By Suleman Chitera
Leaders at this year’s G20 Summit have reaffirmed their commitment to building a fairer global economic system, pledging stronger support for low- and middle-income countries facing deep financial constraints.
In a joint declaration released after high-level deliberations, the world’s biggest economies vowed to step up efforts to dismantle the unfair international debt regime, which has long restricted the growth of developing nations.
Italy Announces Major Debt Relief for African Countries
One of the biggest highlights of the summit came from Italy, which announced plans to cut by 50% the debt owed by African countries.
The Italian government says the initiative is designed to help African economies regain stability, redirect funds toward development, and reduce their dependence on costly external borrowing.
Economic observers say this gesture could influence other G20 members to follow suit, potentially triggering broad reforms in how global debt is managed and restructured.
Call for a New Development Approach
The G20 declaration goes further to challenge the old development model that treated countries in the Global South as mere exporters of raw materials.
Leaders insisted that the world must shift to a more equitable system that promotes:
Industrialization and value addition
Technology transfer
Investment in manufacturing
Fairer trade relations
According to the statement, meaningful global development can only take place when resource-rich nations are empowered to process and export finished products instead of shipping out unprocessed commodities.
Climate Change Support Takes Centre Stage — With Some Resistance
Another key topic was climate change, with discussions focused on how countries with limited financial capacity can be supported to adapt to and mitigate the effects of global warming.
However, the talks were not without tension. The United States opposed parts of the climate financing proposals, creating friction within the group.
Despite this, most G20 members stressed the importance of coordinated action, arguing that developing nations bear the brunt of climate-related disasters despite contributing the least to global emissions.
A Crucial Moment for Global South Economies
With commitments on debt relief, development reforms, and climate action, this year’s G20 Summit could mark a turning point for countries in the Global South—if the promises made are implemented.
As the dust settles on the summit, attention now shifts to the willingness of G20 governments to translate their declarations into real, long-term change for struggling nations.
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