Sakshi Post Exclusive Interview: ‘Countries in Global South Must Continue to Show Greater Spirit of Collaboration to Usher in Inclusive and Sustainable Growth

The developing world requires billions of dollars each year in investments to help them climb the ladder towards the achievement of United Nations' Sustainable Development Goals. Countries in the Global South as they are referred to, require financing across health, education, public infrastructure, skilling, and livelihood creation, so they can develop sustainably. In an exclusive interview with Reshmi A.R., Smita Jacob, Director Policy, Asian Venture Philanthropy Network, describes the challenges in equitable development and the role of global institutions in helping usher in pro-planet progress.

1. What should be the immediate priorities of countries in the Global South, to enable them to achieve SDG goals?

Countries around the world, including those in the Global South have committed to prioritizing progress for those who're furthest behind. Achieving the 2030 Agenda for Sustainable Development is a consolidated step in that direction. To ensure the same, identifying the need for food security and energy transition as the need of the hour is crucial. Even in India, the Government is taking concrete steps including the shift to renewables and an encouraging push towards climate financing and public-private partnerships at large. These are bound to get the ball rolling on building momentum toward lasting change.

2. What are the ways in which G20 can help developing countries access tools needed to advance sustainable development?

The G20 has always focused on low-income, developing countries and inclusiveness has consistently been an underlying theme of the Summit. At G20 Indonesia 2022, it was reiterated that strong, sustainable, and inclusive growth and a greater spirit of collaboration amongst countries in the Global South needs to continually be seen to address global challenges. With the baton of the G20 Presidency being passed within the Global South to Indonesia, India, Brazil & South Africa in the coming years - a unique occurrence in the history of the G20 Summit - Global South countries can continue to build focus on the issues being faced by the Global South. By taking the helm of the summit, the countries now have an unchallenged platform to voice their concerns. 

In terms of the tools that developing countries can use to advance sustainable development, one of them is by joining or building Financial Alliances that are working toward a climate-positive future. Helping the transition to a net-zero global economy, by using the platform that G20 provides, should be looked at seriously by all member countries - as the decarbonization of the global economy will help the complete realization of the SDGs. For example, the G20 Indonesian Presidency launched the Global Blended Finance Alliance, which will help improve blended finance mechanisms in developing countries as well as developing small archipelago states, to bridge the gap in financing SDG programs. Further, creating new international financial architecture with G7 nations on the table is crucial to achieving economic stability and sustainable growth.

Secondly, the G20 Impact Agenda is of utmost importance and must be followed by member countries to tackle the most significant issues like gender inequality. 

Lastly, actively participating in focused engagement groups including Business 20 (B20), Women 20 (W20) & Youth 20 (Y20) that deal in a consolidated representation of interests, expertise, and concrete policy proposals in these areas can also help the Global South remain at the center of the conversations of a lasting, inclusive approach to sustainable development. 

3. What is the extent of the development finance gap that emerging economies are staring at, especially post-COVID-19?

Post the pandemic, the projected USD 1.7 trillion shortfall incurred in 2020 adds to an existing gap of USD 2.5 trillion in annual financing for developing countries toward achieving the 17 SDGs by 2030. This risks a significant reduction in the financing available to economies that are still developing.  

According to the OECD, while official development finance is an important countercyclical force in the short-term and tax revenues remain the only long-term viable source of financing for many public services, no single source of development finance can take up this challenge alone. Actors in development finance and private financing need to collaborate closely to “build back better” for a more equitable, sustainable and eventually, resilient world. 

Catalytic capital, in this context, can also be a useful tool - as it has the power to bring together philanthropy, private investors and public sector to jointly address the impact financing gap, and has the power to leverage the entire ecosystem to collaborate.

4. How is AVPN helping developing countries bridge the financing gap for attaining development goals?

As the most wide-spanning network of social investors across the Asia Pacific, AVPN is committed to working strategically and actively in the direction of streamlining capital to middle and low-income countries in Asia. This increased flow of impact capital achieved through means of catalytic and blended finance is then put towards achieving the SDG goals. AVPN and its partner organizations invest in economic empowerment across the Asia Pacific to drive change in crucial areas including combating climate change, introducing sustainable tech and gender justice. 

At an official B20 side event on November 12, designed to amplify the voices of the social investment community in the final run-up to the G20, AVPN announced the following commitments:

•  A USD 25 million Asia Gender Equality Pooled Fund with support from Foundation CHANEL, Bill and Melinda Gates Foundation, The Target  Foundation and members of AVPN’s Asia Gender Network which will invest in women’s economic empowerment across the Asia Pacific region.
• USD 3M Sustainability Seed Fund, with support from Google.org and Asian Development Bank, launched to combat climate change and drive sustainability through technology in the Asia Pacific.
• A strategic partnership with the Global Blended Finance Alliance to catalyze the growth of blended finance in Asia.
• The launch of a dedicated Gender focused MSME TaskForce, supported by Visa Foundation that will make recommendations to governments on how to support and grow women-led and women-focused businesses across the Asia Pacific region.
• The launch of an initiative to promote Principles for Gender Lens Giving in partnership with the Asia Gender Network (AGN) and UN Women, across the entire community of social investors in Asia.