Prof. M K Bhat
Poverty anywhere is a threat to prosperity everywhere. World today is divided into global north and global south. The former enjoys a good life style while as the latter is in need of basic facilities of life. The former comprises of industrialized nations like USA, U. K, Canada, Europe, Russia, Turkey, Israel, Hong Kong, Japan, South Korea, Singapore, Taiwan, Australia, New Zealand etc while as the latter consists of Brazil, India, Indonesia and China, which, along with Nigeria and Mexico, are the largest Southern states in terms of land area and population besides these there are countries in abject poverty, indebted or at the brink of bankruptcy. The Global South is characterized by low income, dense population, low infrastructure, and often political or cultural marginalization. The Global South represents 85 percent of world’s population and enjoys only 39 percent of global GDP. The average life expectancy is 75 years for males and 82 years for females in developed countries while as it stands at 62 and 67 respectively in least developed countries. In global north people have enough to eat while as 10% of world population suffers from hunger. The level of poverty is evident by the fact that one in 10 people in the world lives below $1.90 a day. The capital flow remains within the periphery of developed north. Out of the total increase in FDI flows in 2021 ($718 billion) more than$500 billion or almost three quarters was recorded in global north and global south saw a modest increase. Despite all these difficulties United Nations sustainable development goal aims to end poverty in all forms and dimensions by 2030. This makes imperative to think whether we are really serious about the imbalance? Can there be sustainable development without equitable development? Is sustainable development a narrative to deviate attention from equitable development? Is global north ready to give passage to global south without any cost?
Historically the inequality between the world’s richest and poorest countries has not lessened over the years. In 1820 western Europe’s per capita income was three times bigger than Africa’s but by 2000 it was thirteen times as big. In addition, in 2013, Oxfam reported that the richest 85 people in the world owned the same amount of wealth as the poorest half of the world’s population. The share of India in world trade in 1950 stood at 1.78%while as in 2022 India’s share in global merchandise trade stood at 1.8% only.
It is worthwhile to point out here that the countries of global south remained behind in their economic growth mainly because; they were colonies, the hegemonistic approach of global north towards global south, unequal trade, political interference by developed north on the pretext of human rights or promotion of democracy, low participation in decision process of international financial forums. They also failed to join the different phases of industrialisation and therefore remained in the developing or underdeveloped state only.
The Global north is already technologically advanced and this advancement gives it an edge over global south countries in trade, and makes the global south to live in the vicious circle of low quality, low output and low income etc. The irony is that the global north despite technological edge invests more in R&D to woo markets to its side. Its expenditure on research and development is much more than the countries from global south. As per the latest available statistics, India’s spending on R&D is consistently increasing from last 10 years and has nearly tripled from 39,437.77 crore in 2007-08 to 1,13,825.03 crore in 2017-18 while as U.S. R&D Increased by $51 Billion in 2020 to $717 Billion.
India’s R&D expenditure as a percentage of GDP is only 0.7 percent, compared to 2.8 percent in the United States, 2.1 percent in China, 4.3 percent in Israel, and 4.6 percent in South Korea. This can be explained in a better way by the fact that artificial intelligence (AI) will contribute up to $15.7 trillion to the global economy by 2030 and all the regions of global economy will get benefitted but North America and China will get the maximum benefit. Countries in the Global South will experience a moderate increase due to the much lower rates of adoption of AI technologies.
The problems of global south were further aggravated by Russia Ukrine war, Covid – 19 and global economic slowdown. They are facing food crises, rise in energy costs, and increase in fertiliser prices as a substantial challenge due to supply chain disruptions caused by Russia Ukraine War. They are in the vicious circle of poverty, income inequality, food and energy insecurity, debt distress and climate change at present. As per FAO study in Nov,2022 titled “Responding to the Ukraine crises” If the conflict persists the global number of unnourished people could increase from 8 million to 13 million in 2022-23 with the most pronounced increase taking place in Asia Pacific, followed by Sub Saharan Africa, North east and North Africa.”
India with its philosophy of Vasudev Kutumbkum has emerged on the global scene as the protector of Global south. The other emerging power in the region i.e. China can’t do much because of its self- centered agenda of expansionism. India’s concern for such countries became quite clear by voicing the concerns of the global south at G- 20 Development Ministers meeting in Varanasi where Prime Minister Narendra Modi held “development is a core issue for the global south”. It also became emphatically clear when India supplied covid medicines free of cost to various poor countries, bailed out Sri Lanka from its crises etc. It is not only in G-20 but in G-7 and other forums also India has raised the concern of these countries. It becomes imperative on the part of global south to demand its share of world prosperity as a cohesive group. India’s attempt to add another note to the chorus of the global order in global south summit by holding “Unity of Voice, Unity of Purpose” as the theme of the summit. The summit was inaugurated by Hon’ble Prime Minister on 12th January 2023.
Prime Minister Narendra Modi unveiled development agenda for the Pacific Island Nations at FIPIC summit held at Port Moresby, the capital of Papua New Guinea. This development agenda is part of the Act East Policy of India. The role of India for these countries was eloquently elaborated by Mr. Marape PM of Papua New Guinea in these words “We are victims of global power play and we want you (India) to be an advocate for us and sit in those meetings,” he urged India to serve as the voice of the Global South in the G-7 and the G-20.
Modi assured the FIPIC members of India’s support in the field of sustainable development, science and technology and space application. His 12-point action plan announced at the third forum for FIPIC summit 2023 ranges from steps to boost health care, infrastructure in the island countries, to setting up regional IT center and cyber security centers and providing desalination units to address the water scarcity. He announced that India is ready to share its capabilities with the region without any hesitation. He further held that “India respects your priority. It feels proud to be your development partner. Whether it’s humanitarian assistance or your development, you can count India as a reliable partner. Our perspective is based on human values,”
It is in the interest of Industrialized global north to take care of global south as no producer can sell, if the buyer has no capacity to buy.
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