South Centre

Intellectual property rights

In June 2019, the South Centre published a policy brief on Intellectual Property and Electronic Commerce: Proposals in the WTO and Policy Implications for Developing Countries,  which provided an overview of discussions within the WTO on IP and its potential implications for the digital economy.

In September 2020, the Centre published a research paper on Data in Legal Limbo: Ownership, Sovereignty, or a Digital Public Goods Regime? and in 2022, a research paper titled The Liability of Internet Service Providers for Copyright Infringement in Sri Lanka: A Comparative Analysis.

The South Centre continued to collaborate with a network of academic research institutions from the North and South, led by American University, Washington School of Law, and participated in the annual meeting of the global network of experts on the right to research and copyright in June 2024 in Washington DC that dealt, inter alia, with the intersection of AI, copyright and information law.

The South Centre also provided inputs to the First Open Consultations Process Meeting held on 18 November 2024, within the WSIS+20 High-Level Event 2025.

In light of the global health pandemic, the South Centre, as part of its publication series SouthViews, shared the perspectives of developing countries on digital health, challenges and recommendations to overcome these, and the use of digital technology for education in developing countries. A SouthViews on Access to Medical Equipment in a Pandemic Situation: Importance of Localized Supply Chains and 3D Printing was also published.

E-commerce and trade

The digital economy is another issue researched by the South Centre in the context of development. For instance, in 2017, it published an analytical note, The WTO’s Discussions on Electronic Commerce, which explores the stance of developing countries (i.e. readiness in terms of infrastructure, upskilling, etc.) to engage in cross-border e-commerce. Among other things, it highlights challenges such as low IT adoption and the lack of electricity supply, which limit the uptake of e-commerce activities in Africa, for instance. Another analytical note published that same year tackles the impact of the digital economy on micro, small and medium-sized enterprises (MSMEs), and looks into the type of e-commerce rules that could best serve the interests of MSMEs. In 2019, it addressed issues on the regulation of the digital economy in developing countries, namely, the future of work, market dynamics, and data and privacy protection.

The South Centre also provides analyses and organises many meetings to discuss issues such as the WTO E-Commerce Moratorium and the Joint Statement Initiative (JSI) plurilateral discussions on e-commerce.

The South Centre has published a research paper on the WTO Moratorium on Customs Duties on Electronic Transmissions. This paper highlights the adverse impacts of the continuing moratorium on developing and least developed countries. The moratorium is causing almost all developing and least developed countries to lose tariff revenues at a time when they are most needed. With no clarity on the definition of electronic transmissions and thereby on the scope of the moratorium, its continuation can lead to substantive tariff revenue losses for developing and least developed countries in the future.

The South Centre has issued a statement on the landmark shift of the United States Trade Representative’s decision to rein in the Big Tech digital trade agenda under the E-Commerce JSI negotiations.

In 2024, the South Centre actively engaged in discussions on the WTO e-commerce moratorium on customs duties for electronic transmissions, a critical issue for developing countries facing revenue losses and diminished policy space in the digital economy. The Centre prepared a detailed commentary on the WTO’s mapping of quantitative studies related to the moratorium, highlighting the fiscal implications and addressing gaps in existing analyses, particularly the unequal impact on developing economies. This work aimed to equip member states with insights to advocate for evidence-based decisions that preserve their ability to implement national policies in the digital era. 

During the WTO Information Session on the moratorium, the Centre also responded to member inquiries, clarifying technical issues and offering strategies to mitigate long-term trade and policy challenges. The Centre emphasised the importance of balancing global trade objectives with the need to safeguard the fiscal stability and policy autonomy of developing countries. These contributions underscore the South Centre’s dedication to ensuring that the evolving digital trade framework is equitable and inclusive for the Global South.

The South Centre provided technical support by preparing draft negotiating texts on the Work Programme on E-commerce and the moratorium on electronic transmissions at the WTO Thirteenth Ministerial Conference (MC13). Our comprehensive commentary on the MC13 Decision (Policy Brief No. 130 ‘Unpacking the WTO MC13 Decision on the Work Programme on Electronic Commerce’) further assisted developing countries in understanding the implications of the decisions and refining their negotiation strategies.

The South Centre also monitors developments and participates in discussions on the ground and across international organisations in Geneva, including the UNCTAD eTrade for All initiative.

