Mr. N. Chandrasekaran,
Mr. Banerjee,
Dear Friends,
Namaskar. Good Morning.
It is a great pleasure to speak to you this morning on the role of the Global South in the Emerging World 2.0. Perhaps, it is useful to begin with the concepts in the title itself. Since 1945, we have seen a steady evolution in the global order that was established after the Second World War. It was initially more political, with decolonization and the independence of many nations. It gradually acquired stronger economic connotations, that were accelerated by globalization. As these fused increasingly with factors like technology, energy, resources, connectivity and human ingenuity, a different world started to emerge. That is obviously a continuous and unending process. It has also acquired greater cultural and social characteristics. Indeed, that the G20 was established is itself an acknowledgement of that direction.
2. However, it is an undeniable reality that the international system remains dominated by the Global North. This is naturally reflected in the composition of the G20 as well. Perhaps, this mattered less when the globalization process appeared to offer more opportunities. But as its iniquities became more apparent and the Covid pandemic took a horrific toll across the world, the need to focus on developing countries became more compelling. If that was not enough, the consequences of the Ukraine conflict for global energy, food and fertilizer security added to complexities. And obviously, trade disruptions, high interest rates and climate events have contributed additional factors of stress. The current focus on the Global South emanates from the conviction that these are countries deserving of special care. But equally, these are today societies under exceptional stress which, if left unaddressed, would become a serious drag on the world economy. Remember, globalization cuts both ways. Till now, the discourse has largely focused on its optimistic facets. But do consider what the implications are for all of us – North or South – of slowdowns in nutrition, health, education, employment or even security. And indeed, when the promise of digitization, connectivity or technology falls short.
3. When India assumed the G20 Presidency last December, we were acutely conscious that most of the Global South will not be at the table when we meet. This mattered very much because, as I have underlined, the really urgent problems are those faced by them. To discuss their concerns without providing a fair hearing appeared extremely unfair. And India, itself a part of the Global South, would not stand by and let that happen. Therefore, Prime Minister Narendra Modi decided to convene the Voice of The Global South Summit in January 2023. We heard from 125 nations directly about their challenges and priorities. And on their behalf, these have been made central to the G20 agenda.
4. Different aspects of these fundamental challenges have been discussed in the finance track and the sherpa track, or for that matter, the Ministerial streams and the engagement groups. And as a result, we have deliberated on the issues of debt and finance, sustainable development, climate action, food security and women-led development. The core mandate of the G20 is to promote economic growth and development and that cannot advance if the crucial concerns of the Global South in the areas I have highlighted are not addressed.
5. Having said that, let me step back and bring out some structural issues that today are at the heart of the predicament of the Global South. Key among them are the concentrations of various kinds created by the last three to four decades of globalization. For a variety of reasons that range from scale, subsidies, technology, human resources and strategic choices, the Global South was largely reduced to being a consumer rather than a producer. Their contribution very often was to provide resources for manufacturing elsewhere. They not only did not reap the benefits of economic change, but often, ended up saddled with unviable debts emanating from opaque initiatives. This was a gradually unfolding crisis in the making, that was rapidly accelerated by the multiple shocks of debt, Covid and conflict.
6. As a result, the endeavor now is to seek a re-globalization that is more diversified and democratic. Where there would be multiple centers of production, not just of consumption. And that is where business can make a crucial difference. We cannot be at the mercy any longer of a few suppliers, whose viability can come into question by unanticipated shocks. This was starkly apparent when it came to health during the Covid pandemic. But it pretty much applies to everything else as well. The compulsion to create more resilient and reliable supply chains is a really pressing one. Its counterpart in the digital domain is driven more by anxieties about trust and transparency. The volatility of the last few years has brought home to us the importance of strategic autonomy. We may talk about seeking a more just, equitable and participative global order. At the end of the day, that will only happen when we see the commensurate investment, trade and technology decisions.
