From India to the Global South (GS Paper 2, IR)
Context
- Prime Minister Narendra Modi’s introduction of the “Development Compact” at the Third Voice of the Global South Summit (VoGSS) marks a significant initiative to strengthen South-South cooperation.
- The compact aims to enhance collaboration through capacity building, technology sharing, trade, grants, and concessional finance.
- This effort reflects a broader strategy to rebalance international engagement and address the systemic challenges faced by developing countries.
What is the Global South?
Definition and Origin:
- Coined Term: The term “Global South” was introduced by American academic Carl Oglesby in 1969. It refers to countries historically marginalized by the economic and political dominance of the Global North.
- Geographical Scope: The Global South encompasses regions in Latin America, Asia, Africa, and Oceania, which are generally low-income and politically or culturally marginalized.
- Economic Divide: The Brandt Line, proposed by Willy Brandt in the 1970s, visualizes the economic divide between the rich Global North and the poor Global South, encircling the globe at approximately 30° North latitude.
Leading Proponents:
- China and India: Both nations are prominent advocates of the Global South, seeking to elevate the voice and interests of these countries on the global stage.
The Voice of the Global South Summit (VoGSS)
Purpose and Philosophy:
- India’s Initiative: VoGSS is an India-led initiative aimed at uniting Global South countries to share perspectives and priorities on common issues.
- Philosophy: The summit reflects India’s philosophy of Vasudhaiva Kutumbakam (“One Earth, One Family, One Future”) and aligns with Prime Minister Modi’s vision of inclusive development.
Need for VoGSS:
- Global Challenges: The developing world faces severe impacts from global issues such as the COVID-19 pandemic, the Ukraine conflict, debt crises, and food and energy security challenges.
- Inadequate Platforms: Existing international platforms have often failed to address these concerns adequately, prompting the need for a dedicated forum for the Global South.
Introduction to the Development Compact
Key Modalities:
Components: The Development Compact proposed by Modi includes:
- Capacity Building: Enhancing skills and institutional capabilities.
- Technology Sharing: Facilitating access to and dissemination of technological innovations.
- Trade for Development: Promoting trade practices that support developmental goals.
- Grants and Concessional Finance: Providing financial support with favorable terms to aid development.
Objective:
- Rebalancing Engagement: The compact seeks to create a new baseline for South-South engagement, addressing systemic indebtedness and improving the terms of international cooperation for developing countries.
Debt Crisis in the Global South
Current Situation:
- Indebtedness: Developing countries face significant debt burdens, with UNCTAD reporting a public debt of $29 trillion in 2023 and net interest payments totaling $847 billion.
- Ongoing Commitments: OECD countries have not met key commitments, such as the 0.7% Gross National Product (GNP) target for Official Development Assistance (ODA) or the $100 billion climate change financing pledge.
Impact:
- Need for Reform: The debt crisis highlights the urgent need for a more equitable international framework that prioritizes development and addresses existing imbalances.
Revisiting Development in the Global South
Historical Context:
- Global Policies: Historical economic policies, particularly those influenced by Reaganism, Thatcherism, and the creation of the World Trade Organization (WTO), have marginalized developing countries.
- Economic Disadvantages: Economists like Raúl Prebisch have argued that the global economic system disadvantages peripheral nations, reinforcing the need for alternative development pathways.
VoGSS Vision:
- Development Focus: The summit offers a platform to reintroduce development into global policy discourse, promoting growth, social inclusion, and environmental sustainability.
Sharing Development Experiences and Innovations
India’s Contributions:
- Sustainability: India’s “Lifestyle for Environment” (LiFE) initiative promotes sustainable living.
- Health Security: The “One World, One Health” framework enhances global health security.
- Disaster Resilience: India’s experience in disaster management provides valuable lessons for other nations.
- Financial Inclusion: India’s Digital Public Infrastructure (DPI) and efforts in education and capacity building are presented as models for the Global South.
Institutional Frameworks:
- DAKSHIN: The Global South Centre of Excellence (DAKSHIN) aims to facilitate knowledge exchange, skills development, and inclusive strategies tailored to the Global South’s unique challenges.
New Initiatives to Strengthen the Global South
Funding and Support:
- Capacity Building Fund: $2.5 million special fund.
- Trade Policy Training: $1 million allocation.
- Social Impact Fund: $25 million committed to improving policy impact analysis and trade performance.
Annual Assistance:
- Financial Aid: India’s annual financial assistance to partner countries in the Global South is estimated at $7.5 billion.
A Call for Global South Unity
Prime Minister Modi’s Vision:
- Unity and Collective Action: Modi emphasizes the importance of unity within the Global South to address common challenges and propose global solutions.
Challenges and Criticisms:
- Geopolitical Competition: India faces competition from China, particularly in infrastructure development through the Belt and Road Initiative (BRI).
- Food Security Issues: India’s restriction on rice exports in July 2023 has been criticized as inconsistent with its leadership role.
- Pharmaceutical Standards: Recent controversies over substandard medicines from India highlight the need for maintaining high standards in pharmaceutical exports.
- Domestic Development: Critics argue that India should address internal development issues before leading others.
Future Prospects:
- Inclusive Leadership: The VoGSS and the Development Compact represent efforts to foster a more equitable international framework and promote collective development within the Global South.
