Category Archives: India

Global South, Great Power Dynamics, India, international affairs, US and canada, Writing

The US needs a new paradigm for India: ‘Great Power Partnership’

Samir Saran | Kaush Arha

The US-India partnership is unprecedented in its scope. It holds the promise to substantially augment both nations’ security interests and to shape the world to their mutual advantage. The coordination and collaboration between the world’s longest standing democracy and its largest democracy will have far-reaching regional and global implications. This strategic alignment requires sustained forethought and concerted action—as well as a new realist paradigm and lexicon. Prioritizing pragmatic and principled interests and values will lead to the formulation of a novel US-India strategic framework and vocabulary unshackled by past preconceptions.    

The era of great power competition calls for Great Power Partnerships. Size matters. As the United States engages in competitive or adversarial relationships with Asian and Eurasian powers China and Russia, it is prudent for it to seek a Great Power Partnership. Conversely, India is engaged in localized hostilities with its neighbors China and Pakistan, and finds its one-time friend Russia reduced to being a dependent of China. Realpolitik calls for the largest American and Asian nations, as democracies, to forge a Great Power Partnership to their mutual advantage. 

But the US-India partnership represents a strategic convergence between emerging allies driven by shared interests and values. Both countries realize that they are stronger together in deterring Beijing’s hegemonic designs, which are inimical to both US and Indian interests. India shares the longest disputed land border with China and confronts the hostile China-Pakistan axis along virtually its entire western, northern, and eastern land borders. Meanwhile, China’s major foreign policy goal is to displace the United States as the paramount power in the Indo-Pacific and upend the US-led rules-based international order.

The US-India convergence extends beyond deterring the Chinese Communist Party. It smooths India’s path to achieving its “rightful place” among the world’s leading nations. In turn, the United States has, in India, a partner of size to shape world affairs to their collective advantage. Traditional security assurances and treaty provisions underlie the United States’ closest alliances, including those with NATO nations, Israel, and Japan. India has strenuously shunned alliances over the last seven decades. But realism will compel the two nations to increasingly act in concordance, whether they choose to institutionalize their converging interests into a formal treaty or alliance with reciprocal commitments or not.

The two countries have rightly termed this “the most consequential relationship of the twenty-first century.” US and Indian leaders have also referred to it as a “comprehensive strategic partnership”—the same label the United States uses for Vietnam and Indonesia. India deserves a category of its own: Great Power Partnership.

Areas of collaboration

Both countries are in the midst of a consequential election year, with India’s six-week national vote beginning on April 19 and the United States voting this fall. But these essential ties run deeper than any one administration on either side, even though the continuity of Indian administrations has been critical.

Still, to make this new Great Power Partnership paradigm stick will require more than rhetoric. The two countries need to make rapid advances along four fronts.    

  1. Defense co-production. It is in both countries’ interest to help India become the premier naval force and logistics hub across the Indian Ocean, as well as the munitions factory and backstop for a free and open Indo-Pacific. US-India collaboration on co-producing jet engines and armored vehicles should expand to include autonomous weapons with the goal of making the United States and India the bulwarks of the democratic defense industrial value chain. 
  2. Space collaboration, development, and exploration. In India, the United States has an ambitious, capable, and complementary partner with technical competence coupled with a cost-effective model for space endeavors. India’s space program will gain greatly in ability and ambition from close collaboration with US public and private actors. India offers scale and affordability to amplify US space investments and share the benefits with the Global South.
  3. Development and governance of the digital economy driven by artificial intelligence (AI). The United States and India, as the world’s preeminent digital start-up nations, share an innovator’s perspective for digital governance. In contrast, a regulator’s perspective is more prevalent in Europe. It is in both countries’ interests to coordinate on shaping international AI digital governance that fosters responsible innovation and application.
  4. Winning the hearts and minds of the Global South. India and China offer diametrically opposing visions for the Global South. China wants to enlist emerging nations into a countervailing bloc against the existing rules-based international order. India wants to enhance Global South representation within the existing international order to better reflect demographic and economic realities. The US-India partnership advances both India’s stature among the Global South and US outreach to the region. It is essential for both US and Indian interests that the Global South embraces and strengthens the rules-based international order. India is well-positioned to lead this effort.     