7. Where India is concerned, our response to this situation is articulated in the goal of Atmanirbhar Bharat – self-reliant India. At its core is the ‘Make in India’ initiative, one that would not only focus on our own needs but those of others as well. It is paralleled by a strong commitment to make it easier to do business in India. At the same time, our infrastructure is being rapidly developed through the ‘Gati Shakti’ initiative. Since human resources are an increasingly vital ingredient in a knowledge economy, that too is being addressed through programs of literacy, education, skills and digitization. And indeed, the mindset itself is undergoing a transformation through emphasis on innovation and startups. And overall, it is the Modi Government’s commitment to enhance ‘Ease of Living’ that can bind these positive developments closely together. It is the working of these multiple axis in tandem that is now forging the New India. An India that creates its own 5G stack, which invents its Covid vaccine or that lands near the South Pole of the moon.
8. When you reflect on it, the discourse about the Global South is essentially about leaving no one behind. But to preach it convincingly, one has to practice it effectively. And that is what India has sought to do over the last decade. During the Covid and thereafter, we have provided food support to 800 million of our most vulnerable citizens. And financial support to 450 million. The Government’s housing program has benefitted about 150 million. Affordable and accessible healthcare is today within the reach of 220 million, and growing by the day. Pension schemes cover 450 million. And the basic necessities of sanitation, electricity and water will become universal in the very near future. All of this is made possible through the creation of a digital public infrastructure. Now, I can share a similar story when it comes to the deployment of renewables, to energy efficiency practices, or the creation of green infrastructure. Today’s India is where the world simultaneously witnesses experimentation, scaling up, deployment, innovation and breakthroughs. And I stress these developments, not only because they solve 1/6th of the world’s challenges, but as they provide replicable models for the rest of the Global South.
9. So, how has India walked the talk when it comes to the Global South? Stress situations normally provide the best indicators of intent and behaviour. During the Covid, ‘Made in India’ vaccines were sent to about 100 countries. 150 nations imported medicines during this period from the ‘pharmacy of the world.’ Our own development partnerships have grown significantly over the last decade, extending now to 78 nations across multiple geographies. The 600 projects delivered or under execution are a testimony to our goodwill, as much as to our capability. Believing that capacity building is central to development, we have provided training to 200,000 nationals of more than 160 countries. And our approach is guided by the Kampala principles enunciated by PM Modi in 2018, where the priority of the partner is the determining criteria. In all this, India has also been a source of ideas and initiatives focused on the welfare of the Global South. It could be the International Solar Alliance or the Coalition for Disaster Resilient Infrastructure. Or for that matter, the One Sun, One World, One Grid or the One Earth One Health. Or indeed, the International Year of Millets or the Infrastructure for Resilient Island States (IRIS). We have also stepped forward as a First Responder in disaster, emergency and conflict situations, from Fiji and Myanmar to Mozambique, Yemen and Turkiye.
10. Emerging World 2.0 is one with more engines of growth, a fairer distribution of the benefits of globalization and greater resources to attain sustainable development goals and promote climate action and justice. This is not merely a challenge for the policy making world, but even more so, for those who shape the real economy everyday through their decisions and choices. I am therefore, glad that the B20 has risen to the occasion. By prioritizing inclusive growth, resilient supply chains, services trade, digital technologies, innovation and sustainability, it has established itself as a credible partner of Governments who are working to the same ends. The theme RAISE – Responsible, Accelerated, Innovative, Sustainable, and Equitable – business says it all. Its task forces and action councils are a practical articulation of what the world must do. The emphasis on ESG (Environment, Social, Governance) in business and African economic integration is particularly laudable, given the larger picture that I have presented before you. I commend the endeavors of B20 India and assure you all that these are truly valuable inputs for the consideration of the Leaders when they meet next month.
11. Our expectation is that the forthcoming G20 Summit will provide the inspiration and directions for all stakeholders to move in unison to build a better world. Progress and prosperity can only be lasting when they are shared both within societies and between them.
I thank you for your attention.
Thank You.