User:Xiong Zijie/South–South cooperation

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One of the key goals of the cooperation is to strengthen and improve economic ties. Some of the areas which these "southern" nations look forward to improving further include joint investment in energy and oil, and a common bank. Among other regional trade agreements which were reached during the 2009 summit was Venezuela signing an oil agreement with South Africa and a memorandum of understanding with Sierra Leone to form a joint mining company. Meanwhile, Brazil has developed an increasingly successful model of overseas aid provision of over $1 billion annually (ahead of many traditional donors), which focuses on technical expertise and the transfer of knowledge and expertise. Most of Brazilian aid is allocated to Africa, specifically to Portuguese-speaking African countries, and Latin America. Brazil's form of South–South development aid has been called a 'global model in waiting'.

The two continents have over one quarter of the world's energy resources. This includes the oil and natural gas reserves in Bolivia, Brazil, Ecuador, Venezuela, Algeria, Angola, Libya, Nigeria, Chad, Gabon and Equatorial Guinea.

In recent years, the South–South cooperation has recognized the importance of effective financial inclusion policy in order to better deliver appropriate financial services to the poor. Because of this, financial policy makers from nearly 100 developing and emerging countries now comprise a global knowledge-sharing network called the Alliance for Financial Inclusion (AFI).

Representatives from the developing south meet annually at the Global Policy Forum (GPF), making it the most important and comprehensive forum for regulatory institutions from emerging economies with an interest in promoting financial inclusion policy. The forum is focused on developing and improving national financial inclusion strategies and policies, and is used as a platform for senior financial regulators to exchange ideas and engage in peer-to-peer learning activities.

Banks to finance infrastructure projects
One challenge for South–South cooperation has been the lack of sufficient capital to start a South–South bank as an alternative to the IMF and the World Bank. This has changed with the launch of two new 'South–South banks'.

At the sixth summit of the BRICS countries (Brazil, Russian Federation, India, China and South Africa), in July 2014, the five partners approved the establishment of the New Development Bank (or BRICS Development Bank), with a primary focus on lending for infrastructure projects. It will be based in Shanghai. A Contingency Reserve Agreement (CRA) has been concluded in parallel to provide the BRICS countries with alternatives to the World Bank and International Monetary Fund in times of economic hardship, protect their national economies and strengthen their global position. The Russian Federation is contributing US$18 billion to the CRA, which will be credited by the five partners with a total of over US$100 billion. The CRA is now operational. In 2015 and 2016, work was under way to develop financing mechanisms for innovative projects with the new bank’s resources.

The second new bank is the Asian Infrastructure Investment Bank. It has also been set up to finance infrastructure projects. Spearheaded by China, the bank is based in Beijing. By 2016, more than 50 countries had expressed interest in joining, including a number of developed countries: France, Germany, the Republic of Korea, United Kingdom, etc.