Global Development Initiative and the Reform of Global Development Governance System

As a systematic initiative to advance global development， the Global Development Initiative (GDI) represents an important international public goods China offers to the world in the new era. Chinese President Xi Jinping first proposed the GDI at the General Debate of the 76th Session of the United Nations General Assembly in September 2021， calling for concerted efforts of the international community to stay committed to a people-centered approach， benefits for all， innovation-driven development， harmony between man and nature and results-oriented actions that aim at accelerating the implementation of the UN 2030 Agenda for Sustainable Development and achieving more robust， greener and more balanced global development. Since its proposal， the GDI has embraced enriched conceptual substance， increasingly prominent core propositions， gradually improved implementation mechanisms and steady growth in prioritized cooperation. As the latest action plan to advance the UN 2030 Agenda for Sustainable Development， the GDI stands ready to bring development issues back to the center of the international agenda， inject strong impetus into the common development of the “Global South” and contribute a Chinese solution to the reform of the global development governance system.

GDI Provides the “Global South” with New Opportunities

The main aim and prioritized partners of the GDI are the “Global South”. “Global South” is both a political term and also a proposition about development. At present， the “Global South” is gaining momentum and becoming a key force in upholding international fairness and justice and building a new type of international relations as well as an important player in shaping global development norms and promoting global development. It is the urgent call of the “Global South” to unshackle the existing failing “norms” in development governance. The GDI responds to the call of justice of the “Global South” and provides new opportunities for development.

Firstly， the GDI innovates the theory of global development and boosts the sustainable development of the “Global South”. Holding up development as the “golden key” to advancing global governance， the GDI has served as a new-type of development theory with rich connotations. The first is to stay committed to people-centered approach. The GDI is determined to place improving people’s livelihoods in a prominent position within the global macro policy framework， highlighting the core concepts of “putting people at the center” and “development for the people”; The GDI is determined to place poverty reduction on top of the prioritized areas for cooperation to bring the global poverty reduction efforts back to the right track; The GDI is determined to take the improvement of people’s wellbeing and realization of people’s comprehensive development as the basis and ultimate goal to achieve more inclusive development that delivers benefits to more people. The second is to stay committed to the concept of common development. Western countries often view international development from the lens of capital appreciation， in which they position the West as a “transformer” and the “Global South” as “the other” and “the transformed” by the West. Such discrimination on the ground of development results in widening wealth gaps and other severe drawbacks. The GDI advocates for common development and rejects the “one-sided” and “narrow” concepts on development formed by the logic of the Western capital. The third is to innovate the theory of international public goods. International public goods are the result of the evolution and development of global development theory in the process of globalization. The GDI is a new-type of development-oriented public goods that combines concepts and actions， representing a significant innovation in traditional theories on public goods. Adhering to the principle of “convergence and integration of a diversity of sources and players”， the GDI is an integration of the collective global supply and cooperative regional supply of public goods. Such diversified channels of supply discard the conventional model of hegemonic supply and cater to the development demands of the “Global South”.

Secondly， the GDI builds a development support system to optimize the resources for the development of the “Global South”. It is pointed out in the Report to the 20th National Congress of the Communist Party of China that “China is prepared to invest more resources in global development cooperation. It is committed to narrowing the North-South gap and supporting and assisting other developing countries in accelerating development.” Most countries in the “Global South” suffer from low-level development， incomplete support systems and grave climate vulnerability. The interest rate hike of the US dollar in recent years has imposed onerous debt burdens on the “Global South”. High-level debt， huge financing gaps and poor financing conditions could easily trigger solvency risks. Under such circumstances， the GDI adheres to the principle of “a diversity of investment and synergies”. By adopting the development-centered， innovation-driven and action-oriented concepts and focusing on eight critical areas of cooperation including green development and digital economy， the GDI aims to optimize development resources， improve development financing and avoid high debt risks. In the meantime， the GDI beefs up the efforts in talent training and capacity building and pushes forward the sustainable industrialization process of the “Global South”， so as to boost high-quality， sustainable， more comprehensive and balanced development.

