The first part of this article gives a brief overview of the main problems facing the developing countries in the present international trading system, and reviews the debate on import substitution vs. export promotion. Towards this background the main part of the article discusses South-South co-operation as an alternative or complementary development strategy. Global South-South co-operation and collective self-reliance is largely dismissed as an ideologically motivated policy recommendation, overlooking the large number of conflicting interests among developing countries. The areas of joint interest are greater at regional or subregional levels, and a number of South-South integration schemes have been signed during the last decade. There are several potential gains associated with these integration processes, but substantial economic and political barriers have to be overcome. When geographically and politically possible, North-South integration schemes may have larger advantages than pure South-South arrangements.
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Paper provided by Norwegian School of Economics and Business Administration- in its series Papers with number
21/98.
Length: 24 pages Date of creation: 1998 Date of revision: Handle: RePEc:fth:norgee:21/98
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Find related papers by JEL classification: F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations F15 - International Economics - - Trade - - - Economic Integration O19 - Economic Development, Technological Change, and Growth - - Economic Development - - - International Linkages to Development; Role of International Organizations O20 - Economic Development, Technological Change, and Growth - - Development Planning and Policy - - - General
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