In the context of the ongoing geopolitical tensions reminiscent of the Cold War, the Global South faces significant challenges that threaten its economic stability and development. Jomo Kwame Sundaram highlights that the first Cold War led to economic growth in the Global North, while the current climate, exacerbated by the 2008 global financial crisis, has left US presidents struggling to maintain full employment and improve real wages and working conditions [73fa1e71].
Since early 2022, the US Federal Reserve's interest rate hikes have triggered capital flight from developing economies, further destabilizing their financial systems. Additionally, illegal sanctions imposed by the US and its allies have significantly reduced investment in the Global South, contributing to economic stagnation and escalating poverty and inequality [73fa1e71].
The new Cold War has intensified these issues, making it imperative for developing countries to cooperate in order to achieve world peace and sustainable development. IMF's Gita Gopinath has suggested that developing nations should avoid aligning themselves in this new geopolitical struggle, indicating a need for a new form of non-alignment that prioritizes sustainable development and peace [73fa1e71].
While BRICS is gaining importance as a coalition of emerging economies, it does not fully represent the interests of the Global South. The organizationās expansion, which includes countries like Saudi Arabia and Iran, reflects a shift towards a multipolar world but also highlights the complexities of uniting diverse nations under a common agenda [9f90bc47].
The global economic strategic game remains dominated by the Global North, which continues to exploit the resources of the Global South. African nations, for instance, engage in commodity cartels yet struggle to exert influence over international prices. The limited supply of critical minerals and rising costs further hinder their potential for convergence with the Global North [9aa99312].
As the geopolitical landscape evolves, the strategic position of the African and Middle Eastern Diaspora could emerge as a significant force against the Global North's dominance. The future of the Global South will depend on how these nations interpret and respond to the ongoing deceit and manipulation from the Global North [9aa99312].
In this context, the Bandung Conference's principles of non-alignment remain relevant, as developing countries must navigate a path of integration and cooperation rather than succumbing to protectionism and populism. Equitable access to finance, technology, and support for economic transformation are crucial for achieving sustainable development [3140e81d].
Ultimately, the Global South's reemergence as a force in international relations presents both challenges and opportunities. Advocating for reforms in global governance, debt cancellation, and democratization of institutions like the IMF, the Global South seeks to reshape the international economic order to create a more just and equitable world [48ac1aaa].