admin The Global South holds the potential to spearhead two-thirds of global economic growth, but to achieve this, a paradigm shift in resource allocation from developing to developed nations is imperative, asserted India’s G20 Sherpa, Amitabh Kant, during the B20 Summit organised by the Confederation of Indian Industry (CII) in Delhi on August 25.
Role of the Global South
Kant emphasised that a pivotal transformation lies in altering the course of resources from affluent nations to those in need. He called upon multilateral development banks to significantly increase their indirect lending to countries in the Global South, characterising it as the linchpin of this change. He noted that financial institutions possess substantial funds, stressing the urgency of redirecting these resources to foster growth.
In his address, Kant underlined that an estimated two-thirds of global economic expansion hinges on the Global South’s accessibility to resources. He pointed out the prevailing imbalance in international financial institutions, which currently disproportionately favour developed nations. Kant underscored the irony of resources predominantly flowing from developing nations to developed ones, outlining the necessity for a comprehensive reconfiguration of the financial landscape.
Focusing on the Global Economy
Referring to the Global South as nations commonly identified as developing, underdeveloped, or less developed, Kant shed light on the economic ramifications of conflicts. He delineated the G20’s economic realm, distinguishing it from the political sphere governed by the United Nations (UN). Kant contended that while geopolitical tensions like the Russia-Ukraine war fall within the UN’s jurisdiction, their economic implications, ranging from food and fuel to fertiliser shortages, wield a profound influence on global economics.
The Road Forward
Discussing consensus-building within the G20, Kant elucidated the complexities of reconciling diverse stages of development among member countries. He revealed a significant consensus achieved in advocating sustainable lifestyles, an initiative poised to yield a substantial 30 percent reduction in greenhouse gas emissions, according to the International Energy Agency (IEA).
Kant’s G20 presidency vision for India prioritises robust, sustainable, inclusive, and balanced growth. He emphasised the imperative of combating protectionism, particularly given the historical pattern of six years of protectionist policies post-pandemics, as he articulated the role of free trade in lifting people out of poverty.
Against the backdrop of a world grappling with recessions, debt crises, and geopolitical tensions, Kant highlighted the unique challenges of India’s G20 presidency. Notably, he called attention to the dire impacts of the ongoing Ukraine-Russia conflict, as well as the post-COVID era’s sobering statistics, including 200 million people slipping below the poverty line and 100 million job losses. In essence, Kant’s compelling address rallied for a transformative resource redistribution to fuel the Global South’s ascendancy as a cornerstone of global economic expansion, propelling inclusive growth and resilience across nations.
Magazine 
