Indian Express Editorial Summary

Editorial Topic : India’s Development Compact for Global South

 GS-3 Mains Exam : Economy

Revision Notes

Concept of Development Compact:

• Introduced by PM Modi at the Third Voice of Global South Summit (VoGSS).
• Focuses on five modalities of engagement:
  1. Capacity Building
  2. Technology Sharing
  3. Trade for Development
  4. Grants
  5. Concessional Finance (most important)
• Aim: Harmonise these modalities to reinforce each other for the Global South’s development.
• If successfully implemented, India’s Development Compact would provide a new engagement model for the Global South.

The State of Global South:

• Indebtedness crisis:
  • Developing countries’ public debt in 2023: $29 trillion.
  • Net interest payments on public debt: $847 billion.
• Debt crisis worsened by:
  • Failure of OECD countries to meet the 1970 UN target of 0.7% GNP as Official Development Assistance (ODA).
  • Unmet commitment on climate change finance for $100 billion.

Steps for Global South:

• Revisit development fundamentals to evolve new growth paths.
• Mutual sharing of policy experiences and development insights is crucial.
• VoGSS promotes a southern narrative focused on experiences and aspirations of the Global South.

India’s Development Initiatives for Global South:

1. Sustainability:
   • Focus on Lifestyle for Environment (LiFE), re-energising SDGs, and promoting renewable energy (rooftop solar panels, solar farms).
2. Promoting Health Security:
   • “One World One Health” as a guiding principle.
   • Arogya Maitri initiative: India’s assistance to Africa and Pacific Islands by building hospitals and Jan Aushadhi Kendras.
3. Humanitarian Crises Response:
   • India’s role as a first responder in Papua New Guinea, Kenya, Gaza, and Ukraine during crises.
4. Financial Inclusion:
   • Through UPI and Digital Public Infrastructure, enabling last-mile connectivity.
5. Education and Skill Building:
   • Focus on strengthening interlinkages in education, skills, and capacity-building initiatives.

Institutional Frameworks:

• Institutional frameworks are key for sharing India’s development experiences with the Global South.
• Global South Centre of Excellence (DAKSHIN): Launched by India for knowledge sharing, experience promotion, and skill development.
• These institutions facilitate a two-way flow of knowledge and experiences.

Other Dimensions:

• Policy Impact Analysis and Trade Performance remain weak links in the Global South’s development.
• Special fund for capacity building:
  • $2.5 million for development programs.
  • $1 million for training in trade policy making.

Way Forward:

• Global South must unite to voice common concerns and develop positive global solutions.
• VoGSS is an important platform for discussing these issues, especially given the vulnerabilities faced by democratically elected governments worldwide.