Southern-Led Development Finance Solutions from the Global South Rethinking Development Series

Southern-Led Development Finance examines some of the innovative new south-south financial arrangements and institutions that have emerged in recent years, as countries from the Global South seek to transform their economies and to shield themselves from global economic turbulence.

Even before the Covid-19 crisis, it was clear to many that the global economy needed a reset and a massive increase in public investment. In the last decade southern-owned development banks, infrastructure funds, foreign exchange reserve funds and Sovereign Wealth Funds have doubled the amount of long-term finance available to developing countries. Now, as the world considers what a post-Covid-19 future will look like, it is clear that Southern-led institutions will do much of the heavy lifting.

This book brings together insights from theory and practice, incorporating the voices of bankers, policymakers and practitioners alongside international academics. It covers the most significant new initiatives stemming from Asia, tried and tested examples in Latin America and in Africa, and the contribution of advanced economies. Whilst the book highlights the potential for Southern-led initiatives to change the global financial landscape profoundly, it also shows their varied impacts and concludes that more is needed for development than just the technical availability of funds.

As governments and businesses become frustrated by the traditional North-dominated mechanisms and international financial system, this book argues that southern-led development finance will play an important role in the search for more inclusive, equitable and sustainable patterns of investment, trade and growth in the post-Covid landscape. It will be of interest to practitioners, policy makers, researchers and students working on development and finance everywhere.

Introductory issues and roadmap to Southern-led Development Finance, Diana Barrowclough, Kevin Gallagher and Kozul-WrightPart 1: Southern-led Development Finance – Rationale, innovations and implications1.Solidarity and the South: The new landscape of long-term development finance and how to support it, Diana Barrowclough and Ricardo Gottschalk 2. The new development banks and financing of transformation in Latin America and the Caribbean, Rogério Studart and Luma Ramos Part 2: Long-term Finance – Banks, Funds and other sources of private and public investment 3.The "New" in the New Development Bank and implications for Africa, Talitha Bertelsmann-Scott and Cyril Prinsloo 4. The Neoliberal transformation of Development Banking: the Indian experience, C. P. Chandrasekhar 5. Chinese Development Finance in the Americas, Kevin Gallagher 6. Scaling up for the Sustainable Development Goals: Experimenting with South-South Models of Multilateral Development Banking, Ricardo Gottschalk and Daniel Poon 7.A connected and sustainable future – comparing lessons from southern-led regional banks and networks, CAF and the Islamic Development Bank compared, Rohini Kamal and Rebecca Ray 8. Towards a Regional Financial Architecture – the East Asian Experience, Mah Hui Lim Part 3: Regional Transformation and growth in practice – It’s more than money9. Industrial structure, intra-regional trade and financial cooperation in South America: challenges, links and hidden opportunities, André Biancarelli, Célio Hiratuka and Fernando Sarti 10.Physical integration in Latin America, a review of recent experiences and policy lessons, Ricardo Carciofi and Romina Gayá

Diana Barrowclough is Senior Economist at UNCTAD, based in Geneva, Switzerland.

Kevin P. Gallagher is Professor of global development policy in the Frederick S. Pardee School of Global Studies and co-director of the Global Economic Governance Initiative at Boston University, USA.

Richard Kozul-Wright is Director of the Globalisation and Development Strategies Division in UNCTAD, Switzerland.