Deepening the partnership

As democracies, the United States and India have a common interest in bolstering and modernizing the rules-based institutions that govern world affairs. Indeed, in the twenty-first century, the United States and India may shape a new international order as the United States and Europe did in the twentieth century. The largest American and Asian countries bear the responsibility to ensure that the twenty-first century international order equitably represents the Med-Atlantic, the Indo-Pacific, and the Global South—reinforcing their shared values of liberty and dignity for all.

The partnership between the United States and Europe is buttressed by cultural affinity and institutional solidarity through shared membership in NATO, the Group of Seven (G7), the Organisation for Economic Co-operation and Development (OECD), and other groupings. The US-India partnership does not yet boast either cultural affinity or institutional solidarity at comparable levels, despite the rising force of the Indian diaspora in US society. In time, it can and should develop both.

India is projected to become the world’s third-largest economy by the end of the decade. The United States should lead the effort of inviting India to become a member of the G7 and the OECD. For their economic security, the United States and India should prioritize binding the Indo-Pacific nations to their collective economies more than that of China.

The United States and India have made great strides in coordination through multilateral institutional arrangements. These include the Initiative on Critical and Emerging Technology, the 2+2 Ministerial Dialogue, and the Quadrilateral Security Dialogue (better known as the Quad). The frequency and scope of joint military exercises and intelligence sharing are also on the rise. US-India strategic dialogues on defense and economic coordination need to expand in depth and breadth to regularly engage functionaries in each respective administrative structure to facilitate greater interoperability and knowledge sharing.

The United States and India should also devote singular attention to advancing stronger institutional solidarity and people-to-people connections. Enhanced engagement between middle America and middle India holds the key. The United States is reinvigorating its domestic manufacturing across digital and industrial sectors while confronting a shortage of skilled technicians. India boasts a surfeit of graduates with technical skills looking for better employment. A US-India science and technology mobility agreement with prescreened skilled individuals from both nations would facilitate greater knowledge sharing and co-development between the two digital economies.

The US-India Great Power Partnership enjoys strong tailwinds, but its success is not inevitable. The relationship requires a considered understanding of the cultural, demographic, and political drivers at work in the two complex democracies. All too often, US-India discourse in bureaucratic circles and media outlets is prone to reflexive skepticism and mistrust. Both sides need a more reflective discernment of each other’s society and political system. In this area, the US and Indian business communities are leading the way with a strong sense of cooperation and comprehension.  Overcoming what Indian Prime Minister Narendra Modi has described as “hesitations of history,” a constructive Great Power Partnership could advance core US-India interests and values going forward. 

This article originally appeared in Atlantic Council.

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India, international affairs, Writing

Raisina Chronicles: India’s Global Public Square

The Raisina Dialogue has become a feature today in the calendars of leaders around the world. It is a must-attend for all who seek to move the needle, disrupt the status quo, defend their beliefs, and create what shall be. India’s flagship conference on geopolitics and geo-economics enters its 10th year. In that time, it has emerged as a global, inclusive, and wide-band forum of international importance, transcending borders and ideologies, ages and agendas, hashtags and echo chambers. It is India’s ‘global public square’—located in New Delhi, incubated by the world. Its purpose is to preserve and promote the often-challenged art of dialogue and of working through differences. In keeping with Indian Prime Minister Shri Narendra Modi’s vision of delivering public goods for the benefit of all humanity, it is indeed a platform that serves this planet.

Raisina has been crucial in propelling discourse, nurturing collaboration, and fostering a sense of shared responsibility. It is a venue for celebrating diversity in all its shapes and forms: of thought, of approaches, of beliefs, of politics. It has captured the age-old Indian premise that within us all lies a desire and power to do good. Each view must be heard, and each suggestion must be considered. Pluralism, confabulation and heterogeneity is what makes us resilient and anti-fragile; and what drives the evolution of individuals and of societies. This is India’s own story as well; an enormous diversity that rests on a powerful timeless unity. or this reason, Raisina provides a rare opportunity for leaders and diplomats, scholars and policymakers, journalists and academics, teenagers and seasoned thinkers, business folks and civil society—to all come together to debate, deliberate, disagree, and discover shared futures and common pathways.

On this occasion, we celebrate the Raisina Decade: a period during which the Dialogue has helped build regional partnerships and transcontinental collaborations, while responding to global challenges. For three days every year, it has brought a fractured and polarised world together. This volume chronicles this journey, and reflects on its unique strengths and attributes. And this is best done by bringing together how it is perceived by eminent participants from different parts of the world. These are the thoughts of those who have themselves experienced Raisina and have contributed ideas, who have listened and spoken there and who appreciate the difference it has made.

