New Delhi: Finance Minister Nirmala Sitharaman, on Friday, described the persistent asymmetry of global financial flows as the main obstacle to sustainable development in the global south and warned that it continues to suppress long -term investments in pure energy, urban mobility and climate infrastructure.
Sitharaman, who spoke at the Governor’s New Development Bank (NDB) Governors in Rio de Janeiro, urged global financial architecture to better in line with the developmental priorities of new and low -income economies.
“Asymmetry in global financial streams discourages long -term investments and delay critical progress, especially in renewable energy, urban mobility and durable climate infrastructure,” she said.
“The result is an expanding gap between development potential and financial realization,” she added.
Sitharaman also emphasized the complexity of balancing growth and sustainability, especially in democracy, such as India, where the expansion of housing, health, education and livelihood remains a critical imperative.
“Therefore, the real challenge is not the choice between development and sustainability, but the design of politicians, especially in cooperation with developing markets and developed countries that promote inclusive growth and strengthen sustainable development,” she said.
The Minister of Finance added that India is actively aligning his financial system with the climate targets and the development of the ecosystem of the green finance ecosystem.
“India has laid a strong foundation for green finances in recent years – steps of sovereign green bonds, mandates to publish ESG and proposed taxonomy to finance climate,” Sitharaman said. “We build more resistant, more inclusive and innovative financial architecture that connects capital with climatic imperatives.”
The Minister of Finance emphasized the role of institutions, such as the new development bank in transforming the financing of development for global south.
“The NDB has been set up to bridge a clear gap in global financial architecture that responds to the unique developing economies,” she said.
NDB, formerly BRICS Development Bank, was founded in 2014 by Brazil, Russia, India, China and South Africa to mobilize infrastructure and sustainable development projects.
Based in Shanghai serves as a trusted alternative to Western institutions such as the World Bank and the International Monetary Fund.
Sitharaman’s remarks in Brazil reflected concerns that she raised at the beginning of this week at the 4th International Conference on FFD4 (FFD4) in Spain Seville, where she called for urgent reforms of the global financial system, widespread climate and financing and restructuring of debt, especially for vulnerable economies.
Calls come in the middle of a growing alarm over the progress of sustainable UN development.
The UN estimates an annual lack of financing of $ 4 trillion development and seriously limits the ability of countries to invest in basic services and transition to sustainable, inclusive growth.
(Tagstotranslate) Global financial streams
