The G20 Summit is an intergovernmental platform for global economic cooperation that shapes and improves the global economic architecture and related governance. The Group of 20's agenda has expanded to include issues such as trade, climate change, sustainable development, health, agriculture, energy, environment, anti-corruption, and more, despite the fact that its initial focus was primarily on global macroeconomic issues and financial stability, which were the reasons for its genesis.
India has a rare opportunity with the G20 Presidency to lead a global effort to address the many complicated economic difficulties facing the world while also elevating the ambitions of the developing world.
Historical Background of G20 Summit
The Group was founded in 1999 as a result of the Asian Tigers' (countries in East and Southeast Asia) 1997–1998 financial crisis. Initially, it served as a discussion forum for the major industrialized and developing country central bank governors to address issues of global economic and financial stability.
Elevation to Leader's Level: Following the 2008 global financial crisis, it was raised to the level of Heads of State or Government when it became obvious that only at the highest political level would crisis coordination be viable.
1. The "premier forum for international economic cooperation" was proclaimed for it in 2009.
2. Since then, the G20 Leaders have convened regularly, and the G20 has become the leading
G20 Countries List
G20 is made up of 19 nations: Argentina, Australia, Brazil, Canada, China, France, Germany, Greece, Italy, Japan, Korea, Mexico, Russia, Saudi Arabia, South Africa, Turkey, the United Kingdom, the United States, and the European Union.
- Around 85% of the global GDP, 75% of all international trade, and 2/3 of the world's population are all represented by these members.
- Along with these member nations, the G20 also annually welcomes special guests and international organizations including the UN, World Bank, IMF, OECD, ASEAN, etc. to take part in its meetings.
Structure and Functioning of G20
The G20 is based on yearly gatherings of the finance ministers and central bank governors, with an annual summit for the leaders. There are two parallel tracks inside the G20, referred to as the Finance Track and the Sherpa Track. These two tracks direct the intergovernmental conversations that take place throughout the host administration as well as actively formulating ideas and priorities for it. They organize and maintain the topics and agreements decided upon at the summits.
| Sherpa Track | - The Leaders' personal envoys are the Sherpas of the member nations. | They focus on socioeconomic concerns such agriculture, anti-corruption, the climate, the digital economy, education, employment, energy, the environment, health, tourism, trade, and investment. | - They organize the G20's substantive work, supervise the annual discussions, and talk about the Summit's schedule. |
| Finance Track | - It is led by the finance ministers and central bank governors, who typically convene four times a year, with two meetings taking place concurrently with World Bank/IMF meetings. | Issues relating to fiscal and monetary policy, including those involving the global economy, infrastructure, financial regulation, financial inclusion, international financial architecture, and international trade |
- The G20 lacks a charter and a secretariat, according to the troika. The Troika, which consists of the outgoing, current, and upcoming presidencies, provides assistance to the Presidency. The G20 Presidency organizes the Summit and sets the schedule for a year.
- A non-binding forum: Member nations are not compelled to implement its decisions, and they are not legally binding.
- Working with international organizations: The G20 countries also maintain tight ties with organizations like the World Bank, the World Trade Organization (WTO), and the International Monetary Fund (IMF).
Significance of G20 Summit 2023
- Greater areas of collaboration: The G20's agenda has been growing to cover greater areas of cooperation in addition to its general macroeconomic strategy.
- The US and China came together on the Paris Agreement at the G20 summit in Hangzhou, China, in 2016.
- Fair and sustainable development was the main topic of the 2018 G20 conference in Argentina.
- Money laundering, international tax havens, and corruption were the main topics of discussion during the G20 summit in Germany in 2021.
- Financial stability, humanitarian crises, poverty, and assistance to least developed countries were among the topics covered during the G20 meeting in Bali (Indonesia), 2022.
- Food security: The leaders praised the Black Sea grains project and pledged to collaborate to address concerns related to food security.
- Recognize the value of gender equality and make a commitment to advancing it by encouraging more women to enter the workforce, closing the gender wage gap, and enhancing access to healthcare and education.
3. Bringing rivals together on a common stage: The G20's significance resides in its capacity to bring nations with various political philosophies, economic interests, and political systems together on a common stage to discuss and confront global economic concerns.
4. Addressing climate change: The G20 has taken certain actions to address the threat posed by climate change.
- The commitments made by the G20 members in the area of combating climate change center around a number of topics, including energy efficiency and renewable energy, the adoption of cutting-edge and clean technologies, resilient infrastructure, addressing environmental issues like biodiversity loss, the adoption of the circular economy, etc.