Read it here.

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climate change, India, international affairs, Sustainable Development, Writing

Raisina Files 2024 – The Call of This Century: Create and Cooperate

This edition of the Raisina Files is infused with this conviction. The call of this century is to dispense with cynicism and to embrace what is appearing and emerging. A call to work towards inaugurating an inclusive and sustainable future. Rising up to the task requires us to create and cooperate, to build communities fit for this purpose.

This volume comprises contributions from an ensemble of thinkers who problematise, and attempt to answer, the pressing questions that matter. What are the power dynamics between a State and its citizens in this age of the digital? How do we protect our children in their always-online world, while preserving their agency and rights? If the current Western-led mechanisms of international aid are failing to meet the needs, how do we ensure that assistance truly reaches the grassroots? What transformations do our food systems require so they can be fit for the zero-hunger goal? As we move to the green frontiers, how will women lead the change? And how does the global financial system become just that—global?

Read it here.

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Arabian Sea, India, India UAE relations, international affairs, UAE, Writing

Reclaiming the storied legacy of the Arabian Sea

APM Modi and Sheikh Mohamed bin Zayed are putting in place the building blocks for a prosperous Arabian Sea community

Post-Independence, India has been unfair to the sea that laps against our western shoreline. We forget that the Arabian Sea has long been a fertile bridge for the exchange of ideas, stories, commerce, and culture. Khazanas of knowledge have flowed through its waters and lasting friendships have been forged. More than any Indian Prime Minister (PM) before him, Narendra Modi recognises the injustice of this neglect. His upcoming visit to Abu Dhabi will be his seventh — six more than any predecessor. Before his first trip in 2015, no Indian PM had set foot in the Emirates for over three decades.

While numbers are often inconsequential, sometimes they do matter. As the B-school adage goes: If you can’t count it, it doesn’t count. Seven prime ministerial visits paint a picture. It signifies a change in the relationship and a growing appreciation of each other’s importance. What India and the United Arab Emirates (UAE) have built is a special affinity. It reflects a new reality, one where the India-UAE bond is no longer voluntary but mandatory, not a choice but an instinct. PM Modi and Sheikh Mohamed bin Zayed Al Nahyan have undertaken a systematic overhaul: We are now mutually indispensable.

At the same time, he is attending the World Government Summit, a platform for deliberating innovation to deal with emerging governance challenges.

The very texture of this relationship is different. PM Modi is travelling to inaugurate the first Hindu temple in the UAE, an exemplar of Abu Dhabi’s promotion of a more pluralistic society. At the same time, he is attending the World Government Summit, a platform for deliberating innovation to deal with emerging governance challenges. In tandem, these act as a synecdoche for the larger relationship: The two nations are partnering with each other while celebrating who they are. They seek to be part of each other’s change while not seeking to change the other. India has friendly relations with many nations, and yet such friendships often come with prescriptive clauses of what India can or cannot do; of what India should or should not be. A large part of why the India UAE relationship is special is because it is descriptive, not prescriptive.

Embedded deeply in the India-UAE bond is a celebration of each other for what we are — plural yet singular. Plural because of our diversity of cultures and customs, and the heterogeneity inherent in our nations. Singular because we have navigated uncharted territory, and plotted an unmapped path for ourselves. In their own unique ways, both countries are exceptions in the region and in today’s times. The UAE has created a lush economy in the middle of an arid desert. India’s specific development challenges have no parallels, with individual states the size of entire nations. For both of our countries, there have been no models to follow, no moulds to fit into. This is the foundation of our mutual respect. It will continue to be the bedrock of our relationship as we transform incomes, update infrastructure, and move from an analogue to a digital world.

Diaspora lies at the centre of our relationship. More than 60,000 Indians have signed up to attend the PM’s address at the Zayed Sports City Stadium. However, statistics of this sort do not do true justice to the real story of the Indian diaspora in the UAE. The fact is Indians today share the top floor of skyscrapers in Abu Dhabi and Dubai. Positions that by default went to Europeans and Americans, today, see a large proliferation of Indians, whether in finance, energy, or infrastructure. They are being recognised as valued advisors, creative talents, and financial wizards, rubbing shoulders with Emiratis in building a 21st-century nation and contributing to the future of the UAE. This cohort of Emiratis and Indians is working to make the UAE a global hub for our century, even as they make India a global economic powerhouse for the benefit of the country, the region, and humankind at large.

