Guide Human Development Report 2013: The Rise of the South

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Such upheaval can derail human development—as unrest impedes investment and growth and autocratic governments divert resources to maintaining law and order.

Human Development Report 2013: The Rise of the South – Human Progress in a Diverse World

It is hard to predict when societies will reach a tipping point. Mass protests, especially by educated people, tend to erupt when people feel excluded from political influence and when bleak economic prospects lower the opportunity cost of engaging in such protests. These effort-intensive forms of political participation are then easily coordinated by new forms of mass communication. But they hurt poor countries and poor communities most. Climate change is already exacerbating chronic environmental threats, and ecosystem losses are constraining livelihood opportunities, especially for poor people.

Although low HDI countries contribute the least to global climate change, they are likely to endure the greatest loss in annual rainfall and the sharpest increase in its variability, with dire implications for agricultural production and livelihoods. The magnitude of such losses highlights the urgency of adaptation measures. The cost of inaction will likely be high. The longer the inaction, the higher the cost. To ensure sustainable economies and societies, new policies and structural changes are needed that align human development and climate change goals in low-emission, climate-resilient strategies and innovative public-private financing mechanisms.

Managing demographic change Between and , world population increased from 3. As that population becomes more educated, its growth rate will slow. Educated women tend to have fewer, healthier and better educated children; in many countries educated women also enjoy higher salaries than do uneducated workers. By contrast, the richer regions of the South confront a very different problem: as their population ages, the share of the working-age population falls.

The rate of population ageing matters because developing countries will struggle to meet the needs of an older population if they are still poor. Many developing countries now have only a short window of. Demographic trends are not destiny, however. They can be altered through education policies in particular.

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This Report presents two scenarios for — a base case scenario, in which current education trends continue, and a fast track scenario, in which the countries with the lowest initial levels embrace ambitious education targets. For low HDI countries, the decline in the dependency ratio under the fast track scenario is more than twice that under the base case scenario. Ambitious education policies can enable medium and high HDI countries to curb projected increases in their dependency ratio, thus easing the demographic transition towards an ageing population. Addressing these demographic challenges will require raising educational attainment levels while expanding productive employment opportunities—by reducing unemployment, promoting labour productivity and increasing labour force participation, particularly among women and older workers.

Governance and partnerships for a new era The rise of the South is providing both opportunities and challenges for the formidable problems of an increasingly interconnected world. Challenges such as management of climate change; use of global commons; and regulation of trade, finance and migration have cross-border consequences. Some elements of global public goods can be provided at the regional level, but effective provision usually requires considerable multilateral coordination and cooperation. Neither the North nor the newly influential South can sit out the regional or global dialogues needed to forge agreement on these issues.

Countries of the South are in a position not just to contribute financial resources towards strengthening regional and multilateral processes, but also to bring the substantial experience gained through their human development achievements and pragmatic policies in many of these areas. The South has promoted new arrangements and institutions such as bilateral and regional. And they may become even more diverse: international cooperation is likely to involve an ever more complex web of bilateral, regional and global processes.

One consequence is that they underrepresent the South. To survive, international institutions need to be more representative, transparent and accountable. Indeed, all intergovernmental processes would be invigorated by greater participation from the South, which can bring substantial financial, technological and human resources as well as valuable solutions to critical world problems. In all of this, governments are understandably concerned with preserving national sovereignty. While appropriate in some cases, this focus can encourage zero-sum thinking.

Responsible sovereignty also requires that states ensure the human rights security and safety of their citizenry. According to this view, sovereignty is not just a right, but also a responsibility. The current context has profound implications for the provision of public goods. Among the areas meriting urgent attention are those related to trade, migration and climate change.

In some cases, public goods can be delivered by regional institutions, which can avoid the polarization that sometimes slows progress in larger, multilateral forums. International governance institutions can be held to account not just by member states, but also by global civil society. Civil society organizations have already influenced global transparency and rule setting on such issues as aid, debt, human rights, health and climate change.

