Policy Paper AMIGHINI Chinaandglobal South 2024compr 1
Policy Paper AMIGHINI Chinaandglobal South 2024compr 1
China's Grip
on the Global South
Here to Stay?
Alessia Amighini
Contributions by:
Alicia Garcìa Herrero
Jagannath P. Panda
Policy Paper
China's Grip
on the Global South
Here to Stay?
Alessia Amighini
Alessia Amighini, Co-Head of Asia Centre and Senior Associate Research Fellow at ISPI. She is Associate Professor
of Economics at the Department of Economic and Business Studies (DiSEI) at the University of Piemonte Orientale
(Novara, Italy).
© 2024 ISPI
ISBN 9788894469486
This Policy Paper is realized with the support of the Policy Planning Unit of the Ministry of Foreign Affairs and
International Cooperation pursuant to art. 23-bis of Presidential Decree 18/1967.
The opinions contained in this Paper are solely those of the authors and do not necessarily reflect the opinions of the
Ministry of Foreign Affairs and International Cooperation and ISPI.
Policy Paper
Table of Contents
IN BRIEF 6
WHAT'S AT STAKE 9
EXPLORING OPTIONS 39
OUR TAKE 42
NOTES 44
|5
China's Grip on the Global South: Here to Stay?
In Brief
S
ince the early twenty-first century, China from countries and international organisations. In
has been interacting diplomatically with the past decade, the BRI has become a flagship
other developing countries in a way that strategy of the PRC’s involvement in the Global
progressively clustered the developing world South. China has already spent roughly US$1
into a group of countries that acted cohesively trillion on the BRI, with 155 countries and 30
in international affairs. Notwithstanding the international organisations that have joined
many dissimilarities and potentially contrasting the Initiative. Even though the third BRI forum
positions among more than 150 countries was advertised by Beijing as an important
from all parts of the world, China (as the platform for discussing BRI cooperation and
largest among them) has acted as a galvanising the celebration of the BRI’s 10-year anniversary,
example. It is a strong and voluble group the BRI’s reputation has declined since the
sponsor that has inspired the South as a whole pandemic.
to develop an awareness of its relevance in
According to a recent study1 based on global
global affairs and sing to the same tune in
media reports, the perception of the initiative
international fora.
deteriorated significantly in many countries from
At the same time, China has expanded its 2017 to 2022. The notable exception is sub-
economic presence in the developing world up Saharan Africa where the BRI’s image remains
to a level that created a range of asymmetries positive, even if slightly less so than in the past.
(in trade, finance and investment) with partner This is notwithstanding several increases in
countries. This is now often viewed as a new levels of indebtedness to China, much of which
dependence by developing countries on China now face potential restructuring. Furthermore,
rather than on the North. China itself is also very we find significant inter- and intra-regional
reluctant to merge with the South/developing differences in the average sentiment towards
world in international affairs and organisations, China’s landmark project, as well as a much
where it is often separated from the core group of worse image of the initiative in countries that
developing countries and mentioned separately, are not so far part of the BRI. Perceptions of the
for example as in the “G7 and China” group. BRI have partly suffered from a deteriorating
image of China abroad, and partly to what is
At the ten-year anniversary of the Belt and
perceived as an excessive Chinese presence in
Road Initiative (BRI), in October 2023, China
many countries in terms of direct investment,
hosted its third Belt and Road Initiative Global
trade relations and foreign indebtedness.
Forum in Beijing. The first two fora were held
in 2017 and in 2019 respectively, and brought Becoming the leader of the Global South is
together a considerable number of heads of what Beijing’s diplomacy towards the South has
State and governments and representatives so far achieved through a variety of approaches:
|6
Policy Paper
|7
N(EU) Fiscal Rules:
China's Grip on the Global South: Here to Stay?
LONG-TERM
TRENDS:
• Carbon Neutrality
• Digital Transformation
COVID:
• Higher public spending/debt
• Recession
Policy Paper
What's at Stake
'50s-'60s
with the former categories, as well as their limitations, insofar as not all
countries in the Global South are also in the geographical South – e.g.
Popularisation of south of the equator. Moreover, as we will discuss later in this paper, the
the North and South very category of “South” has been acknowledged differently by some
distinction
countries (most notably, China), as a direct consequence of both the lack
of a clear geographical definition, and the blurred distinction between
North/West/developed countries (sometimes used interchangeably)
on the one hand and South/East/developing countries on the other.
The distinction between a North and a South of the world was
popularised by the Argentine economist Raúl Prebisch in the 1950s and
1960s, to indicate that the world economy was divided into a “core” and
a “periphery”, respectively called the North and the South: the former
was the group of earlier colonial powers, located in the geographical
North, and the latter was a group of colonised countries, located in the
geographical South. Later, during the 1970s and 1980s, and particularly
|9
China's Grip on the Global South: Here to Stay?
with the end of the Cold War, the “South” became, “an acceptable
overarching term for referencing former Third World countries
and identifying the uniqueness of the many socio-economic and
environmental issues affecting them”.6 Accordingly, the term emerged
in the international trade and development literature and policy circles
as a way to identify the periphery of the world economy, i.e. the group of
developing countries, largely dominated by a strong and powerful core
of industrialised countries. The meta-category of “South” is therefore
connected to patterns of political and economic differences, and,
according to Nour Dados and Raewyn Connell (2021),7 to the notion of
South (a synonym for periphery) as defined by Antonio Gramsci when
explaining how southern Italy had been colonised by northern Italy.
