KARACHI, Dec 7: Globalization has changed demography of international economy in which there is no room for outdated and adhesive policies for promoting South-South cooperation.

These developing countries need to remodel their economic policies compatible to international standards for the globalization of their firms through outward foreign direct investment (OFDI) in the mutually interested areas.

This was suggested by Tariq Sayeed, former president of the FPCCI, during his presentation at a three-day inter-governmental expert meeting, which concluded on Tuesday in Geneva, Switzerland, says a press release of the FPCCI issued here on Wednesday.

The meeting was arranged by the United Nations Conference on Trade and Development (UNTACD) which included four sessions on enhancing the productive capacity of developing country firms through globalization.

Speaking on one of the topics “strengthening South-South cooperation through outward FDI by developing country firms”, the former FPCCI chief threw light on some of the economic facts responsible for bringing a change at economic globe.

He referred to success stories of some of the international firms being operated by private sectors in developing countries and said firms of developing countries could be strengthened by entering into regional trade agreements (RTAs) and free trade agreements (FTAs) which were gaining momentum in the ongoing era of globalization.

Mr Sayeed, who is chairman of G-77 Chamber of Commerce and Industry’s Trade Fair Authority and also former chairman of the G-77 chamber, identified some factors, including similarity in economic structure, far-flung distances amongst South-South nations, lack of complimentarity in trade and economy, a few opportunities in relocation of industries and services, lack of information about each other’s potential in terms of consumption, production, trade gap, consumers behaviour and purchasing power parity and poor contact at the public and private sector level amongst the countries, which were impeding growth in cooperation amongst South-South nations.

Pointing out the current trend in global trade, he said FDI was concentrated in developed countries, both in source and destination.—APP