Sonipat, March 13
Global economy now depends on the contributions of the Global South. More than half of global growth is now attributable to them.
Several nations, in the Global South, including Sri Lanka, Pakistan, Ghana, Peru and Guatemala are reeling from the triple impact of the Covid-19 induced supply chain challenges, the worldwide food and energy crisis, and climate disaster.
Examining the long-term tendencies in economic growth in the Global South is more crucial than ever as the world becomes more linked and integrated. It is true in Asia, Africa, Central and South America. Speakers were of the opinion that economic prospects are bright but require sustained intervention from the Government and regional bodies to further address fundamental issues of poverty, primary education, sustainable development and equitable health. According to the World Bank, global south economies increased 4.4 per cent and global north economies 2.7 per cent in 2019. New sectors, an expanding middle class, and more foreign commerce make it successful.
Prof. (Dr.) C. Raj Kumar, Founding Vice Chancellor of O.P. Jindal Global University remarked about the growing need for institutions and governments to build scale and innovate on human development.
"Developing nations are establishing self-resilient regional partnerships to deal with these crises. Promoting more sustainable and equitable economic development, North-South cooperation is essential. Recent discussions at the Global Finance Conclave held at the O.P. Jindal Global University campus in Sonipat, Haryana, addressed a series of opportunities and challenges posed by the Global South economy. Professionals and thought leaders from the domains of finance, economics, technology, law, and public policy from India, the United States and the United Arab Emirates attended this year's conclave," he said.
Technology will continue to play a major role in the global south economies. Several emerging countries in the South including India and China have thriving technology industries with innovative startup ecosystems. Speaking about the event and the prominence of Prospects of Global South, Prof. Ram B. Ramachandran, Professor & Vice Dean at Jindal School of Banking & Finance, and the Conclave chair, said "Reserve Bank of India and Ministry of Finance roll out of eRupee, India's digital currency can help reach the last mile of the unbanked in India".
He further attributed the conclave to exchange of new ideas to discuss "the multidimensional challenges and opportunities facing Global South from a financial, economic, environmental, and technological perspective".
It is widely believed that mass migration from the Global South to the Global North in quest of economic freedom contributes significantly to the impoverishment of smaller governments or emerging countries.
Talking about brain drain and the impact on talent, Professor (Dr.) Bharat Ramaswami, Dean, Academic Affairs, Ashoka University said "Brain drain isn't necessarily a huge issue for economies for China and India where there is a healthy movement of talent in both directions. However, talking about the global South at large, countries with low growth opportunities must focus heavily on primary education to prevent further loss of labour and talent."
In addition to challenges posed, the global South also presents opportunities for sustainable growth and development. The rising interest in responsible investing among consumers and investors presents a significant potential for adopting ESG in the global south.
Demand for ESG-aligned goods and services has been on the rise in recent years, thanks to a rising public consciousness about the need of considering the economic, social, and environmental consequences of corporate decisions. Businesses and investors may meet this need and establish themselves as industry leaders in sustainability and social responsibility by adopting an ESG approach.
Dr. Nirupama Kulkarni, Research Director at the Centre for Advanced Financial Research and Learning (CAFRAL), Reserve Bank of India, discussed the research being done on developing models that can reduce Non Performing Assets in state run banks both in India and Global South.
Commenting on the success of this initiative, Professor (Dr.) Dayanand Pandey, Dean JSBF, shares, "The Global Finance Conclave 2023 organized by the Jindal School of Banking & Finance has been extremely insightful and enriching. The conclave could bring the thought leaders of Economics, Finance, Banking & Law on a platform to integrate the innovative ideas for a social impact."
The favourable benefits of globalization, technical innovation, and increasing investment have allowed many countries in the Global South to achieve previously unimaginable levels of economic growth and development. The conclave concluded that a razor sharp focus on executing on sustainable programs, engaging people at the grassroots level and further collaboration across Global South countries is key to making a lasting impact.