The North-South language has also been an important reference in
1964 multilateral institutions and negotiations, since the founding of the Group
of 77 (G-77) in 1964. As its name suggests, the G-77 was established
Founding of the by 77 developing countries signatories of the “Joint Declaration of the
Group of 77 (G-77)
Seventy-Seven Developing Countries” issued at the end of the first
session of the United Nations Conference on Trade and Development
(UNCTAD) in Geneva. It began with the first “Ministerial Meeting of the
Group of 77 in Algiers (Algeria) on 10-25 October 1967. This meeting
adopted the Charter of Algiers”, a permanent institutional structure that
gradually developed into the creation of Chapters of the Group of 77 with
Liaison offices at UNCTAD in Geneva, at UNEP in Nairobi, at UNESCO
| 10
Policy Paper
1978 Africa and Asia and the group “provided the first major instance of the
post-colonial countries’ collective resistance to Western Dominance in
Establishment of the
International relations”.10
UN Unit for South-
South Cooperation Despite the strong momentum for collective initiatives in the mid-
1950s and 1960s, it was only in 1978 that a specific Unit for South-
South Cooperation was established in the UN Secretariat to promote
South-South trade and collaboration within its agencies. This happened
immediately after an Independent Commission for International
Developmental Issues was established in 1977 with the aim of reviewing
international development issues. The former German Chancellor
Willy Brandt was appointed as its Head by Robert McNamara, then the
World Bank President. The first report by that Commission, the Brandt
Report, published in 1980, provided an insight into drastic differences
in the economic development of the North and the South. Great gaps
in standard of living were acknowledged between industrialised
countries (the North or the “core”) and developing countries (the South
or the “periphery”), mainly due to their different roles in the international
division of labour and therefore in international trade. The report’s main
argument was that the countries in the North were extremely wealthy
due to their successful production and trade in manufactured goods,
whereas the countries in the South suffered poverty due to their
production and trade in intermediate goods. By producing manufactured
| 11
China's Grip on the Global South: Here to Stay?
goods, countries in the North could add a lot of domestic value (i.e. the
added value of production activities to process intermediate goods and
input into final products) and therefore secured higher incomes than in
the South, where countries only produced and exported intermediate
goods, often primary non-processed goods and commodities. The
Brandt Report emphasised that international trade relations inherited by
a colonial past were impoverishing countries in the South while enriching
countries in the North. The end of colonial rule was not enough for the
South to recover from past economic and politic dominations, as long
as international trade perpetrated structural differences between the
North and the South, which had accumulated during the colonial era.
Therefore, the Brandt Report advocated a strong drive in favour of a
large transfer of resources from developed to developing countries.
1980 G-77 countries have also been active in the debate over South-South
The Brandt Report cooperation across academic and policy circles, which later contributed
is published to influence the field of development in the late 1990s. At that time,
mounting evidence suggested that the South as a whole was increasing
its economic relevance in the world economy, in terms of GDP and trade,
as well as its influence on international affairs. The South was on the
rise. The “rise of the South” topic progressively shifted the focus of the
original North-South divide from the development gaps differentiating
the periphery of the world from its core, towards the growing influence
of developing countries in global affairs, i.e. their new economic and
geopolitical influence.
In this context, the qualifier “Global” can be used to describe the
outbound reach of developing countries beyond or outside of the South,
in terms of economic and politic relevance and influence. In other words,
while the North-South language highlighted the differing development
levels of core countries and peripheral countries, the new Global North-
Global South terminology points to the rising weight of the South in a
global context, be it in reference to the growing importance of Southern
economies both as producers and as consumers (“emerging markets”),
or to the growing position of Southern countries in international affairs
(“rising powers”).
We must acknowledge that the “Global South” meta-category has
gained increasing prominence in the study of world politics. Haug et
al. (2021) searched Scopus (an abstract and citation database) for
references to the “Global South” in publications across disciplines and
| 12
Policy Paper
found they have grown almost exponentially since the 1990s, with a
sharp increase over the last 15 years. References to the “Global South”
in titles, abstracts and keywords have increased from only one in 1994,
to 30 in 2005 and to more than 1600 in 2020.11
Despite the booming research interest in the Global South, it is astonishing
1600
that “most publications framing research as focusing on the “Global
South” also have surprisingly little to say about the analytical value of
References to the this meta-category for making sense of empirical phenomena”.12 The
“Global South” in Global South as a meta-category has not developed into a notion of
titles, abstracts and
Global South beyond the simple classification of countries included in
keywords in 2020
the group. The South has simply been replaced by Global South as a
new label, which often ignores the very essence of the term: As Haug et
al. rightly suggest, “whereas hardly anyone would think about framing
studies on, say, US politics, French bureaucracy or Brexit negotiations
as “Global North” research, an increasing body of work on phenomena
within and across Asia, Africa and Latin America is indeed labelled as
‘research on the Global South’, often without a consideration of what this
framing implies”.13
It is far beyond the aims of this paper to discuss the conceptual and
empirical validity of the Global South as a group, or to provide a
discussion of it as a notion in the research agenda, or even to comment
on the rough use of the term in policy contexts. The aim of this policy
paper is to discuss the role in international affairs of China – the largest
developing country – within the broader group of developing countries,
which is increasingly referred to as Global South.
| 13
China's Grip on the Global South: Here to Stay?
| 14
Policy Paper
| 15
China's Grip on the Global South: Here to Stay?
| 16
Policy Paper
| 17
China's Grip on the Global South: Here to Stay?
| 18
Policy Paper
| 19
China's Grip on the Global South: Here to Stay?
