As world leaders surprised audiences at the G20 summit a day earlier than expected by issuing a joint statement on the war in Ukraine, India’s finance minister began talking about his country’s role in making progress on a different issue: aid.
Finance Minister Nirmala Sitharaman said India was “done talking”.
He listed a list of economic and development finance achievements, starting with reforms to the Multilateral Development Banks, or MDBs, working to drive economic growth in poor countries. These measures, he said, are aimed at making banks “bigger, better and more efficient”.
The MDBs, which include the World Bank, BRICS’ own New Development Bank and a dozen others, have been reviewed by an independent “expert panel” appointed by India and led by former Harvard president Larry Summers and NK Singh. , an Indian economist.
The review found that current funding – $192 billion for 2022 – is now two-thirds of what it was during the financial crisis and equal to a fraction of the GDP of the world’s developing countries. Mr. Summers and Mr. Singh has written.
Mrs. Sitharaman announced only one reform in banks. “Capital Adequacy Structures” It will open an additional $200 billion in credit to the Global South.
He listed seven more achievements, including expanding India’s digital-public infrastructure to other countries through a two-year funding-inclusive program — again focusing on the Global South.
Climate finance has also undergone significant change. The United States, the European Union and other wealthy nations pledged more than a decade ago to fund $100 billion a year to help poor countries transition to clean energy and adapt to future climate risks. However, they are sidelined from questions of finance.
On Saturday, however, Indian Prime Minister Narendra Modi issued a statement that shifted the group’s focus from climate finance to the development of biofuels. His comments cast doubt on his country’s commitment to the benefits of carbon-credit trading, although Indian officials later clarified that India was committed to it.
To end the day, several heads of government released more solid developments. India-Middle-East-Europe Economic Corridor – President Biden, Mr. — announced by Modi and Saudi Crown Prince Mohammed bin Salman — will channel oil, gas and other energies from the Persian Gulf north, south, east and through countries. West except Iran. However, the plan lacks key details including the duration.
