Page 13 - Echoes of the Global South V2

other countries, particularly through state-directed banks or international financial institutions, can create long-term
dependencies and influence the recipient country's policy choices. China's lending to countries participating in the
BRI has been criticised as a form of "debt-trap diplomacy," where recipient countries may find themselves politically
and economically beholden to China. 20

Table 1: Economic Size for the US, EU and Global South Emerging Economies by GDP (current US$)

GDP (US$, in GDP (US$, in
Country/Group Relative Change (in %)
trillions) in 2015 trillions) in 2023
European Union 13.55 18.35 35.42

United States 18.30 27.36 49.51

China 11.06 17.80 60.94

India 2.10 3.55 69.05

Brazil 1.80 2.17 20.56

South Africa 0.35 0.38 8.57
Source: World Development Indicators

The realities of the global world order are currently at the precipice of a transition. Multilateralism is facing a significant
crisis, primarily driven by the inherent structural flaws in the existing multilateral frameworks and the evolving
geopolitical landscape. Institutions like the United Nations (UN) and the Bretton Woods Institutions, conceived in a
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post-World War II crisis context, are no longer fit for purpose in today’s rapidly changing world. The design of these
institutions is outdated, leading to their inability to address contemporary challenges effectively, such as supply chain
disruptions and global crises like the COVID-19 pandemic. Additionally, the crisis in multilateralism is exacerbated by
growing fragmentation and polarisation within global forums like the G20, where geopolitical tensions, such as those
stemming from the Russia-Ukraine conflict, have weakened the capacity to build global consensus on critical issues
like energy security, food security, and climate change. 22

The world is moving towards a multipolar configuration, marked by the emergence of multiple centres of power and
influence. This shift is evident in the increasing assertiveness of emerging economies like China, India, and Brazil and
the growing voice of the Global South. The 2023 Indian G20 presidency, for instance, has been a platform for India
to represent the interests of developing countries and to drive a more inclusive and action-oriented global agenda.
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Furthermore, the growing divergence in global economic and political strategies suggests a weakening of the unipolar
dominance that characterised the post-Cold War era, as seen in the diverse approaches to global issues like climate
change, trade, and technology. As the multilateral institutions fail to adapt, countries are seeking new alliances and
partnerships, moving towards a more decentralised international order.

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For the Global South, geoeconomics has represented both a challenge and an opportunity. On the one hand,
countries in the Global South have been on the receiving end of geoeconomic strategies deployed by more powerful
states, such as the United States and the European Union, for several years, making them susceptible to the burdens
of debt dependency, the challenges of competing in global markets dominated by larger economies, and the pressures

20. John Hurley, Scott Morris, and Gailyn Portelance, “Examining the Debt Implications of the Belt and Road Initiative from a Policy Perspective”, CGD Policy
Paper 121, Center for Global Development, March 2018, https://www.cgdev.org/sites/default/files/examining-debt-implications-belt-and-road-initiative-
policy-perspective.pdf
21. Habib Ur Rehman Mayar, “Multilateralism in an age of crises – Where do countries at the last mile of development fit in?”, International Organization and
United Nations Studies, Columbia University, September 11, 2023, https://multilateralism.sipa.columbia.edu/news/multilateralism-age-crises-where-do-
countries-last-mile-development-fit
22. Monica Herz and Giancarlo Summa, “The UN and the multilateral system are in crisis – what the Global South must do”, The Conversation, September 28,
2023, https://theconversation.com/the-un-and-the-multilateral-system-are-in-crisis-what-the-global-south-must-do-214515
23. “Towards a Brighter Tomorrow: India’s G20 Presidency and the Dawn of a New Multilateralism”, Prime Minister’s Office, Government of India, November 30,
2023, https://pib.gov.in/PressReleaseIframePage.aspx?PRID=1980993
24. Gazala Fareedi, “In Search of Global South Liberalism: Prospects and Challenges” in Global Political Economy, Geopolitics and International Security,
Palgrave Macmillan, Singapore, June 12, 2024, https://doi.org/10.1007/978-981-97-2231-0_4

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