A lot of further evidence has been produced over the last decade on
the importance of inward direct investment and imports for developing
countries’ production capabilities and export upgrading. More generally,
the increasing economic integration of the developing world has been
recognised as a specific engine for better economic performance.
Foreign direct investment (FDI) into developing countries contributes to
increases in GDP per capita in the long run (although there is no evidence
of any growth-enhancing effect of FDI). Yet the positive long-term effect
of FDI on the level of GDP per capita does not arise irrespective of the
nature of investing and recipient countries. More specifically, the source
of FDI matters as positive effects are only observable when capital flows
originate in the North and the Emerging South (i.e. emerging economies
in the South). Consequently, the positive effect of FDI is limited to
North to North FDI, North to Emerging South FDI, and Emerging South
to Emerging South country pairs.18 Therefore, there is evidence of a
positive impact on GDP per capita of FDI among the largest developing
countries, but not necessarily among all the countries in the South.
This contributes to our understanding of the increasing divergences in
economic performance of the Emerging South compared to the rest of
the South.
Besides their economic rise, countries in the Global South have
developed an increasing geopolitical influence. This is due partly to their
increased weight in production and trade activities, and partly to their
more cohesive voice in international affairs. The rise of the Global South
as a very large group of developing countries coming together around
international issues about which they often share a common interest is not
straightforward to assess. However, there is one widely acknowledged
way to try to evaluate the extent to which a large grouping of countries
develops an increasing affinity among its members, and acts in a more
or less united way, i.e. their similarity in voting patterns at the UN General
Assembly. When trying to understand the extent to which members of
the broad developing world have increased their affinity in international
affairs is to study their voting affinity on specific issues. One interesting
case in point is the recent voting patterns on the resolution A/RES/ES-
11/619 on 2 March 2023, exactly one year after the Russian invasion of
Ukraine, calling for Russia to end hostilities in Ukraine and withdraw its
forces.
Among its 193-members, 141 members voted in support of the
resolution, 7 voted against, 32 abstained and 13 were absent. Despite
| 20
Policy Paper
109
relations with a vast number of countries might have influenced their
votes. The 109 countries out of 133 in the Global South that are part of
Out of 133 countries China’s Belt and Road Initiative (BRI) – a comprehensive programme of
in Global South are bilateral economic and political relationships that China has built since
part of the BRI
2013 as a canvas for its economic diplomacy and a major tool of soft
power – may have looked at China’s abstention and decided not to cast
a vote against Russia for fear of jeopardising their own bilateral relations
with China.
Research on the reasons why some countries consistently declined to
condemn Russia’s invasion of Ukraine at the United Nations General
Assembly’s first emergency session since 1997 has so far focused on
the role of economic, military, political, geographic, and historical ties
with Russia only.21 Evidence shows that those countries are among
those that have defence cooperation agreements with Russia, have a
longer history of leftist governments, are major recipients of Russian aid,
have political similarities with Russia, and have no history of war with the
Soviet Union.
This research shows that economic, strategic and military influence
by Russia in many countries, usually among the poorest nations in the
world, were pretty effective in securing political support in the UNGA
for the Ukraine resolution on 2 March 2023. Arms imports, Russian aid
and defence cooperation are the most important factors explaining
voting behaviour in UN resolution A/RES/ES-11/6. At the same time,
soft power initiatives by China have cemented a broad consensus within
the Global South towards voting preferences aligned with the two big
powers in the group.
| 21
China's Grip on the Global South: Here to Stay?
| 22
Policy Paper
2010
axis of South-South cooperation went along with a changing concept
of the South itself, in China’s official statements and terminology. The
Creation of the Forum very concept of South “has been progressively reconfigured: Beijing’s
on China-Africa interpretation of the South has increasingly become a function of its
Cooperation (FOCAC) overarching ‘connectivity politics’”:23 China’s own idea of the South
includes countries that do not share or that are uncomfortable with the
Western liberal order, or that may share China’s foreign policy principles
of win-win cooperation without interference.
Such ideas of the South have become less defined either by
geographical categories or by development criteria in China’s foreign
policy terminology. It led to an “increasingly flexible South/non-South
dichotomy”24 in Chinese policy documents, as well as in China’s foreign
policy initiatives. The South has increasingly been defined through its
relationship with China’s own initiatives. It therefore become more a
kind of “cooperative space [that] is not limited to Africa, Asia and Latin
America but may well reach as far as Central and Eastern Europe”. This
type of space is usually defined in ways that allow China to stand out
as a single high-status partner, mentioned separately, as in “China + x”
or “x + China” regional arrangements, e.g. China-CEEC or 14+125, where
China’s South has welcomed developed countries in the geographic
North (most notably some European Union Member States, such as
Greece).
China’s own peculiar take on the South originates from its need to
overcome the traditional distinctions between developed-northern
| 23
China's Grip on the Global South: Here to Stay?
| 24
Policy Paper
155 22 BRI countries are in Latin America and Caribbean; 19 BRI countries in
Middle East and North Africa. This intense diplomatic activity has been
Countries that have accompanied by equally vigorous state lending to a growing number
joined the BRI of countries on the basis of the BRI agreement. This intense diplomatic
action has been accompanied by equally energetic state lending to a
growing number of low- and middle-income countries, investment by
Chinese companies abroad, and the strengthening of trade links with
partner countries.
