North-South Rebalancing

This paper focuses on four trends in which countries of the South Atlantic have emerged as thought leaders. The first is agenda-setting in the international trading regime. As trade has become a greater component of GDP across the board, the rules within the World Trade Organization’s (WTO) agreements have become more important and, arguably, more contentious. South Atlantic countries have played key roles in advancing developing-country needs in this arena. Second is in the policy response to best mitigate against challenges emanating from the “natural resource curse.” As Asia’s demand for primary goods has expanded, so has the risk to primary commodity exporters of the negative consequences of sudden good economic fortune. Countries in Latin America and Africa have developed and implemented innovative measures that will guard their country’s prosperity for future generations and can serve as a model for others. Third is the challenge of poverty alleviation. This paper explores several policies that have proven to be key factors in the rise of the Latin American and African middle classes — policies from which best practices can hopefully be replicated to keep those that have escaped poverty in the coveted middle class as well as spur greater opportunities for those still below the poverty level. Finally, the challenge of climate change threatens countries that are closer to the equator more immediately and more intensely than those that are farther away. The South Atlantic countries are responding to this threat and developing innovative approaches to address this issue.