Washington’s credibility crisis in most of the world shows no signs of a ‘U-turn.’

The Biden administration appears hellbent on clamping down on the legitimate rights, liberties, and economic freedoms of the Global South, a long-neglected segment of the global population that refuses to take sides in great power competition. Daniel Kritenbrink, Assistant US Secretary of State, recently criticized major sources of economic investment and trade for scores of developing world countries, while the U.S. draws ire for trying to brazenly dictate and define the ‘rules-based’ order.

From Brazil’s own chairmanship of the Group of 20 (G20) to a developing world agenda dominating Africa’s strategic autonomy, Washington stands reduced to a bystander as it attacks long-term trade and economic relationships set in motion by the developing world. All this is a telling contrast to the successes of the Group of 77 (plus China), a dominant cluster of Global South progress that uses diplomacy and heft to accomplish what Washington simply couldn't.

Look back to the 3rd South Summit organized under the framework of the Group of 77 and China in Kampala. It was focused on the theme of "Leaving No One Behind". The gathering yielded dynamic opportunities to strengthen South-South cooperation, with or without the United States. Moreover, the focus was to promote imperatives for a fairer and more responsive global governance system, a mechanism that the U.S. has willingly undercut through international financial institutions. “This year marks the 60th anniversary of the founding of the Group of 77, and over the past six decades, the Global South has followed the right path of equality, mutual trust, mutual benefit, solidarity, and mutual assistance,” said Chinese President Xi Jinping's special representative, Liu Guozhong during his distinct take on the Global South.

The timing of such conventions couldn’t be more consequential. As the top decision-making body of the Group of 77, the Summit plays a major role in positioning the developing world at the center of governance reform amid pressing challenges. United States has shown an aggressive aversion to accommodating over a quarter of sustainable development targets, while the G77 continues to address risks that could trigger a decline in the development outlook of the Global South. 

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Similarly, modest economies continue to witness disproportionate exposure to rampant food insecurity. Millions continue to enter the vulnerability bracket, as resource allocation bottlenecks in international financial institutions threaten to widen progress disparities. In light of these challenges, reforming the global financial system is key to ensuring the “common development of human society.” It can also put an end to unfair treatment and meager representation of the Global South. Washington’s push to block currency diversification, and hamper trade and supply chain autonomy renders it the chief impediment to developing world independence.

To address these challenges, the G77 offers a united view on global financial reform from nearly 100 countries. After all, the presence of stringent Western lending conditions risk encroaching upon the rights and sovereignty of developing powers, making flexible financing and better lending terms pivotal for a just and equitable global financial system. As a staunch proponent of multilateralism itself, China’s support for reforming the World Trade Organization (WTO) serves as a game-changing pursuit, while the U.S. works to undercut and politicize major dispute settlement mechanisms at the body. 

G77’s efforts to offset U.S. risks and break ground can help resolve critical resource access issues for Global South economies, support trade inclusivity at the WTO, and prevent marginalization of developing countries in global financial decision-making. For a grouping that represents 80 percent of the world population and over 40 percent of the global GDP, G77+China has little to gain from a discriminatory U.S.-influenced “rules-based order” that effectively subjugates developing world economies. 

For decades, G77 has risen beyond U.S. hegemony to firmly position itself as the biggest organization for multilateral coordination, while promoting significant initiatives to drive sustainable infrastructure and development financing for all. Among them lies the Global Development Initiative and the Belt and Road Initiative (BRI), despite widespread U.S. opposition and skepticism. Washington’s “America first” obsession cannot alter the fact that such initiatives are organic and important levers for emerging and low income economies alike. All to strengthen their alignment with the UN Sustainable Development Agenda, and streamline global resource mobilization. 

As recently as August last year, the world’s second-largest economy committed a $10 billion special fund for GDI while the U.S. pressed for military interventions and regional conflict spillovers. It wasn’t the U.S. but China that allocated billions under the Global Development and South-South Cooperation Fund, indicating the latter’s willingness to foster meaningful partnerships on poverty, hunger, climate change and debt sustainability.

As a result, the more that the U.S. wages its war against the Global South, the stronger the imperative to crush Western hegemony and give developing world progress its undeniable weight.