The BRI has confirmed that China’s concept of the South goes well
beyond the way China’s South-South relations are normally described
outside of China. While many observers were originally sceptical about
the truly inclusive scope of the BRI beyond developing countries,29 it
has become clear over time that any country, rich or poor, can join this
coalition and “become a partner”.30 The BRI also confirms and ramps
up a peculiar style of China’s diplomacy, i.e. group diplomacy. This is a
mechanism for grouping together partner (developing and developed)
countries on the basis of their participation or acceptance of China being
the strongest agenda-setting power. At the same time, the BRI has
taken over the topic of South-South cooperation, as the vast majority of
China’s journal articles now mention both in the same breath, as if the
BRI had officially become the framework for implementing South-South
cooperation (Figure 4).
| 25
China's Grip on the Global South: Here to Stay?
| 26
Policy Paper
In October 2023, China hosted its third Belt and Road Initiative Global
Forum in Beijing, marking the BRI’s ten-year anniversary. The first two fora
were held in 2017 and 2019 respectively, and gathered a considerable
number of heads of State and governments and representatives from
countries and international organisations. In the past decade, the BRI
has become a flagship strategy of the PRC’s involvement in the Global
South. China has already spent roughly USD1 trillion dollars on the BRI,
with 155 countries and 30 international organisations joining the Initiative.
Even though Beijing advertised the third BRI forum as an important
platform for discussing BRI cooperation and celebrating the BRI’s 10-
year anniversary, the BRI is currently suffering from a reputational crisis
compared to before the pandemic.
| 27
China's Grip on the Global South: Here to Stay?
| 28
Policy Paper
| 29
China's Grip on the Global South: Here to Stay?
| 30
Policy Paper
BOX 1
THIRD BELT AND ROAD FORUM CONFIRMS
HOW DIVIDED THE WORLD IS*
W
hile the world continued to sleepwalk This time around, Italian Prime Minister Giorgia
into a cold war after events in Ukraine Meloni also reversed her country’s tradition of joining
and Israel-Gaza, the third global summit the first two summits, but she had already made that
of President Xi Jinping’s Belt and Road Initiative (BRI) intention clear in an official announcement at the
took place in Beijing on 17-18 October. Group of Twenty meeting in September.
Based on the participation and main outcomes, Apart from the attendance, this summit was
this summit looks very different from the first, different because it focused much less on
which took place in May 2017, or even the second improving trade and investment connectivity
in April 2019. through building infrastructure and much
Firstly, a lot fewer heads of state participated: more on foreign policy. This might be related
only 23 this time, down from 37 at the second to China’s increasing disengagement in some
summit. Secondly, several of the participants of the countries concerned, at least in terms of
were anti-Western regimes, with Russia’s lending and investment. China’s much-reduced
President Vladimir Putin as guest of honour. investment globally, including in BRI countries, is
Another landmark was the presence of Taliban probably a consequence of bad experiences with
delegates from Afghanistan. Hungary’s Viktor some of the enterprises as, reportedly, one-third
Orban participated as expected (he did not miss of BRI projects have run into trouble.
either of the previous summits) but this time he In addition, China’s GDP growth in 2023 was
also officially declared his opposition to the de- only half of 2012, when Xi Jinping conceived
risking strategy employed as part of the European this landmark project. The Chinese economy
Union’s economic-security strategy. is struggling with a real estate collapse and an
At the other end of the political spectrum, no EU increasingly heavy debt burden, which makes it
member joined the BRI Forum other than Orban, difficult to keep funding BRI projects.
while no fewer than six and seven (respectively) On the foreign policy front, the general theme of
joined the 2017 and 2019 summits. the summit reflected opposition to the policies of
| 31
China's Grip on the Global South: Here to Stay?
the United States and its allies. This has important so we should expect that the BRI – even with the
consequences for the war in Ukraine, as the EU current inclination toward foreign policy – will
and the US painfully experienced during United remain very much a hub-and-spoke system.
Nations (UN) voting on Ukraine-related issues. Given all the above, the final question is how
The Global South marching alone with China important the BRI will remain. According to
has become much more evident with the more Beijing’s BRI white paper for the summit,
recent Israel-Gaza and the lack of support for “China will continue to promote the BRI as
Israel and the US at the UN. its overarching plan and its top-level design
More generally, Beijing’s relations with the Global for opening up and win-win international
South have become key for China, and the BRI is a cooperation.” This means that China’s leadership
useful platform for this purpose even if still below, has no intention to see the BRI die out. On
in terms of China’s own hierarchy at its Ministry of the contrary, the plan seems to be that of
Foreign Affairs (MoFA), to the “global community a transformation of the BRI away from a
of shared future”. In other words, President Xi connectivity platform for trade and investment
Jinping’s vision of where China places itself in the to a foreign policy, and even security, tool. The
world is much broader than the BRI since it covers reason for this transformation is two-fold. Firstly,
the whole world with China at the center. China can no longer afford to finance so much
infrastructure in the emerging/developing world.
Going back to the BRI, and even if foreign
Secondly, in a world of strategic competition in
policy were the overriding theme, any such
which the US pushes to keep its allies, China
summit needs some specific deliverables to
needs to find its own. This means that the BRI
claim success. Among the wealth of measures
does not need so many members but that those
announced, a few stand out. Firstly, “integrity-
members should be aligned with China. This is
based” (anti-corruption) and “clean” (green)
key for pushing through common standards and
were the key objectives that accompanied
projects that might face opposition from the US
most references to the BRI, given the frequent
and the West in general.
criticism on corruption, financing of coal plants,
etc. Secondly, a global artificial intelligence To conclude, the BRI is becoming one of China’s
(AI) governance initiative was also announced. key instruments for building an increasingly anti-
Interestingly, though, the financial commitments Western agenda. Some see this agenda as a
made by China were very small compared to those response to the United States’ bipartisan interest
in the past, namely the RMB equivalent of USD 48 in containing China’s rise toward hegemony.
billion of additional resources for policy banks, and Others believe that China started this race.