5. Collaboration and networking: The G20 gives leaders of other nations a chance to interact and exchange ideas, fostering the development of connections and fostering cooperation on economic challenges.
6. Global economic cooperation: In addressing economic catastrophes like the COVID-19 epidemic, the Eurozone debt crisis, and the global financial crisis of 2008, the G20 has been instrumental.
Issues and Limitations of G20
Although the G20 has contributed significantly to the development of international economic policies, there are a number of obstacles and restrictions to its efficacy:
1. Consensus-building challenges: It can be challenging for nations with diverse political and economic systems to agree on critical topics.
- For instance, the G20 found it difficult to formulate a coordinated response to the world financial crisis of 2008.
- There has occasionally been conflict inside the group over the topic of climate change.
- As seen in the Bali G20 meeting and the current Indian G20 chair, geopolitical issues like the Russia-Ukraine crisis also become a sticking point in establishing a compromise.
2. Lack of Permanent Secretariat: The G20 lacks a permanent secretariat, making monitoring difficult and ineffective as debates grow.
3. Decisions made at G20 meetings are not legally obligated to be carried out by member nations.
- For instance, the G20 nations agreed to a set of rules for preventing the financing of terrorism, but there is no system in place to ensure that these rules are followed.
4. Limited membership: Only 19 nations and the European Union are members of the G20, leaving out other significant economies. The association might become more representative of the global economy by growing its membership.
India’s G2O Presidency 2023
43 Heads of Delegation will attend the final New Delhi Summit in September 2023, the most ever in the G20, since India will be hosting the G20 Leaders' Summit for the first time in history. India's G20 Sherpa is Amitabh Kant. Through its Amrit Kaal project, India is on a quest to build a shared future for the world that has a rules-based order, peace, and equitable progress for all.
- "Vasudhaiva Kutumbakam" or "One Earth - One Family - One Future" is the slogan for India's G20 presidency.
- Brazil, Indonesia, and India would make up the Troika during the presidency.
- Nine nations have been invited in addition to the members and multilateral institutions: Bangladesh, the Netherlands, Oman, Singapore, Nigeria, Spain, the United Arab Emirates, Egypt, and Mauritius.
- African representation: India has suggested adding the African Union as a full-time member to the G20 to make it more inclusive.
- Russia-Ukraine tensions have made it difficult for India to prepare a final joint statement that would be acceptable to all G20 countries during its different G20 sessions.
India's G20 Priorities
- Green Development, Climate Finance and Lifestyle for the Environment (LiFE): India's emphasis on addressing climate change, with a focus on climate technology and finance, as well as ensuring equitable energy transitions for developing countries.
- Accelerated, inclusive and resilient growth: Focus on initiatives that can drive structural change, such as supporting small and medium-sized businesses in international trade, advancing labor rights and welfare, closing the global skills gap and inclusive agricultural values Developing chains and food systems.
- Accelerating the SDGs' progress requires a renewed commitment to the 2030 Agenda for Sustainable Development's objectives, with a focus on resolving the COVID-19 pandemic's effects.
- The promotion of a human-centric perspective on technology and enhanced information exchange in areas like financial inclusion, digital public infrastructure, and tech-enabled growth in sectors like agriculture and education are all examples of technological transformation.
- Multilateral Institutions for the 21st Century: Efforts to restructure multilateralism and create a more inclusive, accountable, and representative international system that can handle the problems of the new century.
- Women-led Development: Women's empowerment and representation should be prioritized, with a focus on inclusive growth and development, in order to support socioeconomic development and the accomplishment of the SDGs.
Significance of India’s G20 Presidency
- India's expanding economic influence: As the G20's largest economy with the highest rate of growth, India plays a crucial role in the organization, and its presidency will enable it to further fortify its economic links with other G20 members.
- India has been a prominent proponent of taking action against climate change. India's presidency of the UN can assist to set the tone for international cooperation on this subject as the globe struggles with the threat of climate change.
- The emphasis on inclusive growth in India: India's presidency will concentrate on problems like infrastructure improvement, job creation, and women's empowerment through emphasizing inclusive growth.
- India's strategic importance: The G20 presidency will give India a forum to interact with other major powers, such as the US, China, and Russia, on matters of international significance.
- Taking up the role of the Global South's voice: By hosting a gathering of the Global South nations concurrently with the G20 summits, India has taken on the role of the formerly marginalized Global South.
- The importance of Indian healthcare: India has taken the lead in ensuring that low-income and developing nations have access to the funding, vaccines, and other resources they require to recover from the pandemic. As a result, India can guarantee access to high-quality, cheap healthcare.
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