The financing gap is a thorny challenge facing the “Global South”. The GDI helps the “Global South” overcome development bottlenecks， narrow financing gaps and provide support through debt relief， development aid and other means to prevent systemic financial risks. China has continuously increased its input of resources in global development cooperation. In such efforts， China has integrated and upgraded the South-South Cooperation Assistance Fund into the Global Development and South-South Cooperation Fund， adding one billion U.S. Dollars on top of the existing three billion. China has also invested more in the China-UN Peace and Development Fund， with total input of 120 million U.S. Dollars to the fund as of April 2022. In December 2021， China donated 50 million U.S. Dollars to the UN Food and Agriculture Organization， contributing to the achievement of the Goal 1 (No Poverty) and Goal 2 (Zero Hunger) of the agenda for sustainable development. As of July 2024， the China-FAO South-South Cooperation Trust Fund had totaled 130 million U.S. Dollars. In 2023， the China International Development Cooperation Agency mobilized 12 billion U.S. Dollars in earmarked funds for the first time in support of the implementation of the GDI， standing as a breakthrough of how international development cooperation is financed. In June 2024， China announced the establishment of the China-IFAD South-South and Triangular Cooperation Facility within the International Fund for Agricultural Development， with an additional donation equivalent to 10 million U.S. Dollars to boost agricultural development in the “Global South”. The GDI is also committed to multi-directional synergies to stimulate other partners’ investment in global development resources. China has pushed forward the approval and implementation of a 650 billion U.S. Dollars SDR allocation of Special Drawing Rights by the International Monetary Fund， facilitating consensus on the SDR lending and enhancing the organization’s crisis response capabilities. China made the 20th round of donation to the International Development Association， pushing up the total capital increase to 93 billion U.S. Dollars; China also contributed to the approval by the World Bank of the supplementary Heavily Indebted Poor Countries (HIPCs) Initiative with a total amount of 1.1 billion U.S. Dollars; China also backed the G20 debt relief plan and tops the G20 members with the highest deferral amount. In short， China has helped alleviate the debt burden of the “Global South” and no country has ever fallen into the so-called “debt trap” because of its cooperation with China.

Thirdly， the GDI is committed to forging a network of partnerships and jointly building a community of development for the “Global South”. The GDI places special emphasis on the “Global South”， especially small island developing states， least developed countries， landlocked developing countries and African countries. As the largest developing country and a partner of the Non-Aligned Movement， China always adheres to its position as a natural member of the “Global South”. In the principle of “multi-stakeholder engagement and combination of bilateral and multilateral cooperation”， the GDI closely aligns with the development strategies of countries to fabricate a global network of development partnerships. China will join hands with the “Global South”， the backbone of global development， to advance the implementation of the GDI and jointly build a “Global South” community with shared development. China also makes strenuous efforts to encourage more input of resources in global development by developed countries and relevant international organizations， and urges developed countries to take on more responsibilities， in aim of narrowing the development gap between the North and the South. The GDI insists on pooling resources， seeking common ground while shelving differences with developed countries， and expanding common ground while resolving differences with the “Global South” to build a global partnership for development that is united， equal， balanced and beneficial to all.

The GDI is a critical practice of the vision of a community with a shared future for mankind in the field of global development. As a key component of the community with a shared future for mankind， the “Global South” community with shared development can be simultaneously advanced at both bilateral and multilateral levels. At the bilateral level， efforts are made to promote the signing of the GDI cooperation documents and memorandums of understanding (MOU). China has already signed GDI cooperation documents with over 40 countries including Tanzania and Mongolia and signed cooperation MOUs with over 20 countries and international organizations to launch more result-oriented projects that benefit more developing countries. At the multilateral level， the GDI aims to create an international development platform “towards a common future” and jointly establish the GDI tripartite cooperation demonstration centers with relevant parties in support of the development of the “Global South”; China contributes to the implementation of the G20 debt relief plan， supports Africa and the least developed countries to act on the industrialization cooperation initiative and continue to submit projects to the G20 pragmatic cooperation project pool; China promotes “BRICS Plus” international cooperation and creates new opportunities for the independent development of the “Global South”; China also engages the Asian Infrastructure Investment Bank and the New Development Bank in the GDI towards the joint building of the “Global South” community with shared development.

The GDI Spearheads the Reform of the Global Development Governance System

As the world is witnessing the interplay of imbalanced economic recovery， disorder in global development governance， intensifying strategic competition among major powers and escalating geopolitical rivalries， issues concerning global development have been marginalized， politicized and even weaponized. The global development governance system is faced with such challenges as malfunctioning， loss of credibility and inefficacy. Upon such a backdrop， China has proposed the GDI to spearhead the profound transformation of the global development governance system.

The first is to remain committed to extensive consultation， joint contribution and shared benefit to innovate the vision on global development governance. Global development governance is the primary issue of international cooperation. The Western vision on global development governance specifically refers to the establishment of market economy system that fits in Western models through neoliberal proposals， the adoption of “shock therapy” and such radical reform measures as liberalization， marketization and privatization. By placing emphasis on economic liberalization， marketization and privatization， the Western countries essentially pursue to ensure the freedom of capital rights and prepare conditions for capital to pursue profits. Yet for the “Global South”， development is the top priority and they have an urgent need for international development assistance. However， with the so-called \"democracy\"， \"human rights\" and other strict political conditions attached， the development aid offered by the West not only fails to achieve desired effects， but also leads to instability in recipient countries which suffer deteriorating deficits in development， governance and security. In view of the serious drawbacks of the neoliberal governance vision， countries around the world come to the realization that fundamental changes are urgently needed to transform the global development governance under the umbrella of neoliberalism.