All intergovernmental processes would be invigorated by greater participation from the South, which can bring substantial financial, technological and human resources as well as valuable solutions to critical world problems. Networks of civil society now take advantage of new media and new communications technologies. Yet civil society organizations also face questions about their legitimacy and accountability and may take undesirable forms. Priorities for a new era Through all this, the fundamental principles of human development remain critical.

As ever, the aim is to expand choices and capabilities for all people, wherever they live. Many countries of the South have already demonstrated what can be done. But they have gone only part of the way. For the years ahead, this Report suggests five broad conclusions. The unprecedented accumulation of financial reserves provides an opportunity to accelerate broad-based progress.

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Investments in human development are justified not only on moral grounds, but also because improved health, education and social welfare are key to success in a more competitive and dynamic world economy. In particular, these investments should target the poor— connecting them to markets and increasing their livelihood opportunities.

Poverty is an injustice that can and should be remedied by determined action. Good policymaking also requires a focus on enhancing social capacities, not just individual capabilities. Individuals function within social institutions that can limit or enhance their development potential. Policies to change social norms that limit human potential, such as gender discrimination, early marriages and dowry requirements, open up opportunities for individuals to reach their full potential. Less developed countries can learn and benefit from the success of emerging economies of the South The unprecedented accumulation of financial reserves and sovereign wealth funds in both the.

North and South provides an opportunity to accelerate broad-based progress. A small portion of these funds should be dedicated to human development and poverty eradication. At the same time, South—South trade and investment flows can leverage foreign markets in new ways that enhance development opportunities, such as by participating in regional and global value chains. Burgeoning South—South trade and investment in particular can lay the basis for shifting manufacturing capacity to other less developed regions and countries.

Recent Chinese and Indian joint ventures and startup manufacturing investments in Africa could be a prelude to a much expanded force. International production networks provide opportunities to speed development by allowing countries to leap-frog to more sophisticated production modes. New institutions can facilitate regional integration and South—South relationships New institutions and partnerships can help countries share knowledge, experiences and technology.

This can be accompanied by new and stronger institutions to promote trade and investment and accelerate experience sharing across the South. Greater representation for the South and civil society can accelerate progress on major global challenges The rise of the South is leading to a greater diversity of voice on the world stage. This presents an opportunity to build governance institutions that fully represent all constituencies and that would make productive use of this diversity in finding solutions to world problems.

New guiding principles for international organizations are needed that incorporate the experience of the South. The emergence of the Group of 20 is an important step in this direction, but the countries of the South also need more equitable representation in the Bretton. Woods institutions, the United Nations and other international bodies. Active civil society and social movements, both national and transnational, are using the media to amplify their calls for just and fair governance. The spread of movements and the increase in platforms for vocalizing key messages and demands challenge governance institutions to adopt more-democratic and more-inclusive principles.

More generally, a fair and less unequal world requires space for a multiplicity of voices and a system of public discourse. The rise of the South presents new opportunities for generating a greater supply of public goods A sustainable world requires a greater supply of global public goods. Global issues today are increasing in number and urgency, from mitigation of climate change and international economic and financial instability to the fight against terrorism and nuclear proliferation.

They require a global response. Yet in many areas, international cooperation remains slow and at times dangerously hesitant. Publicness and privateness are in most cases not innate properties of a public good but social constructs and as such represent a policy choice. National governments can step in when there is underprovision at the national level. But when global challenges arise, international cooperation is necessary—and can happen only through the voluntary actions of many governments. Given the many pressing challenges, progress in determining what is public and what is private will require strong, committed personal and institutional leadership.

It describes how the dynamics of power, voice and wealth in the world are changing—and identifies the new policies and institutions necessary to address these 21st century realities and promote human development with greater equity, sustainability and social integration. Progress in human development requires action and institutions at both the global and national levels.

