Summary
| Rapidly growing "South-South" trade - trade between developing nations - is a major trend in the global economy that will be reviewed at UNCTAD XII. Its potential and international economic implications are immense. Compared with the standard pattern of exchanging goods between developing and industrialized nations, South-South trade tends to feature a broader range of products and result in transfers of an especially useful mix of knowledge and appropriate technology. This can nourish stable, long-term economic growth. |
The India-Africa Conference/Exhibition, featured partners who have a great deal to offer each other. India is fast becoming a global economic giant and has increasing energy needs. It is currently the world´s sixth largest oil consumer. Africa has much untapped oil and gas potential - proven reserves of about 16 billion metric tons of oil and 500 trillion cubic feet of natural gas. But it lacks expertise, training and technology for expanding and broadening the continent´s economies and for getting the most out of African hydrocarbon reserves.
UNCTAD, as part of its support for the two-day meeting, focused on establishing a "development-transmitting partnership." The long-term aim is to bolster India´s energy security while using Indian expertise to help create better financing for African domestic economies, more effective institutions, improved worker training and job creation. Added goals are technology transfers, environmental sustainability and increased local participation in hydrocarbon industries and services, which could also lead to the production of more value-added African products for export, including to India´s US$1 trillion market. Trade between India and Africa has already grown ten-fold since 1990.
The framework of cooperation resulting from the New Delhi conference has among its goals "hydrocarbon cooperation agreements between India and various African countries covering exploration and production and downstream policy issues." It also calls for cooperation in the area of research and development and technology transfer; cooperation in retail marketing of petroleum products and lubricants by Indian companies in African markets; and the training in India of technical and managerial personnel from the African oil industry.