Syllabus :GS2/IR
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India’s development cooperation with the Global South has been showing a rising trend for the last several years.
| The Global South is a bloc of developing nations from different continents, such as Asia, Africa, Latin America, and Oceania. 1. It includes emerging economic superpowers like India and China, emerging economies like Brazil and Indonesia, and other developing countries. 2. It represents a significant population base and economic power. 3. It is home to marketplaces that developed countries with advanced economies and multinational corporations are seeking. |
India’s development cooperation with the Global South
- India has emerged as a key advocate for the Global South, leveraging its democratic credentials and economic growth.
- Historically, it played a leading role in The 1955 Bandung Conference, advocating decolonization and equality.
- The formation of the Non-Aligned Movement (NAM) in 1961.
- Establishing the G-77 in 1964 to promote South-South cooperation.
- India continues this legacy through initiatives like Proposing African Union’s inclusion in G20, which was accepted at the 2023 Delhi Summit.
- India’s development cooperation with the Global South has grown significantly, with funding nearly doubling from $3 billion in 2010-11 to $7 billion in 2023-24.
- Key engagement methods include capacity building, technology transfer, market access, grants, and concessional finance, particularly through Lines of Credit (LoCs) under the IDEAS scheme.
Challenges
- The Global South faces challenges like food insecurity, poor health infrastructure, debt, conflict, and lack of fair representation in global policymaking.
- With rising global debt concerns and liquidity crises, India is re-evaluating the role of LoCs due to increased risks and costs.
- Traditional development assistance providers (ODA) are facing budget cuts and a shrinking aid environment, with a steep decline in global aid expected from $214 billion in 2023 to around $97 billion.
- This reduction threatens progress towards Sustainable Development Goals (SDGs), which require over $4 trillion annually by 2024, amid costlier and less predictable borrowing.
Alternatives
- Triangular Cooperation (TrC)—a partnership model involving a Global North donor, a Global South pivotal country, and a third partner country—offers a promising alternative.
- Countries like Japan, Germany, Indonesia, and Brazil have successfully implemented TrC projects, promoting shared learning and tailored solutions.
- India and Germany have initiated TrC projects in Africa and Latin America, supported further by collaborations with the US, UK, EU, and France during India’s G-20 presidency.
- These partnerships demonstrate how combining technical, financial, and human resources in TrC can effectively re-phase global development finance to achieve impactful, cost-effective results in the Global South.
Suggestions and Way Ahead
- India’s approach is rooted in its vision of inclusive development—“Sabka Saath, Sabka Vikas” and “Vasudhaiva Kutumbakam” (One Earth, One Family, One Future)—emphasizing partnership, empowerment, and shared growth for a sustainable future.
- India can help shape a more inclusive and resilient global order amid rising global inequalities and weakening development finance
| Mains practise question [Q] What are the key challenges faced by the Global South countries in the present scenario ?Analyze India’s approach to development cooperation with these countries. |
Source :TH
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