Must redesign global financial institutions, restructure debt to achieve SDGs in Global South: Amitabh Kant at CII Partnership Summit

Noting that numerous countries in the Global South are spending more money on their debt interest payment than on critical sectors like education and healthcare, Mr Amitabh Kant, India’s G20 Sherpa, said that there is a need to entirely restructure debt for the Global South to achieve the Sustainable Development Goals (SDGs). He was speaking at the session on ‘Development Through South-South Collaboration’ at the 29th CII Partnership Summit, organised by the Confederation of Indian Industry (CII), in partnership with the Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry in New Delhi on 3 December.

He also noted that a large share of global growth is expected to come from emerging markets for the next three decades and underlined the need to redesign financial institutions to serve the needs of the Global South.

Mr Kant called for the Global South to work together as it will continue to be a key driver of global growth. “The only way the Global South will grow, expand and progress is through technology. India has demonstrated this by technologically pole-vaulting through the Digital Public Infrastructure (DPI). The important thing about DPI is that it is open source, open API and globally interoperable. The data belongs to the citizen, not monopolized by big tech,” he said. Mr Kant also sought credit rating of companies based on their greenhouse gas emissions, as large companies account for a substantial share of such emissions.

H.E. Dr Rithi Pich, Secretary of State (Deputy Minister), Ministry of Commerce, Kingdom of Cambodia noted that South-South cooperation has evolved to become a critical mechanism to address unique challenges that developing nations face due to differences in resources, technology and infrastructure. “By fostering trade and national and global integration, we would be able to create inclusive and sustainable economic opportunities to counteract global economic and trade uncertainties,” he added.

H.E. Mr Minn Minn, Deputy Minister of Commerce, Republic of the Union of Myanmar said, “Bridging the divide demands coordinated and concrete action. South-South cooperation provides a pathway for developing nations to share resources, knowledge and innovative solutions to our unique context,” he said. He also reiterated Myanmar’s commitment to regional integration.

H.E. Mr Indra Mani Pandey, Secretary General, Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) highlighted the role and importance of regional organizations for realizing development through South-South cooperation. He said that there are ample opportunities for the Indian and global business communities to contribute to regional cooperation through intra-regional trade, investment, travel and tourism, and the development of infrastructure.

Dr Vikramjit Singh Sahney, Member, Rajya Sabha, India and Chairman, Sun International Limited noted that this century belongs to the South-South and called for expanded trade. He highlighted five ‘Fs’ that should define the South-South partnership, namely, food, fuel, fertilizers, freight and the future.

Noting that developing countries often face similar socio-economic challenges including poverty, health crises and environmental degradation, Mr Periasamy Kumaran, Special Secretary (ER & DPA), Ministry of External Affairs, Government of India highlighted India’s developmental aid through lines of credit and grants, across sectors such as agriculture, skill development, healthcare and so on. He suggested that developing countries must unite on international platforms to strengthen their negotiating power including in trade and climate finance.

Mr Robert Appelbaum, Executive Consultant, Webber Wentzel, South Africa said that South Africa noted that the South-South partnership needs to be about more than just procurement; it has to be a working partnership rather than a one-way trade. He gave the example of India’s support for vaccine supply during Covid.

Lauding the collaborative approach of the Indian Government with its regional neighbours, its economic reforms and economic and political ties across borders, Mr Nicholas Smedley, Chairman, FINDI, Australia said that these factors have allowed for the strong growth in services, manufacturing and construction sectors across the region. He said that India is uniquely positioned because of its geography, resources, a young and driven workforce.

Talking about promoting the sustainability factor in businesses, Mr Anil Kumar Jain, Chief Executive Officer, Matrix, said that the need of the hour is to work on cooperation, transfer of technology and promoting local manufacturing.

Mr Sunil Kant Munjal, Past President, CII and Chairman, Hero Enterprise said that there is an opportunity for countries in the South to work together, learn, share ideas, build institutions, create development and prosperity, and work with the developed world to create a better world for all humanity

New Delhi

3 December 2024