Global leaders discuss North-South schism, urgent challenges facing world

By Aysu Bicer

LONDON (AA) – Leaders from around the world discussed the North-South schism at the World Economic Forum in Davos, Switzerland, focusing on critical matters such as the COVID-19 pandemic, inflation, climate change, and economic inequality.

During a session on Wednesday, the dialogue showcased varying perspectives on how to navigate these challenges and bridge the divide between developed and developing nations.

Rwandan President Paul Kagame emphasized the need for a more inclusive approach to international cooperation.

He pointed out two crises that have fueled pessimism in the Global South – the unequal access to COVID-19 vaccines and therapeutics, and the aftermath of inflation and interest rate hikes in the West.

He stressed that addressing global inequality requires involving developing countries from the outset, rather than mitigating crises after they have already developed.

"We need to integrate to bring in, to involve developing countries like Africa and other developing countries from the beginning to have the conversations around how these inequalities should not be developing and later on, affecting the particular parts of the world," he said.

- 'We need both strong countries, strong multilateral organizations'

Dutch Prime Minister Mark Rutte, however, questioned the narrative of a rigid North-South divide. He argued for a strong multilateral system and investment in rules-based organizations like the World Trade Organization (WTO).

Rutte highlighted progress in several key areas, emphasizing the importance of both strong countries and robust multilateral organizations for effective governance.

"I have a bit of an issue with constantly talking about a schism, the divide between the North and the South. You cannot be a politician working at a national level taking care of the national interest if you are not part of a strong trilateral system. And that means a strong multilateral system, we have to invest in it. It has to be rules-based," he explained.

"I'm happy to say we see progress in a number of important fields. So there is not a schism between North and South. If we want to be strong politicians and provide jobs and security at a national level, we need both strong countries and strong multilateral organizations," he added.

- 'We are now in multipolar world'

World Trade Organization Secretary-General Ngozi Okonjo-Iweala underscored the shift in global economic power, noting that emerging markets and developing economies now contribute more to global GDP than developed countries.

She emphasized the need to strengthen and reform multilateral organizations to manage the challenges of a multipolar world.

"We are now in a multipolar world. There is no one power center … global governance is how we manage this multipolarity. There is no one center that can solve all the problems of the world. We are interdependent and we need to work together and … this is where multilateral organizations need to be strengthened," she said.

Colombian President Gustavo Petro expressed concerns over the worsening global situation, highlighting the shift from crises related to the pandemic to more severe issues like genocide and geopolitical conflicts.

"The issue is a year ago at this forum we talked about the world in crisis as a result of the pandemic, as a result of diseases, poverty and economic stagnation. Today, the situation has become worse in terms of the fact that from war, we have moved into genocide, bombarding children, and voting in the United Nations around this problem is divided politically," he said.

Petro urged a radical change in the North's approach, emphasizing the need for cooperation between the North and the South to address the evolving paradigm.

"The economic, political and social world paradigm is changing as the very human existence is being questioned when we question everything that was built around in the last 50 years, for the better or worse. For instance, the concept of cooperation, which is one of the topics of this panel discussion, is a concept that was built with the idea of a very wealthy North and a very poor South. The North needs to change radically to sustain a life on the planet and it's the South that needs to help the North in that purpose," he added.

- 'States, companies should be more generous'

Tech mogul Bill Gates, who was among the speakers, added his perspective on the resource shortage, pointing out the overwhelming demand for funds to address crises in Ukraine, the Middle East, climate change, and basic development needs.

"There's no doubt we find ourselves at a juncture where the demand for resources exceeds the resources available and the needs coming out of Ukraine, the Middle East, climate mitigation, climate adaptation, including basic development health care systems, education systems, all of these," he said.

Gates proposed three solutions: Increased generosity from those with the most resources, a focus on high-impact areas, and a commitment to innovation.

"The needs are pretty incredible. And I'd say there are three things we can do to improve that situation. The first is we should try and be more generous. The second thing is to focus on the highest impact areas. The final area is innovation. There has been far too little innovation on the needs of the Global South," he concluded.