G20

Introduction:

• The G20, or Group of Twenty, is an intergovernmental forum that includes 19 countries and the European Union.
• It was formed in 1999 in response to the financial crisis of the late 1990s that significantly impacted East Asia and Southeast Asia. The aim was to stabilize the global economy by involving both industrialized and developing countries.
• The G20 accounts for approximately 90% of global GDP, 75–80% of international trade, two-thirds of the world population, and half the world’s land area.

Organisational Structure:

• The G20 does not have a permanent secretariat. Instead, the incumbent chair establishes a temporary secretariat during its term to coordinate and organize meetings.
• Sherpas lead the G20 process, representing leaders of member countries. They oversee negotiations, set the agenda, and manage the group’s work.
• The G20 has two main tracks: the Finance Track and the Sherpa Track, each supported by thematically oriented working groups.
• The presidency rotates annually among members. The current and former presidency holders, along with the upcoming presidency holder, form the Troika to ensure continuity.
• During India’s presidency, the Troika consists of India, Indonesia, and Brazil—marking the first time three developing countries and emerging economies lead together.

Objectives of the G20:

• Policy Coordination: Achieving global economic stability and promoting sustainable growth.
• Financial Regulations: Implementing measures to reduce risks and prevent future crises.
• New Financial Architecture: Establishing robust global financial governance.

India and G20:

• India took over the G20 presidency on December 1st.
• The theme for India’s G20 presidency is “One Earth, One Family, One Future”, emphasizing interconnectedness and the value of all life forms.
• India’s presidency focuses on human-centric globalization, setting the post-pandemic economic agenda for a new world order.
• Guest countries for India’s term include Bangladesh, Egypt, Mauritius, Netherlands, Nigeria, Oman, Singapore, Spain, and the UAE.

G20 Logo and Theme:

• The G20 logo uses the four colors of India’s national flag, with an image of the Earth sitting atop a lotus.
• The seven petals of the lotus symbolize the seven seas and the unity of the seven continents.
• The theme, “Vasudhaiva Kutumbakam: One Earth, One Family, One Future,” reflects India’s emphasis on environmental sustainability and inclusivity.

Various Groups under G20 India Presidency:

• Task Force on Reformed Multilateralism: Aims to draft “Multilateralism 2.0” for reforming global institutions like the UN, WHO, WTO, and ILO.
• Task Force on Digital Futures: Focuses on building inclusive digital public infrastructure.
• Finance Track: Addresses financing for infrastructure, healthcare, and sustainable growth.
• Sherpa Track: Discusses anti-corruption, agriculture, the digital economy, and climate change.
• G20 EMPOWER: Promotes women’s leadership by building alliances among business leaders and G20 nations.
• Research and Innovation Initiative Gathering (RIIG): Strengthens research collaboration among member countries.
• Eleven Engagement Groups: These consist of non-government participants providing policy recommendations.

India’s G20 Priorities:

• Inclusive, Equitable, and Sustainable Growth
• Lifestyle for Environment (LiFE)
• Women’s Empowerment
• Digital Public Infrastructure: Enhancing development in health, agriculture, education, and commerce.
• Skill Mapping, Climate Financing, Circular Economy, Energy Security, Green Hydrogen
• Development Cooperation: Addressing economic crime and pursuing multilateral reforms.

Current Global Challenges:

• Russia-Ukraine Conflict
• Rising Food Prices
• Energy Crisis
• Response to Food and Energy Challenges
• Threat of Stagflation

Significance of India’s G20 Presidency:

• Prime Minister Modi emphasizes India’s expertise in areas like women’s empowerment, democracy, and digital technologies.
• As a nation rooted in democratic values, India can highlight conflict resolution through democratic principles—crucial amid the ongoing Russia-Ukraine crisis.
• India’s foreign policy focuses on global welfare, aiming to address interconnected challenges like climate change, food and energy security, and new technologies.
• The G20 presidency also allows India to represent the Global South and advocate for developing countries.

Challenges:

• Internal Rift: Differences over the Russia-Ukraine conflict affect G20’s credibility. India must bridge these gaps and foster unity.
• Unanimous Agenda: Creating a consensus-driven agenda will be key for effective leadership.
• Governance Reform: Enhancing inclusivity and unity within G20 governance structures.
• Climate Financing: Collaborating with developed nations on climate initiatives.
• Economic Impact of the Pandemic: Managing rising global debt and inflation, supply chain disruptions, and post-pandemic economic recovery.
• Balancing Act: India must address public debt, inflation, digital transformation, and green transition while maintaining macroeconomic stability.

G20 Current Affairs

The Group of Twenty (G20) is a major international forum that brings together the world’s largest economies. Established in 1999, the G20 addresses critical global issues, including economic stability, trade, and financial regulations.

India’s G20 Presidency (2023-2024)

• India assumed the G20 Presidency on December 1, 2022, hosting the G20 Leaders’ Summit in September 2023 for the first time.
• The theme for India’s Presidency was “Vasudhaiva Kutumbakam” or “One Earth, One Family, One Future”, emphasizing inclusivity and sustainable growth.

Key Highlights of the 2023 G20 Summit

1. Inclusion of the African Union (AU)
   • The African Union was granted permanent membership, strengthening the representation of the Global South.
2. India-Middle East-Europe Economic Corridor (IMEC)
   • An initiative aimed at enhancing economic integration and connectivity, boosting trade and investment between Asia, the Middle East, and Europe.
3. Global Biofuel Alliance (GBA)
   • India led the formation of this alliance to promote biofuel adoption for energy security and environmental conservation.
4. New Delhi Leaders’ Declaration
   • A comprehensive agreement that addressed issues like sustainable development, climate change, food security, and digital innovation, showcasing global cooperation.

India’s Key Priorities

• Digital Public Infrastructure: Promoting digital inclusion to drive economic growth.
• Climate Action: Advocating for sustainable practices and the Lifestyle for Environment (LiFE) movement.
• Women’s Empowerment: Fostering gender equality and boosting women’s roles in the economy.
• Reformed Multilateralism: Pushing for reforms in global institutions for equitable representation.

Significance for India

• India’s Presidency provided a crucial platform to assert its leadership on pressing global issues, from sustainable development to digital innovation.
• The summit demonstrated India’s diplomatic strength, especially in achieving consensus on various declarations amid geopolitical challenges.

Challenges Addressed

• The ongoing Russia-Ukraine conflict posed significant challenges in building consensus among G20 members.
• India’s diplomatic efforts played a critical role in navigating these complexities and promoting dialogue.

Conclusion

India’s leadership during the G20 Presidency has bolstered its global standing, especially as a champion of the Global South. Key initiatives like the IMEC and GBA highlight India’s focus on sustainable and inclusive economic growth. The successful conduct of the G20 Summit reinforced India’s role as a key player in shaping global economic and policy frameworks.