Statement by South Centre at the Ministerial Meeting on Artificial Intelligence, Data Governance and Innovation for Sustainable Development (G20 Task Force)
30 September 2025, Cape Town
The South Centre welcomes the G20’s effort to advance meaningful participation of developing countries in shaping a fair, safe, secure, responsible, inclusive, ethical, trustworthy, and sustainable global AI landscape. Data governance is a foundation for equitable AI. Countries are entitled to develop and adopt regulatory frameworks for AI systems, including to reflect diverse knowledge systems and fair remuneration for data contributions.
Taking Forward Digital Public Infrastructure for the Global South
By Danish
Digital Public Infrastructure (DPI) has received significant attention for its role in promoting inclusive and effective digital transformation, particularly in the countries of the global South. Elevated onto the global agenda under India’s Group of Twenty (G20) Presidency in 2023, DPIs are now considered as key digital solutions for providing essential services like digital identity, financial inclusion, and access to e-governance platforms. Yet, realizing the full potential of DPI in developing countries requires building a policy and regulatory framework that fosters trust, protects rights and addresses persistent digital divides. Robust institutions and governance mechanisms are equally essential to ensure that DPI adoption is inclusive, equitable and aligned to national priorities.
This paper provides a snapshot of the recent policy and regulatory developments on DPI, as well as the relevant stakeholders at the national and international levels. It then considers the challenges of the digital divide for developing countries and briefly presents some national experiences on the use of DPIs for increasing financial inclusion and promoting e-governance. The paper concludes by offering some recommendations to fully harness the benefits of DPI for accelerating sustainable development and digital transformation in the countries of the global South.
Country-Level Revenue Estimates – A Comparative Analysis of UN and OECD Subject to Tax Rules for 65 Member States of the G-24 and South Centre
Washington and Geneva, 23 July 2025
The South Centre & Group of Twenty-four today jointly released country-level revenue estimates of the UN & OECD Subject to Tax Rule (STTR) for their 65 combined Member States.
Results show higher revenues from UN STTR, and reinforce benefits of a UN Tax Convention.
Comparison of Tax Revenue Effects of United Nations and OECD Subject to Tax Rule for G-24 and South Centre Member States
By Faith Amaro and Sol Picciotto
The Subject to Tax Rule (STTR) seeks to address the historical imbalance in the allocation of taxing rights under international tax treaties by introducing within existing treaties a new article which makes the restrictions on source taxation conditional on the residence jurisdiction imposing a minimum level of tax on foreign-derived income. This paper presents a methodology for analysing the respective benefits of the STTRs developed by the Organisation of Economic Co-operation and Development (OECD) and the United Nations (UN). Applying this model to publicly available data for 2021, it also provides estimates of the possible revenue impact for the 65 Member States of the South Centre (SC) and the Intergovernmental Group of 24 (G-24). Our analysis indicates that the OECD STTR would have no impact on any OECD country treaty with a SC/G-24 Member State. Applying the prescribed 9% minimum rate to covered payments, only 100 treaties across 28 SC/G-24 Member States would qualify for improvement under the OECD STTR, with an estimated combined revenue gain of USD 55.6 million, 71% of which is concentrated in just five treaties. In contrast, the UN STTR, which does not specify a minimum rate, was modelled using rates of 9%, 10% and 15%. This resulted in estimated revenue gains of USD 212 million, USD 325 million, and USD 1,165 million across 171, 210 and 317 treaties, respectively. Given its complexity and restrictive scope, it seems pointless for any SC/G-24 Member State to join the OECD STTR. Instead, countries should focus on identifying treaties that cause unjustifiable revenue losses and consider revising them – either by adopting the simpler and broader UN STTR or implementing other measures such as active anti-abuse provisions to combat treaty shopping and tax avoidance.
Analysing the Impact of UN and OECD Subject to Tax Rule for G-24 and South Centre Member States
By Suranjali Tandon and Chetan Rao
The Subject to Tax Rule (STTR) is meant to address base erosion and profit shifting in cross –border transactions. The United Nations (UN) and Organisation for Economic Co-operation and Development (OECD)/Group of Twenty (G20) Inclusive Framework have developed models of the STTR that countries may choose to adopt in their treaties. This paper provides a review of these designs of two STTR models and proceeds to estimate the revenue gains for the Intergovernmental Group of Twenty-Four on International Monetary Affairs and Development (G-24) and South Centre Member States that may arise from a STTR that covers different kinds of payments. The OECD STTR is limited to related-party payments and imposes thresholds based on mark-up and materiality, reducing its applicability in practice. In contrast, the UN STTR offers broader coverage, applies to both related and unrelated parties, and does not impose restrictive thresholds, making it more administratively feasible for developing countries. Although the estimated gains from the OECD STTR appear modest due to its narrow scope, the UN STTR shows greater potential. The analysis also highlights data limitations and the need for access to microdata for accurate country-level assessments.