At the global level, institutional reforms and innovation are required to protect and provide global public goods. At the national level, state commitment to social justice is important, as is the understanding that one-size-fits-all technocratic policies are neither realistic nor effective given the diversity of national contexts, cultures and institutional conditions. Nevertheless, overarching principles such as social cohesion, state commitment to education, health and social protection, and openness to trade integration emerge as means of navigating towards sustainable and equitable human development.

Mahbub ul Haq. Introduction When developed economies stopped growing in the — financial crisis but developing economies kept on growing, the world took notice. This discussion has typically focused narrowly on gross domestic product GDP and trade growth in a few large countries. As this Report shows, the rise of the South is both the result of continual human development investments and achievements and an opportunity for still greater human progress for the world as a whole.

Making that progress a reality will require informed and enlightened global and national policymaking, drawing on the policy lessons analysed in this Report. The rise of the South is unprecedented in its speed and scale. Never in history have the living conditions and prospects of so many people changed so dramatically and so fast. Great Britain, where the Industrial Revolution originated, took years to double output per capita; the United States, which industrialized later, took 50 years.

When dozens of countries and billions of people move up the development ladder, as they are doing today, it has a direct impact on wealth creation and broader human progress in all countries and regions of the world. There are new opportunities for catch-up for less developed countries and for creative policy initiatives that could benefit the most advanced economies as well. A close look at the diverse pathways that successful developing countries have pursued enriches the menu of policy options for all countries and regions while providing insights into values and world views that can inform future development cooperation and constructive responses to the most severe global challenges.

The goal, as always, is to accelerate,. Transforming the South requires changing the rules that underpin global relationships. Most multilateral organizations were designed to reflect an international order newly emerging from the Second World War. That world view no longer resonates with the 21st century rebalancing of global demographics, wealth and geopolitical influence.

In the past, financial decisions were made by the major industrial powers alone, as in the Plaza Accord. This time, a more extensive group, the Group of 20 G20 , which includes the largest developing economies, played a key role. People in the South are also increasingly taking leadership positions in long-established international organizations. Indeed, the rise of the South adds to the urgency with which governments and international organizations will need to confront challenges that are likely to loom large in the future: equity in opportunities, civic engagement in governance, environmental sustainability and the demographic bulge, to name a few.

The next sections elaborate on specific features of the rise of the South. Introduction The 21st century transformation of the South has been accompanied by major advances in public health, education, transportation, telecommunications and civic engagement in national governance.

The human development consequences have been profound: the proportion of people living in extreme poverty fell from The number of countries with a Human Development Index HDI value below the 25th percentile in dropped from 33 to 30 between and and was halved from 30 to 15 between and figure 1. At the upper end of the distribution, the number of countries with an HDI value above the 75th percentile rose from 33 to 43 between and and from 43 to 59 between and The picture is more mixed in the middle quartiles of the HDI.

Overall, no country had a lower HDI value in than in , in contrast to the prior decade, when 18 countries had a lower HDI value in than in Between and , almost all countries improved their human development status. Of countries with a complete data series, only 2 had a lower HDI value in than in Lesotho and Zimbabwe. Progress was particularly rapid in more than 40 countries of the South, whose increases in HDI value were significantly larger than predicted for countries that were at a similar level of HDI value in Note: Thresholds are the 25th, 50th and 75th percentiles of HDI values for countries in Source: HDRO.

Note: Countries above the 45 degree line had a higher HDI value in than in Blue and grey markers indicate countries with significantly larger than predicted increases in HDI value between and given their HDI value in These countries were identified based on residuals obtained from a regression of the change in log of HDI between and on the log of HDI in Countries that are labelled are a selected group of rapid HDI improvers that are discussed in greater detail in chapter 3.

Source: HDRO calculations. This major increase in share of economic output would not mean much in human development terms, however, if it had not been accompanied by an unprecedented reduction in deprivation and expansion of human capabilities. This is primarily because of the success of some of the most populous countries in eradicating extreme poverty: Brazil, China and India have all dramatically reduced the proportion of their people who are income poor—Brazil from An estimated 1.

