Thorny development path

The global economy has been gloomy in recent years due to the impact brought by many woes, including the COVID-19 pandemic, food and energy crises, climate change shocks, supply chain restructuring and interest rate hikes. These issues have weakened market confidence, reduced investment and consumption and led to economic slowdown. According to the International Monetary Fund, global growth will slow to 3.2 percent this year and further slow to 2.5 percent next year, with at least one-third of all countries in recession.

Meanwhile, the global economy is facing several risks. Among them, high inflation is a major concern, with the consumer price index in many countries standing at levels not seen in decades. The high dollar index is another concern. The US Federal Reserve has raised interest rates by 375 basis points so far this year, which pushed up the dollar index to a 20-year high, and caused financial vulnerability, especially debt distress in poor countries. Now one-third of emerging economies and 60 percent of low-income countries are in, or at high risk of, debt distress, and there will be a coming wave of sovereign defaults by developing countries.

What's more, the gloomy economic outlook is bringing more challenges to developing countries, especially low-income countries. This will worsen poverty and inequality and cause more difficulties for the international community to achieve the sustainable development goals of the United Nations. At a time when the world is in urgent need of international cooperation to address global issues, there is still competition among powers leading to geopolitical tensions. As UN Secretary-General Antonio Guterres warned: "Our world is in big trouble, divides are growing deeper, inequalities are growing wider and challenges are spreading farther."

Urgent call

Guterres called the GDI a plan of great importance in advancing the realization of the UN Sustainable Development Goals for 2030 and addressing the inequality and imbalance in global development.

Based on China's development experiences and governance model, the GDI embodies key ideas of the New Development Philosophy.

The GDI puts development as a top priority, and regards it as an important foundation for solving global challenges and meeting people's increasing desire for a better life. It insists that development is for the people and depends on the people, and the fruits of development are shared by the people. It calls for countries to improve people's well-being and livelihoods, promote inclusive development, address imbalances and inadequacies in development and leave no country behind.

The GDI advocates seizing opportunities brought about by technological development and pursues innovation-led development. It strikes a good balance between environmental protection and economic development, and pursues the building of a community which respects both man and nature.

The GDI also remains committed to result-oriented actions, and focuses on poverty reduction, food security, COVID-19 responses and vaccines, development financing, industrialization, climate change and green development, digital economy and connectivity as eight key areas of cooperation, providing China's plan to address short-term shocks, advance long-term transformation and translate development consensus into pragmatic cooperation.

Faster steps

China has been ramping up efforts to fulfill its proposal that "on the road to the well-being of all mankind, no country or nation should be left behind". The country, with the GDI as a platform, has charted a path to provide development funds, expertise and high-tech sharing and capacity-building as public goods to promote global development.

Since the initiative was launched, China has been stepping up efforts to present and deliver the GDI through all platforms.

The country is also working to increase investment in development aid resources. China has established the Global Development and South-South Cooperation Fund, and will increase its funding for the China-UN Peace and Development Fund. The country will set up a special loan for China-ASEAN common development, and stands ready to provide more resources for global development cooperation and work with all other parties to build a global community of development.

China is working to promote development knowledge and experience-sharing. According to the GDI, China is willing to enhance pragmatic cooperation on poverty reduction, food, energy, health and other areas. The country will make a list of items for practical cooperation, set up an open-ended pool of GDI projects and draw up a roadmap for GDI implementation. China has submitted 15 projects to the "G20 Action for Strong and Inclusive Recovery", and has participated in five other projects within the framework.

The GDI is a useful platform to meet the immediate needs and long-term objectives of common development of the world, which has gained great support from over 100 countries and international organizations across the world, with more than 60 countries joining the Friends Group of GDI. China is stepping up efforts to work with all partners to advance GDI, promote global development and better achieve the UN's SDGs.

The writer is a researcher with the Ministry of Finance.