South-South Cooperation through investment – South African and Chinese support to development in Lesotho?

Van Der Lugt, Sanne (2011-11)

CCS Policy Briefings are drawn from the published reports and other material produced by the Centre. They aim to highlight specific recommendations and outcomes from the larger reports and present them in a concise, easily consumable format.

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The 4th High Level Forum of Aid Effectiveness in Busan/Korea focused on defining a new paradigm for aid and development and to build a new, all-inclusive, development partnership, sparked by increasing involvement of emerging economies. Emerging economies are promoting an alternative development cooperation model in which economic transactions such as trade and investment play an important role. South-South Cooperation (SSC) has been often compared with the development aid traditional donors have been offering to developing countries for many decades. The emphasis has been thereby on the equivalent to aid. This risks neglecting the crucial role of trade and investment in SSC. This Policy Briefing is based on a study on the role of investment in SSC and, more specifically, the role of state agencies of emerging economies in ensuring that the investments of their nationals contribute to social and economic development in the host country.

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