Emerging economies getting great alternatives of mutual assistance: Experts

Highlights

• E7 countries are China, India, Brazil, Turkey, Russia, Mexico and Indonesia
• E7's total GDP grew by a staggering  215%
• Single currency South-South trade can mitigate currency challenge
• South-South cooperation important for LDC transition

The seven emerging economies, collectively known as the E7, are becoming a great alternative source of mutual assistance in foreign trade, technology transfer and financial assistance for project implementation.

At a seminar on South-South and Triangular Cooperation: Tapping New Opportunities, experts pointed out that the total gross domestic product (GDP) of the E7 (Emerging 7) grew from $15.79 trillion to $49.69 trillion in the past 21 years, posting a staggering 215% growth.

In comparison, the total GDP of the world's seven richest nations grew by 40.9% in the same period, from $30.97 trillion to $32.06 trillion.

The E7 countries are China, India, Brazil, Turkey, Russia, Mexico and Indonesia. The seven richest nations are Canada, France, Germany, Italy, Japan, the United Kingdom and the United States.

Given the galloping rate of growth for the E7, experts emphasised that this potential should be exploited by facing various challenges, including geopolitical tensions.

Speaking as the chief guest at the seminar organised by the Economic Relations Division (ERD) at a capital hotel, Economic Adviser to the Prime Minister Mashiur Rahman said, "We are very worried about the decrease in reserves and the increase in the prices of goods. The price of goods in Bangladesh has increased due to international reasons."

Mentioning the issue of receiving the IMF loan as a certificate of character, he said in the future, loans will also be available from other organisations.

He expressed hope that the crisis would end soon as a result.

He also called for a single currency to mitigate the currency challenge during South to South trade.

South–South cooperation is a term historically used by policymakers and academics to describe the exchange of resources, technology, and knowledge between developing countries, also known as countries of the Global South.

Presenting the main article in the seminar held under the chairmanship of ERD Secretary Sharifa Khan, Policy Exchange of Bangladesh chairman and founder M Masrur Reaz said we could solve many problems in South-South cooperation through knowledge sharing.

Bangladesh's pharmaceutical industry will face problems after the least developed country (LDC) transition. Besides, new challenges will emerge, he said, adding there was no alternative to increasing institutional capacity.

RAPID Chairman MA Razzak said new measures should be taken to solve problems in South-South cooperation in import-export mismatch, lack of export product diversification, strengthening of connectivity, new challenges in international trade in LDC transition and tariff and non-tariff barriers etc.

ERD Secretary Sharifa Khan said in the current global situation and post-Covid, countries should develop mutual relations through South-South cooperation.

Along with that, the SDG goals should be implemented.

Speakers said South-South cooperation is important in the transition from LDC. Particular importance should be given to increasing exports to China and India, they added.