Positions that by default went to Europeans and Americans, today, see a large proliferation of Indians, whether in finance, energy, or infrastructure.

As China rose, a small clique of cities benefitted: Hong Kong, Singapore, London, and New York. India’s journey, from four trillion dollars to 30, will see the world benefit. Abu Dhabi and Dubai will hold a privileged position in this odyssey. Even as India benefits, so will the global ambitions of the UAE. Moving forward, the UAE will be the new Gateway to India. It will be a talent hub, connecting Indian opportunities and Indian talent with the rest of the world. It will be a trade hub, with goods — and energy — that flow to and from India passing through it. It will be a finance hub, where it will be able to source at scale the capital required to sate India’s growing appetite.

PM Modi and Sheikh Mohamed bin Zayed are putting in place the building blocks for a prosperous Arabian Sea community. They are restoring the sea to the storied position it held in antiquity, refreshing it and bringing it into the 21st century. This community will offer people-centric, development-first, and growth-led solutions for Africa, Europe, and the Indo-Pacific. The space between the Gulf and the subcontinent will reclaim its role as the wellspring of inclusive globalisation in this century, just as it was millennia ago.

This article appeared originally in Hindustan Times.

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Brazil, G20 India, Global South, India, Writing

Interview – “[Brazil and India] have a stake and voice, by rights, not indulgence”

Over the past decades, India has witnessed unprecedented growth not only in economic terms but also in terms of its international prominence. Has India effectively utilized its participation in the G20 to showcase global leadership potential emerging from developing nations?

Samir Saran: By all counts, the Indian Presidency of the G20 can be assessed as having been an outstanding success. The Indian leadership was able to ensure that the dynamic federal architecture was able to jointly deliver on the objectives that had been spelled out at the outset. Every state of India was involved, in some cases infrastructure was invested into certain parts of the country, and in all instances visible support of people and polity was in evidence. The G20 became a people’s project and India hosted about 220 meetings in 60 cities.

From a global perspective, India determinedly and delicately ensured that the Global South became a participant, and it could contribute to the agenda for the grouping this year.

From a global perspective, India determinedly and delicately ensured that the Global South became a participant, and it could contribute to the agenda for the grouping this year. India walked an extra mile to understand their concerns and expectations, and also ensured that some were also invited to the proceedings. It conducted two Voices of the Global South conferences under the chairship of the Indian Prime Minister indicating the seriousness with which it took this task. This has lent legitimacy to its international standing within this very large group.

Finally, at a time of polarized politics and breakdown of trust among countries, India fashioned an ambitious declaration in Delhi that responded to issues that are important to all. It achieved consensus amongst countries on matters that had been left unresolved in other multilateral forums. Its ability to deliver this outcome demonstrated its leadership and that of the emerging and developing countries to contribute significantly and effectively to matters pertaining to global governance. Indonesia, India, Brazil, and South Africa, in the consecutive years of Presidency have an opportunity to showcase the importance and prominence of emerging country leadership in world affairs. 

India and Brazil find themselves in a unique position, jointly leading a troika of developing countries. Drawing on India’s experience, can it wield the potential to reshape G20 outcomes? Could you provide concrete examples of results aligning with the Global South perspective?

SS: Brazil has an even bigger opportunity than India did. India’s troika with Indonesia and Brazil straddles two continents–Asia and Latin America. Brazil has the advantage of having a troika which includes South Africa and, therefore, the African continent. It is an opportunity which must be capitalized to articulate our common challenges as leaders in the developing world. Brazil has declared poverty reduction as a key theme of its G20 Presidency and this is very relevant. It is an indication of both our challenges and our aspirations. Equality and Equity, even as we grow and develop, are another Brazilian objective and resonate with developing societies.

Brazil has an even bigger opportunity than India did. India’s troika with Indonesia and Brazil straddles two continents–Asia and Latin America. Brazil has the advantage of having a troika which includes South Africa and, therefore, the African continent.

India had strived hard with its partners to have a result-oriented G20. India had 87 outcome documents and 118 action items coming out of its Presidency. The African Union’s addition to the G20 is of course a key achievement. The adoption of a framework on Digital Public Infrastructure is also a significant milestone. Both of these are at the core of the Global South expectations.

