The indebtedness, the prospects for economic growth and the positions on economic sanctions to Russiain addition to supporting Ukraine, they will press alliances and cohesion capacity at the meeting of finance ministers and central banks of the G20 this week in the city India from Bangalore.
The ministerial meeting, the first high-level meeting under the presidency of the G20 of India, coincides with the anniversary of the Russian invasion of Ukraine, which means that it will be part of the agenda, especially of the United States, despite the reservations of New Delhi to generate confrontations on this matter.
India has not been at the head of a diverse group since it assumed the presidency of the Non-Aligned group from Cuban leader Fidel Castro in 1983, then in the hands of Prime Minister Indira Gandhi, seen as “the most powerful leader in the third world”.
“Most of the global challenges have not been created by the Global South, but they affect us more”Indian Prime Minister Narendra Modi said last month in a video conference with leaders from the region for the “Voice of the Global South” summit.
THE GLOBAL SOUTH
Debt restructuring and financial mechanisms for emerging economies are priority issues, especially for India, which aspires to become “the voice of the global south” at a critical time for its own neighbors.
Sri Lanka, Nepal, Bangladesh and the same Pakistan They have seen their reserves decrease to historic lows, depending on international financial organizations and China.
Progress in this matter is a challenge for the G20 due to how the dynamics of the past have changed, when states turned to Western-dominated institutions such as the world Bank or the International Monetary Fund (IMF)given the current situation in which China is one of the largest creditors.
“Global debt has exceeded $300 trillion. Even a 1% interest rate increase will shift $3 trillion of money from indebted countries to debt providers.” the economic analyst Ranjiv Ranjan Singh pointed out to EFE.
“So we are going to see financial distortions where financially strong companies or countries will become stronger, while financially weak countries or companies will take a hit.” added the also deputy editor of the financial magazine Fortune India.
US Treasury Secretary Janet Yellen will seek on the one hand to forge alliances with countries to mitigate the spillover effects of the Ukraine war and on the other to put pressure on China to allow strong commitments on debt restructuring .
“The world is now in a debt trap”the analyst opined.
Restructuring is essential for many countries with liquidity problems that, heavily indebted to Beijing, turn to the IMF again.
Analyst and former government adviser Mohan Guruswamy sees little chance of the group reaching joint agreements in this meeting, due to divergent forces and Washington’s need to isolate Moscow.
“They can’t unite, they can’t see themselves acting together”holds.
WAR
The meetings, which began today with the meetings of delegates and will conclude on Saturday with the last session of the ministers, coincide with the first anniversary, on February 24, of the Russian invasion of Ukraine.
According to details from the US Treasury Department, during the G20 Secretary Yellen “se will join allies in holding Russia accountable for its illegal invasion of Ukraine and partner with countries to mitigate the fallout from war.”
However, any attempt to move forward as a bloc on this issue will run up against the Group’s Chairmanship, India, which since the beginning of the conflict has decided to assume a neutral position in the war, avoiding condemnation of Russian actions in all forums. international ones you have attended so far.
New Delhi, on the other hand, has decided to increase purchases of Russian oil to record levels, in order to, taking advantage of the discounts offered by Moscow, mitigate the effects that the global crisis generates in this country with more than 1.4 billion inhabitants.
For Singh, at the moment the world has four axes. On one side are the Western nations, while on the other side is Russia. China is rapidly emerging as the third axis of power, and then there is India.
“Russia-China combined is a huge threat to Western supremacy. Through the G20 we will be able to see democratic forces uniting against the Sino-Russian alliance.” concludes.
Source: EFE
Source: Gestion
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