G20 logo displayed in Rio de Janeiro, Brazil Photo: Xinhua

Editor's Note: The 19th G20 Summit was held in Rio de Janeiro, Brazil, from November 18 to 19, under the theme of "Building a Just World and a Sustainable Planet," chosen by Brazil, the G20 presidency. This allows the world to see that this G20 Summit will continue to focus on development issues, leading to more positive expectations from the global community. Jeffrey Sachs, a world-renowned American economist, a professor and director of the Center for Sustainable Development at Columbia University, noted in an interview with the Global Times (GT) that to boost sustainable development, the key issue is to boost critical investments in the low-income countries and lower-middle-income countries. The win-win strategy for China and the partner countries is very important for the vital green transformation of the world economy.

GT: World leaders gathered in Brazil for G20 Summit amid global challenges in the economy, climate, and more. What is your perspective on the importance of all parties collaborating to promote multilateralism in addressing these global issues?

Jeffrey Sachs: The biggest shortcoming of the world today is the lack of cooperation between the rich West, led by the US, and the rest of the world.  The G20 brings together all major economies, rich, middle-income, and poor, so it should be an excellent forum for global economic cooperation.  Unfortunately, the US has been much more interested in defending its alleged "primacy" rather than in cooperating seriously and productively with developing economies.  In the case of China, the US tries to "contain" China rather than cooperate fruitfully and respectfully with China.  

GT: In the context of global economic cooperation, how do you view the increasing efforts of the Global South to uphold multilateralism and promote an open and coordinated global economy?

Jeffrey Sachs: The vast majority of the world wants a geopolitical system of peace, mutual respect and shared prosperity, rather than a system of Western hegemony.  This is the basis of the rapidly growing alliance of BRICS nations.  It is a completely understandable development in reaction to the hegemonic aspirations of the US. 

GT: In supporting and promoting cooperation among the Global South, China has consistently taken concrete actions. In your opinion, what positive signals are currently emerging in Global South cooperation? How should it continue to advance in the future?

Jeffrey Sachs: The most important concrete action by China is the promotion of peace through the principles of mutual respect, peaceful co-existence, non-interference, and mutual benefit.  The world is inspired by China's demonstrated and proven support for peace.  

China is also demonstrating its support for shared prosperity and sustainable development through the Belt and Road Initiative and related efforts to promote green development, such as the initiation of the Asian Infrastructure Investment Bank (AIIB) and the New Development Bank of the BRICS.  The BRI is promoting large-scale investments in 21st century infrastructure - including zero-carbon energy and 5G digital connectivity - in China's partner countries around the world.  This is a win-win strategy for China and the partner countries, and is very important for the vital green transformation of the world economy, including the rapid transformation to zero-carbon energy.     

GT: Two out of the three main topics of the G20 Rio Summit are related to development issues - social inclusion and the fight against hunger and poverty and sustainable development and energy transition. This emphasis on development aligns with the G20 Hangzhou Summit, where development issues were addressed as a core topic for the first time. How do you view this continuity in focus on development?

Jeffrey Sachs: The key issue of development is to boost critical investments in the low-income countries (LICs) and lower-middle-income countries (LMICs), notably in human capital (education, health, and nutrition) and in infrastructure (green energy, modern transport including fast rail and green shipping, and digital connectivity). A key solution is better access for the LICs and LMIC to long-term, low-interest loans.  This increased financing should be brought about through expanded lending by the multilateral development banks and through improved market financing for the LICs and LMIC.  The Global Financial Architecture needs fundamental reform to secure the improved financing of developing countries.  Up until now, the US and other high-income countries have failed to take on their responsibilities for global financial reform.   

GT: What is the global significance of China's achievement in poverty reduction? By 2024, the total number of extreme poor in the world is about 692 million, 8.5% of global population, according to data from September 2024 global poverty update from the World Bank. Can China's progress in poverty reduction serve as a source of confidence and experiences for other nations?

Jeffrey Sachs: China's elimination of extreme poverty in the forty years between 1980 and 2020 is indeed a great inspiration and also role model for Africa, which is home today to most of the world's extreme poverty.  Africa should aim to achieve consistently high rates of economic growth between now and 2063, the 100th anniversary of the foundation of the African Unity (now known as the African Union).  Africa can accomplish this high-growth path through a strong economic union of the African nations, and high rates of investment in human capital and infrastructure, following China's example.  Moreover, the China-Africa partnership in economic development will also be key, as China will be a vital source of technology, education, training, and long-term financing for Africa on Africa's high-growth path.   

GT: Global trade cooperation is currently facing significant challenges. How should countries approach the balance between competition and cooperation to achieve win-win outcomes in trade?

Jeffrey Sachs: The US is likely to turn highly protectionist.  The BRICS should respond to US protectionism by expanding trade among the emerging and developing countries, which are the fastest growing part of the world economy.  Even if the US market is protectionist, the rest of the world will remain open for a rapid expansion of trade.  One key here is Europe.  Europe should be smart enough to maintain a strong, solid and expanding trade relationship with China even if the US turns protectionist.   

GT: What strategies should countries adopt to coordinate their macroeconomic policies, address development challenges, mitigate economic risks, and promote overall economic prosperity?

Jeffrey Sachs: Most importantly, the G20 should jointly agree to accelerate progress toward the Sustainable Development Goals (SDGs), the Paris Climate Agreement, and the Kunming-Montreal Biodiversity Framework, and to take steps in the G20, the Bretton Woods Institutions, the multilateral development banks, and the UN system, in support of those goals.  The G20 should listen to its own expert groups that have long recommended a major scaling up of financing for the SDGs and climate action.