The Hindu Editorial Analysis- 6th November 2024 | Current Affairs & Hindu Analysis: Daily, Weekly & Monthly - UPSC PDF Download

A Setback 

Why in News?

The results of the October 27 general election in Japan have thrown all calculations within the G-7 country and one of the most powerful economies into disarray. The ruling Liberal Democratic Party (LDP) dropped from 256 seats to 191 seats in the 465-seat House of Representatives, and its partner Komeito, from 32 to 24, putting the coalition short of a majority. The LDP, in power for much of the past six decades, has been bleeding public support, particularly after Shinzo Abe stepped down in 2020 and was assassinated in 2022.

•  The Group of Seven (G7) is a casual group made up of the world's top industrial nations. It was created to talk about economic stability and to work together on economic policies. 
•  The group started in 1975 during times of oil crisesand economic troubles. Since then, the G7 has expanded its focus to cover a wider range of global issues, including: 
  • International economic policy
  • Security
  • Technological growth
  • Climate change
•  In 2024, Italy hosted the G7 summit. The main topics discussed included: 
  • The protection of the rules-based international system
  • Engagement with Africa
  • Finding solutions for the Russia-Ukraine and Israel-Gaza conflicts
  • The relationship with developing nations and emerging economies

Historical Context and Evolution of G7

The G7, originally known as the Group of Six (G6), was established in 1975, comprising the United States, France, Italy, Japan, the United Kingdom, and West Germany.

Purpose

• The G6 aimed to tackle pressing economic challenges such as inflation and the global recession triggered by the OPEC oil embargo in 1973-74.

Expansion

• Canada joined the group in 1976, transforming it into the G7.
• Russia became a member in 1997, briefly expanding the group to the G8.
• However, Russia was suspended in 2014 due to its annexation of Crimea.

Since 1981, the European Union has participated in G7 meetings, represented by the Presidents of the European Council and the European Commission. While the EU is involved in the group's activities, it does not hold the rotating presidency.

Functioning of the G7

• Membership Criteria: There are no formal membership criteria for the G7, but the member nations are typically wealthy democracies.
• Structure: The G7 lacks a formal institutional structure. It does not have a charter or a permanent secretariat.
• Presidency: The presidency of the G7 rotates annually among the member countries. The president is responsible for setting the agenda for the summit and organizing the meetings.
• Sherpas
  • Sherpas are ministers or envoys who prepare the groundwork for the summit through policy discussions and meetings.
  • They oversee the negotiations and draft the final communiqués for the Group.
  • The process involves contributions from various tracks, including Political Directors, Foreign Affairs Sous-Sherpa (FASS), and Finance Deputies.

Key Achievements of G7 Summit

• Economic and Political Agenda: The G7's agenda has evolved from focusing mainly on economic issues to addressing a wide range of global challenges, including trade, security, climate change, and technological advancements like artificial intelligence.
• Global Crisis Response: The G7 has played a crucial role in coordinating actions for global economic recoveries, health emergencies such as the COVID-19 pandemic, and geopolitical conflicts, including the Russian invasion of Ukraine.
• Innovations in Governance: Initiatives like the “Hiroshima AI Process” demonstrate the G7’s commitment to tackling emerging technological challenges.

Limitations and Challenges of G7

• While the G7 has been important for global cooperation on various issues, its relevance has been questioned lately due to its struggles in managing modern crises.
• Limited representation: The G7 is criticized for its narrow representation, being seen as pro-capitalist and elitist, with a clear bias towards Western perspectives.
• Currently, G7 member countries account for less than 30% of the world’s GDP, down from nearly 50% in the 1970s when it was established.
• The G7's Western-focused approach is being challenged by rising powers like BRICS, which are seeking more influence and representation in global governance.
• There is an increasing call for the G7 to include emerging economies such as India, China, and Brazil.
• Economic uncertainty: The economies of the G7 are facing several challenges including slow growth, increasing inequality, and aging populations.
• For instance, Italy has dealt with high public debt and slow growth for many years, while Japan struggles with issues related to its aging population.
• Climate change: There are major differences in how G7 countries approach and prioritize climate issues, making it hard to reach a consensus on effective actions.
• Global health: The COVID-19 pandemic has shown the importance of international teamwork in tackling health crises.
• However, the G7 has been criticized for its slow response and unequal vaccine distribution, raising doubts about its capability to handle future health emergencies.
• Geopolitical tensions: The G7 countries have different priorities and interests in various global regions.
• For example, the USA focuses on containing China's rise as a global power, while European nations are more concerned with regional issues like the conflict in Ukraine.
• Rise of China: China’s emergence as a significant economic and political force has changed the global power dynamics.
• Concerns have arisen among G7 nations regarding China’s Belt and Road Initiative (BRI), which can lead to a debt trap for participating countries.
• In response, a sustainable infrastructure investment plan called the Partnership for Global Infrastructure and Investment (PGI) was introduced at the G7 summit in 2022.
• Internal disagreements: The G7's unity is sometimes tested by differing national interests, especially with changing U.S. administrations, which can influence the group’s stance on trade, climate policies, and diplomatic relations.
• De-globalisation: The trend towards de-globalisation, which involves moving away from international economic cooperation and adopting more nationalist policies, challenges the G7’s goals of fostering free trade and collaborative efforts on global issues.