USD 11 billion for the Silk Road Fund. There was Independently on who started this race, we
also no announcement of any relevant multilateral Europeans should not fool ourselves as to where
framework being created to support BRI projects, we are.
| 32
Policy Paper
1991-20
East and Sub-Saharan Africa.35 At the same time, China has leveraged
its diplomatic and economic ties with the G-77 group to influence its
Sino–Russian members’ voting decisions within the UNGA (Figure 5).36
positions in the UNGA
enjoy broader global More recently, Nurullayev and Papa (2023) studied how China and
support than those Russia have been progressively deepening their partnership in global
of the US governance to achieve common goals and how other states share their
policy positions.37 To investigate how states align with the positions of
these major powers, they examine voting patterns in the UN General
Assembly over a 30-year period from 1991 to 2020. Results show that the
Sino-Russian positions enjoy much broader global support than those of
the United States. Additionally, states that belong to the Group of 77 (G-
77) and soft-balancing institutions such as the Shanghai Cooperation
Organisation and BRICS (Brazil, Russia, India, China, and South Africa) are
more likely to align with China and Russia than states that do not belong
to these groups. Conversely, members of NATO are more likely to side
with the United States than their non-NATO counterparts. The affinity of
G-77 as well as the Shanghai Cooperation Organisation (SCO), BRICS,
and their outreach states toward China-Russia positions increases over
time. However, the affinity of NATO countries toward US positions lacks
a clear temporal trajectory. These findings suggest a growing level of
fragmentation along bloc lines within the UNGA, with states belonging
to formal alliances demonstrating less bloc-oriented behaviour than
those in informal intergovernmental groups.38
| 33
China's Grip on the Global South: Here to Stay?
| 34
countries’ concerns. The initiative was inspired by Prime Minister Shri
Narendra Modi’s vision of Sabka Saath Sabka Vikas Sabka Vishwas aur
Sabka Prayas (Together with all, development for all and the trust of all),
and also underpinned by India’s philosophy of Vasudhaiva Kutumbakam
(The entire world is a family). The Voice of Global South Summit was
India’s endeavour to provide a common platform to deliberate on the
concerns, interests and priorities that affect developing countries, in line
with India’s presidency of the G20, which provided India with a special,
strong opportunity to channel these inputs into G20 deliberations and
discourse.
| 35
China's Grip on the Global South: Here to Stay?
BOX 2
BETWEEN BRICS & G20: INDIA & GLOBAL SOUTH
ARE A RESOLUTE MATCH!*
Jagannath P. Panda
I
n November 2023, a year after its much- beyond the confines of the capital city of New
celebrated and talked about presidency of the Delhi and for popularizing the bloc (and its
Group of Twenty (G20) – an economic-focused agenda) among not just domestically but across
forum with a broad ambit embracing today’s the developing world. The almost year-long
pressing challenges – India finally passed the events (about 200) in more than 50 cities across
baton to Brazil via a virtual closing summit. With India have certainly forwarded the notion of G20
two G20 and two Voice of Global South summits as an accessible, people-centric forum.
held during its 2023 presidency, India has provided
As such, the criticism in some quarters about India
momentum to its Global South-centered rejig of
creating a “barnstorming carnival” buzz over a
international governance. India intends to fast-
rotating presidency rang somewhat unwarranted
track not only equitable growth and representation
and smacked of the very underlying elitism the
for the developing world, but also its multipolar
emerging and developing world constantly faces.
world aspirations by demonstrating its convening
More so because in recent history, the Global
and consensus-building power.
South has not received even a fraction of the
The evolving non-Western meeting ground of attention India’s diplomatic endeavors managed to
an expanding BRICS (Brazil-Russia-India-China- garner during its G20 presidency.
South Africa), which is also looking to reform
In this context, the historic, albeit belated, entry
multilateralism while reconfiguring the Western
of the African Union (EU) into the G20 was one
dominance in global geopolitical narrative and
of the core achievements. Increasing Africa’s
institutions, has provided another avenue for
representation in the G20 by also inviting two
such a mission. How far will India’s political intent
African states as summit observers is not just
transcend the global fragmentation?
a question of Global South solidarity but also
politically relevant, including to counter China’s
THE G20 JUGGERNAUT
growing clout in the continent.
One of the foremost features of India’s G20
Besides, India also succeeded in initiating
presidency was its projection of the G20 as a
projects (from working groups to conferences) on
people’s forum, both in terms of the foreign
topical themes including Startup 20; disaster risk
participants experiencing an emerging India
| 36
Policy Paper
reduction; climate-resilient and nutritious grains New Delhi has used its watershed moment as
(with a focus on millets, a “superfood” favored in G-20 president to strategically advance the
many developing countries); green, responsible economic, human, climate, and developmental
consumption; women-led development; and interests and concerns of developing nations.
technological transformation.
In particular, as a vocal proponent of integrating
The latest highlight is the creation of a Social Impact environmental considerations and social
Fund to build the Digital Public Infrastructure (DPI) equity into G-20 discussions, India has been
in the Global South countries, with India’s initial making the right noises in promoting a just
contribution of US$25 million. The DPI project is transition to cleaner energy sources. The UN
a viable means to accelerate sustainable growth Assistant Secretary-General Ligia Noronha, too,
and development, as evidenced by its successful has hailed the just transition efforts as “being
implementation in India. finally given the attention they deserve.”
