5 September 2024, NIICE Commentary 9564
Dr Chander Shekhar

Last few years have been transformative, coupled with challenges from COVID-19 to wars and economic recovery the world still undergoing through with, in global governance and development visions. Developing countries at the onset have been demanding for reforms in multilateral global institutional governance to protect their interests and welfare of people in their economies. The establishment of Global Development Initiative (GDI) and Global Development Compact (GDC) have set the tone of leading developmental visions for global south countries.

Global Development Initiative

The Global Development Initiative was introduced in 2021 by the China’s President Xi Jinping while addressing the United Nations General Assembly’s 76th session at the time of world facing economic crisis and COVID-19 recovery. The aim of GDI is “to build global consensus on promoting development, foster new drivers for global development, and facilitate the common progress of all countries”. The timing and scale both facilitated country to contribute in global development and aligning with the Sustainable development goals (SDGs). Its Group of Friends (GOF) is a forum that deliberates plans and issues within the GDI.  Wang Yi stresses on building network of inclusive cooperation in areas, such as agriculture, education, climate change, health, poverty reduction, etc to implement the 2030 agenda.

The 1st High Level Meeting on GDI was inaugurated by the PRC in New York at the UN office. Han Zheng, Vice President, in his address underlined the progress, mechanisms to strengthen and challenges in its implementation. He pointed out that since 2021, “all parties have cast an affirmative vote for development, deepened the circle of friends for cooperation, enriched the resource pool for development and built a tool box for development in global south by synergizing with the goals of 2030 Agenda for Sustainable Development .

Moreover, in the 2nd High-Level Conference of the Forum on Global Action for Shared Development, which was held on 11 and 13 July 2024 under the theme of “Promoting Sustainable Development: Continuous Actions for a Better Future”, the progresses of  the GDI were underlined since its inception: it was attended by over 160 countries, other UN and international agencies and organizations; implemented over 140 cooperation projects and over 40,000 practitioners benefitted from over 1,000 capacity building programs for global south countries; focused on strengthening South-South and triangular cooperation as essential for advancing moderation which involves sharing technology, education and other non-conventional subjects; and as platform discussed issues of developing countries facing across the region.

However, in practice the effort is described as “high in political rhetoric and very low in substance”. Also, China’s GDI is part of its “initiative diplomacy” to, as analysts believe, reinforce domestic legitimacy for reforming global governance, which is western in nature and substance, excludes eastern stakes.

Global Development Compact

Amidst world is facing economic challenges, wars in Europe and Middle East, and legitimacy, countries like India have evolved as a strategic pole to influence and shape global development journey. Indian Prime Minister Modi, during 3rd voice of Global South Summit, shared a global development vision, known as Global Development Compact (GDC) to achieve “One Earth, One Family, One Future”, focuses on five pillars: trade for development, capacity building for sustainable growth, technology sharing, project specific concessional finance, and grants. By contributing USD 2.5 million to promote trade activities and USD 1 million for capacity building in trade policy and negotiation, making generic medicines available at affordable rate to the developing countries, share technology and experiences in natural farming in the agriculture sector, the GDC is committed to the SDGs. It is a human centric and comprehensive plan in nature, promotes multisectoral approaches and ensured that “it will not burden the needy countries with debt in the name of development finance”.

This compact would change development trajectory in the global south for just and inclusive global governance and offers an alternative path. Also, policy analyst noted that “India’s Development Compact would set a new baseline for wider engagement with the global south”. It is a new initiative recently came up and started focus on implementation part. After few months, it would be more visible and tangible to achieve its objectives and plans for global commons.

Convergences

The above underlined two developmental efforts, the GDI and the GDC, are historic because two non-western countries in Asia unveiled their developmental documents and shared visions by sending a signal the existing governance model, not to some extent working for inclusive global governance and society. These efforts started their life in different period, different in approach, contexts and focused on providing solutions to the non-conventional threats of security to the global south by sharing experiences, funds, and technologies.

Whereas the GDC focuses on five modalities in general cover whole areas that linked with sustainable growth, development and other for the Global South. China’s GDI specifically touched upon 8 areas for cooperation: food security, vaccine, poverty alleviation, finances for development, climate change, industrialization, digital, and connectivity.

However, evidences suggest that China’s development and global governance experiences, be it Sri Lanka, Pakistan, etc reveal a contrary result, which pundits call “China’s debt trap diplomacy”. This assumption is nullified by China’s media saying that “countries defaulting, inflation soaring, people losing jobs and their families starving, this bleak picture is painted by Western media, and on-site investigations conducted by Xinhua present a contrasting perspective on shedding new light on their debt impasse”. Looking beyond blame game, the Global Development Initiative and Compact could be game changer as their areas of cooperation and works overlap for the welfare of Global South community, together or separately achieving their visions.

Conclusion

The announcement of Global Development Compact by India in August 2024 presents an opportunity to the Global South countries to work with in order to achieve its policy objectives and outcome of achieving growth and development of Global South countries. On the other side, China led developmental initiative, as it believes, is commenced to achieve ‘stronger, greener and healthier global development’. There is much convergence in their visions and divergence in approaches, carry potential for developing countries on different planes could become propulsion for the inclusive development and transformation of Global South countries.

Dr. Chander Shekhar was associated with Research Information System (RIS), New Delhi, and Indian Council of World Affairs, India