Today, the South as a whole produces about half of world economic output, up from about a third in Note: Output is measured in purchasing power parity dollars. For many of the rapidly growing countries of the South, the population living in multidimensional poverty exceeds that living in income poverty.

And income inequality is on the rise in many countries. Sub-Saharan Africa has the most inequality in health, and South Asia in education. Massive expansion of the middle class The middle class in the South is growing rapidly in size, income and expectations. Source: Brookings Institution The sheer number of people in the South— the billions of consumers and citizens— multiplies the global human development consequences of actions by governments, companies and international institutions in the South. The South is now emerging alongside the North as a breeding ground for technical innovation and creative entrepreneurship.

This is creating new business models, as companies develop products that can reach customers with lower disposable incomes. The rise of the South is also diffusing technology through new models of extensive coverage with low margins, which serve lower income households and reach a large number of consumers in markets that have weak support infrastructure.

The world is also becoming more educated. Furthermore, the digital divide is rapidly narrowing, giving people from everywhere. The rapid expansion in the educated population in much of the South adds to the urgency of job creation on a mass scale. If enough decent jobs are not available to meet this demographic demand, the consequences are likely to include rising civil unrest, as demonstrated by the youth-led insurrections of the Arab Spring. Unprecedented connectedness Trade, travel and telecommunication exchanges are expanding worldwide at an unprecedented pace. People are moving between countries in numbers never seen before, as business professionals, as tourists and as migrants.

Countries of the South are also hosting more tourists than ever from other developing countries: by , there will be nearly 1. The takeoff has been especially notable in the past decade figure 5. The rapid expansion of educated people in much of the South adds to the urgency of job creation on a mass scale. The South now accounts for half of global trade flows, up from barely a quarter 30 years ago. The South needs the North, but, increasingly, the North also needs the South.

Countries of the South are also emerging as natural hubs for absorbing technologies and developing new products. There is now greater potential for human development thanks to technology transfer from the South. Technology transfer from the North often requires costly adaptation due to differences in absorptive capacity. Technological transfer from the South has been more amenable to direct adoption. Take the uses to which Africans are putting affordable Asian-built.

FIGURE 6 At least 15 developing countries have substantial trading relationships with more than trade partners as both exporters and importers — Developing countries with more than trade partners as both importers and exporters Note: Values are averages for and and for and Source: UNSD These and other transformations multiply the possibilities of what people can do with technology: participating in decisions that affect their lives; gaining quick and low-cost access to information; producing cheaper, often generic medicines, better seeds and new crop varieties; and generating new employment and export opportunities.

These new technologies are connecting people in formerly isolated and marginalized rural communities and in poor urban neighbourhoods. They also give them access to valuable tools, resources and information and enable them to more actively participate in the wider national and even global society. Pragmatic development policies The rise of the South spans diverse country experiences, showing that there are multiple ways to achieve and sustain human development.

Most fast-developing countries of the South opened up to foreign trade, investment and technologies. But that opening alone did not guarantee success. They also invested in their own human development capabilities, strengthened domestic institutions and built new areas of comparative advantage. The critical combination of external openness with internal preparedness allowed countries to prosper in the global marketplace, with positive human development outcomes for the population at large.

Active government leadership was crucial in accelerating economic progress and minimizing social conflict. Growth created the needed fiscal space for investment in health and education and paved the way for a virtuous synergy between economic and social policy. Well known innovative programmes in Brazil, India and Mexico—conditional cash transfer programmes and rural employment guarantee.

Elements of these programmes have been emulated by many other countries in the South. A common emphasis of these social initiatives has been to promote equity and social integration, aspects that were underappreciated in past development models but are proving to be essential elements of any sustainable path for human progress. Ruling elites are increasingly recognizing that social and economic progress can profoundly influence their own legitimacy. Investments in social welfare and public goods have become building blocks for long-term development.