In 2022, the South Centre organised/co-organised two sessions during UNCTAD eCommerce week: Data Regulation: Implications for the Digitization of the Economy and Development and Exploring a Global Framework for Data Governance. The South Centre Executive Director also participated in the eTrade for All Leadership Dialogue. See the Centre’s contribution here.

The South Centre has launched a policy brief analysing the EU-ESA Economic Partnership Agreement (EPA) Digital Trade Chapter, assessing its alignment with development priorities. This research aims to provide actionable recommendations to member states, ensuring that regional trade agreements reflect the interests of developing countries and promote sustainable growth. Through these efforts, the Centre continues to drive inclusive digital development and foster equitable participation in the global digital economy.

The African Continental Free Trade Area (AfCFTA) marks a historic achievement in Africa’s quest for economic integration, with the ambitious goal of establishing the world’s largest free trade area by uniting 54 African countries. As digital trade emerges as a critical engine of economic growth, the formulation of the AfCFTA Digital Trade Protocol has become a cornerstone of this broader framework. The Digital Trade Protocol aims to harmonise regulations across member states, streamline cross-border digital transactions, and position African countries to compete effectively in the global digital economy. However, the diversity in digital infrastructure and regulatory environments across the continent presents significant challenges, making the negotiations both intricate and sensitive. Ensuring that the protocol fosters inclusive growth while respecting national digital sovereignty is paramount. The South Centre has had an active role in this process by providing technical expertise and drafting negotiating texts to support African delegates to advocate for their countries’ interests. The analyses and contributions to the development of the Digital Trade Protocol, along with comments on its annexes, have contributed to shaping a framework that balances regional cooperation with national priorities. Additionally, the South Centre has convened strategic meetings with some African delegates, facilitating collaboration and building consensus on key issues.

Taxation

The taxation of the digital economy is the single biggest issue in international taxation today. Countries around the world are trying to find solutions for taxing Big Tech companies that operate with very different business models, owing to which they can escape taxation under outdated international tax rules meant for a brick-and-mortar economy. The key solution being negotiated is known as Amount A of Pillar One of the OECD’s Two Pillar Solution. The South Centre has been actively involved in Amount A negotiations, briefing its member states and submitting comments on every single set of Model Rules that have been put out for public comment, articulating the concerns and issues of developing countries. In 2022, we published the world’s first set of country-level revenue estimates on Amount A, contrasted with the UN solution of Article 12B of the UN Model Tax Convention. Revenue estimates were published for the member states of the South Centre and the African Union, with whom the study was jointly conducted. In October 2023, we published another policy brief titled Beyond the Two Pillar Proposals: A Simplified Approach for Taxing Multinationals, which offers an alternative policy solution different from those of the UN and the OECD. We also published a policy brief in June 2023 titled Taxation of Digital Services: What hope for the African States? which argues that African countries need to improve digital connectivity to be able to collect more taxes under the OECD digital tax solution of Amount A. This is because the revenue sourcing rules of Amount A allocate profits using digital indicators such as viewing of advertisements, IP addresses, etc.

At the UN Tax Committee, we participated in the 26th Session in New York, where we mobilised developing country members through peer exchanges and briefings and also participated in the negotiations to promote the interests of our member states and other developing countries, inter alia, on the taxation of the digital economy. Ahead of the UN Tax Committee session, we published a study on the taxation of computer software. The study on computer software showed that 34 of the South Centre’s member states could have collected $1 billion in taxes in 2020 from computer software sales had there been the corresponding standards by the UN. The study helped mobilise support from developing countries and brought to a close a 20-year negotiation on the taxation of computer software.

We also published a policy brief titled Conceptualizing Remote Worker Permanent Establishment, which provided an innovative solution for taxing the emerging phenomenon of work from home/work from anywhere. 

The UNCTAD Intergovernmental Group of Experts on the Digital Economy invited the South Centre to present the policy options for taxing the digital economy to UN member states. Our presentation was so appreciated that the governments of Palestine and Cambodia immediately requested capacity building on the subject.

Given our expertise in the taxation of the digital economy, in June 2023, we co-organised a G20-South Centre event on international taxation. This was on capacity building for Indian tax officials on the Two Pillar Solution and the international tax standards being negotiated in the UN. This was also our first G20 event, and was widely praised and appreciated by Indian participants. We mobilised international tax experts from across Asia, Africa, and Latin America to share their perspectives on these topics with Indian officials.

