|
Countries of the Global South should use their collective economic strength to protect their interests against unilateral actions by major global powers and secure greater influence in areas such as trade, climate finance and technology transfer, Principal Secretary-2 to the Prime Minister, Shaktikanta Das said.
Addressing the launch of the India and Emerging Economic Order Forum (IEOF), jointly set up by the Delhi School of Economics and Research and Information System for Developing Countries (RIS), on Tuesday, Das said individual developing countries often have limited influence in international economic negotiations, but their collective voice could become a powerful force. Greater cooperation among global South nations can enhance their bargaining power in areas such as trade, climate finance, technology transfer, supply chain integration, and reform of the global financial institutions, Das said. These countries can use their collective voice at various global platforms to protect their interest vis-a-vis unilateral action by large global powers, he added. Das said the economic centre of gravity of the world was shifting eastwards while the Global South was steadily increasing its footprint in the global economy and geopolitics. He said these shifts would have a lasting impact on global business and trade. He noted that emerging market and developing economies had expanded their combined economic output from about USD 7.3 trillion in 2000 to over USD 48.8 trillion in 2025. However, Das flagged poverty, debt vulnerabilities, infrastructure gaps, climate change, food and energy insecurity and limited access to technology as continuing challenges for developing economies. He also pointed to rising protectionism and growing difficulties in accessing major consumer markets and technologies. Calling job creation one of the most pressing challenges, Das proposed a three-pronged approach comprising investment in physical infrastructure and human capital, a transparent and business-friendly regulatory and legal environment, and mobilisation of private investment for innovation, industrialisation and employment. He also called for greater trade diversification and deeper participation in global supply chains as developing countries face increasing tariff and trade barriers. On energy security, Das said the recent conflict in the Middle East had highlighted the vulnerability of energy-importing developing economies to price shocks. He said diversification towards renewable energy and biofuels, along with greater technology and knowledge sharing, could strengthen energy security. Turning to India, Das said the economy remained resilient, supported by domestic demand, industrial and services activity and improving labour market conditions. He also said India needed to reduce its dependence on imported oil and gas and highlighted the government's National Offshore Exploration in Deep Waters programme to boost domestic hydrocarbon exploration. Das also advocated deeper local-currency financing through bond markets, stronger financial infrastructure and regulatory reforms, saying these could improve economic resilience and reduce external vulnerability. He cited India's government securities market and growing corporate bond market as areas from which other developing economies could draw lessons. His remarks come weeks after India hosted the 18th BRICS Summit in New Delhi on September 12-13, where strengthening the voice of the Global South and reforming global governance were among the central themes. The New Delhi Declaration adopted at the summit called for a more representative and fairer international order and a reformed multilateral system, while BRICS leaders committed to strengthening economic, financial and development cooperation. (ANI)
|
