Indian Prime Minister Narendra Modi, in a significant move aimed at strengthening global partnerships, proposed the creation of a human-centric ‘Global Development Compact’ specifically for the Global South, a collective term for developing nations. The initiative, announced at the third virtual Voice of the Global South Summit hosted by India, underscores the country’s commitment to fostering sustainable development and addressing the unique challenges faced by developing countries.
The ‘Global Development Compact’ is envisioned as a framework for collaboration, designed to facilitate trade, technology sharing, and concessional financing. Modi emphasized the importance of a human-centric approach, ensuring that development initiatives do not burden recipient nations with unsustainable debt. This is particularly relevant in light of concerns about the Chinese ‘debt trap’ stemming from Beijing’s Belt and Road Initiative (BRI), which has led to significant debt burdens for several countries.
The prime minister outlined key pillars of the ‘Global Development Compact,’ highlighting its focus on trade for development, capacity building for sustainable growth, technology sharing, and project-specific concessional financing and grants. In a concrete step towards promoting trade, India announced a dedicated USD 2.5 million fund for trade promotion activities, alongside a USD 1 million fund to support capacity building in trade policy and negotiation.
Beyond economic cooperation, Modi emphasized the need for a united front in addressing global challenges, urging the Global South to work together in confronting food and energy security crises, as well as the growing threats of terrorism and extremism. He also underscored the importance of inclusive global governance in resolving conflicts and tensions, advocating for a reduction in the gap between the Global North and the Global South.
The summit provided a platform for India to reiterate its commitment to fostering digital public infrastructure (DPI) development in the Global South. Modi announced an initial contribution of USD 25 million to the ‘Social Impact Fund,’ aimed at promoting DPI adoption. This builds upon India’s previous efforts, including the establishment of the Global DPI Repository under its G20 presidency, which served as a platform for multilateral consensus on DPI development.
Modi emphasized the transformative potential of DPI in fostering inclusive development, highlighting India’s willingness to share its ‘India Stack’ with 12 partner countries from the Global South.
Throughout his address, Modi highlighted India’s consistent efforts to amplify the concerns, challenges, and aspirations of the Global South. This commitment has been evident in India’s leadership during its G20 presidency, where it championed issues like inclusive growth, digital innovation, climate resilience, and equitable global health access. The summit serves as a testament to India’s dedication to collaborative solutions and a shared vision for a more equitable and sustainable future for the Global South.
