Group of Twenty (G-20)
Reducing the Cost of Remittances – A Priority for the Global South
By Danish
Remittances are a lifeline for many households in low and middle income countries (LMICs), and have emerged as an important source of external financing for sustainable development. With over 800 million people dependent on remittances worldwide, their importance for developing and least developed countries is well established. However, the high cost of remittances remains a significant challenge, and despite global commitments to reduce these costs, progress has slowed down.
This paper thus provides an assessment of the current drivers of remittance costs and explores the relevant policy discussions and initiatives at the United Nations (UN) and Group of Twenty (G20). It further highlights the continuing challenges as well as the innovative solutions such as increasing digitalisation and development of cross-border fast payment systems in different regions of the global South. The upcoming Fourth International Conference on Financing for Development (FfD4) and G20 initiatives under South Africa’s Presidency present important opportunities for the international community to redouble its efforts and make concrete, ambitious commitments to lower the cost of remittances. Finally, the paper provides some relevant policy considerations and recommendations, especially to accelerate the implementation of existing commitments, leverage digital public infrastructure and to discourage levying of taxes on remittance flows to developing countries.
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Advancing International Cooperation under the Global Digital Compact
By Danish
Bridging the global digital divide in new and emerging technologies, particularly Artificial Intelligence, will require developing countries to strongly leverage international cooperation to build digital skills, knowledge and gain access to these technologies which can accelerate their digital transformation and sustainable development. This emphasis on international cooperation is also deeply embedded in the Global Digital Compact, which was adopted as part of the Pact for the Future. This paper therefore looks at how international cooperation modalities have been included in the GDC across the different issue areas, how developing countries are already engaging with the GDC through their national initiatives, and provides some useful considerations going forward.
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America First, Trade Last: The Rise of Weaponised Tariffs
By Vahini Naidu
Donald Trump’s return to the White House has reignited economic nationalism, transforming tariffs into instruments of political and economic coercion. His administration’s four-phase strategy—setting policy objectives, conducting strategic reviews, imposing preemptive tariffs, and unpredictable brinkmanship—signals a shift towards unilateralism that bypasses traditional legal frameworks and undermines multilateral trade governance. The recent tariffs on Mexico, Canada, and China, imposed under the International Emergency Economic Powers Act (IEEPA) on security grounds, represent an unprecedented expansion of executive power in trade policy. As the U.S. weakens the WTO and prioritises economic nationalism, the Global South faces a decisive moment. The increasing use of trade measures for geopolitical leverage threatens to further marginalise developing countries. In response, the Global South must take a proactive role in shaping the global trade landscape—deepening South-South cooperation, enhancing regional trade frameworks, and advancing structural reforms to promote resilience and economic sovereignty in an era of growing trade uncertainty. This piece argues that Trump’s trade strategy marks a broader shift towards a power-driven trade order, where economic dominance supersedes rules-based governance, and that the Global South must act decisively to prevent a future where trade is dictated by the strongest rather than negotiated through fairness and equity.
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