G20



Published on 02 Dec 2024

The G20, formed in 1999, is a group of twenty of the world’s largest economies that meets regularly to coordinate global policy on trade, health, climate, and other issues. Previous summits have addressed the COVID-19 pandemic, the 2008 financial crisis, the Iranian nuclear program, and the Syrian civil war. At the 2023 summit, the group welcomed the African Union as its newest member, even as the Russian invasion of Ukraine continued to cause divisions.

Significance of G20

  • Inclusive Representation: With a larger membership, it accommodates diverse perspectives, enhancing the credibility and effectiveness of collective agreements.

    • Example: Together, the G20 members represent 85% of global GDP, 75% of international trade and two-thirds of the world's population.

  • Agile Decision-Making: With only 20 members, the G20 demonstrates agility in decision-making. 

  • Broad Global Focus: Beyond traditional macroeconomics and trade, G20 summits address a spectrum of global issues.

    • Example: Issues including development, climate change, energy, health, counter-terrorism, migration, and refugees

  • Global Economic Cooperation: Plays a pivotal role in responding to economic crises

    • Example: G20’s role in addressing the 2008 global financial crisis, the Eurozone debt crisis, and the COVID-19 pandemic. 

  • Addressing Climate Change: Recognizing the urgency of climate change, the G20 has initiated efforts to tackle the issue.

    • Example: Commitments around areas such as energy efficiency, renewables, advanced technologies, resilient infrastructure, biodiversity loss, and the Circular Carbon Economy.

Issues with G20

  • Membership Critique: The G20's selection process has been criticized for its arbitrary nature, raising concerns about legitimacy.

    • Example: The underrepresentation of African countries highlights exclusivity issues in membership.

  • Accountability and Legitimacy Concerns: The G20's informal setup, lacking a permanent secretariat, results in variable agendas and weak monitoring mechanisms.

  • Non-binding: Declarations are not legally binding, and the group's transparency and accountability are questioned due to closed-door meetings and the absence of a formal charter.

    • Example: While the G20 nations have established guidelines to prevent the financing of terrorism, there exists no mechanism to compel adherence to these guidelines.

  • Shifting Focus: Originally designed for global governance, G20 meetings now face criticism for becoming platforms for political showdowns. 

    • Example: Meetings characterized more by talk and photo opportunities than impactful decision-making.

  • No consensus mechanism: The presence of diverse economic and political systems among countries can pose challenges in achieving consensus on crucial issues.

    • Example: The Russia-Ukraine crisis has been a point of contention in consensus-building, evident in events like the Bali G20 summit and during India's current G20 presidency.

India's G20 Presidency 2023 Overview


India hosted the historic G20 Leaders' Summit in September 2023, with a record 43 Heads of Delegation participating. Amitabh Kant serves as India's G20 Sherpa, and the nation is dedicated to fostering a shared global future marked by a rules-based order, peace, and inclusive growth through the Amrit Kaal initiative.

Key Points


  • Presidential Theme: India's G20 presidency revolves around the theme "Vasudhaiva Kutumbakam" or "One Earth - One Family - One Future," emphasizing global unity and shared destiny.

  • Troika and Invitees: The Troika for India's presidency includes Indonesia, India, and Brazil. Additionally, nine countries—Bangladesh, Netherlands, Oman, Singapore, Nigeria, Spain, the United Arab Emirates, Egypt, and Mauritius—have been invited. Notably, India proposes the inclusion of the African Union as a permanent member for greater inclusivity.


Major Outcomes of G20 Summit 2023

  • Admittance of the African Union (G20 now G21)

    • G20 leaders agree to admit the African Union as a permanent member, enhancing representation for developing countries.

    • AU's inclusion reshapes global trade, finance, and investment, providing a stronger voice to the Global South within the G20.

  • Global Biofuels Alliance (GBA)

    • India-led initiative promoting biofuels for energy transition.

    • Launched with nine members, including the US, Brazil, and UAE, aiming to accelerate biofuels growth and contribute to job creation.

  • India – Middle East – Europe Economic Corridor (IMEC)

    • MoU signed for IMEC, connecting India, the Middle East, and Europe.

    • Part of the broader Partnership for Global Infrastructure Investment (PGII), offering an alternative infrastructure network to China's Belt and Road Initiative.

  • G20 Global Partnership for Financial Inclusion Document

    • World Bank commends India's Digital Public Infrastructure.

    • Document highlights transformative impact and initiatives shaping the DPI landscape.

  • Tripling Global Renewable Energy Capacity By 2030

    • G20 commits to tripling global renewable energy capacity by 2030.

    • Aimed at reducing carbon emissions and aligning with efforts to limit global warming.

  • Commitment to Global Food Security and Nutrition

    • G20 leaders address rising commodity prices, emphasizing the elimination of hunger and malnutrition.

    • Historic consensus on principles for food security and nutrition, including responsible public and private investment in agriculture.

  • Small Arms and Terrorist Safe Havens

    • New Delhi Declaration condemns terrorism in all forms.

    • Focus on supporting the Financial Action Task Force (FATF) and enhancing global asset recovery networks.

  • Healthcare Resilience and Research

    • G20 emphasizes building resilient healthcare systems.

    • Commitment to strengthen global health architecture and address ongoing epidemics.

  • Finance Track Agreements

    • Foundation laid for a coordinated policy and regulatory framework for cryptocurrencies.

    • Acknowledgment of the India Stack model for digital public infrastructure in financial inclusion.

  • India-Mercosur Preferential Trade Agreement (PTA)

    • India and Brazil commit to expanding the India-Mercosur PTA for enhanced economic ties.

  • Climate Financing Commitment

    • G20 declaration calls for a substantial increase in climate financing, stressing the need for trillions of dollars to achieve net-zero emissions by 2050.

  • India’s Cultural Showcase

    • Bharat Mandapam, Bronze statue of Lord Nataraja, Konark Chakra, Nalanda University image, Thanjavur Paintings, Dhokra art, Buddha statue, and diverse musical heritage showcased during the summit.

  • Transition of G20 Presidency

    • Indian Prime Minister hands over G20 chair to Brazilian President Luiz Inacio Lula da Silva, who officially takes over the presidency on December 1, 2023.


Way Forward

  • G20 Institutionalization: Establishing clear objectives, vision, and a mission, alongside a permanent secretariat, ensures commitment oversight and maintains a consistent agenda.

  • Broadening Representation: Expand G20 membership for a more diverse and representative global platform.

  • Tax Structure Streamlining: Harmonize tax systems and ensure credit parity to foster a competitive market and discourage protectionist measures.

  • East-West Diplomacy: G20 can mediate economic disruptions caused by sanctions, fostering collaboration among nations like India, Indonesia, and South Africa to bridge differences.

  • Coal Phase-Out Commitment: Prioritize phasing out domestic coal consumption among G20 nations to significantly contribute to climate change mitigation.

  • Reviving Financial Transaction Tax: Consider a Global Financial Transaction Tax to fund green technology projects in Least Developed Countries, supporting sustainable development.

  • Public Health Priority: Prioritize public health within the G20 agenda, promoting global health initiatives for better preparedness and collaboration in addressing future health challenges.

G20’s impact lies in its ability to shape global economic policies and foster international cooperation, serving as a pivotal forum for addressing pressing global challenges and promoting inclusive economic growth.


Tags:
Polity

Keywords:
G20 India's G20 Presidency 2023 One Earth - One Family - One Future Troika African Union Global Partnership for Financial Inclusion Document Global Biofuels Alliance GBA India – Middle East – Europe Economic Corridor IMEC international organisat

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