India slams China at UN over debt traps, calls for transparent financing

India has called for transparent and equitable financing and warned against the dangers of unsustainable financing that leads to a vicious cycle of debt traps, in a veiled attack on China.

At a recent United Nations Security Council (UNSC) open debate on 'Maintenance of International Peace and Security: Promoting Sustaining Peace through Common Development', India called for transparent and equitable financing and warned against the dangers of unsustainable financing that leads to a vicious cycle of debt traps. The statement was seen as a veiled attack on China, which has been accused of using debt-trap diplomacy to expand its influence.

Reforms in International Financial Institutions

India's Counsellor in the Permanent Mission to the UN, R Madhu Sudan, emphasized the need for reforms in international financial institutions to ensure equitable financing and avoid debt traps. He noted that peace and development are elusive when resource crunch continues to exist, and highlighted India's efforts in various fora, including its current G20 presidency, to push for these reforms.

Avoiding Unsustainable Financing and Hidden Agendas

Madhu Sudan stressed the importance of avoiding unsustainable financing and being vigilant against hidden agendas in unviable projects. He pointed out that the international community struggled to address issues such as vaccine apartheid during COVID-19 and rising inflation of food, fuel, and fertilizers, which disproportionately affect the Global South. He emphasized the need for representation and a voice for the Global South in decision-making processes.

India's Warning to Indian Ocean Region Countries

India has been urging countries in the Indian Ocean region to be cautious of hidden agendas in unviable projects and unsustainable debt, in an apparent reference to China's alleged debt trap diplomacy. External Affairs Minister S Jaishankar, speaking at the 23rd Council of Ministers Meeting of the Indian Ocean Rim Association, emphasized the need to maintain vigil against such practices.

Need for a Reformed Multilateralism

India underscored the importance of a sustained and reformed multilateralism to create a UN that meets the aspirations and needs of the 21st century. Madhu Sudan called for choosing peace, cooperation, and multilateralism to build a collective future free from wars, conflicts, terrorism, and emerging threats. He emphasized the need to expand both categories of membership of the Security Council to make it more representative and effective.

Maintaining International Peace and Security

Madhu Sudan reiterated that maintaining international peace and security is a key mandate of the UN Security Council. He emphasized that peace is multi-dimensional and should not be solely linked to common development. While recognizing the interdependence of the UN system's three pillars—peace and security, development, and human rights—he cautioned against the Security Council assuming all these functions.

Focus on Sustainable Development Goals

India stressed the importance of remaining focused on the Sustainable Development Goals (SDGs) and avoiding cherry-picking or diluting the agenda. Madhu Sudan highlighted the recent SDG Summit, which emphasized the need for accelerated progress towards achieving the goals by 2030. He called for transformative and accelerated actions to address the concerning trend of faltering progress on the SDGs.

India's statement at the UN Security Council reflects its concerns over unsustainable financing and debt traps, particularly in light of China's growing influence through its Belt and Road Initiative. By calling for transparent and equitable financing, reforms in international financial institutions, and a focus on sustainable development, India seeks to promote a more just and balanced global order.