The Indian Presidency has also gone further on the social protection agenda. It has come out with G20 Policy Priorities on Adequate and Sustainable Social Protection and Decent Work for Gig and Platform Workers & G20 Policy Options for Sustainable Financing of Social Protection. This is an important part of the Brazilian agenda as well and corresponds with what is needed in developing countries. 

Despite the undeniable significance of the G20, the group faces criticism for inherent characteristics like the absence of a permanent Secretariat, insufficient means for implementation monitoring, and perceived lack of representation due to its “elite” membership. Drawing from your first-hand experience, do these criticisms hold merit? What are the primary challenges and gains associated with a grouping like the G20?

SS: We should look at each of these criticisms discretely. First, on the lack of a permanent Secretariat, one may ask if this is in fact a criticism. The G20 has functioned without overzealous bureaucracies. It may well be one of the secrets to its continued functioning. What we may need is a central repository of G20 knowledge rather than a Secretariat. 

The knowledge repository brings us to the second criticism of implementation and monitoring. Leveraging the knowledge repository may allow us to hold the G20 members accountable for their commitments.

The lack of representation is a weakness of any plurilateral grouping. The ideas which brought the group together are the criterion for its exclusivity. It so happens that the G20 members are economically elite because they currently contribute the most to global GDP. The membership should adapt and change with the times. We have started this process with the addition of the African Union to the group. And the efforts of India to partner with the Global South in many ways smashed the glass ceiling and made the G20 relevant and respond to the leadership of the Global South. 

At the think tank / academic level, we at ORF (Secretariat of the Think 20) were able to solicit policy briefs from over a 1,000 authors from over 75 countries and ensured that the process is inclusive and open to all.  Some of our important convenings outside of India were in Kigali, Rwanda, and Cape Town, South Africa. These established the inclusive design of the Indian Presidency.

As a leader within one of the G20 engagement groups, the Think20, you have had the opportunity to observe how the integration of civil society on official negotiation tracks functions. Does civil society play a substantial role in agenda-setting or decision-making within the official G20 agenda? If so, how can these opportunities be expanded?

SS: We cannot speak on past Presidencies but can say with confidence this year that civil society has contributed to the official G20 agenda. The energy with which the G20 India team followed and engaged with conversations in all the engagement groups is a reflection of these. We have also seen some of our ideas find space in the Leader’s Declaration. 

The addition of the African Union, the commitment to expand climate finance, and the push for digital public infrastructure were all at various points recommended by Think20 India. 

The concept of Task Force notes introduced by T20 Indonesia was elevated to Task Force statements by T20 India. It was something that ensured more engagement with the specific Sherpa tracks. For instance, the Trade and Investment Working Group may not want to wait for the full Think20 Communique which may have specific recommendations. It may have more interest in the full statement of the Task Force on Macroeconomics and Trade.

Innovations such as this help academia and think tanks make more valuable and timely contributions to the G20 process.

India and Brazil have a history of coordinating positions in various multilateral forums such as the United Nations, BRICS, IBSA  Dialogue Forum, and the World Trade Organization G20. Can the G20 be considered a noteworthy example of the potential for Indian-Brazilian cooperation?

SS: Brazil-India have been reliable partners to each other. At the G20, the United Nations, and the World Trade Organization, the partnership takes on a unique global character. At BRICS, IBSA, and other smaller groups, the partnership is characterized by a conversation amongst similarly situated and aligned countries barring a few exceptions. 

Brazil and India have a vital role in keeping the focus on development in these international plurilateral groups. We have a stake and voice, by rights, not indulgence. The two countries are both aware of this and leverage their voice accordingly. The role of the troika in the success of a G20 Presidency is an open secret.

Brazil and India have a vital role in keeping the focus on development in these international plurilateral groups. We have a stake and voice, by rights, not indulgence. The two countries are both aware of this and leverage their voice accordingly. The role of the troika in the success of a G20 Presidency is an open secret. Our collaboration at the international level on behalf of the Global South is something we should maintain momentum on and continue to permanently center development as the most important mission of the G20. This would certainly be a triumph of the Indian-Brazilian partnership in world affairs.

In India, the Banker’s G20 became the People’s G20. Brazil, with its rich constituency of civil society and research organizations, will take this forward and shape the process indelibly. 

This interview was given to CEBRI-Journal in November 2023.

