Global Conflict Risks Call For Stronger Multilateral Cooperation: FM Sitharaman

New Delhi, Jun 12 (KNN) Finance Minister Nirmala Sitharaman on Thursday said the adverse consequences of global conflicts and uncertainty fall disproportionately on developing countries and the Global South, calling for strengthened multilateral cooperation to build resilient economies and ensure inclusive growth.

Sitharaman was addressing the Global Convergence for Growth Summit, presided over by French President Emmanuel Macron and attended by top leadership from all G7 nations, along with India, Brazil, China, Kenya, South Korea, and the International Monetary Fund. 

The summit focused on supporting balanced global growth anchored in an efficient multilateral framework.

Supply Chains and Critical Minerals

In her intervention representing India, Sitharaman said recent global developments have underscored the importance of resilient, diversified, and geographically distributed supply chains, particularly for critical minerals, PTI reported.

"The situation demands coordinated global action. We must strengthen multilateral cooperation to build resilient economies, accelerate sustainable development, and ensure inclusive growth that benefits all," she added.

On Global Imbalances

Addressing the summit virtually, Sitharaman noted that global imbalances often reflect underlying differences in demographics, stages of development, resource endowments, and economic structures across countries. 

She said, "Our focus should, therefore, remain on excessive and persistent imbalances while recognising that the scale of domestic needs varies significantly across countries."

The finance minister stressed that the burden of adjustment should not fall disproportionately on countries that are not responsible for generating these imbalances. India, she said, remains largely peripheral to both the origination and propagation of global imbalances, yet continues to face their spillover effects.

Call for Stronger Multilateral Institutions

Sitharaman emphasised the need to strengthen confidence in multilateral institutions and ensure they remain responsive to the needs of developing countries. 

She called for Multilateral Development Banks that are better resourced, more effective, and more representative, capable of delivering significantly greater financing to developing countries and emerging economies. Enhancing their financing capacity, operational agility, and responsiveness, the minister said, would be critical to addressing the challenges facing the Global South.

(KNN Bureau)