China’s Global Devt Initiative: What is in for Africa?

by Admin (Posted on July 30, 2022July 30, 2022)

“Right now, COVID-19 is still raging in the world, and profound changes are taking place in human society. The world has entered a period of new turbulence and transformation. It falls on each and every responsible statesman to answer the questions of our times and make a historical choice with confidence, courage and a sense of mission,” stated Chinese president Xi Jinping during his  76^th session of the UN General Assembly address. He then explained that to address this, the world “need[s] to foster global development partnerships that are more equal and balanced, forge greater synergy among multilateral development cooperation processes, and speed up the implementation of the UN 2030 Agenda for Sustainable Development.” He suggested this can be achieved through his proposed Global Development Initiative (GDI).

Xi reasoned that challenges like global economic meltdown, and food and energy insecurity are likely to hinder the achievement of the UN’s 2030 Agenda for Sustainable Development. Explaining that different countries have resorted to individualistic economic recoveries, leaving poor and developing countries’ concerns unattended, which risks widening the south – north development gap. “We must get a good grasp of the overarching development trend in the world, firm up confidence, and act in unison and with great motivation to promote global development and foster a development paradigm featuring benefits for all, balance, coordination, inclusiveness, win-win cooperation and common prosperity,” he concluded.

Quoting an ancient Chinese saying, “Only when the granary is full will people learn etiquette; only when people are well-fed and clothed will they know honor and shame,” Xi underscored the need for the world to be at peace, and for governments to work together worldwide, to ensure continuous development, with the aim of helping all people realize their dreams.

President Xi proposed the Global Development Initiative (GDI) because it would help in addressing people’s needs and dreams, and put the United Nations Agenda for Sustainable Development back on track.

Xi emphasized that GDI will help to balance development, stressing the need for countries to work together to promote economic recovery, arguing, “for us to break through the mist and embrace a bright future, the biggest strength comes from cooperation and the most effective way is through solidarity…The hardships and challenges are yet another reminder that humanity is a community with a shared future where all people rise and fall together…”

While GDI sounds interesting and ideal for addressing and reducing uneven development and economic recovery in developing countries, one wonders how Africa will benefit from it.

If implemented, GDI offers opportunity for countries worldwide to work to address current global challenges. Arguably, coming together to address global challenges is likely to bring together global leaders and experts to forge ways to move the world from the current economic meltdown evenly. Indeed, while promoting GDI, President Xi emphasized the value of working together, stressing that “we need to jointly build international consensus on promoting development.” He reasoned that working together is important in achieving political consensus. “It is important that we put development front and center on the international agenda, deliver on the 2030 Agenda for Sustainable Development, and build political consensus to ensure everyone values development and all countries pursue cooperation together,” he argued.

Further, GDI calls for joint ways of forging a development partnership. It stresses the importance of countries working together, and urges developed countries to fulfill their obligations, deepen cooperation. GDI also calls upon the North and the South to work in the same direction to forge a united, equal, balanced and inclusive global development partnership, leaving, “no country or individual … behind,” according to Xi.

A report by the World Bank painted a grim picture, projecting that global economic growth for 2022 would not be realised. Compared to 2021’s 5.9%, projections for 2022 have been reviewed downwards from the initial 4.1% to 2.9%, which represents a huge decline.

Separately, on Tuesday 26^th July, the International Monitory Fund (IMF) slashed global growth projections, and raised the inflation forecast, describing the current economic outlook as “extraordinarily uncertain,” and warning that risks to economic outlook are “overwhelmingly tilted to the downside”.

Worse for developing countries, IMF projected global inflation for 2022 and 2023 to increase to 8.3% and 5.7%, respectively. Inflation is projected to be 9.7% and 6.6% for developing countries and advanced ones respectively.

All the above shows the huge task countries have to realise the 2030 global agenda. However, aware that the GDI seeks to promote development and cooperation in key areas, like poverty reduction, food insecurity, health, education, and the environment, GDI will help all countries to realise global agenda 2030.

Presently, the GDI has been cited and supported by the United Nations and other international organizations, and nearly 100 countries. To benefit from this important initiative, African countries should fully back GDI since it addresses critical areas for the continent to realise the 2030 global agenda.  This can be achieved by working with Beijing to implement the GDI. This will help the world to attain sustainable peace, development and win-win cooperation, as the world builds a community with a shared future for mankind.

While countries worldwide are trying to recover from the economic meltdown, and avert possible recession, uneven recovery is very visible among both people and countries. That is why GDI calls for a people-centred approach to recovery programs and developmental projects.

Despite the economic challenges the world is facing, one can argue that with GDI, unity among world leaders, commitment to equality, and jointly fostering new drivers for global development, an even economic recovery is possible. As an ancient Chinese saying suggests, “One must not change one’s commitment or give up one’s pursuit even in the face of danger and risk.” A review of human history teaches us that the more difficult things get, the greater the need grows to stay confident.

That way, with win-win cooperation and unity among countries and all world leaders, GDI is the magic bullet the world needs as the world leaders strive to build the much-needed community, with a shared future for mankind, where humanity rises to challenges and builds a bright and shared future.

Allawi Ssemanda, PhD is a senior research fellow at the Development Watch Centre.

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