In May 2023, we partnered with the UNDP to co-organise a Capacity Building Workshop on the taxation of the digital economy in May 2023. The two organisations shared the policy options available to Sri Lanka to tax the digital economy, which included a digital services tax. The workshop was so impactful that within a few days, the government introduced a digital services tax and, in the record time of two months, got it passed by Parliament. We remained engaged and provided technical briefs to the Sri Lankan Parliament, particularly the Finance Committee.

We were also invited to participate in the Addis Tax Initiative (ATI) General Assembly in Zambia, where we provided capacity building on ATI member states on the taxation of the digital economy. After the workshop, the Finance Ministry of Zambia reached out to the South Centre Tax Initiative (SCTI) for detailed policy advice.

The SCTI recognised that it was of prime importance that South Centre member states and other developing countries make an informed decision on whether or not to sign the Amount A Multilateral Convention (MLC), and also to contrast it with feasible alternatives. Hence, in collaboration with the African Tax Administration Forum (ATAF) and West African Tax Administration Forum (WATAF), in June 2024, the South Centre released Research Paper No. 199 titled A Toss Up? Comparing Tax Revenues from the Amount A and Digital Service Tax Regimes for Developing Countries, which provided key information to decision makers and was reported in the international media. In October and November 2024, partnership with WATAF and ATAF, teh South Centre held technical briefings for their members on their aforementioned joint publication, showcasing the country level revenue estimates for all South Centre and African Union members under Amount A and Digital Service Taxes (DSTs) and available policy options for the taxation of the digital economy. The study indicates that Amount A is unlikely to result in tangible revenue gains for developing countries due to high thresholds and restrictive provisions of the rules, among others. On the other hand, DSTs can provide, on average, three times higher revenues from Amount A for South Centre and African Union member states.

The SCTI participated as a panellist in a meeting organised by the African, Caribbean and Pacific (ACP) Group in October 2024 to discuss the status of taxing e-commerce in the context of the WTO Moratorium, where they presented SCTI’s research on revenue estimates from the OECD vs UN solutions for taxing the digital economy. The SCTI also served as a panellist on the GDC during the 32nd International Association for Feminist Economics (IAFFE) Conference and as a speaker at a conference on Taxation Without Borders organised by the University of Gothenburg in October 2024, where they discussed the OECD solution for taxing the digital economy and other alternatives like DSTs and revenue implications.

In August 2024, the Centre, together with UNDP, organised a workshop for Angola on the taxation of the digitalised economy.  

During the 57th Session of the Human Rights Council in September 2024, the South Centre made a statement on ‘Realizing the right to development: The case for a United Nations Framework Convention On International Tax Cooperation’, highlighting the possible content of protocols to the United Nations Tax Convention for taxing illicit financial flows and digital services.

The SCTI published reports on how the two early protocols for the UN Framework Convention on International Tax Cooperation (FCITC) could be structured and the potential areas of priority. In December 2024, the South Centre published a policy brief titled ‘Towards a UN Protocol for Taxing Cross-Border Services in a Digitalized Economy’, which was first published in November 2024 as a Think20 (T20) Brasil Road map.  

Multiple news channels and agencies regularly solicit the South Centre’s views on the concerns of the developing countries in international tax negotiations on the taxation of the digital economy.

Sustainable development

The South Centre has delved into the interplay between digital technologies and development on several occasions through its research outputs. In 2006, it published an analytical note titled Internet Governance for Development, arguing that affordable access to the internet allows for better education opportunities, greater access to information, improved private and public services, and stronger cultural diversity. More specifically, the document provided recommendations on issues such as openness (e.g. leaving policy space open for developing countries), diversity (e.g. multilingualism), and security (e.g. funding of computer security incident response teams (CSIRTs)) to maximise the outcomes of discussions for developing countries at the Internet Governance Forum (IGF).

A year later, the South Centre published the research paper Towards a Digital Agenda for Developing Countries, which looks into the conditions, rights, and freedoms necessary for developing countries to benefit from digital and internet resources. By bringing together several different strands of ongoing discussions and analyses at the national and international levels, it provides a direction for further research and policy analysis by laying the groundwork and creating awareness of the relevance and scope of digital and internet content for policymakers in developing countries.

In 2020, the South Centre continued to research the impact of digital technologies in the context of development. Its research paper, The Fourth Industrial Revolution in Developing Nations: Challenges and Roadmap, tackles trends in emerging technologies such as big data, robotics, and the IoT, and identifies challenges, namely, the lack of infrastructure, a trained and skilled workforce, scalability, and funding faced by developing countries. It goes on to propose a strategic framework for responding to the fourth industrial revolution, which focuses on capacity building, technology incubations, scientific development, and policymaking.

