The Hindu Editorial Analysis- 23rd November 2024 | Current Affairs & Hindu Analysis: Daily, Weekly & Monthly - UPSC PDF Download

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Tackling global hunger and poverty and promoting climate justice were declared goals for the recent G-20 summit in Rio de Janeiro. Brazilian President Lula Da Silva called poverty a “scourge that shames humanity”, asking the gathered nations to implement policies such as taxing the ‘super-rich’, using a 2% wealth tax on the world’s wealthiest to generate more than $200 billion in revenue. But the G-20 declaration fell short of that. Prime Minister Narendra Modi too underlined that the problems of the world are felt most acutely by the ‘Global South’, and, therefore, that the reins of global administration must belong to those that represent the larger majority in the world

History of G 20

• The G20 was created after the Asian financial crisis that occurred in 1997-1998.
• This crisis highlighted the need for better cooperation among major economies to tackle global economic issues.
• Initially, the G20 was just a meeting for finance ministers and central bank governors.
• In 2008, in response to the global financial crisis, it was raised to a summit for world leaders.
• Since that time, the G20 has been important in shaping the international economic agenda.
• It has also played a key role in coordinating global economic policies.

Member Countries of G 20

Structure and Functioning of G20

• The G20 functions through yearly meetings of Finance Ministers and Central Bank Governors, along with an annual summit for leaders.
• It has two main paths: the Finance Track and the Sherpa Track, both essential for shaping ideas and priorities during the presidency of the host country.
• The Sherpa Track includes representatives who focus on various social and economic topics and manage negotiations throughout the year.
• The Finance Track, led by Finance Ministers and Central Bank Governors, meets around four times a year to discuss matters related to fiscal and monetary policy.
• The G20 operates without a formal charter or secretariat, but it is supported by the Troika, which consists of the previous, current, and future presidencies.
• It is important to note that decisions made by the G20 are non-binding and cannot be enforced by law, meaning member countries do not have to follow them.
• Members of the G20 work closely with international organizations such as the IMF, World Bank, and WTO.

G20 Summit 2023

• In New Delhi, India, the 18th G20 summit took place, where leaders from major global economies gathered for a two-day meeting on September 9-10, 2023. 
• The summit was organized by the Indian G20 presidency during a time of increasing political and economic rivalry, with both leading and emerging economies creating new partnerships around the world. 
• The themes chosen by the Indian presidency highlight the importance of the summit, especially with the decision to grant permanent member status to the African Union (AU) by the G20 leaders. 
• This decision shows the growing importance that G20 members are placing on countries from the 'Global South'. 

Outcome of the G20 Summit 2023

• At the end of the summit in New Delhi, all G20 members, represented by Charles Michel, the President of the European Council, and Ursula von der Leyen, the President of the European Commission, released a detailed declaration. 
• In response to the six main priorities set by the Indian presidency, which include green development, inclusive growth, and progress on the UN Sustainable Development Goals (SDGs), the leaders promised to take action and establish goals. 
• This promise was documented in a lengthy declaration consisting of 83 paragraphs titled 'One Earth · One Family · One Future.'
• The declaration also covered requests from the EU regarding reforms to multilateral development banks and actions to tackle climate change. 
• One of the goals mentioned is to triple renewable energy capacity by 2030. 

Some of the key commitments include:

• Accelerating the implementation of the 2030 Agenda for Sustainable Development.
• Agreement to triple global renewable energy capacity by 2030.
• Pursuing low-GHG/low-carbon emissions and climate-resilient development.
• Increasing funding for Paris Agreement goals.
• Enhancing digital services and promoting inclusive growth.
• Closing gender gaps and empowering women in the economy.
• Advocating for multilateral system reform and more effective multilateral development banks.
• Supporting a rules-based, fair, and transparent multilateral trading system with the WTO at its core.

Geopolitical Significance of G20 2023

• The absence of China's President Xi Jinping, who leads the second-largest economy, attracted a lot of media attention.
• There was speculation about why Xi did not attend the summit, with possible reasons being: 
  • Tensions between India and China
  • Challenges within China
  • China's dissatisfaction with the US-led G20 and a desire for a new global governance system
• In contrast to last year's statement, the G20 New Delhi Leaders' Declaration did not specifically condemn Russia.
• The declaration urged all countries to respect the territorial integrity and sovereignty of nations.
• Vladimir Putin, the President of Russia, was not present and was represented by Foreign Minister Sergey Lavrov, who viewed the summit as a success.
• Ukraine expressed criticism towards the G20's final statement but showed gratitude to its allies for their support.
• Key emerging nations from the Global South, such as India, Brazil, Indonesia, and South Africa, played an important role in reaching an agreement that allowed all G20 members to endorse the final declaration.
• The decision to give permanent membership status to the African Union, which represents 55 African countries, highlights the growing power of emerging economies from the Global South.