Importantly, the release of a joint Delhi Declaration Thus, even as India’s G20 extravaganza suggests
amid deep-seated fragmentation between the an image-building exercise, that is not the whole
Global South and West on areas ranging from truth: India has sought to use its leadership
climate action to the Ukraine war was an incredible rhetoric to pave the way for a new, more
achievement for India’s diplomacy. At the same inclusive, and open global order. Furthermore,
time, criticism about the language on the Ukraine Delhi has championed values like inclusivity and
war, which even though “refrained” countries from a more balanced economic order, by calling for
forceful territorial “acquisition” did not condemn fair trade and investment practices, addressing
Russia’s actions, did highlight a lost chance for trade barriers and protectionism that hinder the
establishing a strong anti-war rhetoric. But that a economic progress of Global South nations,
consensus was at all possible indicated the power better financial inclusion, healthcare, education,
of compromise. and bridging the digital divide.
Announcements such as establishing a Green
WITHER INDIA’S CLOUT IN BRICS+?
Hydrogen Innovation Centre; upping climate
finance; enhancing digital inclusion; addressing debt The 2023 BRICS Summit in Johannesburg
vulnerabilities; and “reinvigorating” multilateralism was another milestone event with its historic
enhanced the Global South’s visibility. expansion inviting six states Argentina, Egypt,
Ethiopia, Iran, Saudi Arabia, and the UAE and the
The launch of an inter-regional rail and shipping
emphasis on using local currencies for trade and
initiative, the India Middle East Europe Corridor
investment. Argentina’s refusal to come on board
(IMEC), was also being seen as a counter to the
has had little effect on the grouping’s allure in the
Belt and Road Initiative (BRI). However, the Hamas-
developing world or the new momentum toward
Israel war has for the time being put a spanner
South-South cooperation.
in the works. The inherent value of the ambitious
IMEC lies in boosting trade, energy, and digital The presence of six of the 10 top oil producers
connectivity, which should work as an incentive for reflects that BRICS+ will be extraordinarily important
the war-weary Middle East in the long term. for not just energy trade but also shaping the
sustainability-oriented economic development.
Above all, via unprecedented four summits within
The West disregards this growing forum of the so-
a year, where over 150 world leaders participated,
called “globally grumpy” at its own peril.
| 37
China's Grip on the Global South: Here to Stay?
As regards the expansion helping China’s clout cake. India is certainly in a position to act as a glu-
in Global South, certainly China’s economic, ing agent between the West and the East while
political, and diplomatic resources have championing the concerns of the Global South.
allowed it greater dominance in non-Western Even the state-owned Chinese media has grudg-
forums, including the expanded BRICS. The ingly accepted that India’s G20 presidency was
China-brokered Saudi-Iranian deal; China’s gaining worldwide attention, which could “turn
strengthened synergy with Brazil; and its latest this influence into a driving force for growth.”
pro-Palestinian neutrality in the Hamas-Israel war,
In this vein, the Chinese President Xi Jinping
among other efforts, have propelled its stakes as
not attending any of the summit meetings was
a Global South leader.
downplayed even by China. And Russian Presi-
Notwithstanding such concerns, the consen- dent Vladimir Putin speaking at the virtual summit
sus-backed expansion of the BRICS has strength- marked a “rare interaction” with the West in a
ened India’s Global South proposition that pri- multilateral setting since Ukraine’s invasion. This
marily centers around values like inclusivity and highlights India’s growing sway among friends
diverse representation. India’s growing economic and rivals in the emerging Asian and Indo-Pa-
fortunes coupled with India’s cooperative, con- cific security architecture – from the China-led
sultations-based efforts, as evidenced by its out- Shanghai Cooperation Organization (SCO) to the
reach during Global South summits, in contrast US-led Quadrilateral Security Dialogue (Quad).
to China’s “declining power” trajectory amid BRI’s
Moreover, India’s successful balancing of its part-
growing “debt-trap diplomacy” concerns will for
nerships, whether they be oil trade-based with
now make India a more attractive option.
Russia or security with the US, as well its policy of
Moreover, the 2023 BRICS summit highlighted reiterating dialogue and diplomacy as a way out
that China’s anti-West agenda will not find favor of conflicts has paved the way for an optimistic
among the majority in the Global South, which multilateral trajectory.
would rather focus on economic development
In sum, both the BRICS summit and India’s G20
measures and climate action than get caught up
presidency has pushed forth the strengthening
in major power geopolitical battles.
of multipolarity as an abiding change. It has also
signaled that the world indeed is undergoing a
ENGENDERING MULTIPOLARITY,
re-balancing of sorts, with the Global South no
REINVIGORATING MULTILATERALISM
longer willing to be contained on the sidelines.
For India, both the BRICS summit and the G-20 At the same time, the promise of consensus
presidency outcomes have become markers building has instilled hopes for revitalizing endan-
of its economic and technological growth; the gered multilateralism.
Global South leadership has been the icing on its
| 38
Policy Paper
Exploring Options
| 39
China's Grip on the Global South: Here to Stay?
2023 West and North to improve their overall group image and individual
national images, to combat the increasing fascination exerted by China.
US President Joe According to the Atlantic Council, the West needs to “offer a fresh vision”
Biden hosted a of what the relationship between developed and developing countries
summit with the should be in the future. “This framework should also stress the benefits
18 members of the
of open societies and civil liberties to counter China’s pro-authoritarian
Pacific Island Forum
at the White House principles.” Furthermore, that vision should be supported with real
money, with reference to the launch of two infrastructure programmes to
compete with China’s BRI – the G7’s Partnership for Global Infrastructure
and Investment and the European Union’s Global Gateway Strategy.
