Toward better global governance
China’s solid support for G77 reflects deep commitment to promote a more equitable world order
This year marks the 60th anniversary of the Group of 77, the largest organization of developing nations with over 130 members. It is noteworthy that China, while not a formal member, remains a staunch ally for inclusive and sustainable development.
While independence was the hallmark six decades ago, the inexorable ascent of the Global South nations today draws extensive discussions on collaborative strategies to address inequality and inadequate growth, which has been affected by hegemonic power operations and unfair world political and economic mechanisms.
The Third South Summit in Kampala, Uganda, organized last month by the G77 and China with a theme “Leaving No One Behind”, witnessed strong voices of leaders from the Global South and the United Nations for enhanced collaboration for more equitable global governance systems to achieve shared and sustainable development.
The existing global governance systems have long been criticized by leaders in Africa, Asia and Latin America for favoring the West and providing no safety net for distressed developing countries. Calls for a reassessment of the International Monetary Fund (IMF) and World Bank stem from concerns that their structure, location and mandates are ill-suited to address evolving global dynamics. The US, a key architect of these institutions, wields significant influence due to its substantial shareholdings and the entities’ headquarters location in Washington.
UN Secretary-General Antonio Guterres critiqued the outdated international system, noting that “global institutions reflect the world that built them 80 years ago, when many African countries were still colonized,” and that “they are no longer fit for purpose”. Dennis Francis, president of the UN General Assembly, also echoed the urgency of reform, asserting that multilateral organizations must swiftly adapt to recognize and leverage the significance of the Global South for a more equitable global order.
Extending political backing and financial contributions since the early 1990s, China’s engagement underscores its commitment to the G77’s objectives. This collaboration highlights a nuanced global landscape where nations, beyond formal affiliations, foster mutual support for shared developmental aspirations.
As the G77 commemorates its diamond anniversary, it is crucial to recognize China’s substantial role in bolstering the group’s endeavors. This collaboration showcases Beijing’s commitment to fostering cooperation and solidarity among developing countries, emphasizing a shared vision for equitable global development. China’s ongoing engagement reflects a nuanced approach to international relations, blending political advocacy and tangible financial support to amplify the collective voice of developing nations on the global stage.
As the Kampala summit advocated transformative measures within international organizations including the UN, World Trade Organization (WTO), IMF and World Bank, Chinese Vice-Premier Liu Guozhong emphasized the idea of collaboration among Global South nations for high-quality cooperation, expressing optimism about the significant potential in their endeavor.
Like others in G77, China has underscored the necessity of enhancing international development agencies, especially in supporting the Global South — comprising Latin America, Asia, Africa and Oceania. Their joint push for efficiency reflects a shared commitment to fortify global institutions, managing a complex landscape where cooperation and reform are imperative for sustained development and equitable international engagement.
China’s pivotal role in founding the New Development Bank, Asia Infrastructure Investment Bank, and Silk Road Fund exemplifies the nation’s commitment to reshaping the global financial landscape. These institutions offer vital alternatives for nations excluded from global financial markets, channeling funds into substantial projects across Asia and beyond.
The transformative impact of such ventures underscores China’s dedication to fostering a more inclusive, equitable international economic framework, marking a departure from historical imbalances and cultivating a collaborative future for nations beyond the traditional power centers.
Simultaneously, China calls on developed nations to fulfill their development and climate financing pledges and accelerate the implementation of the 2030 Sustainable Development Goals agenda. Emphasizing Beijing’s commitment to shared development, initiatives like the Belt and Road and Global Development Initiative underscore its active role. Over the past decade, China has invested over $1 trillion in more than 3,000 Belt and Road projects worldwide, signaling its dedication to fostering global prosperity.
These efforts align with China’s vision of collaborative, sustainable development, and for the international community to honor the commitments for a more inclusive and equitable global future. China’s calls gained endorsement from many leaders in the developing world. Yoweri Museveni, president of Uganda, which took over the G77 chairmanship from Cuba, stressed the urgency of reforms in international financial architecture, urging multilateral development banks to “support developing countries without imposing any conditionalities that infringe on their sovereignty”.
Looking ahead, the Summit of the Future in New York this September is poised to explore profound reforms in the international architecture, in finance particularly. And the collective push of the G77 and China for a fairer global governance system is gaining momentum, with nearly all developing countries lending their support to this initiative.