G 20
About:
- The G20 is a loose coalition of 19 nations, the EU, and officials from the World Bank and International Monetary Fund.
- The largest advanced and rising economies in the world make up the G20 membership, which collectively accounts for more than 80% of global GDP, 75% of global commerce, and 60% of global population.
How did the G20 get started?
- This ministerial-level meeting was created as a result of the G7 inviting both developed and developing nations to discuss the 1997–1999 ASIAN Financial Crisis. Meetings between central bank governors and finance ministers first started in 1999.
- The globe recognised the need for new consensus building at the highest political level during the 2008 Financial Crisis. The G20 leaders will henceforth meet once a year, it was determined.
- The G20 finance ministers and central bank governors continue to meet separately twice a year to help prepare for these summits. They get together at the same time as the World Bank and the International Monetary Fund.
How Does the G20 Operate?
There are two tracks for the G20’s work:
- All talks with G20 central bank governors and their deputies are part of the finance track. They meet frequently throughout the year and concentrate on matters related to money and finances, financial rules, etc.
- Broader topics including political participation, anti-corruption, development, energy, etc. are the subject of the Sherpa track.
- Each G20 nation is represented by a Sherpa, who acts on behalf of the country’s leader to plan, direct, implement, etc. Shri Shaktikanta Das, an Indian, served as the G20 sherpa in Argentina in 2018.
Who are the G20 members?
- Argentina, Australia, Brazil, Canada, China, France, Germany, Greece, Italy, Japan, Korea, Mexico, Russia, Saudi Arabia, South Africa, Turkey, United Kingdom, United States, and the European Union are the other members of the G20.
- Spain participates in leader summits as a permanent, non-member invitee.
What are the G20’s Structure and Functions?
- A structure that annually rotates the G20 Presidency provides a regional balance over time.
- The 19 nations are divided into 5 groups with a maximum of 4 nations each for the purpose of choosing the presidency. Between each group, the presidency alternates. The G20 elects a nation from another group to serve as president each year.
- Along with Russia, South Africa, and Turkey, India is in Group 2.
- There is no fixed secretariat or headquarters for the G20. Instead, it is the responsibility of the G20 president to put together the G20 agenda after consulting with other participants and in reaction to changes in the global economy.
- TROIKA: When a new nation assumes the presidency each year, it collaborates with the outgoing and incoming administrations. This process is referred to as TROIKA. This guarantees the group’s agenda’s stability and continuity.
What are the G20’s strengths and accomplishments?
- With only 20 members, the G20 is small enough to act quickly and adjust to changing situations.
- Inclusive: By including invited nations, international organisations, and civil society groups each year through engagement groups, a larger and more thorough viewpoint is enabled when evaluating the world’s problems and forging consensus on how to solve them.
- Cooperation: The G-20 has been instrumental in improving cross-national coordination and strengthening the global financial regulatory framework.
- helped multilateral development banks grow their lending by US$235 billion at a time when private sector sources of funding were declining.
- One of the G20’s major accomplishments was the prompt distribution of emergency funds during the global financial crisis of 2008.
- By enhancing monitoring of national financial institutions, it also contributes to reforms in international financial institutions. For instance, the Base Erosion and Profit Shifting (BEPS) project, which the G20 and OECD are driving, and the adoption of tax transparency norms.
- The WTO estimated that if the Trade Facilitation Agreement were completely implemented by 2030, it might contribute up to between 5.4 and 8.7% to the global GDP, hence the G20 was crucial in getting it ratified.
- Better Communication: The G20 brings together the world’s leading industrialised and developing nations to promote consensus and logic in decision-making through debate.
- The leaders agreed at the G20 summit in November 2021 to achieve carbon neutrality by or about the middle of the century.
- The Rome Declaration has been ratified.
- The G20 Climate Risk Atlas, which offers climate scenarios, information, data, and predicted climatic changes throughout the G20 countries, was previously published.
What difficulties does the G20 face?
- No enforcement mechanism: The G20’s toolkit includes straightforward information exchanges and best practises, as well as agreements on shared, quantifiable goals and coordinated action. Except for the motivation provided by peer review and public accountability, none of this is accomplished without consensus and is not enforceable.
- The decisions are not legally binding because they are the result of discussions and consensus that take the form of statements. These statements are not contractual obligations. There are just 20 people in this advising or consultative group.
- Polarization of Interests: The presidents of Russia and Ukraine have been invited to the G20 summit, which will take place in November 2022.
- The United States has already threatened to boycott the Russian President’s speech if he is invited.
- NATO’s expansion, China’s strategic growth, and Russia’s territorial aggression in Crimea and now Russia Ukraine Global priorities shifted in 2022 due to conflict.
- As more nations choose to be “G-zero” (a phrase popularised by political pundit Ian Bremmer to imply “Every Nation for Itself”) over the G-7, G-20, BRICS, P-5 (UNSC Permanent Members), and other multilateral organisations, globalisation is no longer a hip concept.
What might the future hold?
- The G20 cannot solve all of the world’s issues. The G20, however, has played a significant role in international cooperation over the last ten years.
- As emerging nations look for ways to influence and contribute to the world order, effective global governance, like the G20, is crucial.
- The G20 must fortify its collaboration with international organisations including the IMF, OECD, WHO, World Bank, and WTO and give them the responsibility of keeping track of developments.
- For the benefit of all the member nations, global cooperation should take precedence above national interests.
- To overcome situations like the Ukraine-Russia conflict and disagreements between Russia and the west, dialogue and diplomacy should be used.
- India should concentrate on using the G20 summit in 2023 as a forum to debate issues like harsh trade restrictions and penalties, international disputes, and to promote world peace and cooperation.
