This section presents strategic perspectives on advancing sustainable growth in developing countries by encouraging stronger engagement with the private sector. It introduces practical approaches and partnerships that contribute to job creation, expanded access to infrastructure, and the development of future-oriented industries. Through knowledge sharing and collaboration, this section aims to highlight how inclusive engagement with private actors can complement national development goals and support resilient, self-sustaining economic progress.
Compiled by: Kyoungshin Kim, KGGTF Consultant
South-South and Triangular Cooperation 2.0: A Strategic Model for Co-Creation and Localized Growth
Source: FAO & UNOSSC. (2025). “South-South and Triangular Cooperation Gateway Launch and Concept Note,” 29 May 2025.
As global development paradigms evolve, the importance of South-South and Triangular Cooperation (SSTC) has come into sharper focus, particularly as a platform for practical, peer-based learning and partnership-building.
At the 22nd High-Level Committee on South-South Cooperation held on May 29, 2025, the UN Food and Agriculture Organization (FAO) and the UN Office for South-South Cooperation (UNOSSC) launched the SSTC Gateway, a curated platform showcasing real-world SSTC cases such as school feeding policies and agricultural training initiatives.
More significantly, the event marked the release of the “SSTC 2.0” Concept Note, a strategic blueprint for modernizing development cooperation through inclusive, localized, and results-driven approaches.
Rebalancing Development: From Aid to Peer Partnership
For decades, traditional aid models were largely based on North-to-South transfers of capital and technology. In contrast, SSTC reframes development as a mutual learning process among developing countries, with triangular cooperation involving institutional and financial support from advanced economies and multilateral organizations.
SSTC 2.0 pushes this further by positioning middle-income countries, not just as beneficiaries or intermediaries, but as knowledge providers, contributing policy insights, institutional lessons, and implementation know-how drawn from their development journeys.
From Infrastructure to Institutions: The Pivot to Policy and Systems
Where once development cooperation centered on physical infrastructure, SSTC 2.0 signals a strategic shift toward “soft infrastructure”: institutional reform, policy design, and public-private partnership frameworks.
This pivot is particularly relevant in areas such as climate finance, digital transformation, and SME ecosystem development, domains where countries like Korea have accumulated practical models.
These experiences are not simply exported as fixed blueprints, but adapted and co-developed through local engagement, ensuring greater ownership and sustainability.
Localization, Co-Creation, and the Role of Trust
At the heart of SSTC 2.0 is a recognition that sustainable solutions must be context-sensitive. Rather than imposing a one-size-fits-all model, countries are encouraged to co-create tailored policies with local governments, civil society, and the private sector.
This trust-based collaboration enables the exchange of not only tools and expertise, but also of shared responsibility in implementing reforms that are deeply embedded in national priorities.
KGGTF as a Platform for Strategic Triangular Engagement
The Korea Green Growth Trust Fund (KGGTF) is uniquely aligned with the principles of SSTC 2.0. Over the past decade, KGGTF has supported World Bank operations in over 30 client countries by leveraging policy expertise in green growth, digital governance, carbon market development, and innovation-driven SMEs.
KGGTF’s programs are designed through partnership with the government, private companies, and research institutions. These engagements are not just project-based, but also aim to facilitate systemic transformations that enable inclusive growth and climate resilience.
Looking Ahead: Institutionalizing Practical Development Models
As SSTC 2.0 gains traction, KGGTF is well-positioned to serve as a strategic connector between developing countries and international development platforms.
Its role goes beyond technical assistance. It fosters practical, policy-based partnerships that generate jobs, support institutional capacity-building, and create enabling environments for long-term, market-based solutions.
In doing so, KGGTF contributes to a broader shift from aid dependency toward self-sustaining, knowledge-driven prosperity.