This research study proposes Development Compact as a theoretical and operational construct for SSC. Development Compact is visualised as providing an analytical structure to SSC philosophy of development cooperation that is composed of five distinct but very much interlinked components- capacity-building and skills transfer, concessional finance (grants and lines of credit), preferential trade, investment, and technical cooperation. It implicitly depends on the principle of ‘equitable accesses to trade, investment, and technology in SSC initiatives. Deployment of a broad portfolio of modalities allows for flexibility that makes it much more attractive and appropriate for partner countries in the South. Significantly, this ‘compact’ rests solidly on the concept of mutual gain.