2010.

veloping Countries(Decision of 28 November 1979 , L/4903, BISD 26S/203-205), at http://www.

2.3. SSC in International Investment Law

i. On the evolving environment within which the South

3 I MF Note on Redistribution, Equality and Growth, 25 April 2014

5 is information, backed by interesting statistics, is provided by Dr Andreas Antoniades in a pa-

6 S ee Financial Times: “Toxic talks”, 7 October 2014

ii. The second part of my presentation reviews critically

9 US, EU, Japan, Australia

11 ranislav Gosovitch Economic and Political Order : “South-South Cooperation – An Opportu-

iii. Some policy conclusions as to the direction of the Global

13 stimates of World Bank’s International Comparative Programme, April 2014

1. From Bandung to Fortaleza: the Sinuous Course

6 e Final Communiqué of the Asian–African Conference, An Economic Co-operation; available at:

1.4. The Launch of the Doha Round and the Accession of

15 vailable at: http://brics6.itamaraty.gov.br/category-english/21-documents/223-sixth-summit-

2.2. SSC-type of Law-Reforming under GATT and

22 See e.g., GATT 1947, Article I(1).

32 S ee Panel Report of EEC – Restrictions on Imports of Dessert Apples – Complaint by Chile,

35 S ee Kenneth J. Vandervelde, The BIT Program: A Fifteen-Year Appraisal, in The Development

3.3. Main Viewpoints of New China’s Third and Fourth Genera-

3.4. Main Viewpoints of New China’s Present (Fifth)

* Professor, International University for Languages and Media, Milan, Italy

4 emotti, F., L’ossessione identitaria, Roma-Bari, Laterza, 2010, p. xii.

ii. The unfinished review, rationalization and

2 N General Assembly resolution 60/251