Opening Remarks by Secretary, Department of Economic Affairs, Shri Ajay Seth at the Finance Ministers’ Session of the 2nd Voice of Global South Summit (November 17, 2023)
Excellencies
It is my privilege to welcome you all to the second Voice of the Global South Summit and our session today on financing people-centric development. I extend my deep appreciation to all for joining this virtual summit from different parts of the world.
Before we begin, I would like to express our heartfelt condolences to the people affected by the devastating earthquake in Nepal. India stands in solidarity with the people of Nepal and is ready to extend all possible assistance during their hour of trial.
Excellencies
When India took over the G20 presidency on December 1, 2022, Prime Minister Narendra Modi declared that our G20 will be shaped in consultation not only with our G20 partners but also with our fellow travelers in the Global South whose voice often goes unheard. The ideas we received during the Global South Leaders and Ministers during the first voice of the Global South Summit held in January 2023, played a crucial role in shaping the agenda and priorities of the Indian G20 presidency. I am grateful for your contribution. Guided by the theme of One Earth, One Family, One Future, the Indian G20 presidency prioritized an inclusive, people-centric and action-oriented agenda. As the Global South constitutes the largest group of nations, the decisions we make hold immense significance.
The African Union's G20 membership makes a historic milestone, providing a much needed and long overdue platform for the participation of the Global South in shaping global decisions. I am glad this happened during the Indian presidency. With your continued support, we have amplified our voice, the Voice of the Global South.
Excellencies
We continue to grapple with a multitude of challenges that are holding back global recovery efforts and the progress on sustainable development goals. Today, we have come together again to explore how the Global South can maintain the momentum generated through the first voice of the Global South Summit and the G20 New Delhi Leaders’ Summit to advance our efforts towards people-centric financing for development. In this context, allow me to elaborate on some of the achievements of the Indian G20 presidency. The Indian presidency strongly advanced strengthening multilateral development banks to respond to shared global challenges of the 21st century, with the aim of securing continued and sustainable access to low-cost, concessional finance for low-income and middle-income countries. G20 leaders have called for better, bigger and more effective MDBs by enhancing operating models, improving responsiveness and accessibility and substantially increasing financing capacity to maximize development impact.
The triple agenda recommended in the report of the G20 Independent Expert Group constituted by the Indian presidency, falls on MDBs to: (i) address global challenges along with their core mandates of eliminating poverty and fostering shared prosperity; (ii) triple their sustainable lending by 2030 and (iii) announcing their financial strength by continuing with the ongoing work of improving their capital adequacy frameworks followed by a general capital increase.
The Expert Group also made comprehensive recommendations on mobilizing private finance. The implementation of these recommendations by MDBs within their respective governance frameworks can significantly enhance their strength in addressing various financing challenges. We cannot afford to let financing gaps translate into a sustainable development gap.
The Indian G20 presidency made concerted efforts to scale up sustainable finance. In line with the Paris Agreement and Agenda 2030, the G20 developed recommendations for mobilizing finance for climate action and SDGs and a Sustainable Finance Technical Assistance Action plan. Deeply intertwined with addressing financing challenges is the escalated level of debt vulnerabilities. The Indian presidency strove to impart political impetus to debt resolution efforts within and outside the Common Framework for Debt Treatment.
The Global Sovereign Debt Roundtable, a joint initiative of the IMF, World Bank and the G20 presidency was launched this year to strengthen communication and foster a common understanding among key stakeholders for facilitating effective debt treatments. While leaders acknowledge progress in the ongoing cases, including the recent finalization of the MoU for Zambia, we still have much to do to address debt vulnerabilities in an effective, comprehensive and systematic manner.
Another focus area of Indian presidency is the role of technology in social transformation and economic empowerment. Particularly in financial inclusion. Drawing on India's success story, the G20 policy recommendations for advancing financial inclusion and productivity gains through digital public infrastructure endorsed by the leaders can serve as a valuable guide for rapidly advancing financial inclusion. The G20 Financial Inclusion Action Plan for 2024 to 2026 also prioritizes the deepening of engagement with the Global South. India stands ready to share its technical capabilities and knowledge resources for empowering the people of the Global South.
Another notable achievement of the G20 is the groundwork done for formulation of a globally coordinated policy and regulatory framework for crypto assets. Further, to address the infrastructure financing gap, we have the G20 Principles for Financing Cities of Tomorrow, which provides a framework to guide MDBs and other development financial institutions in their planning and financing of sustainable urban infrastructure.
Excellencies
While we have made significant strides, challenges persist and require stronger collaboration. India's approach to development partnership will continue to be consultative, outcome-oriented, demand-driven and respectful of the sovereignty of partner countries, in keeping with the theme of this summit, together for everyone's growth, everyone's trust.
I look forward to valuable guidance from all of you on carrying forward the efforts of the Indian G20 Presidency to address the concerns of the Global South. Today's discussion will also guide preparations for the virtual G20 Summit on 22nd November 2023 and India's engagement with future G20 Presidencies.
Thank you very much.