30/05/2025
Under: India, Opinion/Analysis, Power and Democracy, Publications
The paper offers a powerful critique of the current global economic order and a compelling vision for a more equitable future through strengthened South-South cooperation. Tracing the historical roots of inequality from the post-colonial era to the present-day debt crisis, the paper analyses the inherent imbalances of a dollar-centric system and the devastating impact of neoliberal policies on developing countries of the global South. In a heterogenous group with countries of different sizes and different levels of development, cross border trade and investments naturally create imbalances. There are countries with perpetual deficits in their trade balance and others accumulate surpluses. The Bretton Woods system puts the responsibility of correcting these imbalances on the deficit countries.
Arguing for a fundamental shift away from this overt neoliberal regime rooted in financialisation of economic activities, debt-burdens, and promotion of export-led growth, and a move towards self-reliant development models prioritizing domestic needs and policy autonomy, the paper examines emerging alternatives like the BRICS expansion and China’s Belt and Road Initiative, acknowledging their potential while critically assessing their limitations.
In imagining a reimagined international framework grounded in principles of food sovereignty, technological independence, and fair trade, the paper advocates for a move beyond financialisation towards real economic development. Appreciating the political nature of this transformation, the paper recognises the importance of collective action, challenging the dominance of the Global North, and building a truly multilateral system that prioritises the countries and peoples in the global South.
Author: Jaya Mehta
The author is an economist with the Joshi-Adhikari Institute of Social Studies (JAISS) based in New Delhi, India. The author would like to thank especially S P Shukla and other participants of the South-South Dialogue held at Pune on 26 August 2023 that was organised by Focus on the Global South and Joshi-Adhikari Institute of Social Studies (JAISS).
Published by: Focus on the Global South and Joshi-Adhikari Institute of Social Studies (JAISS) with support from the Rosa Luxemburg Stiftung – South Asia office. The publication is sponsored by the Rosa Luxemburg Stiftung with funds of the Federal Ministry for Economic Cooperation and Development of the Federal Republic of Germany. This publication or parts of it can be used by others for free as long as they provide a proper reference to the original publication. The content of the publication does not necessarily reflect a position of RLS.
