PM Modi Unveils Human-Centric 'Global Development Compact' for Global South Growth

Prime Minister Narendra Modi proposed a human-centric Global Development Compact for the Global South to enhance trade, technology sharing, and concessional financing. This initiative aims to prevent countries from falling into debt traps, particularly those influenced by Chinese loans. Modi announced this at the third India-hosted virtual Voice of the Global South Summit.

Global Development Compact Proposal

Modi emphasised that the Compact would align with the priorities of developing nations. He urged the Global South to unite against food and energy security crises, terrorism, and extremism. "I would like to propose a comprehensive Global Development Compact on behalf of India," Modi stated at the summit's closing session. He added that the Compact would be human-centric and multi-dimensional, promoting a multi-sectoral approach without burdening needy countries with debt.

The summit saw participation from 123 countries, including heads of state and government from 21 nations. External Affairs Minister S Jaishankar noted that 34 foreign ministers and 118 other ministers attended various sessions. Leaders from Bangladesh, Bhutan, Nepal, Sri Lanka, Mauritius, Belarus, Chile, El Salvador, Ethiopia, Fiji, Grenada, Guyana, Lao PDR, Marshall Islands, Mongolia, Oman, Suriname, Tajikistan, Timor Leste, Uruguay, and Vietnam were among those present.

Focus on Sustainable Development

Modi highlighted that the Compact would support balanced and sustainable development in partner countries. "Under this Compact we will focus on trade for development, capacity building for sustainable growth, technology sharing, project-specific concessional finance and grants," he said. To bolster trade promotion activities, India will establish a special fund of $2.5 million and provide training in trade policy and negotiation.

During a media briefing, Jaishankar discussed various issues addressed at the summit. These included climate change, debt burdens, new technologies' challenges, the situation in Gaza, and the need for multilateral institution reforms. Some leaders also expressed concerns about sovereignty and strategic autonomy.

India's Commitment to Digital Public Infrastructure

Modi announced India's initial contribution of $25 million to a Social Impact Fund aimed at developing digital public infrastructure (DPI) in the Global South. He stressed that DPI's role in inclusive development is significant. "The contribution of Digital Public Infrastructure that is DPI in inclusive development is no less than a revolution," Modi said. Agreements have been signed to share India's digital frameworks with 12 partners from the Global South.

In his address at the opening session of the summit, Modi called for unity among Global South nations to tackle food and energy security crises and terrorism challenges amid global uncertainties. He noted that despite emerging from COVID-19's impact, new development challenges arise due to wars.

Strengthening Cooperation Among Developing Nations

Modi urged Global South countries to unite and support each other. "It is the need of the hour that the countries of the Global South unite," he said. "Let us learn from each other's experiences." He also highlighted India's efforts during its G20 presidency to focus on inclusive growth and digital innovation for developing nations.

India has positioned itself as a leading voice for the Global South in recent years. During its G20 presidency last year, India prioritised issues like inclusive growth and climate resilience to benefit developing nations. Modi mentioned that India's G20 agenda was shaped by the hopes and priorities of the Global South.

Significant Milestones Under India's G20 Presidency

A notable achievement under India's G20 presidency was the African Union's permanent membership in the G20. This marked the first expansion of the influential bloc since its inception in 1999. Modi highlighted this as an example of India's commitment to inclusive development during its G20 leadership.

In his remarks about global governance challenges, Modi stated that existing institutions formed last century are inadequate for today's issues. He called for just and inclusive global governance to address conflicts and tensions worldwide. "The solution to these concerns depends on just and inclusive global governance," he said.

Modi concluded by emphasising cooperation in areas like infrastructure and energy connectivity with the Global South. "In the last few years our cooperation has been boosted in areas of infrastructure," he noted. The summit underscored India's dedication to supporting developing nations through collaborative efforts and innovative solutions.

The article wraps up by highlighting India's ongoing commitment to addressing global challenges through unity and cooperation among developing nations.