US Focuses on Debt Crisis at G20, India Highlights Global Challenges
New Delhi [India], September 5: The United States has made resolving the debt crisis in low-income countries its top priority for the upcoming G20 meeting. More than 50% of these nations are struggling with debt distress, said US’ G20 Sherpa and Deputy National Security Advisor (NSA) Daleep Singh on Wednesday.
The next G20 summit will be held in Rio de Janeiro, Brazil, in November 2024. Speaking at an event titled ‘India-US Economic Partnership,’ hosted by the Observer Research Foundation (ORF), Singh emphasized the need for the US to develop its economic tools to influence Beijing’s behavior and support debt-stricken countries.
Singh stated, “From a US perspective, our number one priority for our G20 is to break the debt impasse in the developing world. More than 50% of low-income countries are in or near debt distress. There are more than three dozen countries that are spending more on debt service than healthcare, education, and infrastructure combined.”
He added, “Until we break the debt impasse in the developing world, and much of the claims on these countries are owned by richer countries, namely China, we have to come together on a solution.”
Reflecting on the past G20 summit in India, Singh praised New Delhi’s success in achieving consensus despite differing values and interests. He noted, “Last year’s G20 in Delhi was a masterful demonstration of how to bring together countries that don’t necessarily share all the same values and make the same interests towards a consensus statement.”
Singh also discussed the economic implications of sanctions, highlighting the unintended consequences and the need to understand who bears the burden and who benefits. He said, “If we want to forge an enduring set of alliances with countries that have shared interests, the way is not through sanctions. It’s going to be through economics and technology.”
India’s G20 Sherpa, Amitabh Kant, praised New Delhi’s G20 agenda, particularly in Sustainable Development Goals (SDGs), green development, and technological transformation. He also highlighted ongoing conflicts and the climate crisis.
Kant said, “The biggest challenge is the conflict in the world now, like the Russia-Ukraine war and the Middle East conflict. The second crisis is climate action. 2023 was the hottest year, and 2024 is going to be even hotter. Thirdly, the avoidance of new technologies, like AI and quantum computing, which have the potential to transform lives but also need to be regulated in a pro-innovation manner.”
Kant emphasized the importance of India’s share in global exports and the need to work on global value chains. He said, “If India wants to achieve high growth rates, it needs to work closely with America and intertwine itself with global value chains.”
He added, “Indian manufacturers must learn the art of penetrating the American market, just like Japan, Singapore, and Taiwan did in the past.”
Doubts Revealed
Debt Crisis -: A debt crisis happens when a country owes a lot of money and has trouble paying it back. This can make it hard for the country to buy things it needs, like food and medicine.
G20 -: The G20 is a group of 20 important countries that meet to discuss and solve global problems. India and the US are part of this group.
Low-income countries -: These are countries where most people do not have a lot of money. They often need help from richer countries to improve their living conditions.
Debt distress -: Debt distress means a country is struggling to pay back the money it owes. This can lead to big problems like not being able to afford important services for its people.
US’ G20 Sherpa -: A G20 Sherpa is a person who helps prepare for the G20 meetings. Daleep Singh is the US’ G20 Sherpa, meaning he helps the US get ready for these important discussions.
Observer Research Foundation -: This is a think tank in India that studies and discusses important issues like politics and economics. They host events to share ideas and solutions.
Economic tools -: Economic tools are methods used to help improve a country’s economy, like giving loans or reducing taxes. These tools can help countries in debt distress.
Sanctions -: Sanctions are penalties or restrictions put on a country to make it change its behavior. They can include things like stopping trade or freezing assets.
India’s G20 Sherpa -: Amitabh Kant is India’s G20 Sherpa. He helps India prepare for the G20 meetings and discusses India’s role in solving global problems.
Global conflicts -: These are fights or wars between countries or groups that affect many people around the world. Solving these conflicts is important for global peace.
Climate action -: Climate action means taking steps to protect the environment and reduce the effects of climate change, like planting trees or using renewable energy.
Technological transformation -: This means using new technology to change and improve how things are done, like using computers and the internet to make work faster and easier.
Global exports -: Global exports are goods and services that a country sells to other countries. This helps the country’s economy grow.
Value chains -: Value chains are the steps involved in making a product, from getting raw materials to selling the finished product. Each step adds value to the product.