Instead of mimicking China style initiatives, focused mostly on
infrastructure projects, we see a need to upgrade the overall scale and
scope of traditional cooperation in favour of broader partnerships. In
the current geopolitical context, the need to counterbalance China’s
economic and political influence on the rest of the South is increasing
among Western countries as well as among the rest of the Emerging
South, and maybe also among many of the poorest countries in the
| 40
Policy Paper
| 41
China's Grip on the Global South: Here to Stay?
OUR TAKE
The financing of infrastructure abroad through the Global Gateway
could promote the dissemination of European standards and values in
the world, reinforcing the objectives of the European industrial policy
objectives and the market penetration capacity of European companies
and could facilitate the achievement of decarbonisation goals in the
rest of the world, a key principle of the European green strategy. The
ambition to go beyond mere financing of investments and infrastructures
is in fact confirmed not only by the Commission, the involvement of
the High Representative for the Common Foreign and Defence Policy,
Josep Borrell, as well as the Commissioners for Neighbourhood and
Enlargement, and for International Partnerships. Global Gateway is
therefore a candidate to become one of the main instruments of the
| 42
Policy Paper
European Union's external action in the immediate future and one of the
cornerstones of its industrial policy. Alongside the proposal for a new
EU Net Zero Industry Act, the European Green Deal, the Chips Act, the
Critical Raw Materials Act, the Strategic Compass and the RePower EU
plan, the European Gateway represents a fundamental building block
for the realisation of the Union's economic and geopolitical objectives
of the Union, as well as for the strengthening of its competitiveness and
resilience in a scenario of increasing tensions.
However, potential obstacles could hamper effective implementation.
As the EU Global Gateway seems to be an attempt to catch up with
competing plans such as the Chinese BRI, new funding needs to be
put on the table and not simply reformulations or shifts of already
earmarked funds and the private sector should be more and more
thoroughly assessed, through strong scrutiny in the design and technical
and financial feasibility (as well as verification of environmental and
social standards. Moreover, preconditions for establishing an effective
international competition must be secured, so as not to penalize
European firms competing with firms from third countries where lower
quality standards prevail.
In an era characterised by hyper-competitiveness between powers,
in the words of Commission President Ursula von der Leyen, any
ambition for strategic autonomy cannot be detached from a solid
external action aimed at strengthening ties with partner countries and
reducing the strategic dependencies of the Union. This is even more
pressing considering the awakening of the infrastructure sector in the
United States, with $1.2 trillion Bipartisan Infrastructure Law passed by
the US Congress in 2021. That tool is specifically aimed to strengthen
national infrastructure companies, making them more solid and efficient
in the domestic market and, subsequently, better prepared to face
international competition in third-country markets.
| 43
China's Grip on the Global South: Here to Stay?
Notes
1. A. García-Herrero and R. Liberia, Libya, Nepal, Pakistan, the
Schindowski, “Global trends in Philippines, Saudi Arabia, Sudan,
countries’ perceptions of the Belt Syria, Thailand, Turkey, Democratic
and Road Initiative”, Working Paper Republic of Vietnam, State of
04/2023, Bruegel, 2023. Vietnam, and Kingdom of Yemen.
2. When Wang Yi, then serving as Acharya, Amitav, “Studying the
China’s Foreign Minister, went on an Bandung conference from a Global
expedition through the South Pacific IR perspective”, Australian Journal
in mid-2022, carrying a security and of International Affairs, vol. 70, no. 4,
economic pact he expected the 2016, pp. 342-57.
leaders of the island nations there to 9. Indonesia’s President at that time,
sign, he got no support in the region. Sukarno, referred to it as “the first
3. M. Schuman, Why China won’t intercontinental conference of
win the Global South, Report, The coloured peoples in the history
Atlantic Council, October 2023. of mankind”. He added that
“Now we are free, sovereign, and
4. At least, this was the original
independent. We are again masters
meaning of the term, as first used
in our own house. We do not need
by Carl Oglesby in 1969, in a special
to go to other continents to confer”,
issue on the Vietnam War published
Ibid.
in Catholic journal Commonweal,
where he wrote that centuries of 10. Ibid.
northern “dominance over the global 11. S. Haug, J. Braveboy-Wagner and G.
south […] [has] converged […] to Maihold, “The ‘Global South’ in the
produce an intolerable social order”. study of world politics: examining
5. P.J. Kohlenberg and N. Godehardt, a meta category”, Third World
“Locating the ‘South’ in China’s Quarterly, vol. 42, no. 9, 2021, pp.
connectivity politics”, Third World 1923-44, DOI:10.1080/01436597.202
Quarterly, vol. 42, no. 9, 2021, pp. 1.1948831, cit. p. 1924.
1963-81. 12. Ibid.
6. J. Braveboy-Wagner, The Idea 13. Ibid.
of the Global South: The Limits 14. R. Horner and K. Nadvi, “Global
of the Material and the Need for value chains and the rise of the
Imagination, Working Paper, 2018. Global South: unpacking twenty-
1–18. first century polycentric trade”,
7. N. Dados and R. Connell, The Global Networks, vol. 18, no. 2, 2017,
Global South, Contexts, vol. 11, pp. 207-37.
no. 1, 2012, pp. 12-13, https://doi. 15. This section is mostly taken from A.
org/10.1177/1536504212436479 Amighini and M. Sanfilippo, “Impact
8. The conference was sponsored of South–South FDI and Trade on
by Burma, Ceylon, India, Indonesia, the Export Upgrading of African
and Pakistan, and was attended by Economies”, World Development,
these 29 independent countries: vol. 6, 2017, pp. 1-17.
