Why The Global South Matters
The Importance of Partnerships and Alliances.....Opportunity Awaits!
The Global South holds the key to economic growth this decade. As the battle for influence continues, winners and losers will be measured by economic innovation partnerships, global trade agreements, and relationships with new leadership. The opportunity lies in the ability of state, federal and private industries to establish joint bridges of next generational technology across multiple disciplines and security partnerships. This will allow for the freedom of new ideas, new business models and rebalanced world partnerships. If you look at the US approach to the Global South, you see fragmented partnerships, broken models and siloed opportunities. If you look to the middle kingdom’s approach, you see fast moving monies, like minded business practices and centralized execution. Both have shortcomings, benefits and impact. The developed world gets distracted by the business practices and alternate processes in foreign lands, largely driven by the blinding comforts of home. The emerging world gets distracted by the complexity of should be practical solutions. Speed and access blind accountability.
The Global South will represent over ~60% of the world’s population by 2050. With these emerging markets comes innovation driven by need, practicality, and intense drive. As a result, it’s also estimated over ~40% of the startup ecosystems will come from countries in the Global South. These countries are looking to solve domestic problems, but they look to the North for scale and structure. Additionally, the Global South represents enormous, untapped natural resources which can fuel the world for the next 100+ years. It’s no secret that the US and China have invested heavily over the years in these countries. The methods, means and outcomes are all different. China has “flexible laws.”, the US has rigid outdated models.
What is it?
The term "Global South" broadly refers to countries located in Africa, Latin America, Asia, and Oceania, primarily those that are considered developing or emerging economies. This term is more of a socio-economic and political classification rather than a strict geographical one. Here's a list of many of the countries often included in the Global South, categorized by their respective continents:
Africa
Nigeria, South Africa, Egypt, Kenya, Ethiopia, Ghana, Tanzania, Uganda, Algeria, Morocco
Asia
India, Pakistan, Bangladesh, Indonesia, Philippines, Vietnam, Thailand, Myanmar, Sri Lanka, Cambodia, China
Latin America and the Caribbean
Brazil, Mexico, Argentina, Colombia, Peru, Venezuela, Chile, Ecuador, Guatemala, Cuba
Oceania
Papua New Guinea, Fiji, Solomon Islands, Vanuatu, Samoa
If you think about all these countries, many represent large populations centers, rich resource centers and strategic locations. Many are plagued with leadership turmoil, various degrees of corruptions, and limited infrastructure. These challenges represent the opportunity. Opportunity for motivated entrepreneurs, business driven governments, and resource focused engineers. Africa will have the largest and youngest population by 2040. India could represent the next Asian Tiger. Latin American holds the keys to the next generation of energy. The island nations hold environmental innovation knowledge. We could go on and on with opportunistic overtures. Relationships, mindsets and models are the key to success.
Why does it matter?
While the term Global South is debated, the world is still divided between emerging and developed countries by large. Couple in other terms like BRICS and you still see the same opportunities around technology, infrastructure and economic development. It matters for the US for diversification which plays into the strengths of the nation. It matters for China for economic and societal stability. Some will argue democracy. Some will argue dictatorship. What matters most are the relationships between the countries driven by economic, security and cultural ties. The influence for energy, resources, and technology will continue no matter the title.
What is the opportunity?
The opportunity lies across companies with next generation technologies, governments with economic security and organizations with locally crafted development models. The technologies can provide leapfrog use cases. The economic security comes in the form of alliances, partnerships and problem-solving relationships. The new development models take business fortitude, inside knowledge and local partnerships.
These can come in the form of tech innovation bridges which include incubators, accelerators, soft landing programs, and venture ecosystems. Specifically, governmental backed programs which allow sharing, advancement and development of localized solutions in both markets they serve. The US has an opportunity to export technology as well as import technology. The governments have the ability to influence populations through economic benefits. While the militaries need to be aligned, the economic influence can and should be greater for these countries who already blend the two together.
Tech, Innovation Bridges — New ideas for emerging practical problems
Economic Security — New markets, Diversification, Resources
The Global South matters for several reasons. Firstly, it is home to the majority of the world's population, and its markets offer significant opportunities for trade and investment. Secondly, the region is rich in natural resources, such as oil, minerals, and agricultural products, which are in high demand globally. Thirdly, the Global South is a hub for innovation and entrepreneurship, with many startups and small businesses emerging in countries such as India, Brazil, and Nigeria.
What opportunities await you in the Global South? How can you build your organization with the opportunities in the South?
TJ