Summits of G 20

• First G 20 Summit: The initial G 20 Leaders' Summit occurred in Washington, D.C., in November 2008. It aimed to tackle the global financial crisis and improve the international financial system through new regulatory rules. 
• Second G 20 Summit: The second summit was in London in April 2009. Leaders committed to boosting global growth, enhancing financial systems, and providing more support to international financial organizations. 
• Third G 20 Summit: The third summit took place in Pittsburgh, USA, in September 2009. Leaders agreed to collaborate for a sustainable economic recovery and recognized the G 20 as the main platform for international economic cooperation. 
• Fourth G 20 Summit: This summit was held in Toronto, Canada, in June 2010. Leaders focused on reducing budget deficits and reforming the financial sector, while also stressing the need for sustainable development and alleviating poverty. 
• Fifth G 20 Summit: The fifth summit occurred in Seoul, South Korea, in November 2010. Leaders adopted the Seoul Development Consensus for Shared Growth, which emphasized development, trade, and investment to aid global economic recovery and sustainable growth. 
• Sixth G 20 Summit: This summit took place in Cannes, France, in November 2011. Leaders dealt with the Eurozone crisis, undertook financial regulatory reforms, and endorsed a plan to promote growth and job creation. 
• Seventh G 20 Summit: The seventh summit was held in Los Cabos, Mexico, in June 2012. Leaders concentrated on improving global economic stability, promoting sustainable development, and reinforcing the international financial framework. 

India and G 20

• India is an important player in the G20 group of nations.
• As a growing economy, India has a significant voice in global discussions.
• India has always pushed for a global economic system that is fair and inclusive.
• It highlights the need to tackle key issues such as:
  • Development
  • Climate change
  • Financial stability
• India's involvement in the G20 has influenced global economic policies.
• These policies take into account the needs of developing countries.

Why is the G20 Presidency so important for India?

• Global leadership: India’s role as the G20 President gives it a special chance to demonstrate its leadership skills worldwide. This position allows India to influence and guide the global economic and policy discussions, making it a significant player in international affairs.
• Economic development: Being one of the fastest-growing major economies, India has a crucial interest in global economic health. Through the G20 Presidency, India can advocate for its economic goals, including trade, investment, and development strategies, aligning them with worldwide objectives.
• Promoting inclusive growth: India can leverage the G20 platform to push for policies that ensure fair growth and reduce inequality, both within India and among G20 countries. This focus is vital as India faces major challenges related to poverty, income disparity, and social progress.
• Climate change and sustainable development: As a leading emitter of greenhouse gases, India plays a significant role in tackling climate change. The G20 Presidency allows India to highlight its priorities regarding climate action and sustainable development, such as promoting renewable energy, and to encourage cooperative efforts among member nations.
• Strengthening multilateralism: Holding the G20 Presidency enables India to enhance cooperation and communication among member countries, reinforcing the role of multilateralism in solving global issues. This can help India build stronger partnerships and collaborative initiatives with other nations.
• Addressing global challenges: The G20 forum provides India with a platform to engage in discussions and shape policies on critical global issues like financial stability, employment, healthcare, and education. By participating actively, India can ensure that its views are considered and its interests represented.

India's G 20 Priorities

• Infrastructure development and investment
• Financial inclusion and digitalization
• Climate change and sustainable development
• Global health and pandemic preparedness
• Reform of international financial institutions
• Inclusive, Equitable and Sustainable Growth,
• LiFE (Lifestyle For Environment),
• Women’s Empowerment,
• Digital infrastructure

Conclusion

• The G20 is an important global forum that focuses on economic and financial matters, aiming to promote financial stability and sustainable economic growth.
• It was created in 1999 and includes 19 countries along with the European Union.
• India, as a key emerging economy, has a vital role in the G20.
• Currently, India holds the position of G20 president, giving it a chance to demonstrate its leadership on the global stage.
• India can highlight its priorities such as:
  • Infrastructure development
  • Financial inclusion
  • Climate change
  • Global health
• The presidency enables India to influence global policy conversations and push forward its economic and development goals.
• Additionally, this role helps India to improve its international reputation and influence.