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Geopolitics, India, international affairs, Writing

4 pathways to cooperation amid geopolitical fragmentation

The world is experiencing geopolitical turbulence. Wars are raging across the Middle East, Europe and Africa; 2023 marked the largest ever single-year increase in forcibly displaced people.

In addition to these security challenges, the world faces a warming planet and fragile global economy that can only be addressed through joint action.

Despite this daunting picture, there are ways the international community can still work together. Experts from the World Economic Forum’s Global Future Council on Geopolitics tell us how, in a new report entitled Shaping Cooperation in a Fragmenting World.

The report offers innovative pathways towards greater global cooperation in four areas: global security, climate action, emerging technology and international trade.

Below are the key highlights, as outlined by our experts.

1. Global Security – advancing global security in an age of distrust

By Bruce Jones, Ravi Agrawal, Antonio de Aguiar Patriota, Karin von Hippel, Lynn Kuok and Susana Malcorra

The starting point must be to recognize that distrust is, in the short and medium term at least, a baked-in feature of geopolitical reality.

Managing this and forging responses to global challenges despite it requires recognizing that collaboration is possible even under conditions of intense distrust: the US and the Soviet Union repeatedly proved this during the Cold War.

Third parties are key to managing the distrust through quiet diplomacy (often at or through the UN), brokering offramps, de-escalation and crisis avoidance. So-called “middle powers” have in the past played a key role in great power conflict prevention and de-escalation and are an important part of this moving forwards.

Although this term has, until recently, been confined to Western countries, shifts in the global balance of power mean that it extends beyond the West to “rising” powers elsewhere.

A standing mechanism that links the western major and middle powers with the non-Western ones (Brazil, India, South Africa, the United Arab Emirates and so on) would create a diplomatic mechanism that could straddle the increasingly bifurcated worlds of the G7, Quadrilateral Security Dialogue (the Quad) and the expanded BRICs.

2. Climate Change – rethinking climate governance

By Samir Saran and Danny Quah

There is now a need to rethink global climate governance. The fundamental imbalance is this that while the developed world has been the key contributor to historical emissions, future emissions will be concentrated in the developing world. It is necessary to not just increase the amount of private capital deployed in the Global South, but also to ensure the scope of such investment is widened to include adaptation.

Similarly, the technology needed to scale up green energy solutions also remains concentrated in the developed world and China. The mandate and lending patterns of multilateral development banks should be changed and the start-up sector in the emerging world should be repositioned towards climate goals.

At the same time, multilateral forums such as the United Nations Framework Convention on Climate Change (UNFCCC) and the G20 must better acknowledge and differentiate impacts of climate change on health outcomes across genders and craft women-led initiatives to mobilize societal support for political action.

3. Emerging Technology – taming technology together

By Samir Saran, Flavia Alves and Vera Songwe

The prolific pace of advancement of frontier technologies and its pursuit by a multitude of state and non-state actors, with varied motivations, has opened a new chapter in contemporary geopolitics.

To ensure that efforts at tech regulation and stemming their proliferation succeed, countries will be required to undertake innovation in policy-making, where governments take on board all the stakeholders – tech corporations, civil society, academia and the research community.

Similar to the responsibility to protect (R2P) principle developed by the UN for protecting civilians from genocide, war crimes, ethnic cleansing and crimes against humanity, the international community must create a regulatory R2P obligation for states to protect civilians from the harms of emerging technologies.

And the Global South must convene a standing conference of the parties (COP) for future technologies, along the lines of COP for climate change negotiations.

4. International Trade – expanding and rebalancing trade

By Nicolai Ruge and Danny Quah

Strengthening and rebalancing the trade system requires expanding the trade agenda, not limiting it. The broader the benefits delivered by trade, the more firmly it will be aligned with national and global priorities.

Trade that is designed to deliver on globally shared priorities as defined by the UN Sustainable Development Goals will gain the trust of governments and citizens and be “fenced off” from geopolitical rivalry rather than disrupted for near-term political wins.

To rebuild global trust in the benefits of the multilateral trade system, it is of paramount importance that the Global South – and particularly least-developed countries – are not cut out of the growth and development pathways that participation in international trade provides.

Mechanisms must be in place to ensure they are able to take advantage of new opportunities created by shifts in global value chains.

How can these pathways be successful?

Throughout the report , one common factor emerged as key to enhancing cooperation across these four domains: inclusivity.

To address challenges in global security, climate change, emerging technology and trade, the international community must prioritize diverse voices and involve actors that have previously been on the margins of multilateral fora.