New partners for development The South is now in a position to influence, even reshape, old models of development cooperation with augmented resources and home-grown lessons, but it also exerts new competitive pressures on other aspects of bilateral cooperation. The rise of the South is spurring innovation in bilateral partnership and regional cooperation, resulting in greater options within the South for concessional finance, infrastructural investment and technology transfer.

The growing assistance from the South is often without explicit conditions on economic policy or approaches to governance. The development emphasis on improved infrastructure, for example, has been rediscovered because of the domestic experience and lessons of some emerging economies.

Over the past decade, nearly half of financing for infrastructure in Sub-Saharan Africa was provided by governments and regional funds from elsewhere in the South. The South is now in a position to influence old models of development cooperation with augmented resources and home-grown lessons, but it also exerts new competitive pressures on other aspects of bilateral cooperation.

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New development partnerships have opened opportunities for bilateral trade and investment exchanges, sustaining the rise of the South. Three-quarters of the increase in foreign exchange reserves between and was accumulated by countries of the South, partly as self-insurance against future financial downturns and crises figure 7. As early as , the United Nations Development Programme identified 23 developing countries as being pivotal to South— South cooperation.

Over the past decade, those countries have accelerated their engagement with other developing countries. In the process, international regimes are realigning, and international organizations are reorienting to the shifts in global economic power due to the rise of the South.

Chapter 1 takes stock of the current status of human development globally and regionally, with an emphasis on trends, challenges and advances in such key interrelated areas as poverty, inequality, social integration and human security. Chapter 2 shows how countries of the South are emerging as significant players in the world economy, becoming both drivers of growth and catalysts for change in other developing.

Source: Grabel Chapter 3 looks at the policies and strategies that have underpinned progress in some of the more successful countries of the South. Chapter 4 asks two basic questions: can this progress be sustained, and what are likely to be the future challenges to sustaining human development? Chapter 5 looks at prospects for policies and principles for a new framework of global and regional governance that fully represents and responds to the rise of the South in the long-term interests of the South and North alike.

As the Report shows, the increasingly complex challenges of the 21st century require new partnerships and new approaches that reflect the realities of this rapidly changing world. John Maynard Keynes. Atsmon and others Samake and Yang The demographic dividend is considered a window of opportunity for additional economic growth when the proportion of the working-age population increases.

As fertility levels fall in a demographic transition, the number of children declines while the working-age population increases, lowering the dependency ratio. A country can reap the benefits of increased productive capacity associated with the lower proportion of dependents. As fertility levels continue to decline, however, dependency ratios eventually rise with the increase in retired workers. Japan is not included in the long-term historical comparison between the other Group of Seven economies and Brazil, China and India because it did not industrialize until late in the 19th century and did not emerge as a major world economic power until the second half of the 20th century.

In current US dollars. Estimates refer to years between and The measures used—life expectancy and mean years of schooling—have upper bounds towards which developing countries tend to eventually converge. There is no upper threshold of convergence for income. Dobbs and others Zuckerberg Estevadeordal, Frantz and Taylor ; the trade to GDP ratio is the sum of exports and imports of goods and services divided by total output. The current trade ratio is a five-year average from to , obtained from World Bank a. Hamdani Heilmann United Nations a. Based on data between and from Kharas, Makino and Jung and extrapolation thereafter.

IMF b. Iley and Lewis ; see also IMF b. HDRO calculations based on data on general government expenditure on social protection from the Organisation for Economic Co-operation and Development show that some industrialized countries, including Australia, Austria, Denmark and Norway, increased expenditure on social protection between and For some countries confronting high debt levels such as Greece, Italy and Japan , the subprime crisis spiralled into a sovereign debt crisis, leaving little fiscal space to postpone fiscal consolidation.

