G 20
Context:
- India’s election to lead the G20 for the 18th time heralds the start of a new era.
The G20:
- Every year, the G20 summit brings together leaders from the countries with the largest and fastest-growing economies. It is an advisory group rather than a forum founded on treaties, hence its conclusions are recommendations to the members themselves.
Members of G 20:
- Among the nations covered on this list are Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South Africa, South Korea, Turkey, United Kingdom, United States, and the European Union.
G-20 operation:
It has two tracks:
- All meetings with central bank governors and their G20 deputies are part of the finance track. Throughout the year, they meet often to discuss issues like macroeconomic coordination, financial inclusion, global taxes, and investment. They also talk about fiscal and financial matters.
- The Sherpa track focuses on more broad subjects like trade, agriculture, health, energy, the environment, and the digital economy. Other topics include political engagement, fighting corruption, development, and energy.
- The Sherpa is the person who creates, oversees, and implements the ideas and recommendations on behalf of the head of each G20 country. Sherpas finish all required preparations before leaders make decisions.
Objectivity of the G20:
G20 members include approximately:
80 percent of global GDP
- 75% of global trade
- Two-thirds of the world’s population.
The G-20 “Troika”:
- The rotating three-member committee of the immediately prior, current, and following presidencies was created because there is no permanent G20 secretariat to ensure continuity in the agenda. For the first time, the Troika will include representatives from the three rising market economies of Brazil, India, and Indonesia.
Presidency:
- Every December, a G20 country from a rotating zone takes up the presidency for a year. The G20’s leader is picked from a different regional group of countries.
- India has assumed the G20 leadership as the country marks 75 years of independence and rises to the fifth-largest economy in the world. With the declared objective of showcasing its rich cultural past and economic power to the outside world, it is thus setting a precedent by holding more than 200 sessions in more than 50 locations around the country as opposed to limiting itself to a small number of major cities.
History of G 20:
- It was acknowledged after the 1997–1998 Asian Financial Crisis that important emerging market countries needed to be included in discussions concerning the global financial system. The G20 Finance Ministers and Central Bank Governors conference was therefore established in 1999 by the G7 finance ministers. Protectionist measures weren’t allowed to come back, the Bretton Woods institutions were improved, trade and investment were boosted, and other topics were considered.
- During the 2008 Financial Crisis, the necessity for fresh political consensus building was acknowledged all across the world. It was decided that the G20 leaders will meet once a year going forward.
- G-20 summits now include a broader variety of themes, including the political, strategic, and security challenges that the world and its member countries are currently facing. The development of consensus and policy solutions among industrialised nations was the aim of discussions on issues including global financial governance, anti-corruption, and financing of terrorism.
- Alterations within the G20:
- The next turning point happened in 2010, when South Korea was in charge of the G20 and development issues became a primary priority. Over the next years, other working groups were created as the Sherpa Track’s mission expanded.
- Despite the U.S.-China trade war and disagreements on a variety of issues, including climate change, the G20 managed to survive the storm in 2017. For the first time, the G20 recorded a Leader’s Declaration, with 19 members approving of the agenda and one member objecting.
- From the perspective of global governance, the inability to come to an agreement symbolised the notion that no one country is more superior than the rest of the group, even though it may have set a bad precedent.
Adaptability, restoration, and applicability of Covid-19:
- The COVID-19 pandemic once again demonstrated the importance of the G20 summit by highlighting the need for a unified approach to weather the storm and recover resiliently in 2020. The G20 leaders created a series of urgent policies and measures in response to the outbreak to protect people and the global economy. The subsequent Italian and Indonesian presidencies prioritised the fight against the disease.
Moving ahead:
- The current pandemic outbreak in China, the ongoing food and energy crisis caused by the raging Russia-Ukraine conflict, the effects of climate change, and the global recession caused by persistent inflation have made reaching consensus on a variety of global issues during the Indian presidency challenging.
- Under the appropriate theme of “Vasudhaiva Kutumbakam,” India is committed to highlighting the notion that the world is a family and that the need for joint action has never been more important (or “One Earth, One Family, One Future”).
- In the current atmosphere of multilateral fragilities and opportunities, the G20 is maybe the only inclusive meeting that can set the agenda for international peace and harmony.
