Background Paper No. 35
By Udaibir Das and Hansika Nath
The Sovereignty Premium Countries Pay for Financial Autonomy
By Udaibir Das
In a climate emergency, redundancy might be precisely what resilience requires. The sovereignty premium is that insurance price. Whether it’s worth paying depends on how much autonomy matters versus efficiency – and whether choice exists at all.
Two Months From COP30, Climate Commitments Are Falling Short
By Anit Mukherjee
With only two months left for the start of the leaders’ summit in Belém, the future of climate action seems to be based more on hope than conviction. A positive outcome from COP30 will require stronger commitment from the global community than what we have seen until now.
Why macrofinancial surveillance fails when it matters most
By Udaibir Das
Financial surveillance fails when it matters most. Every major financial disruption – from the 1997 Asian crisis to the 2008 financial crisis or recent geopolitical shocks from wars, sanctions and trade realignments – has exposed how blind spots persist in national systems, regional arrangements and global oversight.
GST reform is pointless if it doesn’t simplify tax slabs. 40% rate is counterproductive
By Karan Bhasin
A lesser-known reality of the GST is that it has a total of eight tax slabs, excluding the exemptions. These start at 0.25 and go all the way up to 28 per cent.
The Impossible Choice: Tariffs, Sanctions and Fragmentation
By Udaibir Das
In dynamic-system terms, the global economy has shifted from a high-integration equilibrium towards a more fragmented state, but the transition path is still in motion. For financial institutions, the challenge is calibrating marginal gain in resilience against the marginal erosion of competitive advantage.
Resurrecting the Development Agenda in the G20: Examining Policy Continuity across Global South Presidencies
Indo-Pacific Digital Networks for the Future
By Anit Mukherjee
The Indo-Pacific’s future will be shaped by secure, interoperable digital systems that advance public service delivery, expand financial inclusion, and foster cross-border collaboration.
Do debt swaps deliver on development finance?
By Udaibir Das
While financial institutions promote debt swaps as ‘win-win’ solutions that address both debt distress and development financing, borrowing countries report a systematic failure in achieving both objectives, revealing an inversion of development finance principles.
How developing countries are turning climate risk into economic opportunity
By Udaibir Das
If climate finance is to support transitions that are durable and inclusive, it must evolve to accommodate precisely these kinds of interventions: institutionally grounded, locally designed and systemically significant.
Bridging the AI Divide: A BRICS Strategy for Inclusive Innovation, Sovereignty, and Capacity Building
By Anit Mukherjee
As artificial intelligence (AI) becomes a key enabler of economic and social transformation, the BRICS grouping — comprising both emerging and influential economies — has a unique opportunity to shape the trajectory of AI development through a Global South lens.
The Rise of Stablecoins and How to Regulate Them
By Udaibir Das
As private digital tokens gain ground, existing oversight and payment monitoring frameworks are struggling to keep pace. While regulators debate their response, the market—driven mainly by U.S.-based technology and market actors—is moving ahead.
The arc of ascent of China’s financial system
By Udaibir Das
China must build on its institutional progress and the policy suggestions noted in the 2025 FSSA while adapting to a more fragmented global financial landscape. The shift from insulation, as pointed out by the IMF in 2010, as well as the shift to sensible integration, as outlined by the IMF in 2025, stays unfinished.
Capital crunch stifles entrepreneurs in low-income economies
By Udaibir Das
As concessional finance declines, vulnerabilities mount and aid priorities shift, vulnerable low-income countries must increasingly rely on domestic sources of funding. Efficient capital markets are not a luxury – they are foundational infrastructure for economic growth.
What happens when global donors shy away from aid
By Udaibir Das
The key question is not whether the decline in aid and external assistance will push these economies towards more debt – it already does – but rather what kind of debt they will incur and what long-term implications it will bring.
New AI models risk economic amnesia
By Udaibir Das
As AI takes on a greater role in economic analysis and policy, an unsettling question arises: will its ability to recognise systemic risks with historical precedents weaken with a lack of immediate algorithmic reference?
From Galápagos to Global: Leveraging Debt-For-Nature Swaps for Debt Relief and Environmental Protection
2025 could be the tipping point for India’s economic aspirations
By Udaibir Das
The world’s most populous democracy faces a turbulent landscape of geopolitical rivalries, technological shifts and the urgency of climate action. The question remains: will global economic forces propel India toward leadership or will they impede its ascent?
Digital Public Infrastructure as a Catalyst for Private Sector Innovation: Lessons from Fintech Sector in India
Outlook 2025: Crucial ‘bridge year’ for Africa to lead on the global stage
By Udaibir Das
In 2024, Africa’s economic and political importance grew significantly, laying a strong foundation for 2025 to be a transformative year for the continent.