China is a champion of promoting global development assistance and international development cooperation. Influenced by its dual identity both as an important aid donor and successful recipient country， China has formed a unique vision on global development governance. The GDI fully displays China’s global vision and sense of responsibility as a major country to integrate its own development with the development of the world and fully exhibits China’s global governance philosophy of extensive consultation and joint contribution for shared benefit. “Extensive consultation” refers to China’s active interaction with various parties over the guiding principles， critical projects and organizational implementation of the GDI. Through frank consultation and communication on equal footing， all parties will stand ready to embrace a common understanding of development and good faith in mutual benefit within the framework of the GDI. “Joint contribution” means that China upholds true multilateralism and effective norms of international cooperation， incentivizes various parties and accelerates the implementation of the GDI through joint engagement. China places common development at the core of the GDI， prioritizes poverty reduction in international cooperation and steers the direction of sustainable and common development of China and the world. “Shared benefit”， which aims to make the global governance system more just and equitable through the implementation of the GDI， represents the ultimate goal of extensive consultation and joint contribution. Offering not only such “hard assistance” as material and resources， but also such “soft assistance” as development knowhow and experience， the GDI will continuously enhance the capacity of the “Global South” to pursue independent development and gain development benefits by eliminating poverty and improving people’s livelihoods.

The second is to remain committed to “indigenous and multi-source” empowerment to upgrade the global development governance model. Poverty is always a tough challenge to global development governance. Recent years have seen the backspins in global poverty reduction and rising uncertainty， instability and unpredictability of global development. Assistance provided by the West has many drawbacks， including mismatch with the needs of recipient countries， excessive conditions attached and absence of engagement and decision-making of recipient countries. From the First High Level Forum on Aid Effectiveness held in Rome in 2003 to the Global Partnership for Effective Development Co-operation (GPEDC) High Level Conference held in New York in 2019， the prescription for international aid written out by the West failed time and again. The foreign aid model of the West is so dominant from the position of strength that it fails to resolve the development problems arising from poor countries. Instead， such a model traps these countries in the “dependence on foreign aid” and forms a “vicious cycle of aid”.

The GDI remains committed to “indigenous and multi-source” empowerment to build a comprehensive， efficient and inclusive system for international development cooperation. Firstly， innovation is made towards the new-type development assistance model featuring “endogenous empowerment”. With keen efforts to enhance the balance， coordination and inclusiveness of development， the GDI addresses both external imbalances facing the economic development of the “Global South” and the internal order of global economic governance. China’s development assistance is mainly delivered in the form of “projects” which are devoted to improving the economic， social and cultural environment of recipient countries and enhancing their capabilities of indigenous and independent development， demonstrating China’s image as a responsible major country. Secondly， innovation is made to “swap debt for development”. In recent years， on the basis of traditional aid such as grant aid and interest-free loans， China has innovatively adopted the “debt for development” to carry out three-in-one foreign aid that integrates “aid， trade and investment” and advance both landmark aid projects and “small but smart” projects. Lastly， innovation is made for funding of cooperation projects. China provides foreign aid as well as engages a diversity of actors such as recipient governments， private sectors and international organizations to carry out projects within the GDI framework， thus broadening development channels through multi-source cooperation; Following the principles of “voluntary participation， multi-party cooperation， innovative means， openness and transparency”， China expands the pool of global development projects and creates new development demonstration projects within the GDI framework.

The third is to remain committed to openness， inclusiveness and universal benefits to transform the global development governance mechanism. The GDI focuses on development issues， intensifies sharing of visions and philosophies and remains action-oriented. By acting on the philosophy on global governance featuring “extensive consultation and joint contribution for shared benefit”， the GDI aims to build a new-type of global development governance mechanism that is open， inclusive and universally beneficial. China has the strong will to contribute its experience to global governance. And also in view of demand for international development of various fields， China forms a multi-level， step-by-step and distinctive roadmap for international public goods supply based on its own comparative advantages. In its efforts to promote international development cooperation， China builds platforms for common development in key areas and tries to develop the GDI into a mechanism.

The GDI attaches great importance to synergy with the United Nations to leverage the role of the United Nations development system. Covering all the goals of the United Nations 2030 Agenda for Sustainable Development， the eight priority areas of the GDI inject new momentum into accelerating the implementation of sustainable development goals and provide new ideas for the post-2030 development. Faced with the challenges of fragmented trade and multiple blocs， the GDI firmly upholds the multilateral trading regime， promotes reforms of the International Monetary Fund and the World Trade Organization， continuously improves the development governance structure and benefit distribution pattern， and creates a transparent， non-discriminatory， open and inclusive global development environment. China promotes innovative development of the international development system， establishes the Global Development Promotion Center， holds the High-Level Conference of the Forum on Global Action for Shared Development， consolidates consensus on promoting common development and advances sustainable development.

