Sansad TV: New India Debate - G20 Presidency | Current Affairs & Hindu Analysis: Daily, Weekly & Monthly - UPSC PDF Download

G20

The G20 is a yearly gathering of leaders from the countries with the biggest and fastest-growing economies.

• These nations make up 85% of the world's GDP and two-thirds of its population.
• The G20 Summit is formally referred to as the "Summit on Financial Markets and the World Economy."
• Following the Asian Financial Crisis in 1997-1998, it was recognized that major emerging market countries should be involved in discussions on the international financial system. In 1999, G7 finance ministers agreed to establish the G20 Finance Ministers and Central Bank Governors meeting.
• The group doesn't have a permanent staff, so each December, a G20 country from a rotating region assumes the presidency.
• That country is responsible for organizing the next summit and smaller meetings for the upcoming year.
• They can also choose to invite non-member countries as guests.
• The first G20 meeting took place in Berlin in 1999, prompted by a financial crisis in East Asia that affected many countries worldwide.
• Full membership includes: Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South Africa, South Korea, Turkey, the United Kingdom, the United States, and the European Union.

Benefits of G20 Presidency

• The 17th G20 Heads of State and Government Summit occurred in Bali.
• After Indonesia, India will assume the presidency of the G20 from December 2022 to November 2023.
• Global agenda: India will have the chance to propose and shape the global agenda and discussions.
• Global economic growth: The G20 plays a crucial role in ensuring global economic growth and prosperity, representing over 80% of the world's GDP.
• Leadership potential: The country's leadership potential and diplomatic foresight in organizing such a significant event and achieving meaningful outcomes will be tested.

Its relevance in changing times

• As globalization advances and various issues become more interconnected, recent G20 summits have focused not only on the macro-economy and trade but also on a wide range of global issues that significantly impact the global economy. These include development, climate change and energy, health, counter-terrorism, as well as migration and refugees.
• The G20 aims to foster an inclusive and sustainable world by addressing these global issues.
• The increased involvement of emerging countries in global issues,
• reforming international financial institutions,
• monitoring national financial institutions,
• improving regulations in economies that contributed to the crisis, and establishing safety nets to prevent future problems.
• The G20 also played a key role in providing emergency funds during the 2008 crisis and is important in financing development.

The relevance of the G20 has been questioned for some time now. The reasons for this are

• The G20 has largely skirted around important challenges to the world economy, taking minimal action. Consequently, in recent years, there has been consistent criticism of the G20. Many view it as just another forum for discussion and photo opportunities.
• The international media, in any case, appears to show little interest in the summit's official agenda – future of work, infrastructure for development, and sustainable food future – and instead focuses mostly on bilateral talks such as the USA-China trade disputes.
• Ironically, the most significant threat to global economic stability today arises from an area that the G20 initially excluded from its agenda when it was formed in 2008-09: international trade.
• Although the director-general of the World Trade Organisation (WTO) is invited to the G20, multilateral trade was intentionally kept outside the G20's scope so that the G7 could continue to manipulate the WTO's agenda.
• However, when confronted with the current challenge to global growth caused by US unilateral trade policies, the G20 will only discuss long-term issues like the future of work, infrastructure, and food, while immediate trade-related matters arising from US actions will be addressed through bilateral discussions on the sidelines.

Way Forward

• Given the intellectual and analytical resources available to G20 leaders, it is crucial to review past mistakes and find ways to rectify and prevent them in the future.
• Devoting an entire session of the G20 to the problem of terrorism would be advisable.
• What's the point of solely focusing on economic growth when global disparities and power politics pose significant and enduring threats to global human security?