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Cooperation among developing countries is on the rise, which will require multilateral institutions established by developing countries to shoulder inceasing responsibilities. This article discusses the stratigic mission, foundational principles, and development focus of multilateral institutions set up by developing countries, which could serve as tribute to the upcoming BRICS summit.
This is fine-tuned based on a draft AI translation of the Chinese version.
Strategic Mission
In the past decade, significant changes in the international situation have made many developing countries realize that South-North cooperation alone cannot solve development issues. In the past decade, various cooperating mechanisms among the Global South have been rapidly evolving, with regional cooperation achieving substantial results, and global mechanisms, represented by BRICS cooperation, also gaining momuntum.
In the new international political and economic landscape, cooperation among the Global South will enter a new stage, focusing more on translating consensus and vision into actions, which can promote sustainable development for deveoping countries.
Three detrimental results will emerge if the new ideas proposed by the Global South cannot be transformed into concrete development products and services: 1) their cooperation will fail to bring about development impact that developing countries hope for; 2) their criticism on the existing international governance system will struggle to translate into feasible multilateral reform measures; 3) certain countries from the Global North will continue to mock and even disdain the role of South-South Cooperation in improving international governance.
Just as converting new technologies into market-accepted products relies on excellent enterprises, the transformation of Global South consensus into effective tools and products depends on multilateral development institutions.
Historically, the establishment and development of the post-World War II international order were driven by multilateral institutions set up and operated mainly by developed countries like the US and Europe. For 80 years, they have made significant contributions to global development, but for developing countries, the actions of these institutions still mostly reflect the values and methodologies of developed countries, with their governance significantly influenced by developed nations, and their personnel predominantly consisting of experts from Europe and the US or those educated there.
To this day, few multilateral institutions around the world are established and led solely by developing countries; strictly speaking, there exists only one multilateral institutions with global mission, which was established by the BRICS countries. The emergence of global multilateral development institutions independently established by emerging market countries is a valueable achievement, and their vigorous development will support the effectiveness, innovation, and sustainability of Global South cooperation.
Therefore, multilateral development institutions established by developing countries should always recognize that their strategic mission is to strive to translate the consensus and vision of the Global South into concrete products and services that promote sustainable development across countries, transforming criticisms of the existing international governance system into constructive action plans.
Foundational Principles
To achieve the aforementioned strategic mission, multilateral development institutions in developing countries must uphold the following principles:
First, to be guided by Global South consensus: The work of multilateral development institutions set up by developing countries should be guided by the consensus of the Global South. Institutions need to firmly represent the common interests of the Global South and should never shy of shouldering the above-mentioned strategic mission granted under the guise of “professionalism” or “non-political” stances.
Second, to be governed by democratic and equal mechanisms: A major criticism from developing countries towards existing multilateral institutions led by developed nations is their undemocratic operations, where certain developed countries wield disproportionate influence and voting rights, even veto power. Therefore, developing countries’ own multilateral development institutions must explore new governance models, instead of repeating the “one-country-dominant” approach, to build and operate institutions, or they will lose sight of the original intention of creating a new democratic and equal model for cooperation among the Global South.
Adhering to democratic and equal mechanisms demands a higher governance capacity. Compared with other cooperative platforms, multilateral development institutions are involved in the distribution of concrete benefits, which makes coordination more challenging. However, this is a necessary institutional cost to be paid by the Global South in exploring new models of international governance.
Third, to be rooted in the development practices of developing countries: Multilateral development institutions set up by developing countries must derive their innovation from the development practices of Global South. If merely following existing practices of established institutions, they will ail to gain recognition from the Global South. In all lines of work, they should strive for innovation, according to the necessity and experiences of developing countries.
Development Focus
While firmly adhering to their strategic mission and characteristics, multilateral development institutions set up by developing countries need to be clear of their development focus, strving to enhance their institutional capabilities.
Focus I, strengthening the leadership capacity of Board of Directors. Compared to the World Bank, which has an 80-year history, multilateral development institutions set up by developing countries are still in their youth. Just as adolescents need guidance and supervision from parents and teachers, young multilateral institutions need their Boards to set goals and tasks, as well as monitoring and oversight. Board members should think strategically about the institution’s direction and communicate effectively to bridge differences in viewpoints among member countries, which should.not be left entirely to the management team.
Focus II, providing more categories of products and services. The term “multilateral development institution” encompasses a broader concept than “multilateral development bank.” The call for “building a new type of multilateral development institution for the 21st century” reflects the higher expectations of Global South leaders. Therefore, these institutions should not only provide financial products like loans, but also explore ways to address gaps in international financial infrastructure, publish research products to promote the Global South’s perspectives, and create flagship forums for entrepreneurs and experts from these countries to exchange and learn from each other.
Focus III, building a team of talents decicated to Global South cooperation. A committed and capable workforce is the cornerstone of achieving any mission. The staff of multilateral development institutions set up by developing countries must strongly identify with the consensus and vision of the Global South. They should also possess a sense of mission and responsibility toward contributing to cooperation among developing countries. Additionally, they should have a deep understanding of their own country’s political and economic conditions while being willing to learn from others. To build such a team, these institutions should pay more attention to identify and nuture young talents from developing countries.
Finale
Doing the right thing, even in the face of numerous challenges, is worth the effort.
Multilateral development institutions in developing countries are like the rising sun, destined to leave a brilliant mark on the sky.