Holland and Portes suggest that, while in normal times fiscal consolidation would lower debt to GDP ratios, under current circumstances, in the European Union, it will likely lead to higher debt to GDP ratios in the region in , with the exception of Ireland. Guajardo, Leigh and Pescatori ILO Sen Keynes Throughout the crisis, the solutions implemented such as fiscal consolidation and easy monetary policies have been criticized for reaching their limits, for their secondary effects and for their transitory nature.

In some countries, the solutions have caused the economy to contract, and in others, they have pushed short-term interest rates in key money markets close to zero. These policies run the risk of creating new asset bubbles and exporting inflationary pressures to countries in the South. See Naqvi and Acharya , pp. IMF b, p. These disparities are of a similar order of magnitude as the disparity between the HDI values of, say, Mexico 0. Subnational HDI values are not directly comparable with national HDI values because they consist of different indicators and are for different years.

These disparities are of a similar order of magnitude as the disparity between the HDI values of Belgium 0. Based on a balanced panel comparison and data from World Bank a. Since income is a flow variable and education and health outcomes are stock variables, sometimes a positive difference between GNI per capita and HDI rank can emerge when a country has built up its development achievements but its income falls in the short term as in Zimbabwe. World Bank a.

United Nations Enable Smith UNDP a. World Bank b. See, for example, Wilkinson and Pickett Inequality in the HDI components is measured by the Atkinson inequality index, which takes into account inequality in distribution within and across groups consistently. In addition, it puts more weight on the lower end of the distribution, thus accounting for child mortality, illiteracy and income poverty better than the Gini coefficient. Among a range of public services, health and education contribute by far the most to reducing inequality. Anand and Segal Sala-i-Martin He uses population-weighted GDP per capita to calculate the mean of countrylevel distributions and obtains the dispersion around each mean from micro surveys.

After estimating a distribution of income for each country and year, he constructs the world distribution of income by integrating all country distributions. Bourguignon and Morrisson The Supreme Court in India recently upheld a government mandate that private schools offer a quarter of their seats to underprivileged children, a measure with the potential to substantially dilute the economic segregation in access to education.

Based on 78 countries for which the GII is available. China 1.

UNDP Human Development Report 2013: The Rise of the South

For instance, the Dowry Prohibition Act of makes giving or receiving dowry illegal in India. However, the practice continues, sporadically fuelling both female feticide and dowry deaths of new brides. Elson Fukuda-Parr As indicated in the Human Development Report UNDP , the universalism of life claims advocates equality of opportunity, not equality of income—though in a civilized society a basic minimum income should be guaranteed to everyone.

UNDP , p. High Level Panel on Global Sustainability Global Footprint Network Blanden and others ; Wilkinson and Pickett UNDP b. Ivanov and others ; Ivanov and others UNDP Rosenfeld, Messner and Baumer hypothesized that civic engagement and trust, core elements of social integration, are associated with strong social organization and therefore are indicators of low criminal violence. Data refer to the most recent year available between and Homicide data suffer from reporting errors in the Supplementary Homicide Reports and inconsistency among reporting systems at the country level, among other problems.

Sen , p. The average incidence of murder is 2. In comparison, the incidence is 2. Many prisoners have been socially excluded all their lives. Relative to the general population, prisoners are much more likely to have been in state care as a child 13 times , to be unemployed 13 times , to have had a family member convicted of a criminal offence 2. Many prisoners were effectively excluded from access to services.

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Pinker ; Center for Systemic Peace Branczik Dahal and others Iyer Since a large number of participants in internal conflicts are nonstate actors, there are no official records of their expenditure on armaments. Data on military expenditure refer to expenditure by governments alone and not expenditure by nonstate actors. Bird Green Justino Three-quarters of the 1. Estevadeordal, Frantz and Taylor These ratios are based on gross values, not value added in exports and imports, for which globally comparable data are not yet available.

