Indian Council of World Affairs

Good evening, Distinguished Experts, Members of the Diplomatic Corps, Scholars & Friends

A warm welcome to the Indian Council of World Affairs, and for today’s Panel Discussion on ‘Latin America in the Newly Emerging World Order’.

We decided to curate today’s panel discussion because we believe that Latin America today stands at a defining moment. In an era when the international system is shifting toward a multipolar order, the Latin American region aspires to be recognized as a credible pole of power, prosperity, and partnership.

Yet, despite its vast potential, Latin America’s global rise remains constrained by deep-rooted domestic challenges. Fragmented markets, polarized politics, fragile institutions, persistent corruption and organised crime continue to undermine its potential.

Ideology, which has historically shaped the region’s political and economic landscape, remains a double-edged sword, offering a glimmer of hope, but too often diverting attention from pressing developmental needs. The overemphasis on left–right divides has eroded policy continuity, discouraged pragmatic cooperation, and weakened regional integration. If Latin America seeks to become a meaningful actor in the emerging world order, it must move beyond ideological rigidity. The path forward lies in moderation, institutional stability, and long-term policy coherence.

Transcending ideological polarization is also crucial for unlocking the region’s economic potential. Latin America needs a pragmatic middle ground, where economic policies are shaped not by ideology but by pragmatism, inclusiveness, and continuity. Moreover, economic diversification away from overreliance on commodities and extractive industries is essential. The region must invest in innovation, value-added production, and human capital. A balanced approach between state intervention and market freedom, supported by deeper regional integration rather than extra-regional dependencies will be vital for fostering inclusive and enduring prosperity.

Politically, rebuilding public trust is critical. The rise of non-traditional parties and populist leaders reflects ideological fatigue. Yet, real transformation will depend not on populist impulses, but on pragmatic leadership of leaders who can balance national interest with regional cooperation and act beyond ideology. Moreover, transparent governance, strong institutions, and genuine participatory politics can help bridge the widening gap between state and society. In the absence of robust institutional checks and balances, populism often evolves into a new form of authoritarianism. Such trends ultimately stall inclusive development and prevent the region from realizing its full potential.

Socially, the region must focus on reducing inequality, strengthening education and healthcare, and ensuring gender justice. Populist redistributive rhetoric has often failed to deliver genuine equity. True progress lies in fostering social cohesion, dignity, and equal opportunity for all citizens, without allowing politics to exploit social divides for short-term gain.

Finally, addressing corruption, organized crime, and governance deficits remains essential for any meaningful renewal. Lasting reform requires robust legal frameworks, accountable institutions, and public transparency. Unless these domestic challenges are addressed through a shared, region-wide vision, Latin America risks missing another historic opportunity like the ‘lost decade of 1980s’ to translate its potential into tangible global influence.

I urge you to go through our special publication “Latin America Escaping the Trap of Ideology” to understand more about the challenges faced by the region, which is available on our website.

Another issue of importance is the US-China contestation in Latin America. The region today stands at a pivot either moving towards diversifying its external relations and strengthening its regional integration mechanisms or as a passive bystander. It is pertinent that a region that has witnessed its fair share of external intervention should be poised to leverage its strategic autonomy. It must augment its collective bargaining power in such a scenario by strengthening regional coordination and avoiding asymmetric dependencies. Skilled leadership supported by informed public opinion is necessary to navigate geopolitical shifts and exercise strategic autonomy.

Further, Latin America has historical and traditional relations with Europe. It is not mere coincidence that it was in Latin America that the core-periphery theories of economic development and international relations were conceptualized. As Europe itself goes through geopolitical turbulence with impact on intra-European relations as well as Europe’s relations with the rest of the world, it will be incumbent on the two sides to find new meaning in their ties and steer them in a direction that promotes Latin America’s own identity, own ethos, own interests, set of values and which looks into the region’s unique civilizational heritage. As I mentioned earlier, extra-regional dependencies have to give way to self-reliance and regional inter-dependence. As is true for other regions of the Global South, Latin America has to be the true decider of its destiny and the future of its people.

India–Latin America relations have gained renewed momentum, reflected in recent high-level exchanges, including the visit of the Prime Minister of India to Trinidad & Tobago, Argentina, & Brazil and the President’s visit to Suriname. Both regions are united by a shared aspiration to build a more equitable international order and to strengthen the collective voice of the Global South.

India’s growing engagement in renewable energy, biofuels, and lithium supply chains aligns closely with regions goals of energy diversification and green transition. The collaboration can not only strengthen long-term energy security but also advance both regions’ climate commitments and sustainable development objectives.

Equally transformative is cooperation in digitalization. India’s Digital Public Infrastructure model, exemplified by the Unified Payments Interface and Aadhaar-based systems, is already adopted in countries like Trinidad and Tobago and being implemented in Guyana, Peru, Uruguay, and Jamaica.
 

India’s development partnership also extends to capacity building, education, and healthcare. Many Latin American countries have joined India-led platforms such as the International Solar Alliance, the Coalition for Disaster Resilient Infrastructure, and the Global Biofuel Alliance, underscoring shared commitment to sustainability and resilience.

Together, India and Latin America can craft an architecture of South-South cooperation rooted in transparency, solidarity, mutual respect, and shared prosperity. By sharing technology, expertise, and investment models, both countries provide an inclusive development pathway that lessens their reliance on traditional power centres. We at ICWA do believe that the coming decade offers a historic opportunity to redefine this partnership, not just as a transactional relationship, but as a transformative alliance that strengthens both regions’ voices in shaping a fairer, multipolar world and in uplifting the peoples of the developing countries of the Global South.

With this, I offer the floor to the Chair for conducting the rest of the proceedings.

Thank You.

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