It will not burden the needy countries with debt in the name of development finance, PM said
New Delhi:
Prime Minister Narendra Modi on Saturday proposed the creation of a human-centric “Global Development Compact” for the Global South to facilitate trade, sharing of technologies and concessional financing based on India’s growth journey, in a move that came amid concerns over many countries falling into the Chinese ‘debt trap’.
The needy countries will not be burdened with debt in the name of development finance, PM Modi said announcing the new initiative at the third India-hosted virtual Voice of the Global South Summit.
PM Modi said the ‘Compact’ will be in line with the priorities of developing countries even as he urged the Global South to work unitedly in confronting food and energy security crises and the challenge of terrorism and extremism.
India hosted the third edition of the summit in sync with its commitment and priorities for the Global South or the developing countries.
“I would like to propose a comprehensive ‘Global Development Compact’ on behalf of India. The foundation of this Compact will be based on India’s development journey and experiences of development partnership,” PM Modi said at the closing session of the Summit.
“It will be human-centric, and multi-dimensional for development and will promote a multi-sectoral approach. It will not burden the needy countries with debt in the name of development finance,” he said.
The summit was joined by 123 countries including heads of state and government of 21 nations. A total of 34 foreign ministers attended the deliberations while 118 other ministers also joined other ministerial sessions, according to External Affairs Minister S Jaishankar.
Head of Bangladesh’s interim government Mohammad Yunus, Prime Minister of Bhutan Tshering Tobgay, his Nepalese counterpart KP Sharma Oli, Sri Lanka President Ranil Wickremesinghe, Mauritian Prime Minister Pravind Jugnauth were among those who attended the summit.
Top leaders of Belarus, Chile, El Salvador, Ethiopia, Fiji, Grenada, Guyana, Lao PDR, Marshall Islands, Mongolia, Oman, Suriname, Tajikistan, Timor Leste, Uruguay and Vietnam also joined the deliberations.
In his address, PM Modi said the ‘Compact’ will help in the balanced and sustainable development of 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.
“To strengthen trade promotion activities, India will start a special fund of 2.5 million dollars. Training will be provided in trade policy and trade negotiation for capacity building,” he said.
A fund of USD one million will be provided for this, PM Modi said.
At a media briefing, S Jaishankar said a range of issues including climate change, debt burden, challenges of new technologies, the situation in Gaza and the need for reform of the multilateral institutions figured in the deliberations.
Some of the leaders also talked about sovereignty, strategic autonomy and interference and expressed concerns in that regard, he said.
To a question, S Jaishankar said China and Pakistan were not invited to the summit.
In his remarks, the prime minister also said that the solution to various conflicts and tensions around the world lies in inclusive global governance.
“You have also raised concerns related to tensions and conflicts. This is a serious issue for all of us. The solution to these concerns depends on just and inclusive global governance,” PM Modi said.
“Steps should be taken to reduce the gap between the Global North and the Global South. The Summit of the Future to be held in the UN next month can become an important milestone for all this,” he said.
In his address at the opening session of the summit, PM Modi called on the Global South to work unitedly in dealing with food and energy security crises and challenges of terrorism, amid concerns over the consequences of “uncertainties” across the world.
PM Modi said India will make an initial contribution of USD 25 million to the ‘Social Impact Fund’ that aims to develop digital public infrastructure (DPI) in the Global South.
There has been an “atmosphere of uncertainty” around the world and it has not yet fully come out of the impact of the COVID-19 pandemic, he said adding new challenges to development are being faced due to wars.
“We are already facing the challenges of climate change, and now there are also concerns about health security, food security, and energy security,” he said.
“Terrorism, extremism and separatism remain a serious threat to our societies. Technology divide and new economic and social challenges related to technology are also emerging,” he said.
The prime minister said the global governance and financial institutions formed in the last century have been unable to fight the challenges of this century.
“It is the need of the hour that the countries of the Global South unite, stand together in one voice and become each other’s strength. Let us learn from each other’s experiences,” PM Modi said.
“Let us share our capabilities. Let us together take our resolutions to fruition. Let us together get recognition for two-thirds of humanity,” he noted.
In the last few years, India has been positioning itself as a leading voice, flagging concerns, challenges and aspirations of the Global South or the developing nations, especially the African continent.
As the G20 president last year, India focused on issues like inclusive growth, digital innovation, climate resilience, and equitable global health access with an aim to benefit the Global South.
The prime minister also elaborated on the importance of cooperation in the area of DPI.
“The contribution of Digital Public Infrastructure that is DPI, in inclusive development is no less than a revolution. The Global DPI Repository, created under our G-20 presidency, was the first ever multilateral consensus on DPI,” he said.
“We are happy that agreements have been signed to share the ‘India Stack’ with 12 partners from the Global South. To accelerate DPI in the Global South, we have created a Social Impact Fund. India will make an initial contribution of USD 25 million to it,” he said.
PM Modi also listed various frameworks for cooperation with the Global South.
“In the last few years, our cooperation has been boosted in areas of infrastructure, digital and energy connectivity,” PM Modi said.
PM Modi highlighted the priority India attached towards the Global South during its G-20 presidency.
“In 2022, when India assumed the G-20 presidency, we had resolved that we would give a new shape to the G-20. The Voice of Global South Summit became a platform where we openly discussed the problems and priorities related to development,” he said.
PM Modi said India prepared the G-20 agenda based on the hopes, aspirations and priorities of the Global South and took forward the grouping with an inclusive and development-focused approach.
“The biggest example of this was the historic moment when the African Union assumed permanent membership in the G-20,” he said.
In a significant milestone under India’s G20 presidency, the African Union became the new permanent member of the grouping in the first expansion of the influential bloc since its inception in 1999.
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)
