{"id":348452,"date":"2025-10-22T11:23:13","date_gmt":"2025-10-22T05:53:13","guid":{"rendered":"https:\/\/forumias.com\/blog\/?page_id=348452"},"modified":"2025-10-22T11:23:13","modified_gmt":"2025-10-22T05:53:13","slug":"answered-examine-the-necessity-of-global-south-collaboration-in-navigating-the-global-economic-transformation-justify-the-construction-of-a-new-economic-deal-for-equitable-development","status":"publish","type":"page","link":"https:\/\/forumias.com\/blog\/answered-examine-the-necessity-of-global-south-collaboration-in-navigating-the-global-economic-transformation-justify-the-construction-of-a-new-economic-deal-for-equitable-development\/","title":{"rendered":"[Answered] Examine the necessity of Global South collaboration in navigating the global economic transformation. Justify the construction of a New Economic Deal for equitable development."},"content":{"rendered":"

Introduction<\/strong><\/h2>\n

As per the World Banks Global Economic Prospects (2024),<\/strong> developing economies face a decadal low growth of 4%, underscoring the urgent need for South-South collaboration amid global economic fragmentation and inequality.<\/p>\n

The Global Economic Transformation<\/strong><\/h2>\n

The 21st-century economy is witnessing a geo-economic realignment driven by:<\/p>\n

    \n
  1. US-China great power rivalry<\/strong>, reshaping supply chains and trade flows.<\/li>\n
  2. Technological disruptions<\/strong> through AI, Big Tech dominance, and digital colonialism.<\/li>\n
  3. De-dollarisation efforts<\/strong> and the emergence of new monetary blocs (e.g., BRICS Pay, Petro-yuan).<\/li>\n
  4. Decline of multilateralism<\/strong>, with WTO paralysis and weaponisation of sanctions.<\/li>\n<\/ol>\n

    This environment challenges the traditional neoliberal order and exposes structural asymmetries<\/strong> faced by the Global South \u2014 home to 85% of the worlds population but controlling less than 40% of global GDP (IMF, 2023).<\/p>\n

    Necessity of Global South Collaboration<\/strong><\/h2>\n
      \n
    1. Economic Sovereignty and Debt Sustainability<\/strong>: Over 60% of low-income countries are in or at risk of debt distress (IMF, 2024). Collective bargaining via platforms like G-77<\/strong>, BRICS<\/strong>, and New Development Bank (NDB)<\/strong> can ensure fairer debt restructuring and escape the debt trap diplomacy of both Bretton Woods institutions and regional hegemons.<\/li>\n
    2. Trade and Supply Chain Diversification<\/strong>: The pandemic and Ukraine crisis exposed supply chain fragility. Initiatives like Indias SAGAR<\/strong>, Africa Continental Free Trade Area (AfCFTA)<\/strong>, and ASEAN-India Trade in Goods Agreement<\/strong> showcase South-led resilience through diversification and localised production.<\/li>\n
    3. Technology and Digital Autonomy<\/strong>: Digital colonialism by Big Tech demands South-South cooperation in AI governance, data localisation, and cyber norms<\/strong>. The India Stack<\/strong>, adopted by countries such as the Philippines and Morocco, exemplifies scalable South-origin technological models.<\/li>\n
    4. Climate and Energy Justice<\/strong>: The Global South bears 90% of climate-induced losses but receives only 25% of green finance. Platforms like the International Solar Alliance (ISA)<\/strong> and Global Biofuel Alliance (2023)<\/strong> highlight Indias leadership in equitable energy transition.<\/li>\n<\/ol>\n

      The Case for a New Economic Deal<\/strong><\/h2>\n

      A new economic architecture must reorient globalisation towards equity, sustainability, and human welfare.<\/p>\n

        \n
      1. Institutional Reforms:<\/strong> Democratisation of IMF, World Bank, and WTO voting structures to reflect present GDP shares.<\/li>\n
      2. Fair Trade and Industrial Policies:<\/strong> Preferential market access for developing economies; protection of infant industries akin to East Asian developmental states.<\/li>\n
      3. Development Finance:<\/strong> Expansion of the BRICS Bank<\/strong>, Asian Infrastructure Investment Bank (AIIB)<\/strong>, and creation of a South Sovereign Wealth Fund<\/strong> to finance infrastructure, health, and education.<\/li>\n
      4. Debt-Relief Framework:<\/strong> Inspired by the Heavily Indebted Poor Countries (HIPC) initiative but led by the Global South to prevent political conditionalities.<\/li>\n
      5. Social Contract Renewal:<\/strong> State-led investment in welfare, digital infrastructure, and education to reduce inequality and promote inclusive growth \u2014 resonating with Amartya Sens capability approach<\/strong> and UNDPs Human Development Report (2023)<\/strong>.<\/li>\n<\/ol>\n

        Indias Role as a Bridge<\/strong><\/h2>\n
          \n
        1. Indias presidency of G20 (2023)<\/strong> and Voice of the Global South Summit<\/strong> positioned it as a moral anchor, advocating One Earth, One Family, One Future.<\/li>\n
        2. Through its Digital Public Infrastructure (DPI)<\/strong> and Vaccine Maitri diplomacy<\/strong>, India demonstrates South-driven global public goods delivery.<\/li>\n<\/ol>\n

          Conclusion<\/strong><\/h2>\n

          Echoing Joseph Stiglitzs Globalization and Its Discontents<\/strong>, a new economic deal rooted in South-South solidarity is essential to democratise globalisation, ensure inclusive prosperity, and restore faith in multilateralism.<\/p>\n","protected":false},"excerpt":{"rendered":"

          Introduction As per the World Banks Global Economic Prospects (2024), developing economies face a decadal low growth of 4%, underscoring the urgent need for South-South collaboration amid global economic fragmentation and inequality. The Global Economic Transformation The 21st-century economy is witnessing a geo-economic realignment driven by: US-China great power rivalry, reshaping supply chains and trade… Continue reading [Answered] Examine the necessity of Global South collaboration in navigating the global economic transformation. Justify the construction of a New Economic Deal for equitable development.<\/span><\/a><\/p>\n","protected":false},"author":10320,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"class_list":["post-348452","page","type-page","status-publish","hentry","entry"],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/pages\/348452","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10320"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=348452"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/pages\/348452\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=348452"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}