{"id":46848,"date":"2025-07-03T20:41:39","date_gmt":"2025-07-03T15:11:39","guid":{"rendered":"https:\/\/www.nextias.com\/ca\/?p=46848"},"modified":"2025-07-23T17:51:39","modified_gmt":"2025-07-23T12:21:39","slug":"rephasing-global-development-finance","status":"publish","type":"post","link":"https:\/\/www.nextias.com\/ca\/editorial-analysis\/03-07-2025\/rephasing-global-development-finance","title":{"rendered":"Rephasing global development finance"},"content":{"rendered":"\n<p><strong>Syllabus :GS2\/IR<\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>In News<\/strong><\/h2>\n\n\n\n<p>India\u2019s development cooperation with the Global South has been showing a rising trend for the last several years.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-background\" style=\"background-color:#ebecf0\"><tbody><tr><td><strong>The Global South <\/strong>is a bloc of developing nations from different continents, such as Asia, Africa, Latin America, and Oceania.&nbsp;<br>1. It includes emerging economic superpowers like India and China, emerging economies like Brazil and Indonesia, and other developing countries.<br>2. It represents a significant population base and economic power.&nbsp;<br>3. It is home to marketplaces that developed countries with advanced economies and multinational corporations are seeking.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>India\u2019s development cooperation with the Global South<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>India has emerged as a key advocate for the Global South, leveraging its democratic credentials and economic growth.&nbsp;<\/li>\n\n\n\n<li>Historically, it played a leading role in The <strong>1955 Bandung Conference<\/strong>, advocating decolonization and equality.\n<ul class=\"wp-block-list\">\n<li>The formation of the <strong>Non-Aligned Movement (NAM) in 1961.<\/strong><\/li>\n\n\n\n<li><strong>Establishing the G-77 in 1964<\/strong> to promote South-South cooperation.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li>India continues this legacy through initiatives like<strong> Proposing African Union\u2019s inclusion in G20<\/strong>, which was accepted at the<strong> 2023 Delhi Summit.<\/strong><\/li>\n\n\n\n<li>India\u2019s 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.\n<ul class=\"wp-block-list\">\n<li>Key engagement methods include capacity building, technology transfer, market access, grants, and concessional finance, particularly through Lines of Credit (LoCs) under the IDEAS scheme.&nbsp;<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Challenges&nbsp;<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The Global South faces challenges like food insecurity, poor health infrastructure, debt, conflict, and lack of fair representation in global policymaking.<\/li>\n\n\n\n<li>With rising global debt concerns and liquidity crises, India is re-evaluating the role of LoCs due to increased risks and costs.<\/li>\n\n\n\n<li>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.&nbsp;<\/li>\n\n\n\n<li>This reduction threatens progress towards <a href=\"https:\/\/www.nextias.com\/blog\/sustainable-development-goals-sdgs\/\">Sustainable Development Goals (SDGs)<\/a>, which require over $4 trillion annually by 2024, amid costlier and less predictable borrowing.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Alternatives&nbsp;<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Triangular Cooperation (TrC)\u2014a partnership model involving a Global North donor, a Global South pivotal country, and a third partner country\u2014offers a promising alternative.&nbsp;<\/li>\n\n\n\n<li>Countries like Japan, Germany, Indonesia, and Brazil have successfully implemented TrC projects, promoting shared learning and tailored solutions.<\/li>\n\n\n\n<li>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\u2019s G-20 presidency.<\/li>\n\n\n\n<li>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.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Suggestions and Way Ahead<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>India\u2019s approach is rooted in its vision of inclusive development\u2014\u201cSabka Saath, Sabka Vikas\u201d and \u201cVasudhaiva Kutumbakam\u201d (One Earth, One Family, One Future)\u2014emphasizing partnership, empowerment, and shared growth for a sustainable future.<\/li>\n\n\n\n<li>&nbsp;India can help shape a more inclusive and resilient global order amid rising global inequalities and weakening development finance<\/li>\n<\/ul>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-background\" style=\"background-color:#fff2cc\"><tbody><tr><td><strong>Mains practise question<\/strong><br><strong>[Q]<\/strong> What are the key challenges faced by the Global South countries in the present scenario ?Analyze India\u2019s approach to development cooperation with these countries.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p>Source :TH<\/p>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/www.nextias.com\/ca\/wp-content\/uploads\/2025\/07\/UPSC-Editorial-Analysis-3-July-2025.PDF.pdf\">Download PDF<\/a><\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>India\u2019s development cooperation with the Global South has been showing a rising trend for the last several years.<\/p>\n","protected":false},"author":15,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[22],"tags":[],"class_list":["post-46848","post","type-post","status-publish","format-standard","hentry","category-editorial-analysis"],"acf":[],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/46848","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/comments?post=46848"}],"version-history":[{"count":3,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/46848\/revisions"}],"predecessor-version":[{"id":48975,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/46848\/revisions\/48975"}],"wp:attachment":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/media?parent=46848"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/categories?post=46848"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/tags?post=46848"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}