Afghanistan, Burma, Cambodia, 16. S. Gelb, South-South investment: the
Ceylon, China, Egypt, Ethiopia, case of Africa in Africa in the world
Gold Coast, India, Indonesia, Iran, economy – The national, regional
Iraq, Japan, Jordan, Laos, Lebanon,
| 44
Policy Paper
| 45
China's Grip on the Global South: Here to Stay?
a major shift in the strategic thinking 37. D. Nurullayev and M. Papa, “Bloc
of Chinese leaders from a ‘small Politics at the UN: How Other States
country’ to a “big country” mentality. Behave When the United States
28. A. Amighini, Money and Might along and China-Russia Disagree”, Global
the Belt and Road, Milan, Bocconi Studies Quarterly, vol. 3, 2023, pp.
University Press, 2021. 1-11.
29. For example, Timothy R. Heath 38. A.F. Cooper, “China, India and the
argued that “Chinese authorities pattern of G20/BRICS engagement:
insist any country can become a differentiated ambivalence
partner, but a closer look at official between ‘rising’ power status and
statements makes it clear that solidarity with the Global South”,
the real aim is to build a political Third World Quarterly, vol. 42, no. 9,
coalition of developing countries” 2021, pp. 1945-62.
(RAND Blog, 8 October 2018, https:// 39. J. Panda, “Between BRICS & G20:
www.rand.org/blog/2018/10/ India & Global South Are a Resolute
what-does-chinas-pursuit-of-a- Match!”, Korea on point, Korean
globalcoalition-mean.html). Association of International Studies,
30. Italy was a notable case, when 11 September 2023
it signed an MoU in 2019 and 40. Data from Statista, available
joined the BRI, until it did not at https://www.statista.com/
confirm willingness to extend its statistics/263287/ranking-of-the-
participation in 2024. largest-development-aid-donors/
31. García-Herrero and Schindowski 41. Schuman (2023).
(2023). 42. When Wang Yi, then serving as
32. https://sdgs.un.org/partnerships/ China’s foreign minister, went on an
global-development-initiative- expedition through the South Pacific
building-2030-sdgs-stronger- in mid-2022, carrying a security and
greener-and-healthier-global economic pact he expected the
33. J. Vadell, L. Ramos, P. Neves, "The leaders of the island nations there to
international implications of the sign, he got no support in the region.
Chinese model of development in 43. Schuman (2023).
the Global South: Asian Consensus
as a network power", Revista
Brasileira de Política Internacional,
Instituto Brasileiro de Relações
Internacionais Brasília, Brasil vol. 57,
2014, pp. 91-107.
34. Ho-fung Hung, "The tapestry of
Chinese capital in the Global South,"
Palgrave Communications, Palgrave
Macmillan, vol. 4, no. 1, December
2018, pp. 1-6.
35. C.M. Dawn, China's Rise in the Global
South: The Middle East, Africa, and
Beijing's Alternative World Order,
Oxford University Press, 2022.
36. T. Takahashi, “Rising and Leading:
China with the G77 at the United
Nations General Assembly”, Social
Science Research Network,
3944408, 18 November 2021.
| 46
Policy Paper
| 47
About
The Institute for International Political Studies (ISPI), founded in 1934, is an independent think tank
committed to the study of international political and economic dynamics. It is the only Italian Institute
– and one of the very few in Europe – to combine research activities with a significant commitment to
training, events, and global risk analysis for companies and institutions. ISPI favours an interdisciplinary
and policy-oriented approach made possible by a research team of over 50 analysts and an international
network of 70 universities, think tanks, and research centres.
• Research and publications. The daily monitoring of international events and trends carried out
by the Institute's Centre and Programmes allows a rich and timely circulation of online products
(Dossier, Focus, Fact Checking, Commentaries and Longread), and also of products published
on social-media website (podcasts, infographics, audio-video post, web-stories). The main
research findings are collected in policy-oriented Reports, Analyses and Policy Paper. ISPI
provides also support for the business world with specific products and services – such as the
newsletter series "ISPI Global Watch", briefings, notes, and close-door meetings.
• Promoting dialogue through events. ISPI promotes several events every year, both in Milan
and Rome, as well as in other Italian and European cities. The maintrends in the global scenario
are discussed through: International Conferences (Rome MED-Mediterranean Dialogues since
2015 in partnership with Italian Ministry of Foreign Affairs and International Cooperation; Global
Policy Forum in partnership with Bocconi University and OECD); Bilateral Dialogues Fora; Instant
Events; Closed-door Meetings.
• ISPI School. The ISPI School cooperates with academics, experts, diplomats, international
and NGO operators thus offering range of training courses including: Master in Diplomacy,
Master in International Cooperation; more than 70 short courses. ISPI also organises courses
on EPSO Competitions and ECHO programmes. Professional Certificate, tailor-made training
programmes for public and private organisations, and training modules for Italian and foreign
diplomats.
ISPI is a no-profit Institution. It works in partnership with other think tanks and organisations but does
not make grants to individuals or institutions. https://www.ispionline.it
The Institute for International Political Studies does not take collective positions. This Policy Paper,
like all publications of the ISPI, represents only the views of its authors. Copyright of this publication
is held by ISPI. You may not copy, reproduce, republish or circulate in any way the content from this
publication except for your own personal and non-commercial use. Any other use requires the prior
written permission of the Institute for International Political Studies © ISPI May 2023.
| 48