In a significant step toward strengthening the ties between Global South nations, Prime Minister Narendra Modi has proposed the creation of a comprehensive “Global Development Compact.” Announced during the closing session of the Voice of Global South Summit, this initiative seeks to foster human-centric, multi-dimensional, and multi-sectoral development across the Global South, grounded in India’s experiences and development journey.
Global Development Compact
Why In News
- In a significant step toward strengthening the ties between Global South nations, Prime Minister Narendra Modi has proposed the creation of a comprehensive “Global Development Compact.” Announced during the closing session of the Voice of Global South Summit, this initiative seeks to foster human-centric, multi-dimensional, and multi-sectoral development across the Global South, grounded in India’s experiences and development journey.
A Vision For The Global South
- Global Development Compact, as envisioned by Prime Minister Modi, aims to provide development assistance without the burden of debt that often accompanies traditional finance mechanisms.
- The focus will be on sustainable, balanced development, catering to the needs and priorities set by the countries of the Global South themselves.
- This approach is a departure from the conventional models of development finance, which can lead to significant financial stress for recipient countries.
- Under this compact, India plans to focus on several key areas, including trade for development, capacity building for sustainable growth, technology sharing, project-specific concessional finance, and grants.
- These initiatives are designed to help Global South nations achieve their development goals in a manner that is both equitable and sustainable.
Creation Of A US$2.5 Million Fund
- To support the goals of the Global Development Compact, Prime Minister Modi in his closing remarks announced the creation of a special fund of US$2.5 million.
- This fund will be used to boost trade promotion activities, a crucial aspect of the compact’s framework. India will also provide training in trade policy and trade negotiations to build capacity in these areas, allocating an additional US$1 million for this purpose.
- India’s commitment to the Global South is further demonstrated by its participation in the SDG Stimulus Leaders Group.
- This group focuses on addressing financial stress and development funding challenges in countries across the Global South, ensuring that the compact’s vision is realized in practical terms.
Focus On Health And Agriculture
- Health and agriculture are among the priority areas identified under the Global Development Compact. Prime Minister Modi highlighted India’s role in making affordable and effective generic medicines available to Global South nations. Furthermore, India will provide support for the training of drug regulators, ensuring that these countries can maintain high standards in their healthcare systems.
- In agriculture, India plans to share its experiences and technology in “natural farming,” a sustainable agricultural practice that can contribute to food security and environmental protection. This initiative aligns with the broader goals of the compact, which emphasize sustainability and self-reliance in key sectors.
Addressing Global Challenges
- External Affairs Minister S Jaishankar, in his remarks during the summit, emphasized the need for strengthening economic resilience, addressing climate change, revitalizing multilateralism, and democratizing digital transformations. These themes are crucial for achieving the Sustainable Development Goals (SDGs) and advancing global progress, particularly for nations in the Global South.
- Jaishankar underscored the importance of reliable and resilient supply chains, a lesson learned from the COVID-19 pandemic and other global crises. He also highlighted the need for diversification in production to reduce risks in the international economy.
- On climate change, Jaishankar called for collective action among Global South nations to secure low-cost financing and access to critical technologies. He noted that during India’s G20 Presidency, the country worked to highlight the importance of Just Energy Transitions, a concept that seeks to balance environmental goals with economic and social needs.
Revitalizing Multilateralism
- Jaishankar also addressed the challenges facing multilateral organizations, noting their obsolescence and polarization in the face of global crises. He advocated for reformed multilateralism and the reform of Multilateral Development Banks, emphasizing the need for the Global South to make its case for change.
- Digital transformation was another key theme in Jaishankar’s address. He emphasized the importance of democratizing digital technologies, noting that India’s experience with Digital Public Infrastructure could serve as a model for other Global South nations.
Looking Ahead
- As the summit concluded, Prime Minister Modi urged the Global South to continue working together to address common challenges. He highlighted the upcoming UN Summit of the Future as an important platform for Global South nations to raise their issues and push for inclusive global governance.
- In proposing the Global Development Compact, India is positioning itself as a leader in fostering cooperation and sustainable development across the Global South.
- With a focus on human-centric development and a commitment to addressing the unique challenges faced by these nations, the compact represents a significant step forward in advancing global progress and ensuring a more equitable world.
