FM Nirmala Sitharaman stresses on need to push for reforms in multilateral institutions

India will push for reforms in the multilateral institutions including the International Monetary Fund and World Bank during its G20 presidency to make them more attuned to the needs of the developing world, finance minister Nirmala Sitharaman said Thursday.

"India appreciates the contribution of multilateral institutions and development banks in dealing with global challenges. However, with new challenges having emerged, including the Covid-19 pandemic, a major scale-up of response mechanisms is required and strengthening of multilateral institutions is a priority," Sitharaman said.

She was speaking at the Voice of Global South Summit, a virtual summit spearheaded by Prime Minister Narendra Modi.


She said the recent geopolitical tensions and the pandemic had aggravated the global debt vulnerabilities.

"If left unaddressed, these mounting debt vulnerabilities can trigger global recession and push millions into extreme poverty. Under India's G-20 presidency, financing for the social dimension of sustainable development is an important priority," Sitharaman said.

'Global South' is a term used to describe emerging and poorer nations in Asia, Africa, Latin America and Oceania, as opposed to the 'Global North,' which are primarily developed nations from North America and Europe.

"We strongly believe there should not be any first world or a third world, but just one world with a shared understanding for a common future," Sitharaman said while speaking on the theme of 'Financing People Centric Development'.

India is hosting the Voice of Global South Summit under the leadership of Prime Minister Narendra Modi with a participation of over 120 countries. The theme of the Summit is 'Unity of Voice, Unity of Purpose'.