With this approach as a North Star, building cooperation is possible.

This publication originally appeared in World Economic Forum.

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Global South, India, Writing

How India can become the bank for the Global South

Today, India is poised at the moment and GDP that China was in in 2007. Does it have the same gumption?

In 2007, China’s GDP was about $3.6 trillion. Today, India’s GDP is $3.7 trillion — perhaps more. This parallel is crucial to understanding the big moment that Indian diplomacy, led by Prime Minister Narendra Modi, is recognising. A moment, if supported by India’s people, its companies and the state apparatus, will reshape the global order. An appreciation of this moment and putting its lessons into concrete actions is the big legacy of 2023 as India concludes a transformational diplomatic year — the year of its G20 stewardship.

Look back at history. In 2007, China was not yet the geoeconomic behemoth it is now. But with a GDP lower than India’s today, it became the go-to nation during the global financial crisis a year later. Every nation sought to deepen relations with Beijing, and to create a special place in their diplomacy for the People’s Republic. Its leaders were the toast of Davos and at business salons. China provided institutional and geoeconomic responses — a development bank, a cross-continental lending programme that galvanised infrastructure accretion without the legacy constraints of Western agencies, and a series of economic projects that eventually coalesced into the Belt and Road Initiative.

It is true that some of these have run into trouble. Nevertheless, the fact is China used its economic promise in 2008 to gain oversized economic and political influence that continues to stand it in good stead. It did this by offering itself as a vital additionality to the global order. At a time when the US was struggling to recover from the financial crisis and the Eurozone was tearing itself apart, it was China that promised stability and economic dynamism. The world wanted and needed an additional engine of growth and an additional source of investment. And so it also welcomed an additional centre of geopolitical power.

India is poised at a similar moment and with a similar GDP. Does it have the same gumption? As we enter 2024, this is the framework within which Indians must understand their place in the world today. The recent past teaches us that an India-sized economy of about $4 trillion can exert a huge influence. With vision and skilful diplomacy, it can carve a space for itself alongside economies that are four or five times large, like the United States, the European Union and China.

This is a real Indian opportunity in 2024, as Europe stagnates, the US turns inward and China deals with internal problems and its share of the global economy that is shrinking in nominal terms. The agenda for India’s next government must simply be this: Demonstrate India’s potential, and the additionality that it can provide for global growth, institutions, and security.

Additionality does not require extraordinariness. After all, China’s growth in recent years has not been extraordinary. But it had momentum, and that is what India has today. It has its own trajectory and the motive force, one better suited to a green and digital future. If China had mass manufacturing, the growth engine of the 2010s, India has its platform economy, the dynamo of the 2020s.

But additionality must have attributes. What Beijing offered 15 years ago was not an inchoate promise. There was a system, a schema, to the China proposition. This roadmap excited China’s partners. An entire future-focused architecture served as the loudest possible announcement that a $4-trillion economy would punch with the weight of a $15-trillion one.

Also, a new cooperation architecture needs to be put in place because India, in a very short while, will be spending serious money globally. The private sector is mobilising to support connectivity, supply chains, and resource resilience projects across the world. But public development finance will also grow alongside, and indeed, faster than India’s economy.

This is the substance behind India’s additionality. Even if we assume India grows at only 10 per cent a year in current dollars, below its recent benchmark, it will be a major new source of development finance. If India slowly but steadily raises its development cooperation budget to less than 0.5 per cent of its GDP by 2030, it will still have put around $70 billion into the global system. India is already the voice of the Global South; it will become the bank of the Global South.

This finance needs to be undergirded by India’s unique proposition, its own roadmap, and its own offering to the world. It urgently needs an outward-focused development finance corporation that can catalyse projects globally. It needs a bank, its own version of the China Development Bank, that will focus on global corporate needs beyond just trade finance. And it needs an imagery that is understood by others.

India’s government has shown this ambition at home. The prime minister’s Gati Shakti initiative links disparate infrastructure projects with a common vision. Similarly, we need an external engagement approach. Together with like-minded partners, India needs maps plotting priority infrastructure, connectivity routes, business and trading hubs and developmental projects. It needs to do this boldly and determinedly, identifying vital regions and sectors where it will resolutely plant the Tricolour. 2024 is the year for inking a world map described by India’s vision for its role in the world.

Source : Indian Express, December 13, 2023

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