Global Digital Compact: Charting a New Era in Digital Governance?
By Aishwarya Narayanan
The Global Digital Compact, adopted during the Summit of the Future in September 2024, is the first truly multilateral instrument which addresses issues relating to global digital governance in a comprehensive and systematic manner. While this is a remarkable step forward in terms of increasing representation, enhancing coordination and addressing fragmentation in digital governance, consensus was difficult to achieve and there remains considerable confusion around its interplay with existing initiatives and mechanisms within the United Nations system. Despite implementation efforts already being underway, its true impact and potential to bridge digital divides will only be revealed in the time to come.
STATEMENT BY DR. CARLOS CORREA, EXECUTIVE DIRECTOR OF THE SOUTH CENTRE, TO THE MINISTERS AND GOVERNORS MEETING OF THE INTERGOVERNMENTAL GROUP OF TWENTY-FOUR (G24)
22 April 2025, Washington, D.C.
The South Centre statement to the G24 Ministerial Meeting highlights the risks of a darkening global economic outlook and need for collective action at UN and FfD4 for addressing systemic issues & reforming the international financial architecture, especially for taxation & sovereign debt.
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.
Will the Global Digital Compact ensure an equitable future for Developing Countries?
By Daniel Uribe
The Global Digital Compact (GDC), adopted by the United Nations General Assembly in 2024, aims to establish a framework for equitable digital transformation, particularly for developing countries. While the GDC acknowledges the importance of human rights, bridging the digital divide, and ensuring a just transition, it faces significant challenges in addressing structural inequalities and implementing robust accountability mechanisms. This paper examines the GDC’s potential to foster an inclusive digital future, highlighting the necessity of addressing fundamental rights, promoting business accountability through a legally binding instrument, and recognising the interconnectedness of digital inclusion with access to essential resources like energy, education, and healthcare.
Contribución del Centro Sur al Informe del Secretario General de las Naciones Unidas sobre la aplicación de la Resolución A/RES/79/7 de la Asamblea General sobre la “Necesidad de poner fin al bloqueo económico, comercial y financiero impuesto por los Estados Unidos de América contra Cuba”
Esta contribución del Centro Sur se presenta en respuesta a la solicitud del Secretario General como un aporte al informe del Secretario General de acuerdo a la resolución A/RES/79/7, con respecto a la imposición de medidas económicas, financieras y comerciales unilaterales por parte de los Estados Unidos de América, contra Cuba, en violación de los principios básicos de la Carta de las Naciones Unidas y el Derecho Internacional.
Will the Pact for the Future Advance a Common Global Agenda on the Challenges Facing Humanity?
By Viviana Munoz Tellez, Danish, Abdul Muheet Chowdhary, Nirmalya Syam, Daniel Uribe
At a time when multilateralism is needed more than ever to address the global challenges and rising geopolitical tensions, paradoxically, the capacity and delegated power of the United Nations (UN) to uphold a rule-based order to keep peace and security is being weakened. Even in an increasingly multipolar world, a retreat towards unilateralism by world powers masked as national sovereignty is dangerous and highly unfavourable for developing countries. In this light, the United Nations Pact for the Future, a new forward-looking agenda of commitments adopted by consensus by UN Member States in September 2024, is a welcome initiative. The Pact for the Future, nonetheless, is short in delivering commitments on transformative changes in global governance and solutions to the most pressing global challenges. This document briefly examines some of the actions and high-level commitments in the Pact of the Future to strengthen multilateral cooperation and provides recommendations for their implementation.
A RAFT FOR THE FUTURE: Can the Pact for the Future Deliver the Multilateral Titanic?
South Centre Statement
24 October 2024
The South Centre participated in the Foundation for Global Governance and Sustainability (FOGGS) event evaluating the Pact For The Future. The Pact is a crucial step but needs a concrete roadmap with clear actions & timelines to find solutions central to developing countries.
