Global Development Compact

Hon’ble Prime Minister of India Shri Narendra Modi proposed in his Closing Remarks at the 3rd VoGSS the idea of Global Development Compact for the Global South. The Prime Minister also made it clear that India stands with partner countries not just for their assistance but, India is committed towards development in the Global South. Even though ‘development compact’ uses plurality of modalities, their convergence, interlinkages, and intersubstitutability are considered important under such partnerships to ensure the intended development impact.

The modalities are:

Trade for Development: Trade has always been considered an engine of growth and development. This modality in the ambit of ‘development compact’ for the Global South goes beyond the usual trading of goods and services to assisting the Global South countries in providing them trade facilitation and trade promotion initiatives, along with providing them trade finance, and by providing them Tariff concessions under Duty Free Quota Free (DFQF) Scheme. Capacity Building for Sustainable Growth: Traditionally, the Global South has faced challenges in the realm of enhancing the capacities of their human resources. The capacity building and training programmes for sustainable growth have evidently evolved from simple training modules aimed at handholding and sharing of technical expertise to more sophisticated domains of scientific and technical knowledge, extending to professional fields like management, administration, policy and global governance. Technology Sharing: Another challenge in the development of Global South has been the lack of access to affordable, effective, and adaptable technologies. This modality in the sphere of ‘development compact’ for the Global South through joint R&D projects, co-creation of knowledge, establishment of technical institutes, and development of shared indigenous technology will assist the Global South in achieving their desired goals. Project specific Concessional Finance and Grants: Availability of finance at sustainable interest rates, access to grants for development, and ODA has been in short supply to the countries of the Global South. This modality of ‘development compact’ aims to fill the gap in this regard by providing lines of credit, grants, and providing humanitarian assistance to the countries in times of distress.