Key Agenda at G7 Summit 2024

• The main focus of the G-7 summit in Puglia is to connect with the Global South and emphasize international law, economic and security issues, migration challenges, and cooperation with Africa.
• Regarding the Ukraine conflict, G-7 nations are increasing aid for Ukraine by using €300 billion from frozen Russian assets. This includes a proposal for a $50 billion loan to help with the financial and humanitarian effects of the ongoing conflict.
• The Israel-Gaza conflict is also a topic at the summit. A plan put forth by the US Presidentsuggests:
  • an immediate ceasefire,
  • more humanitarian aid, and
  • a full peace agreement to ensure safety for both Israelis and Palestinians.
• For economic security, the G-7 aims to protect economic and strategic interests in the Indo-Pacific region. This includes addressing trade security, building alliances, and countering the influence of China.
• Discussions will cover the ethical use of AI and transitioning to cleaner energy sources. The summit seeks to establish standards for AI governance while promoting energy initiatives that support sustainable development in the Africa-Mediterranean corridor.
• The G-7 prioritizes effective migration management, focusing on:
  • coordinated policies,
  • humanitarian assistance, and
  • secure borders to manage global migration challenges.
• G-7 countries are committed to enhancing support for African development, in line with the African Union Agenda 2063. Key areas of focus include:
  • food security,
  • infrastructure,
  • trade, and
  • agricultural productivity.
• The Italian Prime Minister is making Africa a priority in her foreign policy through the Mattei plan, which focuses on clean energy investments to support:
  • sustainable development,
  • democratic governance, and
  • regional stability.
• The G-7 is facing challenges in meeting its 2030 emission reduction targets. The expected reduction is between 19-33%, compared to the 40-42% goal.
• The summit will work on strengthening commitments and finding innovative solutions, including plans to phase out coal power by the mid-2030s to speed up the shift to cleaner energy.
• The G-7 also plans to engage in dialogue with key emerging economiesand developing nations to tackle global challenges related to:
  • economic development,
  • sustainable growth,
  • climate change, and
  • security.
• Leaders from twelve non-member countries, including India, have been invited to the 2024 summit.

Significance of G7 for India

• India has participated as a guest at G7 meetings, showing its growing importance in the world and its role as a key player in both the economy and global politics.
• Economic importance: Being part of the G7 helps India access the latest technologies and enter new markets. As the 5th largest economy with fast and steady growth, India stands out especially when compared to Western nations that are facing slow growth.
• India can take advantage of the G7's advancements in technology, especially in areas like renewable energy, artificial intelligence, and digital technology.
• Strategic partnerships: India is becoming an important ally for Western countries in the G7, especially in efforts to counter China's influence in the Indo-Pacific.
• India has formed strategic partnerships with several G7 nations, including the U.S., U.K., France, Germany, and Japan, while also strengthening its connections with Italy to support its interests in stable markets, sustainable development, and fair governance.
• Development aid: G7 countries are major contributors of development aid, and their policies can influence India's development plans.
• For instance, the G7's backing for global education programs has had a positive impact on India.
• Balancing global ties: India skillfully manages its traditional relationship with Russia while also building stronger bonds with Western countries.
• This balancing is essential for maintaining stability and achieving strategic goals amid changing global politics.
• Navigating Indo-Pacific relations: G7 meetings provide India an opportunity to better connect with major powers in the Indo-Pacific region, enabling it to influence regional affairs and maintain a balance between the U.S., China, and other regional players.
• Climate change: The G7 countries play a crucial role in shaping global climate policy. Closer collaboration with them can help India lower its emissions and adapt to the challenges posed by climate change.
• For example, India participated in the G7 summit in 2019 as a "Goodwill Partner", where the Prime Minister took part in discussions on Climate, Biodiversity, and Oceans as well as Digital Transformation.
• Following the G20 Summit, India aims to take the lead for the global south, particularly in discussions about climate change.