Practical Approaches to Implement the GDI

Upon the backdrop of dramatic changes unseen in a century， the development gap between the North and the South continues to widen， the world economy is struggling to recover and the deficits in global development keep increasing. To this end， it is imperative to further enhance the effectiveness of the GDI and spearhead the efforts to innovate the philosophy， mechanism and implementation of the GDI.

First， a holistic approach should be taken to plan the GDI and the Belt and Road Initiative. These two initiatives are closely related in terms of goals， visions and approaches of implementation. In his address at the conference marking the 70th anniversary of Five Principles of Peaceful Coexistence， President Xi Jinping pointed out that “China has been promoting high-quality Belt and Road cooperation and endeavoring to deliver on the GDI. Our goal is to benefit all with the opportunity of development， to diversify development paths and to help all nations share development fruits.” Currently， a holistic approach should be adopted in the planning of mechanisms， projects and regions. The first is to synergize mechanisms and advance in coordination. Both high-quality Belt and Road cooperation and the GDI are devoted to providing international public goods， leading global governance and advancing the building of a community with a shared future for mankind. It is necessary to emphasize collaboration between the mechanisms， ease communication， strengthen development orientation and improve governance effectiveness. The second is to pool strength of development projects and cooperation plans. Development assistance is a priority of the GDI and also an important component of the Belt and Road Initiative. With emphasis on wellbeing assistance， livelihood projects and “small but smart” projects conducive to the people’s livelihood， the GDI should enhance coordination with relevant projects with the Belt and Road Initiative to take joint actions. The third is to coordinate prioritized regions to implement projects. In order to improve the synergy between the GDI and high-quality Belt and Road cooperation， it is worth considering selecting several prioritized regions to pool development resources， create landmark projects and set a shining example as demonstrative projects.

Second， the coordination role of the United Nations should be brought into play to enhance the capacity of advancing the agenda. The United Nations is an important platform for the implementation of the GDI. The GDI stands ready to accelerate the slow pace of achieving the majority of the development goals of the United Nations. The first is to enhance institutional cooperation of the United Nations development system. The GDI should connect with the Summit of the Future 2024， coordinate more closely with the United Nations Conference on Trade and Development， the United Nations Development Programme and the International Trade Centre and synergize with such mechanisms as the Global Crisis Response Group on Food， Energy and Finance. Efforts should also be made to improve the FAO-China South-South Cooperation Programme. The second is to leverage the role of the United Nations in guiding foreign aid， consolidate the synergy of foreign aid， investment and trade， align with the United Nations “SDG Stimulus” to beef up financing for sustainable development. Cooperation should also be pursued with the “Group of Friends of the GDI”. Efforts should be made towards the establishment of a GDI working group to refine various cooperation topics. The third is to establish a United Nations-based joint financing mechanism to integrate the GDI financing with the United Nations sustainable development financing. Sound interaction should be established with the United Nations International Conference on Financing for Development and the Economic and Social Council (ECOSOC) Forum on Financing for Development Follow-Up. Actions should be taken to implement the Addis Ababa Action Agenda， innovate financial instruments such as green bonds and social investment bonds， and build a new global financing framework.

Thirdly， a multi-level institutional support network should be built to gather new momentum for win-win development. Advancing the cooperation mechanism-building within the GDI framework is an initiative choice to deepen international development cooperation and respond to external challenges， as well as a realistic requirement as the GDI enters a new phase of pragmatic cooperation. The first is to uphold the principle of “building consensus and jointly seeking development” as the guidance for mechanism-building. The Forum on Global Action for Shared Development should be developed into a brand mechanism for the GDI implementation. As an important vehicle established by the Chinese government to implement the GDI， the Forum on Global Action for Shared Development should consider expanding the membership， upgrading the mechanism， planning to establish such internal organizations as a permanent secretariat and serving more as a coordination platform. The second is to push forward the mechanism-building of the “Group of Friends of the GDI”. The high-level meeting of the “Group of Friends of the GDI” should be expanded to further achieve new consensus on and foster new momentum for international development; Topics for the “Group of Friends of the GDI” seminar should be innovated and close communication should be carried out with organizations such as the United Nations Conference on Trade and Development and the World Trade Organization. The third is to explore to establish supporting mechanisms of the GDI framework. Efforts should be made to improve the GDI thematic briefing and high-level conference on GDI cooperation achievements held at the United Nations headquarters， so that the two events complement and propel each other as platforms for GDI implementation and publicity of cooperation outcomes.

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Wang Mingguo is Professor of the School of Government of East China University of Political Science and Law