Discussions towards the adoption of the GDC had been included as one of the proposals made by the United Nations Secretary-General in his report Our Common Agenda (A/75/982). The main objective of this proposal was ‘to protect the online space and strengthen its governance’ based on ‘shared principles for an open, free and secure digital future for all’. The issue of digital governance is quite complex and includes the need to reaffirm the fundamental commitment to connecting the unconnected, avoiding fragmentation of the internet, providing people with options as to how their data is used, applying human rights online, and promoting the regulation of AI. 

The need to guarantee the implementation of human rights online required discussions leading towards the GDC to be conducted with utmost transparency, public disclosure, and accountability. Likewise, the private IT sector must respect human rights, apply human rights due diligence and increased accountability, and allow broader oversight from the state and civil society. In some instances, public-private partnerships (PPPs) can be a useful tool to support an inclusive digital transformation, but public participation and oversight of PPPs, guided by strong principles of transparency and the protection and respect for human rights, are necessary to support the transfer of technology, skills, and knowledge needed to promote inclusive digital transformation. The South Centre was actively engaged with other partners to strengthen multilateralism in this process and to limit the detrimental impacts of multistakeholderism in global governance.

The South Centre combines expertise in global matters of governance in the discussion of the GDC to strengthen multilateralism through an intergovernmental process that protects the voices of developing and least developed countries. We prepared a submission to the GDC on applying human rights online. 

In 2020 and 2021, SouthViews on Technology and Inequality: Can We Decolonise the Digital World?, on Digital Transformation: Prioritizing Data Localization, and An Introduction to the UN Technology Bank for the Least Developed Countries were also published.

For developing countries, the priority continues to be the bridging of the digital divide and strengthening capacities to harness new technologies and connectivity by upgrading infrastructure, skills, and education. Policies and regulatory frameworks must be context specific, such as on data privacy and data flows, and adaptable in light of the rapid pace of technological change, including generative AI and its effects. At the UNGA, there is continued discussion on the future of AI governance, with one resolution on AI safety being adopted in May 2024, led by the United States, and another resolution on international cooperation on AI being under negotiation, led by China (later adopted in July). The South Centre provided analysis on the first resolution of the UNGA on Artificial Intelligence, as well as, the second resolution of the UNGA on Artificial Intelligence, focused on enhancing international cooperation for capacity-building on AI.

The discussions leading up to the GDC highlighted the digital divide and the need for an inclusive and equitable digital future. Developing countries’ access to digital technologies for education, health, agriculture, and other activities is crucial for their development. Robust national policy space is needed to regulate the digital economy.

As part of the preparations for the adoption of the GDC and the Summit of the Future, the South Centre underscored the importance of addressing the digital divide and ensuring that the benefits of digital transformation are shared equitably. The Centre has strongly warned about the implications of a multistakeholder approach to digital governance, as it may not sufficiently recognise developing countries’ diverse needs and interests. It continues to favour developing countries’ access to digital technologies and data, as well as robust policy space to regulate the digital economy.

TheSouth Centre gave inputs on the third revised draft of the GDC. The Centre also published an article that considered some of the shortcomings of the Zero Draft of the GDC, particularly in attaining equitable international data governance and democratic participation in a digital multistakeholder scenario to avoid data monopolies and ensure inclusive policymaking processes, while recentring the objectives of internet governance for inclusive and development-oriented information societies. The Centre also published a research paper on the Pact for the Future and organised a dialogue with the G77 and China on the Summit of the Future, to analyse and share ideas on the risks and opportunities for developing countries.

The Centre engaged in collaborations to further its digital development agenda. At the IT for Change side event during the CSTD Working Group on Data Governance and AI, the Centre contributed insights into how governance structures can address the digital divide, supporting inclusive and equitable development across the Global South. 

Digital tools

The South Centre has general and specific email lists and is moving to become a paperless organisation. To subscribe to our email lists, please visit our main website or contact us. 

Future of meetings
Since the COVID-19 pandemic, the South Centre has continued to hold occasional virtual meetings and webinars. To learn more about these events, please visit: https://www.southcentre.int/category/events/the-south-centre-events; https://taxinitiative.southcentre.int/event/; https://ipaccessmeds.southcentre.int/event/. 

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