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Introduction Since the industrial revolution and the beginning of this century developed countries dominate the trade flows and trade relations. Throughout this period, developing countries have been dependent on its larger and more affluent counterparts, because almost all their exports come there. However, only the last few years, these countries have found a new and rapidly growing group of customers - each other! So the subject of my presentation is this “new geography” that indicates loss of global power for developed countries and the win of developing.

I should also mention that I mostly used statistics only up to 2008 because in 2009 there was a deviation from trend which actually is taking place. But there is also more recent statistic.

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So, let’s get started with looking on the development of two major components of world trade: South-South and North-North that relates to the developing world and developed world correspondingly.

With the exception of crisis in the late 1990s in emerging markets, since the beginning of the 1990's South-South trade has expanded faster than North-North trade (trade between the rich or developed countries). It is interesting to note that in 1980s it grew more slowly than North-North trade - mainly due to slower economic growth in much of the developing world. Since 2003, South-South trade actually went up sharply, and its volume increased more than four times: from less than $ 1 trillion to 4.6 trillion by 2008.

Having reached in 1990 s quite respectable average growth rate of 8%, the annual South-South trade has gained momentum, and for the first 9 years of the 21 century, its growth rates have soared to 24%. In unprecedented in modern world history decade, the share of developing countries in world trade has increased from 6,9% in 1999 to 18,2% in 2008. This is startling dynamics, considering that during the same period, the growth of North-North trade has remained very stable and averaged 8%. If in the future South...