Based on a balanced panel of developing countries. Based on HDRO calculations, when the trade to output ratio is adjusted to cover only trade with the South, of economies for which data are available increased trade with the South between — and — the exceptions were the small economies of Dominica, the Maldives and Tuvalu ; in contrast, 92 decreased trade with the North. World Bank Contrary to popular perception, real prices of air and maritime transport have not changed much since the s, but the decreasing weight to value ratio of international shipments and the growing use of air transport have favoured time-sensitive goods such as fashion, processed food and electronics.

Smaller countries tend to engage more in international trade than larger ones such as India, whose intranational trade is high. Furthermore, African exports are dominated by commodities whose prices increased in the s. Based on nominal values adjusted to be comparable to values. Removing fuel, metals and ores from aggregate trade statistics means that the share of South—South trade in world trade rose from 6. The traditional classification of goods as high or low technology has become less meaningful as trade in parts and components has increased.

Romero AfDB and others Gupta and Wang Hook and Clark Furthermore, South—South FDI is less deterred by differences in institutional quality between host and receiving countries. By similar logic, employment of local personnel and lower overhead costs are likely to make South—South FDI more resilient to local crises. The evidence in this paragraph draws on Hamdani Blinder UNIDO Ratha and Shaw As explained in World Bank , estimates of South—South remittances depend on which explanatory variable is used to apportion the aggregate remittance received by each country among the destination countries of its migrant nationals.

See Felbermayr and Jung and other citations in Kugler and Rapoport Foley and Kerr See The Economist a and works cited therein. The labour force consists of employed people and unemployed people actively seeking employment.

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Fu When the sample excludes developed countries, the correlation coefficient remains statistically significant but drops from 0. Jones and Kierzkowski Vos IMF a. Whalley and Weisbrod Jenkins and Barbosa ICTSD Davies Sonobe, Akoten and Otsuka United Nations b.

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  8. Moyo According to Hiemstra-van der Horst , China now accounts for a third of the world furniture market. Kaplinsky, Terheggen and Tijaja These points draw on Dobbs and others ; surveys found that positive product recommendations from friends and family were, for example, three times as important for consumers in Egypt than in the United Kingdom or the United States. Based on data for and in Kharas, Makino and Jung and extrapolated for later years. Kragelund The larger developing countries have had long-standing, if modest, development assistance programmes to Africa.

    The Brazilian Cooperation Agency was established in Bremmer World Bank c. These regional institutions have tended to draw their policy inspiration from the Bretton Woods institutions. Bank, under their prevailing charters, is empowered to modify their ownership structure in any substantial way. The United States retains veto power over changes in the capital base, which has narrowed the policy space in the two organizations. If, for example, the Asian Development Bank were to be reconstructed as a fully Asian entity that retained the flexibility to establish its own policy space, it would need to reconstitute its ownership structure by assigning much larger contributions and voting rights to countries such as China, India and the Republic of Korea Sobhan Mwase and Yang Zuzana and Ndikumana forthcoming.

    Grabel Opportunity costs capture the benefits that can be obtained from alternative uses of these resources.

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    See Rodrik and IMF b. Except where otherwise noted, content on this site is licensed under Creative Commons. Resource Title Human Development Report The Rise of the South — Human Progress in a Diverse World Summary When developed economies stopped growing during the — financial crisis but developing economies kept on growing, the world took notice. User Survey Please take a few moments to take our user survey by filling in the form below. Where are you from? How will you use this resource?

    What is your current role? Follow Us. Facebook Twitter YouTube. Get our free monthly e-zine:. We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. A key message of the report is that the growth and dynamism of the economic powers of the South, despite their resilience, do not automatically translate into human development progresses.

    However, these trends are accompanying several positive evolutions that see the South becoming increasingly more global and diverse. The report insists on the growing transnational nature of development phenomenon, that includes even more stakeholders, from international institutions to civil society organizations. These new stakeholders create opportunities for new forms of cooperation and partnerships that better address the issues and challenges of global development.