India Warns Nations About Vicious Cycle Of Debt Traps At UNSC Meet Presided Over By China

India, during a UN Security Council open debate, called for transparent and equitable financing while cautioning against the dangers of unsustainable financing leading to a vicious cycle of debt traps. R. Madhu Sudan, Counsellor in India’s Permanent Mission to the UN, delivered the remarks on Monday during the debate on ‘Maintenance of International Peace and Security: Promoting Sustaining Peace through Common Development,’ held under China’s Presidency of the 15-nation UN body for November.

Madhu Sudan underscored the importance of addressing resource crunch issues for sustainable development, stating, “Peace is elusive and development a distant dream if resource crunch continues to exist”, news agency PTI reported. He added that India, including during its current G20 presidency, has worked towards reforms of International Financial Institutions.

Madhu Sudan highlighted the risks associated with unsustainable financing, stating, “We should work on transparent and equitable financing and be vigilant with respect to the dangers of unsustainable financing, which leads to the vicious cycle of debt traps”, as per PTI’s report.

In this context, he pointed to the struggles faced by the international community during the Covid pandemic and rising inflation of essential commodities, affecting the Global South disproportionately.

In an apparent reference to China’s debt trap diplomacy, India has consistently urged nations to be cautious of hidden agendas in unviable projects or unsustainable debt. External Affairs Minister S. Jaishankar, at the 23rd Council of Ministers Meeting of the Indian Ocean Rim Association, warned against hidden agendas in unviable projects or unsustainable debt, citing the Hambantota port’s case.

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Security Council’s Involvement In Every Aspect Not Advisable: India 

Meanwhile, Madhu Sudan also highlighted the importance of reformed multilateralism for a UN befitting the aspirations and needs of the 21st century, “Choosing peace, co-operation and multilateralism is essential for building our collective future free of wars, conflicts, terrorism, space race and the threats from new and emerging technologies amongst others.”

“Security is indeed multi-dimensional, but the Security Council’s involvement in every aspect, including those mandated to other UN bodies, might not be advisable,” he added, as quoted by PTI.

While addressing the UN Security Council, Madhu Sudan noted the urgency of measures to reverse the concerning trend of faltering on the Sustainable Development Goals (SDGs) and reaffirmed the commitment to Agenda 2030 for Sustainable Development.

The remarks align with India’s stance on global financial issues, sustainable development, and the need for a reformed multilateral approach, reflecting concerns about debt traps and the disproportionate impact of global challenges on the developing world.

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