Global South shouldn't be left to bear war burden, needs financial backing: PM to G7, Pg1

Key Highlights:

• Prime Minister Narendra Modi addressed the G7 summit in Evian-les-Bains, France, alongside US President Donald Trump.
• He highlighted that the Global South should not solely bear the burden of disruptions in fuel, fertilizer, and food supply chains caused by the West Asia war.
• Modi urged international financial institutions to develop robust support mechanisms for vulnerable nations to absorb economic shocks.
• He proposed the creation of an International Mobilisation Partnership for Accelerating Connectivity and Trade (IMPACT).
• The Prime Minister also suggested a Global Skills Partnership to leverage the demographic complementarity between developed and developing nations.

PM at G7.png

Detailed Insights:

• The near-closure of the Strait of Hormuz has disrupted supplies of LPG, LNG, diesel, petrol, and fertilizers, leading to increased prices and economic hardship.
• Modi emphasized that India's growth story is one of inclusion, scale, and democratic empowerment, inspired by 'Sabka Saath, Sabka Vikas, Sabka Vishwas, Sabka Prayas'.
• He connected India's G20 Presidency and the India-Middle East-Europe Economic Corridor (IMEC) to the vision of shared development.
• The proposed IMPACT initiative aims to combine G7 capital, India’s talent, and the ownership of Global South countries for connectivity projects.
• The Global Skills Partnership seeks to facilitate skill mapping and trusted skilled mobility, addressing the aging populations in developed countries and the young talent in the Global South.
• Modi stressed that true growth should be inclusive, questioning "Growth for whom, with whom and in what direction?".
• Representatives from the World Bank, IMF, OECD, and African Development Bank were also present at the summit.

Key Concepts Involved:

• Global South: A term referring to developing countries, primarily located in Africa, Asia, and Latin America.
• International Financial Institutions (IFIs): Organizations like the World Bank and IMF that provide financial assistance and policy advice to countries.
• Strait of Hormuz: A narrow, strategically vital waterway connecting the Persian Gulf to the Arabian Sea, crucial for global oil trade.
• India-Middle East-Europe Economic Corridor (IMEC): A proposed multinational infrastructure project aimed at enhancing connectivity between India, the Middle East, and Europe.